& US . Departmen t o f 120 0 Ne w jerse yAvenue , S E Transportatio n Washington , D C 2059 0 Off ic e O f th e Secretar

y o f Transportatio n Jul y 26 , 201 0 Mr . Gar y B . Garofal o Garofal o Goerlic h Hainbac h P C 120 0 Ne w Hampshir e Ave , N W Washington , D C 2003 6 Re : Docke t

DOT-OST-2010-015 6 Applicatio n o f

Islan dAirlines , LL C Fo r Commute r

Ai r Carrie r Authorizatio n Dear Mr . Garofalo : O n Jun e 16 , 2010 , Islan dAirlines , LL C ("Island") , file da n applicatio n i n Docke t DOT-OST-2010-015 6 requestin g that th e Departmen t

fin di t fi t t o conduc t

operation s a s a commute r ai r carrier . I n cormectio n with thi s filing , Islan dfile damotio n for confidentia l treatmen t unde r 1 4 CF R302.1 2 (Rul e 12 ) o f ou r Procedura l Regulation s for certai n informatio n th e compan y wa s providing . Th e purpos e of thi s lette r

i s t o notif

y yo u of ou r intende drulin g o n tha t motion . In it s motion . Islan drequeste dtha t th e Departmen t

withhol dth e followin g information : 1 . 1 2 month forecas t

incom e statemen t

-intrastat e operation s (Exhibi t B ) 2 . 1 2 month forecas t

incom e statemen t

intrastate/interstat e operation s (Exhibi t C ) 3 . Forecas t

B alanc e Shee t

201 1 (Exhibi t

D ) 4 . Balanc e Shee t

an dIncom e Statement s 2007-201 0 (Exhibi t K ) Islan dstate s i n it s motio n tha t "publi c disclosur e o f

Islan dAir' s detaile dfinancia l records , a s wel l a s financial forecast s an dpropose dcommercia l operation s i s no t require dt o further

th e publi c interest , an dth e publi c releas e o f thi s commerciall y sensitiv e informatio n woul dprovid e Islan dAir' s competitor s with an unfai r competitiv e advantage. " Islan dfurther note s that

i t i s a privatel y hel dairlin e an d"is no t require dt o no r

doe s it , publicl y disclos e thi s typ e o f financia l information. " Rul e 1 2 instruct s u s t o evaluat e request s for confidentia l treatmen t

b y th e standard s o f

disclosur e foun di n th e Freedo mo f Informatio n Ac t

( 5 U.S.C . sectio n 552) . Informatio n ma y b e withhel d fro mdisclosur e unde r

5 U.S.C . 552(b)(4 ) i

f it i s (1 ) commercia l o r

financial , (2 ) obtaine dfro ma perso n outsid e o f

government , an d(3 ) privilege do r confidentia l (Gul f

an dWester

n Industries , Inc . V . Unite dStates , 615F.2 d527 . 52 9 (D.C . Cir . 1979)) .Ther e i s n o questio n that th e informatio n for

whic h Islan dseek s confidentia l treatmen t i s financial o r

commercia l in natur e an dthat i t wa s obtaine dfro maperso n outsid e th e government . Th e remainin g questio n i s whethe r th e informatio n i s privilege do r confidential—whether "disclosur e o f

th e informatio n i s likel y t o hav e eithe r o f th e followin g effects : (1 ) impai r th e Government' s ability t o obtai n necessar y information ; o r (2 ) caus e substantia l harmt o th e competitiv e positio n fro mwho mth e informatio n wa s obtained " (Nationa l Park s an d Conservatio n Associatio n v . Morton , 498 ^ F.2 d765,77 0 (D.C . Cir . 1974)) . Further , t o b e privilege do r

confidential , th e informatio n mus t no t b e o f th e typ e that

i s usuall y release dt o th e publi c (Gul f

an dWester

n Industries , Inc . v . Unite dStates , 615F.2 d527,53 0 (D.C . Cir . 1979)) . W e hav e reviewe dth e materia l submitte dan dhav e decide dt o gran t confidentia l treatmen t

