## Orde r 2011-6-1 4 Served : Jun e 10,201 1 UNITE D STATE S O FAMERIC A DEPARTMEN T O FTRANSPORTATIO N OFFIC EO FTH ESECRETAR Y WASHINGTON , D.C

.

Issue dby th e Departmen t o f Transportatio n o nth e 10'% f

June , 201 1

INTR A ALASK A BUS H MAI LRATE S Docke t OST-2003-1469 4

SHO WCAUS EORDE RPROPOSIN GUPDATE D MAI LRATE S SUMMAR Y B y this order , th e Departmen t direct s al l intereste dpartie s t o show-caus e why th e propose d Intra-Alask abus hsen^ic e mai l rate s se t fort hbelo w shoul dno t

b e mad e final. Th e rate s currentl y i neffec t

wer e tentativel y se t

b y Orde r 2009-11-2 , mad e final b y Orde r 2009-11-19 , an dupdate dfo

r change s inquarterl y fue

l price s mos t

recentl y b

y Orde r 2010-9-24

. Thi s orde r tentativel y modifie s th e findings o f sho w caus e Orde r

2010-12-28

. I

nrespons e t o thos e objections , w e propos e makin g significan t change s t o th e structur e o f th e Part 13 5 rate , an ds o w e ar e issuin g thi s orde r

onashow-caus e basi s a s well

. Th e rate s includ e quarterl y fuel cost s fo r th e Q EJun e 30 , 2010 , bu t w e anticipat e updatin g fuel cost s withmor e recen t dat aafte r th e final orde r

i s issued

. RAT E COMPARISON S '
Propose d Current , Orde r

2010-9-2 4 Percentag e Increas e Par t 121 , pe r RTM $6.005 2 $5.899 3 1.80 Part

135 , pe r RTM SII.I215 2 $13.255 9 <16.10 > Seaplane ,

pe r RT M $32.894 4 $33.418 5 <1.57 > Termina l Pe r

To nEnplane d $716.1 6 $745.0 1 <3.87 >

' Thes e rate s reflec t

th e quarterl y fue

l update s i

nOrde r 2010-9-24 , an dnonftjel linehau l an dterminal cost s base do nYE6-30-1 0 costs
. Whenfue l dat afo r more recen t

quarter s becom e available , w e wil l continu e our practic e o f

issuin g quarterl y fue

l updates

. ^ Th e actual rat e pe r

RT M wil l var

y b y distanc e becaus e w e ar e proposin g ataper
. Th e valu e o f $11.121 5 i s fo r compariso npurpose s only an dreflect s th e underlyin g rat e before w e appl y th e taper
. Se e Attachmen t B , Appendi x A o f

thi s orde r

fo r th e Par t 13 5 calculation

. A s show nthere , th e tape r rat e correspondin g t o $11.121 5 pe r

mai l to nmil e i s $371.4 5 pe r mai l to nenplane dplu s $7.462 2 pe r mai l to nmile

.

# -2

-

BACKGROUN D Orde r 2010-12-2 8 propose dannual update s for th e Part 121 , Par t 135 , an dSeaplan e mai l rat e classes , a s wel l a s th e bus hterminal , base do ndat afor th e year ende dJun e 30 , 2010 , th e mos t recen t dat athe navailable

. Th e Departmen t directe dpartie s t o sho w caus e b y January 1 2 why th e orde r shoul dno t

b e mad e final. Althoug hOrde r

2010-12-2 8 di dno t

chang e it s recen t

historica l approac ht o calculatin g th e variou s clas s rate s fromth e precedin g year , th e underlyin g Par t 13 5 operation s change d significantl y fromprior

period s becaus e Peninsul aAirways , Inc. , (PenAir ) beganoperatin g anumbe r o f it s Metr o aircraf

t unde r Par t 135 ; previousl y al l o f

thos e operation s ha dbee n conducte dunde r

Par t 121

. Reflectin g thos e ne w operation s by PenAir , Orde r 2010-12-2 8 tentativel y assigne dthre e quarter s o f thos e Metr o operation s t o th e Part 13 5 cos t pool , thereb y increasin g PenAir' s share o f Par t 13 5 mai l volume s from7 t o 2 7 percent. ^ Th e increase dvolum e o f

PeaAir* s ne w Par

t 13 5 operation s couple dwithth e muc hlowe r cost s o f thos e operation s produce dth e significan t 1 0 percen t

dro p i ncost s an drate s show nin Order2010-12-2 8 for

th e Part ]35c]ass. 4
After th e orde r issue dan dth e magnitud e o f th e effec t o nth e rate s o f

PenAir' s decisio nt o operat e it s Metro s unde r

Part 13 5 becam e known , w e receive datimely-file dreques t from th e Consolidate dCarrier s (CC ) t o exten dth e deadlin e fo r objection s unti l January 27 , an d b y notic e date dJanuary 1 1 w e grante dtha t request
. W e receive dobjection s o nJanuary 2 5 fromRyanAir , Inc. , formerl y Arcti c Transportatio nServices , an do nJanuary 2 7 fromCC ^ a s wel l a s Frontie r

Flyin g Sen'ice , Inc

. (Frontier). ^ W e als o receive dcomment s fromth e Postal Servic e supportin g th e tentativ e conclusion s o f Orde r 2010-12-28

. O nFebruary 4 an d7 , PenAi r

an dth e Posta l Service , respectively , requeste da nadditiona l extensio no f th e commen t perio ds o that

the y coul drebu t

th e argument s o f

th e thre e objectors

. B y notic e date dFebruar

y 11 , w e grante da

nextensio nunti l February 22 , bu t indicate dw e anticipate d grantin g n o future extensions

. O nFebruar y 2 2 w e receive dcomment s fromth e Posta l Service an dfromPenAir

. Ther e hav e bee nsubsequen t lat e filings fromC C an dPenAir , discusse do npage s si x an dseven .

^ PenAi r hadannounce di

t woul db e takin g thi s actio ni nth e previou s year , an dOrde r 2009-11- 2 too k

note o f thi s anticipate ddevelopment

. However , ther e were n o objection s a t th e lime

. " * B y th e same token , thi s reclassificatio ndecrease dth e share o f mail transporte db y PenAir' s Metr o aircraf t fo r th e Par t 12 1 ral e from5 6 percen t t o 2 9 percent
. ^ Th e Consolidate dCarrier s represen t nin e bus hcarriers : Ai r

Excursions , Inc. ; Berin g Air , Inc. ; Bid^ y T aHot

'Aana , Inc. , d/b/aTanan aAir Service ; Flight

Alaska , Inc. , d/b/aYut e Air ; Gran t Aviation , Inc. ; /liamn aAi r Taxi , Inc. ; Redemptio nInc. , d/b/aIslan dAir ; Seaport Airlines , (nc , dV a Wing s o f Alaska ; an dServan t

Air

. " Frontie r i s under commo nownershi p wit

hEr aAlaska , Arcti c Circl e Ai r Service, an dHagelan dAir Service

. B y mos t measures , Hagelan dan dEr aar e comparabl e i nsiz e t o PenAir , whic hitsel f i s on e o f th e larges t

intra

Alask abus hoperators
.

## - 3
-

INITIA LOBJECTIONS , JANUAR Y 2 7 DEADLIN E Rya nAi r Servic e Ryannote s that

whil e th e aircraf

t classe s use dto determin e th e four intra-Alask aclas s rates' ^ ar e clearl y define dunde r th e law , bothPenAi r

an dFrontier , th e tw o bigges t bus h operators , hav e "th e flexibility t o operat e th e sam e aircraf t typ e unde r

eithe r Part 12 1 o r Pa n13 5 becaus e o f

thei r ability t o selec t

aseatin g configuration " for thei r variou s Metro , Saab , Das h8 , an dBeec h190 0 aircraft , whic hcanb e configure dt o eithe r 1 9 o r mor e seats
. "Th e fiexibility to selec t

a naircraf t classificatio ni

nvariou s authorize doperation s furthe r confuse s th e rate makin g methodology. " Ryanassert s that th e majorit

y o f PenAir' s Metr o mai l RTM s use dinOrde r 2010-12-2 8 t o comput e th e Par t 13 5 rate wer e generate dbetwee n Anchorag e an dDutc hHarbor , acity-pai r marke t havin g astag e lengtho f

almos t 80 0 miles , i ncontras t

t o th e averag e Part

13 5 stag e lengt

ho f onl y 7 2 miles

. Ryanmaintain s that th e Anchorag e t o Dutc hHarbo r marke t shoul db e exclude dfromth e calculatio no f th e mai l rat e becaus e it

"doe s no t

refiec t th e real cos t

o f Par t 13 5 operation s an dnegativel y impacts " th e Part 13 5 rate fo

r carrier s operatin g unde r

ver y different

operatin g conditions. " Ryan further urge s that

any Part 13 5 operatio nwithMetr o III , Beec h1900 , o r Saab 34 0 aircraf

t shoul db e exclude dfromth e calculatio no f th e Part 13 5 rate
. Consolidate dCarrier s C C indicate s that

th e rate i nOrde r 2010-12-2 8 i s inconsisten t withth e Rural Servic e Improvemen t

Ac t (RSIA ) an d "withth e Department' s lon g establishe dpractic e o f establishin g clas s rate s relate d t o th e economic s o f

operatio no f

aparticular

clas s o f carrie r o r aircraft

. Mos t particularl y offensiv e i s th e methodolog y o f rat e calculatio nwhic hallow s carrier s t o gai nunfair

competitiv e advantag e by manipulatin g th e operatin g rule s o f flight^ for particular

markets

. I

nthis way , th e basi c economi c structur e o f mai l transportationinbus hAlask ai s undermined , withth e effec t o f threatenin g mai l [an dpassenger ] servic e a t smalle r rural Alaskanvillages. " (Pag e 2 ) C C argue s that

whethe r "se t by regulationo r

th e free market , al l evidenc e show s ther e i s asignifican t differenc e inoperatin g cost s dependin g o nth e siz e o f aircraf t used. " [Pag e 6] , "Ther e i s n o logical o r

rate-makin g basi s t o includ e aircraf t withthre e time s th e payload , si x time s th e averag e hop , an dtwic e th e bloc k spee do f th e res t o f th e aircraf t inth e class

. Regardles s o f operatin g rules , aircraf

t certificate dfor

1 9 o r more passenger s hav e significantl y different operatin g economic s an dmus t no t b e

' Th e fou r classes consis

t o f mainlin e rat e fo r aircraf t havin g mor e tha n7,50 0 poimd s payload ; th

e Par t 121 rat e fo r aircraf t operatin g unde r Par t 121 an dcertificate dfo r 19 o r mor e seat s bu t wit hles s tha n7,50 0 pound s o f payload ; th e Seaplan e rat e fo r aircraf t wit hfloa t o r amphibiou s capability ; an

dPar t 135 , fo r al l othe r aircraf t operatin g unde r eithe r Par t 13 5 o r Par t 121 , bu t wit haircraf t certificate dfo r fewe r tha n 1 9 seats
. ° C C is referrin

g t o th e flexibilit y afforde dt o carrier s t o ad do r tak e ou t seat s thereb y determinin

g whethe r a n aircraf t operates unde

r Par t 121 o r Par t 135

.

## - 4
-

include dinth e Par

t 13 5 clas s rate. " (Pag e 16 ) "Th e averag e Part 13 5 cos t per to n mil e excludin g 19-sea

t aircraf t i s $12.233 8 pe r

to nmil e an di s 6 0 percen t highe r tha nth e Metroliner' s linehau l cos t [for PenAir]

. Th e onl y methodolog y o f computin g bus hmai l rate s tha t i s consisten t

wit hth e inten t

an dlegislativ e histoo ' o f th e RSIA an dlon g establishe dclas s rate structur e i s t o assig nal l aircraf t certificate dwithamaximumo f 1 9 o r mor e passenge r

seat s t o th e Par

t 12 1 rat e poo l [regardles s o f

whic hPar

t the y operat e under] , an dal l aircraf t certificate d wit hamaximu mo f

9 passenge r

seat s [or less ] t o th e Par

t 13 5 rate. " (Pag e 18)

. "Th e rat e structur e propose dby th e Consolidate dCarrier s raise s th e relativel y insignifican t

issu e o f addin g 19-sea

t aircraf t operate dby Part

135-onl y operator s inbus hservic e t o th e Par t 12 1 rate pool. " (Pag e 19)

. [Th e rat e i n Order 2010-12-28 ] "directl y transfer s compensationfor carrier s servin g smal l high-cos t village s wit

hth e smalles t

aircraf t t o carrier s operatin g th e lowest-cos t aircraf t i nth e highes t

volum e markets. " (Pag e 20)

. Frontie r Flyin g Service ' Frontie r note s tha t th e ver y lon g hau l Anchorage-Dutc hHarbo r marke t i s on e o f PenAir' s bigges t market s an dconsfitute s alarg e portio no f PenAir' s Part

13 5 operations

. Th e Postal Servic e pay s PenAi r

th e Par t 12 1 rat e o nthat

route , no t

th e muc hhighe r

Par t 13 5 rate , becaus e there happen s t o b e alimite damoun t o f servic e withPart

12 1 aircraf

t inthat market.' ^ T o adjus t fo r this result , Frontie r

argue s that

th e Departmen t

shoul dmodif

y it s historica l costin g methodolog y an dinclud e onl y thos e segment s i nth e Par t 13 5 cos t poo l wher e th e Postal Service , infact , pay s th e highe r Part 13 5 rate
. Frontie r

note s that

thi s i s consisten t wit hth e Department' s treatmen t o f mainlin e mai l routes
. Unde r that procedure , whe n calculatin g any o f

th e thre e bus hmai l rates , th e Departmen t first exclude s th e traffi c an d cost s o f any segmen t

wher e seve no r

mor e mainlin e flights operate dinth e las t quarte r o f th e annual perio da

t issue

. (Se e Appendi x Eo f Orde r 2010-12-28)

. Frontier' s secon dchoic e woul db e for th e Departmen t

t o reintroduc e aTaper

for th e Part 13 5 bus hrate
. "Whil e Frontie r

ha s consistentl y argue dthat th e Part 12 1 rate s hav e no t

bee n compensatory , PenAi r

ha s clearl y benefite dfromth e blendin g o f [higher ] Frontie r cost s an d[lower ] PenAi r

cost s [due , a

t leas t inpart , t o PenAir' s longe r averag e stag e length]

. I

na n[earlier ] attemp t

t o addres s th e disparity betwee nFrontie r an d

" Th e carrier' s filin

g wa s liste da s bein g fro mEr aAlaska , bu t i n th e filing alway

s refer s t o Frontie r Flyin g Service/Frontier

. ' " Unde r th e Department' s equalizatio

npolicy, i nmarket s serve db y mor e tha non e clas s o f carrier , th e Posta l Servic e pay s th e lowes t applicabl e mai l rate
. Carrier

s unwillin g t o equaliz e dow nt o th e lowe r rat e woul dge t n o mai l i ntha t market

.

## - 6
-

PenAi r stag e lengths , th e Departmen t create da"Taper". " W e woul dreluctantl y support th e reintroductio no f

aTaper fo r th e Bus h13 5 rate i f

th e Departmen t elect s t o accep t

th e PenAi r

reclassificatio n[o f

it s Metro s fromPart

12 1 t o Par t 13 5 withou t

any adjustment]. "
Posta l Service , Januar y 2 7 Th e Posta l Servic e indicate dit doe s no t support RyanAir' s position , filedo nJanuary 25 , o f excludin g specifi c equipmen t fromth e rat e clas s that

it legall y operate s within

. "Al l equipmen t

operatin g unde r

Part 12 1 o r Par t 13 5 bus hoperation s shouldb e include dinth e appropriat e rat e clas s establishe dinth e Department' s ratemakin g methodology. " REPLIES , FEBRUAR Y 2 2 PenAi r PenAi r argue s i nit s repl y tha

t ther e "i s simpl y n o basi s i nlaw o r polic y for

carvin g th e operation s [o f

PenAir' s long-hau l Metr o aircraft ] ou t o f th e calculatio no f

th e Part 13 5 rate simpl y becaus e o f

thei r stag e lengt

ho r [aircraf t size ] b y artificiall y labelin g the ma s ineligibl e route s a s RyanAi r an dFrontie r

urge. " (Pag e 4)

. PenAi r note s that

Hageland , Warbelow , an dBerin g curtentl y operat e Beec h190 0 aircraf t that ar e similar

t o th e PenAi r Metr o aircraf

t a t issu e here

. Thos e B-190 0 aircraf t hav e lon g bee napart

o f th e calculatio n o f th e Par t 13 5 rate , s o it

woul db e inconsisten t

fo r th e Departmen t

t o includ e thos e aircraf

t bu t t o exclud e PenAir' s Metros

. Posta l Servic e I nsupport o f Orde r 2010-12-28 , th e Posta l Servic e adde dthes e further comment s rebuttin g th e January 2 7 submissio nb y th e Consolidate dCarriers

. 'Th e Rural Servic e Improvemen t Ac t (RSIA ) state s that

th e Departmen t

shoul d establis hrate s fo

r bothPar t 12 1 operation s an dPar

t 13 5 operafions

. Th e tw o objective s o f

th e RSI A ar e t o 1 ) maximiz e incentives for bus hcarrier s t o convert t o Part J2 I operation s t o benefi t passenger s an dshippers , an d2 ) minimiz e cost s fo r th e Posta l Service

. Th e fundamental principl e that asingl e clas s rate fo

r Part 12 1 operation s an dasingl e clas s rate fo r Par t 13 5 operation s i s th e optimu m mean s fo r achievin g bot

ho f thes e objective s i s wel l established

. Onl y b y usin g a singl e clas s rate fo

r equipmen t

that fall s withi nthat

clas s wil l carrier s b e incentivize dt o contro l cost s an dmake stride s toward s efficiency

. A s th e Consolidate dCarrier s mentione di nit s filing, th e purpos e o f th e clas s rat e structur e i s t o rewar dthos e carrier s withi naclas s that ar e efficient

b y providin g a large r profi t margi nan dt o motivat e carrier s that ar e les s efficient

t o becom e mor e efficient

. Therefore , th e Postal Servic e reiterates that it object s t o th e notio no f

excludin g specifi c equipmen t

fro mth e rat e clas s that

i t legall y operate s within

. Al l

' ' Th e Departmen

t introduce damileag e tape r int o th e Par t 121 rat e fo r severa l years , bu t Orde r 2006-3-5 eliminate dtha t tape r becaus e PenAi r an dth e Posta l Servic e oppose dit , an dn o part y directl y affecte db y th e tape r supporte dit

.

