You could have heard a pin drop as announcements were made about the future of bypass mail at the Alaska Air Carriers Association's postal service meeting with airline managers on March 3 in Anchorage.

Air carriers in attendance got the news that mail specialists located in Alaska are being offered early retirement or to be relocated to Denver.

"I may be retiring as soon as the end of this year," said Steve Deaton, bypass mail specialist for the U.S. Postal Service.

The news came as a shock to aviation officials during the 43rd annual Alaska Air Carriers Association convention at the Captain Cook Hotel in Anchorage.

"This is the worst kind of news for us," said Bob Hajdukovich, president of Frontier Alaska. "Without someone here in Alaska who understands mail issues and the complexities of the state, this could be a real disaster."

In the meantime, the congressional delegation worked with the Postmaster General to ward off bypass mail rate increases.

A proposed 40 percent rate increase to rural Alaska residents for bypass mail had legislators and Gov. Sarah Palin concerned because of the increased costs to rural residents. The Alaskan Congressional Delegation requested that mail be charged at a maximum of the 70-pound rate, the Postmaster General agreed to this proposal.

In response, "the Postal Service indicates that it is working with shippers and air carriers in Alaska to change and simplify the acceptance of bypass mail," according to an 84-page report issued by the USPS.

Currently, bypass mail parcels in Alaska are either bundled and charged at a bundled rate or simply charged at their individual rate and loaded on pallets.

With the regular mail price increase set to start May 11, those same parcels would cost $15.37 each, up from the previous price of $11.54. Under the new plan, bypass mail parcels will not be bundled or individually metered, but rather presented to USPS on a full pallet with the weight being divided by the 70-pound rate to determine the postage.

Bypass mail is shipped directly from urban merchants to rural customers via air carriers, bypassing the post office. The program, which dates back to 1985, was designed to reduce the cost of living in rural Alaska. Bypass mail can make up as much as 60 percent of some carriers' annual revenue.

Deaton has worked for the postal service in Alaska for years, and the news about his potential retirement comes as the amount of cargo being moved through the $150 million bypass system is increasing.

Airline representatives wonder who would take his place, and from where the mail would be coordinated.

"This is one of my biggest concerns. If I leave, who would coordinate the mail for carriers," said Deaton. "Someone will do it. The postal service will not just leave them holding the bag."

Deaton, a 45-year resident of Alaska, also said the bypass mail district office might be moved to Colorado, closing the local venue should both bypass mail specialists retire.

In late January, Deaton said the Postal Service had proposed delegating new hubs in locations that would force flights to go farther into the Bush. The proposed new hubs would preclude service from major carriers that currently deliver mail to hubs.

Deaton said this month that those proposals were "up in the air."

Major carriers Alaska Airlines, Everts Air Cargo, Northern Air Cargo and Lynden take mail, food and other cargo items to the hub areas, such as Bethel, Kotzebue or Nome. From there, smaller airlines take packages to more remote communities.

Rob Stapleton can be reached at robstapleton.@alaskajournal.com.