Order 2012-9-26 

Served: September 28, 2012 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 28ili of September, 2012 

---------------------------------, 

INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES 

Docket OST-2003-14695 

(Docket 95-429) 

under 49 U.S.C. 41901 et se 

Finalizing Annual Update and Making Quarterly Fuel Adjustment 

By Order 2012-9-4, September 20,2012, the Department directed the parties to show cause by 

September 25, 2012, 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. 1 The rates contained in Order 2012-9-4 include fuel costs for the quarter ended 

March 31, 2012. Consistent with longstanding program practice, we will here update the rates in 

that Order to reflect fuel costs for the quarter ended June 30, 2012, as shown in the Appendices. 

ACCORDINGLY, 

1. We finalize the tentative findings in Order 2012-9-4; 

2. We make final the rates set forth in Appendix A of this Order, effective the second Saturday after 

the issue date of this Order; 

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: 

(SEAL) 

TODD M. HOMAN 

Director 

Office of Aviation Analysis 

An electronic version of this document is available on the World Wide Web at 

http:/ /www.regulations.gov 

1 Order 2012-9-4 indicated that the fmal order would update the rates tentatively set by that order for 

QE 6-30-12 fuel expenses when those data became available. 
Priority 

Non-priority 

Priority 

Non-priority 

1/ Per Order 82-11-23. 

(1) 

Base Year 

Rates 11 

$1.1969 

$0.7246 

$0.1697 

$0.1458 

Appendix A 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES 

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

Adjustment Change from 

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

Linehaul Charge per Billing Ton-Mile 

197.10% 

197.10% 

$3.5560 

$2.1528 

Terminal Charge per Pound Originated 

112.07% 

112.07% 

$.3599 

$.3092 

$3.5841 

$2.1698 

$.3456 

$.2970 

-0.78% 

-0.78% 

4.14% 

4.11% 

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 2012-7"18. 

51 Column 3 + Column 4 minus 1. Any differences between priority and nonpriority elements are due to rounding. 
AppendixB 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES COST ADWSTMENT FACTORS 

Base Year 

Ended 

9/30/80 

Unit Cost per Available Ton-Mile 

Fuel 

Nonfuel 

Total $0.399469 11 

Percentage Change from Base Year 

Unit Cost per Ton Enplaned $191.54 11 

Percentage Change from Base Year 

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

2/ Appendix B of Order 2012-7-18. 

3/ Appendix C of this Order. 

4/ Appendix B of Order 2012-9-4. 

51 ($1.18684/$0.399469)-1. 

6/ Appendix B of Order 2012-9-4. 

7/ ($406.19/$191.54)-1. 

Current New 

Costs 2/ Costs 

$0.54616 $0.52500 3/ 

$0.65004 $0.66184 4/ 

$1.19620 $1.18684 

199.45% 197.10% 5/ 

$390.13 $406.19 6/ 

103.68% 112.07% 2/ 
AppendixC 

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, 2012 

Lynden Northern Peninsula 

Alaska ERA Air Cargo Air Cargo Airwaxs41 Tatonduk Outfitters, Ud. 

Not bx Aircraft Tme AS 7H L2 NC KS 3Z 

1 Skd. P-12, Skd. Intra-AK Cost $15,639,177 NA $944,210 $3,335,638 NA $3,155,480 

2 Skd. P-12, Skd. Intra-AK Gallons 4,986,031 NA 277,613 1,059,366 NA 764,830 

3 Cost per Gallon ll $3.14 NA $3.40 $3.15 NA $4.13 

AS 7H L2 NC KS 3Z 

#617 #483 #556 #620 456 #218 

Bx Aircraft Tme Total B-737-400 DHC-8-100 Hercules 737-200 SF-340B DC-6 

4 Domestic Gallons 21 18,180,000 619,700 948,999 1,500,573 788,897 406,268 

5 Bum per Hour 31 792 155 720 882 137 362 

6 Fuel 41 $2,151,473 $3,428,145 $2,137,471 

7 Intra-AK Skd. Blk. Hrs. 51 14,214 6,352 3,602 388 1,2ll 1,258 646 

8 Domestic Block Hours 51 37,648 22,953 4,010 1,318 1,702 5,772 1,121 

9 Intra-AK Fuel Exp. 61 $25,940,426 $15,796,662 $1,932,570 $949,824 $3,364,521 $747,160 $1,231,763 

10 Intra-AK Skd. ATMs 51 51,542,016 33,882,543 2,631,729 2,507,027 6,231,3ll 1,109,832 1,858,029 

ll Unit Cost/ATM, Fuel71 $0.503287 $0.466218 $0.734335 $0.378865 $0.539938 $0.673219 $0.662941 

12 Intra-AK Mail RTMs 51 5,430,903 1,236,109 101,139 846,454 1,504,328 55,741 620,ll3 

13 RTM Percent of Total 81 100.01% 22.76% 1.86% 15.59% 27.70% 1.03% 11.42% 

14 Wtd. Cost/ATM, Fuel91 $0.52500 $0.106ll $0.01366 $0.05907 $0.14956 $0.00693 $0.07571 

ll Row 1 +Row 2. PenAir and Era do not report Schedule P12. Tatonduk. not used-- included for comparison purposes only. 

2/ Per Form 41 except for for PenAir and Era, where we rely on Schedule F2. As Lynden had not yet filed its entire Form 41, we relied on an advance 

by Lynden oftbis one line item from its Form 41. 

31Row4 +RowS. 

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

51 T -100 Segment Report, except for PenAir. For Penair we rely on its special report for scheduled mainline traffic -- Hours, ATMs, and Mail RTMs. 

For its domestic block hours, we exclude the carriers operations outside of Alaska. Intra-Alaska traffic is shown on its Schedule F2 and special report. 

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

For 3Z, 7H, and KS: Row 6 +Row 8 x Row 7. 

71 Row 9 +Row 10. 

81 Row 12 for each individual carrier+ Total Mail RTMs for all carriers on Row 12. 

91 Row l3 x Row 11 for individual carriers, and then summed across. 

3Z 3Z 

#461 640 

Brasilia DC-9-30 

37,969 479,248 

158 901 

$144,995 $1,804,292 

233 524 

240 532 

$140,766 $1,777,160 

200,131 3,121,414 

$0.703369 $0.569345 

84,768 982,251 

1.56% 18.09% 

$0.01097 $0.10299