UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation on January 28 , 2013



### NO T I CE OF A C TI O N T A K E N

- - DOCK E T DOT

- OS T

- 2012

- 0 2 0 0

T h i s s e r v es a s n o t i ce t o t h e pub l i c o f t h e a c t i on d e sc r i b ed b e l o w

, t a k en by t he D e p a rt m ent o f f i c i al i n d i c a t e d ( no

ad d i t i on a l con f ir m i ng o r der w i l l be i ss ued i n t h i s m a tt e r )

.

A pp li c an t : Star Flyer, Inc. (“Star Flyer”) D a t e F il e d: November 21 , 2012

, as supplemented December 14, 2012

R e l i ef r eq u es t ed: Exe m p t i on f r om 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.

A pp li c ant r e p r e se n t a t i v es: Anne D. Smith and Michael A. Roche

, ( 20 2 ) 626

- 3600

DOT Analyst: Darren Jaffe

, (202) 366

- 2512

Responsive pleadings: None filed.

D ISP O SI T I O N

A c ti o n : A p p r o v ed , subject to conditions (see below) A c ti on d a t e: January 28 , 2 0 1 3

E ff e c t i v e da t e s o f exe m p ti o n au t h o r it y g r an t e d : January 28 , 201 3

– January 28 , 20 1 5

B as i s f o r ap p r o v al ( b i l a t e ra l a g r ee m en t / r e c i p r o c it y ) : 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, w e 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 r eason 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, p ursuant to 1 4

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 char ter 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 authorize d herein, S tar Flyer must adhere to the provisions of the 2010 MOU.

A c ti on t a k en b y : P a ul L. G r e t ch, Di r e c t o r , O f f i ce o f I n t e r n a t i on a l A v i a ti on

____________________________________________________________ _______________________________

1 Star Flyer proposes to begin Japan

- Guam charter service s 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, 3 8.85% 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 national s in Japanese air carriers to one

third. 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 Con servation

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

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

Pe r so n s e n t i t l ed t o p e t i t i on t he D e p a r t m ent f o r r e v i ew of t h e a c t i on s et f o r t h i n t h i s N o t i ce u n der t he D ep a rt m en t ’ s r e g u l a t i o n s, 14

C FR § 3 85

. 30, m ay fil e t h e i r p e t i t i ons w it h i n se v en ( 7) d a y s a f t er t he d a t e of i s s uan c e of t h i s N o ti c e. T h i s ac t i on w a s e f f e c t i v e w hen

t a k en, and t he f i l i ng of a pe t i t i on f or r e v i ew wi l l n ot a lt er s u ch e ff e c t i v enes s

.

An e l e c t ron i c v e r s i on o f t h i s docu m e n t i s a v a i l a b l e on t he W or l d W i de W eb a t :

h tt p : / /

www .re g u l a ti o ns.g o vF o r e i gn C ar r i er E x e m p t i on C ond i t i ons

I n t he condu c t of t he op e r a t i ons au t h o r i z ed, t h e f o r e i g n ca r ri e r a pp l i c a n t ( s) sh a l l :

( 1) N o t co n du c t any op e r a t i ons u n l e ss i t h o l d s a c u r r e n tl y e f f e c ti v e a u t h o ri z a t i on f r om it s ho m e l and f o r such

o p e r a t i ons, and i t h as f il e d a c o py of su c h a u t ho r i z a t i on wi t h t he D e p a r t m en t ;

( 2) C o m p l y w it h a l l ap p li c ab l e r e q u i r e m en t s o f t h e F e de r a l A v i a t i on A d m i n i s t r a ti on, t he T r a nsp o rt a t i on Secu r it y

A d m i n i s t r a ti o n , a n d w it h a l l ap p l i ca b l e U .S. G o v e r n m ent r eq u ir e m en t s c o nce r n i ng sec u r i t y

, i n c l ud i n g , but n o t l i m it ed

t o, 14 C FR Pa r t s 1 29, 91, a n d 36 and 49 C FR Pa r t 15 4 6 or 155 0 , as app l i c ab l e. T o ass u r e co m p li an c e wi t h a l l

ap p li c ab l e U .S. G o v e r n m ent r equ i r e m en t s con c e r n i ng secu r it y

, t he ho l d er sha l l , b e f o r e co mm enc i ng any new se r v i ce

(i n c l u d i ng c ha r t er f l i g h t s ) f r om a f o r e i g n a i r po r t t h a t w ou l d be t he h o l d e r ’ s l ast po i nt o f d e pa r t u r e f o r t h e U n i t ed

S t a t e s, co n t a c t i t s I n t e r n a t i on a l I ndus t r y R ep r e s en t a t i v e ( II R ) (f o r m e rl y r e f e rr e d t o as I n t e r n a ti o nal P r i nc i pal S ecu r it y

I nspec t o r ) t o a d v i s e t he I I R of it s p l a n s and t o f i nd o ut w h e t h e r t he T r a nspo r t a ti o n Sec u r i t y A d m i n i s t r a ti o n has

d e t e r m i ned t h a t s e cu r it y i s ade q ua t e t o a l l ow such a i r p o r t ( s) t o b e s e r v ed;

( 3) C o m p l y w it h t he r eq u i r e m en t s f o r m i n i m u m i nsu r a nce co v e r a g e con t a i n ed i n 1 4 C FR Pa r t 205, a nd, p ri o r t o t h e

co mm enc e m ent of any op e r a t i o n s un d er t h i s au t ho r it y

, f il e e v i den c e of such c o v e r a g e, i n t he f o r m of a co m p l e t ed

