90 Arrival Ave, Suite 20-LI MacArt hur Airport- Ronkonkoma, NY 11779 631-737-4430 – 800-516- 4430 Fax 631-737-2093

www.naac.com October 3, 2011

North American Air Charter petition for an exemption from Special Federal Aviation Regulation No.77 of Title 14, Code of Federal Regulations

Dear Sirs:

The undersigned, on behalf of North American Air Charter, Inc. (“North American”) hereby seeks FAA approval to conduct flight operations to and from Iraq as further described herein. As you know, Special Fe deral Aviation Regulati on No. 77 prohibits flight operations conducted with U.S. regist ered aircraft except as may be approved by the FAA. North American hereby seeks auth ority to conduct Part 135 flight operations with one of two aircraft regi stered in the United States and listed on North American’s Operations Specifications, and flown by airman holding certificates issued by the Federal Aviation Administration. North American he reby requests FAA approval of the flight operations described below, or alternatively, hereby seeks the grant of an exemption from the prohibition of the SFAR request pursuant to Section 3 of the Special Regulation.

SFAR 77 provides that no person may conduct flight operations over or within the territory of Iraq except as ot herwise provided in the SFAR. One such proviso, and the one applicable to the facts of this request, is cont ained in Section 3 of the SFAR. This section of the SFAR states that the special re gulation does not prohibit persons otherwise precluded from conducting operatio ns over or within the terri tory of Iraq when such operations are either; (i) authorized by a nother U.S. Government agency with the approval of the FAA, or; (ii) authorized by an exemption granted by the Administrator. North American hereby seeks the approval of the FAA for the operations described herein either by an appropriate approval, or by exemption, as determined by the FAA.

In support of this request Nort h American states as follows:

North American proposes to conduct operations between points outside of Iraq and Erbil, Iraq generally through OBER (ICAO designator). These flight op erations will be conducted under North American’s Part 135 authority (Certificate No. YNOA04U) using aircraft N4T or N917R, both of which are l ong range, turbojet airc raft, and listed on North American’s Operations Specifications. The aircraft flight crews will all possess airman certificates issued by the FAA. The aircraft will transport key executives and others in furtherance of the bus iness interests of the owner of aircraft N4T in a firm that is exploring and developing oil fields located in the Kurdistan region of Iraq. It is initially expected that operat ions will be conducted to and from Iraq on the average of2 twice monthly, although the frequency of operations could differ depending on business conditions.

North American and the aircraft owner have made arrangements to ensure that the aircraft, the flight crew and any ground staff are adequately protected while in Iraq. In addition, a flight service firm (Palm Aviation) that has c onsiderable experience in obtaining local Iraq flight pe rmissions and providing n ecessary ground handling and communications has been engaged to support the operations for which approval is being sought. The aircraft will be free of any exterior markings except the FAA aircraft registration number. North American’s aircrew will operate the aircraft to and from Iraq in accordance with threat assessment and all local operating rules/procedures so to exit the SFAR area expeditiously and thereby minimi ze hazards to the aircrew and aircraft. Finally, if a condition of approval of this re quest, North American will provide a flight update to the FAA Washington Op erations Center when the ai rcraft enters and leaves Iraqi airspace on each flight operated under the authority of Section 3 of the SFAR.

Approval of these North American operations to and from Iraq would be in the public interest. The Government of the United Stat es has a long term natio nal interest in the development of the economy of Iraq. Oil is the major source (90%) of foreign exchange earnings for Iraq. 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. To the extent increasing oil re lated revenues will allow for greater stability of the Government of Iraq, and the entire Mi ddle East region, the national and security interests of the United States will be furthe red by approval of these flight operations.

Although it may seem counter-intuitive to do so, North American relies upon the prior decision of the FAA in Regulatory Docket No. FAA-2007-0187 to support its request. In this prior matter the FAA denied the request of an energy firm with business reasons for operating into and out of Erb il, Iraq. In denying the application on May 15, 2008 the FAA consulted with the Department of State th at, in turn, had advised the FAA that there was still considerable political and legal ri sk involving business operations inside Iraq. The FAA decision noted the State Department ’s views on the need for a national law covering the oil sector and the potential for firms doing bus iness in Kurdistan becoming embroiled in conflicts between the Kurdis tan Regional Government (“KRG”) and the Government of Iraq. The FAA order stated that based on these considerations the “Department of State cannot concur with th e envisioned operations of Aspect Energy with the local governmental au thorities of Iraq” and the FAA denied the petitioner’s request.

Since 2008 the business climat e in Iraq has significantly improved according to the Department of State. In a Fact Sheet da ted June 3, 2011 (attached as Exhibit 1) State notes that the Iraq economy is stabilizing and expanding. The Fact Sheet further cited to specific examples of tangible progress; namely the initiation of a national anti-corruption strategy in coordination with the United Nations Developm ent Program; the passage and further amendment of the National Investme nt Act putting a place a modern legal structure to protect foreign and domestic investors; the standing up a Iraq’s first3 Commercial Court; and the reform of government owned firms operating state enterprises. The Fact Sheet also notes the c ontinuing efforts of the U.S. State Department to work closely with their counterparts in ot her U.S. government agencies and with Iraqi government officials and private sector re presentatives to impr ove the institutional capacity and regulatory framework in Iraq.

