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1 BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C. __________________________________________ Application of ) ) NAURU AIR CORPORATION ) ) Docket DOT-OST-2016- for an exemption pursuant to 49 U.S.C. §40109 ) and a foreign air carrier permit pursuant ) to 49 U.S.C. §41301 ) __________________________________________) APPLICATION OF NAURU AIR CORPORATION FOR AN EXEMPTION AND FOREIGN AIR CARRIER PERMIT Communications with respect to this document should be addressed to: David E Schaffer DAVID E SCHAFFER ASSOCIATES, LLC 9205 Hambletonian Place Vienna, VA 22182 Phone: +1-703-938-3062 Fax: +1-703-938-3063 Email: dschaffer2@cox.net Counsel for NAURU AIR CORPORATION Dated: Note: Any person may support or oppose the Application by filing an answer and serving a copy of the answer on counsel for Nauru Air Corporation and upon each person served with this application. Answers to the exemption application are due by November 9, 2016. Answers to the permit application are due by November15, 2016.

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BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ Application of ) ) NAURU AIR CORPORATION ) ) Docket DOT-OST-2016- for an exemption pursuant to 49 U.S.C. §40109 ) and a foreign air carrier permit pursuant ) to 49 U.S.C. §41301 ) __________________________________________)

APPLICATION OF NAURU AIR CORPORATION FOR AN EXEMPTION AND FOREIGN AIR CARRIER PERMIT

Communications with respect to this document should be addressed to: David E Schaffer DAVID E SCHAFFER ASSOCIATES, LLC 9205 Hambletonian Place Vienna, VA 22182 Phone: +1-703-938-3062 Fax: +1-703-938-3063 Email: [email protected] Counsel for NAURU AIR CORPORATION Dated: Note: Any person may support or oppose the Application by filing an answer and serving a copy of the answer on counsel for Nauru Air Corporation and upon each person served with this application. Answers to the exemption application are due by November 9, 2016. Answers to the permit application are due by November15, 2016.

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BEFORE THE U.S. DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

__________________________________________ Application of ) ) NAURU AIR CORPORATION ) ) Docket DOT-OST-2016- for an exemption pursuant to 49 U.S.C. §40109 ) and a foreign air carrier permit pursuant ) to 49 U.S.C. §41301 ) __________________________________________)

APPLICATION OF NAURU AIR CORPORATION FOR AN EXEMPTION AND FOREIGN AIR CARRIER PERMIT

NAURU AIR CORPORATION (“Nauru Airlines”), an air carrier of the Republic of

Nauru, hereby applies, under the provisions of 49 U.S.C. §§40109 and 41301, Subparts B and C

of the Department’s Rules of Practice (14 CFR 302.201 and 302.301, et seq.), Part 211 of the

Department’s Economic Regulations (14 CFR 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. Nauru Airlines

requests that the exemption authority sought herein remain in effect until the Department issues

Nauru Airlines the foreign air carrier permit requested herein.

In support of its application, Nauru Airlines states as follows:

a. The name of the applicant is Nauru Air Corporation, doing business as Nauru Airlines.

Its address is Level 2, 99 Creek Street, Brisbane, 4000 Australia. It is a corporation

organized under the laws of the Republic of Nauru, specifically the Nauru Air

Corporation Act 1995, as amended.

1SeeNoticeinDocketOST-2005-22228(August23,2005).

3

b. Given its small size and limited population, the Republic of Nauru was not able to

establish a credible aviation safety oversight authority. Therefore, Australia, through its

Civil Aviation Safety Authority (CASA), agreed to provide the necessary regulatory

jurisdiction over Nauru Airlines. CASA’s address is CASA Operations Headquarters,

12-14 The Circuit, Brisbane Airport, Queensland, 4007, Australia.

c. Nauru airlines seeks authority to conduct scheduled and charter foreign air transportation

of persons, property and mail between the Republic of Nauru and the United States.

