Mainline aircraft have two distinct pay rates — priority service rate and non-priority service rate — based on the type of mail and level of service required for that mail class (see chapter 6). The priority service rate is a higher rate of pay because the mail is moved on specific identified flights in a shorter timeframe than mail tendered at the non-priority service rate. The Postal Service determines the classification of mail as priority service or non-priority service.
All bush aircraft have a single pay rate designation, regardless of mail classification — i.e., the pay rate is the same for both priority service and non-priority service.
The rate of payment to the air carrier is based on the class of mail service (priority service rate or non-priority service rate), the class of the aircraft used to transport the mail (mainline or bush), the bush aircraft classification (Part 121 and Part 135), and bush aircraft landing capabilities (short-runway Part 121 and seaplane).
Note: The seaplane rate applies where only water landings are available.
Equalization occurs when an air carrier utilizing bush aircraft between an origin and a destination files with the DOT a notice of intent to equalize. By making that filing, the equalizing air carrier understands that it is accepting a lower existing rate of pay in the market.
A composite rate is paid to an equalized bush air carrier for a direct flight from an acceptance point to a bush destination beyond a hub point, if the result will be no degradation of passenger, freight, and/or mail service in and out of the hub point. This rate is based on the mainline linehaul rate paid to the hub point plus the lowest bush linehaul rate paid in Alaska for the distance traveled from the hub point to the destination point. A single origin terminal handling is paid at the bush terminal handling rate.
Any air carrier eligible to transport mail within Alaska can file a notice of intent to equalize with the DOT.
To record an equalization in a market, an air carrier must provide written notification to the DOT, to each air carrier providing service between the points, and to WADN, Denver. Copies sent to WADN, Denver must identify each origin/destination market included in the equalization.
Per DOT regulations, unless a later date is specified, the effective date of an equalization is the day that the DOT receives the written notice of intent to equalize in a market segment.
To withdraw an equalization in a market, an air carrier must provide written notification to the DOT, to each air carrier providing service between the points, and to WADN, Denver. Unless a later date is specified, the withdrawal is effective 10 days after the date that the air carrier files written notice.
