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.. Mr. Robert Letteney DeputyAssistant Secretary for Aviation and International Affairs U.S. Department ofTransportation Dear Sir, Overthe past fewyears, the Postal AirCarriers Workgroup (PAWS), consisting ofair carrier representatives and postal officials, has been addressing measures and ideas to promote greater efficiencies in Alaskan mail transportation (withthe goal being to reduce costs tothe Postal Service). Additionally, other issues affectingAlaskan Air Carriers orthe 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 1934with the "Air Mail Act of 1934", agencies within the United States Federal Government have been tasked with providingthe 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 ImprovementAct of2002. 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 ofPAWS have discussed thefollowing points and question how D.O.T. plans on movingforward to resolve these occurrences:

• Current annual Bush mail rate adjustment is overdue based upon statutory requirements • Current Quarterly Fuel Adjustmentsforthe Bush mail rate are overdue • No official timelinefor mail rate(s) issuance has been provided by D.O.T. • In lightofpossible 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 importantto notethat D.O.T. continues to setthe mainline mail rate annually, as statutorily required, while the bush mail rate has remained unchanged forover sixteen months. PAWS cannot stress enough the importance oftimely rate adjustments and issuance forcarriers, as well as, the Postal Service. Carriers conduct longterm planning and withoutthe certainty affair remuneration, carriers will be reluctant to provide new, more efficientways ofserving Alaskan communities. As stated in 39 USC§ 5402 (k) (1) At least once every 2years, in conjunction with annual updates, the Secretary shall reviewthe need for a bush mail rate investigation. The Secretary shall use show cause procedures tospeedily and more accurately determinethe cost ofproviding bush mail service. In determining such rates, the Secretary shall nottake into account the cost ofpassenger insurance rates or premiums paid by the passenger carriers orothercosts associated with passenger service.
Members ofthe 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 ofan updated bush mail rate and quarterlyfuel adjustment.

The Postal Air Carriers Workgroup consists of, but not limited to the following:
Alaska Airlines Alaska Central Express BeringAir Era Alaska (dba Era Aviation) Everts Air Cargo GrantAviation Lynden AirCargo Northern Air Cargo Pen Air Ryan Air (ATS) UnitedStates Postal Service (non-voting, observer) Warbelow's AirService Wrights Air Service Yute AirAlaska