ChairmansForeword

WhenIwasfirstapproachedbythethenDeputyPrime
Minister,theHonMarkVaileMP,tochairtheGeneral
AviationIndustryActionAgendaStrategicIndustry
LeadersGroup,myexperiencewiththeindustrywas
limitedtothatofanappreciativepassengerovermany
yearsoftravelinremoteandisolatedpartsofboth
Australiaandoverseasduringmytimewiththe
petroleumindustry.ThroughtheworkoftheLeaders
GroupIdiscoveredafascinatinganddiverseindustry;
indeedanoldindustrybyAustralianstandardsfacinga
rangeofbusinesschallengesinanenvironmentthathas
changedfundamentallyoverthelasttwentyyears.
Theskillsbuiltupthroughthepostwaryearsfacilitated
thematuringofaninvaluableAustralianindustry;an
industryresponsibleforprovidingmedicalevacuations
forthesickandinjuredAustraliansinremoteareas,for
fightingsummerbushfires,foragriculturalspraying,
surveyingandmustering,fortransportoverthelong
distancesoftheAustralianoutbackandfortrainingthe
pilotsthatgoontocareersincommercialairtransport.
Butthetechnicalskillsthathavebuiltthiscapacityhave
notembracedwhattheindustryneedstomanage
change.Theenvironmentforaviationoperatorsin
Australiahaschangedsignificantlysincethe1980s.
Whilethishascreatedontheonehandnumbersof
growingairportsandformanycheaperflights,the
predominantlycommercialforcesdrivingthisevolution
haveprovedproblematic,especiallyforthesmall
businessesinthesector.
Havingidentifiedthemainchallengesfacingthe
industry,theStrategicIndustryLeadersGrouphas
soughttoestablishatrackthroughthemwithout
underminingthecommercialenvironmentthathasbeen
soimportanttotheprovisionofgrowthopportunities.
Indoingso,weconsultedwidelyandaimedtoensure
thatnosingleviewemanatingfromtheindustrywas
excludedfromouranalysis.


Ourconsultationsidentifiedfourmajorthemesas
recurringissuesintheGeneralAviationindustry.The
firstofthesewasthechallengeposedbysecondary
airportprivatisationintheearly1990s.Thissituation
remainsuncomfortablynewformanyoperatorsand
relationshipsbetweentenantsandairportoperatorsare
attimesneitherconstructivenorconducivetotheir
mutualinterests.
Thesecondwasskills.Australiansjustlycommandhigh
regardintheaviationworldbuttheboomincommercial
airlineactivityoverthepastfewyearshascreated
shortagesofpilotsandaircraftengineers.InAustralia,
smallbusinessesinparticulararestrugglingtorecruit
andretainskilledpersonnel.
Thethirdwasregulation.Aviationis,byitsnatureand
consistentwithcommunityexpectations,highly
regulated.Safetyisnotnegotiable.Achievingthehigh
levelsofsafetyrightlyexpectedoftheindustrywhile
notimposingunnecessarycostsisanongoingchallenge.
Andfinally,theGeneralAviationaircraftfleetisageing.
Onaverage,smallpistonengineaircraftinthe
Australianfleetarearoundthirtyyearsold.Wholesale
modernisationofthefleetoverthenexttenyearsisa
compellingneedtobreakanageingcontinuum.Many
businessesseethecostofthisasprohibitive.
Thisreportidentifiesthefactorsthatbothdriveand
testtheAustralianGeneralAviationindustryandthe
opportunitiesopentoimproveitsperformance.Itis
impossibletoexaggeratetheimportanceofGeneral
AviationtoAustralia.Itisinournationalinterestthat
thisindustry,togetherwithgovernment,plansand
buildsforthefuture.
DrJRolandWilliams,CBE,Chair,StrategicIndustry
LeadersGroup

TheStrategicIndustryLeadersGroup

StrategicIndustryLeadersGroupChair
DrJRolandWilliamsCBEwasappointedbythethenDeputyPrime
MinisterandMinisterforTransportandRegionalServices,the
HonMarkVaileMPtoleadtheGeneralAviationIndustryActionAgenda
StrategicIndustryLeadersGroup.

HeiscurrentlyanonexecutiveDirectorofOriginEnergyLimitedandof
BoralLimited.HewaspreviouslyChairmanandChiefExecutiveofShell
AustraliaLimited,ManagingDirectorofShellInternationalGas,President
ofShellCoalInternational,DirectorofWoodsidePetroleumLimited,
ChairmanofAustralianMagnesiumCorporationLimited,Presidentofthe
InstitutionofChemicalEngineersinAustralia,ChairmanoftheAdvisory
CounciltotheCentreforEnergyandResourcesLawoftheUniversityof
Melbourne,PresidentoftheBusiness/HigherEducationroundtableof
AustraliaandamemberoftheCounciloftheAustralianStrategicPolicy
Institute.

DrWilliamsalsoholdsaChemicalEngineeringdegreeandaDoctorateof
Philosophy.HewasmadeaCommanderintheOrderoftheBritish
Empirein2000forservicestoBritishAustralianrelations.

StrategicIndustryLeadersGroupMembers

MrTonyBrandistheChiefEngineerandaDirectorof
HorshamAviationServices.MrBrandhasover25years
experienceinmaintainingGeneralAviationaircraft.
HorshamAviationServicesispresentlyresponsiblefor
themaintenanceofmorethan130aircraft.
MrBrandrepresentsGeneralAviationontheboardof
theAviationMaintenanceRepairOverhaulBusiness
Association.Hehasover30yearsflyingexperience,
holdsaCommercialPilotsLicenceandhasaninstructorratingthrough
RecreationalAviationAustralia.

MrGerardCampbellistheChiefExecutiveOfficerof
ArcherfieldAirportCorporation,apositionhehasheld
sinceJune2006.MrCampbellwasformerlythe
ManageroftheRoyalQueenslandAeroCluband,
underhisdirection,theClubbecamethefirstmajor
pilottrainingorganisationinQueenslandtosecurea
contracttotrainpilotsforamajoroverseasairline.
MrCampbellhasawealthofexperienceintheaviation
industry,includingstintswiththeAirlineAcademyofAustraliaand
AviationTrainingforEngineers.

MsMarjDavisOAMisPresidentoftheRoyalFederation
ofAeroClubsofAustraliaandisactiveintheGeneral
Aviationindustry,particularlytheflighttrainingsector.
MsDaviscurrentlyholdsrepresentativepositionson
theAustralianAviationCouncil,AustralianGeneral
AviationAdministration(formerlyLeisureFlight
Australia)andvariousGovernmentaviationbodies.

MsDavisisPresidentoftheOldBarHeritageAirstripCommitteeandhas
beenPresidentoftheManningRiverAeroClubinTareefor20years.Ms
DaviswasawardedtheMedaloftheOrderofAustraliain2007serviceto
thedevelopmentoftheaviationindustrythrougharangeofexecutive
andadministrativeroles,particularlywithaeroclubs.

MrJohnGardonisthePresidentofRecreationalAviation
Australia.MrGardonservedtheRoyalAustralianAirForce,
for30years,wherehehadbothoperationalandpolicy
experience.HeisacurrentCommercialpilotandownsbotha
GAandaRecreationalaircraft.HecurrentlyholdsaChief
FlyingInstructorandPilotExaminerratings.Healsohasa
MasterDegreeinStrategicStudies.

MrColRodgersisthePresidentoftheAircraftOwners
andPilotsAssociationofAustralia(AOPA),andhashad
extensiveexperienceintheGeneralAviationindustry.
AOPAhasbeenthevoiceofrecreationalflyingand
GeneralAviationforover50years.

MrRodgersalsoholdsamultienginecommand
instrumentratingwithturbojetendorsement.

MrDennisWisbeyistheManagingDirectorofAeroService
PtyLtd,amaintenanceorganisationlocatedatParafield
Airport,Adelaide.
Overthelast40yearsMrWisbeyhasbeeninvolvedwiththe
maintenance,coordination&managementofaircraftrepairs,
servicing,modification,upgradesandinspectionofageing
aircraft.MrWisbeyhasalsobeenwidelyinvolvedinGeneral
Aviationindustryorganisationsandtrainingestablishments.

Australiahaslongbeenaleaderinworld
aviationandtheGeneralAviationindustry
isanindustryofgreatimportancetothe
nation.Ourgeographydemandsthatthis
remainsso.Itishoweveranoldindustryin
Australiantermsandpartsofitare
strugglingtocopewiththepaceandscale
ofchangeinamodernglobalcommercial
environment.
Identificationofwherechangeisneededto
allowtheindustrytodealwithcurrent
issuesandprepareforthefutureisthe
basisofthisreport.Tothisend,thereport
containsrecommendationsforgovernments
atalllevelsandfortheindustryitselfand
associatedentities.