## - 6
-

equipmen t

operafin g unde r

Part 12 1 o r Par t 13 5 bus hoperation s shouldb e include dinth e appropriat e rat e clas s establishe dinth e Department' s ratemakin g methodology

. Th e Department' s methodolog y wa s pu t inplac e withth e acceptanc e o f

th e industry an dth e Postal Servic e an dther e i s n o reasonabl e basi s o nwhic ht o chang e th e methodolog y at thi s time. " LATE-FILE D RESPONSE S We receive dcomment s afte r th e February 2 2 deadlin e fromth e CC , PenAir , an dth e Postal Service.' 2
O nMarc h1 C C characterize dPenAir' s action s a s bein g merel y a"ploy " t o tak e advantag e o f carrier s servin g smaller , mor e expensiv e markets

. O nMarc h2 , th e Posta l Service note d that i t wishe dt o hav e further

opportunity t o commen t i f w e accepte dCC' s motio nt o file a n unauthorize ddocument

. O nMarc h1 0 PenAi r note dthat

it wa s proposin g t o mak e n o significan t

chang e t o th e structur e o f mai l rates , bu t

rathe r astraightforwar dupdate o f th e rates
. O nMarc h14 , C C reiterate dit s positio nthat DO T hadth e authority t o includ e all o f PenAir' s Metr o cost s i

nth e calculatio no f

th e Par t 12 1 rate , eve ni f

PenAi r operate dthos e aircraf t unde r Part 135

. DISCUSSIO N C C urge s th e Departmen t t o plac e al l aircraf

t tha t canb e configure dwithu p t o 1 9 seat s i n th e Part 12 1 cos t pool , regardles s o f

whethe r thos e aircraf

t ar e operate dunde r

Part 12 1 or Part 135

. Thi s woul dmak e bot hth e Par t 12 1 rat e poo l an dth e Part 13 5 rat e poo l mor e internall y consisten t

interm s o f

aircraf t type s constitutin g th e pool

. Part 12 1 woul dthe n consis t o f 19-sea t an dlarge r

aircraft , an dPart

13 5 woul dlargel y consis t o f 9-sea t o r smalle r aircraft

. However , this positio ni s no t consisten t

withou r readin g o f

th e law , a s discusse di

nOrde r 2003-10-10 , pag e 12

. "3 9 U.S.C

. 5402(h)(2)(B) , a s amende dby RSIA , establishe s minimu mstandard s for thre e tende r

an dcos t pools , withon e poo l for

"aircraf t typ e certificate dt o carry a t leas t 1 9 passengers ; [another ] fo r operation s unde r

part 135 , [requirin g aircraf t typ e certificate dt o carry a t leas t 5 passengers ; an d[thirdly] , for operation s unde r Part 13 5 [requiring ] aircraf

t typ e certificate dto carry a t leas t 3 passengers " fo r amphibiou s aircraft

. We rea dthis provisio na s establishin g minimu maircraf t standard s fo

r participatio nineac hpool

. I nothe r words , a naircraf t mus t mee t al l o f th e criteri ao f

aclas s t o b e include dinthat class : th e 19-sea

t certificate dseat minimu mwithpassenge r aircraf t i s th e standar dfor

th e Par t 12 1 class

. If

a n aircraf t meet s al l o f

thos e standard s excep t

one , the ni

t i s place dinth e Par

t 13 5 class.''' 3

'' ^ C C an d PenAi rfile d motion s t o accep t late-file d documents

. W e wil l gran t thos e motion s t o hav e a s ful l a recor d a s possible , an d becaus e I t doe s no t dela you rprocessin g o f th e case
. ' 3 I norde r t o b e include di

nth e Par t 12 1 cos t pool , aircraf

l mus t b e abl e t o b e configure dt o a t leas t 1 9 seats , an d the y mus t b e operate dunde r

Part 121

. I nthi s instance , althoug hPenAir' s Metro s coul db e configure dt o 1 9 seats , i t ha s chose nt o tak e ou t

asufficient

number o f seat s t o operat e themunde r

Par t 135

.

# - 7
-

Whil e RSIA di dno t

tak e away ou r

authority t o establis hne w rates , a s discusse dwhe nw e create daspecial Par

t 12 1 rate fo

r Shor t Take-of f an dLandin g (STOL ) capabl e aircraft , th e law i s clear : mergin g th e cost s an dtraffi c o f th e Beec h1900 s o f

Hageland , Warbelow , Bering , an dan y othe r

carrier/aircraf

t suc ha s PenAir' s Metro' s operatin g unde r Part 13 5 int o th e 19-sea

t Part 12 1 rat e i s no t

permitted.' ^ Th e proposal s o f

Ryanan dFrontie r

woul dhav e u s exclud e operation s fromth e calculatio n o f th e Part 13 5 bus hrat e that

ar e currentl y included

. Ryanwoul dhav e u s exclud e th e cost s o f al l 19-sea

t aircraf t fromth e Part

13 5 rate ; ^

5 Frontie r woul dexclud e fromth e Par t 13 5 rat e all o f th e cost s an dtraffi c o f

any segmen t

wher e th e Posta l Service pay s th e Par t 12 1 rate , regardles s o f

th e typ e o r

clas s o f aircraf t operatin g o nthat

segment
. Thi s informatio n i s no t currentl y availabl e an dth e Consolidate dCartier s indicat e it woul dcomplicat e ratemakin g an dreportin g b y carriers

. A Par

t 13 5 rat e constructe dunde r eithe r Ryan' s o r Frontier' s proposa l woul db e highe r thanthat propose dby Orde r

2010-12-2 8 becaus e it woul dexclud e th e cost s o f PenAir' s ver

y low-cos t

Metr o aircraft

. Regardin g Frontier' s argumen t that ther e i s preceden t

for excludin g th e cost s o f

aircraf t operatin g o nroute s wher e th e Postal Servic e pay s th e Part 12 1 rate , th e Departmen t doe s indee dexclud e fromth e calculatio no f th e bus hrat e th e traffi c an dcost s o f thos e segment s where mainlin e aircraf

t als o operate , becaus e that resul t i s dictate db

y statute
. However , DO T i s no t

require dt o exclud e fromth e Par t 13 5 rat e th e cost s an dtraffi c o f segment s operate dunde r

Par t 13 5 wher e th e Posta l Servic e pay s th e Part 12 1 rat e (becaus e o f equalization. ) C C argues , an dw e agree , that it woul db e very burdensom e t o collec t dat a sufficient t o determin e whic ho f

thousand s o f

segment s wer e pai dth e Part 12 1 o r Part 13 5 rate
. DECISIO N I nbrief , CC' s proposa l i s no t

aviabl e optio nbecaus e it i s contrary t o law

. Frontier' s proposa l woul drequir e additiona l reporting , becaus e th e Departmen t doe s no t hav e informatio na s t o whic hrate s th e Postal Servic e pay s o nany particular segment
. A s C C indicates , collectin g suc hdat aan dmakin g this adjustmen t woul db e ver

y burdensome

. Ryan' s proposa l i s no t

supporte dby Frontier , presumabl y becaus e it woul dexclud e Frontier' s Beec h1900 s fromth e calculatio no f th e rate
. Bothhav e th e fVirthe r disadvantag e that th e Posta l Servic e oppose s them

. However , CC , Frontier , an dRyanar e correc t t o not e that

ther e ar e problem s wit

hmergin g PenAir' s Metro s into aclas s o f carrier s withdistinctl y different operatin g characteristics

. C C indicate s th e problem s withmergin g PenAir' s dat awiththos e o f othe r Par t 13 5 operator s ar e payload , speed , an dth e averag e stag e lengtho f thos e operations , bu t

it mainl y

'' + Orde r 2003-10-1 0 addresse

dth e difficult y o f th e Posta l Servic e an dothe r carrier s trackin g th e operation s o f acarrie r tha t operate d19-sea t aircraft , som e o f whic hoperate dunde r Par t 121 an dsom e o f whic hoperate d unde r Par t 135

. This is th

e firs t instanc e o f this happening, an

dw e wil l monito r th e abilit y o f th e parties t o monito r PenAir' s aircraf

t movements, an

dwil l tak e furthe r actio ni f necessar y t o mak e sur e tha t th e appropriat e rates ar e bein g paid

. ' ^ Rya nwoul dexclud e Frontier' s 19-sea

t aircraf t fro mth e Par t 13 5 rate
.

## - 8
-

focuse s o naircraf

t size

. Th e focu s o

naircraf t operatin g siz e an dpayloa di s misplaced , becaus e averag e stag e lengt happear s t o hav e th e greates t effec t o nuni t costs
. Th e Beec h1900 s o f

Frontier , Bering , an dWarbelow s ar e similar i noperatin g characteristic s bu t no t lengt ho f hau l t o PenAir' s Metro s an dar e currentl y inth e Par t 13 5 rate , bu t

thei r uni t cost s pe r RT M ar e muc hhighe r

thanPenAir' s Metros.' ^ Inaddition , w e agre e with th e Posta l Servic e that

definin g aclas s rat e to o narrowl y coul dunnecessaril y lesse n competitio nwithi nthat

class

. Ou r

goal i nsettin g mai l rate s i s t o hav e th e rate s accuratel y reflec t th e cos t t o th e Posta l Servic e o f

movin g th e mai l consisten t withrelevan t

statutes
. W e believ e th e primary advantag e tha t PenAir' s Par

t 13 5 Metr o operation s hav e ove r othe r operator s i s it s averag e lengtho f haul

. PenAir' s Par

t 13 5 Metr o ha s a515-mil e averag e stag e length

. Th e averag e for othe r Par t 13 5 carrier s i s les s tha n7 0 miles

. Suc hlonge r averag e stag e lengt

hmarket s giv e PenAi r

auni t cos t advantage

. ^

^ Th e proble multimatel y derive s fromth e fac t

that linehau l cost s ar e primaril y incurre do nanhourl y basis , bu t th e Posta l Servic e pay s carrier s o namileag e basis , ignorin g th e highe r cos t o f short hau l operations

. We believ e havin g aPart 13 5 rale withou t

aTaper , whe nther e ar e suc h disparat e averag e stag e length s amon g carriers , work s agains t ou r goal o f settin g mai l rate s that accuratel y reflec t

th e cos t o f movin g th e mail

. Inbrief , addin g aTaper

provide s a close r fit t o actual cost s thanth e prior methodolog y that

ignore dstag e lengths

. Thi s highe r

cos t for short-hau l servic e i s demonstrate dan dmeasure db y th e mileag e regressio nw e hav e ru nfor th e eligibl e expense s o f

th e Part 13 5 carrier s agains t

distance , includin g PenAir' s Metr o aircraft

. Th e constructio no f th e regressio ncorrespond s i n structur e t o th e on e earlie r use di nfo r th e Par t 12 1 clas s rat e i nOrde r

2005-1-18 , Appendi x A-2

. W e sho w th e Par t 13 5 regressio ninAppendi x B o f Attachmen t

B

. Th e regressio nha s aver

y goo dfit, witha

nAdjuste dR-squar e o f

72.6 2 percent
. Th e T-Statisti c fo r th e fixedcost

elemen t i s 28.85 , an dth e distanc e variabl e ha s aT-Statisti c o f 58.80 , both o f whic har e highl y significant

. Th e regressio nresul t i s $369.3 1 + $7.419 2 x Distance

. ^ ^ Fo r th e linehau l elemen t

o f th e rate , th e onl y elemen t a t issue , movin g ato no f

mai l 100 miles , th e Posta l Servic e woul dpay $1,111.2 3 unde r th e "Taper, " an d$1,110.57 1 without

. ^ ^ Obviously , for

distance s shorte r

than100 miles , th e Posta l Service woul dpa y mor e an dfor

longe r distances , less

. Base do nal l eligibl e mai l fo r Part 13 5 segments , w e hav e calculate dthat

th e Posta l Servic e woul dpay virtuall y th e sam e witho r withou t a Tape r give nth e curren t

mi x o f traffic

- $29,344,63 1 vs . $29,517,146 , an dw e wil l mak e that calculatio navailabl e upo nrequest
. Likewise , becaus e th e regressio nwa s base do n

' ^ Th e uni t cost s pe r RT M fo r on e o f thos e carriers ' Beec

h1900 s ar e somewha t jes s tha nthos e o f th e Par t 13 5 average, whil

e thos e fo r th e othe r tw o ar e somewha t higher

. ' ^ W e note, a s show ni nAttachmen

t B , tha t th e bloc k hou r cost s o f Warbelow' s Beec

hJ 900 s an dPenAir' s Metros ar e ver y similar , bu t PenAir' s cost

s pe r RT M ar e muc hlower

. Th e differenc e is no t an y greate r efficienc y b y PenAi r tha n Warbelo w but , rather , tha t PenAi r ha s a naverag e stag e lengt ho f 51 5 mile s whil e Warbelow' s is 14

4 miles

. ' ° This resul

t i s befor e a ninflatio nadjustmen

t ha s bee napplie dt o th e propose dPar t 13 5 rate
. '^Taper:S369.3 l +10

0 x $7.4192 ; withou

t taper , 10 0 mile s x $11.0571

. Bot

hset s o f rales ar e befor e a n inflatio nfacto r ha s bee nadded

.

## - 9

-

1,30 4 observafion s o f

cost s an ddistance , w e hav e onl y include dasampl e o f thos e calculation s i

nth e appendix

. W e wil l make all o f th e calculation s availabl e upo nrequest
. Th e Posta l Servic e wa s concerne dthat w e no t arbitraril y exclud e aircraf t fromou r calculatio no f

th e rate
. O nthat

basis , ther e i s n o differenc e betwee nth e Taper an dth e unitary linehau l rate
. Th e Posta l Servic e wa s als o concerne dthat w e no t discourag e competition

. W e tentativel y believ e th e Tape r wil l encourag e real competition

. Wit ha Taper , carrier s operatin g smalle r aircraf t an dPenAir' s 19-seat

aircraf t wil l b e abl e t o compet e o nmor e equal terms
. Othe r Matter s Upo nreview , ou r

staf f discovere da

nerro r the y ha dmad e usin g PenAir' s data

. Portion s o f PenAir' s Freigh t

Revenu e To nMile s wer e mistakenl y excluded

. A s aresult , w e hav e recalculate dth e Par

t 13 5 an dPar

t 12 1 rates , a s shown

. Bot hth e overal l Part

13 5 an d Part 12 1 rate s ar e slightl y lower a s aresult

. Obviousl y PenAir , a s aver y long-hau l operator , wil l no t

secur e a s hig harat e fromth e Postal Servic e a s it woul dwithou t

aTaper

. However , w e not e that

th e propose dPart

13 5 Taper

reflect s ahighe r

rate thanth e propose d Part 12 1 rat e that

PenAi r woul dreceiv e ha dit

no t take nit s Metr o III ou t

o f Part 121

. Thes e rate s d o no t

includ e th e mos t

recen t quarterl y fuel expenses . Whe nw e issu e afinal order , w e wil l update th e rat e for thos e results

. Th e Taper

reflect s asignifican t

chang e inou r

calculatio no f

th e rates , an dn o part

y ha s ha d a nopportunity t o object

. Therefor e w e wil l giv e al l partie s te nday s t o objec t t o ou r propose dmethodolog y an dresults

. Orde r 2005-1-1 8 mos t

recentl y use daTape r

i nsettin g th e Par t 12 1 rale , bu t

Orde r 2006-3- 5 abandone dth e Taper

. A s discusse dinthat order , PenAi r vehementl y oppose dth e Taper an donl y on e carrier , Hageland , supporte daTaper

. Becaus e Hagelan ddi dno t operat e Par

t 121^ 0 equipment , it

wa s no t a s directl y affecte da s PenAir

. That

i s no t th e cas e here

. W e note that Frontie r expresse dsupport

for aTaper i n it s January 27 , 2011 , filing. Finally , n o partie s objecte dt o th e termina l rate o r th e Seaplan e linehau l rat e propose di n Sho w Caus e Orde r

2010-12-28

. Therefore , w e wil l finalize thos e rates
.