Based on the State Department’s recent report documenting the improving business climate in Iraq, the aircraft owner sought out the views of the Department prior to filing this request with the FAA. The State Depa rtment advised the representatives of North American that when the Department of Stat e is consulted by the FAA it will offer its view that the conditions, both po litical and legal, in Iraq have sufficiently improved to give the State Department reason to support th e granting of the North American’s request to conduct flight operations to and from Iraq in furtherance of the aircraft owner’s interest in Iraq-based oil facilities and operations. Based on what North American understands the Department of State will advise the F AA, by way of an affirmative statement of approval, North American hereby requests th e approval by the FAA of the described flight operations to and from the territory of Iraq, or alternatively, the granting of an exemption from SFAR 77.

To the extent the FAA deems this request a petition for exemption, North American hereby states that good cause exists for wa iving the requirement for Federal Register publication of this petition. Th e flights to be operated by North American on behalf of the aircraft owner and investor are time critic al. Faced with similar factors in ruling on the Aspect Energy petition, the FAA waived Fede ral Register publication of the petition. In addition, FAA action on this request will not set a precedent as each request under SFAR 77 must be consider ed on its own merits. 1 Therefore, a similar waiver should be granted in this matter to the extent this request is deemed a petition for exemption.

Should the FAA have any questi ons regarding any aspect of this request for approval to conduct Part 135 flight operations to and from the territory of Iraq, please contact the undersigned.
Very truly yours,

Jonathan D. Ross Director of Operations (800) 516-4430 jonr@naac.com

1 Recently the FAA waived Federal Regi ster publication of the petition of BCC Equipment Leasing Company for relief from the limitations of SFAR 77 noting that such decisions have no precedential value. See FAA Exemption No. 10282, Docket FAA2011-0528.EXHIBIT 1 

### Doing Business in Iraq

Fact Sheet Washington, DC
June 3, 2011

Iraq today is emerging from years of civil conflict and economic isolation, and has the potential to again become what it was not so long ago: a prosperous country with a thriving middle class. Iraq is a market with tremendous potential.

 By many estimates, Iraq has the world’s third-largest oil reserves, and plans to explore for additional

reserves.

 Iraq’s population is estimated at aroun d 30 million, among the largest in the region, and is projected to grow more than two percent annually over the next five years.

 According to the Iraqi government’s National Developm ent Plan, the government has plans to spend $100 billion of its own money on thousands of reconstruction and development projects over the next four years.

In recent years, there are a num ber of tangible signs that Iraq’s economy is stabilizing and expanding:

 Iraq’s economy averaged an estimated 4.5 percent real growth over the past four years;

 Oil production has increased an estimated 22 perce nt since 2005, and oil exports have increased an estimated 58 percent over the same period;

 Consumer prices have stabilized, with single-digit inflation over the past three years after more than 50 percent inflation in 2006;

 The Iraqi government has spent more than US $20 billion on reconstruction and investment projects each of the last two years.

The economic sectors in Iraq with the gr eatest investment potential include: energy, including both hydrocarbons and the electrical power sector; infrastructure such as arch itecture, construction, and engineering and transportation;
information and communications technolo gy; health such as medical technology, pharmaceuticals, biotechnology, and health care services; and agribusiness.

Despite progress toward fundamental reforms of the economy and legal system, the legacy of central planning also continues to inhibit economic diversification and developmen t. Additionally, potential inve stors face high security costs; regulations can be cumbersome and confusing; some Iraqi governm ent contracts face payment delays; corruption continues to hamper trade and investment; and dispute resolution mechanisms can be sometimes unreliable and non-transparent. The Iraqi government made se rious efforts to address these challenges. Continued reform efforts will take time, but tangible progress includes the following:

 In March 2010, Iraq launched a comprehensive national anti-corruption strategy in coordination with the United Nations Development Program (UNDP). UNDP is helping the Iraqi gov ernment implement the national anti-corruption strategy at both the central and provincial government levels;

 The National Investment Law, originally passed in 2006 , provides a baseline for a modern legal structure to protect foreign and domestic investors. An amendment to the Law, passed in early 2010, allows for limitedforeign ownership of land for the purpose of developing residential real estate projects. The amendment also sought to bring clarity to land allocation and use, a major inhibitor to investment;

 In November 2010, Iraq’s Supreme Judicial Council esta blished the first Commercial Court of Iraq, a court of specialized jurisdiction for disputes involving foreign in vestors that is part of a national strategy to improve Iraq’s investment climate. This court began hearing cases in January 2011. It has jurisdiction only over cases involving a foreign party in Baghdad province but Iraqi judicial officials have expressed interest in opening similar courts in Basrah, Mosul and Babil.

 In September of 2011, the Council of Ministers passe d an ambitious, multi-year program to fundamentally reform more than 175 large State-Owned Enterprise s into well managed, market-based companies. The government of Iraq is being assisted in this effort by a large group of donors led by the World Bank and UNDP. The United States plays an important ro le in supporting this important process

Since 2003, the United States has been an active partner to help Iraqis strengthen their democracy, build civil society, improve security, and re-integrate fully into the regional and global community and economy. Since 2009, we have worked through the U.S.-Ir aq Strategic Framework Agreement to boost this partnership.

The U.S. government has engaged regula rly with the Iraqi government to promote growth and reform in multiple sectors of Iraq’s economy. The Embassy’s economic and commercial officers work closely with their counterparts in other U.S. government agencies and with Iraqi government offi cials and private sector repr esentatives to improve the institutional capacity and regulatory framework in Iraq. Additionally, OPIC and ExIm are both open for business in Iraq. OPIC has already committed over $150 million in finan cing in Iraq, and ExIm has been approached by several project developers, exporters and financ ial institutions to discuss transacti ons in power projects, real-estate development, manufacturing and agriculture. Garnering intere st among the business community to apply for ExIm Bank financing is one of the bank’s most important objectives in 2011.