28_August_2019_Final_FY20_Uniform_Rates_&_Rules.pdf

28 August 19

MEMORANDUM FOR ALL CARRIERS

FROM: USTRANSCOM/TCAQ-C

508 Scott Drive Scott AFB IL 62225-5357

SUBJECT: Notice of Final Fiscal Year 2020 (FY20) Uniform Rates and Rules for International

Service – Solicitation Number HTC711-18-R-CC04

1. The Final FY20 Rates are based on fuel pegged at $2.52 per gallon for passenger and $2.70 per gallon for cargo. The final rates for the various classes of service are as follows. All passenger rates are expressed per seat mile whereas all cargo rates are per ton mile.

Effective Rate Linehaul Rate Stop Charge Large Class Passenger $0.13160 Medium Class Passenger $0.15395 Small Class Passenger $0.16851 $2,000 Large Class Cargo $0.40811 Medium Class Cargo $0.46713

2. These rates are not effective until 1 October 2019, the start of the second year of the Contract Base Period.

3. In accordance with our Memorandum of Understanding, please direct any questions or concerns to me at michael.w.muskopf.civ@mail.mil or 618-220-7114.

//SIGNED//

Michael W. Muskopf Contracting Officer, Charter Airlift Branch

Attachment:

28 August 2019 Final FY20 Uniform Rates and Rules for International Service

UNITED STATES TRANSPORTATION COMMAND

508 SCOTT DR

SCOTT AIR FORCE BASE, IL 62225-5357

file://USTCVFS42/TCAQ/Government%20Only%20Access/TCAQ-C/5.%20Admin/6.%20CP/Rate/FY20%20Rate%20Folder/Master/Uniform%20Rates%20and%20Rules%20-%20Final/michael.w.muskopf.civ@mail.mil

Prepared By: United States Transportation Command, Command Acquisition, 508 Scott Drive, Scott AFB IL 62225-5357

UNITED STATES

TRANSPORTATION COMMAND

FINAL

UNIFORM RATES AND RULES

FOR

INTERNATIONAL SERVICE

FISCAL YEAR 2020

INTRODUCTION

The Final FY20 USTRANSCOM Uniform Rates and Rules (hereafter referred to as “Rates”) have been developed using rate-making procedures in compliance with the Federal

Acquisition Regulation (FAR), Memorandum of Understanding (MOU) for FY18 through

FY22, and methodologies previously established by the Civil Aeronautics Board (CAB).

Rate Overview

The final FY20 rates updated general escalation and FICA escalation factors. The general escalation decreased from 2.84% applied in the proposed rates and rules to 2.53% applied in the final rates and rules. Further, the FICA escalation increased from 1.62% to 3.50%. When considering the rates excluding fuel costs, the large, medium and small passenger class as well as large and medium cargo class increased by approximately 3%, 3%, 3%, 1.5%, and 4% respectively compared to the final FY19 rates.

Fuel

The TCAQ pegged price of fuel is higher than was published with the FY19 Uniform Rates and

Rules. The elevated pegged price of fuel is a result of increased GII projections for the Jet Fuels producer price index during the performance period. To develop the proposed pegged price of fuel for each category, TCAQ uses a projection of commercial fuel cost and the DLA fuel costs for the performance period and weights them based on the historical proportions used for each aircraft category. The pegged fuel price for passenger service is $2.52 per gallon and $2.70 per gallon for cargo service. The pegged price includes into-plane fees and taxes.

Ferry

The ferry rate is a reduced rate based on savings of flying an empty aircraft. An empty aircraft does not incur costs such as food, full cabin crew salary, and passenger liability insurance. The aircraft in empty service is more fuel-efficient and flies a more direct route.

An empty aircraft in non-revenue service also incurs lower cost in “aircraft and traffic servicing.” Non-revenue enroute stops do not incur cost related to traffic handling personnel, gate requirements, security, and in some cases lower landing fees. On the basis of this review, the ferry rate is 90% of the effective rate for passenger and 89% of the effective rate for cargo.i See Appendix A for ferry rates.

Stop Charges

Stop charges were initially introduced as an attempt to better align carrier’s revenues with the cost of operations where certain DOD missions had significantly more revenue stops and the stage length among carriers reflected significantly different averages. At that time, there were fewer rate classes, narrowbody passenger, widebody passenger and cargo. Carriers contended missions such as the Mediterranean channel produced a short stage length, low speed and significantly higher operating costs than the typical long range DoD mission. Carriers operating the inefficient routes with short stage lengths and low utilization experienced higher operating costs per mile, but were receiving the same compensation under the uniform rate.

Stop charges were introduced in an effort to curve the revenues to accommodate for those inefficient routes with short stage lengths.

By FY10, USTRANSCOM had increased the number of rate classes to five (large, medium and small passenger plus large and medium cargo). Increasing the number of rate classes effectively eliminated the need for stop charges in all classes other than small passenger and medium cargo. Unlike the larger rate classes, the small passenger and medium cargo classes still contained a significant amount of inefficient routes with shorter stage lengths and lower utilization than other routes in the class. The linehaul rate is a mathematical equation derived from the effective rate, using weight averaged stage lengths, average tons/seats per mission and the stop charge rate.ii Paying the effective rate versus, a linehaul rate plus a stop charge, should be revenue neutral for all carriers provided the following conditions are met: one, the average stage length for all carriers within a rate class remains similar to the weight averaged stage length used in the class and two, no extreme differences exist between the stage lengths of carriers within the same class. Each rate review, USTRANSCOM reviews base year data to determine relevancy of a stop charge in the individual rate classes.

This year’s analysis supports stop charges for the small passenger class only.iii In order to increase payloads, USTRANSCOM buyers continue to routinely combine missions whenever possible. This practice does decrease the average stage length for some missions in all classes below the weight averaged stage length used in the linehaul calculation; however, the number of these lower stage length missions in the larger rate classes are too small to create a significant variation between the average stage length experienced by each carrier in the class and the weight averaged stage length. Consistent with previous rate reviews, however, requirements in the small passenger class continue to differ significantly in volume and areas of operation causing a significant variation in average stage length between carriers.

Cost Escalation

The cost escalation factor is 2.53% for FY20. This escalation factor has been applied to the

FY19 rates as an application of the resulting Biennial Cost Escalation. This was calculated using the GII Cost Index (NAICS 481112) at 70 percent weighting and the A4A index at 30 percent weighting. This is based on the calculations agreed upon in the FY18-22 MOU.

Appendix J provides detailed information on this calculation.

Eurocontrol

The Euro control surcharges have been calculated as follows: 1.9 % for passenger and 2.8 % for cargo missions. The mission samples and analysis for euro control is provided at

Appendix H.

Incremental Passenger Movement

In FY02, USTRANSCOM developed an incremental passenger service rate for periodical requirements requiring the use of extra seats above the standard ACL. The rate applies when the number of additional passengers above the standard ACL is identified in advance for an exercise, SAAM, or contingency. This is not authorized for additional passengers on channel missions. TCAQ updated all factors incorporated into this rate; and the FY20 Incremental

Passenger Rate is $205iv. See Appendix A for details.

Appendices

Appendix A provides procedures and rules for the application of USTRANSCOM Rates.