Initially, Nauru Airlines would offer one round-trip flight per week between Nauru and

Guam. The first flight would occur at the end of March 2017. The flights would stop at

Tarawa, Majuro, and Pohnpei. A Boeing 737-300 aircraft would be used to provide the

service. It would be configured with 12 business class seats and 122 economy seats. The

aircraft would also be capable of carrying freight.

d. The names, addresses and citizenship of all Directors are attached as Exhibit A. The

names addresses, and citizenship of all Officers and key management personnel are

attached as Exhibit B. None of these people are related by blood or marriage.

e. No person holds 5% or more of the capital stock or the capital of Nauru Airlines.

f. Nauru Airlines is wholly owned by the government of Nauru.

g. Although the airline is owned by the government, the Board of Directors of Nauru Air

Corporation has responsibility for the managerial decisions of the airline. The Board

reports to the Minister of Nauru Air Corporation.

h. Nauru Airlines insurance meets the liability limits of 14 CFR Part 205. A copy of Nauru

Airlines Certificate of Insurance (OST Form 6411) is attached as Exhibit C. The

insurance is arranged through Aerosure, Suite 29, Upper Deck, Jones Bay Wharf, 26-32

Pirrama Road, Sydney NSW 2009, Australia.

i. The evidence of Nauru Airlines operating authority is contained in its Air Operator

Certificate which is attached as Exhibit D.

j. For more than 30 years, Nauru Airlines and its predecessors (Air Nauru and Our Airline)

has been providing air service throughout the central and south Pacific. In 1982, its

predecessor was granted a foreign air carrier permit by the old Civil Aeronautics Board

(CAB).2 In July 1996, Nauru Air Corporation was established as a separate statutory

2SeeOrder82-10-92

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corporation wholly owned by the Republic of Nauru. The corporation’s business is

overseen by the Board of Directors appointed by the government. The CEO and his team

are tasked with the responsibility of providing safe, efficient, and profitable services to

the people of Nauru. Since 1996, the airline has been operating under the Australian civil

aviation regulations and with an Australian Air Operators Certificate. Its pilots and

engineers are trained to Australian standards and its maintenance is performed by

respected Australian maintenance providers. This ensures that the airline operates to one

of the highest safety standards in the world. Nauru Airlines currently provides air

services to Brisbane, Tarawa, Nadi, Kosrae, and Majuro. It also provides charter services

to clients in Australia, New Zealand, central and south Pacific and southeast Asia. In

addition, the airline has provided wet lease and ACMI charter services to various airlines

in the south Pacific.

k. Nauru Airlines has five Boeing 737-300 aircraft in its fleet. All are owned by the

Government of Nauru and all are registered in Australia. The registration numbers of the

aircraft are as follows:

a. VH-PNI

b. VH-ONU

c. VH-YNU

d. VH-XNU

e. VH-VLI (freighter)

l. Maintenance is performed in Nauru Airlines’ hangar at Brisbane by Aircraft Structural

Contractors who have approval for this maintenance under Part 145 of the Australian

Civil Aviation Safety Regulations (CASR). Nauru Airlines’ maintenance program

complies with the provisions of ICAO Pilots and Airmen Annexes I, 6 (Part I), and 7. A

statement to this effect is attached as Exhibit E. Both Australia and Nauru are contracting

states to the Convention on International Civil Aviation.

m. There are no agreements or cooperative working arrangements with any other airline that

would affect the proposed services to Guam.

n. The required financial summary is attached as Exhibit F.

o. Nauru Airlines has not received, nor does it expect to receive, financial assistance from

the Government of Nauru.