O S T F o r m 6411, w it h t he F ed e r a l A v i a ti on A d m i n i s t r a t i o n ’ s P r o g r am Mana g e m ent B r anch ( A FS

- 260 ) , F li g ht

S t and a r ds Se r v i c e ( any ch a n g es t o, o r t e r m i na t i on o f

, i nsu r a nce a l s o s h a l l be f i l ed wi t h t h a t o f f i c e ) ;

( 4) N o t op e r a t e a i r c r a f t u n der t h i s a u t ho r i t y un l e s s i t c o m p li es wi t h o p e r a t i on a l s a f e t y r e qu i r e m en t s a t l ea s t

e qu i v a l ent t o A n n ex 6 of t h e C h i ca g o C on v en t i o n ;

( 5) C o n f o r m t o t he a i r w o r t h i ne s s a n d a i r m an co m pe t e ncy r equ i r e m en t s o f i t s G o v e r n m ent f o r

i n t e r n a t i on a l a i r se r v i c es;

( 6) E x ce p t as sp e c i fi c a l l y exe m p t ed or o t h e r w i s e p r o v i ded f o r i n a D e p a r t m ent O r de r

, c o m p l y w it h t he r eq u ir e m en t s

of 1 4 C FR P a r t 2 0 3, co n ce r n i ng w a i v er o f W a r saw C o n v en ti o n l i a b i l it y li m it s and d e f e ns e s;

( 7) A g r ee t h a t o p e r a t i ons u nder t h i s a u t h o r i t y cons t i t u t e a w a i v er of s o v e r e i g n i mm un it y

, f or t h e pu r pos e s of 28

U .S. C . 1 6 05 ( a )

, b ut o n l y w it h r es p ect t o t ho s e ac ti o n s or p r o cee d i n g s i n s t it u t ed a g a i n s t i t i n any

cou r t or o t h er t r i bun a l i n t h e U n i t ed S t a t es t h a t a r e: ( a ) b a sed on it s ope r a t i ons i n i n t e r na t i o n al a i r tr a n sp o rt a t i on t ha t

,

a c co r d i ng t o t he con t r a ct o f c a r r i a g e, i n c l u d e a p o i n t i n t h e U n i t ed S t a t es a s a p o i n t o f o ri g i n, p o i n t of de s t i na t i on, or

a g r e e d s t opp i ng p l a c e, o r f o r w h i ch t h e c o n t r a c t of c a r r i a g e w as p u r c h as e d i n t h e U n i t ed S t a t e s ; o r ( b ) based on a

c l a i m under any i n t e r n a t i on a l a g r ee m ent o r t r e a t y co g n i z ab l e i n any cou r t or o t h e r t r i bun a l of t h e U n i t ed S t a t es. I n

t h i s con d i t i on, t he t e r m "i n t e r na t i on a l a ir tr a n sp o rt a t i on" m eans " i n t e r na t i o n al t r ansp o r t a t i o n " as de f i ned by t h e

W a r s aw C o nv en ti on, e xce p t t h a t a l l S t a t es s ha l l b e co n s i d e r e d t o be H i g h C on t r a c t i ng Pa r ti es f o r t he p u r po s e of t h i s

de fi n i t i o n ;

( 8) E x ce p t as sp e c i fi c a l l y au t ho r i z ed by t he D e pa r t m en t , o r i g i n a t e o r t e r m i na t e a l l f li g h t s t o / f r om t he

U n it ed S t a t e s i n i t s ho m e l a nd;

( 9) C o m p l y w it h t he r eq u i r e m en t s of 14 C FR Pa r t 21 7 , conc e r n i ng t he r ep o r t i ng of sc h ed u l ed,

nonsc h edu l ed, a nd c h a r t er da t a ;

( 10) I f ch a rt e r o p e r a t i ons a r e au t ho r i z ed, ex c ept as o t h e r w i se p r o v i d e d i n t h e ap p l i c ab l e a v i a t i on a g r ee m en t , co m p l y

w it h t h e D epa r t m en t ' s r u l es g o v e r n i ng cha r t e r s ( i nc l ud i ng 14 C FR Pa r t s 212 and 38 0 ) ; and

( 11) C o m p l y w it h s uch o t h er r eas o na b l e t e r m s, con d i t i ons, and li m i t a ti o ns r eq u i r ed by t he p u b l i c i n t e r es t as m ay be

p r es c ri b ed by t h e D epa r t m en t

, w it h a l l app l i ca b l e o r d e r s or r e g u l a ti o n s of o t h e r U .S. a g enc i es and co u r t s, and w i t h a l l

a

p p li c ab l e l a w s of t h e U n i t ed S t a t es.

T h i s a u t h o r i t y sh a l l n o t b e e f f ec t i v e du r i ng any pe r i od w hen t h e ho l der i s not i n c o m p li ance w i t h t he cond i t i ons

i m posed abo v e. Mo r eo v e r

, t h i s au t ho r it y c a nnot b e s o l d o r o t h e r w i se t r ans f e r

r ed wi t ho u t exp l i c i t D e p a r t m ent

ap p r o v al un d er T i t l e 4 9 of t he U

. S

. C ode.

12 / 20 0 7