Appendix B provides the weighting and participation of carriers comprising the large, medium, and small class of passenger aircraft, the large and medium class of cargo aircraft, and combi aircraft rates, respectively. Appendices C through G illustrate individual treatment of each carrier’s cost by aircraft type. Appendices H and I provide the Eurocontrol Surcharge and Cost Escalation Factor, respectively. Finally, Appendix J demonstrates the FICA calculation.

i The analysis of the Passenger ferry rate was performed using the Final FY20 Large Class passenger rate of $0.13156 (effective rate) per seat mile. The passenger ferry rate and paid ferry return rate will be 90% of the effective rate. The analysis of the Cargo ferry rate was performed using the FY19 Large Class cargo rate of $0.40811 (effective rate) per ton mile. The cargo ferry rate and paid ferry return rate will be 89% of the effective rate.

Large Class Passenger Wgt'd Percentage Cost Ferry Cost Category Cost Allowed Allowed Rate % Crew 1.5704 100% 1.5704 Fuel, Oil & Supplies 3.5799 88% 3.1325 Maintenance 1.7691 100% 1.7691 Insurance 0.0747 100% 0.0747 Rent 0.0236 100% 0.0236 Depreciation 0.9735 100% 0.9735 Preop 0.0000 100% 0.0000 Capital Gains/Losses 0.0000 0% 0.0000 Grd Property 0.0259 100% 0.0259 Aircraft & Traffic Service 0.9219 85% 0.7836 Passenger Service 1.9519 65% 1.2590 G&A 0.5139 100% 0.5139 Profit 1.7508 100% 1.7508 Total 13.1557 11.8770 90%

Medium Class Passenger

Cost Category Cost Allowed Allowed Rate % Crew 2.845 100% 2.8453 Fuel, Oil & Supplies 3.661 88% 3.2030 Maintenance 1.906 100% 1.9056 Insurance 0.094 100% 0.0938 Rent 0.130 100% 0.1300 Depreciation 0.639 100% 0.6391 Preop 0.000 100% 0.0000 Capital Gains/Losses 0.000 0% 0.0000 Grd Property 0.036 100% 0.0358 Aircraft & Traffic Service 1.451 85% 1.2260 Passenger Service 2.292 65% 1.4780 G&A 0.683 100% 0.6828 Profit 1.655 100% 1.6547 Total 15.3902 13.8942 90%

Large Class Cargo

Cost Category Cost Allowed Allowed Rate %

Crew 5.0945 100% 5.0945 Fuel, Oil & Supplies 16.8348 75% 12.6261 Maintenance 5.7343 100% 5.7343 Insurance 0.0832 100% 0.0832 Rent 2.6281 100% 2.6281 Depreciation 1.2210 100% 1.2210 Preop 0.0127 100% 0.0127 Cap Gains/Losses 0.0027 0% 0.0000 Grd Property 0.3595 100% 0.3595 Aircraft & Traffic Service 2.8725 85% 2.4416 G&A 1.2442 100% 1.2442 Profit 4.7235 100% 4.7235 Total 40.8108 36.1686 89% ii Linehaul rate = Effective Rate - (Stop charge/(Average Stage Length * ACL))

The following example is for informational purposes only.

$0.16851 = $0.1781 - (($2,000 / (1,440 * 149)) iii Average Stage Length calculation

Average Stage Length Large Class Pax Weighted Avg 2941

GTI B747-400 2706

OAE B777 3238

Medium Class Pax Weighted Avg 2404

GTI B767-300 2335

OAE B767-200/300 2469

Small Class Pax Weighted Avg 1437

BSK B737-700/800 1408

SCX B737 1515

Large Class Cargo Weighted Avg 3371

GTI B747-400 3822

FDX MD11 2295

CKS B747-400 2984

Medium Class Cargo Weighted Avg 2283

ABX B767-300 3524

ATI B767-300

UPS B767-300

iv Incremental Passenger Rate calculation

One-Way Round-Trip Total

Live Pay Miles 1,091,509 3,464,273 4,555,782.00 FY20 Final Passenger Seat Mile Rate 0.22934 0.13156

100,181,216 182,392,932 Total Dollars 282,574,148 Total Trips 434 Total Passengers 173,685 Avg Passenger per Trip 400 Avg Price Per Trip 651,092.51 Avg Seat Miles Per Trip 4,200,927.98 Avg Miles Per Trip 10,497

Additional passenger service cost per trip $205

INDEX OF APPENDICES

No.

Appendix Title Pages

A USTRANSCOM Uniform Negotiated Rates and Rules 5

B Computation of Uniform Rates: 5 Large Class Passenger Service Medium Class Passenger Service Small Class Passenger Service Large Class Cargo Service Medium Class Cargo Service

C Costs Per Seat Mile by Carrier and Aircraft Type In Large Class Charter Passenger Service 2

D Costs Per Seat Mile by Carrier and Aircraft Type in Medium Class Charter Passenger Service 2

E Costs Per Seat Mile by Carrier and Aircraft Type in Small Class Charter Passenger Service 2

F Costs Per Ton Mile by Carrier and Aircraft Type in Large Class Cargo Service 3

G Costs Per Ton Mile by Carrier and Aircraft Type in Medium Class Cargo Service 3

H Eurocontrol Surcharge 5

I Cost Escalation Factor 2

J FICA Escalation 1

APPENDIX A

SCHEDULE OF UNIFORM NEGOTIATED RATES AND RULES (FINAL)

FISCAL YEAR 2020

A. RATES. Air transportation services shall be paid for at the following rates. In addition, carriers' monthly

USTRANSCOM revenues based on the uniform rate will be adjusted for the variance in fuel price as provided in paragraph C of this Appendix A.

(1) CHARTER PASSENGER SERVICE PER SEAT MILE

Large Live Effective Rate $0.13160 Ferry Rate (Base - Effective Rate) 90% $0.11844 Incremental Passenger $205 Fuel Pegged Rate $2.52

Medium Live Effective Rate $0.15395 Ferry Rate (Base - Effective Rate) 90% $0.13856 Incremental Passenger $205 Fuel Pegged Rate $2.52

Small Live Line Haul Rate $0.16851 Ferry Rate (Base - Effective Rate) 90% $0.16003 Stop Charge (Per Directed Landing) $2,000 Incremental Passenger $205 Fuel Pegged Rate $2.52

(2) CHARTER CARGO SERVICE PER TON MILE

Large Live Effective Rate $0.40811 Ferry Rate (Base - Effective Rate) 89% $0.36322 Fuel Pegged Rate $2.70

Medium Live Effective Rate: $0.46713 Ferry Rate (Base - Effective Rate) 89% $0.41575 Fuel Pegged Rate $2.70

(3) EUROCONTROL. Eurocontrol applies where a carrier is required to transit countries with an ICAO prefix of "E" or "L" (i.e., EDAF, LIRA), with the exception of EGYP in the Falkland Islands. Eurocontrol will be paid on live miles only. On one way passenger missions when Eurocontrol is applicable to both the live and empty segment, Eurocontrol will be paid on the live miles plus an additional 85 percent of those miles (i.e., 6,000 mile one way passenger mission would be paid 1.9 percent on 6,000 miles + 5,100 miles). On one way cargo missions when Eurocontrol is applicable to both the live and empty segment, Eurocontrol will be paid on the live miles plus an additional 30 percent of those miles (i.e., 6,000 mile one way cargo mission would be paid 2.8 percent on 6,000 miles + 1,800 miles). Combi Carriers will be paid the applicable rate plus a surcharge of 1.9 percent.

(4) FERRY. Ferry will be paid based on standard ACL or lesser amount. However, no ferry miles will be paid if actual flown ferry miles (combines total of ferry/backhaul) are less than 30 miles.

