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STARLUX AIRLINES CO., LTD. ) ) for an Exemption Pursuant to 49 U.S.C

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STARLUX AIRLINES CO., LTD. ) ) for an Exemption Pursuant to 49 U.S.C BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ) ) Docket No. OST-2020- STARLUX AIRLINES CO., LTD. ) ) For an exemption pursuant to 49 U.S.C. § 40109 ) and a foreign air carrier permit pursuant ) to 49 U.S.C. § 41301 (Taiwan – U.S.) ) ) APPLICATION OF STARLUX AIRLINES CO., LTD FOR AN EXEMPTION AND FOREIGN AIR CARRIER PERMIT Communications with respect to this document should be addressed to: Josh Romanow PILLSBURY WINTHROP SHAW PITTMAN LLP 1200 Seventeenth Street, NW Washington, DC 20036 Phone: +1-202-663-8000 Email: [email protected] Counsel for STARLUX Airlines Co., Ltd. December 11, 2020 NOTE: Any person may support or oppose this Application by filing an answer and serving a copy of the answer on counsel for STARLUX Airlines Co., Ltd. and upon each person served with this application. Answers to the exemption application are due by December 26, 2020; answers to the permit application are due by January 1, 2021. STARLUX Airlines Co., Ltd. intends to poll on this application and will advise the Department of the results. BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. Application of ) ) Docket No. OST-2020- STARLUX AIRLINES CO., LTD. ) ) For an exemption pursuant to 49 U.S.C. § 40109 ) and a foreign air carrier permit pursuant ) to 49 U.S.C. § 41301 (Taiwan – U.S.) ) ) APPLICATION OF STARLUX AIRLINES CO., LTD FOR AN EXEMPTION AND FOREIGN AIR CARRIER PERMIT STARLUX Airlines Co., Ltd. (“STARLUX”), an air carrier of Taiwan, hereby applies, under the provisions of 49 U.S.C. § 41301, and Subparts B and C of the Department’s Rules of Practice in Proceedings (14 C.F.R. §§ 302.201 and 302.301, et seq.), Part 211 of the Department’s Economic Regulations (14 C.F.R. Part 211), and the Department’s streamlined licensing procedures,1 for an exemption and foreign air carrier permit authorizing it to engage in scheduled and charter foreign air transportation of persons, property and mail from points behind Taiwan, via Taiwan and intermediate points, and any point or points in the United States, and beyond to the full extent permitted by the open skies Air Transport Agreement between the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office of 1997; and other charters pursuant to the prior approval requirements set forth in the Department’s regulations. STARLUX requests the exemption authority sought herein remain in effect until the Department issues STARLUX the foreign air carrier permit requested herein. 1 See Notice in Docket OST-2005-22228 (Aug. 23, 2005). 1 In support of its application, STARLUX states as follows: 1. The applicant’s full name is STARLUX Airlines Co., Ltd. Its principal place of business is 15F., No. 382, Sec. 6, Nanjing E. Rd., Neihu Dist., Taipei City 114, Taiwan R.O.C.. STARLUX is a corporation established under the laws of Taiwan. STARLUX’s Certificate of Incorporation is attached hereto as Exhibit A. 211.20(a) 2. The government air transport authority having jurisdiction over STARLUX is the Civil Aeronautics Administration, MOTC R.O.C. (“CAA”). The address of CAA is as follows: No. 340, Dunhua N. Rd. Taipei City 10548, Taiwan (R.O.C.). 211.20(b) 3. Authority Requested: STARLUX seeks authority to conduct scheduled and charter foreign air transportation of persons, property, and mail from points behind Taiwan, via Taiwan and intermediate points, to a point or points in the United States, and beyond, as well as other charters pursuant to Part 212 of the Department’s regulations. 4. STARLUX proposes to commence service on the Taipei (TPE) – Los Angeles (LAX) route in 2022 and intends to operate A350-900 aircraft with 306 seats. 211.20(c) 5. Management: A summary of STARLUX’s management is attached hereto as Exhibit B. 211.20(d) 6. Statement of Ownership: Information on the ownership of STARLUX is attached hereto as Exhibit C. 7. STARLUX neither directly nor indirectly has any interest in any of the entities listed 2 below2: 211.20(f). A. Any US carrier; B. Any other foreign carrier; C. Any persons engaged in the business of aeronautics; and D. Any common carrier, or any person whose principal business is the holding stock in, or control, of any air carrier. 8. STARLUX is a citizen of Taiwan. All of STARLUX’s management and key personnel are citizens of Taiwan. There is no government ownership. 211.20(g) 9. STARLUX’s insurance meets the minimum requirements set forth in 14 C.F.R. 205. A copy of STARLUX’s OST Form 6411, Certificate of Insurance is attached hereto as Exhibit D. 211.20(h) 10. A copy of the STARLUX Air Operating Certificate is attached as Exhibit E. 211.20(i). Also attached as Exhibit E is a copy of STARLUX’s business license. 