BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_________________________________________ 

 ) 

Application of ) 

 ) 

STRATEGIC AIRLINES PTY LTD ) 

 ) DOCKET DOT-OST-2011- 

for a Foreign Air Carrier Permit pursuant ) 

to 49 U.S.C. § 41301 and exemption ) 

authority pursuant to 49 U.S.C. § 40109 ) 

(Australia-U.S. scheduled and charter) ) 

_________________________________________ ) 

APPLICATION OF STRATEGIC AIRLINES PTY LTD 

 FOR A FOREIGN AIR CARRIER PERMIT 

AND AN EXEMPTION

Communications with respect to this document should be sent to: 

John R. Mietus, Jr. 

Law Office of John Mietus, LLC 

6701 Democracy Blvd., Suite 300 

Bethesda, MD 20817-7500 

(202) 747-5212 - Telephone 

(240) 396-5362 - Fax 

john@mietuslaw.com 

Counsel for STRATEGIC AIRLINES 

 PTY LTD 

NOTICE: Any person may support or oppose this application by filing an 

answer and serving a copy of the answer on counsel for Strategic Airlines and 

upon persons served with this application. Answers to the exemption 

application are due June 20, 2011 and answers to the permit application are 

due June 24, 2011. 

June 3, 2011
BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

_________________________________________ 

 ) 

Application of ) 

 ) 

STRATEGIC AIRLINES PTY LTD ) 

 ) DOCKET DOT-OST-2011- 

for a Foreign Air Carrier Permit pursuant ) June 3, 2011 

to 49 U.S.C. § 41301 and exemption ) 

authority pursuant to 49 U.S.C. § 40109 ) 

(Australia-U.S. scheduled and charter) ) 

_________________________________________ ) 

APPLICATION OF STRATEGIC AIRLINES PTY LTD 

 FOR A FOREIGN AIR CARRIER PERMIT 

AND AN EXEMPTION

 Pursuant to 49 U.S.C. § 41301, Part 211 of the Department's Economic 

Regulations, and the August 26, 2005 "Streamlining" Notice in Docket OST2005-22228, Strategic Airlines Pty Ltd ("Strategic Airlines") requests that the 

Department issue a foreign air carrier permit to enable Strategic Airlines, 

consistent with the open skies, U.S.-Australia Air Transport Agreement 

signed in 2008, to operate: 

1) scheduled foreign air transportation of persons, property, and mail from 

points behind Australia, via Australia and intermediate points, to a point or 

points in the United States, and beyond; 

2) scheduled all-cargo services between any point or points in the United 

States and any point or points in any third country or countries; 

3) charter foreign air transportation of persons, property, and mail between 

any point or points in Australia and any point or points in the United States, 

and between any point or points in the United States and any point or points 

in third countries provided that, except with respect to cargo charters, such 

services constitute part of a continuous operation that includes service at a 
Strategic Airlines 

Permit and Exemption Application 

Page 2 

point or points in Australia for the purpose of carrying local traffic between 

Australia and the United States; and 

4) other charters in accordance with 14 C.F.R. Part 212. 

Pursuant to 49 U.S.C. § 40109, Strategic Airlines also requests: (1) exemption 

authority, to the extent necessary and for an initial period of two years or 

until the requested permit is issued, to enable it to hold out and provide the 

service described above; and (2) such additional or other relief as the 

Department may deem necessary or appropriate. 

 In support of this application, Strategic Airlines provides the 

information required by 14 C.F.R. § 211.20 in the Exhibits attached to this 

application and states as follows: 

1. Strategic Airlines is an Australian flag carrier headquartered at 

Brisbane Airport. It is wholly-owned by James Family Pty Ltd, an Australian 

limited company created to benefit the company's Managing Director, 

Michael James, and members of his family. Mr. James is an Australian 

citizen, as are the other beneficiaries of James Family Pty Ltd, and almost all 

the key personnel of Strategic Airlines are Australian citizens. Thus, 

substantial ownership and effective control of Strategic Airlines rests with 

Australian nationals. 

2. Strategic Airlines is fit, willing, and able to provide scheduled and 

charter foreign air transportation to and from the United States. Its key 

personnel possess substantial business and aviation experience, and it has 
Strategic Airlines 

Permit and Exemption Application 

Page 3 

the financial resources necessary to serve the United States safely and 

without undue risk to passengers. 

 3. The 2008 U.S.-Australia agreement authorizes open skies rights for 

U.S. and Australian carriers. The Department has previously granted such 

rights to Australian carriers, see, V Australia, Order 2009-9-18, and Qantas, 

Order 2008-8-17, and the Australian Embassy in Washington has designated 

Strategic Airlines under that Agreement by note dated May 10, 2011. 

