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### u.s.Depar1naentof Transportation OfficeoftheSecretary ofTransportation January 29,2010
Mr. Mark Atwood Counsel for KaiserAir, Inc. Sher & Blackwell LLP 1850 M StreetNW, Suite900 Washington, D.C. 20036 - _! t...,

Re: DocketDOT-OST-2009-0208, Ruling onMotion ofKaiserAir, Inc. for Confidential Treatment ofDocuments
DearMr. Atwood: \ J \ , ,.;, ';
1200 NewJersey Avenue, SE Washington, DC 20590

We are currently reviewing the certificate application of KaiserAir, Inc. ("Kaiser") in DocketDOT-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 thereferenced 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 CommercialAviation Services LLC] 6. ExhibitKA-21, 2008 AuditedConsolidatedFinancial Statements
In support ofyourrequestfor confidential treatmentofthe noteddocuments, 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 couldadversely affect Kaiser's commercial andfinancial 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 orfinancial, (2) obtained from a person outsidethe govemment, and (3) privileged or confidential. [Gu(fand 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 ofthe information is likelyto have either ofthe following effects: (1) impair the Govemment's ability to obtain necessary information; or (2) cause substantial harm to the competitive position ofthe 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 orconfidential, the information must notbe ofthe type that is usually released to the public. [Gu(fand Western Industries, Inc. v. UnitedStates, 615 F.2d 527,530)]
After reviewing Kaiser's motion, we have decided to deny Kaiser's request for confidential treatment ofExhibit 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 normallyreleasedto 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 seeno reasonnotto do so here.
UnderRule 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 ofthat decision, or files a statement that he or she in good faith intends to seekjudicial review ofthe decision. IfKaiser 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 calendardays ofthe filing ofsuch apetition.
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 ofthe date ofthis letter.
Inthe meantime, as is the Department's practice, further processing ofyour application will be deferred pending receipt ofthis material. Thank you for your cooperation in this matter.3

Ifyou have any questions, please feel free to contactMichael Price at (202) 366-9721 orby e-mail atMichael.B.Price@dot.gov. Sincerely,

L ra yn J. Remo Chie ,Air CarrierFitness Division Office ofAviationAnalysis

cc: DocketDOT-OST-2009-0208