BEFORE THE

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON D.C.

________________________________________

IN THE MATTER OF INTRA-ALASKA            )             Docket
OST-07-14694

BUSH CLASS SERVICE MAIL RATES             )

_______________________________________ )

RATE EQUALIZATION NOTICE 

of

Arctic Transportation Services, Inc.

Communication with respect to the document should be sent to:

Wilfred P. Ryan, President

Arctic Transportation Services, Inc.

5701 Silverado Way, Unit L

Anchorage, AK  99518

Arctic Transportation Services, Inc., (7S), an Alaskan incorporated 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:

	KOTZEBUE (OTZ), Alaska and NOORVIK (ORV), Alaska

	KOTZEBUE (OTZ), Alaska and SELAWIK (WLK), Alaska

With the lower levels paid to other carriers or combinations of other
carriers in these markets effective March 1, 2007.

1.	Order 90-10-34 provides that an air carrier may elect to establish a
reduced charge equal to the charges 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 Transportation Services,
Inc., (7S), gives this notice of its election to equalize its rates for
small aircraft in the Kotzebue, Alaska (OTZ) to Noorvik, Alaska (ORV)
and the Kotzebue, Alaska (OTZ) to Selawik, Alaska (WLK) on a total rate
per pound basis, the lower rate or combination of rates now in effect or
hereafter determined and paid to Frontier Flying Service for each
category of mail Frontier Flying Service transports in these markets to
any lower rate or combination of rates paid in the future to any other
carrier in these markets.

3.	Arctic Transportation Services, Inc., (7S), offer of equalization
results from the implementation of the Rural Service Improvement Act of
2002, and the assertion by the United States 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 FAR
Part 135 carrier equalized to the new FAR 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 end days in advance.

WHEREFORE, Arctic Transportation Services, Inc., (7S) gives this notice
of equalization of its mail rates and requests equitable tender of main
in these markets pursuant to the practices and procedures of the United
States Department of Transportation and the United States Postal
Service.

Respectfully Submitted,

Wilfred P. Ryan, President

Arctic Transportation Services

February 20, 2007

Service List

Postmaster General

c/o Assistant General Council-Transportation

United States Post Office

475 Le Enfant Plaza, S.W.

Washington, D.C. 20260-7130

Mr. Steven R. Deaton

Western District Network

4141 Postmark Drive

Anchorage, Alaska  99502-9781

Documentary Services Division (C-55)

DOT/OST Room PL 401

400 7th Street, S.W.

Washington, D.C. 20590-1801

Mr. Bob Hajdukovich

Frontier Flying Service, Inc.

5245 Airport Industrial Rd.

Fairbanks, Alaska 99704

Mr. Mike Hageland

Hageland Aviation

P. O. Box 220610

Anchorage, Alaska 99522

Mr. Al Haddadi

General Manager

Bering Air, Inc.

P. O. Box 1650

Nome, Alaska 99762

