U.S. Department of Transportation Office ofthe Secretary ofTransportation

May 15, 2015

Mr. Vaughn J. Crawford DirectorofOperations Altius Aviation, LLC 113 TuskegeeRoad Syracuse,NY 13211 Re: DocketDOT-OST-2015-0064 1200 NewJerseyAvenue SE Washington DC 20590

Application ofAltiusAviation, LLC for CommuterAir CarrierAuthority DearMr. Crawford: On March 25, 2015, Altius Aviation, LLC ("Altius"), filed an application in Docket DOT-OST2015-0064 requesting authority to conduct scheduled passenger operations as a commuter air carrier under 49 U.S.C. § 41738. In connection with this filing, Altius filed a motion for · confidential treatment under 14 CFR § 302.12 (Rule 12) of our Procedural Regulations for certain information the company was providing. The purpose ofthis letter is to rule on that motion. Also, we have completed our initial review ofAltius's application and this review has revealed the need for additional and/or clarifying information before we can complete the processingofAltius' application. Altius requests confidential treatment of (1) the personal financial statement of Mr. Henry Laughlin, Altius' majority shareholder, stating his account balance with his financial institution, and (2) a letter from Mr. Laughlin's financial advisor confirming the validity ofthe financial statement. Altius states that this information warrants confidential treatment because it is (1) commercial or financial, (2) obtained from a person outside of the government, and (3) privileged and confidential. Moreover, Altius states that release ofthis information would cause substantial harm to the competitivepositionofAltius and/orthe individual from whomthe information was obtained. Further, Altius contends that the two personal financial documents contain account balance and account numbers which should not be publically disclosed due to the sensitive nature oftheinformation. Rule 12, instructs us to evaluaterequests for confidential treatmentbythe standards ofdisclosure found in the Freedom ofInformation Act (5 U.S.C. § 552). 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 ofgovernment, and (3) privileged or confidential (Gulfand Western Industries, Inc. v. UnitedStates, 615 F.2d 527, 529 (D.C. Cir. 1979)).

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There is no question that the information for which Altius seeks confidential treatment is financial orcommercial in nature and that it was obtained from aperson outside the government. The remaining question is whether the information is privileged or confidential--whether "disclosure ofthe information is likely to have either ofthe following effects: (1) 

### impair the Government's ability to obtain necessary information; or (2) cause substantial harm to the competitive position ofthe person from whom the information was obtained" (National Parks and Conservation Association v. Morton, 

### 498 F.2d 765, 770 (D.C. Cir. 1974)). Further, to be privileged or confidential, the information must notbe ofthe type that is usually released to the public (Gulf and Western Industries, Inc. v. UnitedStates, 

### 615 F.2d 527, 530 (D.C. Cir. 1979)). We have reviewed the information for which Altius requests confidentiality and agree with the company that public disclosure ofsuch information could potentially harm the individual from whom the information was obtained. Moreover, it has been the Department's practice to grant confidentiality to such personal financial documents and we see no reason not to do so in this case. Therefore, we grant confidential treatment to the two documents for which Altius has requested confidentiality. With respect to Altius's application for commuter authority, in evaluating an applicant's financial fitness, the Department generally asks that the applicant have available to it resources sufficient to cover all pre-operating costs and any negative working capital balance, plus a working capital reserve equal to the operating costs that would be incurred in three months of normal operations. 1 

### Altius expects to incur pre-operating costs of $940,000. Plus, Altius's balance sheet as ofDecember 31, 2014, shows the company having negative working capital of $180,030.2 

### Additionally, Altius expects to incur first-year operating expenses of$10.4 million, one quarter ofwhich is $2.6 million. Thus, in order to meet the Department's financial fitness test, Altius would needto showthat ithas access to atotal ofapproximately $3.7 millionto meet the Department's financial fitness requirements.3 

### As mentioned above, in support ofits application, Altius provided third-party verification ofthe funds that Altius' majority shareholder, Mr. Henry Laughlin, has on deposit with his financial institution. Although our review ofthe documents submitted demonstrate that Mr. Laughlinhas access to financial resources sufficientto meetthe Department'srequirements, we require a letter from Mr. Laughlin committing to Altius for use·in its operations the financial resources necessaryto meettheDepartment'sfinancial fitness test, thatis, $3.7 million as indicatedabove. I ask that you respond fully to this request within 30 days ofthe date ofthis letter. You may upload your response via the web atwww.regulations.gov, or you may mail your response to

Because projected expenses during the first several months ofoperations frequently do not include all ofthe costs that will be incurredduring a "normal" period ofoperations, it is our practice to base ourthree-month standard on one quarter ofthe first year's operating cost forecast. In calculating available resources, projected revenues may notbe used. 2 On Page 80 of the application, Altius indicates that it has negative working capital of $115,417 as of December 31, 2014. However, the December 31, 2014, balance sheet submitted with Altius' application shows the company having current assets of$274,451 and current liabilities of$454,481, leaving the company with negative working capital of$180,030. 3 The $3.7 million financial fitness requirement includes $940,000 in pre-operating expenses, $180,030 in negative working capital, and $2.6 million for ourthree-month standardfitness requirement3

U.S. Department of Transportation Dockets, West Building, Ground Floor, (M-30, Room W12-140), 1200 New Jersey Avenue SE, Washington, D.C. 20590. In either case, your response shouldbefiled inDocketDOT-OST-2015-0064. As is the Department's practice, further processing of Altius's application will be deferred pending receipt of this material. In addition, please remember that Altius should promptly provide the Department with any information regarding changes it may undergo in areas affecting its fitness (i.e., management, operating plans or financial condition, compliance disposition, or ownership) while its applicationis underreviewbythe Department. Thank you for your cooperationinthis matter. Ifyou have any questions regarding this letter or the requested information, please feel free to contact Vanessa Balgobin of my staff at (202) 366-9721 orvanessa.balgobin@dot.gov.

Chief, Air CarrierFitness Division Office ofAviationAnalysis Enclosure

cc: DOT-OST-2015-0064 Mr. Patrick 0 'Neill Principal Operations Inspector Federal AviationAdministration