·_.;; .l .. 

Mr. Robert Letteney 

Deputy Assistant Secretary for 

Aviation and International Affairs 

U.S. Department of Transportation 

Dear Sir, 

Over the past few years, the Postal Air Carriers Workgroup (PAWS), consisting of air carrier 

representatives and postal officials, has been addressing measures and ideas to promote greater 

efficiencies in Alaskan mail transportation (with the goal being to reduce costs to the Postal Service). 

Additionally, other issues affecting Alaskan Air Carriers or the US Postal Service are routinely addressed. 

Recently, the workgroup has had numerous discussions regarding D.O.T. delays in the issuance of postal 

rate adjustments. Beginning in 1934 with the "Air Mail Act of 1934", agencies within the United States 

Federal Government have been tasked with providing the Carriers and the USPS with rates for mail 

transportation. This was reaffirmed in subsequent revisions in 1958, 1984, and as recently as the Rural 

Service Improvement Act of 2002. Specifically, rate adjustments are to be provided by the D.O.T. on an 

annual basis, utilizing data provided by the Air Carrier industry. In Alaska, there are two basic mail rate 

categories, Bush and Mainline, which are based on aircraft classification, aircraft landing capability and 

payload capacity. 

The gathered representatives of PAWS have discussed the following points and question how D.O.T. 

plans on moving forward to resolve these occurrences: 

• Current annual Bush mail rate adjustment is overdue based upon statutory 

requirements 

• Current Quarterly Fuel Adjustments for the Bush mail rate are overdue 

• No official timeline for mail rate(s) issuance has been provided by D.O.T. 

• In light of possible upcoming retirements, departmental restructuring, and potential loss 

of historical knowledge (specifically Mr. Kevin Adams}, there is concern regarding 

transitional impacts on D.O.T. performance, specifically, to Alaska mail rate(s) and 

carriage issues 

It is important to note that D.O.T. continues to set the mainline mail rate annually, as statutorily 

required, while the bush mail rate has remained unchanged for over sixteen months. PAWS cannot 

stress enough the importance of timely rate adjustments and issuance for carriers, as well as, the Postal 

Service. Carriers conduct long term planning and without the certainty affair remuneration, carriers will 

be reluctant to provide new, more efficient ways of serving Alaskan communities. 

As stated in 39 USC§ 5402 (k) 

(1) At least once every 2 years, in conjunction with annual updates, the Secretary shall review the 

need for a bush mail rate investigation. The Secretary shall use show cause procedures to 
speedily and more accurately determine the cost of providing bush mail service. In determining 

such rates, the Secretary shall not take into account the cost of passenger insurance rates or 

premiums paid by the passenger carriers or other costs associated with passenger service. 

Members of the PAWS workgroup are cognizant ofthe numerous variables involved in the mail ratemaking process and appreciate the time and effort expended by D.O.T. personnel. However, we request 

a response regarding the above bulleted items, as well as, the immediate issuance of an updated bush 

mail rate and quarterly fuel adjustment. 

The Postal Air Carriers Workgroup consists of, but not limited to the following: 

Alaska Airlines 

Alaska Central Express 

Bering Air 

Era Alaska (dba Era Aviation) 

Everts Air Cargo 

Grant Aviation 

Lynden Air Cargo 

Northern Air Cargo 

Pen Air 

Ryan Air (ATS) 

United States Postal Service (non-voting, observer) 

Warbelow's Air Service 

Wrights Air Service 

Yute Air Alaska