### Orde r 2011-3-3 5 Served : Marc h30 , 201 1 UNITE D STATE S O FAMERIC A DEPARTMEN T O FTRANSPORTATIO N OFHC EO FTH ESECRETAR Y WASHINGTON , D.C
. Issue db y th e Departmen t o f Transportatio n o n th e 30" ^ o f

March , 201 1
INTRA-ALASK A MAINLIN E SERVIC EMAI LRATE S Docke t OST-2003-1469 5

Mainlin e Quarterl y Fue l Adjustmen t Summar y B y this order , th e Departmen t i s makin g it s regular

quarterl y adjustment s t o Intra-AIask a Mainlin e mai l rate s t o reflec t th e mos t recen t quarterl y fue

l costs . Th e ne w rate s ar e t o b e effectiv e o n Apri l 2 , 2011 , an dreflec t fuel expense s for

th e quarte r

ende dDecembe r

31 , 2010
. Backgroun d Orde r 2010-8- 7 tentativel y establishe dfina l annua l Intra-Alask amainlin e mai l rates . After receivin g n o objections
. Orde r 2010-9- 7 finalize dthos e annua ! rates , an dals o update dth e armua l rate s i n th e show-caus e orde r t o reflec t fuel expense s for

th e quarte r

ende dJun e 30 , 2010 , th e mos t

recen t fuel expense s availabl e a t tha t time
. W e hav e indicate dthat w e wil l continu e t o mak e regular

quarterl y fue

l updates , an dmos t

recentl y Orde r

2010-12-1 1 mad e an adjustment
. Thi s orde r

update s th e rate s i n Orde r 2010-12-1 1 t o reflec t

fue l cost s for

th e quarte r

ende d Decembe r

31 , 2010 , th e mos t

recen t dat aavailable
. Th e nex t

quarterl y fuel update , base do n dat afo r th e quarte r

ende dMarc h31 , 2011 , wil l b e effectiv e o n o r abou t Jul y 1
. 2011
. W e not e tha t

Lynden' s uni t

cos t pe r AT M show s a37.0 5 percen t increas e fro mth e precedin g quarter , whic hi s significantl y mor e than that for an y othe r

carrier
. W e aske d Lynde n t o revie w it s numbers , an dth e carrie r indicate dtha

t th e reaso n for

tha t apparen t discrepancy wa s tha t

i t ha dunderstate dit s uni t

cos t pe r RT M i n th e precedin g quarter . Becaus e rate s ar e final an dno t subjec t t o retroactiv e adjustment , w e wil l no t revis e th e prior quarter' s rate , whic hwa s understated
. Pavmen t Paramete r LinehauJ , $/RT M Linehaul,$/RT M Terminal , $/Lb
. Enplaned Terminal , $/Lb
. enplane d Servic e Clas s Priority Nonpriority Priority Nonpriority Curren t Rates , Orde r 2010-12-1 1 $3.196 3 $1.935 0 $0.36( 7 $0.310 8 Updat e fo r O E12-31-1 0 Fue l $3.319 1 $2.009 4 S0.36I 7 $0.310 8 Percentag e

Chang e 3.84 % 3.84 % 0.00 % 0.00 %

### -2

-

ACCORDINGLY , 1
. W e mak e fina

l th e rate s se t

fort hmAppendi x A , effectiv e Apri l 2 , 2011 , 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 Service Lis t for thi s Docket
. Person s entitle dt o petitio n th e Departmen t for revie w o f

thi s orde r

unde r th e Department' s Regulations , 1 4 CF R385.30 , mus t fil e suc hpetition s withi n te n (ten ) day s after th e dat e o f servic e o f thi s order
. Th e filin g o f

apetitio n for

revie w shal l no t

slay it s effectiveness
. By :

TOD D M
. HOMA N Directo r Offic e o f Aviatio n Analysi s (SEAL ) An electroni c versio n o f

thi s documen t

i s availabl e o n th e Worl dWid e We b a t http://www.regulations.go vAppendi. \A INTRA-ALASKA MAINLIN ECLAS S SERVIC EMAI LRATE S

( I ) Bas e Yea r Rate s 1 / (2 )

Adjustmen t Factor s 2/ (3 )

Final Rate s 3 / (4 ) (5 ) Chang e from CiiiTen t Rate 4 / Curren t

Rate 5 /
Linehau l Charg e pe r

Billin g Ton-Mil e

Priority Non-priority $1.196 9 $0.724 6 177.31 %

177.31 % $3.319 1

$2.009 4 $3.196 3

$L935 0 3.84 %

3.84 %

Termina l Charg e pe r

Poun dOriginate d

Priority Non-priority $0.169 7 $0.145 8 113.16 %

113.16 % $.361 7 $.310 8 .361 7 .310 8 0.00 %

0.00 % 1/Per Orde r 82-11-23
. 2/Se e Appendi x B o f

thi s order
. Unlik e th e linehau l charge , th e termina l charg e will not chang e fro

mquarte r t o quarte r wit hth e quarterl y fue

l updates
. 3/Colum n (1 ) increase db y Column (2)
. 4/Pe r Orde r 2010-12- 1 I
. 5 / Any difference s betwee n priority an dnonpriority element s ar e du e t o rounding
.Appendi x B

