[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Notices]
[Pages 62318-62319]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23753]


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DEPARTMENT OF TRANSPORTATION

Bureau of Transportation Statistics

[Docket No. BTS-2004-19380]


Request for Public Comments on 14 CFR Part 241 Reporting 
Requirements

AGENCY: 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 Form 41 Schedule B-7 (Airframe and Aircraft 
Engine Acquisitions and Retirements) and Form 41 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. Based on the sensitive nature of this cost data, carriers 
have filed motions for confidential treatment and BTS has routinely 
granted confidential treatment for a ten-year 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, are still so sensitive that their release would 
result in competitive harm.
    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 December 27, 2004.

ADDRESSES: You may submit comments (identified by DMS Docket Number 
BTS-2004-19380) through the following methods:
    Web site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
    Fax: 1-202-493-2251.
    Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-0001.
    Hand Delivery: Room PL-401 on the plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. Federal 
Rulemaking Portal: Go to http://www.regulations.gov. Follow the online 
instructions for submitting comments.
    Instructions: All submissions must include the agency name and 
docket number. Note that all comments received will be posted without 
change to http://dms.dot.gov, including any personal information 
provided. You should know that 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 (Volume 65, Number 70; Pages 
19477-78) or you may visit http://dms.dot.gov.
    Docket: For access to the docket to read background documents or 
comments, go to http://dms.dot.gov at any time or to Room PL-401 on the 
plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Clay Moritz, Office of Airline 
Information, Bureau of Transportation Statistics, Department of 
Transportation, Room 4125, 400 Seventh Street, SW., Washington, DC, 
20590-0001, (202) 366-4385; [email protected].

SUPPLEMENTARY INFORMATION: Pursuant to 14 CFR part 241, certain air 
carriers are required to file BTS Form 41 Schedule B-7 (Airframe and 
Aircraft Engine Acquisitions and Retirements) and Form Schedule B-43 
(Inventory of Airframes and Aircraft Engines). These schedules contain 
cost data concerning airframes and aircraft engines. Specifically, the 
motions for confidential treatment cover the release of data pertaining 
to airframe and aircraft engine acquisitions and retirements that are 
reported in Schedule B-7 columns 9 (Cost), 10

[[Page 62319]]

(Depreciated Cost or Amortized Value), 11 (Realization) and the data 
pertaining to an annual inventory of airframes and aircraft engines 
that are reporting in Schedule B-43 columns 10 (Acquired Cost or 
Capitalized Value), 11 (Allowance for Depreciation or Amortization), 12 
(Depreciated Cost or Amortized Value), and 13 (Estimated Residual 
Value). In previous confidentiality requests, UPS and United requested 
and the BTS effectively granted a ten-year period of confidentiality 
for the cost data reported on the Form 41, Schedules B-7 and B-43.
    Subsequent to the expiration of the confidentiality period, BTS 
informed twelve air carriers that 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 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 BTS 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.

Request for Public Comments

    We are inviting public comments on the UPS and United requests and 
views on whether BTS' confidentially 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?

    Issued in Washington, DC on October 15th, 2004.
Don Bright,
Assistant Director, Office of Airline Information.
[FR Doc. 04-23753 Filed 10-22-04; 8:45 am]
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