Orde r 2010-6-2 4 Served : Jun e 29 , 201 0 

# Jt t ^jg%g ^ UNITE D STATE S O FAMERIC A lU r A s DEPARTMEN T O FTRANSPORTATIO N "OAM ^ OFFIC EO FTH ESECRETAR Y ^^S5 ^ WASfflNGTON , D.C . Issue db y th e Departmen t o f Transportatio n o n th e 29 * of

June , 201 0 INTRA-ALASKA MAINLIN E SERVIC EMAI LRATE S Docket s OST-2003-1469 5

Mainlin e Quarterl y Fue l Adjustmen t Summar y B y thi s order , th e Departmen t i s makin g it s regular

quarterl y adjustment s t o Intra-Alask a Mainlin e mai l rate s t o reflec t th e mos t recen t quarterl y fuel costs . Th e ne w rate s are t o b e effectiv e o n Jul y 3 , 2010 , an dreflec t fuel expense s for

th e quarte r

ende dMarc h31 , 2010 . Backgroun d Orde r 2009-9- 1 tentativel y establishe dfinal annual Intra-Alask amainlin e mai l rates . After n o objection s wer e received . Orde r 2009-9-1 4 finalize dthos e annua l rates , an dals o update d th e annua l rate s i n th e show-caus e orde r t o reflec t fuel expense s for

th e quarte r

ende d Jun e 30,2009 , th e mos t

recen t fuel expense s availabl e at tha t time . W e hav e indicate dthat w e wil l continu e t o mak e regular quarterl y fuel updates . Sinc e then , w e issue d Orde r 2010-3- 4 whic hupdate dthos e rate s for fuel expense s reporte dfor th e quarte r

ende d Decembe r

31 , 2009 . Thi s orde r

update s th e rate s i n Orde r 2009-12-1 4 t o reflec t

fuel cost s for

th e quarte r

ende d Marc h31 , 2010 , th e mos t recen t dat aavailable . Th e nex t quarterl y fuel update , base do n dat afor th e quarte r

ende dJun e 30 , 2010 , wil l b e effectiv e o n o r abou t Octobe r 1 , 2010 . Th e termina l portio n of

th e mai l rat e i s unchange dfro mthat i n Orde r 2009-12-14 , but

w e hav e include dthos e number s for th e sake of

convenience . Th e tabl e belo w show s a n 8.1 2 percen t increas e i n th e linehau l mai l rate , drive n b y a 2 0 percen t

increas e i n uni t

fuel cos t pe r ATM . Thi s fuel increase , i n turn , i s drive n b y a three-fol dincreas e i n Lynde n Ai r Cargo' s uni t

fuel cos t pe r ATM . I n respons e t o ou r inquiries , b y lette r

date dJun e 21 , Lynde n indicate s tha t i t ha dunderstate dit s fuel cost s for 2009 , an donl y discovere dthat erro r whe n i t conducte dayear-en dinternal audit . Lynde n indicate s i t

wil l undertak e procedure s t o preven t thi s fro mhappenin g again . W e wil l- 2 -

accordingl y update th e rat e base do n Lynden' s reporte dcost s fo r th e quarte r

ende d Marc h31,2010 . Paymen t Paramete r Linehaul , $/RT M Linehaul , $/RT M Terminal , $/Lb . Enplane d Terminal , $/Lb . Enplane d Servic e Clas s Priority Nonpriority Priorit y Nonpriority Curren t Rates , Orde r 2010-3- 4 $2.963 5 $1.794 1 $0.362 0 $0.311 0 Updat e fo r O E3-31-1 0 Fue l $3.204 1 $1.939 8 $0.362 0 $0.311 0 Percentag e

8.12 % 8.12 % 0 % 0 % ACCORDINGLY , 1 . W e mak e final th e rate s se t fort hi n Appendi x A , effectiv e Jul y 3 , 2010 , imti l further Departmen t

action ; 2 . Thi s docke t

shal l remai n ope n unti l further orde r of th e Department ; an d 3 . W e wil l serv e thi s orde r upo n al l partie s o n th e Servic e Lis t for thi s Docket . Person s entitle dt o petitio n th e Departmen t fo r revie w of

thi s orde r

unde r th e Department' s Regulations , 1 4 CFR385.30 , mus t fil e suc hpetition s withi n te n (ten ) day s afte r th e dat e o f servic e o f thi s order . Th e filin g of

apetitio n for

revie w shal l not

stay it s effectiveness . By :

TOD D M . HOMA N Directo r Offic e o f Aviatio n Analysi s (SEAL ) A n electroni c versio n of

thi s documen t

i s availabl e o n th e Worl dWid e We b at http://www.regulations.go vAppendi x A INTRA-ALASKA MAINLINECLAS S SERVIC EMAI LRATE S