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

Bas e Year Ende d 9/30/8 0
Uni t Cos t pe r Availabl e Ton-Mil e Fue l Nonfuel Total $0.39946 9 1/ Curren t Cost s

S0.4238 0 2 / $0.6429 9 3 / $1.0667 9 Ne w Cost s
$0.4647 6 7 / $0.6429 9 8/ $1.1077 5
Percentag e Chang e fro

mBas e Year 167.05 % 4 / 177.31 % 9 /
Uni t Cos t pe r To n Enplane d$191.5 4 1 / Percentag e Chang e fro

mBas e Yea

r $408.2 9 5 / 113.16 % 6/ $408.2 9 10 / 1 13.16 % 11 /

1 / Orde r 82-1 1 -23 , update dmos t recentl y i

n Orde r 97-12-24
. 2 / Appendi x C o f

Orde r 2010-12-11
. 3 / Appendi x B o f

Orde r 2010-12-11
. 4 / Appendi x A o f

Orde r 2010-12-11
. 5 / Appendi x B of

Orde r 2010-12-11
. 6/($408.29/$19l.54)-I
. 7 / Appendi x C o f

thi s order
. 8 / Appendi x B o f

Orde r 2010-12-11
. 9/($1.10775/$0.399469)-I
. 10 / Appendi x B o f

Orde r 2010-12-11
. 11/($408.29/ $ 191.54)-1
.Appendi x C Intra-Alask aMainlin e Mai l Cost s - Quarter Ende dDecembe r

31
. 201 0

Fuel 1 / Intra-A K Skd
. BIk
. Hrs
. Total Bloc k

Hour s Gran d Tota l $51,187,62 3 9,55 0 26,06 6 Alask a

Airline s A S #61 7 737-40 0 $42,767,69 1 6,32 1 21,88 7 Lynde n

Ai r LA C #55 6 Hercule s $1,211,56 8 40 2 50 4 Northern Ai r Carg o NA C #62 0 B-737-20 0 $3,932,47 8 1.05 6 1,58 3 Evert s Ai r

Carg o

- -EAC

- #21 8 DC- 6 $3,152,74 9 1,545 1.85 2 #46 1

Brasili a $123,13 7 22 6 24 0 Intra-A K Fue l Expens e $18,687,13 6 $12,351,37 6 $966,37 0 $2,623,30 8 $2.630,12 8 $ 115,95 4 Intra-A K Skd
. ATM s Uni t Cost/ATM , Fuel Intra-A K Mai l RTM s RT M Percen t

o f Total Wtd
. Cost/ATM
. Fue l 45.166,16 5 $0.41374 2 5,567,71 9 100.00 % $0.4647 6 32,512,47 8

$0.37989 6 1.727.28 8 31.023 % $0.1178 6 2,593,24 9

$0.37264 8 936,67 7 16.823 % $0.0626 9 5.297,04 2

$0.49524 0 1,128.77 2 20.274 % $0.1004 0 4,566.83 2

$0.57592 0 1,690.95 4 30.37 1 % $0.1749 1 196,56 4

.$0.58990 5 84.02 8 1.509 % $0.0089 0 Intra-Alask aMainlin e Mai l Ccst s - Quarter Ende dSeptembe r

30 , 20(0
. Per

Orde r 20IO-(2-I (

Fue l 1/ Intra-A K Skd
. Blk
. Hrs
. Total Bloc k

Hour s Gran d Total $48,901,48 1 10.68 9 27.13 0 Alask a

Airline s A S #61 7 737-40 0 $39,656,00 0 6,77 5 22,06 5 Lynde n

Air LA C #55 6 Hercule s $1,308,48 1 41 4 75 5 Northern Air Carg o NA C #62 0 B-737-20 0 $4,314,07 9 1.53 0 1,88 9 Everts Air

Carg o
#21 8 DC- 6 $3,438,07 0 1,58 8 2,00 3 -EA C #46 1

Brasili a $ 184,85 1 38 2 41 8 InU"a-A K Fuel Expens e $19,282,63 6 $12,176,27 0 $717,49 8 $3,494.19 8 $2,725,73 9 $ 168,93 1 Intra-A K Skd
. ATM s Uni t Cost/ATM , Fuel Intra-A K Mai l RTM s RTM Percen t

of Tota l Wtd
. Cost/ATM
. Fue l 51,069,73 5 $0.37757 5 5,861,48 1 100.00 % $0.4238 0 35.609,72 5

$0.34193 7 1.718.38 7 29.317 % $0.1002 5 2.638,69 8

$0.27191 4 1,019.82 3 17.399 % $0.0473 1 7.748.30 6

$0.45096 3 1.356,53 6 23.143 % $0.1043 7 4,746,88 5

$0.57421 6 1,641.57 2 28.006 % $0.1608 1 326.12 1

$0.51800 1 125.16 3 2.135 % $0.0110 6 Note : Dat afo r Alaska , NAC , an dEA C are fro mthe T-10 0 Segmen t

an dFor m4 1 reports . Dat afo

r Lynde n are fromspecial report s file db y th e carrier
. Alaska' s fue l expens e i s fo

r it s domesti c regio n only , i.e. , i t exclude s it s Lati n American division
.