t o some , bu t no t all , of th e informatio n for

whic h suc h treatmen t

i s sought . With respec t

t o Exhibi t

B , thi s informatio n i s no t require din th e Department' s fitnes s evaluatio n o f Island . In case s wher e a n applican t

i s a n existin g ai r

carrier , th e Departmen t

typicall y base s it s financial fitnes s evaluatio n o n th e incrementa l cost s associate dwith th e ai r carrier' s expansio n of operations . Generally , th e financia l fitnes s tes t i s no t applie dt o expense s of

th e existin g operation . Therefore , Exhibi t B i s grante dconfidentia l treatment . Regardin g Exhibi t C , th e Departmen t

typicall y grant s confidentia l treatmen t t o a n applicant' s projecte drevenues . W e find that th e releas e of

thi s informatio n coul dcaus e substantia l harmt o th e competitiv e positio n of th e applicant . Thus , w e wil l gran t confidentia l treatmen t

t o Island' s projecte dincome . Additionally , w e wil l gran t confidentia l treatmen t

t o Island' s projecte dintrastat e profits . Further , w e wil l gran t

confidentia l treatmen t

t o th e intrastat e expense s itemize di n thi s exhibit, consisten t wit h ou r findin g i n th e abov e paragraph . Therefore , confidentia l treatmen t i s partiall y granted , t o th e incom e informatio n an dth e intrastat e portion , includin g intrastat e passenge r count , of Exhibi t C . Similarly , Exhibi t

D , Island' s summar y balanc e shee t i s partiall y grante d confidentia l treatment , solel y t o th e column s indicatin g intrastate-onl y lin e items : "Intrastat e Profits " "Ta x Distributio n Intrastate " an d"Withou t Interstate. " Concernin g Exhibi t

K , absen t

extenuatin g circumstances , it i s no t th e Department' s practic e t o withhol dfro mpubli c disclosur e an applicant' s curren t an dhistorica l financia l statement s whe n determinin g that

applicant' s financia l fitness . Thus , w e wil l den y confidentia l treatmen t o f Exhibi t K . Unde r Rul e 12 , th e informatio n identifie dabove for whic h confidentia l treatmen t i s no t granted , wil l b e release dt o an y perso n requestin g it unless , withi n 5 (business ) day s fro mth e dat e o f th e receip t of thi s letter , th e applican t

file s with thi s offic e apetitio n for reconsideratio n o r

awritte n statemen t i n goo dfait

h o f it s inten t t o see k judicia l revie w of

thi s decision . Pleas e infor mu s i f Islan dwishe s t o pursu e eithe r option . I

f reconsideratio n o r

judicia l revie w of

thi s decisio n i s no t sought . Islan dshoul dimmediatel y resubmi t t o th e appropriat e docket , th e redacte dexhibit s an d thos e whic h confidentiality ha s bee n denied , for placemen t

o n th e publi c record . In th e meantime , a s i s th e Department' s practice , further processin g of

you r applicatio n wil l b e deferre dpendin g receip t

of thi s material . Than k

yo u for you r cooperatio n i n thi s matter . I f yo uhav e an y question s regardin g thi s lette r o r th e requeste dinformation , pleas e fee l fre e t o contac t Kat y O'Tool e of

m y staf f a t (202 ) 366-999 8 o r

vi aemai l a

t Catherine.O'Toole@dot.gov .

'aness aR . Balgobi n Actin g Chief

, Ai r Carrie r Fitnes s Divisio n Offic e o f Aviatio n Analysi s

cc : Docke t

DOT-OST-2010-015 6 Mr . W . Scott

LaForge , Presiden t

an dCE O Islan dAirlines , LL C 48 0 Barnstabl e Road , Hangar 1 Hyannis , Massachusett s 0260 1 Mr . Josep h Taylo r FA A Principa l Inspecto r

for Islan dAirlines , LLC . On e Cranberr y Hil l Fourth Floor , Suit e 40 2 Lexington , M A 0242 1