Intra-Alaska Bush Service Mail Rates

Order 2007-1-6
OST-2003-14694

Issued and Served January 9, 2007

Show Cause Order Proposing Updated Mail Rates - Bookmarked

By this order, the Department proposes to establish new intra-Alaska bush-service mail rates. Order 2006-8-27, August 30, 2006, updated the short runway Part 121 (SR-121) and regular runway Part 121 (R-121) rates, as well as Part 135, Seaplane, and terminal rates. Most recently, Order 2006-11-15, November 16, 2006, merged the SR-121 and R-121 rates. Those orders were based on data for the year ended June 30, 2005, and June 30, 2006, respectively. The rates we are proposing here reflect the same costing methodology used in recent orders, but merely use more recent data. The rates currently in effect will remain in effect until a final order is issued with respect to the rates tentatively proposed here.

We also tentatively dismiss the methodological costing issues first raised by the parties in response to Order 2006-3-5, except for imputing a minimum salary for certain carriers' owners/managers.

We direct all interested persons to show cause within 20 days why the Department should not fix, determine and publish final rates, as follows: Part 121, $5.7186 per mail revenue ton mile; Part 135, $11.3034 per mail revenue ton mile; Seaplane, $269896 per mail revenue ton mile; and Terminal, $649.55 per mail ton enplaned. These rates would be effective after the issuance of a final Department order, until further Department action.

By: Andrew Steinberg