4. Strategic Airlines' proposed operations, beginning with BrisbaneHonolulu scheduled service, will benefit the traveling public by providing 

additional, competitive price and service options for U.S.-Australian air 

transportation and otherwise are consistent with the public interest for the 

reasons described herein. These operations will have a limited 

environmental impact.1/ 

 

1

/ Strategic Airlines estimates that its forecast U.S. operations would not result in a net 

change in fuel consumption of 10,000,000 gallons of fuel or more annually. 

Accordingly, issuance of the requested authority will not constitute a "major federal 

action significantly affecting the quality of the human environment" within the meaning 

of section 102(2)(c) of the National Environmental Policy Act or a "major regulatory 

action" under the Energy Policy and Conservation Act, as implemented in Part 313 of the 

Department's Regulations. 

Strategic Airlines 

Exhibit 1 

INFORMATION SUPPLIED PURSUANT 

TO THE DEPARTMENT'S REGULATIONS 

 Strategic Airlines hereby supplies, in support of its application, the 

information required by the Department pursuant to 14 C.F.R. § 211.20. 

(a) Name and address of applicant; form and country of organization. 

Strategic Airlines Pty Ltd 

5-7 Boronia Road 

BRISBANE AIRPORT, 4007 

AUSTRALIA 

 

 Strategic Airlines is a proprietary company limited by shares registered 

under the Australian Corporations Act 2001. Its Australian Company 

number is 131 128 571. 

 

(b) Government air transport authority of applicant's homeland. 

Economic and security regulatory authority is exercised by: 

The Secretary 

Department of Infrastructure, Transport and Local Government 

GPO Box 594 

CANBERRA, ACT 2601 

AUSTRALIA 

Safety Regulatory authority is exercised by: 

Chief Executive Officer 

Civil Aviation Safety Authority ("CASA") 

16 Furzer Street, Philip 

CANBERRA, ACT 2606 

AUSTRALIA 

(c) Authority requested and proposed services. 

Strategic Airlines requests authority, consistent with the U.S.-Australia open 

skies agreement, to conduct: 
Strategic Airlines 

Exhibit 1 

Page 2 

1) scheduled foreign air transportation of persons, property, and mail 

from points behind Australia, via Australia and intermediate points, to 

a point or points in the United States, and beyond; 

2) scheduled all-cargo services between any point or points in the 

United States and any point or points in any third country or 

countries; 

3) charter foreign air transportation of persons, property, and mail 

between any point or points in Australia and any point or points in the 

United States, and between any point or points in the United States 

and any point or points in third countries provided that, except with 

respect to cargo charters, such services constitute part of a continuous 

operation that includes service at a point or points in Australia for the 

purpose of carrying local traffic between Australia and the United 

States; and 

4) other charters in accordance with 14 CFR Part 212. 

Strategic Airlines also requests exemption authority to the extent necessary 

to enable it to hold out and provide the service described above pending 

issuance of a foreign air carrier permit and such additional or other relief as 

the Department may deem necessary or appropriate. Strategic Airlines 

requests that the Department process this application pursuant to the 

streamlined licensing procedures set forth in the Notice dated August 23, 

2005 and issued in Docket OST-2005-22228. Therefore, Strategic Airlines 

requests that the Department issue a single order granting the requested 

exemption authority for a two-year period or until after the requested permit 

authority becomes effective, whichever occurs first, and proposing to grant 

the requested permit authority. See Jetstar Airways Pty. Limited, Order 

2010-4-18. 

 Strategic Airlines intends to begin U.S. service with an Airbus A330-200 

aircraft operating regular passenger transport (scheduled), BrisbaneHonolulu flights. 

 

(d) Names, addresses, citizenship, and experience of directors, officers, 

and key personnel of applicant. 

 The following individuals may be reached through the headquarters of 

Strategic Airlines at the address listed above, and none are related by blood 
Strategic Airlines 

Exhibit 1 

Page 3 

or marriage. Except as noted below, each person listed is an Australian 

citizen. 

Michael James – Managing Director 

Michael, a fully-rated commercial pilot, joined Strategic Aviation Pty Ltd in 

2005 after more than ten years' experience with Ansett Aviation, where he 

rose within the Head Office Operations Department. With Strategic Aviation 

he was instrumental in acquiring and managing the operation of the 

Australian Defence Force air charter contract. He became an executive 

director and equal shareholder in Strategic Aviation in 2006, helped to 

diversify the Strategic brand into other aviation businesses, including the 

applicant, and recently purchased his business partner's interests in 

Strategic-branded enterprises. 

David Blake – Chief Executive Officer and Director 

David is an accomplished pilot who has held senior management positions 

with several airlines both in Australia and Europe during his thirty years in 

the industry. His experience includes 10 years with Dan Air UK before 

working for British Airways, and he was a post holder with European 

Aviation Air Charter, which operated B747s to the United States. He is a 

British citizen. 

