Order 2010-9-7 

Served: September 2, 2010 

'^Si« ^ UNITED STATES OF AMERICA 

m r A s DEPARTMENT OF TRANSPORTATION 

'^lU^mJ OFFICE OF THE SECRETARY 

*^^!S5^ WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 2"'' day of September, 2010 

INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES 

Docket OST-2003-14695 

(Docket OST-95-429) 

ORDER SETTING FINAL MAINLINE SERVICE MAIL RATES 

By Order 2010-8-7, August 12, 2010, the Department directed the parties to show cause by 

September 1 why we should not make final the annual rates tentatively set forth in that 

order. The deadline for objections has expired, and we have received no objections. We 

will therefore make final the rates set forth in that order, adjusted for the most recent 

quarterly fuel expenses.' 

ACCORDINGLY, 

1. We finalize the tentative findings in Order 2010-8-7; 

2. We make final the rates set forth in Appendix A of this order, effective October 2, 2010; 

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

4. 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 385.50, must file such petitions within ten (10) 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 on the World Wide Web at 

http://www.regulations.gov 

' Order 2010-8-7 indicated that the final order would update the rates tentatively set by that order for 

QE 6-30-10 fuel expenses when those data became available. 
Appendix A 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES 

(1) 

Base Year 

Rates 1/ 

(2) 

Adjustment 

Factors 2/ 

(3) 

Final Rates 3/ 

(4) (5) 

Change from 

Current Rate 4/ Current Rate 5/ 

Linehaul Charge per Billing Ton-Mile 

Priority 

Non-priority 

$1.1969 

$0.7246 

167.95% 

167.95% 

$3.2071 

$1.9416 

$3.2041 

$1.9398 

0.09% 

0.09% 

Terminal Charge per Pound Originated 

Priority $0.1697 113.16% $.3617 $.3620 

Non-priority $0.1458 113.16% $.3108 $.3110 

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 2010-6-24. 

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

-0.08% 

-0.06% 
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/ 

Current 

Rate 

$0.46978 2/ 

$0.59959 3/ 

$1.06937 

New 

Rate. 

$0.42740 11 

$0.64299 8/ 

$1.07039 

Percentage Change from Base Year 167.70% 4/ 167.95% 9/ 

Unit Cost per Ton Enplaned $191.54 1/ 

Percentage Change from Base Year 

$408.58 5/ 

113.31% 6/ 

$408.29 10/ 

113.16% 11/ 

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

2/ Appendix C of Order 2010-6-24. 

3/ Appendix B of Order 2010-6-24. 

4/ Appendix A of Order 2010-6-24. 

5/ Appendix B of Order 2009-9-14. 

6/($408.58/$191.54)-l. 

7/ Appendix C of this order, QE 6-30-10. 

8/ Appendix B of Order 2010-8-7. 

9/($1.07039/$0.399469)-l. 

10/ Appendix B of Order 2010-8-7. 

11/($408.29/$ 191.54)-1. 
Appendix C 

Intra-AIaska Mainline Mail Costs -- Quarter Ended March 31,2010, Per Order 2010-6-24 

Alaska Lynden Northern 

Fuel 1/ 

Intra-AK Skd. Blk. Hrs. 

Total Block Hours 

Grand 

Total 

$40,946,588 

9,423 

23,792 

Airlines 

AS 

#617 

737-400 

Air 

LAC 

#556 

Hercules 

Air Cargo 

NAC 

#620 

B-737-200 

$33,531,588 $1,890,717 $2,942,742 

6,185 

20,133 

383 

476 

1,141 

1,379 

Everts Air Cargo 

#150 

C-46 

$98,315 

143 

157 

—-EAC-

#218 

DC-6 

$2,383,499 

1,333 

1,402 

#461 

Brasilia 

$99,727 

238 

245 

Intra-AK Fuel Expense 

Intra-AK Skd. ATMs 

Unit Cost/ATM, Fuel 

$16,709,931 $10,301,141 $1,521,312 $2,434,858 $89,548 $2,266,194 $96,878 

44,161,398 31,602,080 2,481,859 5,675,268 151,063 4,045,686 205,442 

$0.378383 $0.325964 $0.612973 $0.429030 $0.592786 $0.560151 $0.471559 

Intra-AK Mail RTMs 

RTM Percent of Total 

Wtd. Cost/ATM, Fuel 

5,397,040 1,542,938 922,547 1,294,658 45,082 1,511,450 80,365 

100.01% 28.59% 17.09% 23.99% 0.84% 28.01% 1.49% 

$0.46978 $0.09319 $0.10476 $0.10292 $0.00498 $0.15690 $0.00703 

Intra-AIaska Mainline Mail Costs ~ Quarter Ended June 30,2010 

Fuel 1/ 

Intra-AK Skd. Blk. Hrs. 

Total Block Hours 

Grand 

Total 

$48,149,745 

9,717 

26,866 

Alaska 

Airlines 

AS 

#617 

737-400 

$39,585,683 

6,329 

22,367 

Lynden Northern 

Air Air Cargo 

LAC NAC 

#556 #620 

Hercules B-737-200 

Everts Air 

#218 

DC-6 

$1,299,558 $4,169,450 $2,953,342 

386 1,294 

622 1,798 

1,417 

1,763 

Cargo 

-EAC 

#461 

Brasilia 

$141,712 

291 

316 

Intra-AK Fuel Expense 

Intra-AK Skd. ATMs 

Unit Cost/ATM, Fuel 

Intra-AK Mail RTMs 

RTM Percent of Total 

Wtd. Cost/ATM, Fuel 

$17,512,638 $11,201,224 $806,478 $3,000,705 $2,373,730 $130,501 

47,250,504 33,642,470 2,490,742 6,580,215 4,279,434 257,643 

$0.370634 $0.332949 $0.323790 $0.456019 $0.554683 $0.506519 

5,526,242 1,625,486 883,008 1,360,842 1,550,508 106,398 

100.01% 29.41% 15.98% 24.63% 28.06% 1.93% 

$0.42740 $0.09792 $0.05174 $0.11232 $0.15564 $0.00978 

Note: 

Data for NAC and EAC are from the T-100 Segment and Form 41 reports. Data for Alaska Airlines and 

Lynden are from special reports filed by the carriers. Alaska's special report is for its domestic region only, 

i.e., it excludes its Latin American division.