Order 2014-4-11

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 10th day of April, 2014 

 Served: April 10, 2013 

INTRA ALASKA BUSH MAIL RATES

 

 Under 49 U.S.C. § 41901 et seq

Docket OST-2003-14694

SHOW CAUSE ORDER PROPOSING UPDATED MAIL RATES

Summary

By this Order, the Department directs all interested parties to show-cause why the proposed 

Intra-Alaska bush service mail rates set forth below should not be made final. The rates 

currently in effect were tentatively set by Order 2013-6-5, made final by Order 2013-7-25, and 

updated for changes in quarterly fuel prices most recently by Order 2013-12-9. The table 

below shows the current and proposed rates.

Linehaul Rates per Revenue Ton Mile (RTM) and Terminal Rates per Ton Enplaned 1

Based on average eligible stage lengths of 270 miles for the Part 121 operators, 70 miles 

for the Part 135 operators, and 36 miles for Seaplane operators, these linehaul and terminal 

changes would have a net effect on each class as follows: Part 121, <4.99> percent; 

Part 135, 2.99 percent; and Seaplane, <1.42> percent.

 

1 The proposed rates are based on those shown in the appendices to this Order, including fuel and non-fuel 

linehaul expenses for the YE 9-30-13. When the final Order is issued, we will adjust the fuel portion of the 

rate shown in the appendices to the most recent quarterly fuel expenses available at the time, and will 

continue our practice of issuing quarterly fuel surcharges as more recent data become available.

Current, Order 2013-12-9 Proposed Percentage Change

Fuel Nonfuel Total Fuel Nonfuel Total Fuel Nonfuel Total

Part 121 $1.4876 $4.2600 $5.7476 $1.3092 $3.8900 $5.1992 -11.99% -8.69% -9.54%

Part 135 $4.5191 $10.4150 $14.9341 $4.4950 $10.8464 $15.3414 -0.53% 4.14% 2.73%

Seaplane $6.3505 $26.2478 $32.5983 $6.8840 $24.1305 $31.0145 8.40% -8.07% -4.86%

Terminal NA NA $850.03 NA NA $878.26 NA NA 3.32%
- 2 -

Background

Order 2013-6-5 directed the parties to show cause within twenty (20) days after the service 

date of the Order, June 26, 2013, why we should not make final the rates tentatively set by 

that Order. We received an objection from only one party, the Postal Service, arguing that 

“to properly gauge the true cost of any particular lane [class of traffic], the 

Department ought to consider all mail movement and all associated data [in that 

class] in determining mail rates.”

Order 2013-7-25, July 31, 2013, rejected the Postal Service’s argument and made final the 

annual rate updates tentatively set by Order 2013-6-5. Most recently, by Order 2013-12-9, 

December 19, 2013, we updated those rates for fuel expenses for the quarter ended 

June 30, 2013. 

Regarding the Postal Service’s objection, the Order indicated that, as a statutory matter, 

only carriers’ operations as bush passenger carriers in one of each of the three linehaul 

classes should be included in the calculation of each particular rate class. In brief, the 

Order recognized that Peninsula Airways, Inc. (PenAir), had indeed operated as a bush 

passenger carrier during the year ended September 30, 2012, in the Part 135 class, the 

annual period we relied on. Nevertheless, we did NOT include PenAir in the calculation of 

the Part 135 rate because PenAir had since discontinued all of its Part 135 passenger 

operations. The Order excluded PenAir’s Part 135 data because its “data were anomalous 

two years ago and they are anomalous now.” Essentially, including them would most 

likely distort the rates that would apply prospectively, and the ultimate goal of our rate 

calculations is to use historical results to make the most reasonable estimate of prospective 

mail rates. 

Decision and Discussion

Delays in Setting Mail Rates

The Department has stated that it would update bush nonfuel linehaul and terminal mail 

rates on an annual basis, and fuel expenses on a quarterly basis. Our goal continues to be 

having new annual updates finalized on or about six months after the end of the reporting 

period. That amount of time is needed because of the unavoidable lag between the carriers 

generating the data and then reporting it; the time required by the Office of Airline 

Information (OAI) to review and validate the data and then load that data into its data 

bases; and finally the time required by the Office of the Secretary to review that data, 

prepare a draft Order and for the Assistant Secretary to issue the decision. Because of the 

fewer issues involved in updating quarterly fuel expenses and because those Orders are 

issued on a final rather than a show cause basis, our goal is to have quarterly fuel updates 

in place on or about one quarter after the end of the reporting period. 

Because of the delay that occurred in the preceding annual update, Order 2013-6-5 

amended the annual update period from the year ended June 30, 2012, to September 30, 

2012, and indicated that the next annual update would also be based on the year ended

September 30, 2013. Because we are issuing this Order at this late date and the parties will 
- 3 -

be afforded twenty days to submit comments, we will again not meet our goal having a sixmonth lag between the end of the reporting period and the effective date of a new rate. 

OAI informed us that Ryan Air, Inc. (Ryan)2 had filed reliable data for the quarter ended 

September 30, 2013, on February 7, 2014.3 Likewise, Grant Aviation, Inc. (Grant), did not 

submit fully acceptable data for the quarter ended September 30, 2013, until late-January.4 

Such delays in carriers submitting reliable data confronts the Department with the dilemma 

of whether or not to exclude their data in the calculation of the rate.5 This issue was 

addressed most recently in the letter from OAI to the carriers dated February 11, 2014, 

included as Attachment E. In brief, carriers who are late in submitting any of the data 

required for calculating mail rates – Schedule F-2 and T-100 – would receive decreasing 

volumes of mail as their delay in submitting reliable data increases. OAI is in the process 

of implementing this, and we anticipate that, in the future, delay in receiving reliable data, 

and therefore delay in issuing mail rates, will decrease. 

Inclusion of Carrier Data

Perhaps the biggest issue during the last annual update was whether to include or exclude 

PenAir’s data. (See Orders 2013-6-5 and 2013-7-25). Those orders excluded PenAir from 

the calculation of the Part 135 rate because it only conducted all-cargo operations in that 

class and a carrier must have at least some bush passenger operations in the rate class at 

issue for it to be included. For that same reason we will again exclude PenAir from the 

calculation of the Part 135 class rate. However, we note that we propose to continue to 

include PenAir’s data in the calculation of the Part 121 and Terminal portions of intraAlaska mail rates, because the carrier has eligible operations in those classes of service.

For the first time we propose in this update to include the data of Ryan Air. Until the 

current year, Ryan did not conduct any scheduled passenger operations. Ryan began 

providing that service in May, 2013, and has continued to provide that service through the 

most recent time period we have available, i.e., the month of February 2014. 

Adjustment of Data

We have adjusted the data of Wright Air Service. When we update mail rates we use 

historical circuity, the ratio of T-100 Segment to T-100 Market Mail RTMs, to estimate 

prospective circuity. As shown in Attachment B, Appendix E, Wright’s circuity for the 

year ended September 30, 2013, was 24.22 percent. Without any adjustment, that result 

reflects the highest value of any of the carriers. Upon review, in the months of November 

and December of 2012 Wright reported circuity of more than 500 percent. By excluding 

 

2 The carrier had operated with a d/b/a of Arctic Transportation Services until January 2011.

3 The carrier’s earlier data filings had been rejected by OAI as unreliable.

4Grant still has some problems with its data, as shown in Attachment B, Appendix C-2, where the total block 

hours the carrier reports are shown to be less than the revenue block hours it reports.

5 In brief, such delays confront the Department with the dilemma of whether or not to exclude the data of a 

carrier that should otherwise be included in the calculation of the rate, or to wait perhaps a few more days for 

reliable data, which could ultimately turn into weeks, to be filed. 
- 4 -

the data for those two months, Wright’s circuity for the remaining ten months decreases to 

8.43 percent, which is close to the level it reported in the prior annual period. 

We have not adjusted the data of Grant Aviation. As shown on Attachment B, 

Appendix C-2, Grant reports having more revenue block hours than total block hours. We 

have tentatively accepted Grant’s data, using the traditional revenue block hours it reported 

to calculate unit costs. It appears that its total block hours are understated, but its revenue 

block hours are accurate. 

ACCORDINGLY,

1. We direct all interested persons to show cause, no later than twenty (20) days after the 

date of service of this order, why the Department should not adopt the foregoing tentative 

findings and conclusions and set mail rates as follows: Part 121 linehaul class rate, $5.1992

per mail revenue ton mile (RTM); Part 135 linehaul class rate, $15.3414 per RTM; 

Seaplane linehaul class rate, $31.0145 per RTM; and Terminal class rate, $878.26 per mail 

ton enplaned. These rates would be final (subject to quarterly fuel updates), until the next 

annual update, which we anticipate would be on or about May 1, 2015;

2. If no objection is filed within the designated time, or if no timely-filed objection raises 

material issues of fact, we hereby delegate authority to the Director, Office of Aviation 

Analysis, to make the above rates final;

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 these Dockets.

By: 

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Attachment A

Linehaul, Part 121

Appendix A

Calculation of the Linehaul, Part 121, YE 9-30-13

(1) (2) (3) (4) (5) (6)

Avg. Annual

Change, Midpoint to Estimated

Year Ended YE 6/30/04 Midpoint Unit Cost at Current Rate Change from

9/30/2013 1/ to YE 9/30/12 2/ Change 3/ 10/1/2014 4/ Order 2013-12-9 Current 5/

Unit Cost per

Revenue Ton-Mile

Fuel $1.3092 0 0 $1.3092 $1.4876 -11.99%

Nonfuel $3.7773 1.94% 2.93% $3.89 $4.2600 -8.69%

$5.0865 $5.1992 $5.7476 -9.54%

1/ Fuel, Appendix C2; Nonfuel, Appendix C-1.

2/ We assume fuel increases will b ezero. For nonfuel, see "predicted annual increased" in Appendix B, Page 1.

3/ Reflects the fact that from the midpoint of the reporting period to the midpoint of ther prospective

rate is 1 and 1/2 years. 1.0194 x 1.0097 = 1.0293, where 1.0293 is the average annual unit cost increase projected for

a 6-month period.

4/ Fuel reflects YE 9-30-13, Appendix C-2. Nonfuel is column (1) mulitplied by Column (3). 

The total is the sum of the two. The final order will reflect the most recent quarterly fuel costs available at the time.

