Q 

US. Department of 

Transportation 

Office of the Secretary 

of Transportation 

February 24, 2012 

Mr. Shauti R. Christian 

President 

Star Marianas Air, Inc. 

P.O. Box 520461 

Tinian MP 96952 

. JV . . •- -

fMl TL^ ^ -

1 200 New Jersey Avenue, SE 

Washington, DC 20590 

Re: Docket DOT-OST-2010-0235 

Application of Star Marianas Air, Inc. 

for Commuter Authority 

Dear Mr. Christian: 

Thank you for your letter of Febmary 2, 2012, responding to the Department's concerns 

regarding Star Marianas Air, Inc. ("Star"), and its operations. We have reviewed your 

arguments puipoiling that Star is owned and controlled by U.S. citizens, and reiterate our 

position that based on the record of this case, we are unable to determine the citizenship 

of Star. 

While Star argues that it has provided the Department with more than enough 

information to lead us to definitively conclude its U.S. citizenship, evidence that 

protections are in place to prevent non-U.S. citizens from exerting influence and control 

have yet to be submitted to the Department. We do note that in an effort to address this 

concern. Star provided a copy of a formal agreement between it and Tinian Dynasty 

Hotel and Casino ("TDHC"), which, according to DOT records, is ultimately owned and 

controlled by a Hong Kong entity.' 

Upon review of the agreement, the Department identified several areas of concern and 

informed Star of these issues in a letter dated January 3, 2012. The Department's intent 

in the letter was to ensure adequate provisions are in place to protect Star and its 

operations, and was not to be construed as a criticism against the air cairier or the 

document. Because Star did not provide a revised agreement in its Febmary 2 response, 

however, our concerns as staled in our January 3 letter to Star remain unresolved. 

' 5cc Order 2007-12-11 ill I. TDHC is ;i company incorporated under the laws of the Commonwealth of 

(he Northern Marianas Islands ihai is uliimately owned and conrrolled by Tinian Dynasty Holdings 

Limiied. a Brilisli Vii-^in Island enuty. whose ownership in Uiin is majoriiy held by Mr. Michael Kwan. a 

Honi! Konj: citizen. 
In tliis regard. \vc rcqucsi ilial Star provide a revised fortnal agrccmctil bclwccn il and 

TDHC lliat satisfactorily dctnonstralcs thai actual coniiol of iKe airline lies with Stat 

wiihiti 30 days from ihe date of this letter. 

Additionally. Star submitted customer and revenue data as evidence of its freedom and 

autotiomy to provide air charter services to customers other than TDHC. Star slates in its 

letter of February 2. 2012. of 9.106 total flights flown in ihc 4"" Quarter of 201 I by the air 

canier. 3.937 Hights. or 43% of the Star flying, were not chartered by TDHC. Wc ask 

that Star provide Jiiore information regarding these non-TDHC charters. More 

specifically, how many of the non-TDHC charter Hights in this time frame were actually 

chailcrcd by TDHC customers, separate from the arrangement Star has with TDHC? 

Additionally, what was the average fare charged for these llights? 

In the meantime, as is the Dcparttiicni's practice, further processing of the application 

will be deferred pending receipt of this material. Wc note that any further submissions to 

the record in this case must be accompanied by the following certification: 

The contents of this application and the attached exhibit (s) are true and correct to 

the best of my knowledge and belief. Pursuant to Title 18 United States Code 

Section 1001. 1 \lljc iiuiiviilna! .v/i,'/////,t,' rlie application, who shaU Iw a principal 

owner, .senior officer, or inierna! coiuisel of the applicant], in my individual 

capacity and as the authorized representative of the applicant, have not in any 

manner knowingly and willfully falsified, concealed or failed to disclose any 

material fact or made any false, fictitious, or fraudulent statement or knowingly 

used any documents which contain such statements in connection with the 

preparation, filing or prosecution of the application. I understand that an 

individual who is found to have violated the provisions of IS U.S.C section 1001 

shall be fined or imprisoned not more than five years, or both. 

Thank you for your cooperation in this matter. If you have any questions regarding this 

letter or the requested information, please feel free to contact Kaly O'Toole of my staff at 

(202)366-9721. 

Sineerely, 

tratiyn J. Rcmo 

Chief. Air Canier Fitness Division 

Office of Aviation Analysis 

cc: Docket DOT-OST-2010-0235 
Mr. Tiionias Bichiii 

FA A 

Honolulu FSDO 

135 Nakolo Place 

Honolulu. HI 96819