^ Ui. i

USyDepoilinento f Transportatio n Offic e o f th e Secretar

y o f Transportatio n Jul y 12 , 201 0 Ms
. Marg i Holmstro m Vic e President-Administratio n Cailsbad-Paloma r

Airlines , Inc
. d/b/ aCaliforni aPacifi c Airline s 567 0 E l Camin o Real , Suit e D Carlsbad , C A 9200 8 120 0 Ne w Jerse yAvenue , S

E Washington , D C 2059 0

Re : Docke t

DOT-OST-2010-0126 , Rulin g o n Motio n o f Carlsbad-Palomar

Airlines , Inc
. d/b/ aCaliforni a Pacifi c Airline s fo r

Confidentia l Treatmen t o f Document s Dea r Ms
. Holmstrom : W e ar e currentl y reviewin g th e certificat e application s o f Carlsbad-Palomar

Airlines , Inc
. d^/ aCaliforni aPacifi c Airline s ("C P Air" ) i n Docke t DOT-OST-2010-0126
. Th e purpos e o f thi s lette r

i s t o notif

y yo u o f ou r intende drulin g o n your reques t for confidential treatmen t o f document s file di n support of th e reference dapplication
. C P Air' s motion , file dMa y 18 , 2010 , request s tha t

th e followin g materia l b e considere dfor confidentia l treatmen t

unde r 1 4 CF R302.1 2 (Rul e 12) : Exhibi t 5 - Aircraf

t Acquisitio n Plan s (Lette r o f Inten t fro mAircraf

t Lessor ) Exhibi t 8 - Busines s Pla n (Applicant' s interna l busines s an dmarketin g plans ) Exhibi t 9 - Financia l Statement s Exhibi t 1 0 - 3-Mont

h n o revenu e pla n (Applicant' s Privat e Placemen t Memorandum) I n support

o f you r reques t fo r confidential treatmen t

o f th e note ddocuments , yo u state dtha t thes e document s includ e sensitiv e commercia l and/o r financial informatio n th e publi c disclosur e o f

whic h coul dadversel y affec t C P Air' s commercia l an dfinancia l interest
. Rul e 1 2 instruct s u s t o evaluat e request s fo r confidentia l treatmen t

i n accordanc e wit

h th e standard s o f

disclosur e foun di n th e Freedo mof Informatio n Ac t

( 5 U.S.C
. sectio n 552)
. B y thi s standard , informatio n may b e withhel dfro mdisclosur e unde r 5 U.S.C
. 552(b)(4 ) i

f it i s (1 ) commercia l or

financial , (2 ) obtaine dfro maperso n outsid e th e government , an d(3 ) privilege do r

confidential
. [Gul f

an dWester

n Industries , Inc
. v . Unite dStates , 61 5 F.2 d 527 , 52 9 (D.C
. Cir
. 1979)]
.Th e informatio n identifie dabov e clearl y meet s th e firs t tw o requirements
. Th e remainin g questio n i s whethe r

th e infbiitiatio n i s privilege do r confidential , that

is , whethe r "disclosur e o f

th e informatio n i s likel y t o hav e eithe r o f th e followin g effects : (1 ) impai r th e Government' s ability t o obtai n necessary information ; o r (2 ) caus e substantia l har mt o th e competitiv e positio n o f

th e perso n fromwho mth e informatio n wa s obtained. " [Nationa l Park s an dConservatio n Associatio n v . Morton , 49 8 F.2 d765 , 77 0 (D.C
. Cir
. 1974) ] Furthermore , t o b e privilege do r coiifidential , th e informatio n mus t no t b e of th e typ e that

i s usuall y release dt o th e public
. [Gul f an dWester

n Industries , Inc
. v . Unite dStates , 61 5 F.2 d 527,530) ] W e agre e with C P Ai r

that it' s Aircraf

t Acquisitio n Plan , Busines s Plan , an dPrivat e Placemen t

Memorandu mcontain s informatio n that woul dno t

normall y b e release dt o th e publi c an ddisclosur e o f suc h informatio n coul dsubstantiall y har mth e company' s competitiv e position
. Thes e exhibit s contai n extensiv e informatio n abou t th e company' s competitiv e strategy , propose dfares, , an dprojecte drevenue s for planne droutes
. Releas e o f suc h informatio n woul dallo w C P Air' s competitor s t o respon dt o th e company' s operatin g proposa l befor e th e ai r

carrie r i s eve n launched
. Accordingly , w e wil l gran t confidentia l treatmen t t o Exhibit s 5 , 8 , an d10
. However , absen t extenuatin g circumstances , i t i s not th e Department' s practic e t o withhol dfrompubli c disclosur e informatio n regardin g a n applicant' s first-yea

r operatin g expens e forecasts
. Whe n requested , however , th e Departmen t

wil l generall y gran t

confidential treatmen t

t o informatio n pertainin g t o a company' s forecas t

revenue s (an drelate dstatistics)
. Therefore , w e wil l gran t confidentia l treatmen t t o th e revenu e an dincom e lin e item s containe dC P Air' s first-yea r operatin g expens e forecast
. Th e remainin g materia l requeste dconfidentia l treatmen t i n Exhibi t

9 i s denied
. I n doin g so , w e findthat th e applican t

ha s no t show n that

substantia l har mt o it s competitiv e positio n woul dresul t fro mpubli c disclosur e o f th e give n informatio n an dsuc h informatio n i s not

th e typ e that

i s normall y release dt o th e public
. Unde r Rul e 12 , th e Department' s rulin g o n amotio n for confidentia l treatmen t

wil l no t tak e effec t if , withi n fiv e (5 ) busines s day s afte r issuance , th e perso n requestin g confidentia l treatmen t file s apetitio n for

reconsideratio n o f

tha t decision , o r

file s astatemen t

that h e o r sh e i n goo dfait

h intend s to see k

judicia l revie w o f

th e decision
. I

f C P Ai r elect s t o petitio n th e Departmen t

a s t o thi s confidentiality determination , w e expec t that it wil l provid e a statemen t explainin g ho w th e item s fall withi n th e exception s unde r th e Freedo mo f Informatio n Ac t

an di s no t

otherwis e require dt o b e file dpublicl y b y al l applicant s for certificate s o f

publi c convenienc e an dnecessity
. Response s shal l b e du e withi n fiv e calendar day s o f th e filin g o f

suc h apetition
. I f C P Ai r elect s no t

t o fil e apetition , w e direc t that i t fil e th e informatio n note dabov e i n th e publi c docke t

i n thi s proceedin g withi n fiv e busines s day s of th e dat e of

thi s letter
. In th e meantime , a s i s th e Department' s practice , further processin g o f

your applicatio n wil l b e deferre dpendin g receip t of thi s material
. In addition , onc e thi s matte r i s satisfactoril y resolved , C P Ai r

can expec t

t o receiv e areques t

for additiona l and/o r

clarifyin g informatio n neede di n connectio n wit

h it s application
.

### I f vo u hav e an y questions , pleas e fee

l fre e
Sincerely ,

Ai r Carrie r Fitnes s Division Office o f Aviation Analysi s

cc : Docke

t DOT-OST-2010-012 6