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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@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; Mary.T.Taylor@usps.gov RE: Bush Rate Updates

Thanks for your email. I wouldnote that DOT has been highly responsive and proactive onthe issue ofintraAlaskamail rates, andrecognizes ourresponsibility to issue annual and quarterly updates.

Mail updates depend on good databeingprovided by the carriers and at times bythe 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 ofthe carriers are aware, we have recently worked intensivelywiththe Department's BureauofTransportation Statistics and the bush carriers to improve boththe accuracy, reliability, and timeliness ofthe catTier's data, especially their repmied expenses on Schedule F-2. As a result, the caniers have implemented web-basedreporting ofSchedule F-2 thatthey intend to continue to employ. Web-based reporting automatically conects several encoding problems which some ofthe carriers had been making. Those mistakes delayed the mail rate reviewby OST staff I am pleasedto 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; 1steve.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 currentbushrate hasbeen in place for more than a year now. Thepast practices ofDOT in establishing an annual rate update were altered on the last bushrate update due to the prolongedtime frame that was allowed for comments/responses to the docketed order. Whenthe last rate update was finally ordered in place, October 22, 2011, it was the DOT's decisionto extend the time frame periodfor the newrate to be e±Iective for one year, at which time the DOT would review the data and adjust the next bushrate accordingly. As withtheirprior orders, we would expectthe DOT to continue in the same vein when it's next update comes out. Will itbe 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 ofthe submitted costs ofthe considered carriers, it seems to us that it is important to keep the "annual" element ofthe established rate in place as ithas 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 ofwhen you intend to publish the nextbushrate update show cause?
Thanks
StevenDeaton 907-227-6784

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