The Principality of Zairon is an independent territory in C-Sector governed by the royal family of Ishida. It was led by Emperor Ishida Tetsuya until his assassination, whereupon his youngest son Hiro took the throne.
The general public believed Emperor Ishida was killed by his eldest son Ryo Tetsudo, but in actuality The Emperor was murdered by his wife, Empress Ishida Li Na Katsumi, who framed her stepson Ryo so that her own son could take the throne. 
GNN reported that the Principality of Zairon is at war with the Republic of Pyr. The Galactic Authority would offer humanitarian aid to refuges fleeing the area but stated that since the problems where "a regional conflict between two independent territories" they could not bring in military involvement. 
The greatest defeat of the Zairon fleet was dealt by the Pyrian forces, in one of royal Commander Akita's assaults. Their fleet was led into a trap which caused the destruction of 3 fleet Destroyers, 48 Fighters and over 26 thousand lives lost. 
As the war grew worse and worse for Zairon, Ryo was able convince Hiro that use of blink drive in their fleet would turn the tide of war. He also was able to make Hiro question his mother and realize it was Empress Katsumi who had murdered their father. Hiro was then put under house arrest by his mother. It was also revealed that Katsumi had made a deal with the Seers in order to predict Ryo's actions which lead to Ryo being arrested and his allies in the Zairon ranks killed.
During, Ryo's trial that convicted Ryo to death, Hiro was freed from his room by Five and he put a stop to the trial and informed them of Empress Katsumi's treason. Hiro then stepped down and Ryo became Emperor. His first decree as Emperor was 'Korose'. The enactment of the quick deaths of all those who had been involved with the past Royal Court, including Empress Katsumi, Hiro, Hansmeed, and The Seers.
Ryo's next act as Emperor was to cause conflict with the corporations that where financially backing Pyr. He had the Council of Corporations targeted. He arrived as a new delegation, appearing as an ambassador for the autonomous worlds. Then later had their station, EOS-7 overloaded, causing many explosions, while he took off with the Raza's blink drive, with the intent to reverse engineer it and supply his fleet.