### Murion of BEFORETHE DEPART!vlENTOF TRANSPORTATION OI7 

### FfCE OFTHE SECRETARY



### WASHlNGTON, 

### D.C.

UNITED AIR LINES, INC. 

### For Confidential Tre<Jtment Under Section 302.39 Docket OST-95-675

MOTION OF UNITED AIR UNE.S. INC. TO WITHHOLD INFORMATION

FROM PUBLIC DlSCLOSlJRE

Communications with rL:.-,}JCCl 

### to this document 

### .should be sent to:


### DAVID B. 

### OLi\USSEN Managing Counsel


### UNITED AfR LINES, INC. 77 Wt;st Wacker Drive 

### Chicago. IL60601 112-997-8069



### DATED: Octoh<:?r 17. 

## :::o!2 

## 21 IWMotion of 

### BEFORETHE DEPART!vlENT

### OFTRANSPORTATION 

### OFFICE OFTHE 

### SECRETARY WASHINGTON, D.C.



### UNITED AIR 

### LINES. INC. ForConfidential Treatment Unde-r Section 302.39 Docket OST-95-675

MOTION OF UNITED 

### AIR LINES. INC. 

### TO WITHHOLD INFORMA

### TlON

FROM PUBLIC 

### DISCLOSURE

Pursuant to 

### Rule 3l.)(e) ofthe 

### Departmentof

### Transportation. Office of**tht~** Secretary 

### Procedural Rules, United Air 

### Lines. Inc. ("United") hereby files this 

### Motion to 

### Withhold From Public Disclosurethe information contained in a sealed envelope and captioned ScheduleB-7 Airframe and Aircraft Engine Acquisitions 

### and Retiretnents and delivered to 

### the OfficeofAviation Transportation Management. This information is 

### provided pursuant to 

### Part 241 ofthe Department's Economic Regulations. 14 CFR 241. and is part ofForm41 Schedule B-7.


### 'rbe information sought to

### bt' withheld from public disclosure details United's 

### acquisition cost**~mel ~ales**  realin1tion 

### amounts with 

### respect to new anJ 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 nmfidcntial treatment under this**inst~mt** Motion is similar to and cunsistent 

### with that fix 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 Line'i. 

### Inc. I"Delta").

The information soughtto be 

### \.Vithhc'ld falls 

### within**Ex~mplion** 

### 3 (Jfthe Frcecl<Jrn of lnformati(lfl Act (.'1 U.S.C. S52(b){3)). 

### which**<:.~xcmpts** 

### from disclosure infonnation required by statute 

### w be withheld. Exemption J 

### provides that:

### provides that: ''(b) This section docs not 

### apply to matwrs that are.
..

\J) 

### spccit1cally exempted from disclosure by statute (other than section 552tb) ofthis title), provided that such statute (A) rt>quires 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 orrefers to particular types ofmatters to be withheld:"
ScctiGn 1104 

### ofthe Federal Aviation Act of I95X. as amended Ithe Act),

·•Any**J.h:~rson** 

### may make written objectionto 

### the public disclosure ofinforrnation contained in any application. report, or document filed pursuant to 

### the provisions ofthis Act

... stating the grounds for such objection. Any information contained in such app_licatiori. report. or document

... shall be witbheid from public disclosure 

### by the

... Secretary ofTransportation

... if 

### disclosure ofsuch information would

... adversely affect the competitive 

### positi,ln ufany aircarrier 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 ovvnership costs are a major cost of doing business for all**<X~J1ificated** 

### carriers. A carrier's ability 

### Lo reduce its 

### aircraft 

### mvnership costs relative to its competitors can. therefore, provide a carrier a significantcompetitive advantage. In an efkm to secure such an advantage. United applies considerable management resources to 

### trying tnreduce 

### it<> aircraft ownership cosh. This includes devoting substantial
resources to 

### trying

### w obtain 

### airframes and engines at the lowest 

### possible acquisition cost 

### and disposing ofthese assets 

### at the highest possible sales price. Moreover. the negotiations for new equipmenl are made rnorc difficult by 

### the fact !hat there are only three manufacturers 1if**birg,~** 

### jet airframes and only three oflargejetengines. However, as long as the Department makes available to the publi,: 

### United's acquisition cost for each airframe and engine it acquires and tlw 

### sales proceeds**rcalizt~d** 

### on each**~ale** 

### of**S!Il.~h** 

### equipment. llnited 

### is denied the benefit 

### ofthese efforts. 

### harming United 

### commercially.

Once Lnitccl\ 

### cost<:. arc divulged. United'.-, cnmpetitors can u-.c these**cc~st** 

### data to 

### negotiate contract price adjustments frcm the same suppliers United is using orfrom competing suppliers.**Sinn~** 

### nwn) of th,·;;c 

### nm1pcting 

### carriers arc foreign flag carri.:-rs. their**~.·quiprncnt** 

### prices will never ht• 

### reponed to the Department. lel 

### alone he made public. It 

### is nor onl:; commercially 

### damaging hut basically unfairro United and ali other

## lL.o'i, ca!JicT?. 

### tu**!\'quirt~**

' -..:., ...them to divulge to the.ir non-reporting foreign f1ag competitors the fruits oftheircompetitive efforts with manufacturers to secure the best possible purchase price

.**.S.~ Q.~.**  Order Xl-12-9.

