Order 2010-12-11 

Served: December 7, 2010 

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UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 7^ of December, 2010 

INTRA-ALASKA MAINLINE 

SERVICE MAIL RATES 

Docket OST-2003-14695 

Mainline Quarterly Fuel Adjustment 

Summary 

By this order, the Department is making its regular quarterly adjustments to Intra-Alaska 

Mainline mail rates to reflect the most recent quarterly fuel costs. The new rates are to be 

effective on January 1, 2011, and reflect fuel expenses for the quarter ended September 30, 

2010. 

Background 

Order 2010-8-7 tentatively established final annual Intra-Alaska mainline mail rates. After 

receiving no objections, Order 2010-9-7 finalized those annual rates, and also updated the 

annual rates in the show-cause order to reflect fuel expenses for the quarter ended June 30, 

2010, the most recent fuel expenses available at that time. We have indicated that we will 

continue to make regular quarterly fiiel updates. 

This order updates the rates in Order 2010-9-7 to reflect fuel costs for the quarter ended 

September 30, 2010, the most recent data available. The next quarterly fuel update, based 

on data for the quarter ended December 31, 2010, will be effective on or about 

April 1,2011. 

Payment Parameter 

Linehaul, $/RTM 

Linehaul, $/RTM 

Terminal, $/Lb. Enplaned 

Terminal, $/Lb. enplaned 

Service 

Class 

Priority 

Nonpriority 

Priority 

Nonpriority 

Current Rates, 

Order 2010-9-7 

$3.2071 

$1.9416 

$0.3617 

$0.3108 

Update for 

OE 9-30-10 Fuel 

$3.1963 

$1.9350 

$0.3617 

$0.3108 

Percentage 

Change 

-0.34% 

-0.34% 

0.00% 

0.00% 

ACCORDINGLY, 

1. We make final the rates set forth in Appendix A, effective January 1, 2011, until further 

Department action; 

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 
-2-

Regulations, 14 CFR 385.30, must file such petitions within ten (ten) days after the date of 

service of this order. The filing of a petition for review shall not stay 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:/ /vyrv/w.regulations.gov 
Appendix A 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES 

(I) 

Base Year 

Rates 1/ 

(2) 

Adjustment 

Factors 2/ 

(3) 

Final Rates 3/ 

(4) (5) 

Change from 

Current Rate 4/ Current Rate 5/ 

Linehaul Charge per Billing Ton-Mile 

Priority 

Non-priority 

$1.1969 

$0.7246 

167.05% 

167.05% 

$3.1963 

$1.9350 

$3.2071 

$1.9416 

-0.34% 

-0.34% 

Terminal Charge per Pound Originated 

Priority $0.1697 113.16% $.3617 $.3617 

Non-priority $0.1458 113.16% $.3108 $.3108 

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 2010-9-7. 

5/ Any differences between priority and nonpriority elements are due to rounding. 

0.00% 

0.00% 
Appendix B 

INTRA-ALASKA MAINLINE CLASS SERVICE MAIL RATES COST ADJUSTMENT FACTORS 

Base Year 

Ended 

9/30/80 

Unit Cost per Available Ton-Mile 

Fuel 

Nonfuel 

Total $0.399469 1/ 

Current 

Rate 

$0.42740 2/ 

$0.64299 3/ 

$1.07039 

New 

Rate 

$0.42380 11 

$0.64299 8/ 

$1.06679 

Percentage Change from Base Year 167.95% 4/ 167.05% 9/ 

Unit Cost per Ton Enplaned $191.54 1/ 

Percentage Change from Base Year 

$408.29 5/ 

113.16% 6/ 

$408.29 10/ 

113.16% 11/ 

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

2/ Appendix C of Order 2010-9-7. 

3/ Appendix B of Order 2010-9-7. 

4/ Appendix A of Order 2010-9-7. 

5/ Appendix B of Order 2010-9-7. 

6/($408.29/$ 191.54)-1. 

II Appendix C of this order; QE 9-30-10. 

8/ Appendix B of Order 2010-9-7. 

9/($l.06679/$0.399469)-l. 

10/ Appendix B of Order 2010-9-7. 

11/($408.29/$ 191.54)-1. 
Appendix C 

Intra-Alaska Mainline Mail Costs - Quarter Ended September 30, 2010 

Alaska 

Airlines 

AS 

Lynden Northern 

Air Air Cargo Everts Air Cargo 

LAC NAC —-EAC 

Fuel 1/ 

Intra-AK Skd. Blk. Hrs. 

Total Block Hours 

Grand 

Total 

$48,901,481 

10,689 

27,130 

#617 

737-400 

$39,656,000 

6,775 

22,065 

#556 

Hercules 

$1,308,481 

414 

755 

#620 

B-737-200 

$4,314,079 

1,530 

1,889 

#218 

DC-6 

$3,438,070 

1,588 

2,003 

#461 

Brasilia 

$184,851 

382 

418 

Intra-AK Fuel Expense $19,282,636 $12,176,270 $717,498 $3,494,198 $2,725,739 $168,931 

Intra-AK Skd. ATMs 

Unit Cost/ATM, Fuel 

51,069,735 35,609,725 

$0.377575 $0.341937 

2,638,698 7,748,306 4,746,885 326,121 

$0.271914 $0.450963 $0.574216 $0.518001 

Intra-AK Mail RTMs 

RTM Percent of Total 

Wtd. Cost/ATM, Fuel 

5,861,481 1,718,387 

100.00% 29.317% 

$0.42380 $0.10025 

1,019,823 1,356,536 1,641,572 125,163 

17.399% 23.143% 28.006% 2.135% 

$0.04731 $0.10437 $0.16081 $0.01106 

Intra-Alaska Mainline Mail Costs - Quarter Ended June 30, 2010, Per Order 2010-9-7 

Fuel 1/ 

Intra-AK Skd. Blk. Hrs. 

Total Block Hours 

Grand 

Total 

$48,149,745 

9,717 

26,866 

Alaska 

Airlines 

AS 

#617 

737-400 

$39,585,683 

6,329 

22,367 

Lynden 

Air 

LAC 

#556 

Hercules 

$1,299,558 

386 

622 

Northern 

Air Cargo 

NAC 

#620 

B-737-200 

$4,169,450 

1,294 

1,798 

Everts Aii 

#218 

DC-6 

$2,953,342 

1,417 

1,763 

Cargo 

-EAC 

#461 

Brasilia 

$141,712 

291 

316 

Intra-AK Fuel Expense $17,512,638 $11,201,224 $806,478 $3,000,705 $2,373,730 $130,501 

Intra-AK Skd. ATMs 

Unit Cost/ATM, Fuel 

47,250.504 33,642,470 

$0.370634 $0.332949 

2,490,742 6,580,215 4,279,434 257,643 

$0.323790 $0.456019 $0.554683 $0.506519 

Intra-AK Mail RTMs 

RTM Percent of Total 

Wtd. Cost/ATM, Fuel 

5,526,242 1,625,486 

100.01% 29.41% 

$0.42740 $0.09792 

883,008 1,360,842 1,550,508 106,398 

15.98% 24.63% 28.06% 1.93% 

$0.05174 $0.11232 $0.15564 $0.00978 

Note: 

Data for Alaska, NAC, and EAC are from the T-lOO Segment and Form 41 reports. Data for Lynden 

are from special reports filed by the carrier. Alaska's fuel expense is for its domestic region only, 

i.e., it excludes its Latin American division.