^ ^ Th e earlie r

tape r wa s applie dt o th e Part

12 1 rat e rathe r

thanth e Par

t 135

.

## -10

-

ACCORDINGLY , 1

. W e direc t

all intereste dperson s t o sho w cause , n o late r thanten(10 ) day s afte

r th e dat e o f servic e o f

this order , why th e Departmen t shoul dno t

adop t th e foregoin g tentativ e findings an dconclusion s an dset mai l rate s a s follows : Par t 121 , $6.005 2 pe r

mai l revenu e to nmil e (M-RTM) ; an dPar t 135 , $7.462 2 pe r

M-RT M an d$371.4 5 pe r mai l to nenplaned

. Thes e rate s woul db e final (subjec t t o quarterl y fue

l updates) , unti l th e nex t

annual update , whic hw e anticipat e woul doccu r approximatel y on e yea

r fromwhe nth e rate s ar e finalized. Vagu e o r unsupportedobjection s that d o no t includ e all propose dadjustment s an dbacku p dat awil l no t

b e accepted ; 2

. Th e Termina l rat e an dSeaplan e linehau l rate s tentativel y se t by Orde r 2010-12-28 , $716.1 6 pe r

mai l to nenplane dan d$32.894 4 per mai l revenu e to nmil e wil l b e effectiv e th e secon dSaturday afte

r th e servic e dat e o f

this order ; 3

. W e wil l gran t

th e motion s o f

th e Consolidate dCarrier s an dPeninsul aAirways , Inc. , an d accep t thei r late-file dcomments ; 4

. If n o objectio ni s filedwithi nth e designate dtime , o r i f n o timely-file dobjectio nraise s materia l issue s o f

fact , w e hereb y delegat e authority t o th e Director , Offic e o f Aviatio n Analysis , t o make th e abov e rate s final; 5

. Thi s docke t

shal l remai nope nunti l further orde r o f th e Department ; an d 6

. W e wil l serv e this orde r upo nal l partie s o nth e Servic e Lis t for thi s Docket

. By :

SusanKurlan d Assistan t Secretarj ' for Aviatio nan dInternationa l Affair s (SEAL )
Anelectroni c versio no f

thi s documen t

i s availabl e o nth e Worl dWid e We b a t http://www.regulations.go v

### Attachmen t A Linehaul , Pa n12 1 Appendi x A

Unit Cos t pe r Revenu e Ton-Mil e Fuel Nonfuel Total 

## ( 0

Yea r Ende d 6/30/1 0 1 /

$1.291 3 $4.385 0 $5.676 3 (2 )

Averag e Annual Chang e Y E6/30/0 4 t o YE6/30/1 0 2 /

0.00 % 4.92 % (3 )

Midpoin t t o Midpoin t Chans e

0.00 % 7.50 % 3 / (4 )

Estimate d Uni t Cost a t 7/1/1 1 4 /

$1.291 3 $4.713 9 $6.005 2 (5 )

Curren t Rate , Orde r 2010-9-2 4

$1.385 4 $4.513 9 $5.899 3 (6 )

Chang e from Curren t 5 /

-6.79 % 4.43 % 1.80 %

1/Fuel , Appendi x C-2A

. pag e 1 ("actual " annual) ; total

. Appendi x C-IA , pag e 1

. Nonfuel , $1.291 3 fromC-2A , i s th e difference

. Note tha t th e total here i s $5.6763 , NO T $5.8518

. whic hi s onl y use dfo r determinin g th e trend

. 2/ Fuel increase s we assum e will b e zero . For nonfuel , .se

e "predicte dannual increase " i nAppendi x B , Pag e 1

. 3 / Reflect s th e fac t

thai fromth e midpoin t

o f th e reportin g perio dt o th e midpoin t o f th e prospectiv e rat e i s I an d1/ 2 years . 1.049 2 X 1.0246 , where 4.9 2 i s th e averag e annual unit cos t increas e projecte dfor

a6-mont hperiod

. 4/Fue l reflect s QE6/30/10.Orde r 2010-9-24

. fo

r illustrativ e purposes . Nonfue l i s column(I ) multiplie db y column(3)

. Th e total i s th e sumo f

the two
. Th e fma

l orde r wil l reflec t

th e mos t recen t quarterl y fue

l cost s availabl e a

t th e time

. 5 / Column4 •=

- Column5 les s 1

.

### Attachmen t A Linehaul

. Fart

12 1 Appendi x B Pag e I o f 2

1 / Y E6/30/ 200 4 200 5 200 6 200 7 200 8 200 9 201 0 $/RT M

Non-Fue l Linehau l $3.492 4 $3.451 1 $3.445 0 $3.683 5 $4.126 5 $4.131 5 $4.566 9 Actual Y Natura l Lo g $/AT M Non-Fue l Linehau l PredictedY 1.25058 9 1.23869 3 1.236924 1.30386 3 1. 4 J 743 0 1.41864 1 1.518834 6 1.196588 6

1.244629 3 1.2926 7 1.340710 7 J

. 388751 3 1.43679 2 1.484832 7 Residual s

0.054000 4 -0.00593 6 -0.05574 6 -0.03684 8 0.028678 7 -0.01815 1 0.034001 9 EXPfY l

3.308810 1 3.471647 7 3.64249 9 3.821758 5 4.0098 4 4.207177 6 4.414226 8 Predicte d

Annual Increas e 4.92 % SUMMAR Y OUTPU T

Regressio nStatistic s Multipl e R0.932307 3 RSquar e 0.869196 9 Adjuste dRS q0.843036 2 Standar dErro

j 0.044101 5 Observation s 7

ANOV A Regressio n Residual Total df S S M S FSignificanc e F 1 0.064621 4 0.064621 4 33.22537 9 0.002207 4 5 0.009724 7 0.001944 9 6 0.074346 1 Coefficient s StdErro r

1 Stat Intercep t -95.0769 3 16.72714 1 -5.68399 1 X Variabl e I 0.048040 7 0.(X)83344 5.76414 6 P-valu e Lower 95 % Uppe r

95 % 0.002348 6 -138.075 4 -52.0784 4 0.002207 4 0.026616 4 0.069464 9

1 / Fo r 200 4 throug h2009 , se e Orde r 2009-11-2 , Attachmen t

A , Appendi x B , Pag e I

. Fo r 2010 , se e Appendi x C

- I B an dC- 2 of thi s order : $5.851 8 total linehau l expens e pe r RTM , Appendi x C-IB , les s $ 1.284 9 fue l expens e pe r

RTM , Appendi x C-2B

. I norde r t o ge t amore realisti c trend , we hav e use d$5.8518 , whic hi s Part 12 1 compute d i nth e prio r

way . i.e. , th e total include s all o f PenAir' s Metro s an dSaabs

. Note : Th e revise dnumber fromOrde r

2010-12-2 8 wa s du e t o correction s t o PenAir' s eligibl e Freigh t RTMs , whic haffecte dth e carrier' s Total RTMs

.

### Attachmen t A Linehaul , Part

12 1 Appendi x B Pag e 2 o f

2


# Nonfue l Linehaul , Uni t Cos t pe rRTM , Actua l vs
.

Predicte d
1.6 0

1.5 0 - bO 

# s 2 1.4 0 - 3 4 ^ 

### Z 

## 1 1-3 0 y= 0.048x-95.07 7 — R ^ = 086^3-^^ ^

^^^^^ # 

# 1 t ^^^'^^^ ^

• Q 1.2 0 Ji^^^ ^

' E 3 1.1 0 -

200 4 200 5 200 6 200 7 200 8 200 9 201 0 Year s Ende d Jun e 30 , 2004 , throug h Jun e 30 , 201 0•Syste

m 1

. Capacit y Relate dExpens e (CR ) 2

. Direc t

Expense , (rtcfude s Fue l 3

. Indirec t

Expens e 4

. C RMarku p 5

. Return an dTa

x Marku p 6

. r-(OOSeg.Skd

. Mai l RTM s 7

. T-IOOMkt.Skd

. Mai l RTM s 8

. Circuity Marku p

B y Aircraf

t Typ e 9

. Direc t

Expenses , Include s Fuel 1 0 1 l^s s Passenger

Liability Insuranc e 1 1

. Linehau l Expens e Allocabl e t o Mai l 12

. CostperBlockHoLjr(Rll-HRl8 ) 1 3

. MarkedUpCosts(Rll*R4*R5*R8 ) 1 4

. Eligibl e Expens e (R13*R32-=-R18 ) 15

. CosiperRT M (RI4-^R36 ) 1 6

. Perceniag e of

Eligibl e Mai l RTM s 1 7

. Cost

. Wld

. b

y Mai l RTMs

. Include s Fue l
Schedule d+ Nonschedulc d 1 8

. Bloc k

Hour s 1 9

. Pax

. RTM s 2 0

. Freigh t

RTM s @ 0.7 5 2 1

. Mai l RTM s 2 2

. Total RTM s 2 3

. Aircraf

t Mile s 2 4

. Availabl e To n Mile s 2 5

. Departure s Performe d 2 6

. Weighte dDeparture s (GTOW ) 2 7

. To n Loa

dFacto r 2 8

. Stag e Lengt

h 2 9

. ATM s per

Mil e 3 0

. RTM s pe r

Mil e 3 1

. RTM s pe r

Hou r Eligibl e (Se e Appendi x E 3 2

. Block

Hour s 3 3

. Pax

. RTM s .3 4

. Freight

RTM s @ 0.7 5 3 5

. Mai l RTM s 3 6

. Tota l RTM s 3 7

. Aircraf

t Mile s 3 8

. Availabl e To n Mile s 3 9

. Departure s Performe d 4 0

. Weighte dDeparture s (GTOW ) 4 1

. To n Loa

dFacto r 4 2

. Stag e Lengt

h 4 3

. ATM s pe r

Mil e 4 4

. RTM s per

Mil e 4 5

. RTM s per

Hou r Tota l

Tota l $49,582,92 0 $1,308,78 6 $48,274,13 4 $1,324.1 8 $59,951,10 0 $32,501,46 9 $4.582 1 100.00 % $£.676. ^

36.45 6 10.565.72 3 483,58 7 1.801.45 2 12,850,76 2 8.416,07 2 23,454,81 6 24,78 8 570.31 0 54.79 % 339. 5 2.7 9 1.5 3 352.5 0

19,76 4 5.992.10 3 241,96 9 858.99 4 7,093,06 6 4,587.87 0 12.339.33 7 13,49 9 291.65 6 57.48 % 339. 9 2.6 9 1.55 358.8 9 "Actual " (Se e Appendi xC- J B fo r"Trend" )

Frontie r $1,621,20 9 532.954,54 3 $6,100,81 9 104.33 % 109.46 % 374,60 7 356.58 3 105.05 %
Beec h 190 0 40 5 $15,035,45 7 $457,05 3 $14,578,40 4 $1,410.5 9 $17,489,23 0 $11,774,55 9 $8.932 1 36.938 % $3.299 3

10,33 5 1.622.35 2 94,67 6 344.43 6 2,061.46 4 2.082,41 9 3.764.49 4 9,71 7 163,24 6 54.76 % 214. 3 1.8 1 0.9 9 199.4 6

6.95 8 925.25 1 75.68 4 317.29 4 1.318.22 9 1.336,30 2 2,474,04 9 7.53 1 126.52 1 53.28 % 177. 4 1.8 5 0.9 9 189.4 6 PenAi r

$6

. .101.70 5 597.788.03 6 $21.300.12 4 105.59 % 109.46 % 2.088,41 0 1.915,42 9 109.03 %
Metr o 2 3 455- 1 $717,15 9 $48,35 5 $668,80 4 $839.1 5 $842,79 7 $324,64 1 $3.782 9 1.895 % $0.071 7

79 7 179,47 3 6.49 5 28.50 4 214.47 2 198.27 3 401.83 0 48 3 7,97 0 53.37 % 4)0. 5 2.0 3 1.08 269.1 0

30 7 65.03 0 4.50 9 16,27 8 85.81 7 80,10 1 151.75 1 16 2 2.67 3 56.55 % 494. 5 1.8 9 1.07 279.5 3 PenAi r

105.59 % 109.46 %

109.03 %
Metr o 2 3 455- 2 $703,59 7 

# m $703,59 7 $795.9 2 $886,64 2 $855,54 9 $3.754 1 22.806 % SO.856 2

88 4 0 32.63 8 205.81 6 238.45 4 223,30 5 423,19 6 44 3 7,31 0 56.35 % 504. 1 1.9 0 1.07 269.7 4

85 3 0 3 (.99 6 195.90 2 227.89 8 216,78 5 410,69 9 42 2 6,96 3 55.49 % 5 13 7 1.8 9 1.05 267.1 7 PenAi r

105.59 % 109.46 %

109.03 %
Saa b 34 0 45fi- | $26,958,88 2 $716,12 7 $26,242,75 5 $1,347.7 2 $33,069,96 0 $18,516,93 6 $3.586 7 34.045 % $1.221 1

19,47 2 7,978.39 4 191.96 1 640.61 0 8.810,96 5 4.741,97 1 16.047,26 8 11,36 3 329,52 7 54.91 % 417. 3 3.3 8 1.8 6 452.4 9

10.90 3 4.746.17 7 (24.06 2 292.44 6 5.162,68 5 2,777,74 3 8,823.82 6 4.99 5 144,85 5 58.51 % 556. 1 3.1 8 1.8 6 473.5 1 Attachmen t A

Linehaul

. Par

t 12 1 Appendi xC-I A

PenAi r

105.59 % 109.46 %

109.03 %
Saa b 34 0 459- 1 $3,101,07 6 $87,25 1 $3,013,82 5 $1,471.5 9 $3,797,88 9 $1,196,11 3 $4.313 4 2.022 % $0.087 2

2.04 8 785,42 4 10,76 6 32,54 9 82873 9 461.88 6 1.474,43 6 1.36 5 39,58 5 56.21 % 338. 4 3.1 9 1.7 9 404.6 6

64 5 255.64 5 4.2S 7 17,37 1 277.30 3 152.69 9 433,08 9 34 0 9.86 0 64.03 % 449. 1 2.8 4 1.8 2 429.9 3 "Actual "

PenAi r

105.59 % 109.46 %

109.03 %
Metr o 11 1 467- 2 $3,066,74 9 

# m $3,066,74 9 $1,050.2 6 $3,864,58 2 $129,70 2 $6.137 1 2.294 % $0.140 8

2,92 0 8 0 147.05 1 549.53 7 696.66 8 708.21 8 1,343.59 2 1,41 7 22.67 2 51.85 % 499. 8 1.9 0 0.9 8 238.5 8

9 8 0 1.43 1 1970 3 21,13 4 24.24 0 45,92 3 4 9 78 4 46.02 % 494. 7 1.8 9 0.8 7 215.6 5Syste m

1

. Capacit yRelate d Expens e (CR ) 2

. Direc t Expense

. Include s Fue l 3

. Indirec t Expens e 4

. C R Marku p 5

. Retur n an d Ta xMarku p 6

. T-lOOSeg.Skd

. Mai l RTM s 7

. T10 0 Mkt.Skd

. Mai l RTM s 8

. Circuit yMarku p

B yAircraf t Typ e 9

. Direc t Expenses

. Include s Fue l 1 0 ^ Les s Passenge rLiabilit yInsuranc e 1 1

. Linehau l Expens e Allocabl e t o Mai l 12

. Cos t pe rBloc k

Hour(RI!-^R18 ) 13

. MarkedUpCosts(Rll*R4*R5*R8 ) 1 4

. EligibleExpense(RI3*R.32-HR18 ) 1 5

. Cos t pe rRT M (R14^R36 ) 1 6

. Percentag e o f Eligibl e Mai ! RTM s 1 7

. Cost

. Wld

. b yMai l RTMs , Include s Fue l

1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1

3 2 3 3 3 4 3 5 3 6

. 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4

. 4 5 Schedule d + Nonschedule d Bloc k Hour s Pax

. RTM s Freigh t RTM s @ 0.7 5 Mai l RTM s Tota l RTM s Aircraf t Mile s Availabl e To n Mile s Departure s Performe d Weighta i Departure s (GTOW ) To n Loa d Facto r Stag e Lengt h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r Eligibl e (.Se

e Appendi xE Bloc k Hour s Pax

. RTM s Freigh t RTM s @ 0.7 5 Mai l RTM s Tota l RTM s Aircraf t Mile s Availabl e To n Mile s Departure s Performe d Weighte d Departure s (GTOW ) To n Loa d Facto r Stag e Lengt h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r Tota l

