These appear throughout the game after doing a certain task (shooting X number of fighters down quickly, allowing a boss to run over an enemy tank, etc.) You will actually have to grab these not just make them appear, so don't shoot them!
The best place to get this one was Raiden Fighter Jet. Play Level 5 and set the difficulty to practice. After you pass the three domes that hold the Miclus, there is a sliver metal bar across the middle of the screen. Go to that and go left to right/right to left across it to make 9-10 fairies appear.