Order 2010-3-4 

Served: March 4, 2010 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

'*'^?^5P'' WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 4'*'of March, 2010 

INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES Dockets OST-2003-14695 

Mainline Quarterly Fuel Adjustment 

Summary 

By this order, the Department is making its regular quarterly adjustments to Intra-Alaska 

Mainline mail rates to reflect the most recent quarterly fuel costs. The new rates are to 

be effective on April 3,2010, and reflect fuel expenses for the quarter ended 

December 31, 2009. 

Background 

Order 2009-9-1 tentatively established final annual Intra-Alaska mainline mail rates. After 

no objections were received, Order 2009-9-14 finalized those annual rates, and also updated 

the annual rates in the show-cause order to reflect fuel expenses for the quarter ended 

June 30, 2009, the most recent fuel expenses available at that time. We have indicated that 

we will continue to make regular quarterly fuel updates. Since then, we issued 

Order 2009-12-14 which updated those rates for fuel expenses reported for the quarter 

ended September 30, 2009. 

This order is updating the rates in Order 2009-12-14 to reflect fuel costs for the quarter 

ended December 31, 2009, the most recent data available. The next quarterly fuel update, 

based on data for the quarter ended March 31, 2010, will be effective on or about July 1, 

2010. The terminal portion of the mail rate is unchanged from that in Order 2009-12-14, 

but we have included those numbers for the sake of convenience. 

The table below shows the current and new linehaul rates. 
Pavment Parameter 

Linehaul, $/RTM 

Linehaul, $/RTM 

Terminal, $/Lb. Enplaned 

Terminal, $/Lb. Enplaned 

Service 

Class 

Priority 

Nonpriority 

Priority 

Nonpriority 

Current Rates, 

Order 2009-12-14 

$2.8982 

$1.7545 

$0.3620 

$0.3110 

Update for 

OE 12-31-09 Fuel 

$2.9635 

$1.7941 

$0.3620 

$0.3110 

Percentage 

Change 

2.25% 

2.26% 

0% 

0% 

ACCORDINGLY, 

1. We make final the rates set forth in Appendix A, effective April 3, 2010, until further 

Department action; 

2. This docket shall remain open until further order of the Department; and 

3. We will serve this order upon all parties on the Service List for these Dockets. 

Persons entitled to petition the Department for review of this order under the Department's 

Regulations, 14 CFR 385.30, must file such petitions within ten (ten) days after the date of 

service of this order. The filing of a petition for review shall not stay its effectiveness. 

By: 

TODD M. HOMAN 

Director 

Office of Aviation Analysis 

(SEAL) 

An electronic version of this document is available on the World Wide Web at 

http .-//www.regulations. gov 
Appendix A 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES 

(1) (2) (3) (4) (5) 

Priority 

Non-priority 

Base Year 

Rates 1/ 

$1.1969 

$0.7246 

Adjustment Proposed 

Factors 2/ Final Rates 3/ Current Rate 4/ 

Linehaul Charge per Billing Ton-Mile 

147.60% $2.9635 $2.8982 

147.60% $1.7941 $1.7545 

Change from 

Current Rate 5/ 

2.25% 

2.26% 

Terminal Charge per Pound Originated 

Priority $0.1697 113.31% $.3620 $.3620 

Non-priority $0.1458 113.31% $.3110 $.3110 

1/Per Order 82-11-23 

2/ See Appendix B of this order for the linehaul. The terminal charge, per Order 2009-9-1, does not change, 

but is included for convenient reference. 

3/ Column (1) increased by Column (2). 

4/Per Order 2009-12-14 

5/ Any differences between priority and nonpriority elements are due to rounding. 

0.00% 

0.00% 
DOT-OST-2007-0022-0266.1 Appendix B 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES COST ADJUSTMENT FACTORS 

Unit Cost per Available Ton-Mile 

Fuel 1/ 

Nonfuel 11 

Total 

Base Year 

Ended 

9/30/80 

$0.399469 3/ 

Unit Costs 

Based on 

OE 9-30-09 

$0.36769 

$0.59959 

$0.96728 

Unit Costs 

Based on 

OE 12-31-09 

$0.38948 

$0.59959 

$0.98907 

Percentage Change from Base Year 142.14% 4/ 147.60% 5/ 

1/ Appendix C of this order for QE 12-31 -09 result, and 

Appendix C of Order 2009-12-14 for QE 9-30-09 result. 

2/ Appendix B of Order 2009-9-1. 

3/ Order 82-11-23, updated most recently in Order 97-12-24. 

4/ ($0.96728/$0.399469)-l. 

5/ ($0.98907/$0.399469)-l. 
Appendix C 

Intra-Alaska Mainline Mail Costs ~ Quarter Ended December 31, 2009 

Alaska 

Airlines 

AS 

Lynden 

Air 

LAC 

Northern 

Air Cargo 

NAC 

Everts Air Cargo 

EAC 

Grand 

Total 

#617 

737-400 

#556 

Hercules 

#620 

B-737-200 

#150 

C-46 

#218 

DC-6 

#461 

Brasilia 

Fuel 1/ $41,874,273 $35,110,062 $1,181,029 $2,650,594 $105,045 $2,702,766 $124,777 

Intra-AK Skd. Blk. Hrs. 2/ 

Total Block Hours 2/ 

9,735 

26,209 

6,198 

21,914 

427 

781 

1,256 

1,363 

152 

167 

1,420 

1,680 

282 

304 

Intra-AK Fuel Expense $15,514,342 $9,930,280 $645,710 $2,442,514 $95,610 $2,284,481 $115,747 

Intra-AK Skd. ATMs 11 

Unit Cost/ATM, Fuel 

Intra-AK Mail RTMs 2/ 

RTM Percent of Total 

Wtd. Cost/ATM, Fuel 

45,250,479 

$0.342855 

5,838,723 

100.00% 

$0.38948 

31,747,760 

$0.312787 

1,624,620 

27.82% 

$0.08702 

2,696,790 

$0.239437 

1,013,763 

17.36% 

$0.04157 

6,181,600 

$0.395127 

1,401,881 

24.01% 

$0.09487 

155,418 

$0.615180 

46,669 

0.80% 

$0.00492 

4,233,791 

$0.539583 

1,655,876 

28.36% 

$0.15303 

235,120 

$0.492289 

95,914 

1.64% 

$0.00807 

1/ Per Form 41 reports, except for Lynden, whose fuel expense is from a special internal report of Lynden. 

II Per the T-lOO Segment report and carrier submissions. Northern Air, Lynden, and Everts data are for their system. 

For Alaska Airlines, it is for the carrier's domestic operation only, i.e., the carrier's Latin American Division is excluded.