Tota l $56,315,41 9 $1,530,96 7 $54,784,45 2 $1,411.7 2 $ 0 $ 0 $0.000 0 100.00 % 

### $?.sfi a

38,80 7 10,813,10 9 502,78 6 2.278.06 8 13,593.96 3 8,961.56 3 25.239.65 0 26.35 9 611.31 8 53.86 % 340. 0 2.8 2 1.52 350..1 0

22.93 3 6.030,46 4 395,20 2 1.394.29 7 7,819.96 3 5,368.20 8 13.841.47 4 15.09 5 317,94 6 56.50 % 355. 6 2.5 8 1.4 6 340.9 9 Trend " - Include s Al l o f Thes e Aircraf t Type s

Frontie r $1,621,20 9 $32,954,54 3 $6,100,81 9 104.33 % 109.46 % 374.60 7 356,58 3 105.05 %
Beec h 190 0 40 5 $15,035,45 7 $457,05 3 $14,578,40 4 $1,410.5 9 $17.489.2.1 0 $11774.55 9 $8.932 1 22.757 % $2.032 7

10.33 5 1.622.35 2 94.67 6 344.43 6 2,061,46 4 2.082,41 9 3,764,49 4 971 7 163,24 6 54.76 % 214. 3 1.8 1 0.9 9 199.4 6

6.95 8 925,25 1 75.68 4 317.29 4 1.318,22 9 1,336,30 2 2,474.04 9 7,53 1 126.52 1 53.28 % 177. 4 1.85 0.9 9 189.4 6 PenAi r

$5,891,17 8 $48,872,09 4 $20,860,38 0 109.23 % 109.46 % 2,088,41 0 1,915.42 9 109.03 %
Metr o 2 3 45 5 $1,420,75 6 $48,33 5 $1,372,42 1 $816.4 3 $1,789,08 4 $1,234,58 5 $3.935 4 15.218 % $0.598 9

1.68 1 179.47 3 39.13 3 234.32 0 452.92 6 421.57 8 825.02 6 92 6 15.27 9 54.90 % 455. 3 1.9 6 1.0 7 269.4 4

1.16 0 65,03 0 36,50 5 212.18 1 31371 6 296.88 6 562.45 1 58 4 9,63 6 5578 % 508. 4 1.8 9 1.0 6 270.4 4 PenAi r

105.59 % 109.46 %

109.03 %
Saa b 34 0 45 6 $31,370,55 4 $830,77 9 $30,539,77 5 $1,510.6 0 $38,484,87 5 $20,802,42 9 $4.020 8 21.212 % $0.852 9

20.21 7 8.159.16 2 196,18 0 694.21 8 9.049.56 0 4.912,00 3 16,696,60 6 11,91 0 345.39 0 54.20 % 412. 4 3.4 0 1.84 447.6 2

10.92 8 4,753.50 3 124.38 1 295.75 7 5.173,64 1 2784,97 6 8.850,.17 2 5,02 2 145.63 8 58.46 % 554. 6 3.1 8 1.8 6 473.4 3 Attachmen t A

Linehaul , Par

t 12 1 Appendi xC-I B

o rPenAi r1 /
PenAi r

105.59 % 109.46 %

109.03 %
Saa b 34 0 45 9 $4,662,94 3 $87,25 1 $4,575,69 2 $1,504.1 7 $5,766,08 5 $1,273,77 0 $4.424 3 1.984 % $0.087 8

3.04 2 785.42 4 15.01 1 424.40 5 1,224.84 0 681.31 8 2.308.27 7 2,03 9 59,13 1 53.06 % 334. 1 3.3 9 1.8 0 402.6 4

67 2 255,64 5 4.58 7 27,66 8 287.90 0 158.11 2 453.65 9 37 1 10,75 9 63.46%

. 426. 2 2.8 7 1.82 428.4 2 "Trend "

PenAi r

105.59 % 109.46 %

109.03 %
Metr o 11 1 46 7 $3,825,70 9 $107,54 9 $3,718,16 0 $1,052.7 1 $4,685,46 1 $4,264,93 7 $5.870 7 38.829 % $2.279 5

3.53 2 66.69 8 15778 6 580.68 9 805,17 3 864.24 5 1,645.24 7 1,76 7 28,27 2 48.94 % 489. 1 1.9 0 0.9 3 227.9 7

3,21 5 31.03 5 154.04 5 541.39 7 726,47 7 791.9.1 2 1.500.94 3 1,58 7 25.39 2 48.40 % 499. 0 1.9 0 0.9 2 225.9 6
1 / Previousl yPenAir' s Metro' s an d Saab s operate d unde rPart 121

. No wthe yoperat e a s eithe rmainline

. Par

t 121

. o rPar

t 135

.Yea r Ende dJun e 30

. 2010

. Fue l Expens e ("Actual" ) Attachmen t A Linehaul

. Par

t 12 1 Appendi x C- 2 A "Actual "

Carrie r Aircraf t Nam e Aircraf t Cod e Tota l Frontie r Beec h 190 0 40 5 PenAi r

Metr o 2 3 455- J PenAi r

Metr o 2 3 455- 2 • PenAi r

Saa b 340 B 456- 1 PenA w

Saa b 340 A 459- 1 PenAi r

Metr o II I 467- 2

Fue l E.ipens e 1 2 3 4 5 6 7 8 9 1 0 1 1

. 1 2 1 3

. Toi'ii l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour s Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M Mai l RTM s Percentag e Cost/RTM

. Wtd

. B yMai l RTM s $12.7149,28 7 4,398,16 1 36.45 6 19.76 4 858.99 4 7.093.06 6 $2.9 1 120. 6 $350.8 1 $7,043,49 9 $0.993 0 100.00 % 

### $1.2?I J $ 3 .H71,01 3

1.389.13 9 10.33 5 6,95 8 317.29 4 1.318,22 9 $2.7 9 1.34. 4 $374.5 5 $2,606,14 5 $1.977 0 36.938 % $0.7.10 3 $244,17 5

7071 4 79 7 30 7 16,27 8 85.81 7 $3.4 5 88. 7 $306.3 7 $94,05 5 $ 1.096 0 1.895 % $0.020 8 $248,62 5

79,43 1 88 4 85 3 195,90 2 227.89 8 $3.1 3 89. 9 $281.2 5 $239,90 6 $1.052 7 22.806 % $ 0 240 1 $6,854,90 4

2.328.4 5 1 19,47 2 10,90 3 292,44 6 5.162.68 5 $2.9 4 119. 6 $352.0 4 $3,838,28 2 $0.743 5 34.045 % $0.253 1 S754,S5 2

270,06 9 2.04 8 64 5 17,37 1 277.30 3 $2.8 0 131. 9 $368.5 8 $237,73 4 $0.857 3 2.022 % $0.017 3 $815 7 I K

260,35 7 2.92 0 9 8 19.70 3 21.1.3 4 $3.1 3 89. 2 $279.3 6 $27,37 7 $1.295 4 2.294 % $0.029 7



### Quarter Ende dJun e 30

. 20JO , pe r Orde r 2010-9-2 4

Q E 6-30-1 0 Syste mParameter s fo

r Eac hCarrie r Aircraf t Name Aircraf t Cod f Fue l Expens e Gallon s Issue d Pric e pe r

Gallo n (RI-^R2 ) Bu mpe r Hou r ( R2-^R6 ) Unit Cost s per

Bloc k Hour(Rl-=-R6 )

6

. Syste mRev

. Blk

. Hrs

. T- l 0 0 Segmen t 7

. Eligibl e Bloc k

Hour s 8

. Eligibl e Fue l Expense(RI*R7-;-R6 )
9

. Eligibl e Pax

. RTM 1 0

. Eligibl e Freigh t

RT M @ 7 5 1 1

- Eligibl e Mai l RTM 1 2

. Tota l Eligibl e RTM s 1 3

. Uni t

Cos t pe r Eligibl e RTM (R8^ R12 ) 1 4

. Percentag e o f

Tota l Mai l RTM s 1 5

. Unit

Cost , Wld

. b y Mai l RTM s Abov e Total s

3.506,64 0 1.158,46 5 $3.0 3 13 5 $409.3 7 8,56 6 4.51 5 1.844.43 2 1,556,88 5 31,12 6 164.68 6 1.752.69 7 $1.052 3 100.00 % 

## iuas i Frontie r

B-190 0 40 5 $647,73 6 240,86 8 $2.6 9 13 6 $366.5 7
1.76 7 99 3 $364,00 8 128,15 3 1073 4 .34.14 8 173.03 5 $2.103 7 20.74 % $0.436 3 PenAi r

Meux>2 3 45 5 $41.70 7 10,30 6 $4.0 5 9 2 $372.3 8
11 2 6 9 $25,69 4
871 9 60 0 9.30 7 18,62 6 $1..179 5 5.65 % $0.077 9 PenAi r Saa b 34 0 456/45 9 $2,817,19 7 907.29 1 $3.1 1 13 6 $421.2 9
6.68 7 3.45 3 $1,45473 0
1.420.01 3 19.79 2 1 21.23 1 1,561,0.3 6 $0.931 9 73.61 % $0.686 0 PenAi r

Metr o II I 46 7 $311,98 5 96,23 0 $3.2 4 9 1 $296.5 6 1,05 2 90 5 $268,39 0 7,37 7 19,47 4 140.67 6 167.52 7 $1.602 1 85.42 % $1.368 5Year Ende dJun e 30

. 2010 , Fue l Expens e (Trend ) Attachmen t A Linehaul , Pa n 12 1 Appendi x C-2 B "Trend "

2

. 3

. 4 5

. Carrie r Aircraf t Name Aircraf t Cod e

Tota l Fue l Expens e Tota l Gaiion s Issue d Tota l Bloc k

Hour s Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s 6

. Tota l Eligibl e RTM s 7

. Pric e pe r

Gallo n 8

. Bu mper

Hour 9

. Cost s pe r

Bloc k Hou r 1 0 Eligibl e Fue l Expens e 1 1

. Cos t

pe r Eligibl e RTM 1 2 Mai l RTM s Percentag e 1 3

. Cosl/RTM

. Wtd

. B y Mai l RTM s To;a l

$14,488,13 1 4,961,35 5 38.80 7 22,93 3 1.394,29 7 7,819,96 4 $2.9 2 127. 8 $373.3 4 $8,410,65 3 $1.075 5 100.00 % 

### £1.284 2 Frontie r

Beec h 190 0 40 5

$3,871,01 3 (.389,1.3 9 10.33 5 6.95 8 317,29 4 1.318.22 9 $2.7 9 134. 4 $374.5 5 $2,606,14 5 $1.977 0 22.757 % $0.449 9 PenAi r

Metr o 2 3 45 5 PenAi r

Saa b 340 B 45 6

Fue l Expens e $472,80 0 150,14 5 1,68 1 1.16 0 212.18 1 31371 6 $3.1 5 89. 3 $281.2 6 $326,26 3 $1.040 0 15.218 % $0.158 3 $7,992,21 4

2.703.50 3 20,21 7 10,92 8 29575 7 5,173.64 2 $2.9 6 133 7 $395.3 2 $4,320,07 3 $0.835 0 21.212 % $0.177 1 PenAi r

Saa b 340 A 45 9

$1,161,65 8 402.59 1 3.04 2 67 2 27,66 8 287,90 0 $2.8 9 132. 3 $381.8 7 $256,61 9 $0.891 3 1.984 % $0.017 7 PenAi r

Metr o II I 46 7

$990,44 6 315.97 7 3,53 2 3,21 5 541.39 7 726.47 7 $3.1 3 89. 5 $280.4 2 $901,55 3 $1.241 0 38.829 % $0.481 9

### Attachmen t A Linehaul

. Part

12 1 Appendi x D

Determinatio n o f

Whic hCarrier s Are Include di nth e Linehau l Calculation , Y E6-30-1 0 Eligibl e Part

12 1 Mai l RTMs

. YE6-30-1 0

Carrie r Frontie r PenAi r PefiAi r PenAi r PenAi r PenAi r Er a PenAi r PenAi r PenAi r A/ C Tvp e 40 5 456- 1 455- 2 467- 2 459- 1 455- 1 40 5 456- 2 467- 1 459- 2 Mai l RTM s

317,29 4 292,44 6 195,90 2 19,70 3 17.37 1 16,27 8 2,44 7 86 4 

## 0 0 862,30 5 %o f

Total 36.80 % 33.91 % 22.72 % 2.28 % 2.01 % L89 % 0.28 % 0.10 % 0.00 % 0.00 % 100.00 % Cumulativ e

Total 36.80 % 70.71 % 93.43 % 95.71 % 97.72 % 99.61 % 99.89 % 99.99 % 99.99 % 99.99 %

Intra-Alask aTraffi c Excludedfro mth e Bus hCalculation s

Alask aAirline s Inc

. Alask aCentral Expres s Federal Expres s Corporatio n Lynde nAi r

Carg o Airline s NorthernAi r

Carg o Inc

. Northwes t

Airline s Inc

. Unite dParce l Servic e AT S Empir e Tatondu k Reaso n for Exclusio n Mainlin e Only All-Cargo , N o Pax Al l Cargo , N o Pax , All Cargo

. N o Pax , Al l Cargo , N o Pax , Mainlin e Onl y Al l Carg o Al l Cargo

. N o Pax

. Mainlin e Onl y Eithe r Mainlin e o r

Part 13 5 equipmen t

### Attachmen t A Linehau l Appendi xE
Determinatio n o f Segment s Ineligibl e fo rCalculatin g Bus h Rates , Schedule d Intra-Alask a Departure s performe d wit h Mainlin e Equipmen t T-lO O Segmen t Report , Q E 6-30-10 , Seve n o rMor e Departure s Performe d

Oriei n AD K AD Q AK N AK N AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN C AN I AN I BET BE T BR W BR W BR W CD V CD V DL G DL G DL G EM K Dest

.

AN C AN C AD Q AN C AD K AD Q AK N AN I BE T BR W CD V DL G EM K ENA FA I GA L HO M IL I JN U KS M MC G OM E OT Z RD B 

## se c UN K VDZ AN C MC G AN C ED F AN C FA I 

## se c AN C YA K AK N AN C IL I AN C T51 0

Dens

. 2 6 52 4 2 0 8 6 2 6 50 9 8 5 4 9 56 6 2 7 10 9 12 3 4 7 32 8 84 1 1 7 7 3 1 6 33 7 5 8 7 25 1 31 3 3 8 9 3 4 6 16 3 3 3 1 4 50 4 3 2 15 2 10 1 6 7 10 3 9 1 2 8 8 5 7 4 9 Oriei n ENA FA I FA I FA I GA L GS T HO M IL I JN U JN U JN U JN U JN U JN U KS M KT N KT N KT N MC G OM E OM E OM E OT Z OT Z OT Z PS G PS G RD B 

## se c se e se e SI T SI T SI T UN K VDZ WR G WR G YA K YA K Dest

.

AN C AN C BR W 

## se e AN C JN U AN C AN C AN C GS T KTN PS G SI T YA K AN C JN U SI T WR G AN C AN C OT Z UN K AN C FA I OM E JN U WR G AN C AN C BR W FA I AN C JN U KT N AN C AN C KT N PS G CD V JN U T51 0

Peps

. 33 1 76 5 10 5 11 9 1 5 1 8 7 4 2 5 32 1 1 8 8 7 9 1 21 6 9 0 6 4 10 2 15 3 9 1 2 1 29 7 10 9 8 22 3 1 0 17 1 9 1 9 1 3 8 6 4 18 7 3 3 1 2 24 4 9 2 4 7 16 3 9 1 9 1 9 0 9 1

### Attachmen t B Linehaul , Part

13 5 Appendi x A INTRA-ALASKA CLAS S SERVIC EMAI LRATE S COS T ADJUSTMEN T FACTOR S

" ' •



### Uni t Cos t per RTM Fuel Nonfuel (1 )

Yea r Ende d 6/30/1 0 1 /

.

