[Peetwo]

YSSY CAPA conference; & more on Rustle's report -   

Via Ironsider & the Oz today...

Aviation industry in rude health
ROBYN IRONSIDE
The sector has never been in better economic shape with even US billionaire Warren Buffett now investing in airline shares.

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The aviation industry has never been in better economic shape with even US billionaire Warren Buffett now investing in airline shares.

The annual Centre for Aviation conference in Sydney heard a “new benchmark” had been created by the likes of Qantas, which remained on track for a record full-year profit of between $1.55 billion and $1.6bn.

Agri-nomics Australia director Barry Parsons said it was not that long ago airlines had been considered poor investments.

“Now you’ve got Warren Buffett investing in shares and the main local airline here has a return on invested capital of about 21 per cent,” Mr Parsons said.

“It’s a great business, a great investment and that’s going to be hard to maintain.”

He said in aviation, there was always a “crisis around the corner” but for the moment it had never been better.

“Numbers-wise, net profit reporting levels are up quarter on quarter, operator cash flows are up on prior years and fares are climbing,” Mr Parsons said.

“Fuel’s up 55 per cent year on year, but most of that’s being passed on to the premium cabin.”

International Air Transport Association data for May-June 2018 also showed passenger demand trending upwards and freight volumes increasing.

Regional Express deputy chairman John Sharp said the biggest threat to the industry’s growth and profitability was US President Donald Trump.

“The one thing in a global sense that threatens it all is Mr Trump and trade wars, and that has the potential to impact all of us,” Mr Sharp said. “We as a regional airline will not be safe from that, we will be affected.”

He also nominated the pilot shortage, airport fees and the cost of complying with Civil Aviation Safety Authority regulations as major challenges for the industry.

“When I first joined Rex in 2004, we had one captain who managed all of our compliance work,” Mr Sharp said.

“That one part-time person is now 14 people. It’s those additional costs that compliance imposes on you in a regional market that makes our viability more difficult. It’s almost impossible for anyone to start up against us.”

Ian Douglas from the International Air Services Commission, which allocates capacity entitlements to Australian airlines for the operation of international services, said there was evidence that regulation was actually working to airlines’ advantage.

“Constraints on capacity growth in some environments is actually providing some external limits on the speed of growth and that’s helping to boost yields,” Mr Douglas said.

“There is a sense the market is comfortably doing well.”

Next here is a link for the, Greg Russell led, expert panel report: reference - Report of the Expert Panel on Aviation Skills & Training - June 2018

A couple of extracts of interest, intrigue, contention and possible IOS derision, mixed with disgust...  

4.13 Regulation.

The panel was well aware that the industry was on ‘regulatory reform overload’ and is keen to see the long-running reform program completed. Important steps are now underway to finish the program and to engage more effectively with industry. The Panel hopes that this review will make a contribution to that process with respect to the urgent need to improve aviation training.

There is much to be done.

Australia has departed from the regulatory approach of major overseas regulators in some important areas (notably recognition of technical qualifications) which has led to issues in relation to the sourcing and training of overseas pilots and engineers, the ability of Australian trained personnel to take up overseas employment and the opportunities for Australian companies to undertake maintenance on overseas registered aircraft in Australia.

There are further ongoing transitioning issues between the old and new regulations which is causing confusion especially in the training area (CASR Part 61).

As noted earlier the resourcing of some areas of CASA appeared inadequate given the organisation’s need to undertake mandatory requirements in relation to audits, checks and examinations. As a consequence of the shortage of CASA’s flying operations inspectors the industry had experienced delays which in turn has impacted on the ability of airlines to quickly move forward in filling staffing gaps.

The Panel believed the alignment of Australia’s maintenance regulations with those of EASA would best support industry expansion, enhance Australia’s reputation as an international training provider, and provide smoother employment paths. Consideration of the Federal Aviation Administration (FAA) regulations seemed to be generally the best way forward for the alignment of pilot training. CASA’s current regulatory structure already allows for acceptance of EASA standards and qualifications and therefore this avenue could be adopted, again without undue additional effort.