5/ Column 4 ÷ Column 5 less 1.
Attachment A

Linehaul, Part 121

Appendix B

Page 1 of 2

Actual Y

Natural Log

$/RTM $/RTM Predicted

Non-Fuel Non-Fuel Annual 

Linehaul Linehaul 1/ Predicted Y Residuals EXP (Y) Increase

6/30/2004 3.4924 1.2506 1.2643 -0.0137 3.5406 1.94%

6/30/2005 3.4511 1.2387 1.2835 -0.0448 3.6093

6/30/2006 3.4450 1.2369 1.3026 -0.0657 3.6788

6/30/2007 3.6835 1.3039 1.3218 -0.0179 3.7502

6/30/2008 4.1265 1.4174 1.3409 0.0765 3.8225

6/30/2009 4.1315 1.4186 1.3601 0.0585 3.8966

6/30/2010 4.5669 1.5188 1.3792 0.1396 3.9717

9/30/2012 4.0649 1.4024 1.4224 -0.0200 4.1471

9/30/2013 3.7773 1.3290 1.4416 -0.1125 4.2275

ANOVA

df SS MS F Significance F

Regression 1.0000 0.0294 0.0294 4.2227 0.0790

Residual 7.0000 0.0487 0.0070

Total 8.0000 0.0780

Coefficients Std Error t Stat P-value Lower 95% Upper 95%

Intercept -0.7377 1.0145 -0.7272 0.4907 -3.1367 1.6613

X Variable 1 0.0001 0.0000 2.0549 0.0790 0.0000 0.0001

Regression Statistics

Multiple R 0.6134

R Square 0.3763

Adj. R Square 0.2872

Std. Error 0.0834

Observations 9

1/ Per Oder 2013-6-5, made final by Order 2013-7-25, and Appendix D of this attachment 

for the YE 9-30-13.
Attachment A

Linehaul, Part 121

Appendix B

Page 2 of 2

y = 5E-05x - 0.7375

R2 = 0.3763

1.20

1.25

1.30

1.35

1.40

1.45

1.50

1/14/04 5/28/05 10/10/06 2/22/08 7/6/09 11/18/10 4/1/12 8/14/13

Unit Cost per RTM, Natural Log

Years Ended June 30, 2004, through September 30, 2013

Nonfuel Linehaul, Unit Cost per RTM, 

Actual vs. Predicted
Attachment A

Linehaul, Part 121

Appendix C-1

Page 1 of 1

Year Ended September 30, 2013

System Parameters for Each Carrier Era Aviation PenAir

1 . Capacity Related Expense (CR) $9,627,922 $6,771,335

2 . Direct Expense, Includes Fuel $47,943,132 $51,005,373

3 . Indirect Expense $24,823,971 $23,963,014

4 . CR Markup 15.25% 9.93%

5 . Return and Tax Markup 9.46% 9.46%

6 . T-100 Seg. Mail RTMs 345,005 1,449,762

7 . T-100 Mkt. Mail RTMs 343,217 1,404,935

8 . Circuity Markup 0.52% 3.19%

By Aircraft Type B-1900 Saab 340B

Aircraft Code Total 405 456

9 . Direct Expense, Includes Fuel $16,060,481 $45,453,050

10 . Less Psgr. Liability Insurance $158,539 $670,002

11 . Linehaul Expense Allocable to Mail $15,901,942 $44,783,048

12 . Cost per Block Hour (R11÷ R18) $1,388.82 $1,749.95

13 . Marked Up Costs (R11*R4*R5*R8) $20,165,037 $55,606,164

14 . Eligible Expense (R13*R32÷R18) $2,971,041 $24,423,168

15 . Eligible Cost per RTM (R14÷R36) $6.7825 $4.7416

16 . Percentage of Eligible Mail RTMs 100.00% 16.90% 83.10%

17 . Cost Wtd. By Mail RTMs (R15*R16) $5.0865 $1.1462 $3.9403

Scheduled + Nonscheduled Traffic

18 . Block Hours, T-100 11,450 25,591

19 . Pax RTMs 2,389,257 9,423,640

20 . Frt RTMs Wtd. @ 0.75 35,017 178,758

21 . Mail RTMs 55,635 469,332

22 . Total RTMs 2,479,908 10,071,730

23 . Aircraft Miles 2,155,886 5,857,075

24 . Available Ton Miles (ATMs) 4,090,629 20,617,133

25 . Departures Performed 14,232 15,393

26 . Wtd. Deps. (GTOW) 239,098 446,397

27 . Ton Load Factor 60.62% 48.85%

28 . Stage Length 151 381

29 . ATMs per Mile 1.90 3.52

30 . RTMs per Mile 1.15 1.72

31 . RTMs per Hour 217 394

Eligible Traffic

32 . Block Hours, T-100 1,687 11,240

33 . Pax RTMs 401,032 4,874,609

34 . Frt RTMs Wtd. @ 0.75 5,874 123,072

35 . Mail RTMs 184,260 31,136 153,124

36 . Total RTMs 438,043 5,150,804

37 . Aircraft Miles 8,012,961 360,270 2,916,022

38 . Available Ton Miles (ATMs) 670,191 9,695,372

39 . Departures Performed 29,625 1,367 4,640

40 . Wtd. Deps. (GTOW) 22,966 134,560

41 . Ton Load Factor 65.36% 53.13%

42 . Stage Length 270 264 628

43 . ATMs per Mile 1.86 3.32

44 . RTMs per Mile 1.22 1.77

45 . RTMs per Hour 260 458
Attachment A

Linehaul, Part 121

Appendix C-2

Page 1 of 1

Fuel Expense, Year Ended September 30, 2013

Carrier Era Aviation PenAir

By Aircraft Type B-1900 Saab 340B

Aircraft Code Total 405 456

1 . Total Fuel Expense $5,539,625 $14,032,129

2 . Total Gallons Issued 1,492,230 3,497,274

3 Total Block Hours, Schedule F-2 11,931 26,409

4 . Total Block Hours, T-100 Segment 11,450 25,591

5 . Eligible Block Hours, , T-100 Segment 1,687 11,240

6 . Eligible Mail RTMs, T-100 Segment 184,260 31,136 153,124

7 . Subtotal, Total Eligible RTMs, T-100 Segment 438,043 5,150,804

8 . Price per Gallon $3.71 $4.01

9 . Burn per Revenue Block Hour 130 137

10 . Costs per Hour $483.81 $548.32

11 . Eligible Fuel Expense $816,188 $6,163,148

12 . Cost per Eligible RTM $1.8633 $1.1965

13 . Mail RTMs, Percentage 100.00% 16.90% 83.10%

14 . Cost/RTM, Wtd. By Mail RTMs $1.3092 $0.3149 $0.9943

Ratio of Total to Revenue Block Hours 4.20% 3.20%
Attachment A

Linehaul, Part 121

Appendix D

Determination of Which Carriers are Included in the Part 121 Class Rate, YE 9-30-13

One Percent Rule

Eligible Cumulative

Carrier 2-Ltr. A/C Type Mail RTMs Percent Percent

PenAir KS 456 153,124 83.10% 83.10%

Era 7H 405 31,136 16.90% 100.00%

184,260 100.00%

Note: We have relied on a special report prepared by PenAir which shows

whether a particular segment operated as Mainline, Part 121, or Part 135.

The above reflects Part 121 operations only.
Attachment A

Appendix E

Circuity Calculation, Intra-AK Mail Revenue Ton Miles (RTMs), YE 9-30-13

Segment Market

Carrier Mail RTMs Mail RTMs Circuity

40-Mile 1,081 895 20.78%

Air Excursions 12,724 12,681 0.34%

Alaska Seaplane 14,986 13,916 7.69%

Arctic Transportation 443,806 387,421 14.55%

Bering Air 362,155 347,018 4.36%

Ellis Air Taxi 1,687 1,687 0.00%

Era Aviation 345,005 343,217 0.52%

Grant 318,724 297,261 7.22%

Hageland 1,664,766 1,597,951 4.18%

Iliamna 5,797 5,295 9.48%

Island Air 6,012 5,260 14.30%

Pacific 7,999 7,700 3.88%

Peninsula 1,449,762 1,404,935 3.19%

PM Air 7,155 6,693 6.90%

SeaPort 16,519 16,456 0.38%

Servant 2,020 1,840 9.78%

Smokey Bay 857 821 4.38%

Spernak 1,306 1,189 9.84%

Tanana 2,529 2,483 1.85%

Tatonduk 7,021,192 6,714,341 4.57%

Venture 26,105 24,094 8.35%

Warbelow 70,382 68,154 3.27%

Ward Air 21 20 5.00%

Wright 1/ 164,581 151,792 8.43%

Yute 91,013 85,217 6.80%

12,038,184 11,498,337 4.70%

1/ For Wright, we relied on reported figures, but excluded the months of November 

and December, 2012, shown as follows:

Total, YE 9-30-13 194,581 156,645 24.22%

less November 2012 17,999 2,960 508.07%

less December 2012 12,001 1,893 533.97%

Total 164,581 151,792 8.43%
Appendix F

Determination of Segments Ineligible for Calculating Bush Rates,

Scheduled Intra-Alaska Departures Performed with Mainline Equipment

T-100 Segment Report, QE 9-30-13, Seven or More Departures Performed 1/

Total Total 

Orig Dest Deps. Orig Dest Deps.

ADK ANC 26 EMK ANC 53

ADQ ANC 679 ENA ANC 526

AKN ANC 193 FAI ANC 1005

AKN DLG 10 FAI SCC 169

AKN ILI 16 GAL ANC 35

ANC ADK 26 GST JNU 52

ANC ADQ 643 HOM ADQ 40

ANC AKN 196 HOM ANC 250

ANC ANC 27 ILI ANC 23

ANC ANI 122 JNU ANC 479

ANC BET 666 JNU GST 52

ANC BRW 106 JNU KTN 93

ANC CDV 110 JNU PSG 92

ANC DLG 199 JNU SIT 362

ANC EMK 55 JNU YAK 93

ANC ENA 523 KSM ANC 116

ANC FAI 1013 KSM ANI 7

ANC GAL 30 KTN ANC 8

ANC HOM 289 KTN JNU 205

ANC ILI 7 KTN SIT 152

ANC JNU 467 KTN WRG 89

ANC KSM 113 MCG ANC 49

ANC MCG 34 OME ANC 295

ANC OME 290 OME OTZ 118

ANC OTZ 348 OME UNK 13

ANC SCC 102 OTZ ANC 299

ANC TOG 31 OTZ OME 146

ANC UNK 178 PSG JNU 90

ANC VDZ 154 PSG WRG 92

ANC YAK 26 SCC ANC 58

ANI ANC 120 SCC BRW 262

ANI KSM 8 SCC FAI 85

ANI MCG 11 SIT JNU 241

BET ANC 603 SIT KTN 208

BET ANI 13 TOG ANC 39

BRW ANC 149 UNK ANC 184

BRW FAI 92 UNK MCG 8

BRW SCC 124 VDZ ANC 151

CDV ANC 108 WRG KTN 91

CDV YAK 92 WRG PSG 88

DLG AKN 23 YAK CDV 91

DLG ANC 113 YAK JNU 116

1/ Includes the mainline operations of PenAir
Appendix G

Carriers Reporting Intra-Alaska Operations for YE 9-30-13

Excluded from Calculations of the Bush Rates

Reason for Exclusion

No Mainline No No

Mail Only Pax. Skd. Pax.

