Exemption No. 10437 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

FEDERAL AVIATION ADMINISTRATION 

WASHINGTON, DC 20591 

 

In the matter of the petition of 

 

NORTH AMERICAN AIR 

CHARTER, INC. Regulatory Docket No. FAA-2011-1081

 

for an exemption from Special 

Federal Aviation Regulation No.77 

of Title 14, Code of Federal 

Regulations 

 

 GRANT OF EXEMPTION 

 By letter dated October 10, 2011, Mr. Jonathan D. Ross, Director of Operations, North 

American Air Charter, Inc. (NAAC), 90 Arrival Avenue, Suite 20-LI MacArthur Airport, 

Ronkonkoma, New York 11779, petitioned the Federal Aviation Administration (FAA) on 

behalf of NAAC for an exemption from Special Federal Aviation Regulation (SFAR) No. 77 

of Title 14, Code of Federal Regulations (14 CFR). The proposed exemption, if granted, 

would permit flights between points outside of Iraq and the Erbil International Airport 

(ORER) under NAAC’s part 135 certificate. 

The petitioner requests relief from the following regulation:

SFAR No.77 – Prohibition Against Certain Flights Within the Territory and Airspace of 

Iraq. Paragraph 2, Flight prohibition, prescribes that no person may conduct flight 

operations over or within the territory of Iraq except as provided in paragraphs 3 and 4 of 

this SFAR or except as follows: 

(a) Overflights of Iraq may be conducted above flight level (FL) 200 subject to the 

approval of, and in accordance with the conditions established by, the appropriate 

authorities of Iraq. 

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(b) Flights departing from countries adjacent to Iraq whose climb performance will not 

permit operation above FL 200 prior to entering Iraqi airspace may operate at altitudes 

below FL 200 within Iraq to the extent necessary to permit a climb above FL 200, 

subject to the approval of, and in accordance with the conditions established by, the 

appropriate authorities of Iraq. 

Paragraph 3, Permitted operations, prescribes that this SFAR does not prohibit persons 

described in paragraph 1 from conducting flight operations within the territory and airspace 

of Iraq where such operations are authorized either by another agency of the United States 

Government with the approval of the FAA or by an exemption issued by the Administrator. 

The petitioner supports its request with the following information: 

The petitioner states that this request applies to only N-registered aircraft N4T and 

N917R, both of which are BD-700-1A10 aircraft which will be operated by NAAC in 

accordance with 14 CFR part 135. The aircraft will be operated by airmen who hold 

FAA-issued airman certificates. The aircraft will be used to transport key executives 

and others in furtherance of the business interests of the owner of aircraft N4T in a 

firm that is exploring and developing oil fields located in the Kurdistan region of Iraq. 

NAAC initially expects that operations will be conducted to and from Erbil 

International Airport in Iraq on the average of twice monthly, although the frequency 

of operations could differ depending on business conditions. 

NAAC states that its operation of aircraft within Iraq is in the public interest because 

the Government of the United States has a long-term national interest in the 

development of the economy of Iraq. NAAC further states that oil is the major source 

(90%) of foreign exchange earnings for Iraq and that the Government of Iraq has 

embarked on a program to increase oil production and to export oil to support its 

growing revenue needs. The owner of the aircraft is seeking to assist those in Iraq that 

are pursuing oil exploration and development. NAAC submits that, to the extent 

increasing oil-related revenues will allow for greater stability of the Government of 

Iraq, and the Middle East region, the national and security interests of the 

United States will be furthered by approval of these flight operations. 

NAAC states that the aircraft owner and NAAC have made arrangements to ensure 

that the aircraft, the flight crew, and any ground staff are adequately protected while in 

Iraq. NAAC asserts it will contract with Palm Aviation, a Dubai-based firm 

experienced in obtaining local Iraq flight permissions and providing necessary ground 

handling and communications, to support the proposed operations. Palm Aviation will 

be the primary supplier to NAAC of all necessary aeronautical weather and airport 

assessment information, as well as Notice to Airman (NOTAMS). Threat assessments 

will be communicated to NAAC and its flight crews through Palm Aviation’s Erbil 

office. NAAC will inquire about all possible threat assessments prior to each 
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operation into and out of Iraq. To supplement the Palm Aviation supplied 

information, NAAC will also query its other international handler, Universal Weather 

and Aviation, which will provide threat assessment information and other intelligence 

for the Iraq area, in addition to airport assessments. 