Contents

ExecutiveSummary ...................................................................... 10
1
WhatisGeneralAviation? ..................................................... 10
2
TheStateofGeneralAviation ................................................ 11
3
Airports ............................................................................. 12
4 People ............................................................................... 13
5
Regulation .......................................................................... 14
6 Aeroplanes ......................................................................... 15

SummaryofRecommendations ....................................................... 16

1:Introduction ............................................................................. 19
1.1
ActionAgendas ................................................................ 19
1.2
TheGeneralAviationIndustryActionAgenda ....................... 19
1.3
DevelopmentoftheGeneralAviationIndustryActionAgenda . 20
1.4
TermsofReference ........................................................... 20

2:WhatisGeneralAviation? ........................................................... 23
2.1
DefinitionalIssues ............................................................ 23
2.2
AnIndustryDealingwithChange ........................................ 25
2.3
TheDiversityofGeneralAviation ........................................ 26
2.4
SupportingtheCommunity................................................. 28

3:TheStateoftheIndustry ........................................................... 31
3.1
IndustryTrends ................................................................ 31
3.2
TheStructureandSustainabilityoftheIndustry.................... 33
3.3
TheCommercialisationoftheIndustry ................................. 34
3.4
ExportofPilotTrainingServices ......................................... 34
3.5
ExternalCompetitionfortheGeneralAviationIndustry ......... 36
3.6
OverseasExperience ......................................................... 37

4:RoleofGovernments ................................................................. 39
4.1
Background ..................................................................... 39
4.2
Commonwealth ................................................................ 39
4.3
StatesandTerritories ........................................................ 39
4.4
LocalGovernments ........................................................... 40

5:AirportAccess .......................................................................... 42
5.1
Background ..................................................................... 42
5.2
AirportCosts ................................................................... 42
5.3
AirportTenantRelationships ........................................... 43
5.4
AirportPlanning ............................................................... 44
5.5
LocalGovernmentControlledAirports ................................. 45

6:EducationandSkillsintheGeneralAviationSector ........................ 48
6.1
Pilots .............................................................................. 48
6.2
CurrentIndustryInitiatives ................................................ 49
6.3
TrainingFramework .......................................................... 51
6.4
GovernmentAssistanceforPilotsTrainingintheVocational
EducationandTrainingSector .................................................... 52
6.5
GovernmentandIndustryAssistanceforPilotsTraininginthe
HigherEducationSector ............................................................ 53
6.6
SkillsAustralia ................................................................. 55
6.7
Engineers ........................................................................ 56
6.8
RegulatoryIssuesAffectingPilotTraining ............................ 58
6.9
RegulatoryIssuesaffectingEngineerTraining ...................... 59

7:GeneralAviationRegulatoryEnvironment ..................................... 61
7.1
Overview ......................................................................... 61
7.2
SafetyRegulation ............................................................. 61
7.2
SelfAdministration ........................................................... 63
7.3
SecurityFramework .......................................................... 64

8:InvestmentandFleetRenewal .................................................... 67
8.1
Overview ......................................................................... 67
8.2
EconomicIssues ............................................................... 68
8.3
TaxationDepreciationIssues .............................................. 70
8.4
TheCapetownConvention .................................................. 72
8.5
DevelopmentsinAircraftManufacturingTechnologies ........... 73
8.6
NewNavigationTechnologies ............................................. 75

References .................................................................................... 77

Abbreviations ................................................................................. 78

AppendixA:SubmissionprocessfortheGeneralAviationIndustryActionAgenda.... 79

ExecutiveSummary
1

WhatisGeneralAviation?

ThetermGeneralAviation,orGA,referstoarangeofaviationrelated
activities,individualsandbusinesses,primarilyoccurringinsmalleraircraft
andatsecondaryairports.
Theseactivitiesinclude:
Charterandlowcapacitypassengercarryingoperations
Businessflights
Aerialagriculture
Commercialpilottraining
Aeromedical,searchandrescue,aerialfirefightingandcoastwatch
Otheraerialworksuchassurveyingandphotography
Aircraftmaintenanceandrepairwork
Privatepilottraining;
Sportsaviation
Recreationalflying
Addedtothese,thereistheoperationoftheairportsthemselvesandthe
regulatoryenvironmentinwhichtheyoperate.
Chapter2goesintomoredetailabouthowGAmaybedefined.Whileother
studiesandjurisdictionshaveattemptedtomoreaccuratelydefineGA,a
practicalapproachistoassumeGAcommonlyreferstocivilaviationactivities
otherthanscheduledairlineactivity.However,theActionAgendaStrategic
IndustryLeadersGroup(SILG)detectedsomelimitationsinusingthis
definitiontoonarrowly.Firstly,thissimpledefinitionwouldembraceactivity
inverylargejetaircraftsuchasmajorminingchartersandairfreightersthat
sharelittlewiththemajorityoftheGAindustry.Secondly,anumberofsmall
businessesoperatingscheduledorpseudoscheduledairlineservicesin
regionalAustraliasharemoreofacommonalityofinterestwithGAoperators
thantheydowiththemajorairlines.
Essentially,theissuesfeaturinginthisreportaffectallsmallaircraft
operatorsandthebusinessesthatsupportthem.Thereportrelatestothe
widerAustralianaviationindustrywiththeexceptionofmajordomestic
airlinessuchasQantas,Jetstar,VirginBlueandTigerAirwaysandthemajor
capitalcityinternationalairports.

10

Thecompellingissuesconfrontingtheindustryfallintooneoffivecategories:
ThecompetitivepositionoftheindustryandtheoverallviabilityofGA
businesses;
AccesstosecondarycapitalcityandregionalairportswhereGA
businesseshavetraditionallybeenbased;
Skills,particularlyavailabilityofpilots,instructorsandengineers;
Theregulatoryenvironment;and
Theageingaircraftfleet.

TheStateofGeneralAviation

TheAustralianGAindustryisinastateoftransition.Somesectorsare
growingstronglywhileothersareindeclinewithsomeindividualbusinesses
strugglingtoremainviable.
Inparticularthelessregulated,recreationalpartoftheindustryisgrowing
strongly,apositivedevelopmentinitsownrightbutalsopresentingeffective
competitionforprivateflyingwhichfindsitselfinamoretraditionalregulated
environment.Therapidgrowthofcommercialairlineactivityworldwidehas
alsocreatedexportopportunitiesforprofessionalflighttraininganditis
importantthattheindustryparticipatestothefullinmeetingthisgrowth
potential.
AviationisacomparativelyoldbusinessbyAustralianstandards,datingback
tothefirsttwodecadesofthetwentiethcenturyandsharingcommon
elementsinitsdevelopmentwithmilitaryflying.Thesefactorshavehelpedto
createaconservativeindustrythat,whilewellsuitedtooperatinginahighly
regulatedenvironment,hasnotnecessarilydevelopedtheskillstosuccessfully
managechange.
ChangessurroundingtheGAindustryoverthepasttwentyyearshavebeen
profound.Privatisationofairports,increasesinthecostofaircraftandfuel
andchangesinthesafetyandsecurityregulatoryenvironmenthaveallplayed
importantparts.
Toassistbothinbuildingtheskillsrequiredandinidentifyingstrategiesto
helptheindustryprosperandgrowintothefuture,thisreportputsforward
eighteenspecificrecommendationswhichtogetherconveytheneedfor:
Industryinvolvementinimplementingtherecommendationsofthis
report;
Improvedmarketingofprofessionalaviationcareers;

11

ImprovedawarenessintheGAindustryofalreadyexistingstateand
Commonwealthgovernmentbusinessassistanceprogrammes;
Establishmentoftargetsforgrowthintheexcitingscopeforexporting
aviationservices;and
EffectivecommunicationbetweenStateandCommonwealth
governmentsonissuesrelevanttotheindustry.

Airports

Itisstatingtheobviousthataviationneedsairportsbuttheparametersof
accesshavechangedsignificantlyoverthepastdecadeandleftmanylong
termtenantsunabletocopewiththepaceofchange.
Twentytwofederallyownedairportshavebeenleasedtoprivateoperators
sincethelate1990sandarenowrunasfullycommercialorganisations.Many
tenantshadcometoviewpreviouslongtermleasearrangementsasareliable
indicatoroffuturecostsbuthavefoundthatmanypreviousaccess
arrangementswerepricedbelowmarketvalueandtheadjustmenthasbeen
significant.Thishasalsooccurredatsomeregionalairportsunderlocal
governmentcontrol.TheseissuesarecoveredindetailinChapter5.
Thecommercialtensionthathasresultedfromthesechangeshascreated
difficultiesforbothtenantsandairportoperators.Whilenotauniversalview,
thereiswidespreadacceptancethatairportsshouldcontinuetooperateas
efficientcommercialoperations.Thisreportputsforwardseveral
recommendationsaimedatimprovingcommunicationandplanningatairports;
whichisinsomecasesdeemednolessthanimperative:
Thattenantsengagemoreactivelyinthemasterplanningprocessat
airports;
Thataformalmediationprocessbeestablishedforusewhenbest
endeavourscommercialnegotiationsatGAairportsfailtoimprove
communicationandwiderrelationshipsbetweenairportoperatorsand
tenants;
Thatlocalgovernmentsworkwithindustrytoimprovedevelopmentand
planningproceduresforexistingairportsintheirjurisdiction;and
ThattheAustralianGovernmentconfirmstherequirementthatleased
Commonwealthairportsmustremainineffectiveuseasairportsandnot
betotallyconvertedtootherpurposes.

12

People

Likeallbusinesses,GAoperationsrequirecompetentandprofessionalowners
andmanagers.Theyalsorequirepeoplewitharangeofsophisticated
technicalskillscoveringpilots,instructorsandmaintenanceengineers.
Theprofessionofanairlinepilotisonethathastraditionallybeenhighly
respectedandsoughtafter.However,thecareerpathwaytowardsthatgoal
hasalsobeendifficultandhasofteninvolvedsignificantindividualinvestment
andsacrifice.Instructorpositions,charterflyingandotheraerialwork
activitieswhichbuildflyinghoursexperiencehavetraditionallybeenpoorly
paidanddonotofferthesamestatusorrewardsasmajorairlineemployment.
Thetraditionalemploymentpathforpilotshasacceleratedoverthelast
severalyears.Worldwideairlinegrowthhasdrawnrelativelyinexperienced
pilotswhotraditionallyfilledpositionsinflightschools,charterservices,
regionalairlinesandemergencyservicesintolargerairlinejobsmorequickly
thantheindustryhasbeenabletocopewith.
Theindustryneedstoadaptquicklyastheshortageofinstructorsinparticular
mayhavealongertermimpactontheabilityoftheindustrytoensureits
futuresupplyofpilots.
Safeandreliableaviationalsoreliesonproperlytrainedaviationmaintenance
engineers.Theindustryalsofaceschallengesinattractingyoungpeopleinto
aviationmaintenancecareers.InitiativesinQueenslandtoaddressthe
questionoftrainingengineersinthatstatearenotedandmightserveasa
modelforotherjurisdictions.
ParticipantsintheGAindustrycarryagreatdealofresponsibilityforthe
safetyofothers.Itisimportantthattheindustryoperateswiththe
professionalismcommensuratewiththeseresponsibilitiesandcontinuesto
builditscapabilityinthatregard.Thisreportputsforwardseveral
recommendationsfor:
Industrytoimproveitsworkforceplanning;
IndustryandGovernmenttoworktogethertoensurethattheaviation
industrysneedsarerecognisedaspartoftheGovernmentswider
considerationofskillstraining;
Universitylevelaviationcoursestobeestablishedand/orexpandedinall
Australianstatesandterritoriesincludingtraininginmanagementas
wellastechnicalskills;
Supportofaviationmaintenancetraininginthetechnicaleducation
sector;and
TheCivilAviationSafetyAuthority(CASA)continuetoworkwith
industrytoensuresafetyoutcomesaremaintainedwithoutimpacting
unnecessarilyontrainingeffectivenessorefficiency.

