US. Department of 

Transportation 

Office of the Secretary 

of Transportation 

January 3, 2012 

Mr. Shaun R. Christian 

President 

Star Marianas Air, Inc. 

P.O. Box 520461 

Tinian MP 96952 

Re: Docket DOT-OST-2010-0235 

Application of Star Marianas Air, Inc. 

for Commuter Authority 

Dear Mr. Christian: 

-- :~tfj·~tBFc?; · 

l'i ~ :. ,. ~;1200 New Jersey Avenue, SE 

· ' · Washington, DC 20590 

~, i I: I W 

On October 13, 2011, Star Marianas Air, Inc. ("Star" or "SMA"), submitted a formal 

contract between it and Tinian Dynasty Hotel and Casino ("TDHC" or "Dynasty"), 

which, according to DOT records, is ultimately owned and controlled by a Hong Kong 

entity, 1 in response to the Depm1ment's concem regarding the control of Star and its 

operations by non-U.S. citizens. 

As you are aware, the Department informed Star that without an agreement in place 

describing the rights and obligations each party has to the other and detailing the 

protections in place that would prevent TDHC from exerting influence or control over 

Star and its operations, we would be unable to determine whether Star is under the actual 

control of U.S. citizens and in compliance with 49 U.S.C. § 40102(a)(15). 

We have reviewed the agreement submitted and at this time believe that it does not 

adequately address our concems. For instance, on page 1, Section I (C), Dynasty is not 

restricted to utilizing SMA exclusively and can make bookings with other airlines or 

surface transportation providers. There is no companion provision that speaks to Star's 

ability to provide charter air transportation to other entities should it choose to do so. 

From the provisions included in the agreement, it appears that Star can only provide air 

transportation to TDHC, while TDHC is free to "shop around" for other transportation 

providers. 

There are also provisions throughout the agreement that are not typically found in charter 

agreements. For example, on page 3, Section II (D), Price and Payment, several of the 

See Order 2007-12-11 at I. TDHC is a company incorporated under the laws of the Commonwealth of 

the Northern Marianas Islands that is ultimately owned and controlled by Tinian Dynasty Holdings 

Limited. a British Virgin Island entity. whose ownership in turn. is majority held by Mr. Michael Kwan. a 

Hong Kong citizen. 
2 

provisions are not typical and indicate lack of control. It is not typical for charter prices 

to change over the course of the agreement term without the written consent of both 

parties, effectuated with a signed and executed amendment; to continue to provide charter 

services when payment for charter flights already provided have yet to be made; and, to 

simply have the charterer reinstate the services of the charter air carrier by bringing 

delinquent payments cun·ent without any consideration for the charter air carrier should it 

refuse to provide charter flights to the charterer due to past non-payments. All of these 

conditions do not indicate independence on the part of the carrier, and must be addressed. 

We also note that on page 7 of the agreement, it states that each party is solely 

responsible for translating the charter agreement and that the English version is binding 

should there be a conflict between it and any translation. This is inconsistent with 

customary contract arrangements, where in most cases no translation provisions are 

made, and should there be translations, they are included with the original, binding text. 

In what language was this agreement originally written, and what languages, if any, has 

this agreement been translated, and for what purpose are the translations needed? This 

further leads us to question the independence and control of the carrier. 

In light of the above, we are still unable to determine that Star is a U.S. citizen and under 

the actual control of U.S. citizens. We note that it is the applicant's responsibility to bear 

the burden of proof and provide sufficient evidence to prove it is a U.S. citizen as defined 

by the Transportation Code. Should Star Marianas fail to do so within 30 days from the 

date of this letter, we intend to issue a show cause order proposing to revoke its air taxi 

registration and deny its application for commuter authority for failure to comply with the 

citizenship requirements set forth 49 U.S.C. § 40102(a)(15). 

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

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

the record in this case need to 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, I [the individual signing the application, who shall be a principal 

owner, senior officer, or internal counsel 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 18 U.S.C section 1001 

shall be fined or imprisoned not more than five years, or both. 
3 

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 Katy O'Toole of my staff at 

(202) 366-9721. 

Sincerely, 

. emo 

Chief, Air Carrier Fitness Division 

Office of Aviation Analysis 

cc: Docket DOT-OST-2010-0235 

Mr. Thomas Brehm 

FAA 

Honolulu FSDO 

135 Nakolo Place 

Honolulu, HI 96819