.t • .• ·~ • • '" . •.•. . • • .•• . .. .. Order 2Q 1.4:-7-18 

Served: July.17·; 2012 · ' 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

W ASIDNGTON, D.C. 

Issued by the Department of Transportation 

on the 17th of July, 2012 

INTRA-ALASKA MAINLINE · 

SERVICE MAIL RATES 

· Docket 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 the second Saturday after the issue date of this Order, and reflect 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 most recent fuel expenses 

available at that time. We have 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 ended December 31, 2011. 

This Order updates the rates in Order 2012-3-21 to reflect fuel costs for the quarter ended 

March 31,2012, the most recent data available. The next quarterly fuel update, based on data for 

the quarter ended June 30, 2012, will be effective on or about October 1, 2012. Weighted average 

fuel costs per ATM have increased by 5.10 percent, from $0.51968 for the QE 12-31-11, as 

shown in Appendix C of Order 2012-3-21, to $0.54616 for the QE 3-31-12, as shown in 

Appendix C of this Order. That increase in fuel costs produces the 2.26 per cent increase in the 

line haul rates. There is no change to the terminal rates, but we have included it for convenience. 

. Service Current Rates Update for Percentage 

Pavment Parameter 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 make final the rates set forth in Appendix A, effective the second Saturday after the 

issue date of this Order, 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 this Docket. 

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 
Priority 

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 SERVICE MAIL 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 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 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 SERVICE MAIL 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 Base Year 

Unit Cost per Ton Enplaned $191.54 1/ 

Percentage Change from Base Year 

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

2/ Appendix B of Order 2012-3-21. 

3/ Appendix C of this 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, Alaska Airlines, Northern Air Cargo, 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 Air Cargo Air Cargo 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 

I 0 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 of Total 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 4 f 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 3Z and 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