## u.s.Departmentof Transportation OfficeoftheSecretary ofTransportation July29,2010 Mr. JohnR. Mietus, Jr. Counsel for DynamicAirways, LLC d/b/aDynamicAviation 6701 DemocracyBoulevard, Suite 300 Bethesda, MD 20817-7500 Re: DocketDOT-OST-201O-0058 1200 NewJersey Avenue, SE Washington, DC 20590

MotionofDynamicAirways, LLC d/b/aDynamicAviation forConfidential TreatmentofDocuments DearMr. Mietus: We are currently reviewing the application ofDynamic Airways, LLC d/b/a Dynamic Aviation ("Airways"), in DocketDOT-OST-201O-0058 for a certificate of public convenience and necessity under 49 U.S.c. § 41102 to engage in interstate charter air transportation ofpersons, property, and mail. The purpose of this letter is to notify you of our intended ruling on your request for confidential treatmentofdocuments filed in supportofthis application. On March 5, 2010, Airways filed a motion requesting that the following material be afforded confidentialtreatment under 14 CFR § 302.12 ("Rule 12"): 1. ExhibitA

- FAAcertificatenumbers ofAirways' keypersonnel. 2. ExhibitB

- Financial statements ofDynamicAviation Group, Inc. ("Group") for calendar year 2008 (which also contains informationfor 2007) and 2009. 3. Exhibit C

- Third-partyverification from PNC Bank ofcertain informationrelating to the Group lineofcreditthat is availablefor Airways' use. 4. ExhibitD

- Two unredacted pages from Airways' applicationthat showrevenue forecasts for its first full year ofoperations and its forecast operatingresults, which containcertain sensitive salaryand revenue assumptions. Additionally, on June 22, 2010, Airways filed a motion requesting that the following material alsobe affordedconfidentialtreatment underRule 12: 1. Revised Exhibit A

- FAA certificate numbers, including Airways' new Vice President of Operations and ChiefPilot. 2. Exhibit E

- An agreement by which Dynamic JetLease, LLC was sold by Dynamic Airways, LLC d/b/aDynamic Aviation to Messrs. Karl D. and Michael A. Stoltzfus.2 

### 3. Exhibit F (Updated Exhibit C)

- Updated third-party verification from PNC Bank of certain informationrelating to the Group line ofcredit that is available for Airways' use. In support of your request for confidential treatment, you state that the documents Airways requests to withhold from public disclosure are (1) 

### commercial or financial; (2) obtained from a person outside the govel11ment; and (3) privileged or confidential. Further, you state that the release of such information would cause material competitive harm to Airways by revealing confidential information about Airways' cost structure, its methods of doing business, and information relating to its shareholders. You also add that the documents that Airways requests to be withheld from public disclosure are the kinds of information that are typically afforded confidentialtreatment in commercial contexts. 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. § 

### 552). By this standard, information may be withheld from disclosure if it is "(1) 

### commercial or financial, (2) obtained from a person outside the govel11ment, and (3) privileged or confidential." [Gu(f& Western Industries, Inc. v. U.S., 

### 615 F.2d 527,529 (D.C. Cir. 1979).1 The information sought to be withheld from disclosure clearly meets the first two requirements. The only question, therefore, is whether the information is privileged or confidential--whether "disclosure ofthe information is likely to have either ofthe following effects: (1) 

### to impair the govel11ment's ability to obtain necessary information in the future; or (2) to 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 confidential, the information must not be of the type that is usuallyreleased to the public. [Gulf& Western Industries, Inc. v. U.S., 

### supra, 615 F.2d at 530.] We have decided to grant in its entirety Airways' March 5 motion to withhold from public disclosure Exhibits A, 

### B, C, and D. With respect to Exhibit A, 

### the Department has granted confidential treatment to similarinformationin thepast and we seeno reasonnotto do so here. Withrespect to Exhibits BandC, while it is not the Department's practiceto withholdhistorical financial information ofrelevant corporations, our review ofthe financial documents submitted on behalf of Group show that both Group and Airways will have available to each air carrier capital equal to or in excess ofour capital reserve requirements. Additionally, public disclosure of such information could potentially cause material harm to Group by allowing competitors to readily calculate sensitivecorporate information. With regards to Exhibit D, while the Department generally does not withhold an applicant's projected income statement from public disclosure, we have granted confidential treatment to projected income statements in cases where the applicant has supplied the public record with comparable expense forecasts. We note that Airways supplied the public docket established for this proceeding with such expense forecast in its initial application, and therefore see no reason no to afford confidential treatment to the applicant's revenue forecasts and its forecast operating results.3 We have decided to grant in its entirety Ainvays' lune 22 motion to withhold from public disclosure Exhibits A, E, and F. With respect to Exhibit 

### A as noted earlier. the Department generally grants confidential treatment to similar information in the past and we sec no reason not to do so here. With respect to Exhibit E. we agree that both letLease. LLC and Airways are private companies; the agreement contains private. financial and commercial information concerning an intra-group transaction. Disclosure of such information could potentially cause material harm to Group's competitive position, and would disclose financial information related to its individual shareholders. Additionally. the information contained in that agreement is not relevant to Airways' fitness determination. With respect to Exhibit F, as noted above. our review of the financial documents submitted on behalf of Airways' relevant corporation show that both it and Group will have available capital equal to or in excess of our capital reserve requirements. Additionally, the disclosure of this infOlmation could potentially cause material harm to Group by allowing competitors to readily calculate sensitivecorporate information. Ifyou have any questions regarding this letter, please feel free to contact Scott Faulk ofmy staff at (202) 366-9721.

anessaR. Bagohin

# ~ ActingChief, AirCarrierFitness Division OfficeofAviationAnalysis

cc: DocketDOT-OST-2010-0058 Mr. Tony Bernhardt Principal Operations Inspector FAAGreensboro FSDO-39 6433 BryanBlvd. Greensboro, NC 27409