UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on January 28, 2013

 NOTICE OF ACTION TAKEN -- DOCKET DOT-OST-2012-0200

This serves as notice to the public of the action described below, taken by the Department official indicated (no 

additional confirming order will be issued in this matter).

Applicant: Star Flyer, Inc. (“Star Flyer”) Date Filed: November 21, 2012,

as supplemented December 14, 2012

Relief requested: Exemption from 49 U.S.C. § 40109 to conduct charter and scheduled foreign air transportation of 

persons, property, and mail between any point or points in Japan and any point or points in the United States.1 The 

applicant requests that its authority be granted for an initial period of at least two years.

Applicant representatives: Anne D. Smith and Michael A. Roche, (202) 626-3600

DOT Analyst: Darren Jaffe, (202) 366-2512

Responsive pleadings: None filed.

DISPOSITION

Action: Approved, subject to conditions (see below) Action date: January 28, 2013

Effective dates of exemption authority granted: January 28, 2013 – January 28, 2015

Basis for approval (bilateral agreement/reciprocity): 2010 Memorandum of Understanding between the United States and 

Japan (2010 MOU). 

Except to the extent exempted/waived, this authority is subject to the terms, conditions, and limitations of our standard 

exemption conditions (attached), and to the additional conditions specified below.

Special conditions/Remarks: Based on the record in this case, we found that the applicant is operationally and financially 

qualified to conduct its proposed operations and is substantially owned and effectively controlled by citizens of its homeland.2

 

We also note that the applicant is properly licensed by its homeland to perform the proposed services. In addition, on 

January 14, 2013, the FAA advised us that it knows of no reason to withhold this authority.

We note that the 2010 MOU places numerical limitations on the number of charter flights that may be operated by 

carriers of both countries between the United States and Tokyo’s Haneda Airport. Accordingly, pursuant to 14 

CFR §212.9(d), Star Flyer shall not perform any charter flights between Tokyo’s Haneda airport and the United States 

unless the Department has granted a statement of authorization for such operations.3

 In the event that the numerical 

limitation for charter flights between Haneda and the United States is eliminated, Star Flyer will no longer be subject to 

this prior approval requirement, without further action by the Department. Finally, in the conduct of the services 

authorized and tentatively authorized herein, Star Flyer must adhere to the provisions of the 2010 MOU.

Action taken by: Paul L. Gretch, Director, Office of International Aviation

___________________________________________________________________________________________

 1 Star Flyer proposes to begin Japan-Guam charter services on April 26, 2013. 2 In its application, Star Flyer identifies its 10 largest shareholders. Those shareholders account for 43.35% of the applicant’s reported 

stock, 38.85% of which is held by Japanese citizens or entities. Star Flyer states that its remaining shares are publicly traded on the 

Tokyo Stock Exchange, with no entity holding 5% or more of those shares. It further states that it is in compliance with Articles 4 and 

120-2 of Japan’s Civil Aeronautics Act, which limit the shareholder voting rights of foreign nationals in Japanese air carriers to onethird. In addition, the applicant states that its CEO, Directors, officers, and key management personnel are all citizens of Japan. 3 See e.g., Orders 2012-8-29 and 2012-11-23.
Under authority assigned by the Department in its regulations, 14 CFR Part 385, we found that (1) the applicant is qualified to perform 

the proposed operations; (2) our action was consistent with Department policy; (3) grant of the authority was consistent with the 

public interest and (4) grant of the authority would not constitute a major regulatory action under the Energy Policy and Conservation 

Act of 1975. To the extent not granted/deferred/dismissed, we denied all requests in the referenced Docket. We may amend, modify 

or revoke the authority granted in this Notice at any time without hearing at our discretion. 

Persons entitled to petition the Department for review of the action set forth in this Notice under the Department’s regulations, 14 

CFR § 385.30, may file their petitions within seven (7) days after the date of issuance of this Notice. This action was effective when 

taken, and the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov
Foreign Carrier Exemption Conditions

In the conduct of the operations authorized, the foreign carrier applicant(s) shall:

(1) Not conduct any operations unless it holds a currently effective authorization from its homeland for such 

operations, and it has filed a copy of such authorization with the Department;

(2) Comply with all applicable requirements of the Federal Aviation Administration, the Transportation Security

Administration, and with all applicable U.S. Government requirements concerning security, including, but not limited

to, 14 CFR Parts 129, 91, and 36 and 49 CFR Part 1546 or 1550, as applicable. To assure compliance with all

applicable U.S. Government requirements concerning security, the holder shall, before commencing any new service

(including charter flights) from a foreign airport that would be the holder’s last point of departure for the United 

States, contact its International Industry Representative (IIR) (formerly referred to as International Principal Security

Inspector) to advise the IIR of its plans and to find out whether the Transportation Security Administration has

determined that security is adequate to allow such airport(s) to be served;

(3) Comply with the requirements for minimum insurance coverage contained in 14 CFR Part 205, and, prior to the

commencement of any operations under this authority, file evidence of such coverage, in the form of a completed 

OST Form 6411, with the Federal Aviation Administration’s Program Management Branch (AFS-260), Flight

Standards Service (any changes to, or termination of, insurance also shall be filed with that office);

(4) Not operate aircraft under this authority unless it complies with operational safety requirements at least

equivalent to Annex 6 of the Chicago Convention;

(5) Conform to the airworthiness and airman competency requirements of its Government for 

international air services;

(6) Except as specifically exempted or otherwise provided for in a Department Order, comply with the requirements

of 14 CFR Part 203, concerning waiver of Warsaw Convention liability limits and defenses;

(7) Agree that operations under this authority constitute a waiver of sovereign immunity, for the purposes of 28 

U.S.C. 1605(a), but only with respect to those actions or proceedings instituted against it in any

court or other tribunal in the United States that are: (a) based on its operations in international air transportation that, 

according to the contract of carriage, include a point in the United States as a point of origin, point of destination, or

agreed stopping place, or for which the contract of carriage was purchased in the United States; or (b) based on a

claim under any international agreement or treaty cognizable in any court or other tribunal of the United States. In 

this condition, the term "international air transportation" means "international transportation" as defined by the

Warsaw Convention, except that all States shall be considered to be High Contracting Parties for the purpose of this

definition;

(8) Except as specifically authorized by the Department, originate or terminate all flights to/from the

United States in its homeland;

(9) Comply with the requirements of 14 CFR Part 217, concerning the reporting of scheduled, 

nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided in the applicable aviation agreement, comply

with the Department's rules governing charters (including 14 CFR Parts 212 and 380); and

(11) Comply with such other reasonable terms, conditions, and limitations required by the public interest as may be

prescribed by the Department, with all applicable orders or regulations of other U.S. agencies and courts, and with all

applicable laws of the United States.

This authority shall not be effective during any period when the holder is not in compliance with the conditions

imposed above. Moreover, this authority cannot be sold or otherwise transferred without explicit Department

approval under Title 49 of the U.S. Code.

12/2007