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p. During the first full year of normal operations, Nauru Airlines estimates that it will carry

2500 passengers outbound and 2500 passengers inbound on the route between Nauru and

Guam. An estimate of the financial results of the proposed service is attached as Exhibit

G.

q. It is Nauru Airlines’ understanding that the government of Nauru would authorize air

services similar to those Nauru is requesting should a U.S. airline apply for such

authority. If approved, the Nauru Airlines service will provide additional travel

opportunities to the citizens of both Guam and Nauru (as well as points in between),

provide direct air service between Nauru and Guam whose citizens now must travel

between the two countries by a circuitous route, serve the interests of comity and

reciprocity, benefit travelers in both countries, and therefore serve the public interest. An

extract from the Board’s minutes authorizing this service is attached as Exhibit H

r. As noted above, it is the understanding of Nauru Airlines that the government of Nauru

would, if requested, approve scheduled and charter air service by U.S. carriers including

granting 5th freedom traffic rights to U.S. carriers.

s. Nauru Airlines has not been involved in any safety or tariff violations or in any fatal

accidents in the past 5 years.

t. A copy of OST Form 4523 (Waiver of liability limits under the Warsaw Convention) is

attached as Exhibit I.

u. A copy of Nauru Airlines’ foreign air carrier family support plan is attached as Exhibit J.

A copy will be submitted to the National Transportation Safety Board (NTSB).

v. Nauru Airlines will collect the passenger manifest information required by 14 CFR Part

243 and will transmit that information to the U.S. Department of State in the event of an

aviation disaster. A summary of Nauru Airlines’ procedures is attached as Exhibit K.

w. The operation of Nauru Airlines will not result in a near term increase in fuel

consumption of ten million gallons or more. Therefore, grant of the authority requested

here will not constitute a “major regulatory action” under the Energy Policy and

Conservation Act of 1975, as defined in 114 CFR 313.4(a)(1).

x. The verification required by 14 CFR 302.4(b) is attached as Exhibit L.

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Nauru Airlines will be working with the appropriate FAA International Field Office to obtain

its Part 129 Operations Specifications as quickly as possible.

For the reasons set forth above, Nauru Airlines is fully qualified to operate the services

applied for and grant of the requested authority is in the public interest. Nauru Airlines requests

that the requested exemption remain in effect until the Department issues the requested permit.

Wherefore, based upon the foregoing information, Nauru Airlines respectfully asks 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.

Respectfully submitted,

David E. Schaffer

DAVID E SCHAFFER ASSOCIATES, LLC 9205 Hambletonian Place Vienna, VA 22182 Phone: +1-703-938-3062 Fax: +1-703-938-3063 Email: [email protected] Counsel for NAURU AIR CORPORATION DATED: October 25, 2016

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CERTICATE OF SERVICE I hereby certify that a copy of the foregoing application of Nauru Airlines for a foreign air carrier exemption and permit has been served by electronic mail this 25th day of October, 2016, upon each of the parties listed below. Robert Wirick Howard Kass American Airlines [email protected] [email protected] Alex Krulic Chris Walker Delta Airlines [email protected] [email protected] Dan Weiss Steve Morrissey United Airlines [email protected] [email protected] Paul Doell National Air Carrier Association [email protected] Tom Engle U.S. Department of State [email protected] Nancy S. Sparks Federal Express Corporation [email protected] Russell E. Pommer Atlas Air Inc. [email protected] Jennifer Nowak UPS [email protected] /s/ David E. Schaffer

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TABLE OF EXHIBITS Exhibit A Board of Directors Exhibit B Officers and key management personnel Exhibit C Certificate of Insurance Exhibit D Air Operators Certificate Exhibit E Maintenance Program Exhibit F Financial Summary Exhibit G Estimate of Financial Results Exhibit H Board Authorization Exhibit I Waiver of Liability under the Warsaw Convention Exhibit J Family Support Plan Exhibit K Passenger manifest information Exhibit L Verification

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EXHIBIT A

BOARD OF DIRECTORS

Name Residential Address Business Address Citizenship

Kevin Power 6 Cayman Place,

Parrearra QLD 4575

Level 2, 99 Creek Street,

Brisbane QLD 4000

Australian

Limay Uera Boe District, Republic

of Nauru

Nauru Airlines - Ground

Floor, Nauru International

Airport, Republic of Nauru

Nauruan

Susan Bernice

Hiram

Baitsi District,

Republic of Nauru.

