e :cmRTMENT OF 

^'HMSPORWION 

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lis. Department of 1200 New jersey Avenue, SE 

Transportation Washington, DC 20590 

Off^eoftheSecrelary /OIO AUG 30 P 3= l|2 

of Transportation 

August 30, 2010 

Mark W. Atwood 

Elizabeth J. Wadsworth 

Sher & Blackwell LLP 

1850 M St., NW, Suite 900 

Washington, D.C. 20036 

Re: Dockets DOT-OST-2010-0181 and DOT-OST2010-0215, Applications of National Air Cargo 

Group, Inc., d/b/a National Airlines for Section 

41102 Certificate Authority 

Dear Mr. Atwood: 

We are currently reviewing the certificate applications of National Air Cargo Group, Inc., d^/a 

National Airlines ("National Airlines") in Dockets DOT-OST-2010-0181 and DOT-OST-2010-

0215. The purpose of this letter is to notify you of our intended ruling on your request for 

confidential treatment of documents filed in support of the referenced applications. 

National Airlines' motion, filed August 18, 2010, requests that the following material be 

considered for confidential treatment under 14 CFR 302.12 (Rule 12): 

Exhibit NA-7 - Combined Financial Statements and other financial information for 

National Air Cargo Holdings, Inc. ("NAC Holdings"), the ultimate parent company of 

National Airlines. 

In support of your request for confidential treatment of the noted documents, you stated that 

these documents include sensitive financial information the public disclosure of which could 

adversely affect NAC Holdings' and its subsidiaries commercial and financial interest. 

Rule 12 instmcts us to evaluate requests for confidential treatment in accordance with the 

standards of disclosure found in the Freedom of Information Act (5 U.S.C. section 552). By this 

standard, information may be withheld from disclosure under 5 U.S.C. 552(b)(4) if it is (1) 

commercial or financial, (2) obtained from a person outside the government, and (3) privileged 

or confidential. [Gulf and Western Industries, Inc. v. United States, 615 F.2d 527, 529 (D.C. 

Cir. 1979)]. 

The information identified above clearly meets the first two requirements. The remaining 

question is whether the informavion is privileged or confidential that is, whethei "•disclosure of 
ability to obtain necessary informalion; or (2) cause substantial harm to the competitive position 

of the person from whom the information was obtained." [National ParJis and Conservation 

Association v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974)] Furthermore, to be privileged or 

confidential, the information must not be of the type that is usually released to the public. [Gulf 

and Western Industries, Inc. v. United States, 615 F.2d 527, 530)] 

Absent a clear and justifiable reason for doing so, it is not the Department's practice to withhold 

from public disclosure information regarding the applicant's current or historical financial 

information, or the financial condition of its parent company except when the applicant has 

shown that substantial harm to its competitive position would result from public disclosure of 

the given information and such information is not the type that is normally released to the 

public. No such showing has been made. Section 204.3(k) of our rules (14 CFR 204.3) requires 

applicant's for certificate authority to provide certain historical financial statements for relevant 

corporations such as, NAC Holdings. In addition, the financial health of NAC Holdings is 

particularly relevant here, since National Airlines is relying on financial support from NAC 

Holdings to meet the Department's financial fitness requirements. Therefore, we will deny 

National Airlines August 18, 2010, motion for confidential treatment. However, since Exhibit 

NA-7 contains excessive financial information beyond that needed for our review of National 

Airlines' fitness. National Airlines may instead provide its most recent consolidated balance 

sheet and consolidated income statements for its 3 most recent calendar or fiscal years. 

Under Rule 12, the Department's ruling on a motion for confidential treatment will not take 

effect if, within five (5) business days after issuance, the person requesting confidential 

treatment files a petition for reconsideration of that decision, or files a statement that he or she in 

good faith intends to seek judicial review of the decision. If National Airlines elects to petition 

the Department as to this confidentiality determination, we expect that it will provide a statement 

explaining how the items fall within the exceptions under the Freedom of Information Act and is 

not otherwise required to be filed publicly by all applicants for certificates of public convenience 

and necessity. Responses shall be due within five calendar days of the filing of such a petition. 

If National Airlines elects not to file a petition, we direct that it file the exhibit or other 

information as noted above in the public docket in this proceeding within five business days of 

the date of this letter. In the meantime, as is the Department's practice, further processing of 

your application will be deferred pending receipt of this material. 

Thank you for your cooperation in this matter. If you have any questions, please feel free to 

contact Damon Walker at (202) 366-7785 or by e-mail at Damon.Walker@ost.dot.gov. 

Sincerely, 

Lauraijoii/ Remo, Chief 

Air CaiTier Fitness Division 

Office of Aviation Analysis 
cc: Docket DOT- OST-2010-0181; 

DOT-OST-2010-0215