•;\^:.rORTATIO N • i r . - n . '

October 25 , 20 1 Mr . Donal d Brigh

t Directo r o f Offic e o f Airlin e Informatio n Burea u o f Transportatio n Statistic s Departmen t

o f Transportation , K-25 40 0 Sevent

h St. , S.W . Washington , D C 2059 0

Re : Motio n o

f Unite d Ai

r Lines , Inc . For Confidentia

l Treatment ; Schedul e B-7 , Airfram

e and Aircraf

t Engin e Acquisition s an

d Retirement s Dea r Mr . Bright : Enclose d are thre e copie s o f United Ai

r Lines ' Motio n to Withhol d Informatio n fro mPubli c Disclosure fo

r th e perio d ende d Septembe r 30 , 2011 . Th e origina

l of th e Motio n together

wit h th e informatio n requeste d i s presentl y enrout e t o th e Offic e o

f Aviatio n Informatio n an

d Management today .

Davi d B . Olausse n Senio r Counse l Enclosure sBEFOR E THE DEPARTMENT O F TRANSPORTATIO N OFFIC E O F TH E SECRETARY WASHINGTON , D.C .

Motio n o f UNITE D AI R LINES , INC . Fo r Confidentia

l Treatment Unde r Sectio n 302.3 9 Docket OST-95-67 5

MOTION O F UNITE

D AI R LINES , INC . T O WITHHOLD INFORMATIO N FROM PUBLI C DISCLOSUR E Communication s wit

h respec t t o thi s document

shoul d b e sent

to : DAVI D B . OLAUSSE

N Senio r Counse l UNITE D AI R LINES , INC . 7 7 Wes t Wacke r Driv e Chicago , I L 6060 1 312-997-806 9 DATED : Octobe

r 25 , 201 1

### BEFOR E TH E DEPARTMEN T O F TRANSPORTATIO N OFFIC E O F TH E SECRETAR Y WASHINGTON , D.C . Motio n of UNITE D AI R LINES , INC . For Confidentia

l Treatment Unde r Sectio n 302.3 9 Docket OST-95-67 5

MOTION O F UNITE

D AI R LINES , INC . T O WITHHOL

D INFORMATIO N FRO M PUBLI C DISCLOSUR E Pursuant to Rul e 39(e ) of

th e Departmen

t of Transportation , Offic e of

the Secretar y Procedura

l Rules , Unite d Ai

r Lines , Inc . ("United" ) hereb y file s thi s Motio n t o Withhol d FromPubli c Disclosure th e informatio n containe d i n aseale d envelop e and captione d Schedul e B' 7 Airfram

e an d Aircraf

t Engin e Acquisition s an

d Retirement s an

d delivere d t o th e Offic e o f Aviatio n Transportatio n Management . Thi s informatio n i s provide d pursuant t o Par t 24 1 o f th e Department' s Economi c Regulations . 1 4 CF R 241 . an d i s par t of For m4 1 Schedul e B-7 . Th e informatio n sought t o b e withhel d fro

mpubli c disclosure detail s United' s acquisitio n cos t

an d sale s realizatio n amount s wit h respec t to new an

d use d aircraf

t an d aircraf t engines , eac h broke

n down b y model , individua l seria l number , and individua

l purchas e o r

sal e prices . Th e informatio n for which Unite d seek s confidentia l treatmen t

unde r thi s instant Motio n i s simila

r t o an d consistent

wit h tha t fo r whic h th e Departmen

t granted , i n 199 3 and 199 4 orders , confidentia

l treatment

t o simila r Schedul e B- 7 dat afiled separatel y b y United , America n Airlines , Inc . ("American" ) an d Delt aAi r Lines . Inc . ("Delta") . Th e informatio n sought

t o b e withhel d fall s withi n Exemptio n 3 o f th e Freedo m o f Infomiatio n Ac

t ( 5 U.S.C . 552(bH3)) . which exempt s fro mdisclosure informatio n require d b y statute t

o b e withheld . Exemptio n 3 provide s that :"(b ) Thi s sectio n doe s no t appl y t o matter s tha t are.. .