Nauru Airlines - Ground

Floor, Nauru International

Airport, Republic of Nauru

Nauruan

Jianna Dame Nibok District,

Republic of Nauru

Nauru Airlines - Ground

Floor, Nauru International

Airport, Republic of Nauru

Nauruan

Melba Jaqueline

Akua

Nibok District,

Republic of Nauru

Nauru Airlines - Ground

Floor, Nauru International

Airport, Republic of Nauru

Nauruan

Milner Stephen Buada District,

Republic of Nauru

Nauru Airlines - Ground

Floor, Nauru International

Airport, Republic of Nauru

Nauruan

10

EXHIBIT B

OFFICERS AND KEY MANAGEMENT PERSONNEL

Name Residential

Address

Business Address Citizenship Position

Geoff

Bowmaker

3140 Great North

Road, Wollombi,

NSW 2327

Level 2, 99 Creek

Street, Brisbane

QLD 4000

Australian CEO

Kevin Power 6 Cayman Place,

Parrearra QLD

4575

Level 2, 99 Creek

Street, Brisbane

QLD 4000

Australian Chairman

Wendy

Bowden

21 Barcoorah

Street, WestLake

QLD 4074

Level 2, 99 Creek

Street, Brisbane

QLD 4000

Australian CFO

Ross Gibson 95 Hillview

Road, Mount

Cotton QLD

Level 2, 99 Creek

Street, Brisbane

QLD 4000

Australian Chief Pilot

Rod

Langdon

Unit 2/ 95

Welsby Parade,

Bongaree QLD

4507

89 Pandanus

Avenue, Brisbane

Airport QLD 4008

Australian Continuing

Airworthiness

Manager

Graham

Eather

33/14 Jefferson

Lane, Palm

Beach QLD 4221

Level 2, 99 Creek

Street, Brisbane

QLD 4000

Australian Ground

Operations

Manager

Brian

Douglas

7 Saffron Court,

North Lakes

QLD 4509

Level 2, 99 Creek

Street, Brisbane

QLD 4000

Australian Chief Inspector

(Safety Systems

Manager)

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EXHIBIT C CERTIFICATE OF INSURANCE

12

13

14

15

EXHIBIT D

AIR OPERATORS CERTIFICATE

16

17

18

EXHIBIT E

MAINTENANCE PROGRAM

19

EXHIBIT F

FINANCIAL SUMMARY

Nauru Airlines Group

Profit and Loss Statement

2015

Item Australiandollars Conversionrate U.S.dollars Passengerrevenue 50,321.956.70 0.768 38,647,262.75Cargorevenue 1,247,228.82 0.768 957,871.73Othertransportrevenue

14,734,238.47 0.768 11,315,895.14

Totalairtransportoperatingrevenues

66,303,423.99 0.768 50,921,029.62

Totalairtransportoperatingexpenses

58,103,031.03 0.768 44,623,127.83

Operatingresult 8,200,392.96 0.768 6,297,901.79Non-Operatingitems 5,907,311.03 0.768 4,536,814.87Profit(loss) 2,293,081.93 0.768 1,761,086.92

Balancesheet

2015

Item Australian Conversionrate U.S.dollars Currentassets 11,690,525.55 0.768 8,978,323.62Flightequipment 530,803.45 0.768 407,657.05Otherassets 2,239,281.43 0.768 1,719,768.14Totalassets 14,460,610.43 0.768 11,105,748.81Currentliabilities 6,631,872.05 0.768 5,093,277.73Otherliabilities 456,362.00 0.768 350,486.02Long-termdebt 0 0.768 0Capitalstock 10,066,930.93 0.768 7,731,402.95Retainedearnings -2,694,554.55 0.768 -2,069,417.89Totalliabilitiesandequity

