UN I TED fl. 

Mr. Donald Bright 

Director of Office of Airline Information 

Bureau of Transportation Statistics 

Department of Transportation, K-25 

400 Seventh St, S.W. 

Washington, DC 20590 

Re: Motion of United Airlines, Inc. 

Dear Mr. Bright: 

(as successor by merger of 

United Air Lines, Inc.) 

For Confidential Treatment; 

Schedule B-43, Inventory of 

Airframes and Aircraft Engines 

April 18, 2013 

Enclosed are twelve copies of United Airlines Inc.'s (as successor by merger of United Air 

Lines, Inc., ("United")) Motion to Withhold Information from Public Disclosure in reference to 

United's Schedule B-43 for the year ended December 31, 2012. The original of the Motion 

together with the information requested is presently enroute to the Office of Aviation 

Information and Management today. 

Enclosures 

Sine~"'.· 

g_ 

David B. Olaussen 

Managing Counsel 
Motion of 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

UNITED AIRLINES, INC. 

(as successor by merger of 

United Air Lines, Inc.) 

For Confidential Treatment 

Docket OST-95-675 

Under Section 302.39 

MOTION OF UNITED AIRLINES, INC.. 

(as successor by merger of 

United Air Lines, Inc.) 

TO WITHHOLD INFORMATION 

FROM PUBLIC DISCLOSURE 

Communications with respect to this document should be sent to: 

DAVID B. OLAUSSEN 

Managing Counsel 

UNITED AIRLINES, INC. 

233 South Wacker 

Chicago, IL 60601 

312-997-8069 

DATED: Aprill8, 2013 
Motion of 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

UNITED AIRLINES, INC. 

(as successor by merger of 

United Air Lines, Inc.) 

For Confidential Treatment 

Under Section 302.39 

Docket OST-95-675 

MOTION OF UNITED AIRLINES, INC. 

(as successor by merger 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 Airlines, Inc. (as successor by merger of United Air Lines, 

Inc. ("United")) hereby files this Motion to Withhold From Public Disclosure the information 

contained in a sealed envelope and captioned Schedule B-43 Inventory of Airframe and 

Aircraft Engines and delivered to the Office of Aviation Transportation Management. Thi's 

information is provided pursuant to Part 241 of the Department's Economic Regulations, 14 

CFR 241, and is part of Form 41 Schedule B-43. 

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 B-43 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 Information Act (5 U.S.C. 552(b)(3)), which exempts from disclosure information required 

by statute to be withheld. Exemption 3 provides that: 
UNITED •. 

provides that: 

"(b) This section does not apply to matt~rs 

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 

withholding or refers to particular types of matters to be withheld;" 

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

"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-43 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 negotiations 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 all other U.S. carriers to require 

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

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

t 
The disclosure of United's ownership costs 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 

reduce, transfer or dispose of its various fleets of used model 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 Exemption 3 is applicable, as a result of the provision 

in Section 1104 of the Act requiring the withholding 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 December 29, 1993 order concerning similar B-43 data filed by United, (ii) an August 23, 

1994 order concerning similar B-43 data filed by Delta. 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 position of American, resulting in the erosion of the U.S. international 

airline industry." 

United also submits that the information sought 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 information obtained 

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

deleted from B-43 clearly satisfies 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 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. Third, 

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 Comm'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. Dept. of Energy, 494 F.Supp. 287, and Burke 

Energy Corp. v. Department of Energy, 583 F.Supp. 507 (D. Kan. 1984). Finally, the 

Department's 1994 grants of confidentiality (i.e., its August 23, 1994 order concerning similar 

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B-43 data filed by Delta, and its November 18, 1994 order concerning similar B-43 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 /B-43 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 deserves to be treated no less favorably with respect to the sealed B-43 attached hereto. 

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

Rules of Practice and Exemptions 3 and 4 of the Freedom of Information Act, withhold from 

public disclosure, (i) the items which have been deleted from the public filing of United's 

annual Form 41 Schedule B-43 report, respectively, for a period of not less than ten years. 

DATED: Apri118, 2013 

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Respectfully submitted, 

David 

~ B. Olaussen 

Managing Counsel 

UNITED AIRLINES, INC.