Al.Central ----- ----- ----- X

Alaska ----- X ----- -----

Atlas Air X X ----- -----

Avjet Corp X ----- ----- -----

Condor X X ----- -----

Delta X X ----- -----

Empire X X ----- -----

Fed Ex X ----- ----- -----

Frontier ----- ----- X -----

Harris Air X ----- ----- -----

Homer Air X ----- ----- -----

Katmai X ----- ----- -----

Lynden ----- X ----- -----

Miami Air X X ----- -----

Northern ----- X ----- -----

Polar Air X X ----- -----

Prescott X ----- ----- -----

S. Pacific X X ----- -----

Sun Country X X ----- -----

Swiss Air X ----- ----- -----

United X ----- ----- -----

UPS X X ----- -----

World X X ----- -----
Attachment B

Linehaul, Part 135

Appendix A

Calculation of the Linehaul, Part 135, YE 9-30-13

(1) (2) (3) (4) (5) (6)

Avg. Annual

Change, Midpoint to Estimated

Year Ended YE 6/30/04 Midpoint Unit Cost at Current Rate, Change from

9/30/2013 1/ to YE 9/30/13 2/ Change 3/ 10/1/2014 4/ Order 2013-12-9 Current 5/

Unit Cost per

Revenue Ton-Mile

Fuel $4.4950 0 0 $4.4950 $4.5191 -0.53%

Nonfuel $10.5489 1.87% 2.82% $10.8464 $10.4150 4.14%

Total $15.0439 $15.3414 $14.9341 2.73%

1/ Fuel, Appendix C2, Nonfuel, Appendix C-1 of this Order.

2/ We assume fuel increases will be zero. For nonfuel, see "predicted annual increase" in Appendix B, Page 1.

3/ Reflects the fact that from the midpoint of the reporting period to the midpoint of the prospective

rate is 1 and 1/2 years. 1.0187 x 1.00935 = 2.822, where 0.00935 is the average annual unit cost increase projected for

a 6-month period.

4/ Fuel reflects YE 9-30-13, Appendix C-2. Nonfuel is Column (1) mulitplied by Column (3). 

The total is the sum of the two. The final order will reflect the most recent quarterly fuel costs available at the time.

5/ Column 4 ÷ Column 5 less 1.
Attachment B

Linehaul, Part 135

Appendix B

Page 1 of 2

Actual Y

1/ Natural Log

$/RTM $/RTM Predicted 

Time Nonfuel Nonfuel Annual 

Period Linehaul Linehaul Predicted Y Residuals EXP(Y) Increase

6/30/2004 $9.5218 2.253584 2.143353 0.110231 8.527982177 1.87%

6/30/2005 $8.5699 2.148256 2.161911 -0.01365 8.68772027

6/30/2006 $8.4039 2.128696 2.180468 -0.05177 8.850450426

6/30/2007 $8.6708 2.159961 2.199026 -0.03907 9.016228689

6/30/2008 $8.6853 2.161632 2.217635 -0.056 9.185579167

6/30/2009 $9.6160 2.263428 2.236193 0.027235 9.357634745

6/30/2010 $9.1547 2.214267 2.25475 -0.04048 9.532913105

9/30/2012 $10.1679 2.319236 2.296594 0.022642 9.940271625

9/30/2013 $10.5489 2.356022 2.315152 0.04087 10.12646339

ANOVA

df SS MS F Significance F

Regression 1 0.027577935 0.027578 7.962676 0.025705997

Residual 7 0.024243803 0.003463

Total 8 0.051821738

Coefficients Std. Error t Stat P-value Lower 95% Upper 95%

Intercept 0.202767 0.716125333 0.283145 0.785256 -1.490599893 1.896134767

X Variable 1 5.08E-05 1.80179E-05 2.821821 0.025706 8.23773E-06 9.34488E-05
Attachment B

Linehaul, Part 135

Appendix B

Page 2 of 2

y = 5E-05x + 0.2028

R2 = 0.5322

2.10

2.15

2.20

2.25

2.30

2.35

2.40

Jan-04 May-05 Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13 Dec-14

Unit Cost per RTM, Natural Log

Years Ended June 30, 2004, through September 30, 2013

Nonfuel Linehaul, Unit Cost per RTM, 

Actual vs. Predicted
Attachment B

Linehaul, Part 135

Appendix C-1

Page 1 of 4

Year Ended September 30, 2013

System Parameters for Each Carrier Total Bering Bering Bering Bering

1 . Capacity Related Expense (CR) $1,578,337 $1,578,337 $1,578,337 $1,578,337

2 . Direct Expense, Includes Fuel $19,282,106 $19,282,106 $19,282,106 $19,282,106

3 . Indirect Expense $5,776,372 $5,776,372 $5,776,372 $5,776,372

4 . CR Markup 6.72% 6.72% 6.72% 6.72%

5 . Return and Tax Markup 9.46% 9.46% 9.46% 9.46%

6 . T-100 Seg. Mail RTMs 362,155 362,155 362,155 362,155

7 . T-100 Mkt. Mail RTMs 347,018 347,018 347,018 347,018

8 . Circuity Markup (R6÷R7)-1 4.36% 4.36% 4.36% 4.36%

By Aircraft Type Navajo B-1900 Casa Caravan

Aircraft Code 194 405 412 416

9 . Direct Expense, Includes Fuel $3,222,800 $3,321,061 $1,188,819 $7,862,210

10 . Less Psgr. Liability Insurance $37,695 $45,674 $14,950 $95,873

11 . Linehaul Expense Allocable to Mail $3,185,105 $3,275,387 $1,173,869 $7,766,337

12 . Cost per Block Hour (R11÷ R18) $725.37 $2,306.61 $2,177.86 $996.45

13 . Marked Up Costs (R11*R4*R5*R8) $3,882,926 $3,992,988 $1,431,051 $9,467,854

14 . Eligible Expense (R13*R32÷R18) $2,714,776 $2,766,972 $934,564 $8,663,682

15 . Eligible Cost per RTM (R14÷R36) $15.6785 $15.8641 $19.7061 $15.6873

16 . Percentage of Eligible Mail RTMs 100.00% 1.520% 2.822% 1.486% 7.837%

17 . Cost Wtd. By Mail RTMs (R15*R16) $15.0439 $0.2383 $0.4477 $0.2928 $1.2294

Scheduled + Nonscheduled Traffic

18 . Block Hours, T-100 4,391 1,420 539 7,794

19 . Pax RTMs 188,269 165,078 219 345,727

20 . Frt RTMs Wtd. @ 0.75 11,783 8,505 27,351 39,601

21 . Mail RTMs 39,717 73,194 39,532 203,388

22 . Total RTMs 239,769 246,777 67,102 588,716

23 . Aircraft Miles 669,075 325,964 83,218 1,094,200

24 . Available Ton Miles (ATMs) 585,441 814,910 218,447 1,627,256

25 . Departures Performed 8,505 1,995 770 16,023

26 . Wtd. Deps. (GTOW) 62,937 33,516 13,090 142,605

27 . Ton Load Factor 40.96% 30.28% 30.72% 36.18%

28 . Stage Length 79 163 108 68

29 . ATMs per Mile 0.88 2.50 2.62 1.49

30 . RTMs per Mile 0.36 0.76 0.81 0.54

31 . RTMs per Hour 55 174 124 76

Eligible Traffic

32 . Block Hours, T-100 3,070 984 352 7,132

33 . Pax RTMs 124,440 93,735 0 313,574

34 . Frt RTMs Wtd. @ 0.75 9,300 7,490 8,899 35,453

35 . Mail RTMs 2,593,371 39,413 73,192 38,526 203,246

36 . Total RTMs 173,153 174,417 47,425 552,273

37 . Aircraft Miles 15,284,566 460,909 218,506 54,223 999,166

38 . Available Ton Miles (ATMs) 403,295 546,265 142,335 1,484,635

39 . Departures Performed 221,967 6,509 1,587 552 15,031

40 . Wtd. Deps. (GTOW) 48,167 26,662 9,384 133,776

41 . Ton Load Factor 42.93% 31.93% 33.32% 37.20%

42 . Stage Length 69 71 138 98 66

43 . ATMs per Mile 0.87 2.50 2.62 1.49

44 . RTMs per Mile 0.38 0.80 0.87 0.55

45 . RTMs per Hour 56 177 135 77
System Parameters for Each Carrier

1 . Capacity Related Expense (CR)

2 . Direct Expense, Includes Fuel

3 . Indirect Expense

4 . CR Markup

5 . Return and Tax Markup

6 . T-100 Seg. Mail RTMs

7 . T-100 Mkt. Mail RTMs

8 . Circuity Markup (R6÷R7)-1

By Aircraft Type

Aircraft Code

9 . Direct Expense, Includes Fuel

10 . Less Psgr. Liability Insurance

11 . Linehaul Expense Allocable to Mail

12 . Cost per Block Hour (R11÷ R18)

13 . Marked Up Costs (R11*R4*R5*R8)

14 . Eligible Expense (R13*R32÷R18)

15 . Eligible Cost per RTM (R14÷R36)

16 . Percentage of Eligible Mail RTMs 

17 . Cost Wtd. By Mail RTMs (R15*R16)

Scheduled + Nonscheduled Traffic

18 . Block Hours, T-100

19 . Pax RTMs

20 . Frt RTMs Wtd. @ 0.75

21 . Mail RTMs

22 . Total RTMs

23 . Aircraft Miles

24 . Available Ton Miles (ATMs)

25 . Departures Performed

26 . Wtd. Deps. (GTOW)

27 . Ton Load Factor

28 . Stage Length

29 . ATMs per Mile

30 . RTMs per Mile

31 . RTMs per Hour

Eligible Traffic

32 . Block Hours, T-100

33 . Pax RTMs

34 . Frt RTMs Wtd. @ 0.75

35 . Mail RTMs

36 . Total RTMs

37 . Aircraft Miles

38 . Available Ton Miles (ATMs)

39 . Departures Performed

40 . Wtd. Deps. (GTOW)