$2.803 2 $8.253 9 (2 )

Averag e Annual Chang e Y E6/30/0 4 t o YE6/30/1 0 2 /

0.00 % 0.52 % (3 )

Midpoin t t o Midpoin t Chane e

0.00 % 0.78 % 3 / (4 )

Estimate d Uni t Cost at 7/1/1 1 4 /

$2.803 2 $8.318 3 Tota l $11.057 1 $11.121 5 (5 ) (6 ) (7 )

Curren t Rate , Chang e fromInflatio n Orde r 2010-9-2 4 Curren t

Rate 5 / Facto r 6/

$3.303 1 $9.952 8 $13.255 9 -15.13 %

-16.42 % -16.10 % 0.58 %

Fixe dCos t per To n Enplane d Variabl e Cost per RT M Tape r Fro m Appendi x B

S369.3 ]
$7.419 2 Inflatio n

Facto r

0.58 %

0.58 % Propose d

Rate s
$371.4 5
$7.462 2

1/Fuel , Appendi x C-2

. pag e 1 ("actual " annual) : total , Appendi x C-1

. pag e 1

. Nonfuel i s th e difference

. Not e tha t the total here i s $11.3756 , NO T $12.338 9 (bothi nAppendi x C-1) , whic hi s only use dfo r determinin g th e trend

. 2/ Fuel increase s w e assum e wil l b e zero . Fo r nonfuel , se e "predicte dannual increase " i nAppendi x B , Pag e 1

. 3/Reflect s th e fact

tha t fromth e midpoin t

o f th e reportin g perio dt o th e midpoin t of th e prospectiv e rat e i s 1 an d1/ 2 years . 1.005 2 X 1.0026 , wher e 0.002 6 i s th e averag e annual uni t cos t increas e projecte dfor

a6-mont hperiod

. 4/Fue l reflectsQE6/30/10

. Appendi x C-2 , Orde r 2010-9-24 , fo

r illustrativ e purposes . Nonfue l i s column(1 ) multiplie d b y column(3)

. Total 'i s th e su mo f th e two
. Th e final orde r will reflec t

th e mo.s i recen t quarterl y fue

l cost s availabl e a

t the time

. 5 / Column4 -

r Column5 les s 1

. 6/$ l 1.121 5 (Column4)- r $11.057 1 (Colum nI)

.Atlachmen t B Linehaul , Par

i 13 5 Append ! 5 1 B Pag e 1 of

3

$7,00 0 -
$6,00 0 -
$5,00 0

S4,Q0 0 • 4- 1 V t O u $3,00 0 - $2,00 0 -
$1,00 0 

## $ 0 ? 

# c Cost s vs
. Grea t Circl e Miles , Eligibl e Segment s wit h 2 8 o rMor e Departure s i n YE 6-30-1 0

y= 7.4192 X + 369.3 1 R2 = 0.726 4



### ^ ^ ^ 

# •il-^" ' JKP ^ w^^"

•'•'•• < ) 10 0 20 0 30 0 40 0 50 0 60 0 70 0 Grea t Circl e Mile s 

## ^



# • •

' 80 0 •—— ]

90 0

SUMMAR YOUTPU T Regressio n Statistic s Multipl e R R Squar e Adj. R Sqr

. St d Erro r Observation s 0.85231935 4

0.72644828 1 0.7262381 8 318.351428 7 1,304

ANOV A d f S S M S F Significanc e F Regressio n Residua l Tota l 1 130 2 130 3 350420772. 2 350420772. 2 3457.61183 3 131954617. 1 101347.632 2 482375389. 2 0

Coefficient s Standar d Erro r tSta t P-valu e Lowe r95 % Uppe r95 % Intercep t 369.310986 4 12.7999166 2 28.8526087 5 6.1946 E14 2 344.200258 4 394.421704 4 X Variable ! 7.4191824 1 0.12617343 6 58.8014611 4 0 7.17165692 4 7.66670789 5Aliachmen t B Linehaul , Par

t 1.1 5 Appendi xB Pag e 2 o f 3

1 2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 ) 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 (1 )
Origi n OM E WA A A L K TN K AU K 0 0 K HC R KO T KS M EG X IG G KL L KY U WN A KP C SM K KO T SM K VA K GA M KU 3 SK K BK C SH G WA A CF A DL G WS N CY F GN U (2 )

Dps t WA A SH H KO T NM E KO T BE T AN V KS M EM K BS Z AK N AKI V FA I AT T KT S OM E BE T OM E SC M OM E R S H UN K DR G OT Z KT S EG X TW A AK N KK H EE K (3 )

Carrie r Berin g Berin g Gran t Gran t Hagelan d Hagelan d Hagelan d Hagelan d Hagelan d PenAi r PenAi r PenAi r Warbelo w Yul e Berin g Berin g Gran t Hagelan d Hagelan d Hagelan d Hagelan d Hagelan d Hagelan d Hagelan d Hagelan d PenAi r PenAi r PenAi r Yut e Yut e (4 )

pisT^nc e 10 9 7 2 4 1 1 9 4 1 11 3 3 4 6 8 6 3 2 5 2 i \ 29 0 1 3 1 2 12 6 165 12 6 2 2 19 7 3 7 3 2 4 6 14 8 5 1 5 6 3 1 3 4 6 7 8 (5 )

Typ e 19 4 41 6 41 6 41 6 3 5 3 5 41 6 41 6 41 6 7 9 41 6 41 6 19 4 3 5 41 6 41 6 41 6 19 4 19 4 40 5 41 6 41 6 41 7 41 7 41 7 7 9 7 9 41 6 3 5 3 5 (6 )

Deps

. 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 8 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 2 9 (7 )

Pax , 4 5 10 2 6 5 7 3 6 7 2 3 8 5 5 4 15 0 3 7 4 7 5 0 11 7 3 5 5 8 13 1 11 2 7 7 6 7 11 6 9 6 10 3 4 8 7 3 8 2 3 3 4 6 6 0 6 3 5 7 (8 ) (9 )

Pound s 

### £3

. 3.05 1 1,41 6 23 5 33 1 7 9 0 1.91 5 0 2,65 5 112 4 31 5 87 7 4 9 15 6 3,15 5 58 6 18 8 185 46 1 18 9 1,41 3 1.78 4 3 i 34 3 96 2 107 1 62 4 90 6 2 4 2 4 Mai l

i 1.96 0 7,69 6 3,61 5 3.48 7 4 2 14 2 10.23 4 56 0 9.78 5 12 7 163 3 1(8 4 24 8 1,88 4 1 1.99 9 13 4 3 0 1.90 8 5,02 8 57 8 19.83 2 39 2 ^,69 6 66 6 3,60 3 68 0 1143 7 56 9 1,26 8 20 7 (10 ) Blk

. Min

. 1,13 5 76 4 58 4 28 2 96 1 1,88 4 73 1 1,08 7 1,02 6 18 1 66 2 4S 6 2,87 7 33 3 28 8 1,33 1 2.00 9 1.58 3 62 3 1.75 9 80 2 78 9 75 4 1.50 8 79 2 19 9 98 6 40 6 77 7 1.23 9 til )

Pax

. 490.5 0 734.4 0 266.5 0 138.7 0 274.7 0 259.9 0 289.0 0 367.2 0 945.0 0 7.4 0 244.4 0 155.0 0 3..193.0 0 45.5 0 69.6 0 1,650.6 0 1,848.0 0 970.2 0 147.4 0 2.285.2 0 355.2 0 329.6 0 220.8 0 1,080.4 0 418.2 0 16.5 0 289.8 0 78.0 0 289.8 0 444.(S O (12 ) (13 )

Revenu e To n Mile s Adj

. Fn

. 124.7 1 3 8 2 3 3. 6 J 2.3 6 1.2 1 0.0 0 24.4 2 0.0 0 62.7 2 0.8 4 6.1 4 10.2 0 5.3 3 0.7 6 14.2 0 27.6 9 11.6 3 8.7 4 3.8 0 13.9 6 19.6 1 21.4 1 0.5 3 19.0 4 18.4 0 2.0 1 14.7 4 4.4 2 0.4 1 0.7 0 Mai l 651.8 2 277.0 6 74.1 1 33.1 3 0.8 6 8.0 2 173.9 8 19.0 4 .108.2 3 0.1 3 42.4 6 (8.3 5 35.9 6 12.2 5 71.9 9 8.4 4 2.4 8 120.2 0 55.3 1 56.9 3 366.8 9 6.2 7 i 08.0 1 49.2 8 91.8 8 1.7 0 360.2 7 3.7 0 29.1 6 8.0 7 (14 )

yRTM s 1.267.0 3 1.049.6 9 344.2 2 174.1 9 276.7 7 267.9 2 487.4 0 386.2 4 1,315.9 5 8..1 7 293.0 0 183.5 5 3.434.2 9 58.5 1 155.7 9 1,686.7 3 1.862.1 1 1.099.1 4 206.5 1 2.356.0 9 741.7 0 357.2 8 329.3 4 1,148.7 2 528.4 8 20.2 1 664.8 1 86.1 2 319.3 7 453.3 7

1/Column s 1 diroug h 1 0 fro m iheT-10 0 Segmen t Report , o rcorrespondin g specia l repo n file d b yPenAir

. 2/Column s 11-( 4 compute d fro m th e firs t te n columns

. Pa.n

. weighte d a t 2(X) poimds

. freigh t adjuste d l o 75%

.Attachmen t B Linehaul , Pa n 135 Appendi xB Pag e 3 o f 3

1 2 3 4 5 6 7 8 9 1 0 I I 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 (11 )

Segmen t Cost s 14.001.4 7 12.546.4 1 7.765.1 0 3.749.5 8 4.649.3 2 9.114.7 9 8.311.1 8 12,358.7 6 11,665.2 1 1,790.2 9 13.036.7 0 9.570.7 5 28,062.5 5 2.026.1 7 4,729.5 4 21,857.6 8 26,712.4 7 17,704.9 1 6,967.8 8 48,824.5 6 9,118.4 2 8.970.6 1 14.260.7 8 28.521.5 6 14,979.4 9 1,968.3 3 9,752.6 2 7.995.3 2 4,727.7 3 7.538.8 2 (12 )

ATM s 2,685.7 6 2,923.2 0 1,607.2 0 744.8 0 642.8 8 1,771.8 4 1.218.5 6 2.437.1 2 2.257.9 2 30.8 0 2.620.8 0 1.562.4 0 6,820.8 0 214.7 6 504.6 0 5,298..1 0 6.699.0 0 2.484.7 2 433.8 4 10.169.1 4 1.373.4 4 1,187.8 4 1,960.9 8 6,309.2 4 2,174.1 3 79.7 5 1.004.8 5 678.6 0 787.0 6 1,334.5 8 (13 )

RTM s 1,273.3 2 1,160.2 2 610.5 8 282.9 5 292.7 0 806.7 2 551.1 5 1.102.3 1 1,021.2 6 12.7 7 981.7 5 585.2 8 3,389.9 4 97.8 0 200.2 8 2,102.9 0 2,544.9 5 1.478.9 1 258.2 2 4.129.6 9 621.2 1 537.2 6 676.1 5 2.175.4 3 749.6 4 33.0 7 416.7 1 254.2 0 358.4 3 607.7 7 (14 )

Cost s pe rRT M 11.0 0 10.8 1 12.7 2 13.2 5 15.8 8 11.3 0 15.0 8 11.2 1 11.4 2 140.1 9 13.2 8 16.3 5 8.2 8 20.7 2 23.6 1 10.3 9 10.5 0 11.9 7 26.9 8 11.8 2 14.6 8 16.7 0 21.0 9 13.1 1 19.9 8 59.5 2 23.4 0 31.4 5 13.1 9 12.4 0 (15 )

Segmen t Cost s 1,199.0 0 778.3 2 521.5 2 251.7 5 651.0 8 1,276.9 0 512.7 2 762.2 8 719.4 6 280.3 8 690.5 6 506.8 5 2.401.2 0 269.3 6 283.3 2 1,309.1 4 1.732.5 0 1.508.2 2 593.5 6 2,328.5 4 543.1 6 534.4 0 970.1 4 1.940.2 8 1.018.9 8 297.6 0 1,474.2 0 408.8 5 606.7 4 967.2 0

' 1 / Colum n 1 I : bloc k

minute s (colum n 10 ) • expens e pe rbloc k minut e b yearner/aircraf t typ e (fro m Appendi xC-l)

. 2/Colum n 12 : ATM s pe rmil e (fro m Appendi xC-1 ) * distanc e (colum n 4 ) * departure s (colum n 6)

. 3/Colum n 13 : ATM s (Colum n 12 ) * loa d factor(fro m Appendi xC-1)

. 4 / Colum n 14 : Segmen t cost s (Colum n 11) ^ Revenue To n Mile s (Colum n 13)

. 5/'Colum n 15 : Distanc e (Colum n 4 ) * Cost s pe rRT M (Colum n 14)

.

### Attachmen t B Linehaul , Pa n13 5 Appendi x C Pag e I of 2

1 / YEfi/.-^O/ 200 4 200 5 200 6 200 7 200 8 200 9 201 0 $/RT M

Non-Fue l Linehau l 9.521 8 8.569 9 8.403 9 8.670 8 8.685 3 9.616 0 9.154 7 Actual Y Vatura i Lo g $/AT M Non-Fue l Linehau l PredictedY 2.25358 4 2.14825 6 2.12869 6 2.15996 1 2.I6I63 2 2.26342 8 2.21426 7 2.174442 8

2.179609 8 2.184776 8 2.189943 7 2.J95M0 7 2.200277 6 2.205444 6 Residual s

0.079(41 2 -0.03135 4 -0.05608 1 -0.02998 3 -0.03347 9 0.063150 4 0.008604 4 EX P(Y )

8.797282 1 8.84285 5 8.888663 9 8.934710 2 8.98099 5 9.027519 6 9.074285 2 Predicte c

Annual Increas e SUMMAR Y OUTPU T 0.52 % Regressio nStatistic s Multipl e R RSquar e Ad j RSquar e StdErro r Observation s 0.208347 5

0.043408 7 -0.1479 1 0.05739 9 7

ANOV A d

f S S M S FSignificanc e F Regressio n1 Residual 5 Tot^ l 6

Coefficient s Intercep t -8.18015 4 X Variabl e 1 0.005167 0.000747 5 0.016473 2 0.017220 8 StdErro r 21.77072 5 0.010847 4 0.000747 5

0.003294 6

tSta t -0.37574 1 0.476332 4 0.226892 6

P-valu e 0.722523 3 0.653924 8 0.653924 8

Lowe r 95 % -64.1435 8 -0.02271 7 Uppe r

95 % 47.78327 5 0.033051 1

1 / For 200 4 throug h2009 , se e Orde r 2009- 1 1-2, Attachmen t

B , Appendi x B

. Pag e For2010 , se e Appendi x C- 1 an dC- 2 o f thi s order : $12.338 9 total linehau l expens e pe r RT M les s $3.178 6 fue

l expens e pe r

RTM

. Thos e number s exclud e PenAir' s Metros

. Note : Tren dincreas e i s slightl y les s thani nOrde r 2010-12-28 , 0.53 % vs . 0.5 2 % above , t o reflec t correction s i

n PenAir' s dat afo

r it s Pipe r Cheroke e an dCessn aCarava naircraft

.

### Attachmen t B Linehaul , Part

13 5 Appendi x C Pag e 2 o f 2



# Nonfue l Linehaul , Uni t Cos t pe rRTM , Actua l vs
.

Predicte d
2.2 8



### 2.2 6

O D 

### o

re

Q

.

C 3 

### 2.2 4

2.2 2

2.2 0



### o 2.1 8

2.1 6

2.1 4

2.1 2 y = 0.0052x-8.22 7 R ^ = 0.043 8

200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1
Year s Ende d Jun e 30 , 2004 , throug h Jun e 30 , 201 0Syste mParameter s fo r EayhCarrie r 1

. Capacit yRelate d Expens e (CR ) 2

. Direc t Expense

. Includ e Fue l 3

. Indirec t Expens e 4

. C R Mafku p 5

. Retur n an d Ta xMarku p 6

. T-lO O Mai l RTMs

. Segment

. F& G 7

. T-lOOMailRTMs

. .Mkr.

