Date: May 12, 2004

BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.  20590

In the matter of:

INTRA-ALASKA CLASS						        DOCKET 14694

SERVICE MAIL RATES						        DOCKET 14695

MODIFICATION OF EQUALIZATION NOTICE OF WARBELOW’S AIR VENTURES, INC.

WARBELOW’S AIR VENTURES, INC. (WAV), an Alaskan carrier currently
authorized to transport United States Mail, hereby gives notice of its
intent to modify and terminate in part its existing equalization notice
between Fairbanks on the one hand and Shungnak, Kobuk and Ambler on the
other hand.

By Order 2004-2-12, the Department of Transportation established a new
line haul rate for Part 121 bush service, and that rate is now the
lowest line haul rate paid to bush carriers in the state of Alaska.  The
Rural Service Improvement Act (RSIA) requires that composite
equalizations shall be based on the mainline rate paid to the hub, plus
the lowest bush rate paid to bush carriers in the State of Alaska for
the distance traveled from the hub point to the destination point.
Because of this change, WAV is no longer able to economically provide
service on this route under the existing equalization.

WAV therefore

Terminates its equalization notice for priority mail tendered to its
direct flights between the points named above, effective 10 days from
receipt of this notice.

Continues it’s existing and long standing equalization notice
non-priority mail tendered to its direct flights between the points
named above for an indefinite period.  This notice will remain in effect
until terminated by written notice filed at least ten days in advance.

Whereas WAV gives this notice of equalization of its mail rates, WAV
requests equitable tender and full tender of 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,

Arthur Warbelow, President

Warbelow's Air Ventures, Inc.