13

Regulation

TheAustralianpublichasveryhighexpectationsofasafeaviation
environment.Thisisparticularlytruewhenthatsituationimpactsonfare
payingpassengerswhohaverelativelylittlecontrolovertheirownsafety.
AviationsafetyregulationistheresponsibilityoftheCivilAviationSafety
Authority(CASA).ManysubmissionstotheStrategicIndustryLeadersGroup
highlightedtheneedforCASAtobeaneffective,efficientandresponsive
regulator.Oflate,CASAhasbeenundergoingaseriesofreformstargeting
improvementinitsperformance.Theindustryisbroadlysupportiveofthese
effortswhilealsoplacinghighpriorityoncompletionofCASAsregulatory
reformprogrammeinthenearfuture.
TheLeadersGroupalsoinvestigatedindustrysupportforselfregulationor
selfadministrationofexistingregulations.
Itfoundlittlesupportforselfregulation.Aswellastheriskstothepublic,
therewasrecognitionthatlowlevelsofsafetycompliancecouldresultin
unhealthy,unsustainablecompetitionbetweenoperators.Therewasqualified
supportforselfadministrationundertheoversightofCASAbutgenerallyonly
forprivate,noncommercialoperations.
Therehavealsobeensignificantchangessince2001totheregulatoryregime
governingsecurityrequirements.Whiletheindustryacceptsthesechanges,
thereisacommonviewthatsecurityrequirementscanbedisproportionateto
therisksinvolvedandneedperiodicreview.
Chapter7detailsissuesaroundGAregulation.InconclusiontheLeadersGroup
hasrecommendedthat:
GovernmentensureCASAsfundingandstructureisappropriatetoallow
CASAtocompleteitsregulatoryreformprogrammewhilealso
continuingindustryoversight;
Currentprocessestoachieveselfadministrationcontinuebutproceed
withcaution;and
Securityregulationbeperiodicallyreviewedacrossthevarious
categoriesofairporttodeterminethatregulatorymeasuresare
compatiblewithcurrentrisksandthreats.

14

Aeroplanes

ThemajorityofAustraliansexperienceofflyingisinmodernjetaircraftwith
theassociatedcomfortandlevelsofsafetyofferedbycontemporaryaircraft
design.Itmaysurprisemanypeopletoknowthattheaverageageofaircraft
intheGAfleetisover30yearsoldandrising.
TheissueofageingaircraftinAustraliaisacomplex,multifacetedproblem.A
rangeofeconomicfactorscomeintoconsiderationwhenoperatorsdecide
eithertoreplaceaircraftortoextendthelifeofexistingunits.Theselogically
includepurchasepriceofnewaircraft,exchangerates,aircraftproduction
ratesandoperationalprofitability.
ThemarginalnatureofmanysmallGAbusinessesandtheintensely
competitivemakeupoftheindustryhavemeantthatmanyoperatorshave
failedtoplanandinvestforthelongertermandnowfaceanunmanageable
shorttermdilemmainupgradingtheiraircraftfleets.
Toassistwiththis,theStrategicIndustryLeadersGrouprecommends:
ThattheGovernmentconsidertheestablishmentofacasebycase
facilitytoassistsuitableoperatorstobuynewaircraft,subjecttoa
minimum50percentcontributionfromtheoperatorandthe
establishmentofaprovencommercialbusinesscase.

15

SummaryofRecommendations
TheStrategicIndustryLeadersGrouphasdevelopedthefollowing
recommendationtoassisttheGeneralAviationIndustryinidentifyingand
exploitingopportunitiesforgrowthandtoassisttheindustryinmanaging
changeandfuturechallenge.

GeneralIndustry
Recommendation1:Withoutindustrycommitmentandresourcesthe
recommendationsofthisreportareunlikelytobesuccessfullyimplemented.
Industryshoulddecidethebestwaytotakeforwardtherecommendationsof
thereport.Thismaybecoordinatedbyanexistingindustryorganisationbut
shouldincluderepresentativesfrommajorairlines.
Recommendation2:TheRoyalFederationofAeroClubsofAustralia,in
associationwithRecreationalAviationAustralia,overseeatargetedmarketing
campaigntoalertrecreationalaviatorstothepossibilitiesofaviationcareers
throughfurtherpilotandinstructortraining.
Recommendation3:IndustrytoworkwithrelevantState,Territoryand
Commonwealthindustrydepartmentsunderexistingbusinessassistance
frameworkstoidentifycharacteristicsofhealthybusinessesandimprove
planninganddecisionmakingforsmallenterprises.
Recommendation4:Industryneedstoexpandandimproveitsmarketing
activitiestoattractnewparticipantsintotheindustry,highlightingthe
edificationandopportunitythatlearningtoflycanprovide.
Recommendation5:Itisimportanttocontinuetoimprovecommunication
betweengovernmentstotakeaccountofissuesrelevanttotheGeneral
Aviationindustry.ThesecommunicationscanbefocussedintheAustralian
TransportCouncilAviationWorkingGroupcomprisingCommonwealthand
StatetransportofficialsandtheAustralianLocalGovernmentAssociation.

Airports
Recommendation6:Aformalmediationprocesstobeestablishedwiththe
followingcharacteristics:
1.
2.
3.
4.

Toapplyatsecondarycapitalcityairports;
Shouldfollowinitialbestendeavourscommercialnegotiationsbetween
operatorsandtenants;
Fundedbyusers;
Notreplacingexistingregulatoryprotection.

16

Recommendation7:Tenantsareapparentlynotalwaysadequatelyengagedin
themasterplanningprocessatairports.Thereisaneedforrelevantindustry
associationsandairportoperatorstoraiseawarenessofairportmaster
planningprocesses,particularlywhenairportmasterplansordevelopment
proposalsareissued.
Recommendation8:Localandstategovernmentstoworkwithindustryto
improveexistingairportdevelopmentprocedures.Thisshouldenablethe
processtobetransparentandultimatelyencourageinvestmentinnewor
existingairports,acknowledgingtheneedforappropriatecommunity
consultationand,whereappropriate,obligationsunderALOPDeedsof
Transfer.
Recommendation9:TheAustralianGovernmenttoconfirmtherequirement
thatleasedCommonwealthairportsmustremaininuseaseffectiveairports
andnotbetotallyconvertedforotherpurposes.

People
Recommendation10:GeneralAviationbusinessestodevelopstrategiesto
attractandretainskilledemployees.Examplesmightinclude:
Contributingtothecostoftrainingthroughmeasuressuchas
cadetships,scholarshipsandloanschemes;
Developingmorecreativeretentionstrategies.Thiswillinevitably
requirepartnershipswithairlines;
Takingmeasurestorespondtoatightlabourmarketsuchasincreasing
advertisingandofferingmoreattractivesalary/workingarrangements;
Industrybodiestobettermarketaviationcareersatschoolsandto
organisationsspecialisinginretrainingmatureagedworkers.
Recommendation11:TheDepartmentofInfrastructure,Transport,Regional
DevelopmentandLocalGovernmentandtheGeneralAviationindustrytoliaise
withtheDepartmentofEducation,EmploymentandWorkplaceRelationsand
theTransportandLogisticsIndustrySkillsCounciltoensurethatindustry
needsarerecognisedaspartoftheGovernmentswiderconsiderationofskills
training.
Recommendation12:Careersinaviationarethoroughlyprofessionalandthe
developmentprocessesavailabletocandidatesforaviationcareersmustbe
mindfulofthis.Tertiarylevelcoursesshouldbeestablishedand/orexpanded
inallAustralianstatesandterritoriestoofferplacesinaviationmanagement,
pilottrainingandaviationrelatedengineering.Fundingshouldbeallocatedto
universitiesonafundingperplacebasis.

17

Recommendation13:StateandTerritoryjurisdictionstoworkwithindustry
andtheCommonwealthtoensuresufficientsupportforaviationmaintenance
engineertraininginthetechnicaleducationsector.

Regulation
Recommendation14:CASAandindustrytocontinuetoworktogetherto
ensureappropriatebalanceofsafetyandtrainingeffectiveness.Atthesame
time,itisimportantthattheindustryrealiseswhatisalreadyavailable.
Recommendation15:CASAandindustrycontinuetoexploreaworkablemodel
forselfadministrationbutthatthisprocessproceedwithcautionandbe
limitedtoflyingactivityexcludingpassengertransportoperations.
Recommendation16:ThatGovernmentperiodicallyreviewsecurity
requirementsforairportsandaviationoperatorstoensurethatsecurity
measuresarecommensuratewiththemostcurrentriskandthreat
environmentatrespectivelocationsandarenotimposingunnecessarycosts
onindustry.

AgeingAircraft
Recommendation17:Toaddresstheproblemoftheageingsmallaircraftfleet
theGovernmentconsidertheestablishmentofafacilitytoassistsuitable
operatorstobuynewaircraft.Criteriaforsuchaschemeshouldbedeveloped
inconsultationwiththeindustryandmayinclude:
Casebycaseassessmentofcommercialbusinesspositions;
Atleast50%capitalcontributionbyoperatorsacquiringnewaircraft.