(a) Positioning and depositioning ferry: Positioning and depositioning ferry shall be included with the offer and negotiated at time of award. Paid depositioning mileage will not exceed the mileage required to return the aircraft to its originating station.

(b) “Front/backhaul ferry” on one-way passenger and cargo missions will be applied to empty backhaul miles in addition to, and in the same manner as, positioning/depositioning ferry identified in subparagraph (a) above.

(5) INCREMENTAL PASSENGER MOVEMENT. The incremental passenger rate applies when the number of additional passengers above the standard ACL is identified for an exercise, SAAM or contingency. The incremental passenger movement rate is $205 for each additional passenger over the standard ACL. In cases when the per seat cost is lower than USTRANSCOM’s incremental passenger rate, USTRANSCOM will pay the lesser amount.

(6) TRIP CANCELLATION. A cancellation charge will be paid on missions canceled with notification given within the time frames noted below (see Performance Work Statement (PWS), Trip Cancellation). Times are all prior to scheduled departure. Reference to days means a continuous 24-hour period. All “days” refers to “calendar days.” The cancellation charge will be applied to the trip price for the route segment only (ferry, stop charges, Eurocontrol surcharge or any other additional charges will not be included). Cancellation of one way passenger missions will be calculated on a trip price made up of the live miles plus 85 percent of those miles at the live mile rate (i.e., 6,000 mile one way mission would be paid the applicable cancellation percentage on 6,000 miles + 5,100 miles times the live mile rate). Cancellation of one way cargo missions will be calculated on a trip price made up of the live miles plus 30 percent of those miles at the live mile rate (i.e., 6,000 mile one way mission would be paid the applicable cancellation percentage on 6,000 miles + 1800 miles times the live mile rate). The charges are as follows:

Time Frame Service Type Standard

Cancellation

Seven days or less

Passenger:

Cargo:

35.99% 29.10%

8 to 14 days

Passenger:

Cargo:

21.37% 23.47%

15 to 30 days

Passenger:

Cargo:

18.01% 19.62%

31 to 45 days Passenger: 10.87% 31 to 75 days Cargo: 9.11% Beyond 45 days Passenger: 0% Beyond 75 days Cargo 0% Missions awarded less than 14 days prior to operating date and subsequently cancelled

Passenger:

Cargo:

21.37% 23.47%

(7) DEMURRAGE. Demurrage, when approved by the CO, will be paid on completed cargo missions when departure is delayed over 3 hours beyond scheduled block time and the delay is Government controllable. Approval of requests will be based on the Government’s validation of the actual mission details submitted by the Contractor and circumstances as documented in GDSS and COR reports. Demurrage is calculated by subtracting three (3) hours from the total number of hours (rounded to the nearest hour) the aircraft is delayed. These hours are then multiplied by the price set forth in the Rates and Rules based on aircraft type. Payment of delays of fractions of an hour will be calculated using normal rounding procedures, i.e., 29 minutes or less will be dropped, 30 minutes or more will be rounded to the next whole hour. Demurrage charges are as follows:

Aircraft Type ACL Demurrage B747-100/200 90 $2,307

B747-400/400ER 100 $2,563

MD11 86 $2,204

B777F 88 $2,204

A300-600ER 51 $2,255

A300-400F 50 $1,898 B767-300F 61 $1,860 B767-200F 48 $1,786

B. AIRCRAFT STANDARDS. The rate set forth in paragraph A shall be applied to the following standard aircraft loads. When an aircraft is offered for the fixed buy missions with fewer seats than the standard ACL, we will only pay for the actual number of seats.

PASSENGER AIRCRAFT CARGO AIRCRAFT

Aircraft Type Maximum Standard

Payload Aircraft Type Maximum Standard

Payload

Small Aircraft: Small Aircraft:

A319 135 L100 23

MD80 140

B737-400/700 140 B737-800 150 A320 150 B737-900 165 A321 170

Medium Aircraft: Medium Aircraft:

B757-200/200ER 190 B767-200F 48

B757-300 200 A300-B4(F) 50

B767-200/200ER 200 A300-600ER 51

A310 200 B767-300F 61 B767-200 Charter Config. 207 A300 210

B767-300/300ER 240

B767-400ER 260

A330-200 280

Large Aircraft: Large Aircraft:

A330-300 330 MD11 86

B777-200ER 330 B747-400 100

A340 345 B777F 88

MD11/MD11ER 360 B747-100/200/300 90

B777 Charter Config. 380 B747 400 B747 Charter Config. 435

C. FUEL ADJUSTMENTS.

(1) The carrier shall be compensated for variance in fuel prices incurred on USTRANSCOM contracted full planeload missions bought at the USTRANSCOM rate. COMPENSATION WILL NOT BE MADE TO THE PRIME OR SUBSERVICING CARRIER FOR SUBSTITUE SERVICE OR SUBCONTRACTED MILES. Adjustments will be made upward or downward if the price of fuel varies by more than one cent per gallon from the pegged price (as stated in the USTRANSCOM Uniform Negotiated Rates and Rules) used in establishing the USTRANSCOM rates.

(2) The solicitation/contract addresses the current fuel adjustment procedures (see PWS, Appendix 3B Report Procedures).

D. COMPUTATION OF PASSENGER SEAT-MILES AND CARGO TON-MILES FOR PAY PURPOSES.

Long Range Service: Computation of miles and stop charges shall be computed as follows:

(1) If a live route segment is less than 4,000 miles, mileage shall be computed nonstop from origin to destination of that segment.

(2) When a live route segment is 4,000 miles or more the live mileage shall be computed via an intermediate point(s) which yields the shortest mileage. This does not apply to ferry segments.

(3) The rate classes using a linehaul rate will receive a stop charge for enroute live and operational stops only.

Examples: KBWI*CYQX–EDDF–LTAG–EDDF*CYQX–KBWI-KCHS = 7 Paid Stops1/

KCHS#MMCZ-MPTO=1 Paid Stop2/

KWRI+KCOF-TAPA-FHAW-TAPA-KCOF+KWRI= 4 Paid Stops3/

1/ * This symbol used in the above example indicates operational stops.

2/ # This symbol used in the above example indicates special miles for circumnavigating countries which will not grant over flight clearances—stop charges do not apply.

3/ + This symbol used in the above example indicates ferry leg for which stop charges do not apply.

4/ / This symbol used to indicate Backhaul Mileage.

5/ - This symbol used in the above example to indicate live stops.

E. DEFINITIONS.

“Charter Service” means USTRANSCOM contracted airlift for the transportation of passengers in full planeload lots on aircraft chartered from the commercial air industry and paid at the USTRANSCOM negotiated rate.

These international charter flights are scheduled by AMC to and from designated commercial airports and/or AMC gateways and/or military aerial ports. Standard cancellation rates (paragraph 6) to not apply.

“Charter rate” means a commercial price that is in fact available to the general public for equivalent services.

Missions bought at a commercial charter price are all inclusive of taxes, Eurocontrol and any other ancillary cost and are not subject to adjustments for fuel prices.

“Stop charge” The stop charge is paid by the government in the case of government directed landings (enroute live and operational stops) identified by the contract or delivery order to support USTRANSCOM contracted missions. Operational stops allowed in accordance with Appendix A, Paragraph D (3) are considered directed stops.

Landings made by the contractor of his own discretion for maintenance, aborted flights, fuel stops, crew changes, or emergency landings are not considered "directed landings," and therefore receive no stop charge.

