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### ... .. Order

## 2Q1.4:-7-18 Served: July.17·; 2012 · ' 

## UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY W ASIDNGTON, D.C. IssuedbytheDepartment ofTransportation onthe 17th ofJuly, 2012
INTRA-ALASKA MAINLINE · SERVICE MAILRATES 

### · Docket 

## OST.;2003-14695

Mainline Quarterly Fuel Adjustment ·summary Bythis 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 onthe second Saturday after the issue date ofthis Order, andreflect fuel expenses for the quarter ended March 31, 2012. 

### Background Order 2011-9-6 tentatively established final annual Intra-Alaska mainline mail rates. After receiving objections, Order 2011-11-18 finalized those annual rates, and also updated them to reflect fuel expenses for the quarter ended June 30, 2011, the mostrecent fuel expenses available at that time. Wehave indicated that we will continue to make regular quarterly fuel updates. Most recently, we issued Order 2012-3-21, March 30, 2012, updating the rates set in Order 2011-11-18 for fuel expenses for the quarter endedDecember 31, 2011. This Order updates the rates in Order 2012-3-21 to reflectfuel costs for the quarter ended March 31,2012, the mostrecent data available. The next quarterly fuel update, based ondata for the quarter endedJune 30, 2012, will be effective on or about October 1, 2012. Weighted average fuel costs per ATMhave increased by 5.10 percent, from $0.51968 for the QE 12-31-11, as shown in Appendix C ofOrder 2012-3-21, to $0.54616 for the QE 3-31-12, as shown in Appendix C ofthis Order. That increase in fuel costs produces the 2.26 per cent increase inthe line haul rates. There is no change to the terminalrates, but wehave included it for convenience.

. Service Current Rates Update for Percentage PavmentParameter Class Order 2012-3-21 QE3-31-12 Change

Linehaul, $/RTM Priority $3.5048 $3.5841 2.26% Linehaul, $/RTM Nonpriority $2.1218 $2.1698 2.26% Terminal, $/Lb. Enplaned Priority -$0.3456 $0.3456 0.00% Terminal, $/Lb. Enplaned Nonpriority $0.2970 $0.2970 0.00%,,-·· r:. • f. \
.... -_ .....**,.~· ·~**  ·t. ·.... "" : . . 

## ACCORDINGLY, 1. 

### We makefinal the rates set forth in Appendix A, effective the second Saturday after the issue date ofthis Order, until further Department action; 2. This docket shall remainopen until further Order ofthe Department; and 3. We will serve this Order upon all parties onthe Service List for this Docket. Persons entitled to petitionthe Department for review ofthis Order under the Department's
. Regulations, 14CFR 385.30,must file such petitions within ten (ten) days after the date of service ofthis Order. The filing ofa petition for review shall not stay its effectiveness. By:



## TODD M. HOMAN Director Office ofAviation Analysis (SEAL) An electronic version ofthis document is available onthe World Wide Web at http://www.regulations.govPriority Non-priority

Priority Non-priority 1/ Per Order 82-11-23. (1) Base Year

Rates 1/

$1.1969 $0.7246

$0.1697 $0.1458 

# .. Appendix A INTRA-ALASKA MAINLINE CLASS SERVICEMAIL RATES



### (2) (3) 

### (4) Adjustment

Factors 2/ Final Rates 3/ ·· ,**'~urrent** Rate 4/
Linehaul Charge per Billing Ton-Mile

199.45% 199.45% $3.5841 $2.1698

Terminal Charge per Pound Originated

103.68% 103.68% .$.3456. ,., $.2970 $3.5048 $2.1218

$.3456 $.2970 (5) Change from Current Rate 5/

2.26% 2.26%

0.00% 0.00%
2/ See Appendix B ofthis 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 2012-3-21. 5/Column 3 

