U.S. Department of Transportation 1200 New Jersey Ave., S.E. Washington, DC 20590 Office ofthe Secretary OfTransportation

December 11, 2014

Ms. RebeccaB. MacPherson Jones Day 51 LouisianaAve., N.W. Washington, DC 20001

Re: DocketDOT-OST-2014-0192 Motion of Menagerie Enterprises, Inc. d/b/a Monarch Air for Confidential Treatment ofDocuments

Dear Ms. MacPherson:

We are currently reviewing the application ofMenagerie Enterprises, Inc. d/b/a Monarch Air ("Monarch") in DocketDOT-OST-2014-0192 for commuter authority. The purpose ofthis letter is to notify you ofour intended ruling on your request for confidential treatment ofdocuments filed in support ofthis application.

On November 19, 2014, Monarch filed a motion requesting that the following material be withheld from public disclosure:

1. Exhibit 8A 2. Exhibit 8B 3. Exhibit 8C 4. Exhibit 8D 5. Exhibit 8E 6. Exhibit 8F 7. Exhibit 8G 8. Exhibit 8H 9. Exhibit 9 10. Exhibit 13 11. Exhibit 14 List ofCurrentAircraftFleet Aircraft ManagementAgreement and Operating Agreement for N118GW Aircraft Lease Agreement for N161RC AircraftManagementAgreement and Operating Agreement for N214GB Aircraft Lease AgreementforN38MG AircraftManagementAgreement and Operating Agreement for N41C Aircraft Lease Agreementfor N407W Aircraft Lease Agreement for N514DS Letter from Steve Young, Legacy Texas Bank, dated October 31, 2014 Letter from Steve Young, Legacy Texas Bank, dated October 1, 2014 Letter from Donald Jones, BB&T, dated October 6, 2014

In support ofyour request for confidential treatment ofthe specified documents, you state that the documents Mmiarch requests to withhold from public disclosure are (1) commercial or financial, (2) obtained from a person outside the government, and (3) privileged or confidential. Moreover, you state that disclosure would cause substantial harm to the competitive position of Monarch or the individual from whom the information was obtained and serve no public interest ifreleased. Further, you contend that the information in Exhibits 8A-8H, 9, 13, and 14 contain2

sensitive financial and commercial information that could be used by competitors to impede the applicant's plans to undertake the proposed air service. Lastly, you state that the information in the above exhibits is highly detailed and would not otherwise be made accessible to persons outsidethe company.
Rule 12 instructs us to evaluate requests for confidential treatment in accordance with the standards ofdisclosure found inthe Freedom ofInformation Act (5 U.S.C. section 552). By this standard, information may be withheld from disclosure ifit is "(1) commercial or financial, (2) obtained from a person outside the government, and (3) privileged or confidential." [Gulf& Western Industries, Inc. v. U.S., 615 F.2d 527, 529 (D.C. Cir. 1979).]

The information sought to be withheld from disclosure clearly meets the first two requirements. The only question, therefore, is whether the information is privileged or confidential--whether "disclosure ofthe information is likely to have either ofthe following effects: (1) to impair the government's ability to obtain necessary information in the future; or (2) to cause substantial harm to the competitive position of the person from whom the information was obtained." [National Parks and ConservationAssociation v. Morton, 498 F.2d 765, 770 (D.C. Cir. 1974).] Furthermore, to be privileged or confidential, the information must not be ofthe type that is usually releasedto thepublic. [Gulf& Western Industries, Inc. v. U.S., supra, 615 F.2d at 530.]

Absent extenuating circumstances, it is not the Department's practice to withhold from public disclosure information regarding an applicant's current or historical financial condition, pre-operating cost forecasts, proposed operating plans and related statistics, first-year operating cost forecasts, and forecast balance sheets reflecting these forecasts. When requested, however, the Department will generally grant confidential treatment to information pertaining to a company's forecast revenues (and related statistics). Itis also our practice to grant confidential treatment to specific agreements between an applicant and vendors, potential customers, etc. Under the circumstances, our decision as to confidential treatment with respect to Monarch's application is as follows:

1. With respect to Exhibit 8A, we have decided to partially grant confidential treatment to the list ofcurrent aircraft fleet. Specifically, we grant confidentiality to the name ofthe lessees and their addresses.

2. With respect to Exhibit 8B, 8C, 8D, 8E, 8F, 8G and 8H, we have decided to grant confidential treatment. The Department has, in the past, afforded confidential treatment to agreements such as these and we see no reasonnotto do so here.

3. With respect to Exhibit 9, letter from Steve Young, Legacy Texas Bank, dated October 31, 2014, the Department finds that the information contained in this exhibit is not needed to make a fitness determination. Thus, we grant confidential treatment to Exhibit 9.

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4. With respect to Exhibit 13, letter from Steve Young, Legacy Texas Bank, dated October 1, 2014, we have decided to deny confidential treatment. Exhibit 13 contains the financial informationnecessaryto determine Monarch's fitness.

5. With respect to Exhibit 14, we have decided to partially grant confidential treatment. Specifically, we grnnj: confidentialitytothe bank accountnumbermentionedinthe letter.

Tothe extentthatconfidentialtreatment is not specifically granted above, itis denied.

Under Rule 12, a Department ruling on motions for confidential treatment will nottake 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 seekjudicialreview ofthe decision. IfMonarch elects to petitionthe Department as to this confidentiality determination, we expect that it will provide a statement explaining how the item falls within the exceptions under the Freedom of Information Act and is not otherwise required to be filed publicly by all applicants for commuter authority. Responses shall be due withinfive calendar days ofthe filing ofsucha petition. ·
IfMonarchelects notto file a petition, we directthat it file the exhibits noted above inthe public docket inthis proceeding within five business days ofthe date ofthis letter. Inthe meantime, as is the Department's practice, further processing of your application will be deferred pending receipt ofthis material. Thankyoufor your cooperationinthis matter.

Ifyouhave any questions regardingthis letter, please feel free to contact me or ShabuThomas of my staffat (202)-366-9721.

a Chie , Air CarrierFitness Division Office ofAviationAnalysis

cc: DOT-OST-2014-0192



### Mr. CameronBaker, FAA POIfor Menagerie Enterprises, Inc. d/b/a MonarchAir