BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.  20590

In the matter of:

INTRA-ALASKA CLASS						        DOCKET 14694

SERVICE MAIL RATES						        DOCKET 14695

EQUALIZATION NOTICE OF CAPE SMYTHE AIR SERIVCE, INC.

Cape Smythe Air Service, Inc., an Alaskan carrier currently authorized
to transport United States Mail, hereby gives notice of its intent to
equalize its mail rates to the lowest authorized rates legally in effect
over all routes on its system, either directly or indirectly.

By Order 2004-2-12, the Department of Transportation established a new
linehaul rate for markets where Part 121 bush service is provided by
aircraft certificated by the manufacturer for 19 seats or more on one
flight a week or more.  The language of the Order sets the rate “for
markets where a carrier scheduling and operating at least one round trip
a week with Part 121 aircraft in passenger service qualifies for the
carriage of mail”.  This language establishes a single lawful rate for
each market, and appears to obviate the need for any sort of
equalization notice.   None-the-less, with an abundance of caution,
[carrier name] hereby gives notice of its equalization to the lowest
lawful rate in any market where it operates service.

Cape Smythe equalizes its rates to the lowest rate, or combination of
rates, applicable in the markets it serves directly or by connection at
an intermediate point.

Equalization under this notice is effective immediately, and is
effective for an indefinite period.  This notice will remain in effect
until terminated by written notice filed at least ten days in advance.

Whereas Cape Smythe gives this notice of equalization of its mail rates,
Cape Smythe requests equitable tender and full tender of bypass mail
pursuant to the provisions of the Rural Service Improvement Act and the
practices and procedures of the Department of Transportation and the
United States Postal Service.

Respectfully submitted,

Grant Thompson

Grant Thompson

President, Cape Smythe Air Service, Inc.

February 17, 2004