Recommendation18:TheSILGnotesthepotentialfornewtechnologiessuch
ascompositeairframes,glasspanelavionicsandnewenginetypestoimprove
theperformanceandraisethesafetystandardofGeneralAviationaircraft.
TheSILGismindfulthatwhenassessingthepotentialbenefitsofnew
navigationtechnologies,itisimperativetotakeaccountoftheGeneral
Aviationindustrysparticularneedsaswellasthoseofmajorairlines.

18

1:Introduction
1.1

ActionAgendas

From1996to2007ActionAgendasprovidedaframeworkforindustriesto
developsectoralprioritiesandplanforthefutureinpartnershipwith
governments.ActionAgendasalsohelpedindustrysectorsdevelopacohesive
approachtowholeofgovernmentissuessuchasregulatoryreform,education
andtraining,marketaccessanddevelopment,investment,regional
development,environmentallysustainabledevelopment,workplacerelations
andinnovation.
ActionAgendaswereintendedtofacilitateindustryleadershipinspecific
sectorstorealiseopportunitiesandovercomeimpedimentstogrowth,with
particularemphasisonidentifyingtheactionsthatindustrycouldtaketo
realiseitsfullpotential.

1.2

TheGeneralAviationIndustryActionAgenda

On14September2006thethenMinisterforTransportandRegionalServices,
theHonWarrenTrussMP,andtheMinisterforIndustry,Tourismand
Resources,theHonIanMacfarlaneMP,jointlyannouncedtheestablishmentof
anIndustryActionAgendaforGeneralAviation(GA).
TheGAIndustryActionAgendawasestablishedinrecognitionofthe
importantroleGAplaysacrossthecountry,particularlyinregionalandremote
partsofAustraliaandinrecognitionoftheongoingchallengestheindustry
faces.
ThethenDeputyPrimeMinisterandMinisterforTransportandRegional
Services,theHonMarkVaileMP,subsequentlyappointedaStrategicIndustry
LeadersGroup(SILG)todrivetheGAActionAgendacomprising:
DrJRolandWilliamsCBE,Chair
MrTonyBrand,ChiefEngineer/Director,HorshamAviationServices
MrGerardCampbell,ChiefExecutiveOfficer,ArcherfieldAirport
MsMarjDavisAOM,President,RoyalFederationofAeroClubsofAustralia
MrJohnGardon,President,RecreationalAviationAustralia
MrColRodgers,NationalPresident,AircraftOwnersandPilotsAssociation
MrDennisWisbey,ManagingDirector,AeroServicesPtyLtd,Parafield
Airport

19

1.3

DevelopmentoftheGeneralAviationIndustryActionAgenda

TheStrategicIndustryLeadersGroupappointedtodrivetheGAActionAgenda
firstmeton26March2007.AtitsfirstmeetingtheSILGestablishedworking
groupstoconsiderspecificissuesaffectingtheindustryinmoredetail.These
were:
IndustryCompetitiveness;
InfrastructureIssues;
EducationandSkillsIssues;
RegulatoryIssues;and
Investment,technologyandinnovation.
Followingitsfirstmeeting,theSILGpublishedanissuespaperthat
summarisedkeyissuesaffectingtheindustry.TheIssuesPaperinvited
stakeholderstofocusonkeyareaswheretheSILGmightdevelopstrategiesto
assistindustryinensuringfuturegrowthandopportunitiesandwhere
challengesmayneedtobeovercome.ContributorsarelistedatAppendixA.
TheSILGwasconcernedtoensurethatopportunitiesexistedforbroader
industryinputtothedevelopmentoftheActionAgendaandusedamultisite
industryconsultationstrategy.Consultationswereheldat:
CairnsAustralasianAviationGroup;
PerthSubiaco;
NewcastleAustralianLocalGovernmentAssociationCongress;
SydneyBankstownAirport;
MelbourneConsultationwithsecondaryairportoperatorsduringthe
AustralianAirportsAssociationConference;
BrisbaneArcherfieldAirport
AdelaideParafieldAirport

1.4

TermsofReference

ThetermsofreferencerequiredoftheGAIndustryActionAgendawere:
1. Examineindustrytrendsandthefactorsdrivinggrowthandparticipationin
keysegmentsoftheGeneralAviationindustryviz:
Sportsaviation;
Aerialagriculture;
Charterandotheraerialwork;
Commercialpilottraining;

20

Maintenanceandrepair,includinglicensingandtrainingofLicensed
AircraftMaintenanceEngineers(LAMEs);
Privatepilottraining,includingdevelopmentandtrainingofflying
instructorsandrecreationflying.
2. Identifygrowthanddevelopmentopportunitiesforeachsegmentofthe
industry.
3. DetermineimpedimentstogrowthanddevelopmentintheGeneralAviation
sector,havingregardto:
Thecompetitivepositionoftheindustry,particularlyinrelationto
alternativetransportmodes,demographicandeconomictrends,market
segmentationandalternativerecreationalactivities.
RegulatoryissuesimpactingontheGeneralAviationsector,including
potentialforselfadministrationandselfregulation,andGeneral
Aviationscontributiontotheairspacereformprocess.
Education,trainingandskillsrequirementsfortheindustry,including
licensingandtrainingofLAMEs.
Investment,fleetplanningandaircraftreplacementissues.
Technologyanddevelopmentsinaircraftdesignandoperation,including
regulatoryimplications.
Accesstoairportinfrastructureincludingdevelopmentandplanningat
GeneralAviationAerodromeProceduresairports,developmentand
planningatregionalandruralairportsandplanningfornewairport
infrastructure.
Exportpotentialoftheindustryincludingpotentialtoexportpilot
trainingservices,engineeringtrainingservicesandpackagedGeneral
Aviationservices.
4. DeveloprespectivestrategiesfortheGeneralAviationindustryand
governmentstoremoveimpedimentsandmaximisefuturegrowthand
participation,includingkeyperformancemilestoneswhichtheindustry
shouldaimfor.
Scopeofthereport
TheGeneralAviationindustryunderconsiderationcomprisesaircraft
operatorsprovidingnonscheduledairservicesincludingcharteroperators,
aeromedicaloperators,agriculturalaviationbusinesses,aviationbasedfire
fightingservices,trainingandaerialworksuchasaerialphotographyand
surveying.Italsoincludesprivate,business,recreationalandsportsaviation
activityandsupportingbusinessessuchasmaintenanceproviders,airport
operatorsandindustryregulators.
TheIndustryLeadersGroupwillreporttotheAustralianGovernmentby
30April2008

21

TheGeneralAviationindustryisadiverse
collectionofgroupsandindividualsthatsharea
commoninterestintheoperationofsmall
aircraft.Manysegmentsoftheindustryprovide
essentialservicesinAustraliaandareessential
elementsoftheAustralianeconomy.

22

2:WhatisGeneralAviation?
2.1

DefinitionalIssues

TheIssuesPaperpublishedbytheStrategicIndustryLeadersGroupinApril
2007exploredanumberofexistingdefinitionsoftheGeneralAviation(GA)
sector.InparticularitdrewonworkbytheBureauofTransportandRegional
Economics(BTRE,2005)whichobservedthatGAiscommonlydefinedalong
twoprimarylines,namely:
Aircraft(GAtypicallyreferstosmallusuallypistonengineaircraftof
5.7tonneorless),and
Activity(TypicallyGAactivityisdefinedasallnonscheduledflying
activitysuchascharterandtraining,therebyexcludingallRegularPublic
Transport(RPT)operations).
Also,theUnitedKingdomCivilAviationAuthority(CAA)hadattemptedto
defineGAinits2006reviewofthesectornoting(CAA,2006):
ThetermGeneralAviationdoesnotmeanthesamethingthroughout
theworld,orevenwithincountries.Manyconsiderittomeanall
aviationactivityexceptthatperformedbymajorairlinesandthe
military.Somefindithelpfultorecognisethatalloperationsbelowa
particularmaximumweightthreshold(say5,700kgforaeroplanes)
sharemuchincommon,irrespectiveofthepurposeoftheflight.In
scopingtheStrategicReview,itwasagreedthattherewouldbelittle
meritinattemptingtocreateadefinitiveinterpretationofwhatisand
whatisnotGA.ForthepurposeofscopingtheStrategicReview
GeneralAviationwasconsideredtomeanacivilaircraftoperation
otherthanacommercialairtransportflightoperatingtoaschedule.
TheUKstudyalsonotedthat:
TheGAsectorcoversaverywiderangeofactivities.Itincludesflying
forthepurposesofrecreation,personaltransport,andbusiness.The
typesofoperationarealsoverydifferent.Atoneendofthespectrum
areballoons,gliders,hanggliders,microlights,gyrocoptersandsmall
helicopters,allofwhichwilltendtooperatefromrelativelysmallsites
thatmaynotevenbereadilyrecognisableasairfields.Attheother
endofthespectrumarecorporatejets,whichmayincludevariantsof
airliners.Inbetweenarethousandsofaircraftofallshapesandsizes
fromamateurbuilttomassproducedtouringaircrafttoexmilitary
fastjets.
SincethepublicationoftheSILGsIssuesPaperon14May2007,theCivil
AviationSafetyAuthority(CASA)publisheditsupdatedIndustrySector
PrioritiesandClassificationofCivilAviationActivitiespolicy.