14,460,610.43 0.768 11,105,748.81

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Profit and Loss

2016

Item Australiandollars Conversionrate U.S.dollars Passengerrevenue 47,568,046.70 0.7426 35,324,031.48Cargorevenue 1,394,369.64 0.7426 1,035,458.89Othertransportrevenue

16,126,716.57 0.7426 11,975,699.72

Totalairtransportoperatingrevenues

65,089,132.91 0.7426 48,335,190.10

Totalairtransportoperatingexpenses

56,466,225.68 0.7426 41,931,819.19

Operatingresult 8,622,907.23 0.7426 6,403,370.91Non-Operatingitems 5,808,292.03 0.7426 4,313,237.66Profit(loss) 2,814,615.20 0.7426 2,090,133.25

Balance sheet

2016

Item Australian Conversionrate U.S.dollars Currentassets 16,439,566.67 0.7426 12,208,022.21Flightequipment 1,557,746.25 0.7426 1,156,782.37Otherassets 5,256,545.47 0.7426 3,903,510.67Totalassets 23,253,858.39 0.7426 17,268,315.24Currentliabilities 11,599,942.11 0.7426 8,614,117.01Otherliabilities 1,466,924.70 0.7426 1,089,338.28Long-termdebt 0 0.7426 0Capitalstock 10,574,593.93 0.7426 7,852,693.45Retainedearnings -387,602.35 0.7426 -287,833.51Totalliabilitiesandequity

23,253,858.39 0.7426 17,268,315.24

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EXHIBIT G

ESTIMATE OF FINANCIAL RESULTS

FinancialSummaryAUD USD

Revenue 3,039,341$ 2,127,539$less:VariableDirectOperatingCosts 1,978,847$ 1,385,193$

NetContribution 1,060,494$ 742,346$%Contribution 34.9% 34.9%

Passengers&RevenueFrom To Pax/week Weeks USDFare E/Rate AUDFare RevenueGUM PNI 50 52.143 350$ 0.7000 499.71$ 1,302,830$PNI GUM 50 52.143 350$ 0.7000 499.71$ 1,302,830$GUM MAJ 5 52.143 582$ 0.7000 831.71$ 216,840$MAJ GUM 5 52.143 582$ 0.7000 831.71$ 216,840$

3,039,341$ThepassengersperweekhavebeenbasedonGuamCustomsandAgricultureDeclarationForm,MonthlyArrivalsApril2016Wehaveassumeda25%shareofthecurrentmarketslistedabove.Wehavenotallowedforanyincrementalsalesfromourcurrentports.

FaresFaresasperGalileo26August2016

Return Oneway Local YieldMixWeighted

FareMAJGUM 1,552$ 776$ No 30% 233$

1,025$ 514$ Yes 50% 257$924$ 462$ Yes 20% 92$

582$MAJPNI 964$ 482$ 30% 145$

616$ 308$ 50% 154$512$ 256$ 20% 51$

350$

DirectOperatingCostsBasedonrecenthistoricalcosts

$/hour Hours CostsAircraftFuel 2,960.00$ 252 745,920$AirNavigationCharges 107.70$ 252 27,141$GroundHandlingCharges 1,350.34$ 252 340,286$Landing&AirportCharges 557.87$ 252 140,584$Catering 890.88$ 252 224,502$HeavyMaintenanceReserves 751.77$ 252 189,446$EngineeringCosts 1,234.00$ 252 310,968$

1,978,847$

FinancialAnalysis-GuamExtension

22

EXHIBIT H

BOARD AUTHORIZATION

23

EXHIBIT I WAIVER OF LIABILITY LIMITS UNDER THE WARSAW CONVENTION

DocketOST95-236U.S.DepartmentofTransportationOfficeoftheSecretaryofTransportation AGREEMENT