The di.c.closure of Uniled's purchases and dispositions ofindividual aircraft and aircraft engines \vould allow compeTing foreign and domestic airlines, manufacturers ofaircraft and engines, and new and used aircraft**owner/1c~sors** ro calculate and closely track Unill-:d\ cnsts to inquire, modify. transfer or

### dispose ofits various fleets ofused models aircraft (and related used aircraft enginesJ. It would adversely affect United's competitive position by strengthening thehaxgaining position ofother airlines. including foreign airlim:s, and aircraft owner/lessors seeking to purchase aircraft equipment from manufacturers and others. They would be ableto use their knowledge of

### United's confidential purchase and sale arrangements
as starting points in**th..:~ir** own negotiations, and thus 

### improve their ability to obtain equal or mt)re favorable prices. This would lead to United's competirors, including foreign competitors. being able to enjoy lower capital costs than otherwisethe case, and to their being able 10 operate and 

### Cclrnpete more efficiently 

### v.,·irh United than 

### otherwise:

United submits that F01A**Exemption-~** is applicable, as a result ()J'the provision in Section ll04 ofthe Act requiring the withholding from public disclosure ofany information contained in a report filed pursuant to the 

### Act ifsuch disclosure \VOuld "adversely affect the competitive position 

### of any air carrier in foreign airtransponation" (49 U.S.C. App. 1504). The information for which United seeks confidential treatment under lhis instant Motion is similarto and 

### consistent with that for which the Depa1tment granted confidential treatment, in (i) a March 29. 1993 order concerning similar Schedule B-7 data filed by Delta, (ii) a November 1. 1993 orderconcerning similar Schedule B-7 data filed by American. fiiil a 

### December 29. 1993 order concerning 

### similar Schedule B-7 data filed by United, (ivl an August 23. 1994 orderconcerning similar Schedule B-7 data filed by Delta. and (v) a November 18. 1994 orderconcerning similar ScheduleB-7 data filed 

### hy United. The Department's 

### grants of confidentiality were specifically made underExemption 

### 3 (and 

### its J993 grants were made exclusively under Ex<;:'mption :i) since Delta and American, like United, cornpele \l,'ith foreign air carriers who do n<JL rile 

### such information yet are free 

### to obtain U.S, carrier information from the Department. The Department there stated:

"this lack

## or reciprocal access. the Department believes, could substantially harm the**L~ompetitive** pn..;irion ofAmerican, resulting in rheerosion ofthe U.S. international airline indu<.try."

United abo ::,ubmirs that the information sought 

### w be withheld**fall~** within t'\emption 4 from the Freedom of Information 

### Acl. 5 U.S.C.**552~b)!4).** \vhich provides protection trom disclosure for "trade secrets and comJnercial or financial information obtained**frc~m** a**pers~)n** and**pri\ileg,~d** or confidemia!:

..." tlnited 

### believes the requested information deleted from Scheduie B-7 clearly satisfy all three dements required for protection under 

### Exemption 4. Firs.t the 

### acquisiticm cost and sak" 

### realinuion mrKntnts report<

. .'d arc 

### subslantiatly !he same as neg,Jti;tkd**ht~rween** the 

### parties. \vhich purchase and sale prices are clearly financial
orcommercial in natarl:. Second. United established these**pr1c,~s** thruugh its negotimions 

### vvilh



### '

--private third pani,;s: the information was not obtained from any governmental t:'ntiries. Third. the disclosure ofsuch information would harm United's competitive position. Sec Qulf 

### & \Vestern Indus

.. Inc. _y. United_.States, 615 F.2d 527 (D.C. Cir. 1979), National Parks 

### & Conservation Ass'n v. ]\·lorton, 49X F.2d 765 (D.C. Cir. J974). SterlingDrug.**In~".J~_fr(irL~l!** Trade Comm'n. 450 F.2cl698 (D.C.Cir. 1971), The Tinken Co. v. U.S. Customs Service. c191 F.Supp. 557 (D.C.**Cir~** 1980). Braintree v. Dept. ofEner2.v. 494 F.Supp. 287. and Burke**Enen~v** Cow.\·. Department ofEnerl!v, 583 F.Supp. 507 tD. Karl. 1984). Finally. the Department's 1994 grants ofconfidentiality (i.e., its August 23. 1994 orderconcerning similar Schedule H-7/B-43 data filed by Delta. and its November 18, 1994 order**COHl~eming** sirnilar Schedule B-7 data fikd by United) were specifically rnade underboth Exemptions 3 and4.



### 'fhc Department, when deciding United's (and American's and Delta's respecrive) 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 deserves to be treated no less favorably with rL'spect to the sealed Schedule B-7 attached ht':rettL
WHEREFORE, Unitedrequests that the Department, pursuant to Rule

# :w (lf

### its Rules ofPractice and Exemptions 3 ancl4 ofthe Freedom ofInformation Act. withhold from public disclosure. the price infonnation contained in theAirframe and Aircraft 

### Engine Acquisition and Retirements items v:hich have been de.leted from columns 9, 10 and Il of the public filing of United's quarterly Form 41 Schedule B-7 report for a period ofnot less than ten years.

DATED: October 17.2012. Respectfully submitted.

David B. Olaussen Managing Counsel UNITED AIR LINES. JNC.