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[Federal Register Volume 80, Number 27 (Tuesday, February 10, 2015)]
[Notices]
[Pages 7525-7526]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-02665]

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DEPARTMENT OF TRANSPORTATION

Bureau of Transportation Statistics

[Docket ID Number DOT-OST-2014-0031]

Confidential Business Information Reporting Requirements

AGENCY: Office of the Assistant Secretary for Research and Technology 
(OST-R), Bureau of Transportation Statistics (BTS), DOT.

ACTION: Request for Public Comments.

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SUMMARY: Pursuant to the Department's regulations, certain air carriers 
are required to file BTS Schedule B-7 (Airframe and Aircraft Engine 
Acquisitions and Retirements) and Schedule B-43 (Inventory of Airframes 
and Aircraft Engines). Under the Department's regulations, the 
Department can withhold confidential business information if release of 
the confidential information is likely to cause substantial competitive 
harm to the entity that submitted the information to the Department. 
The BTS routinely grants, based on the sensitive nature of this cost 
data, a ten-year confidentiality period. After receiving notification 
that, upon the expiration of the ten-year confidentiality period, the 
BTS intended to release the cost data, the United Parcel Service Co. 
(UPS) and United Air Lines, Inc. (United) filed objections to the 
pending release. Both UPS and United claimed that the cost data, 
although ten years old, remained sensitive and its release would result 
in competitive harm. The cost data is now 20 years old.
    BTS is seeking public comments on the merits of the UPS and United 
positions and views on whether the BTS should increase the 
confidentiality period for certain airframe and aircraft engine cost 
data.

DATES: Comments must be received by April 13, 2015.

FOR FURTHER INFORMATION CONTACT: Jeff Gorham, Office of Airline 
Information, RTS-42, Room E34, BTS, 1200 New Jersey Avenue SE., 
Washington, DC 20590-0001, Telephone Number (202) 366-4406, Fax Number 
(202) 366-3383 or EMAIL jeff.gorham@dot.gov

Request for Public Comments

    We are inviting public comments on the UPS and United requests and 
views on whether BTS' confidentiality period should be retained or 
amended. Based on the public comments and a review of the requests to 
extend the confidentiality period, BTS will consider retaining or 
amending its confidentiality period.
    We are posing a series of questions in the hope that the public 
comments will address several issues in particular:
    (1) Do you use the airframe and aircraft engine cost data required 
under Part 241 and, if so, how do you use the data elements?
    (2) Should BTS amend or retain its confidentiality period for 
airframe and aircraft engine cost data?
    (3) Should BTS change the manner in which it collects these data 
elements?
    (4) Would it be in the public interest for BTS to grant the 
confidentiality extension requests?

ADDRESSES: You may submit comments identified by DOT Docket ID Number 
DOT-OST-2014-0031 by any of the following methods:
    Federal eRulemaking Portal: Go to http://www.regulations.gov. 
Follow the online instructions for submitting comments.
    Mail: Docket Services: U.S. Department of Transportation, 1200 New 
Jersey Avenue SE., West Building Ground Floor, Room W12-140, 
Washington, DC 20590-0001.
    Hand Delivery or Courier: West Building Ground Floor, Room W12-140, 
1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. ET, Monday 
through Friday, except Federal holidays.
    Fax: 202-366-3383.
    Instructions: Identify docket number, DOT-OST-2014-0031, at the 
beginning of your comments, and send two copies. To receive 
confirmation that DOT received your comments, include a self-addressed 
stamped postcard. Internet users may access all comments received by 
DOT at http://www.regulations.gov. All comments are posted 
electronically without charge or edits, including any personal 
information provided.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477-78) or you may visit http://DocketInfo.dot.gov.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. or the street 
address listed above. Follow the online instructions for accessing the 
dockets.
    Electronic Access: You may access comments received for this notice 
at http://www.regulations.gov, by searching docket DOT-OST-2014-0031.

SUPPLEMENTARY INFORMATION: Pursuant to 14 CFR part 241, certain air 
carriers are required to file BTS Schedule B-7 (Airframe and Aircraft 
Engine Acquisitions and Retirements) and Schedule B-43 (Inventory of 
Airframes and Aircraft Engines). These schedules contain cost data 
concerning airframes and aircraft engines. In previous confidentiality 
requests, UPS and United requested and the Department granted a ten-
year period of confidentiality for the cost data reported on the Form 
41, Schedules B-7 and B-43.
    Prior to the expiration of the ten-year period, BTS informed twelve 
air carriers that, at the close of the ten-year period (October 1, 
2004), the agency intended to release the information. In a September 
14, 2004 letter, UPS filed objections to the release and, in a 
September 23, 2004 letter, United also filed objections to the release 
(see BTS

[[Page 7526]]

Docket No. 2004-19380). Both UPS and United claim that the information, 
although ten years old, is so sensitive that each company would suffer 
``competitive harm'' if the BTS releases the information.
    In its letter, UPS maintains that the information is still 
``commercially sensitive'' based on three main points: (1) Disclosure 
of the data diminishes competition among the major aircraft 
manufacturers; engine manufacturers, and new and used aircraft owners 
and lessors who can use the commercially sensitive data to closely 
track UPS' acquisition and retirement costs; (2) disclosure of the data 
impairs competition among competing domestic and foreign airlines in 
the international arena, because United States airlines are required to 
reveal major elements of their cost structures when their foreign 
competitors are not; and (3) the Securities and Exchange Commission 
(SEC) has determined that these data should be withheld from public 
disclosure.
    In addition, UPS requested that the Department withhold the 
information under Exemptions 3 and 4 of the Freedom of Information Act 
(FOIA) (See 5 U.S.C. 552(b)(3) and 4)). Exemption 3 allows the 
withholding of information if the disclosure is prohibited by another 
statute and the statute either: ``(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;'' (see 5 U.S.C. 
552(b)(3)). UPS stated that a provision in the United States Code (see 
49 U.S.C. 40115) qualifies as an Exemption 3 statute in that the 
statute allows the Department to order certain information withheld 
from public disclosure if the disclosure would ``have an adverse effect 
on the competitive position of an air carrier in foreign air 
transportation.'' (See 49 U.S.C. 40115(a)(2)(B)).
    In light of its objections, UPS requested that ``the Department 
continue to afford confidential treatment to Form 41, Schedules B-7 and 
B-43 and that such confidential treatment be continued indefinitely or, 
at a minimum, for [another] ten (10) years.''
    United requested an extension based on the fact that prices have 
changed little since the 1992 to 1996 period. According to United, its 
``747s delivered in 1994 . . . have aircraft/engine prices which are 
the same as the prices of the later delivered 747s, except for some 
minor changes due to price escalation provisions and any minor 
configuration changes.'' United also claimed that Exemptions 3 and 4 of 
FOIA protected this information from disclosure. United also cited the 
fact that the SEC had provided a period of confidentiality for this 
information. Thus, United requested that the BTS extend its period of 
confidentiality until December 31, 2006, the expiration date for the 
SEC confidentiality period.
    Ten years have passed since the initial confidential treatment 
period, and BTS is again asking whether we should increase the 
confidentiality period for certain airframe and aircraft engine cost 
data, or release the data to the public.

    Issued in Washington, DC, on February 5, 2015.
William Chadwick, Jr.,
Director, Office of Airline Information, Bureau of Transportation 
Statistics.
[FR Doc. 2015-02665 Filed 2-9-15; 8:45 am]
BILLING CODE 4910-9X-P
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