23

Thepolicycreatesthreebroadclassesofaviationactivitiesforthepurposesof
safetyregulation;passengertransport,aerialworkandgeneralandfreight
onlyactivities.
Thepassengertransportclasscoversflightsthatcarrypassengersinlargeor
smallaircraft,scheduledornonscheduled.Inotherwords,thisclasscovers
operationsCASAhaspreviouslydescribedasRPTandcharterflights.
Theaerialworkclasscoversawiderangeofactivitieswhereaircraftare
involvedinspecialisedactivitiesandmaycarrypeoplewhoarenotcrew,
knownastaskspecialistsunderthepolicy.Aerialworkactivitiesinclude
emergencyandmedicalflights,lawenforcement,aerialagricultureandaerial
survey.
Thegeneralandfreightonlyclasscoversmostprivateoperations,flying
training,freightonlyoperationsandotheractivitieswhereonlythecrewison
boardanaircraft.Italsoincludespeoplewhochoosetoflyonaircraftwhere
theyknowandacceptthelevelofsafetyprovided,suchasrecreationaland
sportsaviation.ThepolicywillbeimplementedasCASAissuesnewCivil
AviationSafetyRegulations(CASR).
TheissueofdefiningwhatconstitutesGAactivitygeneratedanumberof
viewsfromsubmissionstotheIssuesPaperandindeedwithintheLeaders
Groupitself.Itisnotpossible,nornecessary,toagreeonasingledefinition
oftheindustryastheindustrywilldemarcatealongdifferentlinesfor
differentpurposes.
CASAsviewoftheindustryisimportantasregulatoryoversightofsafetyisa
criticalinputtoGAbusinesses.Broadly,intermsofCASAsClassificationof
Operations,operatorsinthegeneralandfreightonlyclassareagreedtobe
GeneralAviationbusinesses,eventhoughasmallproportionofthese
businessesmayutiliselargeaircraft.Importantly,recreationalandsports
aviationisexplicitlyincludedinthisclassification,thoughsomesegmentsof
theindustryseethissectorasacompetitorratherthanapartofthesame
industry.
Withsomeexceptions,moststakeholdersalsoclassifiedoperatorsinthe
aerialworkclassasGAbusinesses.TheSILGnotesthattheseoperationswere
includedundertheTermsofReferenceissuedbytheGovernmentandwere
thereforeregardedasinscopefortheGAIndustryActionAgenda.
Therewasalsosupportfromindustryfortheconsiderationoflimited
passengertransportactivitiesasGAactivities.Charteroperationshave
traditionallybeenregardedasGAoperationsbutthenewCASAclassifications
willremovethedistinctionbetweenscheduledandnonscheduledpassenger
transportflights.Smallerregionalairlinesoftenoperateacombinationof
scheduledandcharterservicesandhavetendedtoidentifywiththeconcerns
oftheGAindustry.Thiscommonalityofinterestdecreasesinlargerairline
businesses.However,theSILGnotesthatmanyimportantissuesthathave

24

beenconsideredinthedevelopmentofthisActionAgendaarerelevanttothe
wideraviationindustryandnotconfinedtotheGAindustry.Forexample
educationandskillsissuesincludingthefuturesupplyofpilotsandengineers
totheindustry,commercialrelationshipsbetweenairportoperatorsand
tenantsandregulatoryissuesareallthoroughlyrelevanttothewider
Australianaviationindustry.

2.2 AnIndustryDealingwithChange
InestablishingthisActionAgenda,itwasacknowledgedthattheindustryhas
beenfacinganumberofchallengesinrecentyears.Broadly,thosechallenges
haveresultedfromthewithdrawalofspecialindustryarrangementsthathave
appliedtomanyaspectsofaviationinitspostwardevelopment.
InthedecadesfollowingtheSecondWorldWar,aviationdevelopedwith
significantsupportfromgovernmentsasitwasseenasanindustrycriticalto
nationbuildingandbroadereconomicconsiderations.Astheindustry
matured,itwasnolongerseenasappropriatethataviationbetreatedasa
specialcaseindustryandthatitberegulatedanddevelopedunderbroader
governmentpolicesrelatingtoindustry,tourism,competitionandtaxation
regimes.
TheparticularchangesrelevanttotheGeneralAviationindustryhavebeen:
Theterminationofthetwoairlinepolicyin1990allowingtheentrance
ofnewairlinestotheAustraliandomesticaviationmarket.Thishas
resultedinanexpansionandrestructuringofthedomesticairline
industrywiththenumberofpassengersondomesticservicesalmost
trebling,from15.6millionin1990to45.8millionin200607,drivenby
lowerairfaresandmorechoiceforconsumers.
Intheearly1990s,thetransferoflocal,counciloperatedairportsunder
theAerodromeLocalOwnershipPlan(ALOP)tolocalgovernments.
Inthelate1990s/200s,theprivatisationof22Commonwealthowned
airportsunderleaseholdarrangements.
Thetransitiontousercostrecoveryarrangementsforaviationsafety
regulationinrecentyears,thoughnotnew,representsanincreaseinthe
proportionofactivitiescostrecoveredbyCASA.
Inaddition,theindustryhasfacedmorerecentchallengesfollowingthe1999
avgascontaminationcrisisandchangestosecurityarrangementsfollowingthe
September2001terroristattacksontheUnitedStates.Likemanyindustries,it
nowconfrontspossiblegrowthconstraintsthroughanageingworkforceand
labourshortagesinkeyareas.
InAustralia,theindustryhasencounteredincreasedcompetitionfrom
alternativetransportmodesoverthepastseveraldecadeswithsignificant
improvementsinroadinfrastructureandmotorvehiclesandinscheduled
commercialairlineservices.

25

Inaddition,overthepasttwentyyearsalternativerecreationalactivitieshave
grownstrongly,oftennotrequiringthesamelevelofcommitment,training
andtimeasprivateflying.Theseactivitiesrangefromimprovedtourism
experiencestoimprovedleisureandentertainmentproducts,cheappersonal
computersimulationofflyingand,inparticular,recreationalandsports
aircraftactivity.
Thegrowthofrecreationalandsportsaviation,whichgrewfromtheultralight
movementfromthelate1970sonwards,isviewedwithmixedperspectivesin
theGAindustry.Ontheonehand,recreationalaviatorsseetheirhobbyasan
affordablealternativetothehighercostandmorehighlyregulatedtraditional
GAsector,thuscontributingtoanoverallgrowthinflyingactivity.Onthe
otherhand,manytraditionalgeneralaviatorsseetherecreationalindustryas
enjoyingunfairadvantagesoversmallCASAregisteredaircraftowners
offeringlowerregulatoryandcostimpoststothesenewparticipantsinthe
industry.Whicheverperspectiveonetakes,thereisnodoubtingthegrowthof
thissector.Lateststatistics(BTRE,2007)showthathoursflowninultralight
operationshaveincreasedfrom76,500hoursin2001to120,200hoursin2006,
anincreaseof57percentoverthefiveyearperiod.Overthesameperiod,
hoursflowninprivateflyinghavedecreasedfrom261,700hoursto227,200
hours,adecreaseof13.2percent.Thecombinedactivityinthesetwo
categoriesisrelativelystable,with338,200hoursin2001and347,400hoursin
2006,agrowthof2.7percent.
TheStrategicIndustryLeadersGroupidentifiedAustraliasGAindustryasa
comparativelyoldindustrybyworldstandards,withatendencytowards
conservativebehaviour.Whilethistraitisunderstandableandindeed
desirableinanindustryaccustomedtohighstandardsofsafetyanddiscipline
indaytodayoperations,itcanbelimitingindevelopingthemanagerialskills
requiredtonegotiatechangesintheindustryseconomicenvironment.This
wasseenasakeydevelopmentneedformanyGAbusinesses.

2.3 TheDiversityofGeneralAviation
TheGAindustrycomprisesadiversityofbusinessesandindividualsintermsof
activity,locationandsizeofbusiness.ThoseidentifyingaspartoftheGA
industryarelikelytoinclude:
Smallairlineandcharterflightoperators;
Operatorsofairports,particularlysecondarycapitalcityairportsand
regionalairports;
Flighttrainingschools;
Agriculturalaviationbusinesses;
Aeromedicaloperators;
Aerialfirefightingoperators;

26

Operatorsengagedinotheraerialworksuchasphotography,surveying,
mustering;
Airfreightoperators;
Helicopteroperators;
Balloonists;
Aviationmaintenancebusinesses;
Privatepilots;and
Recreationalpilots.
Figure1,showsthebreakdown,byhoursflown,ofthevarioussectorsofthe
AustralianGeneralAviationindustry.
F ig ur e1: G en e ra la vi at io nf lyi n g h ou r s Aust ralia 20 06 (BTRE, 2 0 07 )

Private
13%
Charter
28%
Business
9%

Test & Ferry

1%

Training
25%
Aerial Work
20%
Agriculture
4%

AccordingtoIBISWorldBusiness(IBISWorld,2007),in200506theAustralian
nonscheduledairandspacetransportsectorcomprised1,192enterprises
employing3,788people.Industryturnoverwas$923.8million,representinga
15.3percentincreaseoverthepreviousthreeyears,withexportearningsof
$65.2million.
Approximatelyaquarterofrevenueisrespectivelygeneratedbyeachof
passengertransport,flighttrainingandaerialwork.Theremainingshareis
comprisedofprivateandbusinessuseandtestandferryoperations.
Industryconcentrationislow,indicatingahighproportionofsmaller,locally
basedbusinesses.