41 . Ton Load Factor

42 . Stage Length

43 . ATMs per Mile

44 . RTMs per Mile

45 . RTMs per Hour

Attachment B

Linehaul, Part 135

Appendix C-1

Page 2 of 4

Year Ended September 30, 2013

Grant Grant Hageland Hageland Hageland

$3,135,609 $3,135,609 $7,389,003 $7,389,003 $7,389,003

$17,807,304 $17,807,304 $56,370,678 $56,370,678 $56,370,678

$12,485,995 $12,485,995 $21,479,705 $21,479,705 $21,479,705

11.55% 11.55% 10.49% 10.49% 10.49%

9.46% 9.46% 9.46% 9.46% 9.46%

318,724 318,724 1,664,766 1,664,766 1,664,766

297,261 297,261 1,597,951 1,597,951 1,597,951

7.22% 7.22% 4.18% 4.18% 4.18%

C-207 Caravan C-207 Navajo B-1900

35 416 35 194 405

$2,049,517 $9,903,877 $7,520,599 $5,361,277 $15,475,223

$40,004 $244,109 $184,687 $102,080 $72,779

$2,009,513 $9,659,768 $7,335,912 $5,259,197 $15,402,444

$275.77 $609.41 $365.03 $737.00 $1,722.29

$2,630,823 $12,646,418 $9,243,084 $6,626,470 $19,406,732

$2,505,546 $8,697,953 $7,780,067 $5,675,586 $10,895,807

$15.0459 $13.8422 $19.1619 $17.3140 $13.5592

1.814% 9.404% 4.019% 3.140% 13.941%

$0.2729 $1.3017 $0.7701 $0.5437 $1.8903

7,287 15,851 20,097 7,136 8,943

122,831 673,774 343,908 278,864 591,534

4,123 23,605 11,670 7,338 144,274

47,193 244,452 104,737 82,814 855,976

174,147 941,831 460,315 369,016 1,591,784

712,272 1,868,390 1,810,282 969,107 1,819,435

427,364 2,615,746 1,221,951 1,066,190 4,396,297

17,405 27,076 41,351 11,615 10,293

64,398 240,976 152,999 85,951 172,922

40.75% 36.01% 37.67% 34.61% 36.21%

41 69 44 83 177

0.60 1.40 0.68 1.10 2.42

0.24 0.50 0.25 0.38 0.87

24 59 23 52 178

6,940 10,902 16,916 6,112 5,021

115,622 364,612 291,169 239,642 368,041

3,861 19,860 10,617 6,723 73,995

47,044 243,891 104,232 81,439 361,537

166,527 628,363 406,018 327,804 803,573

673,931 1,314,614 1,503,365 827,406 977,227

404,360 1,840,460 1,014,782 910,169 2,257,119

16,816 17,814 35,649 10,043 7,099

62,219 158,545 131,901 74,318 119,263

41.18% 34.14% 40.01% 36.02% 35.60%

40 74 42 82 138

0.60 1.40 0.68 1.10 2.31

0.25 0.48 0.27 0.40 0.82

24 58 24 54 160
System Parameters for Each Carrier

1 . Capacity Related Expense (CR)

2 . Direct Expense, Includes Fuel

3 . Indirect Expense

4 . CR Markup

5 . Return and Tax Markup

6 . T-100 Seg. Mail RTMs

7 . T-100 Mkt. Mail RTMs

8 . Circuity Markup (R6÷R7)-1

By Aircraft Type

Aircraft Code

9 . Direct Expense, Includes Fuel

10 . Less Psgr. Liability Insurance

11 . Linehaul Expense Allocable to Mail

12 . Cost per Block Hour (R11÷ R18)

13 . Marked Up Costs (R11*R4*R5*R8)

14 . Eligible Expense (R13*R32÷R18)

15 . Eligible Cost per RTM (R14÷R36)

16 . Percentage of Eligible Mail RTMs 

17 . Cost Wtd. By Mail RTMs (R15*R16)

Scheduled + Nonscheduled Traffic

18 . Block Hours, T-100

19 . Pax RTMs

20 . Frt RTMs Wtd. @ 0.75

21 . Mail RTMs

22 . Total RTMs

23 . Aircraft Miles

24 . Available Ton Miles (ATMs)

25 . Departures Performed

26 . Wtd. Deps. (GTOW)

27 . Ton Load Factor

28 . Stage Length

29 . ATMs per Mile

30 . RTMs per Mile

31 . RTMs per Hour

Eligible Traffic

32 . Block Hours, T-100

33 . Pax RTMs

34 . Frt RTMs Wtd. @ 0.75

35 . Mail RTMs

36 . Total RTMs

37 . Aircraft Miles

38 . Available Ton Miles (ATMs)

39 . Departures Performed

40 . Wtd. Deps. (GTOW)

41 . Ton Load Factor

42 . Stage Length

43 . ATMs per Mile

44 . RTMs per Mile

45 . RTMs per Hour

Attachment B

Linehaul, Part 135

Appendix C-1

Page 3 of 4

Year Ended September 30, 2013

Hageland Hageland Ryan Air Ryan Air Warbelow

$7,389,003 $7,389,003 $1,699,423 $1,699,423 $276,182

$56,370,678 $56,370,678 $6,799,190 $6,799,190 $6,370,118

$21,479,705 $21,479,705 $4,268,315 $4,268,315 $1,050,929

10.49% 10.49% 18.14% 18.14% 3.87%

9.46% 9.46% 9.46% 9.46% 9.46%

1,664,766 1,664,766 443,806 443,806 70,382

1,597,951 1,597,951 387,421 387,421 68,154

4.18% 4.18% 14.55% 14.55% 3.27%

Caravan C-406 C-207 Casa Navajo

416 417 35 412 194

$24,233,102 $3,756,952 $1,525,339 $6,746,990 $6,369,708

$266,182 $47,654 $6,744 $0 $72,039

$23,966,920 $3,709,298 $1,518,595 $6,746,990 $6,297,669

$921.95 $1,394.47 $369.04 $1,508.04 $566.49

$30,197,779 $4,673,632 $2,249,518 $9,994,419 $7,394,343

$27,262,336 $4,294,119 $2,234,211 $9,219,260 $4,703,858

$14.8902 $17.8204 $23.0348 $15.6344 $11.5439

21.304% 2.355% 3.017% 13.755% 2.712%

$3.1722 $0.4197 $0.6950 $2.1505 $0.3131

25,996 2,660 4,115 4,474 11,117

1,306,209 189,319 4,347 0 594,137

84,610 4,690 15,123 266,124 47,058

560,005 61,165 78,248 356,728 70,382

1,950,824 255,174 97,718 622,852 711,577

3,297,757 455,647 413,409 600,956 1,598,730

5,606,193 683,471 263,559 1,682,690 1,462,421

44,962 4,537 7,322 6,883 11,468

400,162 44,916 27,091 117,011 84,863

34.80% 37.34% 37.08% 37.02% 48.66%

73 100 56 87 139

1.70 1.50 0.64 2.80 0.91

0.59 0.56 0.24 1.04 0.45

75 96 24 139 64

23,469 2,444 4,087 4,127 7,072

1,202,616 175,796 4,070 0 291,492

75,774 4,108 14,675 232,951 45,640

552,499 61,062 78,248 356,727 70,344

1,830,889 240,966 96,993 589,678 407,476

2,962,096 416,324 410,751 553,398 1,019,889

5,035,569 624,486 261,865 1,549,528 874,325

40,962 4,217 7,295 6,473 8,221

364,562 41,748 26,992 110,041 60,835

36.36% 38.59% 37.04% 38.06% 46.60%

72 99 56 85 124

1.70 1.50 0.64 2.80 0.86

0.62 0.58 0.24 1.07 0.40

78 99 24 143 58
System Parameters for Each Carrier

1 . Capacity Related Expense (CR)

2 . Direct Expense, Includes Fuel

3 . Indirect Expense

4 . CR Markup

5 . Return and Tax Markup

6 . T-100 Seg. Mail RTMs

7 . T-100 Mkt. Mail RTMs

8 . Circuity Markup (R6÷R7)-1

By Aircraft Type

Aircraft Code

9 . Direct Expense, Includes Fuel

10 . Less Psgr. Liability Insurance

11 . Linehaul Expense Allocable to Mail

12 . Cost per Block Hour (R11÷ R18)

13 . Marked Up Costs (R11*R4*R5*R8)

14 . Eligible Expense (R13*R32÷R18)

15 . Eligible Cost per RTM (R14÷R36)

16 . Percentage of Eligible Mail RTMs 

17 . Cost Wtd. By Mail RTMs (R15*R16)

Scheduled + Nonscheduled Traffic

18 . Block Hours, T-100

19 . Pax RTMs

20 . Frt RTMs Wtd. @ 0.75

21 . Mail RTMs

22 . Total RTMs

23 . Aircraft Miles

24 . Available Ton Miles (ATMs)

25 . Departures Performed

26 . Wtd. Deps. (GTOW)

27 . Ton Load Factor

28 . Stage Length

29 . ATMs per Mile

30 . RTMs per Mile

31 . RTMs per Hour

Eligible Traffic

32 . Block Hours, T-100

33 . Pax RTMs

34 . Frt RTMs Wtd. @ 0.75

35 . Mail RTMs

36 . Total RTMs

37 . Aircraft Miles

38 . Available Ton Miles (ATMs)

39 . Departures Performed

40 . Wtd. Deps. (GTOW)

