Intra-Alaska Bush Service Mail Rates

Order 2007-2-7
OST-2003-14694

Issued and Served February 5, 2007

Order Setting Final Bush Mail Rates Until Further Department Action

By this order, the Department is finalizing the mail rates tentatively set by Order 2007-1-6. The rates currently in effect were based on data for the year ended June 30, 2005, and were set by Orders 2006-8-27 and 2006-11-15. Order 2006-8-27 set the currently effective Part 135, Seaplane, and terminal rates, and Order 2006-11-15 the Part 121 rate. The rates proposed by Order 2007-1-6 were based on data for the year ended June 30, 2006, and fuel expenses for the quarter ended September 30, 2006, the most recent quarter available.

We received objections to a number of methodological issues, which we will address in the coming months. The management cost issue raised by both the Postal Service and the Consolidated Carriers will be considered as we continue to review all other methodological comments. The increase in the rate caused by the Department's treatment of this issue is small. We estimate this adjustment makes the seaplane linehaul rate 1.2 percent higher than otherwise, and that rate applies to fewer mail revenue ton miles than any of the other classes of service paid by the Postal Service for carriage of intra-Alaska mail.

Also, because of our long standing policy of having final rates in place at all times, we do not believe it is appropriate to wait until this issue can be fully discussed by the carriers and supporting data filed before we make the small adjustment we are making here. We will consider the comments that parties file before deciding how to deal with this issue in future orders.

By: Andrew Steinberg