211.20(i) 11. Operating History: Exhibit F provides additional background information on STARLUX and its operations, including route structure. 211.20(j) 12. Fleet Composition: STARLUX’s fleet is described in more detail in Exhibit G. 211.20(k) 13. Maintenance: STARLUX’s base and line maintenance services are provided at Taoyuan and Tainan, Taiwan and are performed by Engineering & Maintenance Division of STARLUX and Air Asia Co. Ltd (FAA Vert. No. FY4Y197M). STARLUX’s maintenance program complies with the provisions of the ICAO Pilots and Airmen Annexes I, 6 (Part I), and 7. 211.20(l) 2 The Chairman of Starlux personally owns stocks of EVA Airways, UNI Airways and other airline-industry-related funds. 3 14. Agreements: No cooperative arrangements or other agreements between STARLUX and any U.S. or foreign air carrier would affect the services that STARLUX proposes in this application. 211.20(m) 15. A required financial summary is attached hereto as Exhibit H. 211.20(n) 16. STARLUX receives no financial assistance from the Taiwan Government. Due to the pandemic challenges, the Taiwan Government provided a bailout loan over 1M US dollars for STARLUX, and subsidized the interest rate of the loan. 211.20(o) 17. A forecast of traffic and financial results for the first full year of the proposed service is attached hereto as Exhibit I. 211.20(p) 18. Designation: The authority requested herein is consistent with the terms of the Air Transport Agreement between the United States and Taiwan. A copy of the formal designation is attached as Exhibit J. 211.20(q) 19. Taiwan’s Policy with United States Carriers: It is STARLUX’s understanding that Taiwan would authorize services similar to those requested herein for a U.S. carrier under the bilateral agreement. STARLUX’s new service will provide additional travel opportunities to citizens of both the U.S. and Taiwan, serve the interests of comity and reciprocity, benefit travelers in both countries, and will, therefore, serve the public interest.3 211.20(r) 20. Tariff Violations/Accidents: STARLUX has not been involved in any safety or tariff violations or any fatal accidents in the past five years. 211.20(s) 21. Waiver of Warsaw Convention Liability Limits: A copy of STARLUX’s OST Form 3 See S. REP. NO. 96-329, at 4 (1979), reprinted in 1980 U.S.C.C.A.N. 54, 57 (“[T]he negotiation of a bilateral agreement itself represents a determination by the Government of the United States that the grant of route authority provided for under the bilateral is in the ‘public interest.’”). 4 4523 is attached hereto as Exhibit K. 211.20(t) 22. Foreign Air Carrier Family Support Act Plan: STARLUX’s plan will be submitted to the National Transportation Safety Board, with a copy to the appropriate docket at the Department. A copy is attached as Exhibit L. 23. Summary of Passenger Manifest Information Collection Procedures: STARLUX will collect the passenger manifest information required by 14 C.F.R. § 243 and will transmit that information to the U.S. Department of State in the event of an aviation disaster. A summary of STARLUX’s procedures is attached as Exhibit M. 24. Fuel Consumption: The operation proposed by STARLUX will not result in a near term increase in fuel consumption of ten million gallons or more. Consequently, grant of the authority requested herein will not constitute a “major regulatory action” under the Energy Policy and Conservation Act of 1975, as defined in 14 C.F.R. § 313.4 (a)(1). 25. Verification: The verification required by 14 C.F.R. 302.4 (b) is attached hereto as Exhibit N. 26. STARLUX will be working with the FAA International Field Office in New York to obtain its Part 129 Op Specs as quickly as possible. For the reasons set forth above, STARLUX is fully qualified to operate the services for which authority is here requested, and grant of the requested authority will serve the public interest. STARLUX requests that the exemption requested herein remain in effect until the Department issues a foreign air carrier permit. 5 WHEREFORE, based upon the foregoing information, STARLUX respectfully requests that it be granted an exemption and foreign air carrier permit to engage in scheduled and charter foreign air transportation of persons, property and mail as more fully described above. Respectfully submitted, Josh Romanow PILLSBURY WINTHROP SHAW PITTMAN LLP 1200 Seventeenth Street, NW Washington, DC 20036 Phone: +1.202.663.8000 Email: [email protected] December 11, 2020 Counsel for STARLUX Airlines Co., Ltd. 6 CERTIFICATE OF SERVICE The undersigned certifies that on December 11, 2020 the application of STARLUX Airlines Co., Ltd. for Exemption and Foreign Air Carrier Permit, was served by electronic mail on the individuals identified below: Robert Wirick Naveen Rao John Williams Atlas Air Inc.
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