### u.s. Departmentof Transportation OfficeoftheSecretary ofTransportation December 18, 2012
Mr. Pierre Murphy Law Offices ofPierre Murphy 1200New Hampshire AveNW Suite 800 Washington, DC 20036 1200 NewJersey Avenue, SE Washington, DC 20590

RE: Docket DOT-OST-2012-0178, Application ofScottAir, LLC for a Certificate OfPublic Convenience and Necessity

DearMr. Murphy: On October 22, 2012, Scott Air LLC, ("Scott Air") filed an application in Docket DOT-OST2012-0178 requesting authority to engage in interstate scheduled air transportation ofpersons, property, and mail. In connection with these filings, Scott Air filed a motion for confidential treatment under 14 CFR § 302.12 ("Rule 12") ofour rules to withhold from public disclosure a letterverifying funds available to the air carrier. In support ofits motion, ScottAir states thatthe information at issue meets the requirements for exemption from public disclosure under the Freedom ofInformation Act, 5 U.S.C. Section 552(b)(4). Moreover, Scott Air states that the material "consists ofpersonal financial information relating to the funding available for [Scott Air]

...that would not otherwisebe made public." 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). Information may be withheld from disclosure under 5 U.S.C. 552(b)(4) ifit is (1) commercial or financial, (2) obtained from a person outside ofgovernment, and (3) privileged or confidential (Gulf and Western Industries, Inc. v. UnitedStates, 615 F.2d 527, 529 (D.C. Cir 1979)).
There is no question that the information for which Scott Air seeks confidential treatment is financial or commercial in nature and that it was obtained from a person 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 which 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 not be 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)).2

After careful review ofthe motion, we have decided to deny confidentiality to the information for which such treatment is sought. Regarding the verification offunds letter, the Department requires all applicants to provideproofofadequate funding in orderto assess its financial fitness. It is not the Department's policy to withhold from public disclosure information an applicant's funding plan and available financial resources. Moreover, this information was also noted in the air carrier's (non-confidential) application.'
Under Rule 12, the information identified above for which confidential treatment is not granted, will be released to any person requesting it unless, within 5 (business) days from the date ofthe receipt ofthis letter, the applicant files with this office a petition for reconsideration or a written statement in good faith ofits intent to seekjudicial review ofthis decision. Please inform us if Scott Air wishes to pursue either option. Ifreconsideration orjudicial review ofthis decision is not sought, Scott Air should immediately resubmit to the appropriate docket in this proceeding, the exhibit for placementonthe publicrecord.
In the meantime, as is the Department's practice, further processing ofyour application will be deferred pending receipt ofthis material. Thank you for your cooperation in this matter. Ifyou have any questions regarding this letter or the requested information, please feel free to contact Katy O'Toole ofmy staffat (202) 366-9998 orviaemail at Catherine.O'Toole@dot.gov.

n . emo Chief, Air CarrierFitness Division Office ofAviation Analysis

cc: Docket DOT-OST-2012-0178

Mr. Troy McClanahan FAA, POI JuneauFSDO AL05

SeeApplication ofScott Air, LLC for a Certificate ofPublic Convenience and Necessity, Exhibit 7.