“Pay miles” means the great circle statute miles used to compute the price of the mission in accordance with COINS. COINS calculates distances based on longitude and latitude for geographical locations listed in the DoD Flight Information Publication (FLIP) and identified by location indicators assigned by the International Civil Aviation Organization (ICAO) and published in the Location Indicator, Doc 7910/67.

“Linehaul Rate” The Linehaul rate = Effective Rate - (Stop charge/(Average Stage Length * ACL))

APPENDIX B

USTRANSCOM FY17 FY18 Total Adjusted Passenger Passenger Passenger

Aircraft Rate Per Revenues Revenues Revenues Weighted Carrier Type Pax Mile [000] [000] [000] Wgt % Rate

ATLAS AIR, INC. B747-400 0.11745$ 122,195$ 99,600$ $221,794 50.49% $0.05930

OMNI AIR INTERNATIONAL INC B777 0.14602$ 103,309$ 114,194$ $217,504 49.51% $0.07230

$439,298 1.0000

RATE -- WEIGHTED BY REVENUES $0.13160

Exclusive of Fuel $0.09580

LARGE CLASS AIRCRAFT

PASSENGER SERVICE

USTRANSCOM UNIFORM RATE

COMPUTATION

USTRANSCOM FY17 FY18 Total Adjusted Passenger Passenger Passenger

Aircraft Rate Per Revenues Revenues Revenues Weighted Carrier Type Pax Mile [000] [000] [000] Wgt % Rate

ATLAS AIR, INC. B767-300 0.15702$ 155,367$ 128,377$ $283,744 52.18% $0.08192

OMNI AIR INTERNATIONAL INC B767-200/300 0.15060$ 139,004$ 121,072$ $260,076 47.82% $0.07202

$543,820 1.0000

RATE -- WEIGHTED BY REVENUES $0.15395

Exclusive of Fuel $0.11734

MEDIUM CLASS AIRCRAFT

COMPUTATION

USTRANSCOM UNIFORM RATE

PASSENGER SERVICE

USTRANSCOM FY17 FY18 Total Adjusted Passenger Passenger Passenger

Aircraft Rate Per Revenues Revenues Revenues Weighted Carrier Type Pax Mile [000] [000] [000] Wgt % Rate

MIAMI AIR INTERNATIONAL INC B737-400/800 0.18051$ 21,348$ 20,169$ $41,517 69.85% $0.12609 MN AIRLINES, LLC DBA SUN COUNTRY AIRLINES B737-800 0.17158$ 10,098$ 7,819$ $17,917 30.15% $0.05172

$59,434 1.0000

RATE -- WEIGHTED BY REVENUES $0.17781

Exclusive of Fuel $0.14519

Average Average Rate Per Linehaul Rate Effective Rate Stage Seats Per Directed Per Paid Per Seat Mile Length Mission Landing Seat Mile

$0.17781 1,440 149 $2,000 $0.16851

Note: The weighted average stage length and weighted average seats per mission are based on USTRANSCOM data from Jul 16 to Jun 17.

COMPUTATION

USTRANSCOM UNIFORM RATE

PASSENGER SERVICE

SMALL CLASS AIRCRAFT

USTRANSCOM FY17 FY18 Total Adjusted Cargo Cargo Cargo

Aircraft Rate Per Revenues Revenues Revenues Weighted Carrier Type Ton Mile [000] [000] [000] Wgt % Rate

ATLAS AIR, INC. B747-400 0.40120$ 195,239$ 216,440$ $411,679 54.51% $0.21870

KALITTA AIR, LLC B747-400 0.38428$ 152,919$ 140,559$ $293,478 38.86% $0.14934

FEDERAL EXPRESS CORPORATION MD11 0.60470$ 27,155$ 22,886$ $50,041 6.63% $0.04007

$755,198 1.0000

RATE -- WEIGHTED BY REVENUES $0.40811

Exclusive of Fuel $0.23976

COMPUTATION

USTRANSCOM UNIFORM RATE

CARGO SERVICE

LARGE CLASS AIRCRAFT

USTRANSCOM FY17 FY18 Total Adjusted Cargo Cargo Cargo

Aircraft Rate Per Revenues Revenues Revenues Weighted Carrier Type Ton Mile [000] [000] [000] Wgt % Rate

UPS B767-300F 0.44887$ $5,160 $13,046 $18,205 33.33% $0.14962

ABX B767-300F 0.45635$ $2,629 $2,629 33.33% $0.15212

ATI B767-300F 0.49623$ $5,653 $5,653 33.33% $0.16541

1.0000

RATE -- WEIGHTED BY REVENUES $0.46715

Exclusive of Fuel $0.33264

COMPUTATION

USTRANSCOM UNIFORM RATE

CARGO SERVICE

MEDIUM CLASS AIRCRAFT

APPENDIX C

ATLAS AIRLINES (GTI) Aircraft Type B747-400

LARGE CLASS AIRCRAFT Passenger Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 2,360 2,360

AVERAGE DAILY AIRCRAFT UTILIZATION 6.9 6.9

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $4.4547 $4.4679 Fuel, Oil, & Aircraft Supplies 16.4631 16.8878 Flight Equipment Maintenance 4.7839 4.7844

Total Direct Variable 25.7016 26.1401

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.3423 0.3426 Aircraft Rentals & Miscellaneous 0.0954 0.0952 Flight Equipment Depreciation & Obsolescence 1.5322 1.5322 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 1.9699 1.9700

Indirect:

Maintenance & Depreciation-General Ground Property 0.0856 0.0856 Aircraft & Traffic Servicing 4.1401 4.1342 Passenger Service 9.7716 9.7681 General & Administrative 2.0870 2.0874

Total Indirect 16.0843 16.0754

TOTAL OPERATING COST 43.7558 44.1856

Profit TBD 5.1430

TOTAL COST $43.7558 $49.3286

Allowable Cabin Load 420 420

RATE PER SEAT MILE $0.10418 $0.11745

APPENDIX C

OMNI AIR INTERNATIONAL (OAE) Aircraft Type B777-200CH

LARGE CLASS AIRCRAFT Passenger Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 2,283 2,283

AVERAGE DAILY AIRCRAFT UTILIZATION 7.3 7.3

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $7.7510 $7.9440 Fuel, Oil, & Aircraft Supplies 11.5979 11.8951 Flight Equipment Maintenance 9.1633 9.1635

Total Direct Variable 28.5122 29.0026

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.2655 0.2570 Aircraft Rentals & Miscellaneous 0.0932 0.0931 Flight Equipment Depreciation & Obsolescence 6.0581 6.0581 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 6.4168 6.4082

Indirect:

Maintenance & Depreciation-General Ground Property 0.1200 0.1200 Aircraft & Traffic Servicing 3.2660 3.2614 Passenger Service 5.9648 5.9817 General & Administrative 2.0079 2.0200

Total Indirect 11.3588 11.3831

TOTAL OPERATING COST 46.2878 46.7939

Profit TBD 8.6954

TOTAL COST $46.2878 $55.4893

Allowable Cabin Load 380 380

RATE PER SEAT MILE $0.12181 $0.14602

APPENDIX D

ATLAS AIR, INC (GTI) Aircraft Type B767-300

MEDIUM CLASS AIRCRAFT Passenger Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 5,007 5,007

AVERAGE DAILY AIRCRAFT UTILIZATION 6.7 6.7

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $7.2080 $7.2262 Fuel, Oil, & Aircraft Supplies 8.2653 8.4785 Flight Equipment Maintenance 3.7319 3.7316

Total Direct Variable 19.2052 19.4363

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.1915 0.1917 Aircraft Rentals & Miscellaneous 0.1473 0.1471 Flight Equipment Depreciation & Obsolescence 1.6275 1.6275 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 1.9664 1.9664

