80 FR 33015 - Confidential Business Information Reporting Requirements-BTS' Response to Public Comments

DEPARTMENT OF TRANSPORTATION
Bureau of Transportation Statistics

Federal Register Volume 80, Issue 111 (June 10, 2015)

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, Airlines for America (A4A), an industry association representing several air carriers, filed an objection to the pending release. A4A claimed that the cost data, although twenty years old, remained sensitive and its release would result in competitive harm. Bloomberg News requested that the Department release the cost data.

[Federal Register Volume 80, Number 111 (Wednesday, June 10, 2015)]
[Notices]
[Pages 33015-33016]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14182]



[[Page 33015]]

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DEPARTMENT OF TRANSPORTATION

Bureau of Transportation Statistics

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


Confidential Business Information Reporting Requirements--BTS' 
Response to Public Comments

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

ACTION: Response to 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, Airlines for America (A4A), an 
industry association representing several air carriers, filed an 
objection to the pending release. A4A claimed that the cost data, 
although twenty years old, remained sensitive and its release would 
result in competitive harm. Bloomberg News requested that the 
Department release the cost data.

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 [email protected].

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 twenty-year period, BTS informed 
twelve air carriers that, at the close of the twenty-year period 
(October 1, 2014), the agency intended to release the information. 
Airline for America (A4A) on behalf of its members, filed objections to 
the release (see OST Docket No. 2014-0031). A4A claims that the 
information, although twenty years old, is so sensitive that each 
company would suffer ``competitive harm'' if the BTS releases the 
information.
    In its objection, A4A 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 each other's 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 Department does not use this 
data to support any policy initiatives.
    In addition, the Department determined that withholding 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)). The Department determined 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, A4A requested that ``the Department 
cease collecting the information because it serves no useful purpose, 
is burdensome to report and competitively sensitive or at the very 
least 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 an additional ten year period.
    Bloomberg News, in a letter dated April 13, 2015 stated the 
information at issue is now 20 years old. Given the passage of time, 
any interest in keeping the data confidential has presumably lessened. 
Disclosure of cost data after 20 years would seem to achieve a 
reasonable balance between transparency and maintaining the 
confidentiality of potentially sensitive commercial information.
    Based on the comments received, the BTS will grant an additional 10 
year confidentiality period while seeking regulatory language to delete 
the requirement for collecting airframe and engine cost data.


[[Page 33016]]


    Issued in Washington, DC on June 3, 2015.
William Chadwick, Jr.,
Director, Office of Airline Information, Bureau of Transportation 
Statistics.
[FR Doc. 2015-14182 Filed 6-9-15; 8:45 am]
 BILLING CODE 4910-9X-P