### Orde r 2012-3-2 1 Served : Marc h30 , 201 2

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### UNITE D STATE S O FAMERIC A DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C . Issue db y th e Departmen t of Transportatio n o n th e 30 * of

March , 201 2 INTRA-ALASKA MAINLIN E SERVIC EMAI LRATE S Docke t 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 ar e t o b e effectiv e o n th e secon dSaturday afte r th e issu e dat e o f

thi s order , an dreflec t

fuel expense s for th e quarte r

ende dDecembe r

31 , 2011 . Backgroun d Orde r 2011-9- 6 tentativel y establishe dfinal annua l Intra-Alask amainlin e mai l rates . After receivin g objections . Orde r 2011-11-1 8 finalize dthos e annual rates , an dals o update dthe m t o reflec t fuel expense s fo r

th e quarte r

ende dJun e 30 , 2011 , th e mos t recen t fuel expense s availabl e a

t that time . W e hav e indicate dthat w e wil l continu e t o mak e regular quarterl y fuel updates. Mos t

recently , w e issue dOrde r 2011-12-26 , Decembe r

30 , 2011 , updatin g th e rate s se t i n Orde r 2011-11-1 8 for

fuel expense s fo r

th e quarte r

ende dSeptembe r

30 , 2011 . Thi s orde r

update s th e rate s i n Orde r 2011-12-2 6 t o reflec t

fuel cost s for

th e quarte r

ende d Decembe r

31 , 2011 , th e mos t

recen t dat aavailable . Th e nex t quarterl y fue l update , base do n dat a for th e quarte r

ende dMarc h31 , 2012 , wil l b e effectiv e o n o r abou t Jul y 1 , 2012 . Weighte d average fuel cost s pe r

AT M hav e decrease db y 1.7 6 percent , fro m$0.5289 8 for th e Q E9-30-11 , a s show n i n Appendi x C o f Orde r 201 1 -12-26 , t o $0.5196 8 for th e Q E12-3 1 -11 , a s show n i n Appendi x C o f

thi s order . That

decreas e i n fuel cost s produce s th e 0.7 9 pe r cen t decreas e i n th e lin e hau l rates . Ther e i s n o chang e t o th e termina l rates , but w e hav e include di t

for convenience . Paymen t Paramete r Linehaul , $/RT M Linehaul , $/RT M Terminal , $/Lb . Enplane d Terminal , $/Lb . Enplane d Servic e Clas s Priority Nonpriority Priority Nonpriority Curren t Rate s Orde r 2011-12-2 6 $3.532 7 $2.138 7 $0.345 6 $0.297 0 Updat e fo r O E12-31-1 1 $3.504 8 $2.121 8 $0.345 6 $0.297 0 Percentag e

Chang e -0.79 % -0.79 % 0.00 % 0.00 %

### ACCORDINGLY ,

1 . W e mak e final th e rate s se t fort hi n Appendi x A , effectiv e th e secon dSaturday afte r th e issu e dat e of

thi s order , unti l further

Departmen t

action ; 2 . Thi s docke t

shal l remai n ope n unti l further orde r o f 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 for 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 after th e dat e o f servic e of 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 o f

thi s docmnen t

i s availabl e o n th e Worl dWid e We b a t http://www.regulations.go v

### Appendi x A INTRA-ALASK

A MAINLIN

ECLAS S SERVIC

EMAI LRATES

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

Priority Non-priority Bas e Yea r Rate s 1 /

$1.196 9 $0.724 6 Adjustment

Factor s 2 / Final Rate s 3 /

Curren t

Rat e 4 / Linehau l Charg e pe r

Billing Ton-Mil e

192.82 % $3.504 8 $3.532 7 192.82 % $2.121 8 $2.138 7 Chang e from Curren t Rat e 5 /

-0.79 % -0.79 %



### Termina l Charge pe

r Poun dOriginated

Priorit y Non-priorit

y $0.169 7

$0.145 8 103.68 %

103.68 % $.345 6

$.297 0 $.345 6

$.297 0 0.00 %

0.00 % 

### 1/Pe r Orde r 82-11-23 . 2 / See Appendi

x B o f thi s order . Unlik

e th e linehau l charge , th

e termina l charg e wil

l not change fromquarte

r t o quarte r wit hth e quarterl y fue l updates . 3 / Colum n (1 ) increasedb

y Colum n (2) . 4/Pe r Orde r 2011-12-26 . 5 / An y difference s betwee

n priorit y an dnonpriorit

y elements ar

e due t o rounding .Appendi x B

INTRA-ALASKA MAINLIN ECLAS S SERVIC EMAI LRATE S COS T ADJUSTMEN T FACTOR S

Bas e Yea r Ende d 9/30/8 0 Uni t Cos t pe r Availabl e Ton-Mil e Fue l Nonfue l Tota l $0.39946 9 1 / Curren t Costs . $0.5289 8 2 / $0.6500 4 2 / $1.1790 2 Ne w Cost s $0.5196 8 3 / $0.6500 4 2 / $1.1697 2 Percentag e Chang e fromBas e Year 195.15 % 2 / 192.82 % 4 / Uni t Cos t pe r To n Enplane d$191.5 4 1 / Percentag e Chang e fromBas e Year $390.1 3 2 / 103.68 % 2 / $390.1 3 2 / 103.68 % I I