. FA G 8

. Circuit yMarku p Aircraf t Typ e Aircraf t Cod e 9

. Direc t Expenses

. Include s Fue l 1 0 ^ t-es s Passenge rLiabilit yInsuranc e 1 1

. Linehau l Expens e Allocabl e t o Mai l 12

. Cos t pe rBloc k

Hoiir(RllrRI8 ) 1 3

. MarkedUpCosts(Rll*R4*R5*R8 ) 1 4

. Eligibl e E.npense(RI?*R32-=-RI8 ) 15

. Cos t pe rRT M (RI4-^R36 ) "Trend " "Actual " PenAi r

105.59 % 109.46 %

109.03 %

\6 n
. Percentag e o f Eligibl e Mai l RTM s I7 n Cost , Wtd

. b yMai l RTMs

. Include s Fue l (RI5'R16a ) "Actual " 16 b 17 b

i * 1 ^ 2 0 2 1 2 2 2: 1 2 4 2 5 2 6 2 7 2 ? 2 9 3 0 3 1

3 2

. 3 3 3 4 3 5

. 3 6

. 3 7

. 3 8

. 3 9

. 4 0 4 1

. 4 2

. 4 3

. 4 4 4 5 Percentag e o f Eligibl e Mai l RTM s Cost , Wld

. b yMai l RTMs

. Include s FueURI5*R16b )
Schedule d + Nonschetjulp d

. Syste m Blk

. Hr^.,T-10 0 Segmen t

. Pax

. RTM s

. Freigh t RTM s Wtd

. @ 0.7 5

. Mai l RTM s

. Tota l RTM s

. Aircraf t Mile s

. Availabl e To n Mile s (ATMs )

. Departure s Performe d

. Wtd

. Departure s (GTOW )

. To n Loa d Facto r

. Stag e Lengt h

. ATM s pe rMil e

. RTM s pe rMil e

. RTM s pe rHou r EliEibl e (Se e Appendi xE fo rbasi s o f calculation ) Bloc k Hour s Pax

. RT M Freigh t RTM

. Wtd

. @ .7 5 Elifiibl e Mai l RT M Tota l RT M Aircraf t Mile s Availabl e To n Mile s (ATMs ) Departure s Performe d Wtd

. Departure s (GTOW ) To n Loa d Facto r Avg

. Stag e Lengt h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r PenAi r

105.59 % 109.46 %

109.03 % Metr o 467- 1 $758,96 0 $107,54 9 $651,41 1 $1,062.6 6 $820,87 9 $599,92 5 $8.450 5 Metr o

467- 2 $3,066,74 9 

# m $3,066,74 9 $1,050.2 6 $3,864,58 2 $3,532,38 7 $5.568 5

100.00 %

* l 1.057 1

2.669.52 8 1.115 %

$0.094 2

61 3 66,61 9 10.73 5 31.15 3 108,50 7 156.02 7 301.65 5 35 0 5,60 0 35.97 % 44 6 1.93 0.7 0 177.0 1

44 8 30,95 5 10.27 1 29.76 7 70,99 3 115,87 8 220.15 8 27 2 4,35 2 32.25 % 42 6 1.9 0 0.6 1 158.4 7 18.427 %

$1.026 1

2,92 0 8 0 147.05 1 549.53 7 696.66 8 708,21 8 1,343.59 2 1,41 7 22.67 2 51.85 % 50 0 1.9 0 0.9 8 238.5 8

2.66 9 8 0 142.34 3 491.92 7 634.35 0 651.81 4 1.234,86 2 1,26 6 20.25 6 51.37 % 51 5 1.8 9 0.9 7 237.6 7 Attachmen t B Linehaul , Pa n 13 5 Appendi xD- l Pag e 1 o f 5 Trend "

100.00 % $12.331. ^

2.170,59 7 A.Circl e

$3.34,71 2 $4,663,86 1 $456,83 6 106.99 % 109.46 % 56.39 7 54.22 9 104.00 % Shon s 33 0 4^ 7 $1,850,56 7 $13.81 5 $1,836,75 2 $2.3.36.8 3 $2,237,08 5 $2,037,85 4 $17.542 6

2.166 % $0.380 0

1.761 % $0.308 9

78 6 0 76,95 5 48.15 6 125.11 1 129.96 5 454,87 8 69 5 15.91 6 27.50 % 187 3.5 0 0.9 6 159.1 7

71 6 0 69.14 7 47.01 9 116,16 6 I 18.40 0 414.40 0 63 3 14.49 6 28.03 % 18 7 3.5 0 0.9 8 162.2 4 "**Actua l Eligibl e Mai l RTM S = 2,170.59 7 (trend ) +29,76 7 (PenAi r467-1 ) +491.92 7 (PenAi r467-2 ) les s 22,76 3 (Warbelo w#416 )1

2 3 4 5 6 7 8

9 1 0 I I 1 2 1 3 1 4 1 5

16a 17 a

16 b 17 b

1 8 1 9 2 0 

### 2 i 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1

3 2

. 3 3 3 4 3 5 , 3 6

. 3 7

. 3 8 3 9

. 4 0 4 1

. 4 2

. 4 3

. 4 4 4 5 Syste m Parameter s fo rEac h Carrii r Capacit yRelate d Expens e (CR ) Direc t Expense , Includ e Fue l Indirec t E.xpens e C R Marku p Retur n an d Ta xMarku p T-10 0 Mai l RTMs

. Segment

. F& G T-IO O Mai l RTMs

. Mkt.

. F& G Circuit yMarku p Aircraf t Typ e Aircraf t Cod e Direc t Expenses , Include s Fue l Les s Passenpe rLiahilii vIn.surani' p Linehau l Expens e Allocabl e t o Mai l Cos t pe rBloc k

Hou r(R I l+RIS ) Marke d U p Cost s (R1 1 *R4*R5*R8 ) Eligibl e Expens e (R13*R32^ R 18 ) CosiperRT M (RM^R.36 ) "Trend " Percentag e o f Eligibl e Mai l RTM s Cost , Wld

. b yMai J RTMs , InchOc s Fue l ( R I5" R 16a ) "Actual " Percentag e o f Eligibl e Mai l RTM s Cos) , Wrd

. b yMai ) RTMs , Include s Fue l (R15* R 16b )
Schedule d + Nonschedule d

. Syste m Blk

. Hrs

. T-IO O Segmen t

. Pax

. RTM s

. Freigh t RTM s Wtd

. < a 0.7 5

. Mai l RTM s

. Tota l RTM s

. Aircraf t Mile s

. Availabl e To n Mile s (ATMs )

. Departure s Performe d

. Wtd

. Departure s (GTOW )

. To n Loa d Facto r

. Stag e Lengi h

, ATM s pe rMil e

. RTM s pe rMil e

. RTM s pe rHou r Eligibl e (Se e Aooendi xE fo rbiisi s o f calculation ) Bloc k Hour ^ Pax

. RT M Freigh t RTM , Wtd

. @ .7 5 Elieibi e lUai l RT M Tota l RT M Aircraf t Mile s Availabl e To n Mile s (ATMs ) Departure s Performe d Wtd

. Departure s (GTOW ) To n Loa d Facto r Avg

. Stag e Lengt h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r Berin s $1,.349.82 3 $.34,186,72 7 55.189,61 2 103.55 % 109.46 % 375,33 2 357.15 8 105.09 % Navaj o 19 4 $2,723,91 4 $54,44 2 $2,669,47 2 $621.3 9 $3,179,74 5 $2,124,27 1 Sn.564 6

1.984 % .$0.229 4

1.613 % 50.186 5

4.29 6 200.10 1 9,53 2 43.16 4 252,79 7 674.30 2 590,01 4 8,38 5 62,04 9 42.85 % 8 0 0.8 7 0.3 7 58.8 4

2.87 0 133,55 6 7.06 5 43.06 7 183,68 8 442,80 1 387,45 1 6.16 3 45.60 6 47.41 % 7 2 0.8 8 0.4 1 64.0 0 Berin g

103.55 % 109.46 %

105.09 % B-190 0 40 5 $2,878,33 5 $63.2.5 9 $2,815,07 6 $1,859.3 6 $3,353,18 2 $2,017,66 8 $12.037 7

3.402 % 50.409 5

2.766 % $0.333 0

1.51 4 189,65 3 10.39 1 73.84 9 273,89 3 352,28 2 880,70 5 2.08 5 35.02 8 31.10 % 16 9 2.5 0 0.7 8 180.9 1

91 1 86.15 0 7.61 6 73,K4 7 167,61 3 205.18 2 512.95 5 1,49 7 25.15 0 32.68 % 13 7 2.5 0 0.8 2 183.9 9 Berin p

103.55 % 109.46 %

105.09 % Casa21 2 4( 2 $954,2 5 1 $18,31 0 $935,94 1 $1,742.9 1 $1,114,84 7 $589,60 3 .$13.535 4

1.613 % 50.2)8 3

1.311 % SO. ) 77 4

53 7 72 3 28,62 0 35.00 8 64.35 1 86.75 4 227,72 9 68 1 11,57 7 28.26 % 12 7 2.6 2 0.7 4 119.8 3

28 4 0 8,55 2 35.00 8 43.56 0 45.87 7 120.42 7 39 8 6,76 6 .36.17 % 

### n 5 2.6 2 0.9 5 153.3 8 Berin p

103.55 % 109.46 %

105.09 % Carava n 4( 6 $6,690,45 4 $127,46 4 $6,562,99 0 $827.2 0 $7,817,51 4 $6.662,72 1 $JI.94S 5

9.439 % SI.127 8

7.675 % $0.917 0

7,93 4 375.78 6 34.81 2 205.08 6 615.68 4 1.144,98 3 1,662,69 1 16.14 2 143.66 4 37.03 % 7 1 1.45 0.5 4 77.6 0

6.76 2 324.40 6 28.3.3 7 204.87 9 557,62 2 967.57 9 1,404.81 5 14,55 3 129,52 2 39.69 % 6 6 1.4 5 0.5 8 82.4 6 Attachmen t B Linehaul

. Par

t (3 5

Frontie r $1,621,20 9 $.32,954,54 3 56,100.81 9 104.33 % 109.46 % 374.60 7 356,58 3 105.05 % Navaj o 19 4 $1,441,81 4 $56,58 9 $1,385,22 5 $932.1 8 $1,661,80 9 $ 1,535,44 0 $18.982 8

1.389%

. 50.263 7

1.129%

. $0.214 3

1.48 6 5 2..38 4 3.50 0 .10,17 1 86,05 5 202,88 4 134,92 9 1.51 0 11,17 4 63.78 % 13 4 0.6 7 0.4 2 57.9 1

1,37 3 48.12 7 2,61 4 .30,(4 5 80,88 6 186.79 7 125.63 4 1.39 7 10.33 8 64.38 % 1.3 4 0.6 7 0.4 3 58.9 1 Appendi xD- 1

Pag e 2 o f 5 Gran t $2,794,86 5 $32,165.8.1 0 56,6.34,80 3 107.76 % 109.46 % 275.75 5 259.32 5 106.34 % C-20 6 3 1 $4,993,05 8 $210,81 2 $4,782,24 6 $460.9 4 $5,998,48 5 $5,053,18 2 SI9.439 )

3.729 % $0.724 9

3.032 % $0.589 4

10,37 5 197,97 4 6,81 7 82.40 0 287.19 1 1,144.10 5 686.54 7 24,97 0 92.38 9 4' l .83 % 4 6 0.6 0 0.2 5 27.6 8
8,74 0 172.59 9 6.41 1 80.94 0 259.95 0 985.96 8 591,66 4 21.21 6 78.49 9 43.94%

. 4 6 0.6 0 0.2 6 29.7 45>'Sie

mparameter s for

Eac hCafrie r 1

. Capacit y Relate dExpens e (CR ) 2 , Direc t

Expense , Include Fue l 3

. Indirec t

Expens e 4

. C R Marku p 5

. Return an dTa x Marku p 6

. T-100MailRTMs.Segment,F& G 7

. T-IOOMailRTMs , Mkt. , F& G 8

. Circuity Marku p Aircraf t Typ e Aircraf t Cod e 9

. Direc t

Expenses

. Include s Fue l 1 0 i Les s Passenge r

Liability Insuranc e 1 1

. Linehau l Expens e Allocabl e t o Mai l 12

. Cos t

per Bloc k Hou r (R I I^R18 ) 1 3

. Marke dU

p Cost s (R1 1 *R4''R5*R8 ) 14

. Eligibl e Expense(R13*R32-=-R18 ) \ 5

. Cos t

pe r RT\ 1 (RM^R36 >

16a. 17 a "Trend " Percentag e of

Eligibl e Mai l RTM s Cost , Wtd

. b

y Mai l RTMs

. Include s Fuel (RI5*R16a ) "Actual " 16 b Percentag e of

Eligibl e Mai l RTM s 17 b

. Cost , Wtd

. b y Mai l RTMs , Include s Fuel (R15*RI6b )
Schedule d+ Nonschedule d 1 8

. Syste mBlk

. Hrs..T-lO O Segmen t 1 9

. Pax

. RTM s 2 0

. Freight

RTM s Wtd

. © 0.7 5 2 1 • Mai l RTM s 2 2

. Tota l RTM s 2 3

. Aircraf

t Mile s 24

. Availabl e To n Mile s (ATMs ) 2 5

. Departure s Performe d 2 6

. Wtd

. Depanure s (GTOW ) 2 7

. To n Load Facto r 2 8

. Stag e Lengt

h 2 9

. ATM s per

Mil e 3 0

. RTM s pe r

Mil e 3 1

. RTM s pe r

Hou r Eligibl y (Se e Appendi x E fo r basi s of calculation ) 3 2

. Bloc k

Hour s 3 3 Pax

. RT M 3 4

. Freight

RTM , Wtd

. @ .7 5 3 5 , Eligibl e Mai l RTM 3 6

. Tota l RT

M 3 7

. Aircraf

l Mile s 3 8

. AvailableTo n Mile s (ATMs ) 3 9

. Depanure s Performe d 4 0 Wld

. Depanure s (GTOW ) 4 1

. To n Load Facto r 4 2

. Avg

. Stag e Lengt h 4 3

. ATM s per

Mil e 4 4 RTM s per

Mil e 4 5 RTM s pe r

Hou r Gran t

107.76 % 109.46 %

106.34 % Navaj o 19 4 S4.168.54 4 $112,89 6 $4,055,64 8 $728.9 1 $5,087,09 6 $4,013,72 2 $10.793 8

2.919 % $0.315 1

2.37.3 % $0.256 1

5.56 4 372,63 7 7.75 8 64.34 0 444,73 5 964.28 9 867,86 4 10.10 7 74.79 2

. 51.24 % 9 5 0.9 0 0.4 6 79.9 3
4,39 0 301,44 9 7.04 3 6.3.36 1 371,85 3 756.30 0 680,67 4 7.98 7 59,10 4 54.63 % 9 5 0.9 0 0.4 9 84.7 0 Gran \

107.76 % 109.46 %

106.34 % Carava n 41 6 $6,217,26 2 $180,71 9 $6,036,54 3 $636.0 3 $7,571,78 0 $3,786,28 9 S I 1.536 6

6.047 % $0.697 6

4.917 % $0.567 3

9.49 1 484.01 6 1 1.49 2 133.41 0 628,91 8 1,231.71 6 1.724,40 2 18,42 7 164.00 0

• .16.47 % 6 7 1.4 0 0.5 1 66.2 6

4.74 6 187,51. 3 9.43 8 ni.24 8 328.19 9 617.05 2 863,87 3 9.38 6 83,5.3 5 37.99 % 6 6 1.4 0 0.5 3 69.1 5 • " Haeelan d

$2,264,32 3 $63,938,14 7 $12,294,72 3 103.06 % 109.46 % 1.067,30 9 1,009.92 2 105.68 % C-20 6 3 1 $6,162,24 3 $.352,86 7 $5,809,37 6 $243.4 9 $6,925,76 7 $5,412,83 3 S 14.947 4

5.013 % $0.749 3

4.076 % $0.609 3

23.85 9 307,29 4 13.25 2 108.80 8 429.35 4 1.836,09 9 1.038,89 9 38.93 6 144,06 3 41.33 % 4 7 0.5 7 0.2. 3 18.0 0

18.64 7 244,58 0 8,73 8 108.8D 8 362.12 6 1.413,54 4 795.35 7 31.40 3 116,19 1 45.53 % 4 5 0.5 6 0.2 6 19.4 2 Haaelan d

103.06 % 109.46 %

105.68 % Navaj o 19 4 $3,149,20 0 $118,01 8 $3,031,18 2 $562.8 9 $3,61.3,68 6 $3,194,27 0 $13.549 6

3.524 % $0.477 5

2.866 % $0.388 3

5,38 5 175.72 8 6,97 9 76.63 4 259,34 1 672,06 9 455.60 6 7,44 6 55.10 0 56.92 % 9 0 0.6 8 0.3 9 48.1 6
4,76 0 152.78 5 6,46 2 76.49 9 235.74 6 582.27 8 396.10 2 6,68 5 49.46 9 59.52 % 8 7 0.6 8 0.4 0 49.5 3 Attachmen t B Linehaul , Par

t 13 5

Hapelan d

103.06 % 109.46 %

105.68 % B-190 0 40 5 $2.239.1.3 2 $37,51 4 $2,201,61 8 $1,396.9 7 $2,624,70 4 $834,37 6 $13.400 4

2.078 % $0.278 5

1.689 % SO

. 2 26 3

1,57 6 9,72 8 49,43 4 195.52 8 254.69 0 311,89 2 586.41 4 1.34 7 22,63 0 43.43 % 23 2 1.8 8 0.8 2 161.6 1

50 1 9.25 2 7,91 2 45,10 1 62,26 5 86,26 0 153.32 1 65 8 1 1.05 4 40.61 % 13 1 1.7 8 0.7 2 124.2 8 Appendi xD- 1

Pag e 3 o f 5 Hapelan d

103.06 % 109.46 %

105.68 % Carava n 41 6 $15,202,12 7 $400,11 7 $14,802,01 0 $572.2 1 $17,646,52 0 $15,737,11 0 S I 0.445 8

25.709 % $2.685 5

20.904%

. $2.183 6

25,86 8 996,62 9 70.48 7 558.14 2 1,625.25 8 2,918,80 2 3,748,85 1 375.55 6 3.14,24 8 43.35 % 8 1.2 8 0 5 6 62.8 3
23,06 9 888.03 1 60.48 1 558.04 0 1.506.55 2 2,593.48 7 3.330,78 1 33,84 9 .101,25 6 45.23 % 7 7 1.2 8 0.5 8 65.3 19 -1 0 I I 1 2 1 3 1 4 1 3

I6i t !7 y

16 b 17 b

I S l y 2 0 

### 1 1 2 2 2 3 2 4 2- 5 2 6 2 7 2 8 2 9 3 0 3 1

3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 4 0 4 1 4 2 4 3 4 4 4 5 Syste mParameter s fo r Eac hCarrie r Capacit y Relate dExpens e (CR ) Direc t Expense , Include Fue l Indirec t Expens e CRMarku p Return an dTa

x Marku p T-lO O Mai l RTMs , Segment , F & G T-IOOMailRTMs , Mkt.