27

ThediversityandnumberofGAbusinessesandinterestsinevitablyresultsina
rangeofopinionsbeingputforwardinrelationtofutureprioritiesforthe
industry.Inconductingindustryconsultationsandconsideringsubmissions,
theSILGnotedarangeofverydifferentviewsregardingthestateofthe
industryandthedirectionitneededtotaketoensurefuturesuccess.While
thediversityofvoicesensuresthatallopinionscanbeheard,itcanalsomean
thatitisdifficultforindustrytoconsolidateviewsonkeyissues.Regulators
andgovernmentandindustryitselfcansometimesfinditdifficulttoseean
agreedwayforwardfortheindustryasawhole.Thiswasevidentduringthe
consultationundertakenindevelopingtheActionAgendaandwillbean
importantfactorinimplementingtherecommendationsofthisreport.
Recommendation1:Withouttheindustrycommitmentandresources,the
recommendationsofthisreportareunlikelytobesuccessfullyimplemented.
Industryshouldthereforedecidethebestwaytotakeforwardthe
recommendationsofthereport.Thismaybecoordinatedbyanexistingindustry
organisationbutmustincludeactiverepresentationfromthemajorairlines.
TheSILGsawitasimportantthatparticipantsenteringtheaviationindustry
throughtherecreationalpathbealertedtothebroaderopportunitiesofthe
aviationindustryandthereforenotbeunnecessarilylosttotheindustry.
Recommendation2:TheRoyalFederationofAeroClubsofAustralia,in
associationwithRecreationalAviationAustralia,overseeatargetedmarketing
campaigntoalertrecreationalaviatorstothepossibilitiesofaviationcareers
throughfurtherpilotandinstructortraining.

2.4 SupportingtheCommunity
ManysubmissionstakenindevelopingtheActionAgendahighlightedthe
importanceofGAservicesinsupportingotherindustriessuchasagriculture
andmining.Theimportanceofaviationservicestobroadercommunity
outcomeswasalsohighlighted.ForexampletheoperationsoftheRoyal
FlyingDoctorServiceofAustralia(RFDS)relybothonaccesstoairport
infrastructureandonareliablesupplyofpilotsandengineerstomaintain
aircraftoperations.Aerialfirefightingservicesandsomelawenforcement
activitiesalsorelyonaccesstoairportsinbothcityandregionallocations.
ItiscertainlytruethatGAisinterdependentwithanumberofindustriesand
indirectlysharestheirfortunes.ThegrowthoftheAustralianminingindustry
hasprovidedawealthofflowonbusinesstomanyaviationoperatorsover
recentyearsandtheefficienciesinherentinaccesstoairtransporthavealso
benefitedtheminingindustry.
TheinterfacebetweentheminingsectorandGAisalsoimportantbecauseitis
oftenexcludedindealingwithcommonGAissuesduetotheirfocusonsmaller

28

aircraft.Theminingindustryisservicedbyawiderangeofaircraft,fromsmall
pistonengineaeroplanestoverylargejetsmostcommonlyusedinmass
passengertransport.Thechiefchallengeinthepresenteconomic
environmentisforflyin,flyoutoperationstohaveaccesstotherequisite
infrastructure,skillsandaircrafttocontinuetosupporttheminingindustryas
itcontinuesthroughanunprecedentedperiodofgrowth.
Ontheotherhand,theeffectofthedroughtonagriculturalproductionover
recentyearshasmeantthatopportunitiesforagriculturaloperatorshavebeen
severelylimited.In2006,agriculturaloperatorsreportedonly61,700hoursof
activity,lessthanhalftheactivitylevelsof1998and1999.Likemanyservice
industriesinruralareas,theabilityofagriculturalaviationbusinessesto
withstandtheeffectsofdroughtandtomanagebusinesses,peopleandassets
throughgoodyearsandbadisextremelydemanding.
GAoperatorsalsoprovideanimportantpublictransportserviceinremote
areasofAustralia,indeedcomparablewithtaxisandbusesinmetropolitan
areas.Wherescheduledairlineservicesarenotviable,charterservices
providethemeansofallowingpeopleinremoteareastohaveaccessto
business,medical,educationalandsocialopportunitiesinbiggerregional
centresorcapitalcities.
Eventhoughmanycommunityserviceroles,suchasthosementionedabove,
aredependentonaviationfordeliveryofimportantservices,theirfundingis
provideddirectlybyeithergovernmentoralternativecommunity
contributions.Forexample,theRFDSreceivesitsprimaryfundingfromthe
CommonwealthGovernment.Aviationactivityusedforfirefightingandlaw
enforcementpurposesisfundedthroughrelevantstategovernments.
Supportingservicesfortheseactivities,suchasairportcharges,regulatory
andairserviceschargesarethenexpectedtobefundedonacommercial
basis,asareotherchargessuchasbuildingrentsandutilitycosts.

29

ManyofthechallengesgeneratedbytheGeneral
Aviationindustryrelatetoitspassagefromthe
moreprotectedcommercialenvironmentof
previousdecades.Theindustryneedstomove
forwardtorealiseitsfutureinamodern,global
economy.

30

3:TheStateoftheIndustry
3.1

IndustryTrends

BTREdata(BTRE,2007)from1991to2006showthattotalGeneralAviation
flyinghourshaveexperiencedaflatgrowthtrendoverthelast15years,witha
peakactivityof1.88millionhoursin1997andalowof1.64millionhoursin
2004,anoveralltrendratedecreaseof0.2percentperyear.
F ig ur e2 : G en e ra la vi at io nf lyi n g h ou r s Aust ralia 1 99 1 200 6 ( B T R E, 20 0 7 )
2,000,000

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

Total
Hire and Reward
Non hire and reward

800,000

600,000

400,000

200,000

0
1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Figure3showsactivityperformancebysector,withnotabledecliningtrends
inprivateandbusinessflyingcoincidingwithastronggrowthperiodof
commercialairlineactivityinAustralia.Thegraphalsoshowsthecyclical
trendsinagriculturalactivity.

31

F ig ur e3: G en e ra la vi at io nf lyi n g h ou r sby sector Australia 19 91 2 0 06 (BTRE, 2 00 7 )

General Aviation Hours Flown 1991 - 2006
600,000

500,000

Charter
400,000
Hours Flown

Training

Aerial Work

300,000

Private
200,000

Business
100,000

Agriculture

20
06

20
05

20
04

20
03

20
02

20
01

20
00

19
99

19
98

19
97

19
96

19
95

19
94

19
93

19
92

19
91

Year

IncontrasttothedeclinesinprivateGAflying,recreationalaircraftactivity
hasgrownsignificantlyoverthepastdecade,from70,500hoursin1996to
over120,000hoursin2006(Figure4).
Thesecountervailingtrendsreflectalongtermstructuraladjustmentwithin
theindustryasenthusiastsmoveintothelowercostrecreationalsector.
Despiteitsoriginsinultralightaircraft,therecreationalsectornowincludes
manymodern,sophisticatedaircrafttypes,oftenadministeredunderalower
costregulatoryregimethanthosedirectlyoverseenbyCASA.
Balancingthislowercostregimeareanumberoflimitationsintheoperation
ofrecreationalaircraftincludingrestrictionsfromoperatingincontrolled
airspace,instrumentflyingconditionsandnightflyingandalimittotwo
passengeraircraft.Aircraftoperatingunderrecreationalcontrolarealso
limitedtoamaximumtakeoffweightof650kg.

32

Thousands

F ig ur e4 : R ec r e a t i ona lavi at i onf lyi ng h o u r s Aust ra lia 1 995 2 006 ( BT R E , 2 00 7 , Recrea tional
AviationAustralia)

130

120

110

100

90

80

70

60

50
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

3.2 TheStructureandSustainabilityoftheIndustry
StakeholdersconsultedduringthedevelopmentoftheActionAgendadrew
disparateconclusionsontrendsintheindustry.Someweredisappointedthat
theindustryseemedtohavefewerparticipantsandaircraftthaninthepast.
Otherssawtheindustryasfacinginevitableconsolidationandrestructuringas
itmovedforward.Indeeditmaybethecasethatthelevelofparticipationin
theindustryreachedanunsustainablepositioninthepastdueforinstanceto
previousstructuraldistortionsintheinvestmentmarketandsubsidisationof
airportpricingandregulatoryservices.
InparticularmanyparticipantsintheGeneralAviationindustrycontinuetofly
inoldaircraft,purchasedinthelate1970satafractionoftodayscosts.At
thattimeUSmanufacturerpricingwasmuchlower,thevalueoftheAustralian
dollarmuchhigher,andtheAustralianGovernmentoffereda40percent
investmentallowancetocontributetothecostofnewaircraft.
AsnotedbyIBISWorldBusiness(IBISWorld2007),theGeneralAviation
industryhastraditionallyhadmanyparticipantswhoareflyingenthusiasts
ratherthanbusinesspeople.Thishasconsequencesfortherestofthe
industryaspricesarekeptartificiallylow,therebythreateningthe
profitabilityofotheroperators.Thereisnoacceptedtransitionplanoutof
theindustryforunsustainablebusinesses.

33

Thereareanumberofmechanismsinplacetoconsultwithsmallbusiness.
TheseincludetheNationalSmallBusinessForum,theSmallBusinessCouncil,
theAustralianCompetitionandConsumerCommissionSmallBusinessAdvisory
GroupandtheCommissionerofTaxation'sSmallBusinessConsultativeGroup
andSmallBusinessAdvisoryGroup.TheOfficeofSmallBusinessalsoconducts
ongoingconsultationwithindustryandsmallbusinessrepresentative
organisations.
ThereiscertainlythescopefortheGAindustrytobetteruseexistingbusiness
advisoryservicesavailablefromalllevelsofgovernmenttoassistin
developingbetterbusinesspracticesandknowledgeofthenumerousissues
associatedwithoperatingasmallbusiness.
Recommendation3:IndustrytoworkwithrelevantstateandCommonwealth
industrydepartmentsunderexistingbusinessassistanceframeworkstoidentify
thecharacteristicsofhealthybusinessesandimproveplanninganddecision
makingforsmallenterprises.

3.3 TheCommercialisationoftheIndustry
Manystakeholderswhoprovidedinputduringthedevelopmentofthisreport
expressedstrongviewsaboutthecommercialisationoftheGeneralAviation
industry,particularlyprivatisationofairportinfrastructure.
AlthoughmanagementoffederalairportswascorporatisedundertheFederal
AirportsCorporation(FAC)in1987,truecommercialtermsbeganwiththeir
leasetoprivatesectoroperatorsinthelate1990s.InSydney,thisoccurredin
2003withtheleaseofSydney,Bankstown,CamdenandHoxtonParkairports.
Manylongtermoperatorshavefounditdifficulttoacceptthenew
arrangementswhilesomeairportlesseeshavefounditexactingtomanagethe
expectationofsomelongerestablishedtenantswhohavebeenunaccustomed
tonegotiatingtheirleaseinacommercialframework.TheSILGconsidered
thesechallengesatlengthandnotedthatimprovementsincommunications
maybebeneficialinsomesituationsbutthatdifferencesandtensionsare
likelytoremainintheshorttomediumtermwhiletheindustrycontinuedits
transition.ThisissueiscoveredinmoredetailinChapter5.

