& 

US. Department of 1200 New jersey Avenue, SE 

Transportation Washington, DC 20590 

Off ice Of the Secretary 

of Transportation 

July 26, 2010 

Mr. Gary B. Garofalo 

Garofalo Goerlich Hainbach PC 

1200 New Hampshire Ave, NW 

Washington, DC 20036 

Re: Docket DOT-OST-2010-0156 

Application of Island Airlines, LLC 

For Commuter Air Carrier Authorization 

Dear Mr. Garofalo: 

On June 16, 2010, Island Airlines, LLC ("Island"), filed an application in Docket 

DOT-OST-2010-0156 requesting that the Department find it fit to conduct operations as a 

commuter air carrier. In cormection with this filing, Island filed a motion for confidential 

treatment under 14 CFR 302.12 (Rule 12) of our Procedural Regulations for certain information 

the company was providing. The purpose of this letter is to notify you of our intended ruling on 

that motion. 

In its motion. Island requested that the Department withhold the following information: 

1. 12 month forecast income statement -intrastate operations (Exhibit B) 

2. 12 month forecast income statement intrastate/interstate operations (Exhibit C) 

3. Forecast B alance Sheet 2011 (Exhibit D) 

4. Balance Sheet and Income Statements 2007-2010 (Exhibit K) 

Island states in its motion that "public disclosure of Island Air's detailed financial records, as 

well as financial forecasts and proposed commercial operations is not required to further the 

public interest, and the public release of this commercially sensitive information would provide 

Island Air's competitors with an unfair competitive advantage." Island further notes that it is a 

privately held airline and "is not required to nor does it, publicly disclose this type of financial 

information." 

Rule 12 instructs us to evaluate requests for confidential treatment by 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) if it is (1) commercial or financial, (2) obtained from a 

person outside of government, and (3) privileged or confidential (Gulf and Western Industries, 

Inc. V. United States, 615F.2d 527. 529 (D.C. Cir. 1979)). 
There is no question that the information for which Island 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 of the information is likely to have either of the following effects: (1) impair the 

Government's ability to obtain necessary information; or (2) cause substantial harm to the 

competitive position from whom 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 of the type that is usually released to the 

public (Gulf and Western Industries, Inc. v. United States, 615F.2d 527,530 (D.C. Cir. 1979)). 

We have reviewed the material submitted and have decided to grant confidential treatment to 

some, but not all, of the information for which such treatment is sought. 

With respect to Exhibit B, this information is not required in the Department's fitness evaluation 

of Island. In cases where an applicant is an existing air carrier, the Department typically bases 

its financial fitness evaluation on the incremental costs associated with the air carrier's expansion 

of operations. Generally, the financial fitness test is not applied to expenses of the existing 

operation. Therefore, Exhibit B is granted confidential treatment. Regarding Exhibit C, the 

Department typically grants confidential treatment to an applicant's projected revenues. We find 

that the release of this information could cause substantial harm to the competitive position of 

the applicant. Thus, we will grant confidential treatment to Island's projected income. 

Additionally, we will grant confidential treatment to Island's projected intrastate profits. 

Further, we will grant confidential treatment to the intrastate expenses itemized in this exhibit, 

consistent with our finding in the above paragraph. Therefore, confidential treatment is partially 

granted, to the income information and the intrastate portion, including intrastate passenger 

count, of Exhibit C. Similarly, Exhibit D, Island's summary balance sheet is partially granted 

confidential treatment, solely to the columns indicating intrastate-only line items: "Intrastate 

Profits" "Tax Distribution Intrastate" and "Without Interstate." 

Concerning Exhibit K, absent extenuating circumstances, it is not the Department's practice to 

withhold from public disclosure an applicant's current and historical financial statements when 

determining that applicant's financial fitness. Thus, we will deny confidential treatment of 

Exhibit K. 

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 of the 

receipt of this letter, the applicant files with this office a petition for reconsideration or a written 

statement in good faith of its intent to seek judicial review of this decision. Please inform us if 

Island wishes to pursue either option. If reconsideration or judicial review of this decision is not 

sought. Island should immediately resubmit to the appropriate docket, the redacted exhibits and 

those which confidentiality has been denied, for placement on the public record. 

In the meantime, as is the Department's practice, further processing of your application will be 

deferred pending receipt of this material. Thank you for your cooperation in this matter. If you 
have any questions regarding this letter or the requested information, please feel free to contact 

Katy O'Toole of my staff at (202) 366-9998 or via email at Catherine.O'Toole@dot.gov. 

'anessa R. Balgobin 

Acting Chief, Air Carrier Fitness Division 

Office of Aviation Analysis 

cc: Docket DOT-OST-2010-0156 

Mr. W. Scott LaForge, President and CEO 

Island Airlines, LLC 

480 Barnstable Road, Hangar 1 

Hyannis, Massachusetts 02601 

Mr. Joseph Taylor 

FAA Principal Inspector for Island Airlines, LLC. 

One Cranberry Hill 

Fourth Floor, Suite 402 

Lexington, MA 02421