Clive Adams – Chief Operations Officer (COO) 

Clive started his aviation career as a pilot with Ansett Airlines in 1982. He 

has over 17,000 hours flying and was a B737 inspector and captain. 

Following his departure from Ansett Airlines after 20 years, and further 

experience operating with other carriers world-wide, he stopped flying and 

attained a senior role with the Civil Aviation Safety Association (CASA) as 

Group General Manager of the Air Transport Operations Group before 

joining Strategic Airlines as COO. 

Damien Vasta – Chief Commercial Officer (CCO) 

Damien has a Business and Law Degree from the Queensland University of 

Technology and has held a variety of senior commercial positions in the 

private and public sector. He was also involved with the Queensland 

Government’s development of policies for airline economic regulation. 

Marc Devine – Chief Financial Officer 

Marc has over 11 years' experience as a Chief Financial Officer, five of which 

were with a highly respected construction management firm in the United 

Kingdom. On his return to Australia, he took up a senior finance position 

with a health care group that had the largest privately-owned hospital group 
Strategic Airlines 

Exhibit 1 

Page 4 

in Australia. More recently, Marc has set up his own boutique business 

advisory firm that assists businesses with performance improvement, 

restructuring and management consulting. He has a degree in accounting 

which he obtained at Griffith University in Queensland.

 

David Griffiths – Head of Flight Operations 

Captain Griffiths has held a wide variety of Check, Training, and Senior 

Management positions with airlines around the globe, including operations in 

Australia, the South Pacific, the Middle East, Vietnam, Singapore, China, 

Sweden, France, Portugal, and Italy. David joined Strategic Airlines in 2009. 

Stewart Tully – Head of Network Operations 

Stewart’s aviation career started over 22 years ago with Ansett Australia, 

and he has held a variety of operational positions, most recently as the 

Network Operations Manager with V Australia. 

William Douglas Scott – Safety Manager 

Doug Scott, a fully qualified commercial airline pilot, has logged over 17,000 

total flying hours (12,000 in B737s) during his thirty years of aviation 

experience. He is also a lead investigator and a lead auditor and has headed 

the Strategic Airlines Safety Department since the airline began. 

 

Gary Hanrahan – Head of Training and Checking 

Gary has had over 15,000 hours of flying in his career, which began with 

Ansett Airlines in 1989. He has had experience throughout Asia, Europe, 

America, Africa and Australasia. He qualified as a flight instructor in March 

2001 and began at Strategic Airlines in October 2009. 

Simon Fuchon – Head of Maintenance 

Simon started his career with the Australian Defence Force in 1988 as a 

mechanical Aircraft Technician and worked his way up to be an inspector. He 

then joined BAE as an Aircraft Technical Trainer before becoming the 

Deputy Superintendent of the Quality Department. In 2008 he started with 

Qantas in the Quality and Safety Department before moving to Strategic 

Airlines. 

 (e) Persons having a substantial interest in the applicant. 

James Family Pty Ltd. owns 100% of the outstanding shares of Strategic 

Airlines. That Australian proprietary company, limited by shares, is owned 

by/for the benefit of Michael James, an Australian citizen. 
Strategic Airlines 

Exhibit 1 

Page 5 

(f) Ownership or control of other airlines or transportation companies. 

 Except for its investment in Strategic Airlines SA of Luxembourg, discussed 

below, Strategic Airlines Pty Ltd does not hold any interest in (1) any U.S. air 

carrier, (2) any other foreign air carrier, (3) any person engaged in the 

business of aeronautics, or (4) any common carrier or any person whose 

principal business is the holding of stock in, or control of, any air carrier. 

Other companies owned in common with the applicant are discussed in item 

(j) below. 

 

 

(g) Relationship between applicant and its homeland government. 

 There is no relationship, other than that occasioned by regulatory oversight, 

between Strategic Airlines and the Australian government. 

(h) Insurance coverage. 

 The carrier will extend its insurance, which meets or exceeds the 

requirements of 14 C.F.R. Part 205, to cover U.S. operations and will file OST 

Form 6411 with the Federal Aviation Administration. 

(i) Applicant's homeland operating authority. 

Exhibit 2 contains a copy of amended Australian International Airline 

License 2010/02, issued to Strategic Airlines on May 13, 2011 to conduct 

scheduled international air service between Australia and various countries, 

including the United States. Strategic Airlines also is authorized by 

Australian aviation law to operate international charters. 

 

(j) Operating history of the applicant. 