Indirect:

Maintenance & Depreciation-General Ground Property 0.0977 0.0977 Aircraft & Traffic Servicing 3.6759 3.6707 Passenger Service 6.0553 6.0531 General & Administrative 1.8825 1.8833

Total Indirect 11.7113 11.7048

TOTAL OPERATING COST 32.8829 33.1075

Profit TBD 4.5762

TOTAL COST $32.8829 $37.6837

Allowable Cabin Load 240 240

RATE PER SEAT MILE $0.13701 $0.15702

APPENDIX D

OMNI AIR INTERNATIONAL (OAE) Aircraft Type B767-200/300

MEDIUM CLASS AIRCRAFT Passenger Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 4,860 4,860

AVERAGE DAILY AIRCRAFT UTILIZATION 6.9 6.9

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $6.0522 $6.2019 Fuel, Oil, & Aircraft Supplies 8.6096 8.8300 Flight Equipment Maintenance 5.3156 5.3171

Total Direct Variable 19.9774 20.3490

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.2618 0.2534 Aircraft Rentals & Miscellaneous 0.4764 0.4764 Flight Equipment Depreciation & Obsolescence 1.3860 1.3860 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 2.1242 2.1158

Indirect:

Maintenance & Depreciation-General Ground Property 0.0710 0.0710 Aircraft & Traffic Servicing 3.1769 3.1724 Passenger Service 4.7388 4.7491 General & Administrative 1.3203 1.3294

Total Indirect 9.3069 9.3218

TOTAL OPERATING COST 31.4085 31.7867

Profit TBD 3.2082

TOTAL COST $31.4085 $34.9949

Allowable Cabin Load 232 232

RATE PER SEAT MILE $0.13538 $0.15060

APPENDIX E

MIAMI AIR INTERNATIONAL, INC (BSK) Aircraft Type B737-400/800

SMALL CLASS AIRCRAFT Passenger Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 925 925

AVERAGE DAILY AIRCRAFT UTILIZATION 5.3 5.3

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $4.5723 $4.6419 Fuel, Oil, & Aircraft Supplies 4.8539 4.9791 Flight Equipment Maintenance 5.2557 5.2501

Total Direct Variable 14.6819 14.8712

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.2660 0.2662 Aircraft Rentals & Miscellaneous 3.4864 3.4861 Flight Equipment Depreciation & Obsolescence 0.1454 0.1454 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 3.8978 3.8977

Indirect:

Maintenance & Depreciation-General Ground Property 0.0587 0.0586 Aircraft & Traffic Servicing 2.6502 2.6464 Passenger Service 2.2028 2.2059 General & Administrative 0.8816 0.8845

Total Indirect 5.7932 5.7954

TOTAL OPERATING COST 24.3729 24.5644

Profit TBD 2.3310

TOTAL COST $24.3729 $26.8954

Allowable Cabin Load 150 149

RATE PER SEAT MILE $0.16249 $0.18051

APPENDIX E

SUN COUNTRY AIRLINES (SCX) Aircraft Type B737-800

SMALL CLASS AIRCRAFT Passenger Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 483 483

AVERAGE DAILY AIRCRAFT UTILIZATION 9.2 9.2

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $4.4861 $4.4845 Fuel, Oil, & Aircraft Supplies 4.5034 4.6191 Flight Equipment Maintenance 2.0508 2.0485

Total Direct Variable 11.0403 11.1521

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.0377 0.0378 Aircraft Rentals & Miscellaneous 2.0547 2.0546 Flight Equipment Depreciation & Obsolescence 0.0874 0.0874 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 2.1798 2.1798

Indirect:

Maintenance & Depreciation-General Ground Property 0.3021 0.3020 Aircraft & Traffic Servicing 3.9943 3.9886 Passenger Service 4.0290 4.0245 General & Administrative 1.8731 1.8715

Total Indirect 10.1984 10.1867

TOTAL OPERATING COST 23.4186 23.5186

Profit TBD 2.2179

TOTAL COST $23.4186 $25.7365

Allowable Cabin Load 150 150

RATE PER SEAT MILE $0.15612 $0.17158

APPENDIX F

ATLAS AIRLINES (GTI) Aircraft Type B747-400

LARGE CLASS AIRCRAFT Cargo Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 5,545 5,545

AVERAGE DAILY AIRCRAFT UTILIZATION 9.1 9.1

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $4.7171 $4.7309 Fuel, Oil, & Aircraft Supplies 15.7718 16.5320 Flight Equipment Maintenance 4.8174 4.8169

Total Direct Variable 25.3062 26.0798

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.0890 0.0891 Aircraft Rentals & Miscellaneous 3.6781 3.6780 Flight Equipment Depreciation & Obsolescence 1.1281 1.1281 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 4.8952 4.8951

Indirect:

Maintenance & Depreciation-General Ground Property 0.0627 0.0627 Aircraft & Traffic Servicing 2.7661 2.7621 General & Administrative 1.4290 1.4298

Total Indirect 4.2577 4.2546

TOTAL OPERATING COST 34.4592 35.2295

Profit TBD 4.8902

TOTAL COST $34.4592 $40.1197

Allowable Cabin Load 100 100

RATE PER TON MILE $0.34459 $0.40120

KALITTA AIR (CKS) Aircraft Type B747-400

LARGE CLASS AIRCRAFT Cargo Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 3,908 3,908

AVERAGE DAILY AIRCRAFT UTILIZATION 8.4 8.4

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $5.1675 $5.2955 Fuel, Oil, & Aircraft Supplies 16.5324 17.3293 Flight Equipment Maintenance 5.5410 5.5362

Total Direct Variable 27.2408 28.1610

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.0780 0.0778 Aircraft Rentals & Miscellaneous 1.1672 1.1672 Flight Equipment Depreciation & Obsolescence 1.2157 1.2157 Amortization of Preoperating Expense 0.0326 0.0326 Capital Gains & Losses 0.0069 0.0069

Total Direct Fixed 2.5004 2.5003

Indirect:

Maintenance & Depreciation-General Ground Property 0.3176 0.3174 Aircraft & Traffic Servicing 2.9036 2.8994 General & Administrative 0.4600 0.4634

Total Indirect 3.6812 3.6802

TOTAL OPERATING COST 33.4224 34.3414

Profit TBD 4.0869

TOTAL COST $33.4224 $38.4283

Allowable Cabin Load 100 100

RATE PER TON MILE $0.33422 $0.38428

FEDERAL EXPRESS CORPORATION (FDX) Aircraft Type MD11

LARGE CLASS AIRCRAFT Cargo Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 448 448

AVERAGE DAILY AIRCRAFT UTILIZATION 6.6 6.6

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $5.7114 $5.9399 Fuel, Oil, & Aircraft Supplies 13.4785 14.1256 Flight Equipment Maintenance 12.5430 12.4210

Total Direct Variable 31.7329 32.4864

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.0564 0.0569 Aircraft Rentals & Miscellaneous 2.2009 2.1999 Flight Equipment Depreciation & Obsolescence 1.7345 1.7345 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 3.9919 3.9914

Indirect:

Maintenance & Depreciation-General Ground Property 2.6225 2.6221 Aircraft & Traffic Servicing 3.1196 3.1152 General & Administrative 3.6818 3.6951