41 . Ton Load Factor

42 . Stage Length

43 . ATMs per Mile

44 . RTMs per Mile

45 . RTMs per Hour

Attachment B

Linehaul, Part 135

Appendix C-1

Page 4 of 4

Year Ended September 30, 2013

Wright Yute

$1,089,223 $410,823

$9,996,690 $4,923,656

$3,129,853 $1,994,818

9.05% 6.31%

9.46% 9.46%

164,581 1/ 91,013

151,792 1/ 85,217

8.43% 1/ 6.80%

Caravan C-207

416 35

$7,978,850 $4,923,656

$120,328 $128,689

$7,858,522 $4,794,967

$602.65 $310.51

$10,171,182 $5,959,179

$9,018,344 $5,033,002

$8.5330 $19.3287

7.363% 3.509%

$0.6283 $0.6782

13,040 15,442

772,027 185,868

188,930 12,854

190,991 91,013

1,151,948 289,735

1,941,406 1,377,357

2,301,932 800,667

12,754 38,374

113,511 141,984

50.04% 36.19%

152 36

1.19 0.58

0.59 0.21

88 19

11,562 13,042

713,717 159,572

152,200 9,805

190,958 91,013

1,056,875 260,390

1,709,803 1,182,958

2,028,371 695,733

11,595 32,104

103,196 118,785

52.10% 37.43%

147 37

1.19 0.59

0.62 0.22

91 20

1/ YE 9-30-13 less results for November and December of 2012.
Attachment B

Linehaul, Part 135

Appendix C-2

Page 1 of 3

Year Ended September 30, 2013

Carrier Bering Bering Bering Bering

By Aircraft Type Navajo B-1900 Casa Caravan

Aircraft Code Total 194 405 412 416

1 . Total Fuel Expense $1,377,883 $1,430,316 $469,461 $2,903,366

2 . Total Gallons Issued 175,051 214,132 70,112 434,092

3 Total Block Hours, Schedule F-2 4,503 1,472 581 7,981

4 . Total Block Hours, T-100 Segment 4,391 1,420 539 7,794

5 . Eligible Block Hours, , T-100 Segment 3,070 984 352 7,132

6 . Eligible Mail RTMs, T-100 Segment 2,593,371 39,413 73,192 38,526 203,246

7 . Total Eligible RTMs, T-100 Segment 173,153 174,417 47,425 552,273

8 . Price per Gallon $7.87 $6.68 $6.70 $6.69

9 . Burn per Revenue Block Hour 40 151 130 56

10 . Costs per Hour $313.80 $1,007.26 $870.99 $372.51

11 . Eligible Fuel Expense $963,357 $991,149 $306,587 $2,656,762

12 . Cost per Eligible RTM $5.5636 $5.6826 $6.4647 $4.8106

13 . Mail RTMs, Percentage 100.00% 1.520% 2.822% 1.486% 7.837%

14 . Cost/RTM, Wtd. By Mail RTMs $4.4950 $0.0846 $0.1604 $0.0961 $0.3770

Ratio of Total to Revenue Block Hours 2.55% 3.66% 7.79% 2.40%
Carrier

By Aircraft Type

Aircraft Code

1 . Total Fuel Expense

2 . Total Gallons Issued

3 Total Block Hours, Schedule F-2

4 . Total Block Hours, T-100 Segment

5 . Eligible Block Hours, , T-100 Segmen

6 . Eligible Mail RTMs, T-100 Segment

7 . Total Eligible RTMs, T-100 Segment

8 . Price per Gallon

9 . Burn per Revenue Block Hour

10 . Costs per Hour

11 . Eligible Fuel Expense

12 . Cost per Eligible RTM

13 . Mail RTMs, Percentage

14 . Cost/RTM, Wtd. By Mail RTMs

Ratio of Total to Revenue Block Hour

Attachment B

 Linehaul, Part 135

Appendix C-2

Page 2 of 3

Year Ended September 30, 2013

Grant Grant Hageland Hageland Hageland Hageland

C-207 Caravan C-207 Navajo B-1900 Caravan

35 416 35 194 405 416

$753,324 $4,211,862 $2,257,762 $1,852,208 $6,675,629 $8,941,033

118,063 713,073 322,251 262,809 1,217,623 1,416,418

6,184 14,058 21,010 7,497 9,637 26,990

7,287 15,851 20,097 7,136 8,943 25,996

6,940 10,902 16,916 6,112 5,021 23,469

47,044 243,891 104,232 81,439 361,537 552,499

166,527 628,363 406,018 327,804 803,573 1,830,889

$6.38 $5.91 $7.01 $7.05 $5.48 $6.31

16 45 16 37 136 54

$103.38 $265.72 $112.34 $259.56 $746.46 $343.94

$717,451 $2,896,834 $1,900,398 $1,586,420 $3,747,997 $8,071,900

$4.3083 $4.6101 $4.6806 $4.8395 $4.6642 $4.4087

1.814% 9.404% 4.019% 3.140% 13.941% 21.304%

$0.0782 $0.4335 $0.1881 $0.1520 $0.6502 $0.9392

-15.14% -11.31% 4.54% 5.06% 7.76% 3.82%
Carrier

By Aircraft Type

Aircraft Code

1 . Total Fuel Expense

2 . Total Gallons Issued

3 Total Block Hours, Schedule F-2

4 . Total Block Hours, T-100 Segment

5 . Eligible Block Hours, , T-100 Segmen

6 . Eligible Mail RTMs, T-100 Segment

7 . Total Eligible RTMs, T-100 Segment

8 . Price per Gallon

9 . Burn per Revenue Block Hour

10 . Costs per Hour

11 . Eligible Fuel Expense

12 . Cost per Eligible RTM

13 . Mail RTMs, Percentage

14 . Cost/RTM, Wtd. By Mail RTMs

Ratio of Total to Revenue Block Hour

Attachment B

 Linehaul, Part 135

Appendix C-2

Page 3 of 3

Year Ended September 30, 2013

Hageland Ryan Air Ryan Air Warbelow Wright Yute

C-406 C-207 Casa Navajo Caravan C-207

417 35 412 194 416 35

$1,575,279 $456,233 $2,954,836 $2,266,658 $2,259,007 $1,599,420

246,925 71,925 462,110 459,378 658,078 210,388

2,860 4,429 4,625 11,604 13,162 15,694

2,660 4,115 4,474 11,117 13,040 15,442

2,444 4,087 4,127 7,072 11,562 13,042

61,062 78,248 356,727 70,344 190,958 91,013

240,966 96,993 589,678 407,476 1,056,875 260,390

$6.38 $6.34 $6.39 $4.93 $3.43 $7.60

93 17 103 41 50 14

$592.21 $110.87 $660.45 $203.89 $173.24 $103.58

$1,447,362 $453,129 $2,725,661 $1,441,918 $2,002,963 $1,350,838

$6.0065 $4.6718 $4.6223 $3.5387 $1.8952 $5.1877

2.355% 3.017% 13.755% 2.712% 7.363% 3.509%

$0.1415 $0.1409 $0.6358 $0.0960 $0.1395 $0.1820

7.52% 7.63% 3.38% 4.38% 0.94% 1.63%
Attachment B

Linehaul, Part 135

Appendix D

Determination of Which Carriers Are Included in the Class Rates

Per the One-Percent Rule, YE 9-30-13

Aircraft Eligible Cumulative

Name Type Mail RTMs Percent Percent

Hageland 416 552,499 20.33% 20.33%

Hageland 405 361,537 13.30% 33.63%

Ryan Air 412 356,727 13.13% 46.76%

Grant 416 243,891 8.98% 55.74%

Bering 416 203,246 7.48% 63.22%

Wright 416 190,958 7.03% 70.25%

Hageland 35 104,232 3.84% 74.09%

Yute 35 91,013 3.35% 77.44%

Hageland 194 81,439 3.00% 80.44%

Ryan Air 35 78,248 2.88% 83.32%

Bering 405 73,192 2.69% 86.01%

Warbelow 194 70,344 2.59% 88.60%

Hageland 417 61,062 2.25% 90.85%

Grant 35 47,044 1.73% 92.58%

Bering 194 39,413 1.45% 94.03%

Bering 412 38,526 1.42% 95.45%

Grant 194 22,259 0.82% 96.27%

Tatonduk 416 12,633 0.46% 96.73%

SeaPort 416 10,823 0.40% 97.13%

Tatonduk 79 9,063 0.33% 97.46%

Ryan Air 486 8,546 0.31% 97.77%

Bering 406 6,104 0.22% 97.99%

Air Excursion 79 6,051 0.22% 98.21%

Tatonduk 479 6,036 0.22% 98.43%

Al.Seaplane 415 5,065 0.19% 98.62%

Iliamna 35 4,971 0.18% 98.80%

Air Excursion 194 4,817 0.18% 98.98%

Grant 406 4,721 0.17% 99.15%

Island Air 131 3,015 0.11% 99.26%

Wright 194 2,927 0.11% 99.37%

Al.Seaplane 79 2,754 0.10% 99.47%

SeaPort 35 2,166 0.08% 99.55%

Island Air 79 2,095 0.08% 99.63%

Servant 35 1,549 0.06% 99.69%

Tanana 35 1,480 0.05% 99.74%

Smokey Bay 35 857 0.03% 99.77%

40-Mile 35 847 0.03% 99.80%

Al.Seaplane 194 765 0.03% 99.83%

Tanana 79 732 0.03% 99.86%

Air Excursion 415 519 0.02% 99.88%

Iliamna 479 491 0.02% 99.90%

Wright 35 460 0.02% 99.92%

Spernak 35 457 0.02% 99.94%

Air Excursion 35 387 0.01% 99.95%

Al.Seaplane 35 289 0.01% 99.96%

Al.Seaplane 30 289 0.01% 99.97%

Tanana 33 166 0.01% 99.98%

Bering 35 145 0.01% 99.99%

Tanana 194 128 0.00% 99.99%

Servant 416 120 0.00% 99.99%

Pacific 33 114 0.00% 99.99%

Hageland 30 68 0.00% 99.99%

Wright 10 64 0.00% 99.99%

Iliamna 10 22 0.00% 99.99%

Tanana 39 13 0.00% 99.99%

Tanana 30 10 0.00% 99.99%

40-Mile 31 2 0.00% 99.99%

2,717,391 100.00%
Attachment B

Appendix E

Circuity Calculation, Intra-AK Mail Revenue Ton Miles (RTMs), YE 9-30-13

Segment Market

Carrier Mail RTMs Mail RTMs Circuity

40-Mile 1,081 895 20.78%

Air Excursions 12,724 12,681 0.34%

Alaska Seaplane 14,986 13,916 7.69%

Arctic Transportation 443,806 387,421 14.55%

Bering Air 362,155 347,018 4.36%

Ellis Air Taxi 1,687 1,687 0.00%

Era Aviation 345,005 343,217 0.52%

Grant 318,724 297,261 7.22%

Hageland 1,664,766 1,597,951 4.18%

Iliamna 5,797 5,295 9.48%

Island Air 6,012 5,260 14.30%

Pacific 7,999 7,700 3.88%

Peninsula 1,449,762 1,404,935 3.19%

PM Air 7,155 6,693 6.90%

SeaPort 16,519 16,456 0.38%

Servant 2,020 1,840 9.78%

Smokey Bay 857 821 4.38%

Spernak 1,306 1,189 9.84%

Tanana 2,529 2,483 1.85%

Tatonduk 7,021,192 6,714,341 4.57%

Venture 26,105 24,094 8.35%

Warbelow 70,382 68,154 3.27%

Ward Air 21 20 5.00%

Wright 1/ 164,581 151,792 8.43%

Yute 91,013 85,217 6.80%

12,038,184 11,498,337 4.70%

1/ For Wright, we relied on reported figures, but excluded the months of November 

and December, 2012, shown as follows:

Total, YE 9-30-13 194,581 156,645 24.22%

less November 2012 17,999 2,960 508.07%

less December 2012 12,001 1,893 533.97%

Total 164,581 151,792 8.43%
Appendix F

Determination of Segments Ineligible for Calculating Bush Rates,

Scheduled Intra-Alaska Departures Performed with Mainline Equipment

T-100 Segment Report, QE 9-30-13, Seven or More Departures Performed 1/

Total Total 

Orig Dest Deps. Orig Dest Deps.

