“Equitable distribution” means the practice by the Postal Service of making a fair and reasonable — but not necessarily equal — division of mail. When two or more air carriers in the same passenger or non-mail freight distribution pool established pursuant to 39 U.S.C. 5402(h) and (i) serve the same points with equivalent service in terms of requirements and cost, the Postal Service distributes non-priority bypass mail equitably between the air carriers.
In accordance with 39 U.S.C. 5402(g)(7), the Postal Service retains the right to dispatch in-house non-priority mail using methods that it determines sensible to maintain efficiencies and service, to control costs, and to promote competition. (See also 2-4.4 concerning equalization.)
The Postal Service determines an air carrier’s initial entry and classification into distribution pools by the preceding 12 months of traffic data. After the initial classification, the Postal Service recalculates these pools monthly. For an air carrier entering on a date other than the first day of the month, the Postal Service measures its eligibility from the date of actual entry, and the air carrier becomes eligible for placement in the pool at the beginning of the following month. Thereafter, the Postal Service evaluates the air carrier monthly using the most recent 12 months of data available.
If an air carrier enters markets with exempt status pursuant to 39 U.S.C. 5402(h)(3), the Postal Service, at its discretion, may place the air carrier into equitable distribution at any time during the month.
The Postal Service considers the additional factor of the actual mail rate being paid to the competing air carriers operating in a market. In markets that have equalized air carriers, the Postal Service also considers indirect costs in addition to the direct costs associated with differences in pay rates. Indirect costs include, but are not limited to, impacts on the class rates, administrative costs, and mail processing costs. The Postal Service is justified in dispatching mail to the air carriers causing the least overall negative impact on costs.
If an air carrier has documentation that suggests that it may not be receiving an equitable share of the mail moving between an origin/destination market, the air carrier may request that the Postal Service review its equitable distribution practices in the specified origin/destination market. The air carrier must make the request in writing and submit it, along with documentation to support the claim, to WADN, Denver.
WADN, Denver investigates the distribution practices and responds to the air carrier in writing with its findings. If necessary, the Postal Service takes action to correct the equitable tender share of the mail between the identified market; however, the Postal Service does not make retroactive adjustments.
The Postal Service dispatches priority rate service mail to specific flights based on service responsiveness. The Postal Service determines distribution of priority rate service mail between air carriers as outlined in this section.
- The Postal Service considers the following criteria (and it may consider additional criteria at its discretion) when determining a dispatch of value flight (i.e., one that best serves the needs of the Postal Service to satisfy the service commitment) between any origin/destination pair:
- Service commitments.
- Origin and destination hours of operation.
- Origin and destination facility operating commitments.
- Air carrier schedules (i.e., departure/arrival times, frequency, number of stops or points served).
- Air carrier performance, including factors such as lift capacity, type of equipment, adherence to scheduled operation, and reliability of performance.
- Cost.
- The Postal Service reserves the right to select the dispatches of value to move priority rate service mail for service responsiveness between any origin/destination pair.
The Postal Service dispatches bypass process Parcel Post® mail in accordance with the regulations that are contained elsewhere in this handbook (primarily in chapter 8 and in Appendix A) and that implement the provisions in 39 U.S.C. 5402.
Generally, the Postal Service dispatches in-house non-priority mail in accordance with the provisions in 39 U.S.C. 5402; however, the Postal Service retains the authority to utilize alternative distribution methods for in-house non-priority mail in addition to those described in 2-4.4.4. The Postal Service selects the method of mail distribution to air carriers at its discretion on a market-by-market basis. Listed below are some requirements for this process:
- An air carrier must accept dispatched mail at origin Postal Service facilities at least once a day or as directed by the administrative official. On-time performance is based on the air carrier’s arrival time plus delivery time within the transit window.
- When volume available for tender in a specific origin/destination market exceeds all air carriers’ capacities, the Postal Service carries over the undistributed mail for tender the next day and then accomplishes equitable distribution in accordance with the preceding guidelines.
- The air carrier transports non-priority rate service mail tendered by the Postal Service when it has space available for such transportation. Once non-priority rate service mail is enplaned, an air carrier must not remove it at an intermediate point to accommodate any other traffic. Only WADN, Denver may authorize requests for deviations to this policy.
