### Order 2012-9-26 Served: September 28, 2012 UNITED STATES OFAMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department ofTransportation onthe 28ili ofSeptember, 2012 

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INTRA-ALASKA MAINLINE SERVICE MAIL RATES 

## Docket OST-2003-14695 (Docket 95-429) under 49 U.S.C. 41901 etse 

## FinalizingAnnual Update and Making QuarterlyFuelAdjustment 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 inthat Order. The deadline for objections has expired, and we have received no objections. We will therefore make final the rates set forth inthat 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 Orderto 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 ofthis Order, effective the second Saturday after the issue date ofthis Order; 3. This docket shall remain open until further Order ofthe Department; and 4. We will serve this order upon all parties onthe Service List for this Docket. Persons entitled to petition the Department for review ofthis Order underthe Department's Regulations, 14 CFR 385.50, must file such petitions within ten (10) days after the date ofservice of this Order. This Order will be effective immediately, and the filing ofa petition for review shall not preclude its effectiveness. By:
(SEAL) TODD M. HOMAN Director Office ofAviation Analysis An electronic version ofthis document is available onthe World Wide Web at http:/ /www.regulations.gov
1 Order 2012-9-4 indicatedthat the fmal order would update the rates tentatively setbythat 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) Change from Adjustment

Factors 2/ Final Rates 3/ Current Rate 4/ Current Rate 5/
Linehaul Charge perBilling Ton-Mile

197.10% 197.10% $3.5560 $2.1528

Terminal Charge perPound 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 ofthis order. Unlike the linehaul charge, the terminal charge will notchange from quarter to quarterwiththe 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 betweenpriority 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 CostperAvailable Ton-Mile

Fuel Nonfuel Total $0.399469 11
Percentage Change from Base Year
Unit Costper 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 ofOrder 2012-7-18. 3/Appendix C ofthis Order. 4/Appendix B ofOrder 2012-9-4. 

### 51 ($1.18684/$0.399469)-1. 6/Appendix B ofOrder 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, AlaskaAirlines, NorthernAir Cargo, Lynden Air Cargo, PeninsulaAirways, EraAviation, 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. NotbxAircraft 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 BxAircraft 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 BumperHour 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 ofTotal 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 +Row2. PenAir and Erado not report Schedule P12. Tatonduk. not used-- includedfor comparisonpurposes only. 2/PerForm 41 except for for PenAir and Era, where we rely on Schedule F2. As Lynden had not yet filed its entire Form41, werelied on an advance byLynden oftbis one line itemfrom its Form 41. 31Row4 +RowS. 41 PerForm 41 for Tatonduk, Schedule F2 for PenAir and Era. AS, L2, andNC are excluded, as we rely ontheir Schedule P12 above. 51 T-100 Segment Report, except for PenAir. ForPenairwerely on its special report for scheduled mainlinetraffic

-- Hours, ATMs, and Mail RTMs. Forits domestic blockhours, weexcludethe carriers operations outside ofAlaska. Intra-Alaskatraffic is shown onits Schedule F2 and special report. 61 ForAS, LC, andNC: Row 3 x Row 5x 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 onRow 12. 91 Row l3 x Row 11 for individual carriers, andthen 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