Strategic Airlines began operations less than one year ago as an Australian 

"regular public transport" (scheduled) airline. Its A330 aircraft operate 

twice-weekly international services in the Melbourne-Phuket (Thailand), 

Brisbane-Phuket, and Brisbane-Bali (Indonesia) markets. The addition of 

A320 aircraft allowed Strategic Airlines to expand its international and 

domestic Australian networks. Today, those aircraft provide multiple, 

weekly, scheduled services in the Perth-Derby, Brisbane-Gladstone, 
Strategic Airlines 

Exhibit 1 

Page 6 

Brisbane-Port Hedland, Perth-Bali, and Brisbane/Townsville-Bali markets. 

Strategic Airlines also wet-leases aircraft to Solomon Airlines for four, 

weekly, Honiara-Brisbane services. 

Strategic Airlines initially was formed to complement other air service 

operations also conducted under the Strategic brand. From 2005 to 2010, 

most such operations were conducted by an Australian affiliate, Strategic 

Aviation Pty Ltd, that was awarded the primary Global Charter contract 

with the Australian Defence Force. Michael James, who had managed that 

contract with a previous operator, joined Strategic Aviation in 2005 and in 

2006 became an Executive Director and equal shareholder of that company. 

During the ADF Global Charter operations, which now have ended, James 

and his colleagues diversified the Strategic brand; in addition to Strategic 

Airlines, they formed a U.K. air charter brokerage company and both French 

and Luxembourgeois airlines. 

Of these Strategic-branded companies, only Strategic Airlines SA of 

Luxembourg provides public air transportation services today. That company 

is 51% owned by David Blake (listed above) and 49% by Strategic Airlines Pty 

Ltd (the applicant herein), and two of the applicant’s directors/managers 

(James and Blake) participate in the management of Strategic Airlines SA as 

directors of that company. 

k) Fleet information. 

 Strategic Airlines operates three Airbus A320-200 and one A330-200 aircraft, 

all leased and Australian-registered, and it has recently committed to lease a 

second A330-200 aircraft. It intends to conduct U.S. operations with the 

A330-200 aircraft, which are leased from Swiss International Air Lines Ltd 

and registered in Australia (the first is registered as VH-SSA). 

(l) Aircraft maintenance. 

 Strategic Airlines relies on its own CASA-licensed personnel and a 

contractor, John Holland Aviation Services, to perform maintenance. Its 

maintenance program is approved by CASA and complies with annexes 1, 6 

(Part I), and 7 to the Convention on International Civil Aviation, to which 

Australia is a contracting party. The FAA has rated Australia "Category 1" 

under the IASA program. 
Strategic Airlines 

Exhibit 1 

Page 7 

(m) Agreements with other carriers. 

 No agreements with other carriers will affect the proposed U.S. services. 

 

(n) Financial data summaries. 

 As Strategic Airlines only recently began operations, it does not have 

comprehensive, historic financials. However, since Strategic Airlines began 

operations with aircraft used by Strategic Aviation as the latter was winding 

down its charter operations, the applicant is submitting as Confidential 

Exhibit A the private, June 30, 2010 financial statements of Strategic 

Aviation. These statements are submitted under seal, together with a 

request for confidential treatment under Rule 12, and include financials and 

explanatory notes for Strategic Aviation’s last two fiscal years. 

 

(o) Homeland government financial assistance. 

 None. See item (g) above. 

(p) Financial forecast. 

 Confidential Exhibit B, which has been filed under seal together with a 

motion for confidential treatment under Rule 12, provides a forecast for 

initial Strategic Airlines operations to and from the United States. 

(q,r) Bilateral agreement; homeland government policy with respect to 

U.S. carriers. 

 The open-skies U.S.-Australia agreement, discussed above, has been 

recognized by the Department in subsequent grants of authority to 

Australian carriers. Strategic Airlines has been designated by the Australian 

Government pursuant to the provisions of Article III of the 2008 U.S.-

Australia Air Transport Agreement. 

(s) Accidents or safety or tariff violations. 

 Strategic Airlines has not experienced any safety or tariff violations or fatal 

accidents. 
Strategic Airlines 

Exhibit 1 

Page 8 

(t) OST Form 4523. 

 Strategic Airlines will provide the Department, under separate cover in 

Docket OST-1995-236, three copies of OST Form 4523 (CAB Agreement 

18900) relating to the liability limitations of the Warsaw Convention 

pursuant to 14 C.F.R. Part 203. 

(*) Family assistance and passenger manifest plans. 

 Strategic Airlines will file with the Department (in Docket OST-1998-3304) 

and the National Transportation Safety Board the family assistance plan 

required by the Foreign Air Carrier Family Support Act of 1997, as amended. 

Strategic Airlines also will file with the Department (in Docket OST-1998-

3305) the passenger manifest plan required by 14 C.F.R. Part 243.


2 June 2011