### BEFORETHE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON,D.C. ) Application of ) ) ALASKA CENTRAL EXPRESS, INC. ) DocketDOT-OST-1996-1657 ) for reissuance ofits certificate ofpublic ) convenience andnecessitypursuantto ) 49 U.S.C. 

### §41102 ) )

MOTION OF ALASKA CENTRAL EXPRESS, INC. FOR CONFIDENTIAL TREATMENTPURSUANT TO RULE 12 Communicationswithrespect to this documentmaybe servedupon: Michael A. Bergt President ALASKA CENTRALEXPRESS, INC. 5901 LockheedAvenue Anchorage, Alaska 99502

Date: December22, 2010 Robert P. Silverberg, Esq. SILVERBERG, GOLDMAN & BIKOFF, L.L.P. 1101 30th Street, N.W. Suite 120 Washington, D.C. 20007 Tel: (202) 944-3300 Fax: (202) 944-3306 Email: rsilverberg@sgbdc.com Attorneys for ALASKA CENTRAL EXPRESS, INC. '" ..., , . '-

T'BEFORETHE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON,D.C. ) Application of ) ) ALASKA CENTRAL EXPRESS, INC. ) ) for reissuance ofits certificate ofpublic ) convenience and necessitypursuantto ) 49 U.S.C. §41102 ) ) DocketDOT-OST-1996-1657

MOTION OFALASKA CENTRALEXPRESS,INC. FOR CONFIDENTIAL TREATMENT PURSUANT TO RULE 12 Alaska Central Express, Inc. ("Alaska Central") hereby moves, pursuant to Rule 12 ofthe Department's Rules ofPractice (14 C.F.R. § 302.12), to withhold from public disclosure certain confidential financial informationbeing filed under seal herewith. In response to a letter request from the Department of Transportation, dated December 17, 2010, Alaska Central is filing concurrently in this Docket a letter containing certain additional information in support ofits November 12, 2010 application for a fitness determination and reissuance of its certificate of public convenience and necessity to permit Alaska Central to engage in scheduled interstate air transportation of passengers. Alaska Central hereby requests confidential treatment ofthe revenue and net income projections included in the forecast profit and loss statement for its proposed scheduledpassenger operations, which are being submittedto the Department in response to DOT's December 17th letter. The forecast profit and loss statement is enclosed in the attached sealed envelope.Motion ofAlaskaCentral Express, Inc. December 22,2010 Page 2 In further support ofthis motion, Alaska Central states as follows: Pursuant to 14 C.F.R. § 302.12, participants in any proceeding before the Departmentmay request that information submittedto the Department notbe disclosed to the public ifthat information falls within one ofthe exemptions from disclosure in the Freedom ofInformationAct, 5 U.S.C. § 552(b)(l)-(9) ("FOIA"). Alaska Central submits that the information for which it seeks confidential treatment falls within 

### § 552(b)(4) of FOIA ("Exemption4"). Exemption 4 protects from disclosure "trade secrets and commercial or financial information obtained from a person and privileged or confidential." Exemption 4 has been held to include "information that is not the type usually released to the public and is ofthe type that, ifreleased to the public, would cause substantial harm to the competitive position of the person from whom the information was obtained." Gulf & Western Industries, Inc. v. United States, 615 F.2d 527, 530 (D.C. Cir. 1980); see also American Airlines, Inc. v. NMB, 588 F.2d 863, 871 (2nd Cir. 1978); National Parks & Conservation Ass'n. v. Kleppe, 547 F.2d 673, 684 (D.C. Cir. 1976); Joint Application ofDelta and Virgin Atlantic, Order 94-5-42 (May 28, 1994); Joint Application of United and Lufthansa, Order 93-12-32 (December 18, 1993); Joint Application ofNorthwest and KLM, Order 93-1-11 (January 8, 1993). Exemption 4 is designed "to protect the confidentiality of information which citizens provide to their government, but which would customarily not be released to the public, and to facilitate citizens' ability to confide in their government." Burke Energy Corp. v. Dept. ofEnergy, 583 F.Supp. 507,Motion ofAlaskaCentral Express, Inc. December22,2010 Page 3 510 (D. Kan. 1984); Sterling Drug, Inc. v. Federal Trade Commission, 450 F.2d 698,709 (D.C. Cir. 1971). In order to fall within Exemption 4, the information at issue must be: (l) commercial or financial in nature; (2) obtained from a person outside the government; and (3) privileged or confidential. See Public Citizen Health Research Group v. FDA, 704 F.2d 1280, 1290 (D.C. Cir. 1983); Gulf & Western, 615 F.2d at 529. The information for which confidential treatment is sought in this motion clearly meets this three-parttest. With respect to the first prong of the test, the information for which Alaska Central seeks confidential treatment is clearly commercial or financial in nature (i.e.,

