Order 2014-10-6 

Served: October 14, 2014 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 14th of October, 2014 

INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES 

under 49 U.S.C. 41901 et seq. 

Docket OST-2003-14695 

(Docket 95-429) 

Mainline Quarterly Fuel Update 

The Department has indicated that we would update mail rates on a quarterly basis as more recent 

fuel data became available, with typically a one-quarter lag between the end of the reporting period 

and the effective period of the new rate. Due to unforeseen circumstances, the Department was not 

able to release an update until now. We update the current rates, set by Order 2014-3-8, March 14, 

2014, now based on fuel costs for the quarter ended June 30, 2014, to reflect fuel costs for the 

quarter ended September 30, 2014, as shown in the Appendices to this Order. The next quarterly 

fuel update will be based on data for the quarter ended September 30, 2014, and would be effective 

on or about January 1, 2014. 

This Order is issued under authority delegated in 49 CFR Part 1.25 a(b) and re-delegated to the 

Director, Office of Aviation Analysis. 

ACCORDINGLY, 

1. We make final the rates set forth in Appendix A of this Order, effective October 25, 2014; 

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 this Docket. 
Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR 385.31 (a), must file such petitions within seven (7) days after the date of 

service of this Order. This Order will be effective immediately, and the filing of a petition for 

review shall not preclude its effectiveness. 

By: 

TODD M. HOMAN 

Director 

Office of Aviation Analysis 

(SEAL) 

An electronic version of this document is available at 

http://www.regulations.gov
Appendix A

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES

QUARTER ENDED JUNE 30, 2014

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

Effective

Base Year Adjustment October 25, 2014 Change from

Rates 1/ Factors 2/ Final Rates 3/ Current Rate 4/ Current Rate 5/

Linehaul Charge per Billing Ton-Mile

Priority $1.1969 185.84% $3.4212 $3.5446 -3.48%

Non-priority $0.7246 185.84% $2.0712 $2.1459 -3.48%

Terminal Charge per Pound Originated

Priority $0.1697 127.11% $.3854 $.3854 0.00%

Non-priority $0.1458 127.11% $.3311 $.3311 0.00%

1/ Per Order 82-11-23.

2/ See Appendix B of this order. Unlike the linehaul charge, the terminal charge will not change from quarter to 

quarter with the quarterly fuel updates.

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

4/ Per Order 2014-3-8, Appendix A.

5/ Column 3 ÷ Column 4 minus 1. Any differences between priority and nonpriority elements are due to rounding.
Appendix B

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES COST ADJUSTMENT FACTORS

QUARTER ENDED JUNE 30, 2014

Base Year

Ended Current New

9/30/80 Costs 2/ Costs

Unit Cost per Available Ton-Mile

 Fuel $0.52389 $0.48269 3/

 Nonfuel $0.65914 $0.65914 4/

 Total $0.399469 1/ $1.18303 $1.14183

Percentage Change from Base Year 196.15% 185.84% 5/

Unit Cost per Ton Enplaned $191.54 1/ $435.01 $435.01 4/

Percentage Change from Base Year 127.11% 127.11% 6/

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

2/ Appendix B of Order 2014-3-8.

3/ Appendix C of this Order.

4/ Appendix B of Order 2014-3-8.

5/ ($1.10390/$0.399469)-1.

6/ ($435.01/$191.54)-1.
Appendix C

 Operating Expenses, Alaska Airlines, Northern Air Cargo, Lynden Air Cargo, Peninsula Airways, Era Aviation, and Tatonduk Outfitters, Ltd.

Intra-Alaska Class Service Mail Rates--Quarter Ended June 30, 2014

Lynden Northern Northern

Alaska ERA Air Cargo Air Cargo Air Cargo Tatonduk Outfitters, Ltd.

Not by Aircraft Type AS 7H L2 NC NC 5V

1 Skd. P-12, Skd. Intra-Alaska Costs $12,672,705 NA $904,645 $3,310,461 $3,381,006

2 Skd. P-12, Skd. Intra-Alaska Gallons 4,166,788 NA 262,672 1,052,231 848,019

3 Cost per Gallon 1/ $3.04 NA $3.44 $3.15 $3.99

AS 7H L2 NC NC 3Z 3Z

#617 #483 #556 #619 #620 #218 640

By Aircraft Type Total B-737-400 DHC-8-100 Hercules 737-300 737-200 DC-6 DC-9-30

4 Domestic Gallons 2/ 16,550,000 759,865 297,276 820,984 393,608 655,496

5 Burn per Hour 3/ 789 169 716 633 603 393 939

6 Fuel 4/ $2,808,121 $1,955,966 $2,477,482

7 Intra-AK Skd. Blk. Hrs. 5/ 11,591 5,154 3,606 367 0 1,200 588 676

8 Domestic Block Hours 6/ 29,668 20,978 4,491 667 470 1,362 1,002 698

9 Intra-AK Fuel Exp. 7/ $21,347,411 $12,362,178 $2,254,750 $903,936 $0 $2,279,340 $1,147,812 $2,399,395

10 Intra-AK Skd. ATMs 5/ 44,719,823 27,593,349 2,864,674 2,373,712 0 6,264,993 1,676,045 3,947,050

11 Unit Cost/ATM, Fuel 8/ $0.477359 $0.448013 $0.787088 $0.380811 $0.363822 $0.684834 $0.607896

12 Intra-AK Mail RTMs 5/ 5,294,419 1,064,451 103,790 810,815 0 1,516,569 558,422 1,240,372

13 RTM Percent of Total 9/ 100.00% 20.105% 1.960% 15.315% 0.000% 28.645% 10.547% 23.428%

14 Wtd. Cost/ATM, Fuel 10/ $0.48269 $0.09007 $0.01543 $0.05832 $0.00000 $0.10422 $0.07223 $0.14242

1/ Row 1 ÷ Row 2. Era does not report Schedule P12. Tatonduk files that report but we do not use it here; it is included for comparison 

purposes only.

2/ Per Form 41, except for Era, where we rely on Schedule F2. 

3/ Row 4 ÷ Row 8. However, we divide Lynden's intra-Alaska Scheduled Gallons by its Intra-Alaska Scheduled Block Hours. Because Lynden

only operates one aircraft type, that calculation should accurately reflect its fuel burn.

4/ Per Form 41 for Tatonduk, Schedule F2 for Era. AS, L2, and NC are excluded, as we rely on their Schedule P12 above.

5/ T-100 Segment Report.

6/ T-100 Segment Report. 

7/ For AS, LC, and NC: Row 3 x Row 5 x Row 7;

 For 5V and 7H: Row 6 ÷ Row 8 x Row 7.

8/ Row 9 ÷ Row 10.

9/ Row 12 for each individual carrier ÷ Total Mail RTMs for all carriers on Row 12.

10/ Row 13 x Row 11 for individual carriers, and then summed across.