3.4 ExportofPilotTrainingServices
Australiasaviationhistory,generallyfavourableweather,relativelyhigh
availabilityofairspaceandproximitytogrowingAsianeconomiesputsthe
industryinaspecialalmostuniquecompetitivepositiontoexportaviation
skills,particularlypilottraining.

34

Whilesupportingdatafromindustrywerenotavailableforthisreport,itis
certainthatthemostsignificantgrowthopportunitiesforpilottrainingcome
fromdemandforpilotsinAsia.Despitecontinuedvolatilityinworldaviation
marketsandanuncertainglobaleconomicoutlook,forwardordersforaircraft
remainstronganddemandforpilotsislikelytoremainhighastheChineseand
Indianeconomiescontinuetogrow.
Airportlesseesandtrainingprovidersagreethattheseopportunitiesneedto
beexplored.Fromaninfrastructureviewpoint,investmentmayberequiredin
supportingaccommodationandservicesforstudents.Therearemany
opportunitiesforregionalAustralianairportstopursuetheseopportunitiesas
wellasthetraditionaltraininggroundsofcapitalcitysecondaryairports.In
fact,itmaybethatregionalareasofferacosteffectiveandcompetitive
alternativefortrainingnewpilots.
Asanexample,theFlightTrainingGroup,operatorofFlightTrainingAdelaide
(FTA),hasannounceditsintentiontoestablishamajorairlinepilottraining
facilitytobeknownasFlightTrainingQueensland(FTQ)inMaryborough.
FTQwillrampupincrementallyoverathreeyearperiodandinitsmature
configurationwillemploymorethan100staff,behometoapproximately40
trainingaircraftandflymorethan38,000traininghoursperyear,makinguse
ofaerodromefacilitiesatbothMaryboroughandHerveyBayairports.
OperationsatFTQareplannedtocommenceinmid2008.
TherehavebeenconcernsraisedthatAustraliadoesnotloseitscompetitive
positioninsupplyingpilottrainingtooverseascustomers.Again,thefocusof
theseconcernsisoncostincreasesinairportandregulatoryfeesthatmay
leadtocustomersmovingtrainingactivitytolowercostcountries.
InresponsetoarequestbytheAviationRegulatoryReviewTaskforceto
analysethecomparativecostsofflyingtraininginAustraliacomparedtoother
countries,CASApublishedareportinSeptember2007,onthecomparisonof
costsofflyingtrainingbetweenAustralia,USA,NewZealandandtheUK.
Ingeneralterms,thereport(CASA,2007b)foundthatthecostofobtaininga
commercialpilotslicenceandinstrumentratinginAustralia,NewZealandand
theUSAwerethelowestandsimilar.
Keyfindingsincluded:
Inalmosteveryaspectofflyingtraining,theUKwassignificantlymore
expensivethanAustralia,NewZealandandtheUSAreflectingahigher
costoffuel,labourandCAAservicecosts.Coststostudentsthrough
licenseandexamfeesweresignificantlygreaterintheUKcompared
withtheotherthreecountries.
OrganisationsintheUSAindicatedthattheadministrativeoverheads
stemmingfromtheFederalAviationAdministration(FAA)were
negligible.

35

Thereweresignificantdifferencesinthecoststructuresbetweenthe
USAandtheotherthreecountries.
WhiletheSILGbelievedstronglythatsecondarycapitalcityairportswill,and
should,remainanimportantpartofGAinfrastructurefortheforeseeable
future,itnotedalsothegrowthopportunitiesofAustraliasregionsandtheir
airportsinprovidinggrowthopportunitiesfortheexportofpilottraining
services.Thisisaveryimportantprospectandshouldnotberelinquished.

3.5 ExternalCompetitionfortheGeneralAviationIndustry
ManyGeneralAviationenthusiastsgainedtheirexperienceintheindustryata
timewhentheavailabilityofcompetitiveleisurepursuitswaslimited.
Learningtoflywasoneofrelativelyfewadventureactivitiesinthe1960sand
70s;itsdevelopmentacceleratingafterWorldWarTwo.
Throughoutthe1980sand1990s,competitionforpeoplesleisuretimeand
financialcommitmenthasintensified.Improvedtourismproducts,home
entertainmentandcomputersimulationofflightexperiencesarebutseveral
competingactivitiesthathavegrownstronglyoverthepastseveraldecades
andareactivelymarketedbysuppliers.
Also,GeneralAviationstraditionalcompetitiveedgeinlongdistance
transporthasbeendiminishedbytheimprovedaccesstocommercialairline
transportthathasresultedfromcheaperdomesticairlinefaressinceairline
deregulationin1990.Whereitwasonceeconomictoflyoneortwopeople
interstate,theprivateflyernowoftenfindsairlinetransportmoreattractive.
Furthermore,improvementsinroadsandmoderncarshaveoutstripped
productimprovementsinsmallaeroplanesforshorterdistancetransportalso.
Whileitistruethatsomepeoplewillcontinuetobedrawntoflyingbyits
excitementandromanticisminanycase,toremaincompetitivetoa
sustainablemarkettheindustrymayhavetoimproveitsmarketingactivities
toensureitfeaturesintheawarenessofyoungpeoplestartingcareersaswell
aspeopleassessingcompetingleisureactivities.
Recommendation4:Industryneedstoexpandandimproveitsmarketing
activitiestoattractnewparticipantsintotheindustry,highlightingthe
edificationandopportunitiesthatlearningtoflycanprovide.

36

3.6 OverseasExperience
ThechallengescurrentlyfacedbytheGAindustryarenotuniquetoAustralia.
TheCAAStrategicReviewofGeneralAviation(CAA,2006)foundslightgrowth
inoverallGeneralAviationactivitywithmarkeddisparitieswithinthesector.
TheUKReviewnoted(pviii)thecompositepictureisonewhereGAappearsto
beroughlyinsteadystate,orperhapsexperiencingslightgrowth.Italsonoted
(pii),Althoughoftenpresentedasasectorindecline,thisReviewhasnot
foundevidenceofthis.ManypartsofGAaregrowingstrongly,inparticularthe
businessaviationmarketandthesmallerendofthemarket(suchasmicrolights
andhelicopters).
TheUKReviewfoundthatcompetitionforaffordableaccessatairfieldswasa
majorissueforparticipantsascommercialaviationgrew.Moresothanin
Australia,accesstoairspacewasalsoacriticalissue.
IntheUnitedStates,FAAstatistics(FAA,2007)andforecastsshowsimilar
negativegrowthtrendsoverrecentyears,withmodestgrowthforecastsfor
thefuture.TotalGeneralAviationhoursflownfellfrom30.2millionin2000to
27.5millionn2006,anaverageannualdecreaseof1.5percent.Forecast
growthto2020rangesfrom3.2to3.8percent.
RecentdebateintheUnitedStateshasfocussedonfutureFAAfunding
arrangements.ProposalshavebeenconsideredbyCongressfornewuserpays
chargesincludingincreasedtaxationonaviationfuelandcongestioncharging
atairports.TheGeneralAviationindustryhasarguedfortheretentionof
broadertaxpayerfundedmeasuresfortheFAA.Revisedproposalsare
expectedtobeconsideredbyCongresslaterthisyear.
TheSILGalsosoughtinformationonCanadasGAindustryasauseful
comparisontotheAustralianexperience.Unfortunatelydatacouldnotbe
sourcedforthispurpose.

37

Alllevelsofgovernmenthavearoleinproviding
bothefficientandeffectivesupportand
regulatoryandplanningarrangementsforthe
AustralianGeneralAviationindustry.

38

4:RoleofGovernments
4.1

Background

AllthreelevelsofgovernmentinAustraliahavearoleattheinterfacewiththe
GeneralAviationindustry.

4.2 Commonwealth
TheCommonwealthhasalonghistoryofregulatinganddevelopingAustralias
aviationindustrydatingbacktothepassingoftheAirNavigationActin1920.
Aswellasitscloserelationshipwithdefencecapability,theCommonwealths
rolefollowedfromitsconstitutionalresponsibilityforinterstatetradeand
thereforetransport.
ThatresponsibilitycontinuestothepresentwiththeCommonwealths
responsibilityforairnavigation,aviationsafetyandaviationsecurity.Also,
theCommonwealthcontinuestoregulateandoverseeplanningapprovalson
22majorairports,includingthoseintheeightstateandterritorycapitalcities.
TheCommonwealthalsoprovidessomeassistancetotheindustrythrough
subsidiestosmallregionalairlinesinmeetingtheirAirservicesAustralia
EnrouteChargesfees,assistancewithmeetingsecurityupgraderequirement
atregionalairports,assistancetomeetsafetyupgradesatremoteairportsand
subsidiestoensureweeklyairservicestoremotecommunities.
CommonwealthGovernmentresponsibilitiesalsoincluderegulationaffecting
theGeneralAviationindustry.Themostobviousoftheseareregulations
specificallyaddressingsafeoperationofaircraft.Thesearediscussedindetail
inChapter7.

4.3 StatesandTerritories
Australiasstates,alongwithlocalcouncils,exerciseplanningcontrolover
AustralianairportsnotcoveredbytheCommonwealthAirportsAct1996andin
somecasesalsoassistwithmaintenanceanddevelopcostsatregional
airports.TheNewSouthWales,SouthAustralian,WesternAustralianand
Queenslandgovernmentsalsoregulateintrastateairservicestosmaller
regionalcommunitiestohelpensuretheviabilityofserviceswhere
competitivemarketsarenotpossible.
Governmentsatalllevelsalsohavevariousrolesinprogrammesthatsupport
theindustryincludingbusinesssupportprogrammes,educationandtraining.