ADK ANC 26 EMK ANC 53

ADQ ANC 679 ENA ANC 526

AKN ANC 193 FAI ANC 1005

AKN DLG 10 FAI SCC 169

AKN ILI 16 GAL ANC 35

ANC ADK 26 GST JNU 52

ANC ADQ 643 HOM ADQ 40

ANC AKN 196 HOM ANC 250

ANC ANC 27 ILI ANC 23

ANC ANI 122 JNU ANC 479

ANC BET 666 JNU GST 52

ANC BRW 106 JNU KTN 93

ANC CDV 110 JNU PSG 92

ANC DLG 199 JNU SIT 362

ANC EMK 55 JNU YAK 93

ANC ENA 523 KSM ANC 116

ANC FAI 1013 KSM ANI 7

ANC GAL 30 KTN ANC 8

ANC HOM 289 KTN JNU 205

ANC ILI 7 KTN SIT 152

ANC JNU 467 KTN WRG 89

ANC KSM 113 MCG ANC 49

ANC MCG 34 OME ANC 295

ANC OME 290 OME OTZ 118

ANC OTZ 348 OME UNK 13

ANC SCC 102 OTZ ANC 299

ANC TOG 31 OTZ OME 146

ANC UNK 178 PSG JNU 90

ANC VDZ 154 PSG WRG 92

ANC YAK 26 SCC ANC 58

ANI ANC 120 SCC BRW 262

ANI KSM 8 SCC FAI 85

ANI MCG 11 SIT JNU 241

BET ANC 603 SIT KTN 208

BET ANI 13 TOG ANC 39

BRW ANC 149 UNK ANC 184

BRW FAI 92 UNK MCG 8

BRW SCC 124 VDZ ANC 151

CDV ANC 108 WRG KTN 91

CDV YAK 92 WRG PSG 88

DLG AKN 23 YAK CDV 91

DLG ANC 113 YAK JNU 116

1/ Includes the mainline operations of PenAir
Appendix G

Carriers Reporting Intra-Alaska Operations for YE 9-30-13

Excluded from Calculations of the Bush Rates

Reason for Exclusion

No Mainline No No

Mail Only Pax. Skd. Pax.

Al.Central ----- ----- ----- X

Alaska ----- X ----- -----

Atlas Air X X ----- -----

Avjet Corp X ----- ----- -----

Condor X X ----- -----

Delta X X ----- -----

Empire X X ----- -----

Fed Ex X ----- ----- -----

Frontier ----- ----- X -----

Harris Air X ----- ----- -----

Homer Air X ----- ----- -----

Katmai X ----- ----- -----

Lynden ----- X ----- -----

Miami Air X X ----- -----

Northern ----- X ----- -----

Polar Air X X ----- -----

Prescott X ----- ----- -----

S. Pacific X X ----- -----

Sun Country X X ----- -----

Swiss Air X ----- ----- -----

United X ----- ----- -----

UPS X X ----- -----

World X X ----- -----
Attachment C

Linehaul, Seaplane

Appendix A

Calculation of the Linehaul, Seaplane, YE 9-30-13

(1) (2) (3) (4) (5) (6)

Avg. Annual

Change, Midpoint to Estimated

Year Ended YE 6/30/04 Midpoint Unit Cost at Current Rate Change from

9/30/2013 1/ to YE 9/30/13 2/ Change 3/ 10/1/2014 4/ Order 2013-12-9 Current 5/

Unit Cost per

Revenue Ton-Mile

Fuel $6.8840 0 0 $6.8840 $6.3505 8.40%

Nonfuel $23.1757 2.72% 4.12% $24.1305 $26.2478 -8.07%

$30.0597 $31.0145 $32.5983 -4.86%

1/ Fuel, Appendix C2, Nonfuel, Appendix C-1 of this Order.

2/ We assume fuel increases will be zero. For nonfuel, see "predicted annual increase" in Appendix B, Page 1.

3/ Reflects the fact that from the midpoint of the reporting period to the midpoint of the prospective

rate is 1 and 1/2 years. 1.0272 x 1.0136 = 4.12, where 0.0136 is the average annual unit cost increase projected for

a 6-month period.

4/ Fuel reflects YE 9-30-13, Appendix C-2. Nonfuel is column (1) mulitplied by Column (3). 

The total is the sum of the two. The final order will reflect the most recent quarterly fuel costs available at the time.

5/ Column 4 ÷ Column 5 less 1.
Attachment C

Linehaul, Seaplane

Appendix B

Page 1 of 2

Actual Y

Natural Log

$/RTM $/RTM Predicted 

Time Nonfuel Nonfuel Annual

Period Linehaul 1/ Linehaul Predicted Y Residuals EXP (Y) Increase

6/30/2004 $18.8646 2.937287 3.014346677 -0.077059527 20.37577463 2.72%

6/30/2005 $18.9961 2.944234 3.041205819 -0.096972124 20.93046638

6/30/2006 $21.7432 3.079301 3.068064961 0.011236104 21.50025855

6/30/2007 $22.7223 3.123347 3.094924102 0.028422719 22.08556223

6/30/2008 $25.7084 3.246818 3.121856831 0.124960956 22.6884692

6/30/2009 $26.1034 3.262066 3.148715972 0.113349602 23.30611966

6/30/2010 $25.0246 3.219859 3.175575114 0.044284227 23.94058448

9/30/2012 $24.7248 3.207807 3.23613696 -0.028330171 25.43527423

9/30/2013 $23.1757 3.143104 3.262996101 -0.119891785 26.12770123

ANOVA

df SS MS F Significance F

Regression 1 0.057769 0.057769 6.535255904 0.037748561

Residual 7 0.061877 0.00884

Total 8 0.119646

Coefficients Std. Error t Stat P-value Lower 95% Upper 95%

Intercept 0.2056899 1.144072 0.179788 0.862413052 -2.499609387 2.910989205

X Variable 1 7.359E-05 2.88E-05 2.556415 0.037748561 5.52071E-06 0.000141653

Regression Statistics

Multiple R 0.6948612

R Square 0.4828321

Adjusted R Square 0.408951

Standard Error 0.094019

Observations 9

1/ Per Order 2013-6-5, made final by Order 2013-7-25, and Appendix D of this attachment for the YE 9-30-12.
Attachment C

Linehaul, Seaplane

Appendix B

Page 2 of 2

y = 7E-05x + 0.2057

R2 = 0.4828

2.90

2.95

3.00

3.05

3.10

3.15

3.20

3.25

3.30

1/14/04 5/28/05 10/10/06 2/22/08 7/6/09 11/18/10 4/1/12 8/14/13

Unit Cost per RTM, Natural Log

Years Ended June 30, 2004, through September 30, 2013

Nonfuel Linehaul, Unit Cost per RTM, Actual vs. 

Predicted
Attachment C

Linehaul, Seaplane

Appendix C-1

Page 1 of 1

Year Ended September 30, 2013

Al. Seaplane Island Pacific PM Air Venture

System Parameters for Each Carrier Total J5 2O 3F Z3 K3

1 . Capacity Related Expense (CR) $757,755 $491,936 $297,181 $434,358 $602,637

2 . Direct Expense, Includes Fuel $2,208,696 $1,518,485 $1,615,875 $4,843,254 $3,060,439

3 . Indirect Expense $1,437,831 $1,058,711 $818,694 $2,967,519 $1,523,616

4 . CR Markup 26.23% 23.59% 13.90% 5.89% 15.14%

5 . Return and Tax Markup 9.46% 9.46% 9.46% 9.46% 9.46%

6 . T-100 Seg. Mail RTMs 14,986 6,012 7,999 7,155 26,105

7 . T-100 Mkt. Mail RTMs 13,916 5,260 7,700 6,693 24,094

8 . Circuity Markup 7.69% 14.30% 3.88% 6.90% 8.35%

By Aircraft Type Beaver Beaver Beaver Beaver Beaver

Aircraft Code 40 40 40 40 40

9 . Direct Expense, Includes Fuel $1,077,722 $408,199 $1,471,987 $1,816,996 $3,060,439

10 . Less Psgr. Liability Insurance $24,494 $13,754 $72,630 $36,932 $67,883

11 . Linehaul Expense Allocable to Mail $1,053,228 $394,445 $1,399,357 $1,780,064 $2,992,556

12 . Cost per Block Hour (R11÷ R18) $371.90 $485.17 $371.48 $430.28 $487.31

13 . Marked Up Costs (R11*R4*R5*R8) $1,567,169 $609,918 $1,812,340 $2,205,585 $4,086,513

14 . Eligible Expense (R13*R32÷R18) $1,423,844 $461,377 $1,498,657 $1,207,554 $1,412,080

15 . Eligible Cost per RTM (R14÷R36) $26.7163 $44.3674 $24.1302 $27.6524 $32.6681

16 . Percentage of Eligible Mail RTMs 100.00% 11.515% 1.913% 16.609% 14.531% 55.432%

17 . Cost Wtd. By Mail RTMs (R15*R16) $30.0597 $3.0764 $0.8487 $4.0078 $4.0182 $18.1086

Scheduled + Nonscheduled Traffic

18 . Block Hours, T-100 2,832 813 3,767 4,137 6,141

19 . Pax RTMs 46,501 12,431 66,674 53,904 35,608

20 . Frt RTMs Wtd. @ 0.75 5,558 1,616 2,523 4,621 4,629

21 . Mail RTMs 5,423 901 7,885 6,843 26,105

22 . Total RTMs 57,483 14,948 77,081 65,368 66,342

23 . Aircraft Miles 218,878 66,986 296,085 247,894 275,338

24 . Available Ton Miles (ATMs) 202,462 58,165 188,562 162,123 254,688

25 . Departures Performed 4,266 1,611 8,052 9,974 9,397

26 . Wtd. Deps. (GTOW) 21,757 8,216 41,065 50,867 47,925

27 . Ton Load Factor 28.39% 25.70% 40.88% 40.32% 26.05%

28 . Stage Length 51 42 37 25 29

29 . ATMs per Mile 0.92 0.87 0.64 0.65 0.93

30 . RTMs per Mile 0.26 0.22 0.26 0.26 0.24

31 . RTMs per Hour 20 18 20 16 11

Eligible Traffic

32 . Block Hours, T-100 2,573 615 3,115 2,265 2,122

33 . Pax RTMs 42,314 7,962 51,832 33,300 12,592

34 . Frt RTMs Wtd. @ 0.75 5,557 1,536 2,453 3,526 4,529

35 . Mail RTMs 47,094 5,423 901 7,822 6,843 26,105

36 . Total RTMs 53,295 10,399 62,107 43,669 43,225

37 . Aircraft Miles 186,986 138,308 48,678 237,952 183,619 200,236

38 . Available Ton Miles (ATMs) 183,435 41,366 153,533 118,406 185,218

39 . Departures Performed 5,193 3,877 1,316 6,854 7,444 4,166

40 . Wtd. Deps. (GTOW) 19,773 6,712 34,955 37,964 21,247

41 . Ton Load Factor 29.05% 25.14% 40.45% 36.88% 23.34%

42 . Stage Length 36 36 37 35 25 48

43 . ATMs per Mile 1.33 0.85 0.65 0.64 0.92

44 . RTMs per Mile 0.39 0.21 0.26 0.24 0.22

45 . RTMs per Hour 21 17 20 19 20
Attachment C

Linehaul, Seaplane

Appendix C-2

Page 1 of 1

Year Ended September 30, 2013

Carrier Al. Seaplane Island Pacific PM Air Venture

By Aircraft Type J5 2O 3F Z3 K3

Aircraft Code Total 40 40 40 40 40

1 . Total Fuel Expense, Schedule F-2 $271,952 $146,784 $450,676 $606,811 $912,560