Some stakeholders believed regulatory compliance costs were impacting on the economic viability of some training organisations particularly those smaller operators who are unable to effectively fulfil all new Air Operator Certificate (AOC) requirements with respect to Safety Management Systems and potential Fatigue Risk Management System changes. This is due to having to meet more than one regulatory framework and more actual audits for no real benefit. Under the FAA systems, some flight instructors can conduct training activities (in accordance with the scope of their approvals) without the need for an over-arching AOC construct. This then allows them more flexibility and a lower overhead cost. A similar model could be adopted within the CASA system without large regulatory change.

On a positive note it is also clear that an important part of the reform program is the way CASA is working with industry and the better consultative mechanisms that are now in place. The Panel acknowledges in recent times CASA has changed its approach to regulatory reform and industry engagement to a more positive process but the Panel also acknowledge the significant amount of work that remains to be done. 

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Short term recommendations to government

Regulation
The Panel recommends government should prepare an overview which assesses the impact of Australia’s aviation regulations on the sustainability of the industry including the alignment with EASA for maintenance and FAA for pilot training, regulatory prescription, transitioning from old to new regulations and shortages of specialist regulatory personnel is a major contributing factor which is inhibiting the supply of suitably qualified personnel.
The Panel agrees that the regulatory reform program be completed as soon as practicable and suggests to CASA’s Aviation Safety Advisory Panel that it set up a working group with

industry to make recommendations to identify ways to reduce the regulatory impact on training and encouraging streamlined pathways to achieving flight examiner qualifications.

CASA is asked to consider the following issues:

• The number of flight examiner positions is inadequate and is proving to be a bottleneck to checking pilots to line. It is suggested that this issue be referred to the Aviation Safety Advisory Panel so that the regulations can be streamlined.
• Adopt the European Aviation Safety Agency maintenance regulations to harmonise Australian regulations with major aviation countries.
• Review if the flying experience of RAAus pilots can be recognised in part as experience for progression into the commercial industry.
• Consider the implementation of a system for small training organisations similar to that operated by the FAA so that training could occur outside the requirements of holding an AOC (and the requirements for SMS and FRMS) systems).
• The CASA CEO and the Aviation Safety Advisory Panel review the flight examiner upgrade pathways and examiner/instructor qualifications and streamline the regulatory process with a view to encouraging more pilots to take up these roles.

 "...CASA is asked to consider..."  - What kind of a soft cock approach is that? If you actually needed anymore proof that TAAAF is now fully beholden to the regulator go no further than that comment (where's the bucket "K"? -   ). Ironically that comment fully endorses the efforts of AGAA at the Wagga summit to push through ASAP a fundamental change to the Act.

Speaking of the AGAA; I note that at Appendix 2 & 4 that there is no inclusion of any of the foundation and/or key members of the AGAA:

Appendix 4: Consultation with additional stakeholders

In addition to the stakeholders represented on the Panel, consultations were undertaken with the following additional stakeholders:

• Civil Aviation Safety Authority
• Department of Education and Training
• Australian Skills Quality Authority
• Flight Training Adelaide
• Royal Aeronautical Society Australian Division
• University of New South Wales
• University of Southern Queensland
• Innovation & Business Skills Australia
• Swinburne Institute of Technology
• Small to medium General Aviation maintenance companies
• New South Wales Department of Industry
• Aerial Agricultural Association of Australia
• Australian Helicopter Industry Association
• Recreational Aviation Australia
• Royal Federation of Aero Clubs
• Skills Canberra, Chief Minister, Treasury and Economic Development Directorate, ACT Government
• Queensland Department of Education and Training
• Workforce Development & Training (Skills Tasmania), Department of State Growth
• Western Australia Department of Training and Workforce Development
• NT Department of Business
• SA Department of State Development
• VIC Department of Education and Training

Information on the International Air Transport Association’s approach to the skill shortages was also considered by the Panel.

   
How is it possible for anyone in industry to attest to the veracity of the findings of this fluffy 'snowjob' report, when the experts and key associations of the GA industry sector have not been included to provide input? Totally unforgiveable! - TICK...TOCK 4G!


MTF...P2