"^'^RTMENT OF 

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BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Motion of 

UNITED AIR LINES, INC. 

For Confidential Treatment 

Under Section 302.39 

Docket OST-95-675 

MOTION OF UNITED AIR LINES, INC. 

TO WITHHOLD INFORMATION 

FROM PUBLIC DISCLOSURE 

Communications with respect to this document should be sent to: 

DAVID B. OLAUSSEN 

Senior Counsel 

UNITED AIR LINES, INC. 

77 W. Wacker 

Chicago, IL 60601 

312-997-8069 

DATED: November 2, 2010 
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Motion of 

UNITED AIR LINES, INC. 

For Confidential Treatment 

Under Section 302.39 

Docket OST-95-675 

MOTION OF UNITED AIR LINES, INC. 

TO WITHHOLD INFORMATION 

FROM PUBLIC DISCLOSURE 

Pursuant to Rule 39(e) of the Department of Transportation, Office of the 

Secretary Procedural Rules, United Air Lines, Inc. ("United") hereby tiles this Motion to 

Withhold From Public Disclosure the infomiation contained in a sealed envelope and captioned 

Schedule B-7 Airframe and Aircraft Engine Acquisitions and Retirements and delivered to the 

Office of Aviation Transportation Management. This information is provided pursuant to Part 

241 of the Department's Economic Regulations, 14 CFR 241, and is part of Form 41 Schedule 

B-7. 

The information sought to be withheld from public disclosure details United's 

acquisition cost and sales realization amounts with respect to new and used aircraft and aircraft 

engines, each broken down by model, individual serial number, and individual purchase or sale 

prices. The information for which United seeks confidential treatment under this instant Motion 

is similar to and consistent with that for which the Department granted, in 1993 and 1994 orders, 

confidential treatment to similar Schedule B-7 data filed separately by United, American 

Airlines, Inc. ("American") and Delta Air Lines, Inc. ("Delta"). 

The information sought to be withheld falls within Exemption 3 of the Freedom 

of hiformation Act (5 U.S.C. 552(b)(3)), which exempts from disclosure information required by 

statute to be withheld. Exemption 3 provides that: 

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"(b) This section does not apply to matters 

that are. . . 

**** * 

(3) specifically exempted from disclosure by statute (other than section 

552(b) of this title), provided that such statute (A) requires that the matters 

be withheld from the public in such a manner as to leave no discretion on 

the issue, or (B) establishes particular criteria for witliliolding or refers to 

particular types of matters to be withheld;" 

Section 1104 of the Federal Aviation Act of 1958, as amended (the Act), provides 

that: 

"Any person may make written objection to the public disclosure of information 

contained in any application, report, or document filed pursuant to the provisions 

of this Act. . . stating the grounds for such objection. Any information contained 

in such application, report, or document. .. shall be withheld from public 

disclosure by the .. . Secretary of Transportation . .. if disclosure of such 

information would .. . adversely affect the competitive position of any air carrier 

in foreign air transportation." 

United considers the requested information deleted from Schedule B-7 to be 

highly sensitive and confidential. The air transportation industry, both domestically and 

internationally, has become highly competitive. Aircraft ownership costs are a major cost of 

doing business for all certificated carriers. A carrier's ability to reduce its aircraft ownership 

costs relative to its competitors can, therefore, provide a carrier a significant competitive 

advantage. In an effort to secure such an advantage. United applies considerable management 

resources to trying to reduce its aircraft ownership costs. This includes devoting substantial 

resources to trying to obtain airframes and engines at the lowest possible acquisition cost and 

disposing of these assets at the highest possible sales price. Moreover, the negotiadons for new 

equipment are made more difficult by the fact that there are only three manufacturers of large jet 

airframes and only three of large jet engines. However, as long as the Department makes 

available to the public United's acquisition cost for each airframe and engine it acquires and the 

sales proceeds realized on each sale of such equipment. United is denied the benefit of these 

efforts, harming United commercially. 

Once United's costs are divulged, United's competitors can use these cost data to 

negotiate contract price adjustments from the same suppliers United is using or from competing 

suppliers. Since many of these competing carriers are foreign flag carriers, their equipment 

prices will never be reported to the Department, let alone be made public. It is not only 

commercially damaging but basically unfair to United and al] other U.S. carriers to require them 

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them to divulge to their non-reporting foreign flag competitors the truits of their competitive 

efforts with manufacturers to secure the best possible purchase price. See, e.g.. Order 81-12-9. 