NAAC will also ensure that the aircraft used to operate to and from the Erbil airport 

will be free of any exterior markings except the FAA aircraft registration number. 

NAAC states that its flight crew will operate the aircraft to and from Iraq in 

accordance with threat assessment and all local operating rules and procedures to exit 

the SFAR area expeditiously and thereby minimize hazards to the aircrew and aircraft. 

Finally, as a condition of approval of this request, NAAC states that it is willing to 

provide a flight update to the FAA Washington Operations Center Complex (WOCC) 

when the aircraft enters and leaves Iraqi airspace on each flight operated under the 

authority of paragraph 3 of the SFAR. 

 A summary of the petition was published in the Federal Register on October 31, 2011, 

(76 FR 67246). No comments were received. 

The FAA’s analysis is as follows:

The FAA has considered fully the petitioner’s request and supporting information and 

finds that the circumstances presented by the petitioner justify a grant of exemption. 

For the following reasons, the FAA finds the petitioner has sufficiently shown that a 

grant of exemption for operations between points outside of Iraq and Erbil International 

Airport (ORER)1 would be in the public interest and that a level of safety equivalent to 

that provided by the SFAR would be maintained. 

Public Interest: 

NAAC’s clients are seeking to pursue commercial opportunities in Iraq, which will aid 

in the economic development of Iraq. The Erbil International Airport in northern Iraq 

has supported non-U.S. air carrier operations for a number of years without incident. 

There are currently fourteen foreign airlines, including Lufthansa and Austrian, 

operating approximately nine departures per day from ORER to the Ankara Flight 

Information Region. Because of the prohibitions imposed by SFAR 77, U.S. operators 

must contract with foreign operators or use foreign registered aircraft to conduct 

operations in Iraq. A grant of exemption in this instance allows a U.S. operator to 

operate from points outside Iraq directly into Erbil International Airport without 

incurring the cost of contracting with a foreign operator or using foreign-registered 

aircraft. Based largely on these changes in the operational environment affecting U.S. 

civil aviation operations and potential benefits to U.S. operators and their customers 

 

1

 We construe NAAC’s request for an exemption to conduct operations between points outside of Iraq and Iraq 

generally through the Erbil airport” as a request to conduct operations to Erbil airport only, as described in the 

proposed routing information submitted to the FAA on October 10, 2011, and as limited by the conditions and 

limitations included in this grant of exemption. 
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through improved access to ORER, the FAA has determined that NAAC’s request for 

exemption is in the public interest. 

Equivalent Level of Safety: 

After reviewing a national-level threat assessment and evaluating risk exposure to U.S. 

civil aviation, the FAA has determined that the proposed operations, to the extent that 

they are between points outside of Iraq and ORER, may be conducted with a level of 

safety equivalent to that provided by SFAR 77, based on the following conditions 

offered by the petitioner, in addition to the conditions and limitations that are listed 

following the FAA’s decision. 

1. The aircraft will have no U.S. marking except for the FAA registration numbers 

N4T and N917R. 

2. NAAC will obtain timely threat information from Palm Aviation, experienced in 

obtaining local Iraq flight permissions, providing necessary ground handling and 

communications. 

3. NAAC will obtain supplementary threat information from Universal Weather and 

Aviation. 

4. NAAC flight crewmembers will operate the aircraft with the intent to minimize any 

security and/or safety risk to the maximum extent feasible and exit the SFAR area 

expeditiously to minimize hazards to the aircrew and aircraft. 

The FAA’s Decision: 

 In consideration of the foregoing, I find that a grant of exemption is in the public interest. 

Therefore, pursuant to the authority contained in 49 U.S.C. §§ 40113 and 44701, delegated to 

me by the Administrator, North American Air Charter, Inc. is granted an exemption from 

14 CFR part 91, SFAR 77 to the extent necessary to allow NAAC to conduct part 135 

operations with aircraft N4T and N917R only between points outside of Iraq and the Erbil 

International Airport (ORER), subject to the conditions and limitations listed below, in 

addition to the conditions offered by the petitioner in the Equivalent Level of Safety section 

above. 

Conditions and Limitations: 

1. NAAC must comply with the conditions and limitations set forth in Operations 

specification A3202

. 

2

 See also the interpretation of 14 CFR part 91, SFAR 77 published in the Federal Register on April 23, 2004, at 

69 FR 21953-21954. 
5

2. All flights under this exemption will be conducted by pilots employed by NAAC who 

are U.S. airmen current and qualified under the applicable requirements of 14 CFR 

part 135.