Total Indirect 9.4239 9.4324

TOTAL OPERATING COST 45.1486 45.9101

Profit TBD 6.0942

TOTAL COST $45.1486 $52.0043

Allowable Cabin Load 86 86

RATE PER TON MILE $0.52498 $0.60470

APPENDIX G

UNITED PARCEL SERVICE (UPS) Aircraft Type B767-300

MEDIUM CLASS AIRCRAFT Cargo Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 116 116

AVERAGE DAILY AIRCRAFT UTILIZATION 9.3 9.3

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $7.2267 $7.3079 Fuel, Oil, & Aircraft Supplies 6.1579 6.4474 Flight Equipment Maintenance 6.1039 6.0924

Total Direct Variable 19.4884 19.8477

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.1033 0.1034 Aircraft Rentals & Miscellaneous 0.7275 0.7274 Flight Equipment Depreciation & Obsolescence 0.6664 0.6664 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0315 0.0315

Total Direct Fixed 1.5288 1.5287

Indirect:

Maintenance & Depreciation-General Ground Property 0.1320 0.1319 Aircraft & Traffic Servicing 0.8055 0.8044 General & Administrative 0.8785 0.8823

Total Indirect 1.8160 1.8186

TOTAL OPERATING COST 22.8333 23.1950

Profit TBD 4.1861

TOTAL COST $22.8333 $27.3811

Allowable Cabin Load 61 61

RATE PER TON MILE $0.37432 $0.44887

ABX AIR INC. (ABX) Aircraft Type B767-300F

MEDIUM CLASS AIRCRAFT Cargo Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 300 300

AVERAGE DAILY AIRCRAFT UTILIZATION 5.0 5.0

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $3.9612 $3.9634 Fuel, Oil, & Aircraft Supplies 8.9683 9.3854 Flight Equipment Maintenance 6.1645 6.1597

Total Direct Variable 19.0940 19.5086

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.0753 0.0753 Aircraft Rentals & Miscellaneous 4.5652 4.5650 Flight Equipment Depreciation & Obsolescence 0.0345 0.0345 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 4.6749 4.6747

Indirect:

Maintenance & Depreciation-General Ground Property 0.0000 0.0000 Aircraft & Traffic Servicing 0.6842 0.6834 General & Administrative 0.7634 0.7632

Total Indirect 1.4476 1.4467

TOTAL OPERATING COST 25.2165 25.6300

Profit TBD 2.2072

TOTAL COST $25.2165 $27.8372

RATE PER TON MILE $0.41338 $0.45635

AIR TRANSPORT INTERNATIONAL, INC. (ATI) Aircraft Type B767-300F

MEDIUM CLASS AIRCRAFT Cargo Service

FY20 RATE REVIEW

FORECAST YEAR FY20

BY AS

CARRIER ADJUSTED

TOTAL REVENUE & BACKHAUL/PAID MILES (000) 175 175

AVERAGE DAILY AIRCRAFT UTILIZATION 5.0 5.0

COST PER REVENUE/PAID AIRCRAFT MILE

Direct Variable:

Crew $3.2383 $3.3422 Fuel, Oil, & Aircraft Supplies 8.3766 8.7806 Flight Equipment Maintenance 7.7827 8.2136

Total Direct Variable 19.3976 20.3364

Direct Fixed:

Hull, Public Liability, & Property Damage Insurance 0.0762 0.0762 Aircraft Rentals & Miscellaneous 4.6485 4.6485 Flight Equipment Depreciation & Obsolescence 0.7259 0.7259 Amortization of Preoperating Expense 0.0000 0.0000 Capital Gains & Losses 0.0000 0.0000

Total Direct Fixed 5.4506 5.4507

Indirect:

Maintenance & Depreciation-General Ground Property 0.0145 0.0145 Aircraft & Traffic Servicing 0.4694 0.4689 General & Administrative 0.8250 0.8510

Total Indirect 1.3089 1.3345

TOTAL OPERATING COST 26.1571 27.1215

Profit TBD 3.1486

TOTAL COST $26.1571 $30.2701

RATE PER TON MILE $0.42881 $0.49623

APPENDIX H

Euro As

Pay Trip Euro Percent of

Carrier Aircraft ACL Routing Miles Revenues Charges (USD) Trip Rev

ATLAS AIR, INC. B747-400 420 KBWI-ETAR#OJAQ-OKBK#OJAQ-ETAR-KBWI 13,564 $749,482 $12,709.52 2.10%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR -LTAG #OJAQ -OKBK #OJAQ -LTAG -ETAR -KBWI 13,882 $767,053 $11,939.15 1.93%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR -LTAG #OJAQ -OKBK #OJAQ -LTAG -ETAR -KBWI 13,882 $767,053 $12,313.70 1.99%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR -LTAG #OJAQ -OKBK #OJAQ -LTAG -ETAR -KBWI 13,882 $767,053 $13,715.51 2.21%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR -LTAG #OJAQ -OKBK #OJAQ -ETAR -KBWI 13,723 $758,267 $12,283.66 2.01%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $783,519 $11,653.99 1.84%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $783,519 $11,820.35 1.87%

ATLAS AIR, INC. B747-400 charter 435 KBWI+KNGU*EINN#OJAQ-OMAM-OTBH+OKBK#OJAQ*EINN*KIND-KAUS 15,604 $892,995 $17,310.36 2.40%

ATLAS AIR, INC. B777 charter 380 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $708,898 $10,496.15 1.83%

ATLAS AIR, INC. B747-400 charter 435 KGRK+KFOE-KSSC*CYYT*EINN#OJAQ-OKBK-OTBH+OKBK#OJAQ-LTAG*BIKF*KMSP-KBIF-KBOI+KTCM 17,793 $1,018,268 $12,621.35 1.53%

ATLAS AIR, INC. B747-400 charter 435 KIAH +KHOP *EINN #OJAQ -OKBK +OMAM #OJAQ *EINN -KBWI 14,581 $834,450 $12,282.91 1.82%

ATLAS AIR, INC. B747-400 charter 435 KBWI +KBIF *KMSP *EINN #OJAQ -OKBK #OJAQ *EINN -KBWI -KHOP 15,707 $898,890 $12,156.76 1.67%

ATLAS AIR, INC. B747-400 charter 435 KIAH+KBIF-KGRK-KGTB-EDDN#OJAQ-OKBK#OJAQ*EINN*KMSP-KBIF+KBWI 16,868 $965,332 $11,929.49 1.53%

ATLAS AIR, INC. B747-400 charter 435 KBWI +KGTB -EDDN +OKBK #OJAQ *EINN *KDTW -KGRK -KBIF +KBWI 12,431 $711,409 $12,148.05 2.11%

ATLAS AIR, INC. B747-400 charter 435 KBWI +KCOS *BIKF -EPPO -EPWR /OJAQ /OKBK #OJAQ *EINN *KDTW-KGRK+KBWI 13,352 $764,116 $10,202.36 1.65%

ATLAS AIR, INC. B747-400 charter 435 KAUS -KBIF *KIND *EINN #OJAQ -OKBK -OTBH +OKBK #OJAQ *EINN*KIND-KAUS+KIAH 17,318 $991,085 $11,596.65 1.45%

ATLAS AIR, INC. B747-400 charter 435 KIAH +KNGU *EINN -LGSA #HECA #HSSS #HSRN -HDAM #HECA #HSSS#HSRN-OMAM#OJAQ*EINN-KBWI 19,549 $1,118,762 $11,751.45 1.30%

ATLAS AIR, INC. B747-400 charter 435 KFAR +KGRK -KHRT *CYQX *EINN #HECA -OKBK -OTBH +OKBK #HECA*EINN*CYQX-KGRK+KBWI 16,759 $959,094 $11,653.21 1.50%

