## u.s.Departmentof Transportation OfficeoftheSecretary ofTransportation May 20, 2010 Mr. Joel T. Johnson President, GulfCoastAirways, Inc. 526 Terminal Drive Naples Municipal Airport Naples, Florida 34104 Re: DocketDOT-OST-2009-0249 1200 NewJersey Avenue, SE Washington, DC 20590

Application ofGulfCoast Airways, Inc., for Authorityto Conduct Scheduled Operations as a CommuterAir CatTier

DearMr. Johnson On October 5, 2009, Gulf Coast Airways, Inc. ("GCA"), filed an application in Docket DOT-OST

-2009-0249 for authority to conduct scheduled passenger operations as a commuter air catTier. On April 27, 2010, GCA filed a motion under section 302.12 (Rule 12) of the Department's regulations requesting confidential treatment ofpersonal financial information and financial forecast related to the air caniers application. In. support ofits request, GCA states that these documents are (1) commercial orfinancial in nature, (2) obtained from aperson outsidethe govemment, and (3) privileged orconfidential in nature. Specifically, GCArequests that theDepartmentwithholdthefollowing information Exhibit 1

- Letter ofauthorization from Martha Lawson Exhibit 2

- Third PartyVerification ofFunds from Morgan Stanley Exhibit 3

- Morgan Stanleyfinancial statement Exhibit 4

- Personal Financial StatementofJoel T. and MarthaJohnson Exhibit 5

- ProjectedProfit/Loss Statementofintendedroute Rule 12 instructs us to evaluate requests for confidential treatment in accordance with the standat'ds of disclosure found in the Freedom of Information Act (5 U.S.c. section 552). Information maybe withheld from disclosure under 5 U.S.C. 552(b)(4) ifit is (1) commercial or financial, (2) obtained from a person outside of govemment, and (3) privileged or confidential (Gulfand Western Industries Inc. v. UnitedStates, 615F.2d 527, 529 (D.C.Cir 1979)). There is no question that the information for which confidential treatment is sought is financial or commercial in nature and that is was obtained from a person outside the govemment. The remaining question is whether the remaining information is privileged and confidential -whether "disclosure of the information is likely to have either of the following effects: (1) impair theGovernment's ability to obtain necessary information; or (2) cause substantial harm to the competitive position of the person from whom the information was obtained" (See National Parks and Conservation Association v. Morton, 498 F.2d 765,770 (D.C. Cir. 19740)). Further, to be privileged or confidential, the information must not be the type that is usually released to the public (See Gulfand Western Industries, Inc. v. United States, 615 F.2d 527, 530 (D.C. Cir 1979)). We have reviewed the material submitted and have decided to grant confidential treatment to some, but not all, ofthe information for which such treatment is sought. With respect to Exhibit 1, this information is not required in the Department's fitness evaluation ofGCA. Therefore, it is granted confidential treatment. Regarding Exhibit 2, on April 27, 2010, GCA filed a separate motion providing clarification to this exhibit. Confidential treatment is denied to Exhibit 2. It is not our practice to withhold from public disclosure an applicant's CUlTent financial statement. Moreover, since GCA is relying on the financial support of Ms. Lawson's and Mr. Johnson's personal funds, the financial information verified in this exhibit is germane to the Department's fitness appraisal of GCA. In regard to Exhibit 3, we will pattially grant confidentiality, solely to the account number. As mentioned above, it is not our practice to withhold from public disclosure an applicant's CUll'ent financial statement. In regard to Exhibit 4, confidential treatment is granted because this information is not required in the Department's fitness evaluation. Regarding Exhibit 5, on May 5, 2010, GCA filed a Motion requesting the Department not withhold the infolTllation in Exhibit 5, rendering the request for confidential treatment moot. Under Rule 12, the information identified above for which confidential treatment is not granted, will be released to any person requesting it unless, within 5 (business) days from the date of receipt ofthis letter, the applicant files with this office a petition ofreconsideration or a written statement in good faith ofits intent to seekjudicial review ofthis decision. Please inform us if GCA wishes to pursue either option. Ifreconsideration orjudicial review ofthis decision is not sought, GCA should immediately resubmit to the appropriate docket, the redacted exhibits and those which confidentialityhas beendenied, for placementon the public record. In the meantime, as is the Department's practice, further processing of your application will be deferred pending receipt ofthis material. Thank you for your cooperation in this matter. Ifyou have any questions regarding this letter or the requested information, please feel free to contact Katy O'Toole ofmy staffat (202) 366-9998 orvia email at Catherine.O'Toole@dot.gov. Sincerely,

# --'<v-ai~~~~~ Acting Chief, AirCarrierFitness Division Office ofAviation Analysis

cc: Docket DOT-OST-2009-0249 Mr. Felix Molina, POIfor GulfCoastAirways, Inc.