1 / Orde r 82-11-23 , update dmos t

recentl y in Orde r

97-12-24 . 2 / Appendi x B o f

Orde r 2011-12-26 . 3 / Appendi x C o f

thi s order . 4/($1.17902/$0.399469)-l .Operatin g Expenses , Alask aAirlines , Northern Ai r Cargo , Lynde n Ai r

Cargo , Peninsul aAirways , an dTatondu k Outfitters , Ltd . Intra-Alask aClas s Service Mai l Rates-Quarte r Ende dDecembe r

31 , 201 1 Appendi x C

No t by Aircraf

t Typ e 1 Skd . P-12 , Skd . Intra-A K Cos t 2 Skd . P-12 . Skd . Intra-A K Gallon s 3 Cos t pe r Gallo n 1 /

B y Aircraf

t Typ e 4 Bu mpe r

Hou r 2 / Tota l Alask a A S $14,796,12 8 4,777,36 4 $3.1 0 A S #61 7 B-737-40 0 78 9 Lynde n Ai r Carg o m $935,53 4 282.16 0 $3.3 2 L2 #55 6 Hercule s 64 0 Northern Air Carg o N C $3,254,55 6 1.031.21 9 $3.1 6 N C #62 0 737-20 0 87 7 Tatondu k Outfitters , Ltd .

3 Z $2,704,67 3 708.37 7 $3.8 2 3 Z #21 8 DC- 6 39 9 3 Z

#46 1 Brasili a 15 2 Peninsul aAirway s 4 /

(KS ) 45 6 Saab 34 0 12 5 (KS )

45 9 Sa3b34 0 127 5 Fue l $2,358,85 2 $134,57 7 $2,620,66 3 $409,41 8 6 Intra-A K

Skd . Blk . Hrs . 7 Domesti c Bloc k

Hour s 8 Intra-A K

Fue l Exp . 3 / 9 Intra-A K

Skd . ATM s 1 0 Uni t Cost/ATM , Fue l 1 1 Intra-A K

Mai l RTM s 1 2 RT M Percen t

o f Tota l 1 3 Wtd . Cost/ATM , Fue l 10,09 0 29,19 8 $21,748,84 4 43,820,57 9 $0.49631 6 4,988,13 8 100.00 % $0.5196 8 6,10 6

19,72 2 $14,934,66 5 31,254,11 8 $0.47784 6 1,198,96 6 24.04 % $0.1148 7 39 1

1,67 7 $830,79 7 2,500,44 7 $0.33225 9 915,02 7 18.34 % $0.0609 4 1,202

1,54 3 $3,331,12 7 5,985,21 6 $0.55655 9 1,608,63 8 32.25 % $0.1794 9 98 7

1,24 1 $1,876,05 7 2,911,16 2 $0.64443 6 1,103,03 3 22.11 % $0.1424 8 22 9

23 3 $132,26 7 193,30 2 $0.68425 1 80,91 0 1.62 % $0.0110 8 1,17 5

4,78 2 $643,93 1 976,33 4 $0.65954 0 81,56 4 1.64 % $0.0108 2 0

0 $ 0 0 $0.00000 0 0 0.00 % $0.0000 0 1 / Fue l expense s for

AS , L2 , an dN C ar e calculate dby firs t determinin g th e intra-Alask acos t pe r gallo n for

thos e carrier s fromSchedul e P-12 , Ro w 3 = Ro w 1 •; • Ro w 2 . 2 / Next , for AS , L2 , an dNC , w e determin e th e th e fuel bu mpe r bloc k hou r b y aircraf

t type . Ro w 4 -

^ Ro w 8 . W e hay e use dth e bu mpe r hou r fromorde r

2011-12-26 , Q E9/30/1! , becaus e tha t wa s available . 3 / Fue l expens e fo

r al l bu t Tatondu k

i s th e resul t

o f Ro w 3 x Ro w 4 x Ro w 7 . Fo r Tatonduk , w e continu e t o determin e Tatonduk' s cost s th e ol dwa y becaus e it s DC- 6 aircraf t bum s expensiv e Avga s whil e it s turbopro p Brasili abum s les s expensiv e Je t A , an dSchedul e P-1 2 doe s no t break ou t intra-Alask aexpense s int o thos e tw o cargeories . 4 / PenAi r doe s no t report schedul e P-12 , an ds o w e hav e relie do n Schedul e F- 2 for expense s an daspecia l report filedb y th e carrie r

tha t separate s it s traffi c amon g Par t 121 , Part

135 , an dmainlin e service . Note , PenAir' s dat ai n Ro w 6 reflect s it s mainlin e operation s only .