ATLAS AIR, INC. B777 charter 380 KBWI +KBIF *KMSP *BIKF #OJAQ -OTBH +OBBI -OKBK #OJAQ *EINN-KNKT-KRIV+KBWI 18,100 $904,870 $12,065.64 1.65%

ATLAS AIR, INC. B747-400 420 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $783,519 $11,767.65 1.86%

ATLAS AIR, INC. B747-400 charter 435 KGRK -KFOE *KMKE *EINN #OJAQ -OKBK -OTBH #OJAQ *EINN -KHOP-KBWI+KGRK 16,667 $953,829 $13,061.44 1.70%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI -ETAR -LTAG #OJAQ -OKBK #OJAQ -LTAG -ETAR -KBWI 13,882 $694,000 $11,169.84 1.99%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI -ETAR -LTAG #OJAQ -OKBK #OJAQ -LTAG -ETAR -KBWI 13,882 $694,000 $11,169.84 1.99%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI +KBDL *EINN #OJAQ -OMAM +OKBK -OTBH #OJAQ *BIKF -KCOS-KGRK+KVPS 16,087 $804,234 $12,235.57 1.88%

OMNI AIR INTERNATIONAL INC B777-charter 380 KDFW +KNGU *EINN #OJAQ -OMAM #OJAQ *EINN -KBWI 14,588 $729,295 $12,189.20 2.07%

OMNI AIR INTERNATIONAL INC B777-charter 380 KVPS *CYQX *EINN #OJAQ -OTBH +OKBK #OJAQ *BIKF -KCOS +KRIV 15,701 $784,937 $11,117.74 1.75%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI +KPOB *EINN #OJAQ -OKBK -OTBH #OJAQ *EINN -KBWI +KDFW 14,444 $722,096 $9,776.94 1.68%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI +KBIF -KGRK *KDTW *EINN #OJAQ -OKBK #OJAQ *EINN *KDTW-KGRK+KBWI 16,550 $827,381 $11,283.15 1.69%

EUROCONTROL SURCHARGE:

PASSENGER

USTRANSCOM

Euro As Pay Trip Euro Percent of

Carrier Aircraft ACL Routing Miles Revenues Charges (USD) Trip Rev

OMNI AIR INTERNATIONAL INC B777-charter 380 KDFW +KGRK *KDTW *EINN #OJAQ -OKBK +OBBI -HDAM #HAGN #HECA*EINN-KGPT-KBIF+KDFW 18,588 $929,266 $11,233.60 1.50%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI +KGRK *KDTW *EINN #OJAQ -OKBK #OJAQ *BIKF *KMSP -KBIF+KDFW 16,324 $816,082 $11,247.17 1.71%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI +KGRK -KPOB *EINN #OJAQ -OKBK #OJAQ *BIKF -KSLN -KBIF+KBWI 16,497 $824,731 $11,248.09 1.69%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $708,898 $11,856.65 2.07%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $708,898 $10,989.52 1.92%

OMNI AIR INTERNATIONAL INC B777-charter 380 KBWI -ETAR #OJAQ *OKBK -OTBH #OJAQ -ETAR -KBWI 14,180 $708,898 $10,950.70 1.91%

UNITED AIRLINES INC B747-400 400 KSFO +KNKT *BIKF -ENVA +OKBK #OJAQ *EINN -KHOP -KBIF +KSFO 12,496 $657,590 $11,169.84 2.10%

UNITED AIRLINES INC B747-400 400 KSFO +KMIB *BIKF #OJAQ -OTBH +OKBK #OJAQ *EINN *KMSP -KBIF+KSFO 15,790 $830,933 $16,107.36 2.40%

UNITED AIRLINES INC B747-400 400 KSFO +KSEA -KBIF -KVPS *CYQX *EINN #OJAQ -OTBH /OKBK /OTBH#OJAQ-ETAR*EINN-KBIF+KSFO 19,189 $1,009,802 $19,378.85 2.38%

ATLAS AIR, INC. B767-300 240 KNGU -LERT -LIRN -LGSA -OBBI -FJDG -OBBI -LGSA -LIRN -LERT-KNGU 20,016 $739,311 $11,586.16 1.94%

ATLAS AIR, INC. B767-300 240 KNGU -LERT -LIRN -LGSA -OBBI -FJDG -OBBI -LGSA -LIRN -LERT-KNGU 20,016 $739,311 $11,904.30 1.99%

ATLAS AIR, INC. B767-300 240 KNGU -LERT -LIRN -LGSA -OBBI -FJDG -OBBI -LGSA -LIRN -LERT-KNGU 20,016 $739,311 $11,899.35 1.99%

ATLAS AIR, INC. B767-300 240 KNGU -LERT -LICZ -OBBI #HSSS #HSRN -HDAM #HSRN #HSSS -OBBI-LICZ-LERT-KNGU 19,046 $703,483 $9,909.68 1.74%

ATLAS AIR, INC. B767-300 240 KNGU -LERT -LICZ -OBBI #HSSS #HSRN -HDAM #HSRN #HSSS -OBBI-LICZ-LERT-KNGU 19,046 $703,483 $9,555.99 1.68%

ATLAS AIR, INC. B767-300 240 KNGU -LERT -LICZ -OBBI #HSSS #HSRN -HDAM #HSRN #HSSS -OBBI-LICZ-LERT-KNGU 19,046 $703,483 $9,557.74 1.68%

ATLAS AIR, INC. B767-300 240 KGRK *KDTW *EINN #OJAQ -OKBK #OJAQ *BIKF *KMSP -KBIF 16,324 $602,943 $9,075.29 1.86%

ATLAS AIR, INC. B767-300 240 KIAH +KBIF *KPSM *EINN #OJAQ -OKBK #OJAQ *EINN *KPSM -KBIF+KIAH 16,904 $624,366 $8,505.81 1.69%

ATLAS AIR, INC. B767-300 240 KIAH +KGRK *KDTW *EINN #OJAQ -OKBK #OJAQ *EINN *KDTW -KGRK+KIAH 16,042 $592,527 $8,556.28 1.79%

ATLAS AIR, INC. B767-300 240 KBIF +KGRK -KNGU *EINN #OJAQ -OKBK -OTBH #OJAQ *EINN -KBWI+KBIF 15,548 $574,281 $7,948.30 1.71%

ATLAS AIR, INC. B767-300 240 KIAH +KCVS -KHRT *CYQX *EINN -LTAG #OJAQ -OKBK #OJAQ *EINN-KHOP+KBWI 16,106 $594,891 $8,273.13 1.72%

ATLAS AIR, INC. B767-300 240 KMIA +KBIF *KMSP *EINN #OJAQ *OKBK -OTBH +EDDN -UGTB +KBWI 10,380 $383,396 $7,538.42 2.43%

ATLAS AIR, INC. B767-300 240 PHLI +PAEI *CYWG *BIKF #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF+KIAH 17,379 $641,911 $8,123.32 1.57%

ATLAS AIR, INC. B767-300 240 KIAH +KBIF *KMSP *EINN #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF+KIAH 16,634 $614,393 $8,345.14 1.68%

ATLAS AIR, INC. B767-300 240 KNGU +KGRK *KDTW *BIKF #OJAQ -OKBK #OJAQ *EINN -KPOB -KGRK+KNGU 16,294 $601,835 $7,952.16 1.64%