Theundersignedcarriers(hereinafterreferredtoas"theCarriers")herebyagreeasfollows:1. EachoftheCarriersshall,effectiveMay16,1966,includethefollowinginitsconditionsofcarriage,includingtariffs

embodyingconditionsofcarriagefiledbyitwithanygovernment:

"TheCarriershallavail itselfofthe limitationof liabilityprovidedintheConventionfortheUnificationofCertainRules

RelatingtoInternationalCarriagebyAirsignedatWarsawOctober12th,1929,orprovidedinthesaidConventionasamendedbytheProtocolsignedatTheHagueSeptember28th,1955.However,inaccordancewithArticle22(1)ofsaidConvention,orsaidConventionasamendedbysaidProtocol,theCarrieragreesthat,astoallinternationaltransportationbytheCarrierasdefinedinthesaidConventionorsaidConventionasamendedbysaidProtocol,which,accordingtothecontractofCarriage,includesapointintheUnitedStatesofAmericaasapointoforigin,pointofdestination,oragreedstoppingplace

(1) Thelimitofliabilityforeachpassengerfordeath,wounding,orotherbodilyinjuryshallbethesumofUS$75,000inclusiveoflegalfeesandcosts,exceptthat,incaseofaclaimbroughtinaStatewhereprovisionismadeforseparateawardoflegalfeesandcosts,thelimitshallbethesumofUS$58,000exclusiveoflegalfeesandcosts,

(2) TheCarriershallnot,withrespecttoanyclaimarisingoutofthedeath,wounding,orotherbodily injuryofapassenger,availitselfofanydefenseunderArticle20(1)ofsaidConventionorsaidConventionasamendedbysaidProtocol.

NothinghereinshallbedeemedtoaffecttherightsandliabilitiesoftheCarrierwithregardtoanyclaimbroughtby,onbehalfof,orinrespectofanypersonwhohaswillfullycauseddamagewhichresultedindeath,wounding,orotherbodilyinjuryofa

passenger,'

2. EachCarriershall,atthetimeofdeliveryoftheticket,furnishtoeachpassengerwhosetransportationisgovernedbytheConvention,ortheConventionasamendedbytheHagueProtocol,andbythespecialcontractdescribedinparagraph1,thefollowingnotice,whichshallbeprintedintypeatleastaslargeas10pointmoderntypeandininkcontrastingwiththestockon(i)eachticket;(ii)apieceofpapereitherplacedintheticketenvelopewiththeticketorattachedtotheticket;or(iii)ontheticketenvelope:

"ADVICETOINTERNATIONALPASSENGERONLIMITATIONOFLIABILITYPassengersonajourneyinvolvinganultimatedestinationorastopinacountryotherthanthecountryoforiginare

advisedthattheprovisionsofatreatyknownastheWarsawConventionmaybeapplicabletotheentirejourney,includinganyportionentirelywithinthecountryoforiginordestinationForsuchpassengersona journeyto, from,orwithanagreedstoppingplace in theUnitedStatesofAmerica, theConventionandspecial contractsof carriageembodied inapplicabletariffsprovidethattheliabilityof[certain[(nameofcarrier)andcertainother]carrierspartiestosuchspecialcontractsfordeathoforpersonalinjurytopassengersislimitedinmostcasestoprovendamagesnottoexceedUS$75,000perpassenger,andthatthisliabilityuptosuchlimitshallnotdependonnegligenceonthepartofthecarrier.Forsuchpassengerstravelingbyacarriernotapartytosuchspecialcontractsoronajourneynotto,from,orhavinganagreedstoppingplaceintheUnitedStatesofAmerica,liabilityofthecarrierfordeathorpersonalinjurytopassengersislimitedinmostcasestoapproximatelyUS$10,000orUS$20,000.

ThenamesofCarrierspartiestosuchspecialcontractsareavailableatallticketofficesofsuchcarriersandmaybeexaminedonrequest.