2 . Total Gallons Issued, Schedule F-2 55,439 21,282 82,342 109,716 167,117

3 Total Block Hours, Schedule F-2 2,865 984 3,804 4,251 6,310

4 . Total Block Hours, T-100 Segment 2,832 813 3,767 4,137 6,141

5 . Eligible Block Hours, , T-100 Segment 2,573 615 3,115 2,265 2,122

6 . Eligible Mail RTMs, T-100 Segment 47,094 5,423 901 7,822 6,843 26,105

7 . Total Eligible RTMs, T-100 Segment 53,295 10,399 62,107 43,669 43,225

8 . Price per Gallon $4.91 $6.90 $5.47 $5.53 $5.46

9 . Burn per Hour 20 26 22 27 27

10 . Costs per Hour $96.03 $180.55 $119.64 $146.68 $148.60

11 . Eligible Fuel Expense $247,081 $111,036 $372,672 $332,228 $315,332

12 . Cost per Eligible RTM $4.6361 $10.6776 $6.0005 $7.6079 $7.2951

13 . Mail RTMs, Percentage 100.00% 11.515% 1.913% 16.609% 14.531% 55.432%

14 . Cost/RTM, Wtd. By Mail RTMs $6.8840 $0.5338 $0.2043 $0.9966 $1.1055 $4.0438

Ratio of Total to Revenue Block Hours 1.17% 21.03% 0.98% 2.76% 2.75%
Attachment C

Linehual, Seaplane

Appendix D

Determination of Carriers Included in the Class Rates, One Percent Rule, YE 9-30-13

Eligible Cumulative

Carrier 2-Ltr. A/C Type Mail RTMs Percent Percent

Taquan K3 40 26,105 55.044% 55.044%

Pacific 3F 40 7,822 16.493% 71.537%

PM Air Z3 40 6,843 14.429% 85.966%

Al. Seaplane J5 40 5,423 11.435% 97.401%

Island 2O 40 901 1.900% 99.301%

PM Air Z3 42 312 0.658% 99.959%

Servant 8D 40 20 0.042% 100.001%

47,426 100.00%
Attachment C

Appendix E

Circuity Calculation, Intra-AK Mail Revenue Ton Miles (RTMs), YE 9-30-13

Segment Market

Carrier Mail RTMs Mail RTMs Circuity

40-Mile 1,081 895 20.78%

Air Excursions 12,724 12,681 0.34%

Alaska Seaplane 14,986 13,916 7.69%

Ryan Air 443,806 387,421 14.55%

Bering Air 362,155 347,018 4.36%

Ellis Air Taxi 1,687 1,687 0.00%

Era Aviation 345,005 343,217 0.52%

Grant 318,724 297,261 7.22%

Hageland 1,664,766 1,597,951 4.18%

Iliamna 5,797 5,295 9.48%

Island Air 6,012 5,260 14.30%

Pacific 7,999 7,700 3.88%

Peninsula 1,449,762 1,404,935 3.19%

PM Air 7,155 6,693 6.90%

SeaPort 16,519 16,456 0.38%

Servant 2,020 1,840 9.78%

Smokey Bay 857 821 4.38%

Spernak 1,306 1,189 9.84%

Tanana 2,529 2,483 1.85%

Tatonduk 7,021,192 6,714,341 4.57%

Venture 26,105 24,094 8.35%

Warbelow 70,382 68,154 3.27%

Ward Air 21 20 5.00%

Wright 1/ 164,581 151,792 8.43%

Yute 91,013 85,217 6.80%

12,038,184 11,498,337 4.70%

1/ For Wright, we relied on reported figures, but excluded the months of November 

and December, 2012, shown as follows:

Total, YE 9-30-13 194,581 156,645 24.22%

less November 2012 17,999 2,960 508.07%

less December 2012 12,001 1,893 533.97%

Total 164,581 151,792 8.43%
Appendix F

Determination of Segments Ineligible for Calculating Bush Rates,

Scheduled Intra-Alaska Departures Performed with Mainline Equipment

T-100 Segment Report, QE 9-30-13, Seven or More Departures Performed 1/

Total Total 

Orig Dest Deps. Orig Dest Deps.

ADK ANC 26 EMK ANC 53

ADQ ANC 679 ENA ANC 526

AKN ANC 193 FAI ANC 1005

AKN DLG 10 FAI SCC 169

AKN ILI 16 GAL ANC 35

ANC ADK 26 GST JNU 52

ANC ADQ 643 HOM ADQ 40

ANC AKN 196 HOM ANC 250

ANC ANC 27 ILI ANC 23

ANC ANI 122 JNU ANC 479

ANC BET 666 JNU GST 52

ANC BRW 106 JNU KTN 93

ANC CDV 110 JNU PSG 92

ANC DLG 199 JNU SIT 362

ANC EMK 55 JNU YAK 93

ANC ENA 523 KSM ANC 116

ANC FAI 1013 KSM ANI 7

ANC GAL 30 KTN ANC 8

ANC HOM 289 KTN JNU 205

ANC ILI 7 KTN SIT 152

ANC JNU 467 KTN WRG 89

ANC KSM 113 MCG ANC 49

ANC MCG 34 OME ANC 295

ANC OME 290 OME OTZ 118

ANC OTZ 348 OME UNK 13

ANC SCC 102 OTZ ANC 299

ANC TOG 31 OTZ OME 146

ANC UNK 178 PSG JNU 90

ANC VDZ 154 PSG WRG 92

ANC YAK 26 SCC ANC 58

ANI ANC 120 SCC BRW 262

ANI KSM 8 SCC FAI 85

ANI MCG 11 SIT JNU 241

BET ANC 603 SIT KTN 208

BET ANI 13 TOG ANC 39

BRW ANC 149 UNK ANC 184

BRW FAI 92 UNK MCG 8

BRW SCC 124 VDZ ANC 151

CDV ANC 108 WRG KTN 91

CDV YAK 92 WRG PSG 88

DLG AKN 23 YAK CDV 91

DLG ANC 113 YAK JNU 116

1/ Includes the mainline operations of PenAir
Appendix G

Carriers Reporting Intra-Alaska Operations for YE 9-30-13

Excluded from Calculations of the Bush Rates

Reason for Exclusion

No No No No

Mail Bush Pax. Skd. Pax.

Al.Central ----- ----- ----- X

Alaska ----- X ----- -----

Atlas Air X X ----- -----

Avjet Corp X ----- ----- -----

Condor X X ----- -----

Delta X X ----- -----

Empire X X ----- -----

Fed Ex X ----- ----- -----

Frontier ----- ----- X -----

Harris Air X ----- ----- -----

Homer Air X ----- ----- -----

Katmai X ----- ----- -----

Lynden ----- X ----- -----

Miami Air X X ----- -----

Northern ----- X ----- -----

Polar Air X X ----- -----

Prescott X ----- ----- -----

S. Pacific X X ----- -----

Sun Country X X ----- -----

Swiss Air X ----- ----- -----

United X ----- ----- -----

UPS X X ----- -----

World X X ----- -----
Attachment D

Terminal

Appendix A

Determination of Terminal Rate, Rate per Revenue Ton Enplaned, YE 9-30-13

-1- -2- -3- -4- -5-

Base Year Adjustment Proposed Current Rate, Change from 

Rates 1/ Factors 2/ Final Rates 3/ Order 2013-12-9 Prior Rate 4/

$625.85 40.33% $878.26 $850.03 3.32%

1/ Per Order 2005-1-18

2/ See Appendix B, Column 6

3/ Column (1) increased by Column (2).

4/ $878.26 ÷ $850.03. 
Attachment D

Terminal

Appendix B

-1- -2- -3- -4- -5- -6-

INTRA-ALASKA MAIL CLASS RATES COST ADJUSTMENT FACTORS

(Expenses in Thousand of Dollars)

Average Annual Percent 

Base Year Change Midpoint to Estimated Change 2004

Ended YE YE 6/30/04 Midpoint Unit Cost at Base Year to

6/30/2004 1/ 9/30/2013 2/ to YE 9/30/13 3/ Change 4/ 10/1/2014 5/ 10/1/2014 6/

Unit Cost $9.77 $12.93 3.97% 6.03% $13.71 40.33%

Per Wtd. Dep.

1/ Attachment D, Appendix D, Order 2007-12-19.

2/ Appendix D to this Order, Page 1 of 2.

3/ See "predicted annual increase" in Appendix D, Page 1 of 2. 

4/ Reflects the fact that from the mid-point of the reporting period to the mid-point of the prospective rate is 

one and one-half years. 1.0397 x 1.01985, where 0.01985 is the average annual unit cost increase projected 

for a six-month period.

5/ $12.93 in Column 2 increased by 5.90 percent in Column 4.

