There is no town called Starflight. The 'Starflight Express' is a magical train used by the Celestials. If you are told to go there during the main game, first you will find it on the map between Angel Falls and Stornway.

Starflight happened in 1986.

Starflight was created in 1986.

If you're at the point in the game where you've got full control over the Starflight Express, then the observatory has already ceased to exist.

get the starflight exspress do story missions and grottos