Additionalprotectioncanusuallybeobtainedbypurchasinginsurancefromaprivatecompany.Suchinsuranceisnotaffectedbyanylimitationofthecarrier'sliabilityundertheWarsawConventionorsuchspecialcontractsofcarriage.Forfurtherinformationpleaseconsultyourairlineorinsurancecompanyrepresentative."

3[ThisAgreementwasfiledwiththeCivilAeronauticsBoardoftheUnitedStates.TheBoardapproveditbyOrderE-23680,adoptedMay13,1966,TheAgreement(Agreement18900)becameeffectiveMay16,1966.OnJanuary1,1985,thisAgreementbecametheresponsibilityoftheDepartmentofTransportation(DOT)byoperationoflaw.]

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4. ThisAgreementmaybesignedinanynumberofcounterparts,allofwhichshallconstituteoneAgreement.AnyCarriermaybecomeapartytothisAgreementbysigningacounterparthereofanddepositingithDOT

5. AnyCarrierpartyheretomaywithdrawfromthisAgreementbygiving

twele2)moths'writtennoticeofwithdrawaltoDOTandtheotherCarrierspartiestotheAgreement.

(SignatureandDate)*Eitheralternativemaybeused.(PrintedNameandTitle)

(NameandAddressofCarrier)

OSTForm4523(FormerlyCABForm263)

25

EXHIBIT J

FAMILY SUPPORT PLAN

1. Nauru Airlines will publicize through local, national and international news media a reliable,

toll-free telephone number and shall provide sufficient staff to accept telephone calls on such

number from families of passengers involved in an aircraft accident resulting in a major loss of

life.

2. As soon as information becomes available on each passenger, Nauru Airlines will notify that

passenger’s family, subject to the provisions of Section 3 of this Family Assistance Plan.

Notification to family members will be made prior to release of the passenger’s name to the

public and, to the extent practical, in person. Such notification will be made by (i) suitably

trained personnel; or (ii) the organization designated by the National Transportation Safety

Board (NTSB) pursuant to 49 U.S.C. 1136(a)(2), currently the American Red Cross.

3. Notification will be made to families as soon as practicable after Nauru Airlines has verified

the identity of a passenger, whether or not the names of all of the passengers have been verified.

4. Nauru Airlines will provide immediately upon request, and will update, a list (based on the

best available information at the time of the request) of the names of the passengers aboard the

aircraft (whether or not such names have been verified) to the director of family support services

designated for the accident by the NTSB under 49 U.S.C. 1136(a)(1) and the organization

designated by the NTSB pursuant to 49 U.S.C. 1136(a)(2), currently the American Red Cross.

5. Nauru Airlines will consult with the family of each passenger about the disposition of any

remains and personal effects of the passenger that are within Nauru Airlines’ control.

6. If requested by the family of a passenger, Nauru Airlines will return to the family any

possession (regardless of its condition) of that passenger that is within Nauru Airlines’ control,

unless the possession is needed for the accident investigation or a criminal investigation.

26

7. Nauru Airlines will retain for not less than eighteen (18) months after the date of the accident

any unclaimed passenger possession that is within Nauru Airlines’ control.

8. Nauru Airlines will consult the family of each passenger about the construction of any

monument to the passengers to be built in the United States, including any inscription on the

monument.

9. Nauru Airlines will treat the families of nonrevenue passengers the same as the families of

revenue passengers.

10. Nauru Airlines will work with any organization designated by the NTSB pursuant to 49

U.S.C. 1136(a)(2) (currently, the American Red Cross) on an ongoing basis to ensure that

families of passengers receive an appropriate level of services and assistance following an

accident.

11. Nauru Airlines will provide reasonable compensation to any organization designated under

49 U.S.C. 1136(a)(2) (currently, the American Red Cross) for services and assistance provided

by the organization.

12. Nauru Airlines will assist the family of any passenger in traveling to the location of the

accident and provide for the physical care of the family while the family is staying at such

location.