* * (3 ) specificall y exempte d fro mdisclosur e b

y statute (other

tha n sectio n 552(b ) of thi s title) , provide d tha

t such statut e (A ) require s tha t th e matter s b e withhel d fromth e publi c i n such amanner

a s t o leav e n o discretio n o

n th e issue , o r

(B ) establishe s particula

r criteri afo

r withholdin g o r

refer s to particula

r type s of matter s to b e withheld; " Sectio n 110

4 o f th e Federa

l Aviatio n Act

of 1958 , a s amende d (th e Act) , provide s that : "An

y perso n ma

y mak e writte n objectio n t o th e publi c disclosur e of informatio n containe d i

n an y application , report , o

r documen t file d pursuan t

t o th e provision s of

thi s Act.. . statin g th e ground s fo r such objection . Any informatio n containe d in suc h application , report , o r

document.. . shal l b e withhel d fro

mpubli c disclosur e b y th e .. . Secretar y o f Transportatio n .. . i

f disclosure o

f such informatio n woul d .. . adversel y affect th e competitiv e positio n o f an y air carrier i n foreig n ai

r transportation. " Unite d consider s th e requeste d informatio n delete d fro mSchedul e B- 7 t o b e highly sensitiv e an

d confidential . Th e air

transportatio n industry , bot h domesticall y an

d internationally , ha s becom e highly competitive . Aircraf t ownershi p cost s ar

e amajo r cos t of doin g busines s fo

r al l certificate d carriers . A carrier' s abilit y t o reduc e it s aircraf

t ownershi p cost s relativ e to it s competitor s can , therefore , provid e acarrie r asignificant

competitiv e advantage . I

n a n effor t t o secur e such a n advantage , Unite d applie s considerabl e management resource s to tryin g t o reduc e it s aircraf t ownershi p costs . Thi s include s devotin g substantial resource s to tryin g to obtai n airframe s an d engine s a

t th e lowes t

possibl e acquisitio n cos t

an d disposin g o

f thes e asset s a

t th e highes t

possibl e sale s price . Moreover , th e negotiation s fo r new equipment are mad e mor

e difficul t b y th e fac

t tha t ther e are only thre e manufacturer s o f larg e je t airframe s an

d onl y thre e o

f larg e je t engines . However , as lon g a s th e Department make s availabl e t o th e publi c United' s acquisitio n cos t fo r eac h airfram

e an d engin e i t

acquire s an

d th e sale s proceed s realize d o

n eac h sal e o

f suc h equipment . Unite d i s denie d th e benefi t o f thes e efforts , harmin g Unite d commercially .

Onc e United' s cost s ar

e divulged , United' s competitor s ca n us e thes e cos t

dat at o negotiat e contrac t pric e adjustment s fro

mth e sam

e supplier s Unite d i s usin g or fro mcompetin g suppliers . Sinc e man

y o f thes e competin g carrier s ar e foreig n fla

g carriers , thei r

equipment price s will neve

r b e reporte d t

o the Department , le

t alon e b e mad

e public . I

t i s not onl y commerciall y damagin g bu t basicall y unfai

r to Unite d an

d all other U.S . carrier s to requirethemt o divulg e t o thei r non-reportin g foreig n fla

g competitor s the fruit s of

thei r competitiv e effort s wit h manufacturer s to secur

e the bes t possibl e purchas e price . See , e.g. , Order 81-12-9 . Th e disclosure of

United' s purchase s and disposition s of individua l aircraf t an d aircraf t engine s woul d allo w competin g foreig n and domesti c airlines , manufacturer s of aircraf t an d engines , an

d ne w and use d aircraf

t owner/lessor s to calculate an d closel y trac k

United' s cost s t o inquire , modify , transfe

r o r dispos e o f it s variou s fleet s o

f use d model s aircraf

t (an d relate d use d aircraf

t engines) . I

t woul d adversel y affect

United' s competitiv e positio n b y strengthenin g th e bargainin g positio n o f othe r airlines , includin g foreig n airlines , and aircraf t owner/lessor s seekin g t o purchas e aircraf t equipmen t

fro mmanufacturer s and others . The y woul d b e abl e to us e thei r

knowledg e o f

United' s confidentia

l purchas e an d sal e arrangement s a s startin g point s i

n thei r own negotiations , an

d thu s improv e thei r

abilit y t o obtai n equa

l o r mor e favorabl e prices . Thi s woul d lea d t o United' s competitors , includin g foreig n competitors , bein g abl e to enjo y lower

capita l cost s tha n otherwis e th e case , an

d to thei r bein g abl e t o operat e and compete more efficiently wit h Unite d tha

n otherwise . Unite d submit s tha

t FOI A Exemptio n 3 i s applicable , a s aresul t of th e provisio n i n Sectio n 110

