Before the 

Department of Transportation

Washington, D.C.

In the matter of:                                                      
DOCKET OST -03-14694

INTRA ALASKA CLASS:                                    DOCKET OST
-03-14695

SERVICE MAIL RATES:

EQUALIZATION NOTICE OF

ARCTIC CIRCLE AIR SERVICE, INC.

Arctic Circle Air Service, Inc. (5F), an air 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 between Bethel, Alaska and Atmautluak, Chefornak, Chevak, Eek,
Goodnews Bay, Hooper Bay, Kongiganak, Kipnuk, Kwigillingok, Marshall,
Mekoryuk, Newtok, Nightmute, Toksook Bay, Platinum, Quinhagak, Scammon
Bay, Tununak, Tuntatuliak, between Fairbanks, Alaska and Allakaket,
Anaktuvuk Pass, Arctic Village, Bettles, Chalkyitsik, Eagle, Fort Yukon,
Galena, Hughes, Huslia, Kaltag, Nulato, Tanana, and Venetie, with the
lower levels paid to other carriers or combinations of other carriers in
these markets effective February 24, 2004.  

1. Order 90-10-34 provides that air carriers may elect to establish a
reduced 

    charge equal to the charge prescribed for mail transportation
actually

    being performed between the same origin and destination points by
any

    other certificated air carrier or combination of carriers,
regardless of

    routing.

2. Subject to the conditions below, Arctic Circle Air Service, Inc.
gives

    notice of its election to equalize its rates for small aircraft in
the Bethel to 

    Atmautluak, Chefornak, Chevak, Eek, Goodnews Bay, Hooper Bay, 

    Kongiganak, Kipnuk, Kwigillingok, Marshall, Mekoryuk, Newtok,

    Nightmute, Tooksook Bay, Platinum, Quinhagak, Scammon Bay,

    Tununak, Tuntatuliak markets and in the Fairbanks to Allakaket,

    Anaktuvuk Pass, Arctic Village, Bettles, Cahlkyitsik, Eagle, Fort
Yukon,

    Galena, Hughes, Huslia, Kaltag, Nulato, Tanana, Venetie markets to 

    match, on a total rate per pound basis, the lower rate or
combination of

    rates now in effect or hereafter determined and paid to ERA Aviation

    and Frontier Flying Service for each category of mail ERA Aviaiton

    and Frontier Flying Service transports in these markets to any lower

    rate or combination of rates paid in the future to any carrier in
these

    markets.

3. Arctic Circle Air Service, Inc. offer of equalization results from
the 

    implementation of the Rural Service Improvement Act of 2002, and

    the assertion by the Postal Service that air carriers operating
under

    FAR Part 135 would not be tendered mail in markets served by
carriers

    operating under FAR Part 121 unless the 135carrier equalized to the

    new Part 121 bush passenger mail rate.

4. 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.

WHEREFORE, Arctic Circle Air Service, Inc. gives notice of equalization
of its mail rates and request equitable tender of mail in these markets
pursuant to the practices and procedures of the Rural Service
Improvement Act of 2002 (RSIA), the Department of Transportation and the
United States

Postal Service.

Respectfully Submitted,

Don Singsaas

Director of Operations

February 24, 2004

        