The disclosure of United's purchases and dispositions of individual aircraft and 

aircraft engines would allow competing foreign and domestic airlines, manufacturers of aircraft 

and engines, and new and used aircraft owner/lessors to calculate and closely track United's costs 

to inquire, modify, transfer or dispose of its various fleets of used models aircraft (and related 

used aircraft engines). It would adversely affect United's competitive position by strengthening 

the bargaining position of other airlines, including foreign airlines, and aircraft owner/lessors 

seeking to purchase aircraft equipment from manufacturers and others. They would be able to 

use their knowledge of United's confidential purchase and sale arrangements as starting points in 

their own negotiations, and thus improve their ability to obtain equal or more favorable prices. 

This would lead to United's competitors, including foreign competitors, being able to enjoy 

lower capital costs than otherwise the case, and to their being able to operate and compete more 

efficiently with United than otherwise. 

United submits that FOIA Exempfion 3 is applicable, as a result of the provision 

in Section 1104 of the Act requiring the witliliolding from public disclosure of any information 

contained in a report filed pursuant to the Act, if such disclosure would "adversely affect the 

competitive position of any air carrier in foreign air transportation" (49 U.S.C. App. 1504). The 

information for which United seeks confidential treatment under this instant Motion is similar to 

and consistent with that for which the Department granted confidential treatment, in (i) a March 

29, 1993 order concerning similar Schedule B-7 data filed by Delta, (ii) a November 1, 1993 

order concerning similar Schedule B-7 data filed by American, (iii) a December 29, 1993 order 

concerning similar Schedule B-7 data filed by United, (iv) an August 23, 1994 order concerning 

similar Schedule B-7 data filed by Delta, and (v) a November 18, 1994 order concerning similar 

Schedule B-7 data filed by United. The Department's grants of confidentiality were specifically 

made under Exemption 3 (and its 1993 grants were made exclusively under Exemption 3) since 

Delta and American, like United, compete with foreign air carriers who do not file such 

information yet are free to obtain U.S. carrier information from the Department. The 

Department there stated: 

"this lack of reciprocal access, the Department believes, could substantially harm the 

competitive posifion of American, resulting in the erosion of the U.S. intemafional airline 

industry." 

United also submits that the infonnation souglit to be withheld falls within 

exemption 4 from the Freedom of Information Act, 5 U.S.C. 552(b)(4), which provides 

protection from disclosure for "trade secrets and commercial or financial infonnation obtained 

from a person and privileged or confidential;..." United believes the requested information 

deleted from Schedule B-7 clearly satisfy all three elements required for protection under 

Exemption 4. First, the acquisition cost and sales realization amounts reported are substantially 

the same as negotiated between the parties, which purchase and sale prices are clearly financial 

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Ki^Aircraft - DOn2010\B7DOT 2010 3QTR.doc 
or commercial in nature. Second, United established these prices through its negotiations with 

private third parties; the information was not obtained from any governmental entities. Tliird, 

the disclosure of such information would harm United's competitive position. See Gulf & 

Western Indus.. Inc. v. United States. 615 F.2d 527 (D.C. Cir. 1979), National Parks & 

Conservation Ass'n v. Morton. 498 F.2d 765 (D.C. Cir. 1974), Sterling Drug. Inc. v. Federal 

Trade Coimn'n. 450 F.2d 698 (D.C.Cir. 1971), The Tinken Co. v. U.S. Customs Service. 491 

F.Supp. 557 (D.C. Cir. 1980), Braintree v. Dent, of Energy. 494 F.Supp. 287, and Burke.Energy 

Corp. V. Department of Energv. 583 F.Supp. 507 (D. Kan. 1984). Finally, the Department's 1994 

grants of confidentiality (i.e., its August 23, 1994 order concerning similar Schedule B-7/B-43 

data filed by Delta, and its November 18, 1994 order concerning similar Schedule B-7 data filed 

by United) were specifically made under both Exemptions 3 and 4. 

The Department, when deciding United's (and American's and Delta's respective) 

prior B-7 confidentiality motions, granted a ten-year confidential period beginning on the date 

the information was required to be filed pursuant to 14 CFR 241.22(a). United deser\'es to be 

treated no less favorably with respect to the sealed Schedule B-7 attached hereto. 

WHEREFORE, United requests that the Department, pursuant to Rule 39 of its 

Rules of Pracfice and Exemptions 3 and 4 of the Freedom of Infonnation Act, withhold from 

public disclosure, the price information contained in the Airframe and Aircraft Engine 

Acquisition and Retirements items which have been deleted from columns 9, 10 and 11 of the 

public filing of United's quaiterly Fonn 41 Schedule B-7 report for a period of not less than ten 

years. 

Respectfully submitted. 

David B. Olaussen 

Senior Counsel 

UNITED AIR LINES, INC. 

DATED November 2, 2010 

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