4 o f th e Ac t requirin g th e withholdin g fro mpubli c disclosur e of

any informatio n containe d in arepor

t filed pursuan t

t o th e Act , i

f such disclosure woul d "adversel y affect th e competitiv e positio n of

an y air carrier i n foreig n ai r

transportation " (4 9 U.S.C . App . 1504) . Th e informatio n fo

r whic h Unite d seek s confidential treatment unde r thi s instant

Motio n i s simila r to an d consisten t

wit h tha t fo r whic h th e Department

grante d confidentia

l treatment , i

n (i ) aMarch 29 , 199 3 order concernin g simila

r Schedul e B- 7 datafiled b y Delta , (ii ) a November

1 , 199 3 order

concernin g simila

r Schedul e B- 7 dat afiled b y American , (iii ) a Decembe r 29 , 199 3 order

concernin g simila

r Schedul e B- 7 dat afiled b

y United , (iv ) a

n Augus t 23 , 1994 order

concernin g simila

r Schedul e B- 7 dat afiled b y Delta , an d (v ) aNovember

18 , 1994 order concernin g simila

r Schedul e B- 7 datafiled b y United . Th e Department' s grant s o f confidentialit

y wer e specificall y mad e unde r

Exemptio n 3 (and it s 199 3 grant s wer e mad e exclusivel y unde

r Exemptio n 3 ) sinc e Deltaand American , lik e United , compete wit

h foreig n air carrier s wh o d o no t

fil e suc h informatio n ye

t ar e fre e to obtai n U.S . carrie r

informatio n from th e Department . Th e Department there stated : "thi s lack o f reciproca l access , the Department

believes , coul d substantiall y har mth e competitiv e positio n o

f American , resultin g i

n the erosio n o

f th e U.S . internationa

l airiin e industry. " Unite d als o submit s tha

t th e informatio n sought

t o b e withhel d fall s within exemptio n 4 fro

mth e Freedo mo

f Informatio n Act , 5 U.S.C . 552(b)(4) , which provide s protectio n fro

mdisclosure fo

r "trad e secret s an

d commercia

l o r financial informatio n obtaine d fro maperso n an

d privilege d o r

confidential;... " Unite d believe s th e requeste d informatio n delete d fro mSchedul e B- 7 clearl y satisf y al l thre e element s require d fo r protectio n unde

r Exemptio n 4 . First , th e acquisitio n cos t an d sale s realizatio n amount s reporte d ar e substantiall y th e sam e a s negotiate d between th e parties , which purchas e an d sal e price s ar

e clearl y financial or commercia

l i n nature . Second . Unite d establishe d thes e price s throug h it s negotiation s wit hprivate thir d parties ; th e informatio n wa s no t obtaine d fro

many governmenta

l entities . Third , th e disclosure o

f suc h informatio n woul d har mUnited' s competitiv e position . Se e Gul f & Wester n Indus. . Inc . v . Unite d States . 61 5 F.2 d 52 7 (D.C . Cir . 1979) , National Park s & Conservatio n Ass' n v . Morton . 49 8 F.2d 76 5 (D.C . Cir . 1974) , Steriin g Drug . Inc . v . Federa l Trad e Comm'n . 45 0 F.2 d 69 8 (D.C.Cir . 1971) , Th e Tinke n Co . v . U.S . Custom s Service , 49 1 F.Supp . 55 7 (D.C . Cir . 1980) , Braintre e v . Deot . o f Energy . 49 4 F.Supp . 287 , and Burk e Energ y Corp . v . Department of Energy . 58 3 F.Supp . 50 7 (D . Kan . 1984) . Finally , th e Department' s 199

4 grant s o f confidentialit

y (i.e. , it s Augus t

23 , 1994 orde r

concernin g simila

r Schedul e B-7/B-4 3 dat afiled b y Delta , an

d it s November

18 , 1994 order

concernin g simila

r Schedul e B- 7 dat afiled b

y United ) wer

e specificall y mad e under

bot h Exemption s 3 and 4 . Th e Department , whe

n decidin g United' s (an d American' s and Delta' s respective ) prio r

B- 7 confidentialit

y motions , grante d aten-yea r confidential perio d beginnin g o n th e dat e th e informatio n wa s require d t o b e filed pursuan t t o 1 4 CF R 241.22(a) . Unite d deserve s t o b e treate d n o les s favorably wit h respec t t o th e seale d Schedul e B- 7 attache d hereto . WHEREFORE , Unite d request s tha t th e Department , pursuan t

t o Rul e 3 9 o

f it s Rule s o f Practic e and Exemption s 3 an d 4 o f th e Freedo mof

Informatio n Act , withhol d fro m publi c disclosure , th e pric e informatio n containe d i n th e Airfram

e an d Aircraf t Engin e Acquisitio n an

d Retirement s item s which hav e been delete d fro mcolumn s 9 , 1 0 an d 1 1 of th e publi c filing o

f United' s quarteri y For

m4 ] Schedul e B- 7 repor

t fo r aperio d of

no t les s tha n te n years . Respectfully submitted .

Davi d B . Olausse n Senio r Counse l UNITED AI

R LINES . INC . DATED : Octobe

r 25 , 201 1