13. Nauru Airlines will commit sufficient resources to carry out its family assistance plan.

14. Nauru Airlines will provide adequate training to its employees and agents to meet the needs

of survivors and family members following an accident.

15. In the event Nauru Airlines volunteers assistance to United States citizens within the United

States with respect to an aircraft accident outside the United States involving a major loss of life,

27

Nauru Airlines will consult with the NTSB and the Department of State on the provision of

assistance.

16. Nauru Airlines will, in the case of an accident that results in significant damage to a man-

made structure or other property on the ground that is not government-owned, promptly provide

notice, in writing, to the extent practicable, directly to the owner of the structure or other

property about liability for any property damage and means for obtaining compensation.

At a minimum, the written notice shall advise an owner to (i) contact the insurer of the property

as the authoritative source for information about coverage and compensation; (ii) not rely on

unofficial information offered by Nauru Airlines for accident-site property damage; and (iii)

obtain photographic or other detailed evidence of property damage as soon as possible after the

accident, consistent with restrictions on access to the accident site.

17. Nauru Airlines will, in the case of an accident in which the NTSB conducts a public hearing

or comparable proceeding at a location greater than 80 miles from the accident site, ensure that

the proceeding is made available simultaneously by electronic means at a location open to the

public at both the origin city and destination city of Nauru Airlines’ flight if that city is located in

the United States.

18. Nauru Airlines can be contacted at any time the airline is providing a flight to or from the

United States or its territories or possessions at the following number - +61 7 3211 9659.

19. In carrying out this plan, Nauru Airlines may utilize the services of Aviem International, Inc.

and the Family Assistance Foundation.

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EXHIBIT K

PASSENGER MANIFEST INFORMATION

SUMMARY OF 14 C.F.R. 243 PROCEDURES

(PASSENGER MANIFEST COLLECTION PROCEDURES)

NAURU AIRLINES

Introduction

This summary is submitted by Nauru Airlines to the U.S. Department of Transportation in

accordance with 14 C.F.R. Part 243.

Summary of Procedures

For each flight to or from Guam, Nauru Airlines will collect, or cause to be collected, the full

name of each passenger who is a U.S. citizen before that passenger boards the aircraft. Any U.S.

citizen who does not provide this information will not be permitted to board.

Nauru Airlines will request an emergency contact telephone number and name from U.S. citizen

passengers. As the provision of this information is voluntary, Nauru Airlines will not deny

boarding to any passenger who refuses to provide it.

Nauru Airlines will store the information collected until passengers on the flight segment

disembark. This information will be kept confidential and will not be used for purposes other

than those described herein or disclosed to any entity except as required and permitted by law.

In the event of an aviation disaster, Nauru Airlines will contact the Managing Director of

Overseas Citizen Services, Bureau of Consular Affairs, U.S. State Department, by telephone at

(202) 647-1512. Not later than three hours after confirmation of such a disaster, Nauru Airlines

will transmit to the U.S. State Department and, upon request, the National Transportation Safety

Board, the information collected in accordance with these procedures.

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24 Hour Contact Information

Nauru Airlines can be contacted at any time the airline is providing a flight to or from the United

States or its territories or possessions at the following number +61 7 3211 9659 concerning

information gathered in accordance with the above procedures. Nauru Airlines will file any

change to this number on or before the date the change is made.

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EXHIBIT L

VERIFICATION

PursuanttoTitle18UnitedStatesCodeSection1001,I, in

my individual capacity and as the authorized representative of the pleader, have not in any

mannerknowinglyandwillfullyfalsified,concealedorfailedtodiscloseanymaterialfactormade

anyfalse, fictitious,or fraudulentstatementorknowinglyusedanydocumentswhichcontain

such statements in connection with the preparation, filing or prosecution of the pleading. I

understandthatanindividualwhoisfoundtohaveviolatedtheprovisionsof18U.S.C.section

1001shallbefinedorimprisonednotmorethanfiveyears,orboth.

Signed:

Title:

Date: October25,2016

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