. F&G Circuit y Marku p Aircraf l Typ e Aircraf t Cod e Direc t Expenses

. Include s Fue l Les s Passenge r

Liability Insuranc e Linehau l Expens e Allocabl e t o Mai l Cos t pe r Bloc k Hou r (Rll+R I 8 ) Marke dU

p Cost s (R1 1 •'R4*R5*R8 ) Eligibl e Expens e (R13*R32+ R18 ) CosiperRT M (R14-^R36 ) "Trend " Percentag e of

Eligibl e Mai l RTM s Cost , Wld

. b

y Mai l RTMs

. Include s Fue l (RI5* R16a ) "Actual " Percentag e of

Eligibl e Mai l RTM s Cost , Wtd

. b

y Mai l RTMs

. Include s Fue l (R15*RI6b )
Schedule d+ Nonschedule d Syste mBlk

. Hrs. , T-10 0 Segmen t Pax

. RTM s Freigh t RTM s Wtd

. @ 0.7 5 Mai l RTM s Tota l RTM s Aircraf t Mile s Availabl e To n Mile s (ATMs ) Departure s Performe d Wtd

. Departure s (GTOW ) To n Loa d Facto r Stag e Lengt

h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r Eligibl e (Se e Appendi x E fo r basi s of calculation ) BloL' k Hour s Pax

. RT M Freight RTM , Wtd

. @ .7 5 EHgibl e Mai l RT

M Tota l RT

M Aircraf t Mile s AvailableTo n Mile s (ATMs ) Departure s Performe d Wtd

. Departure s (GTOW ) To n Loa dFacto r Avg

. Stag e Lengt

h ATM s pe r

Mil e RTM s pe r

Mil e RTM s pe r

Hou r Haeelan d

103.06 % 109.46 %

105.68 % C40 6 41 7 $5,183,70 6 5110.14 3 $5,073,56 3 $951.8 9 $6,048,55 2 $4.963,67 1 $14.943 6

5.906 % $0.882 6

4.802 % $0.717 6

5.33 0 259,58 5 9,28 3 128.19 6 397.06 4 812.84 1 1.195,97 7 7,89 8 78,19 0 33.20 % 103 1.4 7 0 4 9 74.5 0
4,37 4 195.16 9 8,80 6 128.18 6 332.16 1 653.92 9 963,22 2 6,40 4 63.40 0 34.48 % 10 2 1.47 0.5 1 75.9 4 PenAi r

$6,301,70 5 $97,788,03 6 $21,300,12 4 105.59 % 109.46 % 2,088.41 0 1,915.42 9 109.03 % PA-3 2 7 9 $2,475,22 9 S 138.40 ) $2,336,82 8 $470.9 4 $2,944,76 7 $2,601,15 2 $24.583 2

1.490 % $0.366 3

1.211 % $0.297 7

4.96 2 76,26 6 7,09 3 3 ? 54 8 115.90 7 529.48 3 289,36 2 12.22 0 43,99 2 40.06 % 4 3 0.5 5 0.2 2 23..3 6
4,38 3 66.86 9 6,60 3 .32.33 8 105.81 0 466.91 2 255,16 7 11,20 1 40.32 4 41.47 % 4 2 0.5 5 0.2 3 24.1 4 PenAi r

105.59 % 109.46 %

109.03 % Carava n 41 6 $3,920,64 2 $1.35.39 2 $3,785,25 0 $937.6 4 $4,770,00 5 $4,266,65 5 $13.236 5

5.679 % $0.751 7

4.618 % $0.611 3

4.03 7 200.35 9 2 2..10 2 123.44 7 .346.10 8 535.82 0 964,25 0 7,25 5 64.57 0 35.89 % 7 4 1.8 0 0.6 5 85.7 3
3,61 1 178.65 8 20.41 6 17126 6 3 22,.34 0 478.96 3 860.58 1 6,69 6 59,59 4 37.46 % 7 2 1.8 0 0.6 7 89.2 7 Warbelo w

$781,56 3 $17,041,16 6 $2,207,31 8 104.2.3 % 109.46 % 157,86 8 141,59 8 111.49 % Navaj o 19 4 $5,410,15 5 $90.46 S $5,319,68 7 $460.1 0 $6,766,59 5 $6.491.5.1 0 $9.759 5

4.394 % $0.428 8

3.571 % $0.348 7

11.56 2 550,17 7 35.58 3 95,38 ^ 681.14 2 1.657,55 5 1,388,18 4 13.07 6 96.76 2 49.07 % 12 7 0.8 4 0.4 1 58.9 1

11.09 2 535.30 4 34.46 1 95.38 2 665.14 7 1,596.01 3 1.338,27 0 12,63 6 93,50 6 49.70 % 12 6 0.8 4 0.4 2 ,59.9 7 Attachmen t B

Linehaul , Pa n 13 5

Warbelo w

104.23 % 109.46 %

1 11.49 % B-190 0 40 5 $1,397,09 3 $26,02 4 $1.-371.06 9 $1,121.0 7 $1,743,98 8 $1,481,60 6 $10.423 1

1.654 % $0.172 4

l..345% | $0.1402 |

1,22 3 114.36 0 13.90 1 35.89 8 164,15 9 222,86 8 401,09 3 1.45 7 24,47 8 40.93 % 15 3 J.8 0 0.7 4 134.2 3

1.03 9 92.98 7 13,26 2 35,89 8 142.14 7 185.46 3 334,03 0 1.28 9 21.65 5 42.56 % 14 4 1.8 0 0.7 7 136.8 1 Appendi xD- 1

Pag e 4 o f 5 Warbelo w

104.23 % 109.46 %

1 1 1.49 % Carava n 41 6 $894,22 9 S I 1.70 0 $882,52 9 $618.0 2 $1,122,56 9 $1,072,25 8 $10.452 0

1.049 % $0.109 6

^ ^ H


### ^ ^ "

1,42 8 75,67 7 7.69 8 2^,76 3 106.13 8 204.84 4 240,27 0 1.53 0 13.61 7 44.17 % 13 4 

### i. n 0.5 2 74.3 3

1.36 4 73.15 6 6.67 0 2 ? 76 3 102,58 9 195,34 5 228.26 5 1,46 5 13.03 9 44.94 % 13 3 1.1 7 0.5 3 75.2 19

.

10

. 1 1

. 1 2

. 1 3

. 1 4

. 1 5

.
16 a 17 a Syste mParameter s fo r Eac hCame r Capacit y Relate dExpens e (CR ) Direc t Expense , Includ e Fue l Indirec t Expens e CRMarku p Retur n an dTa

x Marku p T-10 0 Mai l RTMs

. Segment , F& G T-IO O Mai l RTMs , Mkt.

. F& G Circuit y Marku p Aircraf t Typ e Aircraf t Cod e Direc t Expenses , Include s Fue l Les s Passenge r

Liability Insuranc e Linehau l Expens e Allocabl e t o Mai l Cos t pe r Bloc k Hou r (Rll+R I 8 ) Marke dUp Cost s (R I I *R4*R5*R8 ) Eligibl e Expens e (R13*R32-f- R18 ) CosiperRT M (R14+R36 ) "Trend " Percentag e of

Eligibl e Mai l RTM s Cost , Wtd

. b

y Mai l RTMs

. Include s Fue l (RI5'R16a ) "Actual " 16 b Percentag e o f

Eligibl e Mai l RTM s 17 b

. Cost

. Wtd

. b

y Mai l RTMs , Include s Fue l (R15*RI6b )
Schedule d+ Nonschedule d 1 8 1 9 2 0 

### 2 i 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1

3 2

. 3 3 3 4

. 3 5

. 3 6

. 3 7

. 3 8

. 3 9

. 4 0 4 1

. 4 2

. 4 1

. 4 4 4 5 Syste m Blk

. Hrs. , T-IO O Segmen t Pax

. RTM s Freigh t RTM s Wtd

. @ 0.7 5 Mqi l RTM s Tota l RTM s Aircraf l Mile s AvailableTo n Mile s (ATMs ) Departure s Performe d Wtd

. Departure s (GTOW ) To n Loa d Facto r Stag e Lengt h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r Eligibl e (Se e Appendi xE Fo rbasi s o f calculation ) Bloc k Hour s Pax

. RT M Freigh t RTM , Wtd

. @ .7 5 Elipibl e Mai l RT M Tota l RT M Aircraf t Mile s AvailableTo n Mile s (ATMs ) Departure s Performe d Wtd

. Departure s (GTOW ) To n Loa d Facto r Avg

. Stag e Lengi h ATM s pe rMil e RTM s pe rMil e RTM s pe rHou r Wine s $2,182,56 0 $24,121,55 2 $5,805,23 4 107.87 % 109.46 % 38.22 3 37.31 1 102.44 % C-20 8 41 6 $1,921,86 3 $21,42 5 $1,900,43 8 $610.0 9 $2,298,68 5 $2,151,09 7 $10.385 2

1.323 % $0.137 4

1.075 % $0.111 6

3.11 5 170.54 1 16.25 2 28,98 3 215.77 6 376,64 1 564,96 2 6,28 2 55.91 0 38.19 % 6 0 1.5 0 0.5 7 69.2 7
2,91 5 163.96 1 14.46 1 28.71 0 207,13 2 354.99 8 532,49 7 5,83 6 51,94 0 38.90 % 6 1 1.5 0 0.5 8 71.0 6 Attachmen t B

Linehaul , Par

t 135

Wriph t $757,42 6 $12,.553.94 0 $2,111,52 5 105.45 % 109.46 % 126.18 8 116.39 7 108.41 % Carava n 41 6 $4,422,50 5 $133,86 3 $4,288,64 2 $441.9 9 $5,366,50 0 $4,583,89 7 $6.644 1

5.654 % $0.375 7

4.597 % $0.305 4

9,70 3 493.23 5 159.08 1 123.09 0 775.40 6 1.436,61 5 2.155.12 2 10,38 9 92.46 2 35.98 % 13 8 1.5 0 0.5 4 79.9 1

8.28 8 453,91 7 1.13,284 122.71 8 689.91 9 1,221.60 8 1.832,61 1 9.22 5 82.10 2 37.65 % 13 2 1.5 0 0.5 6 83.2 4 Appendi xD- l

Pag e 5 o f 5 Yut e $452,09 4 $8,199,90 0 $1,667,87 3 104.80 % 109.46 % 83.37 4 78.47 1 106.25 % C-20 6 3 5 $4,099,95 0 S I 20.74 9 $1,979,20 1 $299.5 3 $4,849,99 8 $4,450,97 3 $14.310 8

3.841 % $0.549 7

1.1237 c $0.446 9

13,28 5 219,83 6 22.14 5 83.37 4 32 5 ..35 5 1,243.08 2 734.42 4 33.20 1 122.84 4 44..30 % 3 7 0.5 9 0.2 6 24.4 9

12.19 2 206,61 5 21,03 2 83,37 4 311.02 1 1,149,75 3 683.03 7 30.29 5 112.09 2 45.54 % 3 8 0.5 9 0.2 7 25.5 1Attachmen t B Linehaul , Part

13 5 Appendi x D- 2 Pag e I o f 5

Yea r Ende dJun e 30

. 2010 , Fue l Expens e

1 2 3 4 5 6 7 8 9 1 0 1 1

.

12 a 1.3 a

12 b 13 b

. Carrie r Aircraf t Cod e Schedule d + Nonschedule d Tota l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour^ Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M

"Trend " Mai l RTM s Percentag e Cost/RTM

. Wtd

. B yMai l RTM s

"Actual " Mai l RTM s Percentag e Cost/RTM

. Wtd

. B yMai l RTM s "Actual " Tota l 1 /

2.669,52 8



### ^^^ ^ 

# ^^^^^^ H

100.00 % 

## iz.m z PenAi r Metr o 467- 1 5)74,72 8 55,62 0 61 3 44 8 29.76 7 70.99 3 $3.1 4 90. 7 $285.0 4 $127,69 7 $1.798 7 

# ^^^^1

1.12 % $0.020 1 PenAi r Metr o 467- 2 5815.7) 8 260.35 7 2.92 0 2.66 9 491.92 7 634.35 0 $3.1 3 89. 2 $279.3 6 $745,60 0 $1.175 4 

# ^^^1

18.43 % $0.216 6 "Trend " Tota l 1 /

2.170,59 7

100.00 % 

### $J.176f i Ar

. Circl e

SD-33 0 48 7 $.341,67 4 134.50 1 78 6 71 6 47.01 9 116.16 6 $2.5 4 171. 1 $434.7 0 $311,24 5 $2.679 3

2.166 % $0.058 0

1.76 % $0.047 2
1/ "Actual " Tola ! exclude s Warbelow s Carava n aircraft ; Tren dTota l exclude s PenAir' s Metr o aircraft

.
Q EJun e 30 , 2010

. pe r Orde r 2010-9-2 4

Aircraf t Nam e Aircrnf i Cod e 1

. Tota l Fue l Expens e 2

. Tola l Gallon s Issue d 3

. Tota l Bloc k

Hour s 4 Eligibl e Bloc k

Hour s 5

. Eligibl e Mai l RTM s 6

. Toia l Eligibl e RTM s 7

. f^c e per

Gallo n 8

. Bu mpe r

Hou r 9

. Cost ? pe r

Bloc k Hour 1 0 Eligibl e Fue l Expens e 1 1

. Cos t pe r Eligibl e RTM 1 2 Mai l RTM s Percentag e 1 3

. $/RTM , Wtd

. B y Mai l RTM s Total s
$7,052,40 7 1,442.23 5 39,93 2 33,27 8 525,23 5 1.821.72 9 $4.8 9 36 $176.6 1 $5,802,21 0 $3.185 0 100.002 % Ar

. Circl e SD-3.3 0 48 7 $85,98 3 34.14 7 20 1 17 8 9.42 6 27.41 7 $2.5 2 17 0 $427.7 8 $76,14 4 $2.777 3 1.795 % $0.049 9Attachmen t B Linehaul , Par

t 13 5 Appendi x D- 2 Pag e 2 of 5

Year Ende dJun e 30

. 2010

. Fue l Expens e

1 2 3 4 5 6 7 8 9 1 0 1 1

.

12 a 13a
.

12 b 1.3 b

. Carrie r Aircraf t Cod e Schedule d + Nonschedule d Tota l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour s Eligibl e Bloc k

Hour s Eligibl e .Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M

"Tren d " Mai l RTM s Percentag e Cost/RTM

. Wtd

. B yMai l RTM s

"Actual " Mai l RTM s Percentag e Cosi/RTM , Wtd

. B yMai l RTM s Berin g Navaj o 19 4 $1,089,27 1 185,28 9 4.29 6 2.87 0 43,06 7 183,68 8 $5.8 8 43. 1 $253.5 5 $727,70 2 $3.961 6

1.984 % $0.078 6

1.61 % $0.063 8 Berin g

B-190 0 40 5 $1,090,04 7 221,12 9 1,51 4 91 1 73,84 7 167,61 3 $4.9 3 146. 1 $719.9 8 $655,90 0 $3.913 2

3.402 % $0.133 1

2.77 % $0.108 4 Berin g

Casa2l 2 41 2 $346,00 2 70,24 4 53 7 28 4 .35.00 8 43.56 0 $4.9 3 130. 8 $644.3 2 $182,98 8 $4.200 8

1.613 % $ 0 067 8

1.31 % $0.055 0 Berin g

Carava n 41 6 $2,167,64 8 442,53 7 7.93 4 6.76 2 204.87 9 557,62 2 $4.9 0 55. 8 $273.2 1 $1,847,44 6 $3.313 1

9.439 % $0.312 7

7.67 % $0.254 1 Frontie r

Navaj o 19 4 $292,18 4 70.87 2 1.48 6 1,37 3 30,14 5 80.88 6 $4.1 2 47. 7 $196.6 2 $269,96 5 $3.337 6

1.189 % $0.046 4

1.13 % $0.037 7 Gran t

C-20 6 3 5 $1,180,63 9 219.23 2 I0,.37 5 8,74 0 80.94 0 259.95 0 $5.3 9 21. 1 $113.8 0 $994,58 2 $3.826 1

3.729 % $0.142 7

3.03 % $0.115 9

QuanerEndedJune.lO , 2010

. pe r Orde r 2010- 9 2 4

1

. 2

. 3

. 4 5

. 6

. 7

. 8

. 9

. 1 0 I I

. 1 2 1 3

. Aircraf l Nam e Aircraf t Co^l e Tota l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour s Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M Mai l RTM s Percentag e $/RTM

. Wtd

. B yMai l RTM s Berin g Navaj o 19 4 %309.9i 3 52,09 7 1,23 1 82 1 12.91 4 52,55 0 $5.9 5 4 2 $251.7 6 $206,69 3 $3.933 3 2.459 % $0.096 7 Berin g

B-190 0 40 5 $202,87 5 46.95 5 33 8 23 8 18.77 5 4.3,79 4 $4.3 2 1.3 9 $600.2 2 $142,85 3 $3.261 9 3.575 % $0.116 6 Berin g

Casa21 2 41 2 $83,03 9 19.21 9 15 3 6 3 7.19 0 8,581 $4.3 2 12 6 S542.7 4 $14,19 3 $3.984 7 1.369 % $0.054 6 Benn p

Carava n 41 6 $454,67 8 105.23 5 2,02 6 1,72 9 52,73 0 143.27 5 $4..3 2 5 2 $224.4 2 $388,02 5 $2.708 3 10.039 % $0.271 9 Frontie r

Navaj o 19 4 $3,89 6 1.18 8 2 1 7 11 1 35 1 $3.2 8 5 7 $185.5 2 $1,29 9 $3.700 9 0.02 1 % $0.000 8 Gran t

C20 6 3 5 $3.30.11 5 65,06 9 2,9.3 0 2.38 5 19.17 4 71.27 7 $5.0 7 2 2 $112.6 7 $268,71 1 $3.770 0 3.651 % $0.137 6Attachmen t B Linehaul , Par

t 13 5 Appendi x D- 2 Pag e 3 of 5

Yea r Ende dJun e 30 , 2010

. Fuel Expens e

1 2 3 4 5 6 7 8 9 1 0 I I

12 a 13a
.

