U.S.Departmentof Transportation OfficeoftheSecretary ofTransportation

AprilS, 2011

Mr. EdwardP. Faberman WileyRein LLP 1776 K Street NW Washington, DC 20006 1200 NewJersey Avenue, SE Washington, DC 20590

Re: Docket DOT-OST-2011-0032, Application of

DearMr. Faberman: Twin Cities Air Service, LLC, for Commuter Air CatTier authority

OnFebruary22,2011, Twin Cities AirService, LLC ("Twin Cities") filed an application in Docket DOT-OST-2011-0032 requesting that the Department issue it commuter air can'ier authority. Twin Cities also requested confidential treatment under 14 CFR 302.12 ("Rule 12") ofour Procedural Regulations for certain information provided. The purpose ofthis letteris to rule on that motion and to explainourpolicyregarding Rule 12 submissions.

In support ofTwin Cities' request for confidential treatment, the applicant stated that these documents include sensitive financial and commercial information, including financial information for activities other than the projected nights, the public disclosure of which would cause substantial harm to the competitive position ofTwin Cities or the individual from whom the information was obtained. Specifically,Twin Cities requests that the Departmentwithhold the following information:

ExhibitTC-12: Financial Statements and Supplementary Information for the Years Ended December31, 2005 through December31, 2009 ExhibitTC-13: Twin Cities' Forecast Balance Sheet ExhibitTC-14: Twin Cities' Capital Estimate and Description ExhibitTC-14A: Credit letterfrom Machias Savings Bank ExhibitTC-14B: True and correct copy of Twin Cities' Commercial Loan Security Agreement with NortheastTradingCorporation ("NortheastTrading") ExhibitTC-14C: True and correct copy of Twin Cities' Commercial Line of Credit Agreement and Promissory Notewith NortheastTrading Exhibit TC-14D: True and correct copy ofthe Guaranty in favor ofNortheast Trading2

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. [Guif"and Western Industries, Inc. v. UnitedStates, 615 F.2d 527,529 (D.C. Cir. 1979)J.

There is no question that the information for which cOQ.fidential treatment is sought is financial or commercial in nature and that it was obtained from a person outside the government. The remaining question is whether this infolmation is privileged and confidential- whether "disclosureofthe information is likelyto have the following effects: (1) impair the Government's ability to obtain necessary information; or (2) cause substantial harm to the competitiveposition ofthe person from whom the information was obtained" (See National Parks and ConservationAssociation v. Morton, 498 F.2d 765,770 (D.C. Cir. 19740)). Further, to be privileged or confidential, information must not be the type that is usually released to the public (See Gulfand Western Industries, Inc. v. United States, 615 F.2d 527, 529 (D.C. Cir. 1979)).

With respect to exhibits TC-14B, TC-14C, and TC-14D, we will grant confidentiality to these exhibits in their entirety. However, Twin Cities must provide a summary of these documents for the public record, including balances available for lines of credit. With respect to the remaining exhibits, confidential treatment is denied. It is not the Department's practice to withhold from public disclosure information regarding the applicant's current, historical, or forecasted financial information except when the applicant has 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 normallyreleased to the public. No such showinghas beenmade.

UnderRule 12, the Department's ruling on amotionfor confidential treatment will not take effect if, within five (5) business days after issuance, the person requesting confidential treatment files a petition for reconsideration ofthat decision, or files a statement that he or she in good faith intends to seekjudicial review ofthe decision. IfTwin Cities 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 ofInformation Act and is not otherwise required to be filed publicly by all applicants for commuter authority. Responses shall be due within five calendar days ofthe filing ofsuch
apetition.

If Twin Cities elects not to file a petition, we direct that it file the information denied confidential treatment in the public docket in this proceeding within five business days of the date ofthis letter.

In the meantime, as is the Department'spractice, further processingofyour applicationwill be deferred pending receipt ofthis material. In addition, once this matter is satisfactorily resolved, Twin Cities can expect to receive a request for additional and/or clarifying informationneeded in connection with its application.3

Thank you for your cooperation in this matter. Ifyou have any questions, please feel free to contactAleta Best at (202) 366-9721 orbye-mail at aleta.best@dot.gov.

Lall' n. Remo, Chief Air Carrier Fitness Division Office ofAviationAnalysis

cc: DocketDOT-OST-2011-0032

Mr. Nathan Humphrey President Twin Cities Air'Service, LLC 81 Airport Drive Aubul11, ME 04210

Mr. Gary Readio AviationSafety Inspector FAA Portland FSDO-65 Portland, ME 04102

Ms. KatrinaA. Skowron WileyRein LLP 1776 K Street NW**W~shington,** DC 20006