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Sent: 

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Subject: 

Steve, 

Adams, Kevin (OST) 

Friday, December 28, 2012 8:48 AM 

'Steven Deaton'; Chadwick, William (RITA); Rodes, Jennifer (RITA); Seguin, Marianne 

(RITA); Bryan, Kevin (OST) 

joy@alaskaaircarriers.org; Jeff.Munro@AiaskaAir.com; Joe.Sprague@Aiaskaair.com; 

msinick@ssd.com; Torque.Zubeck@alaskaair.com; Linda.bustamante@alaska.gov; 

rebecca.cronkhite@alaska.gov; rich.sewell@alaska.gov; steve.hatter@alaska.gov; 

James_Feldman@ Begich.senate.gov; Schawna_ Thoma@ begich.senate.gov; 

Jeremy _Price@ murkowski.senate.gov; Karen_McCarthy@mu rkowski.senate.gov; 

Warren_Wright@murkowski.senate.gov; Hank@MTCWorld.com; ken.acton@gmail.com; 

Avtech@Aiaska.net; RSilverberg@sgbdc.com; WDallis@flyera.com; 

kwing @evertsai r.com; REverts@evertsai r.com; TPaylor@ EvertsAir.com; 

bob@FrontierFiying.com; wragan@dhs.gov; amiller@lac.lynden.com; 

JStout@lac.lynden.com; Judy@lac.lynden.com; lcatoe@lac.lynden.com; 

mwilli@lac.lynden.com; Michaei.Duffy@dhs.gov; dsquier@nac.aero; dkarp@nac.aero; 

eric@saltchuk.com; kschlosstein@nac.aero; PPage@NAC.aero; POkeson@nac.aero; 

DannyS@PenAir.com; patrick.rizzi@hoganlovells.com; ScottB@penair.com; 

rragar@evertsair.com; Devany, Dennis (OST); Thibodeau, Jennifer (OST); Schlemmer, 

Kevin (OST); Leonard, Richard (RITA); gregorio.m.garcia@usps.gov; 

Joseph.Anzalone@usps.gov; Joy.C.Doby@usps.gov; Kevin.K.Hartner@usps.gov; 

Leonard.w.kilburn@usps.gov; robert.e.lochmann@usps.gov; Mary.T.Taylor@usps.gov 

RE: Bush Rate Updates 

Thanks for your email. I would note that DOT has been highly responsive and proactive on the issue of intraAlaska mail rates, and recognizes our responsibility to issue annual and quarterly updates. 

Mail updates depend on good data being provided by the carriers and at times by the Postal Service, and we are 

always looking to improve the accuracy and reliability ofthe T-100 traffic and Schedule F-2 expense data 

reported by the carriers. As most of the carriers are aware, we have recently worked intensively with the 

Department's Bureau of Transportation Statistics and the bush carriers to improve both the accuracy, reliability, 

and timeliness of the catTier's data, especially their repmied expenses on Schedule F-2. As a result, the caniers 

have implemented web-based reporting of Schedule F-2 that they intend to continue to employ. Web-based 

reporting automatically conects several encoding problems which some of the carriers had been making. Those 

mistakes delayed the mail rate review by OST staff I am pleased to indicate that the immediate issues have 

been resolved, and we are beginning our review. 

Best, 

Kevin Adams 

202-366-1047 

From: Steven Deaton [mailto:deaton.steven@gmail.com] 

Sent: Wednesday, December 26, 2012 1:16PM 

To: Adams, Kevin (OST) 

Cc: joy@alaskaaircarriers.org; Jeff.Munro@AiaskaAir.com; Joe.Sprague@Aiaskaair.com; msinick@ssd.com; 

Torque.Zubeck@alaskaair.com; Linda.bustamante@alaska.gov; rebecca.cronkhite@alaska.gov; rich.sewell@alaska.gov; 

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steve.hatter@alaska.gov; James Feldman@Begich.senate.gov; Schawna Thoma@begich.senate.gov; 

Jeremy Price@murkowski.senate.gov; Karen McCarthy@murkowski.senate.gov; Warren Wright@murkowski.senate.gov; 

Hank@MTCWorld.com; ken.acton@gmail.com; Avtech@Aiaska.net; RSilverberg@sgbdc.com; WDallis@flyera.com; 

kwing@evertsair.com; REverts@evertsair.com; TPaylor@EvertsAir.com; bob@FrontierFiying.com; wragan@dhs.gov; 

amiller@lac.lynden.com; JStout@lac.lynden.com; Judy@lac.lynden.com; lcatoe@lac.lynden.com; mwilli@lac.lynden.com; 

Michaei.Duffy@dhs.gov; dsquier@nac.aero; dkarp@nac.aero; eric@saltchuk.com; kschlosstein@nac.aero; 

PPage@NAC.aero; POkeson@nac.aero; DannyS@PenAir.com; patrick.rizzi@hoganlovells.com; ScottB@penair.com; 

rragar@evertsair.com; Devany, Dennis (OST); Thibodeau, Jennifer (OST); Schlemmer, Kevin (OST); Leonard, Richard 

(RITA); gregorio.m.garcia@usps.gov; Joseph.Anzalone@usps.gov; Joy.C.Doby@usps.gov; Kevin.K.Hartner@usps.gov; 

Leonard.w.kilburn@usps.gov; robert.e.lochmann@usps.gov; Marv.T.Taylor@usps.gov 

Subject: Bush Rate Updates 

Kevin, 

As I am sure you are aware, the current bush rate has been in place for more than a year now. The past 

practices of DOT in establishing an annual rate update were altered on the last bush rate update due to the 

prolonged time frame that was allowed for comments/responses to the docketed order. When the last rate 

update was finally ordered in place, October 22, 2011, it was the DOT's decision to extend the time frame 

period for the new rate to be e±Iective for one year, at which time the DOT would review the data and adjust the 

next bush rate accordingly. As with their prior orders, we would expect the DOT to continue in the same vein 

when it's next update comes out. Will it be your intention to continue the one year effective period on the next 

rate? 

While it is i1Televant whether the rate goes up or down, as it is a re±1ection of the submitted costs of the 

considered carriers, it seems to us that it is important to keep the "annual" element of the established rate in 

place as it has been carried out in the past. It also should be noted that the RSIA also dictates "annual update" 

under section (k). 

Do you have some idea of when you intend to publish the next bush rate update show cause? 

Thanks 

Steven Deaton 

907-227-6784 

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