6/ $13.71 in Column 5 ÷ $9.77 in Column 1, the base period.
Attachment D

Terminal

Appendix C

Page 1 of 2

Actual Y Predicted

Natural Log Annual 

Annual Period $/Wtd. Dep. 1/ $/Wtd. Dep. Predicted Y Residuals EXP (Y) Increase

6/30/2004 $8.96 2.192770227 2.191699988 0.001070239 8.95041579 3.97%

6/30/2005 $8.90 2.186051277 2.23059236 -0.044541083 9.305376582

6/30/2006 $10.14 2.316487998 2.269484732 0.047003266 9.674414615

6/30/2007 $10.25 2.327277706 2.308377104 0.018900602 10.05808817

6/30/2008 $10.61 2.361796953 2.34737603 0.014420922 10.45809198

6/30/2009 $10.90 2.388762789 2.386268402 0.002494387 10.87284507

6/30/2010 $10.62 2.362739016 2.425160774 -0.062421759 11.30404667

9/30/2012 $12.53 2.528125769 2.512855082 0.015270687 12.34011184

9/30/2013 $12.93 2.559550193 2.551747453 0.007802739 12.82950317

ANOVA

df SS MS F Significance F

Regression 1 0.121126227 0.121126227 94.66863223 2.56212E-05

Residual 7 0.008956331 0.001279476

Total 8 0.130082558

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%

Intercept -1.875270019 0.435264981 -4.308341123 0.003530279 -2.904508149 -0.846031888

X Variable 1 0.000106554 1.09514E-05 9.729780688 2.56212E-05 8.06586E-05 0.00013245

Regression Statistics

Multiple R 0.964960555

R Square 0.931148872

Adj. R Square 0.921312997

Standard Error 0.035769761

Observations 9

1/ Per Oder 2013-6-5, made final by Order 2013-7-25, and Appendix D of this attachment 

for the YE 9-30-13.
Attachment D

Terminal

Appendix C

Page 2 of 2

y = 0.0001x - 1.8753

R2 = 0.9311

2.15

2.20

2.25

2.30

2.35

2.40

2.45

2.50

2.55

2.60

Jan-04 May-05 Oct-06 Feb-08 Jul-09 Nov-10 Apr-12 Aug-13

Unit Cost per Wtd. Departure, Natural Log

YE June 30, 2004, through September 30, 2013

Unit Terminal Cost per Weighted Departure, Actual 

vs. Predicted
Attachment D

Terminal

Appendix D

Schedule F-2 Expenses, Year Ended September 30, 2013 

-1- -2- -3- -4- -5- -6- -7- -8- -9- -10-

#1 plus #2 #3 less #4 #4 ÷ #6 #5 x #7

Oper. Less Capacity Adjusted Wtd.

Carrier Directs Indirects Operating Capacity Departure Capacity Markup Departure Wtd. Deps. $/Dep.

1 40-Mile $698,977 $240,791 $939,768 $96,534 $62,938 $843,234 11.45% $70,144 5,284 $13.27

2 . Air Excursion $918,266 $593,548 $1,511,814 $222,384 $105,083 $1,289,430 17.25% $123,210 18,705 $6.59

3 . Al. Seaplane $2,208,696 $1,437,831 $3,646,527 $757,755 $477,055 $2,888,772 26.23% $602,187 51,515 $11.69

4 . Bering $19,282,106 $5,776,372 $25,058,478 $1,578,337 $2,420,855 $23,480,141 6.72% $2,583,536 271,451 $9.52

Era Aviation $47,943,132 $24,823,971 $72,767,103 $9,627,922 $7,074,594 $63,139,181 15.25% $8,153,470 738,653 $11.04

5 Era Adj. 1/ $2,639,234 239,098 $11.04

6 . Grant $17,807,304 $12,485,995 $30,293,299 $3,135,609 $2,950,088 $27,157,690 11.55% $3,290,823 379,976 $8.66

7 Hageland $56,370,678 $21,479,705 $77,850,383 $7,389,003 $11,569,848 $70,461,380 10.49% $12,783,525 856,995 $14.92

8 . Iliamna $2,348,773 $298,226 $2,646,999 $107,446 $92,276 $2,539,553 4.23% $96,179 41,613 $2.31

9 . Island $1,518,485 $1,058,711 $2,577,196 $491,936 $385,718 $2,085,260 23.59% $476,709 40,921 $11.65

10 . Pacific $1,615,875 $818,694 $2,434,569 $297,181 $409,722 $2,137,388 13.90% $466,673 43,062 $10.84

PenAir $51,005,373 $23,963,014 $74,968,387 $6,771,335 $7,891,061 $68,197,052 9.93% $8,674,643 497,040 $17.45

11 PenAir Adj. 1/ $5,550,330 318,023 $17.45

. PM Air 3/ $4,843,254 $2,967,519 $7,810,773 $434,358 $1,768,174 $7,376,415 5.89% $1,872,319 100,523 $18.63

12 PMAir, Adj. 1/ $1,500,697 80,571 $18.63

13 Ryan Air $6,799,190 $4,268,315 $11,067,505 $1,699,423 $2,539,597 $9,368,082 18.14% $3,000,280 154,186 $19.46

Seaport $14,752,720 $6,528,398 $21,281,118 $1,968,002 $3,672,498 $19,313,116 10.19% $4,046,726 244,061 $16.58

14 Seaport Adj. 1/ $1,476,586 89,054 $16.58

15 . Servant $1,107,073 $464,141 $1,571,214 $153,494 $307,518 $1,417,720 10.83% $340,822 19,424 $17.55

16 . Smokey $521,573 $290,885 $812,458 $125,029 $133,263 $687,429 18.19% $157,504 22,444 $7.02

17 . Spernak $1,201,001 $554,536 $1,755,537 $409,124 $129,475 $1,346,413 30.39% $168,822 26,095 $6.47

18 . Tanana $457,454 $236,560 $694,014 $79,923 $122,630 $614,091 13.01% $138,584 9,325 $14.86

19 . Venture $3,060,439 $1,523,616 $4,584,055 $602,637 $555,451 $3,981,418 15.14% $639,546 47,925 $13.34

20 . Warbelows $6,370,118 $1,050,929 $7,421,047 $276,182 $446,848 $7,144,865 3.87% $464,141 84,863 $5.47

21 . Wright $9,996,690 $3,129,853 $13,126,543 $1,089,223 $1,450,277 $12,037,320 9.05% $1,581,527 133,384 $11.86

22 . Yute $4,923,656 $1,994,818 $6,918,474 $410,823 $1,529,692 $6,507,651 6.31% $1,626,216 141,984 $11.45

Total -- Reflects only the adjusted amount. $39,777,275 3,075,898 $12.93

1/ Reflects a pro rata portion of intra-Alaska bush weighted departures from Appendix E.
Attachment D, Terminal

Appendix E

Year Ended September 30, 2013

Carrier 2-Ltr. A/C Deps. GTOW Wtd. Deps

40-Mile Air Q5 31 121 3.0 363

35 1,118 3.7 4,137

80 74 1.8 133

194 88 7.4 651

40-Mile Air, Total 1,401 5,284

Air Excursion X4 30 3 3.3 10

35 280 3.7 1,036

40 5 5.1 26

79 2,880 3.6 10,368

194 839 7.4 6,209

415 116 9.1 1,056

Air Excursion, Total 4,123 18,705

Alaska Seaplane J5 30 297 3.3 980

35 594 3.7 2,198

40 4,266 5.1 21,757

79 4,176 3.6 15,034

194 381 7.4 2,819

415 959 9.1 8,727

Alaska Seaplane, Total 10,673 51,515

Bering Air Inc. 8E 35 29 3.7 107

194 8,505 7.4 62,937

355 72 3.0 216

360 304 2.4 730

405 1,995 16.8 33,516

406 1,460 12.5 18,250

412 770 17.0 13,090

416 16,023 8.9 142,605

Bering, Total 29,158 271,451

Era Aviation, Bush 7H 405 14,232 16.8 239,098

Era Aviation, Mainline 7H 483 14,273 35.0 499,555

Era Aviation, Total 28,505 738,653
Attachment D, Terminal

Appendix E

Year Ended September 30, 2013

Grant Aviation GV 35 17,405 3.7 64,398

194 4,767 7.4 35,276

406 3,146 12.5 39,325

416 27,076 8.9 240,976

Grant, Total 52,394 379,975

Hageland Aviation H6 30 15 3.0 45

35 41,351 3.7 152,999

194 11,615 7.4 85,951

405 10,293 16.8 172,922

416 44,962 8.9 400,162

417 4,537 9.9 44,916

Hageland, Total 112,773 856,995

Iliamna Air Taxi V8 10 540 3.3 1,782

35 2,365 3.7 8,751

40 539 5.1 2,749

117 467 5.4 2,522

479 2,607 9.9 25,809

Iliamna, Total 6,518 41,613

Island Air Service 2O 40 1,611 5.1 8,216

79 3,014 3.6 10,850

131 3,525 6.2 21,855

Island Air, Total 8,150 40,921

Pacific Airways, Inc. 3F 33 605 3.3 1,997

40 8,052 5.1 41,065

Pacific, Total 8,657 43,062

PenAir, Bush KS 79 957 3.6 3,445

170 34 8.9 303

416 10 8.9 89

456 9,220 29 267,380

459 1,614 29 46,806

PenAir, Bush, Subtotal 11,835 318,023

PenAir, Mainline, Outside AK 456 6,173 29.0 179,017

PenAir, Total 18,008 497,040
Attachment D, Terminal

Appendix E

Year Ended September 30, 2013

PM Air, LLC Z3 40 9,974 5.1 50,867

Z3 42 3,713 8.0 29,704

PMAir, Intra-AK 80,571

Outside AK Z3 42 2,494 8.0 19,952

PM Air, Total 16,181 100,523

Ryan Air 7S 35 7,322 3.7 27,091

412 6,883 17.0 117,011

479 189 9.9 1,871

486 657 12.5 8,213

Ryan Air, Total 15,051 154,186

Seaport K5 35 6,295 3.7 23,292

416 7,389 8.9 65,762

Intra-AK 13,684 89,054

416 9,155 8.9 81,480

479 7,427 9.9 73,527

Outside-AK 16,582 155,007

Seaport, Total 30,266 244,061

Servant Air Inc. 8D 35 4,384 3.7 16,221

40 101 5.1 515

416 302 8.9 2,688

Servant Total 4,787 19,424

Smokey Bay, Total 2E 35 6,066 3.7 22,444

Spernak Airways Inc. SNK 35 6,899 3.7 25,526

SNK 36 237 2.4 569

Spernak, Total 7,136 26,095

Tanana Air Service 4E 30 80 3.3 264

33 355 3.3 1,172

35 981 3.7 3,630

39 131 3.2 419

79 598 3.6 2,153

194 228 7.4 1,687

Tanana, Total 2,373 9,325

Venture, Total K3 40 9,397 5.1 47,925

Warbelow, Total 4W 194 11,468 7.4 84,863
Attachment D, Terminal

Appendix E

Year Ended September 30, 2013

Wright Air 8V 10 333 3.3 1,099

8V 34 1,780 3.8 6,764

8V 35 1,012 3.7 3,744

8V 194 1,117 7.4 8,266

8V 416 12,754 8.9 113,511

Wright, Total 16,996 133,384

Yute, Total 4Y 35 38,374 3.7 141,984

For Reference Purposes Only

Tatonduk 1/ 79 561 3.6 2,020

416 568 8.9 5,055

479 430 9.9 4,257

1,559 11,332

1/ Tatonduk's bush operation is such a small part of its total, we have excluded.