^ Ui.i 

USyDepoilinentof 

Transportation 

Office of the Secretary 

of Transportation 

July 12, 2010 

Ms. Margi Holmstrom 

Vice President-Administration 

Cailsbad-Palomar Airlines, Inc. 

d/b/a California Pacific Airlines 

5670 El Camino Real, Suite D 

Carlsbad, CA 92008 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

Re: Docket DOT-OST-2010-0126, Ruling on Motion 

of Carlsbad-Palomar Airlines, Inc. d/b/a California 

Pacific Airlines for Confidential Treatment of 

Documents 

Dear Ms. Holmstrom: 

We are currently reviewing the certificate applications of Carlsbad-Palomar Airlines, Inc. 

d^/a California Pacific Airlines ("CP Air") in Docket DOT-OST-2010-0126. 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 application. 

CP Air's motion, filed May 18, 2010, requests that the following material be considered for 

confidential treatment under 14 CFR 302.12 (Rule 12): 

Exhibit 5 - Aircraft Acquisition Plans (Letter of Intent from Aircraft Lessor) 

Exhibit 8 - Business Plan (Applicant's internal business and marketing plans) 

Exhibit 9 - Financial Statements 

Exhibit 10 - 3-Month no revenue plan (Applicant's Private Placement 

Memorandum) 

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

these documents include sensitive commercial and/or financial information the public 

disclosure of which could adversely affect CP Air's commercial and financial interest. 

Rule 12 instructs 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 infbiitiation is privileged or confidential, that is, whether 

"disclosure of the information is likely to have either of the following effects: (1) impair the 

Government's ability to obtain necessary information; or (2) cause substantial harm to the 

competitive position of the person from whom the information was obtained." [National 

Parks and Conservation Association v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974)] 

Furthermore, to be privileged or coiifidential, 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)] 

We agree with CP Air that it's Aircraft Acquisition Plan, Business Plan, and Private 

Placement Memorandum contains information that would not normally be released to the 

public and disclosure of such information could substantially harm the company's 

competitive position. These exhibits contain extensive information about the company's 

competitive strategy, proposed fares,, and projected revenues for planned routes. Release of 

such information would allow CP Air's competitors to respond to the company's operating 

proposal before the air carrier is even launched. Accordingly, we will grant confidential 

treatment to Exhibits 5, 8, and 10. However, absent extenuating circumstances, it is not the 

Department's practice to withhold from public disclosure information regarding an 

applicant's first-year operating expense forecasts. When requested, however, the 

Department will generally grant confidential treatment to information pertaining to a 

company's forecast revenues (and related statistics). Therefore, we will grant confidential 

treatment to the revenue and income line items contained CP Air's first-year operating 

expense forecast. The remaining material requested confidential treatment in Exhibit 9 is 

denied. In doing so, we find that the applicant has not 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. 

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 CP Air 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 CP Air elects not to file a petition, we direct that it file the information 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. In addition, once this matter is satisfactorily 

resolved, CP Air can expect to receive a request for additional and/or clarifying information 

needed in connection with its application. 
If vou have any questions, please feel free 

Sincerely, 

Air Carrier Fitness Division 

Office of Aviation Analysis 

cc: 

Docket DOT-OST-2010-0126