- Equitable distribution calculations are not adjusted on the basis of mail transferred between air carriers via PS Form 2734, as provided in this chapter. When transferring mail, the air carrier holding the mail must transport and make it available to the air carrier designated by the Postal Service within 120 minutes for either interline or intraline transfer, but no later than 60 minutes before flight time.
When an air carrier is unable to transport all or a portion of the mail tendered to it in a specific origin/destination market within the transit window, the air carrier must immediately contact the local administrative Postal Service official for instructions on transferring the portion of the tendered volume that it cannot transport. If the mail is transferred to another air carrier, the total volume tendered is recorded as part of the original air carrier’s equitable tender. The transferred volume is not added to the receiving air carrier’s equitable tender volume for the specified origin/destination market.
When an air carrier is consistently unable to transport all or a portion of the mail tendered to it in a market, or is consistently unable to meet scheduled performance or facility requirements, the Postal Service considers that air carrier’s service to be non-beneficial. The air carrier’s service is considered deficient if any of the following situations occurs:
- In two consecutive 1-week reporting periods, the air carrier delivers less than 100 percent of the mail tendered to the destination/interline air carrier within the transit window.
- During any 30-day period, the air carrier’s service performance is erratic.
- At any time, the air carrier does not notify the Postal Service of an inability to transport, with the result that the mail is transferred to another air carrier and the mail is not transported within the original transit window. The transferring air carrier is not held responsible for the receiving air carrier’s failure to transport within the original transit window.
Once the Postal Service determines an air carrier is non-beneficial in a market, the Postal Service removes the air carrier from equitable distribution in that market until the air carrier demonstrates the capability to operate consistently within its published schedule with capacity to move or accept the volume of mail tendered or transferred to it within the allowed transportation timelines.
An air carrier must transport non-priority rate service mail in accordance with the transit times in 6-2.4.2.5.2 or 6-2.4.2.5.3, as appropriate.
See also Appendix K for hub and bush point transfer and delivery times.
Note: For both mainline and bush air carriers, when inclement weather or adverse flight conditions prevent all aircraft from traveling from an origin to a destination, the transit times is extended by the amount of time related to the interruption in service caused by the event.
A mainline air carrier must transport non-priority rate service mail in accordance with the following transit times:
- Direct Service to a Hub Point/Bush Destination: The air carrier must transport in-house non-priority service mail from origin to hub point Post Office, to transfer air carrier, or if direct transportation, to bush Post Office destination by the end of the second business day following the day of tender.
- Mail Transferred at a Hub Point to a Bush Destination: The air carrier receiving the transferred mail at the hub point must transport in-house non-priority service mail to the final destination by the end of the second business day following the day of receipt.
A bush air carrier must transport non-priority rate service mail in accordance with the following transit times:
- Direct Service to a Hub Point/Bush Destination: The air carrier must transport in-house non-priority service mail from origin to hub point Post Office, to transfer air carrier, or if direct transportation, to bush Post Office destination by the end of the business day following the day of tender.
If extraordinary circumstances require the hub point Post Office to be closed during its normal business hours, the air carrier must do the following:
- Deliver the mail to the Post Office’s locking vestibule.
- If the Post Office has no locking vestibule, deliver the mail within 1 hour after the Post Office opens on the next business day.
- Mail Transferred at a Hub Point to a Bush Destination: The air carrier receiving transferred mail at the hub point must transport in-house non-priority service mail to the final destination by the end of the business day following the day of receipt.
If extraordinary circumstances require the hub point Post Office to be closed during its normal business hours, the air carrier must do the following:
- Deliver the mail to the Post Office’s locking vestibule.
- If the Post Office has no locking vestibule, deliver the mail within 1 hour after the Post Office opens on the next business day.
- Undeliverable Mail Destinating at a Bush Point: When mail arrives at a bush destination when the Post Office is closed or bypass mail is not able to be delivered to addressee, the air carrier must return the mail to the authorized storage facility at the hub.
When an air carrier in possession of non-priority rate service mail fails to meet the established transit times defined in 6-2.4.2.5, the Postal Service will not tender additional non-priority rate service mail to that air carrier until the backlog has been substantially reduced or eliminated. The Postal Service may require the air carrier to transfer the delayed mail to another air carrier, depending on the current ramp and dispatch conditions as determined by the Postal Service.
All certificated air carriers participating in the transportation of mail within Alaska must comply with all federal, state, and local laws and regulations. If there is any conflict between any safety law or regulation and this handbook, the safety law or regulation takes precedence.