12 b 13 b

. Carrie r Aircraf t Cod e Schedule d + Nonschedule d Tota l Fue l Expens e Tota l Gallon s Issue d Toia l Bloc k

HOU R Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M

"Trend " Mai l RTM s Perceniag e Cost/RTM , Wtd

. B yMai l RTM s

"Actual " Mai l RTM s Percentag e Cost/RTM , Wld

. B yMai l RTM s Gran t Navaj o 19 4 $1,702,46 3 309.52 9 5.56 4 4,39 0 63,36 1 371.85 3 $5.5 0 55. 6 $305.9 8 $1,343,24 5 $3.612 3

2.919 % $0.105 4

2..37 % $0.085 6 Gran t

Carava n 41 6 $2,185,00 9 390.54 7 9.49 1 4.74 6 131.24 8 328,19 9 $5.5 9 41. 1 $230.2 2 $1,092,62 0 $3.329 1

6.047 % $0.201 3

4.92 % $ 0 163 8 Hagelan d

C-20 6 3 5 $1,647,69 6 295.75 4 23.85 9 18.64 7 108.80 8 .362,12 6 $5.5 7 12. 4 $69.0 6 $1,287,75 7 $3.556 1

5.013 % $0.178 3

4.08 % $0.145 1 Hagelan d

Navaj o 19 4 $978.73 1 176.95 2 5.38 5 4,76 0 76,49 9 235,74 6 $5.5 3 12. 9 $181.7 5 $865,13 6 $3.669 8

3.524 % $0.129 3

2.87 % $0.105 3 Hagelan d

B-190 0 4.0 5 $500,25 5 151.12 2 1.57 6 50 1 45,10 1 62,26 5 $3.3 1 95. 9 $317.4 2 $159,02 8 $2.554 1

2.078 % $0.053 1

1.69 % $0.043 2 Hagelan d

Carava n 41 6 $5,440,82 4 1.040.53 4 25.86 8 23.06 9 558.04 0 1.506.55 1 $5.2 3 40. 2 $210.3 3 $4,852,11 0 $ 3 220 7

2 5 709 % $0.828 0

20.90 % $0.673 1

Quarter Ende dJun e 30 , 2010

. pe r Orde r 201 0 9-2 4

3

. 4 5

. 6

. 7

. 8

. 9

. 1 0 I I

. 1 2 1 3

. Aircraf t Nam e Aircraf t Cod e Tota l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour s Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M Mai l RTM s Percentag e S/RTM

. Wld

. B yMai l RTM s Gran t Navaj o 19 4 $494,47 6 79,73 9 1,.169 1.04 9 14.76 0 85.09 3 $6.2 0 5 8 $.361.2 0 $378,89 4 $4.452 7 2.810 % SO

. 125 1 Gran t

Carava n 41 6 $564,12 0 85.79 7 2.34 8 1,52 1 28.36 8 95,02 6 .$6.5 8 3 7 $240.2 6 $365,42 9 $3.845 6 5.401 % ,$0.207 7 Hagelan d

C-20 6 3 5 .$489,69 2 78,90 0 6.42 9 5.12 8 27.79 2 99,69 8 $6.2 1 1 2 $76

. J 7 $390,59 6 $3.917 8 5.291 % $0.207 3 Hagelan d

Navaj o 19 4 $293,97 7 49,16 0 1.47 4 1.26 9 21.31 1 61.81 9 $5.9 8 3 3 $199.4 4 $253,09 1 .$4.094 1 4.057 % SO

. 166 1 Hagelan d

B-190 0 40 5 Hagelan d

Carava n 41 6 $1,641,79 6 274,32 9 7.15 5 6.47 3 149.67 2 419,75 9 $5.9 8 3 8 $229.4 6 $1,485,30 3 $3.538 5 28.496 % % 1.008 3Attachmen t B Linehaul , Part 135 Appendi xD- 2 Pag e 4 o f 5

Yea rEnde d Jun e 30 , 2010 , Fue l Expens e

1 t 3 4 5 6 7 8 9 i O 1 1

12 a 1.1 a
.

12 b 13 b Carrie r Aircraf t Cod e Schedule d + Nonschmlule^ l Tota l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour s Eligibl e Bloc k

Hour ^ Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M

"Trend " Mai l RTM s Percentag e Cosl/RTM , Wtd

. B yMai l RTM s

"Actual " Mai l RTM s Percentag e Cost/RTM

. Wtd

. B yMai l RTM s Hagelan d C-40 6 41 7 $1,794,53 9 380,52 4 5,33 0 4.37 4 128,18 6 3.32,16 2 $4.7 2 71. 4 $336.6 9 $1,472,66 7 $4.433 6

5.906 % $0.261 8

4.80 % $0.212 8 PenAi r

PA-3 2 7 9 $464,51 4 87.79 2 4.96 2 4,38 3 32.33 8 105.80 9 $5.2 9 17. 7 $93.6 1 S410.31 1 $3.877 8

1.490 % $0.057 8

1.21 % $0.046 9 PenAi r

Carava n 41 6 $824,74 5 222.55 5 4,03 7 3.61 1 123,26 6 322.34 0 $3.7 1 55. 1 $204.3 0 S7.17.71 5 $2.288 6

5.679 % $0.1.30 0

4.62 % $0.105 7 Warbelo w

Navaj o -194 $1,705,94 7 448.76 3 1 1,56 2 11.0'> 2 95.38 2 665.14 6 $3.8 0 38. 8 $147.5 5 $).6.36.60 0 $2.460 5

4.394 % $0.108 1

3.57 % $0.087 8 Warbelo w

B-190 0 40 5 $319,76 7 115.70 0 1.22 3 1.0.1 9 35.89 8 142.14 7 $2.7 6 94. 6 $261.4 6 $271,65 8 $1.911 1

1.654 % $0.031 6

I..14% H 

### $0.0256 1 Warbelo w

Carava n 41 6 $200,22 4 72.28 2 1.42 8 1,36 4 22.76 3 102.58 8 $2.7 7 50, 6 $140.2 1 $191,25 0 $1.864 3

1.049 % $0.019 6


# ••^• i 

# I^HI I

Quarte rEnde d Jun e 30 , 2010 , pe rOrde r2010-9-2 4

1 T 3 4 5 6 7 8

. 9 1 0 1 1

. 1 2 1 3

. Aircraf l Nam e Aircraf t Cod e Tota l Fue l Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour ^ Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cost s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M Mai l RTM s Percentag e $/RTM

. Wtd

. B vMai l RTM s Hqgel,in d C-40 6 41 7 $397,24 7 83.56 8 1.24 0 1,06 5 31.12 9 80.50 7 $4.7 5 6 7 $320.3 6 $341,18 4 $4.237 9 5.927 % $0.251 2 PenAi r

PA.3 2 7 9 $1.30,92 0 24.82 5 1.37 8 1.17 9 8,49 8 27,72 6 $5.2 7 1 8 $95.0 1 $112,01 4 $4.040 0 1.618 % $0.065 4 PenAi r

Carava n 41 6 $243,55 6 70.58 6 1.26 1 1.10 7 33,87 6 96,61 9 $3.4 5 5 6 $193.1 5 $213,81 2 $2.212 9 6.450 % $0.142 7 Warbelo w

Navaj o 19 4 $461,99 8 119.80 7 2.97 4 2.72 7 22.59 3 163,83 1 $3.8 6 4 0 $155.3 5 $423,62 8 $2.585 8 4.3027 P $0. 1 I L 2 Warbelo w

B-190 0 4Q5 $91,1.3 9 29,20 0 30 5 18 9 7,35 2 27.37 3 $3.1 2 9 6 $298.8 2 $56,47 6 $2.063 2 1.400 % $0.028 9YearEndw J Jun e 30

. 2010 , Fue l Expens e

1 2 3 4 5 6 7 8 9

. 1 0 1 1

12 a 13 a
.

12 b 13 b

. Carrie r Aircraf t Cod e Schedule d + Nonschedule d Tota l Fue l Expens e Tota l Gallon s Issue d Toia l Bloc k

Hour s Eligibl e Bloc k

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe rGallo n Bu m pe rHou r Cosi s pe rBloc k

Hou r Eligibl e Fue l Expens e Cos t pe rEligibl e RT M

"Trend " Mai l RTM s Percentag e COSI/RTM , W|d

. B yMai l RTM s

"Actual " Mai l RTM s Percentag e Cosi/RTM

. Wld

. B yMai l RTM s Wing s C-20 8 41 6 $364,41 9 1,39.01 9 3,11 5 2,91 5 28.71 0 207.13 2 $2.6 2 44. 6 $116.9 9 $341,02 1 $1.646 4

1.323 % $0.021 8

1.08 % $0.017 8 Wrigh i

Carava n 41 6 $1,231,64 3 491,80 0 9,70 3 8,28 8 122.71 8 689,91 9 $2.5 0 50. 7 $126.9 3 $1,052,03 1 $1.524 9

5.654 % $0.086 2

4.60%

. $0.070 1 Yut e

C-20 6 3 5 $1,103,19 4 176,87 2 13,28 5 12,19 2 83.37 4 311,02 1 $6.2 4 13. 3 583.0 4 $1,012,43 1 $3.255 2

3.841 % $0.125 0

3.12 % $0.101 6

Quarte r Ende dJun e 30 , 2010 , pe r Orde r 2010-9-2 4

I

. 2 3

. 4 5

. 6

. 7

. 8

. 9

. 1 0 I I

. 1 2 1 3 , Aircraf

t Nam e Aircraf t Cod e Tota l Fuel Expens e Tota l Gallon s Issue d Tota l Bloc k

Hour s Eligibl e Block

Hour s Eligibl e Mai l RTM s Tota l Eligibl e RTM s Pric e pe r Gallo n Bu mpe r Hou r Cost s pe r Bloc k Hou r Eligibl e Fue l Expens e Cos t pe r Eligibl e RTM Mai ) RTM s Perceniag e $/RTM , Wtd

. B y Mai l RTM s Win^ s C-20 8 41 6 $135,44 6 44.89 6 98 5 91 1 5,90 9 64,26 2 $3.0 2 4 6 $137.5 1 $125,27 0 $1.949 4 l.)25 % $0.021 9 Wrich i

Carava n 41 6 $353,21 7 131,75 0 2.59 6 2.08 5 30,00 0 174,28 0 $2.6 8 5 1 $1.36.0 6 $283,68 9 $1.627 8 5.712 % $0.093 0 >'ul e

C-20 7 3 5 $284,32 4 45.76 8 3.51 8 3,15 4 23,65 5 78,49 1 $6.2 1 1 3 $80.8 2 $254,90 6 $3.247 6 4.504 % $0.146 3 Attachmen t B Linehaul , Par

t 13 5 Appendi, * D-2 Pag e 5 o f 5Aliachmen t B Linehaul , Par

t 13 5 Appendi x E Determinatio nof

Whic hCarrier s Ar

e Include di

n th e Par t 13 5 Eligibl e Mai l RTMs.Y E6-30-1 0 (7arrier Hagelan d PenAi r Berin g (jran i f^agcland Wrigh t PenAi r Hagelan d Warbelo w Vute tjran t Hagelan d Berin g Ora m Ar

. Circl e flagelan d Berin g Warbelo w Berin g PenAir Frontie r PenAi r Wing s Warbelo w Berin g Tatondu k Tatondu k Ar

. Circl e Wing s llianui a Berin g Warbelo w \Vrigh t Tanan a Islan dAir f^nAi r Islan dAi r Elli s Servan t Home r 40-Mil e Smoke y Ba

y Servan t Servan t Spcma k Hiamna Tanan a Wrigh t Hiamna Wngh t Hiamn a Elli s Ora m Warbelo w Wrigh t Tata i A/C Tvp e 41 6 467- 2 41 6 41 6 4) 7 41 6 41 6 3 5 194 3 5 3 5 19 4 40 5 194 48 7 40 5 19 4 40 5 41 2 7 9 19 4 467- 1 41 6 41 6 40 6 41 6 7 9 125 3 5 3 5 3 5 3 5 19 4 7 9 13 1 47 8 7 9 3 5 3 5 3 5 3 5 3 5 13 1 7 9 3 5 47 9 19 5 3 5 194 1 0 1 0 19 4 40 6 47 6 3 4 Mai l RTM s

558.04 0 491,92 7 204,87 9 131.24 8 128.18 6 122,71 8 123,26 6 108.80 8 95.38 2 83,37 4 80.94 0 76,49 9 73,84 7 63.36 1 47.01 9 45,10 1 43.06 7 .35.89 8 35,00 8 32,33 8 30.14 5 29,76 7 28,71 0 22,76 3 14.1.3 5 12.49 7 8,49 9 8,24 1 7.12 9 5.83 9 3.97 2 3.82 5 3,40 4 3.28 4 3.07 2 2.00 6 1,47 8 ],25 5 1,225 1.025 99 2 87 9 68 2 39 6 39 1 17 1 14 9 4 6 2 3 1 9 1 6 4 0 0 0 2,776,9-1 5 Percen t 20.10 % 17.71 % 7.38 % 4.73%

. 4.62 % 4.42 % 4.44 % 3.92 % 3.43 % 3.00 % 2.91 % 2.75 % 2.66 % 2.28 % 1.69 % 1.62 % 1.55 % 1.29 % 1.26 % 1.16 % 1.09 % 1.07 % 1.03% 0.82 % 0.51 % 0.45 % 0.31 % 0.30 % 0.26 % 0.21 % 0.14 % 0.14 % 0.12 % 0.12 % 0.11 % 0.07 % 0.05 % 0.05 % 0.04 % 0.04 % 0.04 % 0.03 % 0.02 % 0.01 % 0.01 % 0.01 % 0.01 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % 0.00 % Cumulativ e

Percen t 20.10 % 37.81 % 45.19 % 49.92 % 54.54 % 58.96 % 63.40 % 67.32 % 70.75 % 73.75 % 76.66 % 79.41 % 82.07 % 84.35 % 86.04 % 87.66 % 89.21 % 90.50 % 91.76 % 92.92 % 94.01 % 95.08 % 96.11 % 96.9.^ % 97.44 % 97.89 % 9 8 20 % 98.50 % 98.76 % 98.97 % 99.11 % 99.25 % 99.37 % 99.49 % 99.60 % 99.67 % 99.72 % 99.77%

. 99.81 % 99.85 % 99,89 % 99.92 % 99.94 % 99.95 % 99.96 % 99.97 % 99.98 % 99.98 % 99.98 % 99.98 % 99.98 % 99.98 % 99.98 % 99.98 % 99.98 %

Note : .'Vi r £xcur.sion. s evrluded , onl y 6 month s o S data

. Note : Warbelow' s #41 6 i s "o nth e bubble, " i.e. , i t i s include dfo r

purpose s o f

calculatin g th e trend'line , bu t

exclude dFor

purpose s o f

determinin g thi s year' s costs
.

### Attachmen t B Linehau l Appendi xF
Determinatio n o f Segment s Ineligibl e fo rCalculatin g Bus h Rates , ScheduletJ Intra-Alask a Departure s performe d wit h Mainlin e Equipmen t T-lO O Segmen t Report , Q E 6-30-10 , Seve n o rMor e Departure s Performe d

T51 0 T51 0 Deps

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