90 Arrival Ave, Suite 20-LI MacArthur 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 Federal Aviation Regulation No. 77 prohibits 

flight operations conducted with U.S. registered aircraft except as may be approved by 

the FAA. North American hereby seeks authority to conduct Part 135 flight operations 

with one of two aircraft registered 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 hereby 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 otherwise provided in the SFAR. One such proviso, and the one 

applicable to the facts of this request, is contained in Section 3 of the SFAR. This section 

of the SFAR states that the special regulation does not prohibit persons otherwise 

precluded from conducting operations over or within the territory of Iraq when such 

operations are either; (i) authorized by another 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 North 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 operations will be 

conducted under North American’s Part 135 authority (Certificate No. YNOA04U) using 

aircraft N4T or N917R, both of which are long range, turbojet aircraft, 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 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. It is 

initially expected that operations will be conducted to and from Iraq on the average of 
2 

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 considerable experience in 

obtaining local Iraq flight permissions and providing necessary 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 minimize hazards to the aircrew and aircraft. 

Finally, if a condition of approval of this request, North American will provide a flight 

update to the FAA Washington Operations Center when the aircraft 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 States has a long term national 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 related revenues will allow for greater stability 

of the Government of Iraq, and the entire Middle East region, the national and security 

interests of the United States will be furthered 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 Erbil, Iraq. In denying the application on May 15, 2008 the 

FAA consulted with the Department of State that, in turn, had advised the FAA that there 

was still considerable political and legal risk 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 business in Kurdistan becoming 

embroiled in conflicts between the Kurdistan Regional Government (“KRG”) and the 

Government of Iraq. The FAA order stated that based on these considerations the 

“Department of State cannot concur with the envisioned operations of Aspect Energy 

with the local governmental authorities of Iraq” and the FAA denied the petitioner’s 

request. 

Since 2008 the business climate in Iraq has significantly improved according to the 

Department of State. In a Fact Sheet dated 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 Development Program; the passage and 

further amendment of the National Investment Act putting a place a modern legal 

structure to protect foreign and domestic investors; the standing up a Iraq’s first 
3 

Commercial Court; and the reform of government owned firms operating state 

enterprises. The Fact Sheet also notes the continuing efforts of the U.S. State Department 

to work closely with their counterparts in other U.S. government agencies and with Iraqi 

government officials and private sector representatives to improve 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 Department advised the representatives of North 

American that when the Department of State is consulted by the FAA it will offer its 

view that the conditions, both political and legal, in Iraq have sufficiently improved to 

give the State Department reason to support the 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 FAA, by way of an affirmative statement of 

approval, North American hereby requests the 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 waiving the requirement for Federal Register 

publication of this petition. The flights to be operated by North American on behalf of 

the aircraft owner and investor are time critical. Faced with similar factors in ruling on 

the Aspect Energy petition, the FAA waived Federal 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 considered 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 questions 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 Register 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 around 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 Development 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 number 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 percent 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 greatest investment potential include: energy, including both hydrocarbons and 

the electrical power sector; infrastructure such as architecture, construction, and engineering and transportation; 

information and communications technology; 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 development. Additionally, potential investors face high security 

costs; regulations can be cumbersome and confusing; some Iraqi government 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 serious 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 government 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 limited 
foreign 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 established the first Commercial Court of Iraq, a court of 

specialized jurisdiction for disputes involving foreign investors 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 passed an ambitious, multi-year program to fundamentally 

reform more than 175 large State-Owned Enterprises 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 role 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.-Iraq Strategic Framework Agreement to boost this partnership. 

The U.S. government has engaged regularly 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 officials and private sector representatives 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 financing in Iraq, and ExIm has been approached by several 

project developers, exporters and financial institutions to discuss transactions in power projects, real-estate 

development, manufacturing and agriculture. Garnering interest among the business community to apply for ExIm 

Bank financing is one of the bank’s most important objectives in 2011.