(1 ) Bas e Year Rate s 1 / (2 )

Adjustmen t Factor s 2 / (3 )

Propose d Final Rate s 3 / (4 ) (5 ) Chang e from Curren t Rat e 4 / Curren t

Rat e 5 / Linehau l Charg e pe r

Billin g Ton-Mil e

Priority Non-priority $1.196 9 $0.724 6 167.70 %

167.70 % $3.204 1

$1.939 8 $2.963 5

$1.794 1 8.12 %

8.12 %

Termina l Charg e pe r

Poun dOriginate d

Priority Non-priority $0.169 7 $0.145 8 113.3 1

113.3 1 $.362 0 $.311 0 $.362 0

$.311 0 1/Pe r Orde r 82-11-23 . 2 / Se e Appendi x B o f

thi s orde r

fo r th e linehaul . Th e termina l charge , per Orde r 2009-9-1 , doe s no t

change , bu t i s include dfor

convenien t

reference . 3 / Column (1 ) increase db y Colum n (2) . 4/Pe r Orde r 2010-3-4 . 5 / An y difference s betwee n priority an dnonpriority element s ar e du e t o rounding . 0.00 % 0.00 %Appendi x B

INTRA-ALASKA MAINLINECLAS S SERVIC EMAI LRATE S COS T ADJUSTMEN T FACTOR S

is e Yea r Ende d 9/30/8 0 Uni t

Cost s Base do n O E12-31-0 9 Uni t Cost s Base do n O E3-31-1 0 Uni t Cos t pe r Availabl e Ton-Mil e Fue l 1 / Nonfue l 2 / Tota l $0.39946 9 3 / $0.3894 8 $0.5995 9 $0.9890 7 $0.4697 8

$0.5995 9 $1.0693 7 Percentag e Chang e fromBas e Year 147.60 % 4 / 167.70 % 5 / 1 / Appendi x C o f

thi s orde r

fo r Q E3-31-1 0 result , an d Appendi x C o f

Orde r 2010-3- 4 Q E12-31-0 9 result . 2 / Appendi x B o f

Orde r 2009-9-1 . 3 / Orde r 82-11-23 , update dmos t

recentl y i n Orde r

97-12-24 . 4 / ($0.98907/$0.399469)-l . 5/($1.06937/$0.399469)-l .Appendi x C

Fue l 1 / Intra-Alask aMainlin e Mai l Cost s - Quarte r Ende dMarc h31 , 201 0 Alask aLynde n Northern Airline s Ai r

Ai r Carg o A S LA C NA C Evert s Ai r Carg o EAC

Gran d#61 7 #55 6 #62 0 #15 0 #21 8 #46 1 Tota l 737-40 0 Hercule s B-737-20 0 C-4 6 DC- 6 Brasili a $40,946,58 8 $33,531,58 8 $1,890,71 7 $2,942,74 2 $98,31 5 $2,383,49 9 $99,72 7 Intra-A K Skd . Blk . Hrs . 2 / Tota l Bloc k

Hour s 2 / 9,42 3

23,79 2 6,18 5

20,13 3 38 3

47 6 1,14 1

1,37 9 14 3

15 7 1,33 3

1,402 23 8

24 5 Intra-A K Fue l Expens e $16,709,93 1 $10,301,14 1 $1,521,31 2 $2,434,85 8 $89,54 8 $2,266,19 4 $96,87 8 Intra-A K Skd . ATM s 2 /

44,161,39 8 31,602,08 0 2,481,85 9 5,675,26 8 151,06 3 4,045,68 6 205,44 2 Uni t Cost/ATM , Fue l $0.37838 3 $0.32596 4 $0.61297 3 $0.42903 0 $0.59278 6 $0.56015 1 $0.47155 9 Intra-A K Mai l RTM s 2 / RT M Percen t

o f Tota l Wtd . Cost/ATM , Fue l 5,397,04 0 100.00 % $0.4697 8 1,542,93 8

28.59 % $0.0931 9 922,54 7

17.09 % $0.1047 6 1,294,65 8

23.99 % $0.1029 2 45,08 2

0.84 % $0.0049 8 1,511,45 0

28.01 % $0.1569 0 80,36 5

1.49 % $0.0070 3 1 / Pe r Form4 1 reports , excep t

for Lynden , whos e fue

l expense i s from aspecia l internal report o f Lynden . 2 / Pe r th e T-lO O Segmen t

repor t an dcarrie r

submissions . Northern Air , Lynden , an dEverts dat aar e for thei r system . Fo r Alask aAirlines , i

t i s fo r th e carrier' s domesti c operatio n only , i.e. , th e carrier' s Lati n American Divisio n i s excluded . Lynde n i s pe r

th e carrier' s specia l report .