The Postal Service determines whether it will utilize equalized service for the transport of in-house priority and non-priority service mail. The Postal Service recognizes that in some circumstances a combination of equalized and non-equalized service by mail class may be mutually advantageous. Upon receipt of a notice to equalize from the DOT, the Postal Service reviews the service and cost impacts associated with the equalized service using the guidelines in this section. Existing equalizations are always subject to reconsideration and new determinations of the need for their continuance for mail tender as the Postal Service’s changing needs, operational alternatives, and other factors may require.
In order to receive equitable tender of bypass mail on a route between an acceptance point and a hub point or between an acceptance point and a final destination where mainline air carrier service originates, an otherwise eligible air carrier must have provided for the past 6 months, and must continue to provide, at least 20 percent of the passenger service.
In order to receive equitable tender of bypass mail on a route between a hub point and a final destination where mainline air carrier service originates, an eligible air carrier must meet either of the following requirements:
- For a bush passenger air carrier, must have provided for the past 6 months, and must continue to provide, at least 20 percent of the passenger service.
- For a non-mail freight air carrier, must have provided for the past 6 months, and must continue to provide, at least 25 percent of the non-mail freight service.
For this purpose, continuity of service is measured using the preceding 12 months of DOT data.
The proposed schedule provided by the equalized air carrier must provide a definite service advantage over available transportation, based on the specific operating characteristics of both the origin and destination offices. The Postal Service may not use a proposed equalization that simply mirrors current schedules of existing air carriers unless it meets the criteria outlined in 2-4.4.3.2 or 2-4.4.3.3.
The Postal Service considers the use of equalized service in an origin/destination market when current transportation has not demonstrated reliability and consistency. If the available service is consistent and reliable, the Postal Service may not use the equalized transportation unless it meets the criteria outlined in 2-4.4.3.1 or 2-4.4.3.3.
The Postal Service may consider the use of equalized service when existing air carrier service fails to provide the space necessary to move the volume between the identified origin and destination markets within the published service standards. If the available transportation moves all the mail tendered to the final destination within the established service standards, the Postal Service may not use a proposed equalization unless it meets the criteria outlined in 2-4.4.3.1 or 2-4.4.3.2.
Generally, in-house non-priority service mail on routes served by mainline air carriers follows tender rules as defined in the statute for bypass mail.
The Postal Service may use certain equalizations for service considerations, normally involving priority rate service mail dispatch. When a mainline air carrier enters a market, the Postal Service considers the available capacity of the entering air carrier(s) before tendering in-house non-priority service mail. Subsequent to stabilization of the market, the Postal Service reviews the market for tender adjustments.
Note: See 6-2.4.1.1 for further discussion of equitable distribution.
For the purpose of priority rate service and in-house non-priority mail equalization reviews, the Postal Service considers the operational, administrative, and other indirect costs in addition to the service factors in 2-4.4.3.
The Postal Service monitors all existing equalizations, based on the criteria defined in 2-4.4, to ascertain if an equalized rate in a specific origin/destination should be implemented, retained, or discontinued. The Postal Service periodically reviews equalizations to determine if the equalized service is necessary. An air carrier can also request in writing that a review be performed in a specific origin/destination market where equalization exists. An air carrier requesting such a review must notify each air carrier operating in the market of its request.