### +Coluimn 4 minus 1. Any differences between priority and nonpriority elements are due to rounding.: ) 

### ·-·**~**..

. ; ' Appendix B
INTRA-ALASKA MAINLINE CLASS SERVICEMAIL RATES COST ADJUSTMENT FACTORS

Base Year Ended 9/30/80

... ·;**~~** . Unit Cost per Available Ton-Mile

Fuel Nonfuel Total $0.399469 1/
Percentage Change from BaseYear
Unit Cost per TonEnplaned $191.54 1/ Percentage Change from Base Year

1/ Order 82-11-23, updated mostrecently in Order 97-12-24. 2/Appendix B ofOrder 2012-3-21. 3/Appendix C ofthis order. 4/ ($1.19620/$0.399469)-1. Current New Costs 2/ Costs



# .. 

# .. . $0.51968 $0.54616 3/ $0.65004 $0.65004 2/ $1,16972 $1.19620

192.82% 199.45% 4/ $390.13 $390.13 2/ 103.68% 103.68% 2/
' 

# .

# .. . L**,.._,~~':."·** .. . ..'·".'""L."f _" Operatin,iiE'x'penses, AlaskaAirlines, Northern AirCargo, Lynden Air Cafgo, Peninsula Airways, and Tatonduk**Ou~fitters,** Ltd. Intra-Alaska Class Service Mail Rates--Quarter Ended March 31, 2012 Lynden Northern Tatonduk Alaska AirCargo AirCargo Outfitters, Ltd. Not bx Aircraft Txpe AS L2 NC 3Z I Skd. P-12, Skd. Intra-AK Cost $15,615,487 $952,598 $,3,340,069 $2,600,112 2 Skd. P-12, Skd. Intni-AK Gallons 4,802,836 266,705 998,212 719,742 3**_<:;Q~t,per** Gallon 1/ $3.25; $3.57 $3.35 $3.61**''~t£;;.'·/** .•**;;.:;;.,::~_·'··,>:..** Appendix C

Peninsula Airways 4/**~** #617 Bx Aircraft Txpe Total B-737-400 4 Domestic Gallons 2/ 16,519,000 5 Bum per Hour 3/**8~4** 6 Fuel 4/ 7 lntra-AK Skd. Blk. Hrs. 5/ 9,683 6,246 8 Domestic Block Hours 5/ 30,255 20,550
9 Intra-AK Fuel Exp. 6/ $22,865,775 $16,320,798
I0 lntni-AK Skd. ATMs 5/ 43,701,932 32,246,116 II Unit Cost/ATM, Fuel $0.523221 $0.506132 12 lntra-AK Mail RTMs 5/ 4,495,022 1,186,655 13 RTM Percent ofTotal 100.00% 26.40% 14 Wtd. Cost/ATM, Fuel $0.54616 $0.13362
1/ Row 1+Row 2. 2/Per Form 41 except for for PenAir, where we rely on Schedule F2. 3/ Row 4 + Row 8. 4/ Per Form 4f for Tatonduk, Schedule F2 for PenAir. L2 #556 Hercules 887,444 707

376 1,255 $949,020
2,408,257 $0.394069

863,253 19.20% $0.07566 lli::. 3Z 3Z (KS) #620 #218 #461 456 737-200 DC-6 Brasilia Saab 340 1,294,630 370,477 29,450 672,789 858 382 188 138 $1,929,115 $120,171 $3,012,286 1,154 787 157 963 1,509 971 157 4,873 $3,316,942 $1,563,557 $120,171 $595,287
5,785,018 2,302,097 132,884 827,560 $0.573368 $0.679188 $0.904330 $0.719328 1,514,066.**8~6.920** 51,294 52,834

33.68% 18.40% 1.14% 1.18% $0.19311 $0.12497 $0.01031 $0.00849

51 T-1 00 Segment Report, except for PenAir, where we rely on that carrier's special report for Mainline/Scheduled: Hours, ATMs, and Mail RTMs. 6/ For AS, LC, and NC: Row 3 x Row 5 x Row 7; For 3Zand KS: Row 6 +Row 8 x Row 7. (KS) 459 Saab 340

124,645 133 $558,073 0 940

$0
0 $0.000000 0 0.00% $0.00000