3. The NAAC pilots and NAAC will be responsible for flight planning, and securing all 

necessary overflight permissions from the appropriate authorities of countries on the 

planned route.

4. The flight crew must carry a copy of this grant of exemption on all flights operated 

under this exemption. 

5. Operations under this exemption are not eligible for coverage under a premium 

aviation insurance policy issued by the FAA under chapter 443 of title 49, U.S. 

Code. The operator will not request, and the FAA shall not provide, such coverage. 

6. The operator, prior to conducting its first flight to Iraq under this exemption, must 

complete and submit to its certificate holding district office the attached document, 

captioned “Waiver of Claims and Agreement to Indemnify and Hold Harmless the 

United States of America” containing the operator’s agreement to release the U.S. 

Government from any and all claims and liabilities, as well as its agreement to 

indemnify the U.S. Government with respect to any third party claims and liabilities 

relating to any and all events arising from or related to operations authorized under 

this grant of exemption. 

This exemption is also extended to the NAAC airmen who will be exercising the privileges of 

airmen certificates issued by the FAA in connection with the operations authorized under this 

exemption only to the extent necessary to conduct such operations. 

This exemption terminates on January 31, 2014, unless sooner superseded or rescinded. 

Issued in Washington, D.C., on January 13, 2012. 

/s/ 

John W. McGraw 

Acting Director, Flight Standards 

 Service 
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Page one of two 

WAIVER OF CLAIMS 

AND AGREEMENT

TO INDEMNIFY AND HOLD HARMLESS THE UNITED STATES OF AMERICA

1. In consideration of the Federal Aviation Administration (“FAA”) issuing operations 

specifications or a letter of authorization to: 

____________________________________ 

[Operator’s corporate name] 

(“Operator”) for one or more aviation operations in the territory of Iraq (the “Iraq Operations”), 

pursuant to Special Federal Aviation Regulation (“SFAR”) No. 77, Operator enters into this 

Waiver of Claims and Agreement to Indemnify and Hold Harmless the United States of 

America (“Waiver and Agreement”), and hereby: 

A. waives any and all claims and liabilities of whatever type or kind, brought in the 

United States of America or elsewhere, including without limitation those for personal 

injury, death, or property damage, that it may assert against the United States of 

America, or any department, agency, or instrumentality thereof, or any current or 

former officer or employee thereof, or any of them (the “Government Parties”) arising 

out of or related to Operator’s Iraq Operations; 

B. agrees to indemnify and hold harmless the Government Parties against any and 

all claims or liabilities of whatever type or kind, brought in the United States of 

America or elsewhere, including without limitation those for death, personal injury, or 

property damage, that arise out of or are related to Operator’s Iraq Operations and 

that may be asserted against the Government Parties by any third person, including 

without limitation any employee, agent, or supplier or other contractor of Operator; 

and 

C. agrees to reimburse the United States of America for any and all costs and 

expenses that the United States of America may incur in defending against the claims 

or liabilities referred to in paragraph B, above. 

2. Nothing in this Waiver and Agreement may be interpreted to affect adversely any 

protection provided to Operator: (i) under Public Law 85-804, as amended (50 U.S.C. 

§ 1431 et seq.); or (ii) under an effective non-premium insurance policy that the United 

States of America issued under 49 U.S.C. § 44305. 

3. This Waiver and Agreement applies to events occurring during the time period that begins 

when an aircraft operated by Operator enters into the territory or airspace of Iraq, and 

terminates when the outbound leg of that operation exits such territory or airspace. 
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Page two of two 

4. Operator understands that this Waiver and Agreement is required by SFAR No. 77 as a 

condition of, and forms part of the proceedings for: 

A. a letter of authorization issued by the Director, Flight Standards Service; 

B. a grant of exemption issued pursuant to part 11 of title 14, Code of Federal 

Regulations; or 

C. a grant of approval issued by the Associate Administrator for Aviation Safety or 

the Deputy Associate Administrator for Aviation Safety; 

whichever applies. 

5. Operator agrees to be bound by this Waiver and Agreement, as indicated by the signature 

of Operator’s duly authorized representative, who is an Officer of Operator and is authorized 

to bind Operator. 

For: For: 

_____________________________ The Federal Aviation Administration 

Operator’s Corporate Name 

By: By: 

_____________________________ ___________________________ 

Name Name 

_____________________________ ___________________________ 

Title Title 

_____________________________ ___________________________ 

Date Date