, ~ " -- "'''-::':"'''t, 

u.s. Depar1naent of 

Transportation 

Office of the Secretary 

of Transportation 

January 29,2010 

Mr. Mark Atwood 

Counsel for KaiserAir, Inc. 

Sher & Blackwell LLP 

1850 M Street NW, Suite 900 

Washington, D.C. 20036 

- _! t..., 

Re: Docket DOT-OST-2009-0208, Ruling on Motion 

of KaiserAir, Inc. for Confidential Treatment 

of Documents 

Dear Mr. Atwood: 

\ J \ , ,.;, '; 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

We are currently reviewing the certificate application of KaiserAir, Inc. ("Kaiser") in 

Docket DOT-OST-2009-0208. The purpose of this letter is to rule on your request for 

confidential treatment under 14 CFR 302.12 ("Rule 12") of documents filed in support of 

the referenced application. 

Specifically, Kaiser requested that the following material be withheld from public 

disclosure: 

1. Exhibit KA-9 Revised, Consolidated Financial Forecast, Narrative, and Balance 

Sheet 

2. Exhibit KA -17, Aircraft Management Agreement [Kona Associates, 

LLClKaiserAir, Inc.] 

3. Exhibit KA-18, Aircraft Management Agreement [KaiserAir, Inc.lMiami Air 

International, Inc.] 

4. Exhibit KA-19, Aircraft Sublease Agreement [KaiserAir, Inc.lMiami Air 

International, Inc.] 

5. Exhibit KA-20, Aircraft Lease Agreement [KaiserAir, Inc.INAS Investments 1] 

incorporating Aircraft Lease Common Terms Agreement [KaiserAir, Inc./GE 

Commercial Aviation Services LLC] 

6. Exhibit KA-21, 2008 Audited Consolidated Financial Statements 

In support of your request for confidential treatment of the noted documents, you stated that 

these documents include sensitive financial andlor commercial information the public 

disclosure of which would provide competitors with a potential financial advantage and 

could adversely affect Kaiser's commercial and financial interest. 
2 

Rule 12 instructs us to evaluate requests for confidential treatment in accordance with the 

standards of disclosure found in the Freedom of Information Act (5 U.s.c. section 552). 

By this standard, 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 the govemment, and (3) 

privileged or confidential. [Gu(f and Western Industries, Inc. v. United States, 615 F.2d 

527,529 (D.C. Cir. 1979)]. 

The documents identified above clearly meet the first two requirements. The remaining 

question is whether the information is privileged or confidential, that is, whether 

"disclosure of the information is likely to have either of the following effects: (1) impair the 

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

competitive position of the person from whom the information was obtained." [National 

Parks and Conservation Association v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974)] 

Furthermore, to be privileged or confidential, the information must not be of the type that is 

usually released to the public. [Gu(f and Western Industries, Inc. v. United States, 615 F.2d 

527,530)] 

After reviewing Kaiser's motion, we have decided to deny Kaiser's request for confidential 

treatment of Exhibit KA-9 Revised and Exhibit KA-21. It is not the Department's practice 

to withhold from public disclosure information regarding the applicant's current or 

historical financial information, or forecasted revenues and expenses except when the 

applicant has shown that substantial harm to its competitive position would result from 

public disclosure of the given information and such information is not the type that is 

normally released to the public. No such showing has been made. 

Further, we have decided to grant Kaiser's motion to withhold Exhibits KA-17, KA-18, 

KA-19, and KA-20 from public disclosure. The Department has, in the past, afforded 

confidential treatment to an applicant's management and aircraft lease agreements and we 

see no reason not to do so here. 

Under Rule 12, the Department's ruling on a motion for confidential treatment will not take 

effect if, within five (5) business days after issuance, the person requesting confidential 

treatment files a petition for reconsideration of that decision, or files a statement that he or 

she in good faith intends to seek judicial review of the decision. If Kaiser elects to petition 

the Department as to this confidentiality determination, we expect that it will provide a 

statement explaining how the items fall within the exceptions under the Freedom of 

Information Act and is not otherwise required to be filed publicly by all applicants for 

certificates of public convenience and necessity. Responses shall be due within five 

calendar days of the filing of such a petition. 

If Kaiser elects not to file a petition, we direct that it file the exhibits noted above in the 

public docket in this proceeding within five business days of the date of this letter. 

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. 
3 

If you have any questions, please feel free to contact Michael Price at (202) 366-9721 or by 

e-mail atMichael.B.Price@dot.gov. 

Sincerely, 

L ra yn J. Remo 

Chie , Air Carrier Fitness Division 

Office of Aviation Analysis 

cc: Docket DOT-OST-2009-0208