revenue and net incomeprojections contained in aprofit and loss statement). With respect to the second prong ofthe confidentialitytest, it is axiomaticthatthe information at issue has been "obtained from a person outside the government" having been submittedto the Departmentby Alaska Central. Finally, with respect to the third element ofthe test (the "confidential" nature of the information), the D.C. Circuit has held that a commercial or financial matter is "confidential" for purposes ofExemption 4 ifit would not customarily be released to the public by the person from whom it was obtained and ifdisclosure ofthe information is likely to have either ofthe following effects: (l) to impair the Government's ability to obtain necessary information in the future; or (2) to cause substantial harm to the competitive position ofthe person from whom the information was obtained. National Parks & ConservationAss'n. v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974).

### Motion ofAlaska Central Express, Inc. December22, 2010 Page 4 Alaska Central submits that the information for which confidential treatment is sought herein clearly meets the definition of"confidential." This type offorecast revenue information is highly proprietary and confidential, and would not normally be made available to the public. Nevertheless, Alaska Central is providing this confidential information to the Department so that the DOT can fulfill its statutory duty to assess the fitness ofAlaska Central to initiate scheduledpassenger operations. In addition, disclosure ofthis information would cause substantial harm to the competitive position of Alaska Central. Knowledge of such detailed financial information would permit a competitor to make strategicjudgments

- to the detriment of Alaska Central

- based on data that it would not otherwise have access to. Indeed, the Department has previously granted confidential treatment to revenue projections contained in a forecast profit and loss statement submitted by Alaska Central in connection with its prior application for passenger charter authority. See Order to Show Cause Proposing Reissuance of Certificate, Order 2007-3-25, issued March 30, 2007, page 7. Moreover, disclosure ofthis information might impair the Government's ability to obtain similar information from air carriers in the future thus hindering the Government's abilityto assess the fitness ofothercarriers.MotionofAlaska Central Express, Inc. December22, 2010 Page 5

WHEREFORE, Alaska Central Express, Inc. respectfully moves the Department ofTransportation, pursuant to Rule 12 ofthe Department's Rules ofPractice, to withhold from public disclosure the confidential financial information that is being submitted under seal withthis motion. Respectfully submitted, SILVERBERG, GOLDMAN & BIKOFF, L.L.P. Attorneys for ALA ENTRAL EXPRESS, INC. By:

Dated: December22,2010CERTIFICATE OF SERVICE

I hereby certify that I have on this 22nd day of December 2010, served the foregoing Motion of Alaska Central Express, Inc. for Confidential Treatment by firstclass mail onthe following: Hugh A. McLaughlin Manager, Flight Standards DistrictOffice Federal AviationAdministration 300 West 36thAvenue, Suite#101 Anchorage, Alaska99503 Ms. Dee Rice Principal Operations Inspector Federal AviationAdministration 300West 36thAvenue, Suite#101 Anchorage, Alaska99503 Marc Luiken Deputy CommissionerofAviation AlaskaDepartmentofTransportation& Public Facilities P.O. Box 112500 Juneau, AK 99811-2500