ATLAS AIR, INC. B767-300 240 KIAH +KNGU *EINN #OJAQ -OMAM -OTBH #OJAQ *EINN -KBWI +KIAH 14,589 $538,859 $7,662.63 1.76%

ATLAS AIR, INC. B767-300 240 KIAH +KCOS *BIKF -EPWR /OJAQ /OTBH -ETAR *CYQX -KBWI +KIAH 12,200 $450,619 $8,047.28 2.21%

ATLAS AIR, INC. B767-300 240 KIAH +KBIF *KPSM *EINN #OJAQ -OKBK #OJAQ *EINN *KPSM -KBIF+KIAH 16,904 $624,366 $8,080.21 1.60%

ATLAS AIR, INC. B767-300 240 KNGU +KBIF *KNGU *EINN #OJAQ -OKBK -OTBH -OKBK #OJAQ *EINN-KBWI+KNGU 16,081 $593,968 $8,626.95 1.80%

EUROCONTROL SURCHARGE:

Euro As Pay Trip Euro Percent of

Carrier Aircraft ACL Routing Miles Revenues Charges (USD) Trip Rev

ATLAS AIR, INC. B767-300 240 KBWI +EHAM -LBPD /OJAQ /OTBH *VTBU -PGUA +KBWI 7,475 $276,096.60 $4,085.20 1.83%

ATLAS AIR, INC. B767-300 240 KIAH +KBIF *KMSP *EINN #HECA #HEMA -OKBK #HEMA #HECA *EINN*KMSP-KBIF+KIAH 17,192 $635,003.71 $7,906.87 1.54%

OMNI AIR INTERNATIONAL INC B767-200 232 KDFW +KHRT *CYQX *EINN #OJAQ -OTBH -OKBK #OJAQ *EINN *CYEG-PAED-KLAW+KDFW 20,011 $714,488.75 $10,065.89 1.74%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KPOB *EINN -OJMS -OMAM +OKBK -OTBH #OJAQ *BIKF -KCOS+KDFW 15,890 $567,349.27 $10,257.78 2.24%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KBIF *KMSP *EGPD #OJAQ -OKBK #OJAQ *EGPD *KMSP -KBIF+KDFW 16,576 $591,842.76 $10,297.13 2.15%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KNGU *EINN -OJMS -OTBH #OJAQ *EINN -KBWI -KHRT +KSEA 14,901 $532,037.22 $10,475.13 2.44%

OMNI AIR INTERNATIONAL INC B767-300 232 KSLN *CYYR *EINN #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF +KDFW 15,948 $569,420.15 $9,580.42 2.08%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KBIF *KMSP *EINN #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF+KDFW 16,634 $593,913.64 $9,503.00 1.98%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KGRK -KPOB *EINN #OJAQ -OKBK +OTBH #OJAQ *EINN *KMSP-KBIF+KDFW 16,762 $598,483.86 $9,504.00 1.97%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KBIF *KMSP *EINN #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF 16,634 $593,913.64 $9,546.00 1.99%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KBIF *KMSP *EINN #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF+KDFW 16,634 $593,913.64 $9,046.00 1.89%

OMNI AIR INTERNATIONAL INC B767-300 232 KGRK +KNGU *EINN #OJAQ *OKBK -OMAM #OJAQ *EINN *BGTL -PAED+KDFW 15,670 $559,494.22 $9,561.00 2.12%

OMNI AIR INTERNATIONAL INC B767-300 232 KSEA +KBIF *KMSP *EINN #OJAQ -OKBK #OJAQ *EINN *KMSP -KBIF+KDFW 16,634 $593,913.64 $9,470.00 1.97%

OMNI AIR INTERNATIONAL INC B767-300 232 KDFW +KGRK *CYYR -BKPR +LBPD *CYQX -KNBG +KDFW 8,864 $316,487.35 $4,880.00 1.91%

MIAMI AIR INTERNATIONAL INC B737-800 150 KNGU +KGTB *CYQX *EINN *LGSA #OJAQ -OKBK -OTBH #OJAQ *LGSA*EINN*CYQX-KBWI+KNGU 13,991 $322,982.24 $6,694.00 2.57%

SUN COUNTRY AIRLINES B737-800 150 KMSP +KGPT *CYQX *EINN *LGAV #OJAQ -OKBK #OJAQ *LGAV *EINN*CYQX-KGRK+KMSP 15,755 $363,704.18 $6,322.00 2.15%

TOTAL $50,522,285.22 $939,491.63 1.90%

*** Surcharge is based on the Final FY18 revised rates and rounded to the nearest tenths decimal point

EUROCONTROL SURCHARGE:

Euro As Pay Trip Euro Percent of

Carrier Aircraft ACL Routing Miles Revenues Charges (USD) Trip Rev

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK #OJAQ -ETAR -KWRI 13,934 $568,660 $12,776.44 2.78%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK #OJAQ -ETAR -KDOV 14,009 $571,721 $12,756.32 2.76%

ATLAS AIR, INC. B747-400 100 KDOV *EINN #OJAQ -OTBH -OKBK #OJAQ -ETAR -KDOV 14,077 $574,496 $11,685.94 2.52%

ATLAS AIR, INC. B747-400 100 KDOV *EINN #OJAQ -OTBH -OKBK #OJAQ -ETAR -KDOV 14,077 $574,496 $11,862.64 2.56%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK +VHHH 7,275 $296,900 $6,061.12 2.53%

ATLAS AIR, INC. B747-400 100 KDOV *EINN #OJAQ -OTBH -OKBK +KDOV 7,343 $299,675 $6,338.50 2.62%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OKBK -OTBH #OJAQ -ETAR -KWRI 13,934 $568,660 $12,302.31 2.68%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK +KDOV 7,275 $296,900 $5,952.91 2.48%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK +KWRI 7,275 $296,900 $6,344.16 2.65%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK #OJAQ -ETAR -KWRI 13,934 $568,660 $12,691.81 2.76%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OKBK -OTBH #OJAQ -ETAR -KWRI 13,934 $568,660 $12,769.11 2.78%

ATLAS AIR, INC. B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK +KJFK 7,275 $296,900 $5,995.85 2.50%

ATLAS AIR, INC. B747-400 100 KDOV *EINN -OAIX -ETAR -KDOV 14,294 $583,352 $11,364.79 2.41%

ATLAS AIR, INC. B747-400 100 KNIP *KNGU *LEST -LICZ *LEST *KNGU -KNIP 10,752 $438,800 $4,758.69 1.34%

KALITTA AIR, LLC B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK +KWRI 7,275 $296,900 $17,726.91 7.39%

KALITTA AIR, LLC B747-400 100 KDOV *EINN #OJAQ -OTBH -OKBK #OJAQ -ETAR -KDOV 14,077 $574,496 $16,191.26 3.49%

KALITTA AIR, LLC B747-400 100 KDOV *EINN #OJAQ -OTBH -OKBK +KJFK 7,343 $299,675 $17,666.16 7.30%

KALITTA AIR, LLC B747-400 100 KWRI -ETAR #OJAQ -OTBH #OJAQ -ETAR -ETAR -KWRI 13,850 $565,232 $14,925.16 3.27%

KALITTA AIR, LLC B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK #OJAQ -ETAR -KWRI 13,934 $568,660 $14,722.80 3.20%

KALITTA AIR, LLC B747-400 100 KWRI -ETAR #OJAQ -OTBH -OKBK +KJFK 7,275 $296,900 $16,930.92 7.06%

KALITTA AIR, LLC B747-400 100 KWRI -ETAR #OJAQ -OTBH -OTBH -OKBK +KWRI 7,275…