Order 2014-3-8

Served: March 14, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 14th of March, 2014

INTRA-ALASKA MAINLINE

SERVICE MAIL RATES

under 49 U.S.C. 41901 et seq.

Docket OST-2003-14695

(Docket 95-429)

Mainline Quarterly Fuel Update

The Department has indicated that we would update mail rates on a quarterly basis as more recent 

fuel data became available, with typically a one-quarter lag between the end of the reporting period 

and the effective period of the new rate. Consistent with that longstanding program practice, we 

here update the current rates, set by Order 2013-12-8, December 17, 2013, and based on fuel costs 

for the quarter ended September 30, 2013, to reflect fuel costs for the quarter ended December 31, 

2013, as shown in the Appendices to this Order. The next quarterly fuel update will be based on 

data for the quarter ended March 31, 2014, and would be effective on or about July 1, 2014.

This Order is issued under authority delegated in 49 CFR Part 1.25 a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We make final the rates set forth in Appendix A of this Order, effective March 29, 2014;

2. This docket shall remain open until further Order of the Department; and

3. We will serve this order upon all parties on the Service List for this Docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Regulations, 14 CFR 385.31 (a), must file such petitions within seven (7) days after the date of 

service of this Order. This Order will be effective immediately, and the filing of a petition for 

review shall not preclude its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available on the World Wide Web at

http://www.regulations.gov
Appendix A

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES

(1) (2) (3) (4) (5)

Effective

Base Year Adjustment 29-Mar-14 Change from

Rates 1/ Factors 2/ Final Rates 3/ Current Rate 4/ Current Rate 5/

Linehaul Charge per Billing Ton-Mile

Priority $1.1969 196.15% $3.5446 $3.5315 0.37%

Non-priority $0.7246 196.15% $2.1459 $2.1379 0.37%

Terminal Charge per Pound Originated

Priority $0.1697 127.11% $.3854 $.3854 0.00%

Non-priority $0.1458 127.11% $.3311 $.3311 0.00%

1/ Per Order 82-11-23.

2/ See Appendix B of this order. Unlike the linehaul charge, the terminal charge will not change from quarter to 

quarter with the quarterly fuel updates.

3/ Column (1) increased by Column (2).

4/ Per Order 2013-12-8, Appendix A.

5/ Column 3 ÷ Column 4 minus 1. Any differences between priority and nonpriority elements are due to rounding.
Appendix B

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES COST ADJUSTMENT FACTORS

Base Year

Ended Current New

9/30/80 Costs 2/ Costs

Unit Cost per Available Ton-Mile

 Fuel $0.51951 $0.52389 3/

 Nonfuel $0.65914 $0.65914 4/

 Total $0.399469 1/ $1.17865 $1.18303

Percentage Change from Base Year 195.05% 196.15% 5/

Unit Cost per Ton Enplaned $191.54 1/ $435.01 $435.01 4/

Percentage Change from Base Year 127.11% 127.11% 6/

1/ Order 82-11-23, updated most recently in Order 97-12-24.

2/ Appendix B of Order 2013-12-8.

3/ Appendix C of this Order.

4/ Appendix B of Order 2013-12-8.

5/ ($1.18303/$0.399469)-1.

6/ ($435.01/$191.54)-1.
Appendix C

 Operating Expenses, Alaska Airlines, Northern Air Cargo, Lynden Air Cargo, Peninsula Airways, Era Aviation, and Tatonduk Outfitters, Ltd.

Intra-Alaska Class Service Mail Rates--Quarter Ended December 31, 2013

Lynden Northern Northern

Alaska ERA Air Cargo Air Cargo Air Cargo Tatonduk Outfitters, Ltd.

Not by Aircraft Type AS 7H L2 NC NC 5V

1 Skd. P-12, Skd. Intra-Alaska Costs $14,023,431 NA $890,866 $3,287,951 $3,278,463

2 Skd. P-12, Skd. Intra-Alaska Gallons 4,687,216 NA 263,425 1,066,474 827,076

3 Cost per Gallon 1/ $2.99 NA $3.38 $3.08 $3.96

AS 7H L2 NC NC 3Z 3Z

#617 #483 #556 #619 #620 #218 640

By Aircraft Type Total B-737-400 DHC-8-100 Hercules 737-300 737-200 DC-6 DC-9-30

4 Domestic Gallons 2/ 15,911,000 802,294 441,092 1,183,444 331,615 605,952

5 Burn per Hour 3/ 791 172 714 817 883 401 931

6 Fuel 4/ $2,913,865 $1,569,576 $2,145,991

7 Intra-AK Skd. Blk. Hrs. 5/ 12,828 6,115 3,897 369 0 1,207 595 645

8 Domestic Block Hours 6/ 28,800 20,104 4,654 683 540 1,340 828 651

9 Intra-AK Fuel Exp. 7/ $24,329,661 $14,462,525 $2,439,908 $890,515 $0 $3,282,605 $1,127,896 $2,126,212

10 Intra-AK Skd. ATMs 5/ 47,971,228 30,997,193 3,003,789 2,348,120 0 6,199,602 1,691,372 3,731,152

11 Unit Cost/ATM, Fuel 8/ $0.507172 $0.466575 $0.812277 $0.379246 $0.529486 $0.666853 $0.569854

12 Intra-AK Mail RTMs 5/ 5,309,365 965,480 79,968 841,983 0 1,591,516 629,629 1,200,789

13 RTM Percent of Total 9/ 100.00% 18.184% 1.506% 15.858% 0.000% 29.976% 11.859% 22.616%

14 Wtd. Cost/ATM, Fuel 10/ $0.52389 $0.08484 $0.01223 $0.06014 $0.00000 $0.15872 $0.07908 $0.12888

1/ Row 1 ÷ Row 2. Era does not report Schedule P12. Tatonduk files that report but we do not use it here; it is included for comparison 

purposes only.

2/ Per Form 41, except for Era, where we rely on Schedule F2. 

3/ Row 4 ÷ Row 8. However, we divide Lynden's intra-Alaska Scheduled Gallons by its Intra-Alaska Scheduled Block Hours. Because Lynden

only operates one aircraft type, that calculation should accurately reflect its fuel burn.

4/ Per Form 41 for Tatonduk, Schedule F2 for Era. AS, L2, and NC are excluded, as we rely on their Schedule P12 above.

5/ T-100 Segment Report.

6/ T-100 Segment Report. 

7/ For AS, LC, and NC: Row 3 x Row 5 x Row 7;

 For 5V and 7H: Row 6 ÷ Row 8 x Row 7.

8/ Row 9 ÷ Row 10.

9/ Row 12 for each individual carrier ÷ Total Mail RTMs for all carriers on Row 12.

10/ Row 13 x Row 11 for individual carriers, and then summed across.