39

Moredetaileddiscussionofgovernmenteducationandtrainingprogrammesis
providedinChapter6.
Statesarealsoresponsibleforthelevyingofcertaintaxessuchaspayrolltax
thatarepayablebyGeneralAviationbusinesses.Theyarealsoresponsiblefor
regulationssuchasthoserelatingtoenvironmentalandoccupationalhealth
andsafetyrequirementswhichimpactonGeneralAviationbusinesses.While
theindustryacceptsthenecessityoftheseregulatoryrequirements,some
submissionsarguedthatthereshouldbemorecommunicationand
cooperationbetweenjurisdictionstolessenanyunnecessaryregulatory
burdenonsmallbusinesses.

4.4 LocalGovernments
Localgovernmentsareresponsibleforthemaintenanceandoperationofmany
ofAustraliasregionalairports.Inthecaseofthe234airportsformerly
partiallyfundedbytheCommonwealthAerodromeLocalOwnership
Programme,theresponsibilitiesofinvestmentplanningandfundingofmajor
upgradesarerelativelynew.Whilesomelocalcouncilsareformingeffective
partnershipswithlocalregionalairlinesandGAoperatorsthatserveboththe
operatorsandcommunitieswell,othersarestillfindingthemanagementof
airportinfrastructureanabnormaltask.
Chapter5hasmoredetailontheseparticularissues.
TheSILGnotesthatthemultijurisdictionalnatureofaviationadministration
canattimesbedifficultforindustrytodealwithanditisimportant
governmentsareawareofthisandseektominimiseanynegativeimpactfor
theindustry.
Recommendation5:Itisimportanttocontinuetoimprovecommunication
betweengovernmentstotakeaccountofissuesrelevanttotheGeneralAviation
industry.ThesecommunicationscanbefocussedintheAustralianTransport
CouncilAviationWorkingGroupcomprisingCommonwealthandStatetransport
officialsandtheAustralianLocalGovernmentAssociation.

40

Perhapsthemostdifficultchallengefacedbythe
industryisinintegratingplanningand
communicationsprocessesbetweenairport
operatorsandtenantbusinesses.

41

5:AirportAccess
5.1

Background

Upuntilthelate1980stheAustralianGovernmentwasactivelyengagedasthe
owneroperatorofmanyofAustraliasairports,eitherthroughtheFederal
AirportsCorporation(FAC),establishedin1987tomanage22ofAustralias
majorairports,orthroughthe234ALOPairportswhichwerecofundedwith
individuallocalgovernmentauthorities.
In1997theAustralianGovernmentcommencedairportprivatisationundera
seriesoflongtermleasesofairportsthenoperatedbytheFAC.Indoingso
theGovernmentrecognisedthatsomehadsignificantmarketpowerand
introducedpriceregulationatallcapitalcityandsomeregionalairportsto
limitpriceincreasesinthefirstyearsofoperationofthenewcommercial
regime.
TheAustralianGovernmentcurrentlymaintainsalighthandedregulatory
frameworkthatencouragesthecontinuedgrowthoftheaviationsectorby
allowingprivatebusinessestonegotiatebusinessoutcomeswithminimal
Governmentintervention.Thishasresultedinsignificantinvestmentin
Australianairports.
HowevertheprivatisationofsecondaryairportshasresultedinGAoperators
beingexposedtoacommercialchargingregimeneverfullyexperiencedunder
theprevioussystemofgovernmentownership.Thishasexposed
vulnerabilitiesinthebusinessmodelsofmanyGeneralAviationbusinesses
thathadnotbeenevidentpreviously.
ManysmallairportbasedGAoperatorsrealisealackofmarketpowerintheir
dealingswithairportleaseholders.Theirbusinessesoftenrelyonbeingonan
airportsiteandtheywilloftenhavethechoiceofonlyoneortwoairportsin
eachcapitalcity.Airportsrequiresignificantcapitalinvestmentand,assuch,
theytendtobegeographicallydispersed.

5.2 AirportCosts
Inmanycircumstances,rentsleviedonhangars,commercialpremisesandland
havebeenincreasing,particularlyatthemajormetropolitanGAairports.The
leasesconcernedarecommercialagreementsbetweenairportlesseesand
theirtenantsandarethereforearelativelynewdevelopmentintheindustry.
ItislikelythatthesepricechangeswillhaveleadtoareorganisationofGA
activity.Participantsintheindustrywhoaresensitivetochangesintheprice
ofairportaccessmayhavemovedawayfromhighercostaerodromes,trading
offreducedcostsforalessconvenientlocationandperhapsmorelimited

42

infrastructure.Thecostsofrelocationcanbesignificantassometenantsmay
losesunkcapitalcosts,suchasthebuildingssituatedonthesiteoftheir
lease,iftheychoosetorelocate.
GenerallyrentsatGAairportshaveincreasedsignificantlysinceprivatisation,
reflectingthefactthatformerFACrentswereunrealisticallylow.Also,
commerciallydrivenairportlesseesadoptedrentsmorecommensuratewith
commercialratesatoffairportlocations.However,thisisnotuniformor
solelytheresultofairportprivatisation.Rentsvarygreatlybetweenairports
andtenants.Althoughoperatorsunderstandtheneedforairportmanagersto
deriveacommercialreturnfromtheirassets,somestakeholdersbelievedthat
thedriveforrentalincreasesatsomeairportshasbeentosuchadegreethat
animosityhasbeengenerated.Airporttenantsoftenfocusoncomparisons
betweentheoldFACrentsandcurrentrentswithlittleregardtomovements
ingeneralcapitalcityrealestateprices.Airportlesseeshavepointedoutthat
thevalueofrealestateincapitalcitieshasincreasedmarkedlyoverthelast
decadeandairportvalueswilltosomeextentreflectthat.
Whiletherewasmuchanecdotalevidenceprovidedbyoperatorsofa
significantpercentageincreaseinrentssinceprivatisation,noevidencewas
presentedthatclarifiedtheproportionofcostsattributabletoairportrents.
Thisisakeyquestionfortheindustry.Increasedrentsmaybeacceptableif
theabilitytogenerateareturnontheinvestmentisthere.HowevertheSILG
wasunabletoobtaininformationaboutrevenueortheproportionalcost
impactofairportcosts.

5.3 AirportTenantRelationships
IngeneraltheSILGhasfoundthattherelationshipbetweenairportoperators
andtenantscanattimesbecharacterisedbyalowleveloftrustleadingto
miscommunicationandsignificantproblemswhenattemptingtonegotiate
arrangementswhichshouldbemutuallybeneficial.TheSILGfoundinsome
instancesthatitwasevendifficulttoengagewithpartiesfrombothsides
wherecommunicationsseemtohavebrokendown.ItisapriorityfortheGA
industrytomoverelationshipsbetweentenantsandoperatorsforwardtoa
morematurecommercialfooting.
Tenantsandoperatorshaveappearedtohaveunrealisticexpectationsat
times.Forexample,thereisanexpectationfromsometenantsthatratesnot
becommerciallybased,andanexpectationfromsomeoperatorsthatvery
shorttermleasesshouldbeacceptabletotenants.
Theissueofleasetenurewasraisedonnumerousoccasionsduringindustry
consultations.Manytenantsexpressedfrustrationataninabilitytosecure
longtermleasesfromairportlessees.Thiscanmakeitdifficulttoplanand
financeinvestmentininfrastructuresuchashangars.Airportoperators,on

43

theotherhand,pointedoutthatitwasdifficulttoengageinlongterm
planningofsitesthatcomprisednumeroussubleasesofvaryingperiods,in
somecasesextendingto20yearsormore.Sometenantsalsosoughtto
negotiatelongertermleasestomaximisethevalueoftheirbusinessesforsale
uponretirement.
Whiletheindustrygenerallyacceptsthatairportsshouldcontinuetooperate
onacommercialfooting,theSILGbelievedthatsomeoftheunresolved
tensionsbetweentenantsandairportoperatorsareunproductiveand
damagingtotheindustryasawhole.Whilerecognisingthatovertregulation
isnotnecessarilytheanswer,alowcostmediationmechanismshouldbe
useful.
Recommendation6:Formalmediationprocesstobeestablishedwiththe
followingcharacteristics:
1.

Toapplyatsecondarycapitalcityairports;

2.

Shouldfollowinitialbestendeavourscommercial
negotiationsbetweenlesseesandtenants;

3.

Fundedbyusers;

4.

Notreplacingexistingregulatoryprotections.

5.4 AirportPlanning
Thegeneralphilosophybehindairportprivatisationwastoallowmore
efficientuseofairportassetsandtounlocktheinvestmentpotentialofthe
privatesectortodevelopandmoderniseAustraliasairports.Thereisa
misunderstandinginsomesectorsoftheindustrythatthelighthanded
regulatoryapproachadoptedtodatebyGovernmentamountstototal
deregulation.
Theprocessbywhichairportleaseholdersplanlongtermandmajor
developmentsonairportsishoweverexplicitlyregulated.Airportsmust
prepare20yearmasterplansfollowinglegislatedconsultationprocedures
whichparallelstategovernmentplanningconsultationrequirements.Input
receivedduringtheseconsultationsistakenintoaccountbythe
CommonwealthMinisterforTransportandRegionalServices(nowMinisterfor
Infrastructure,Transport,RegionalDevelopmentandLocalGovernment)when
consideringtheMasterPlanforapproval.Masterplansmustthenbeupdated
followingthesameprocesseachfiveyears.

44

Airportsmustfollowasimilarprocessformajordevelopmentproposalsovera
certainthresholdvalue,currently$20million.
AnumberoftimesduringtheSILGsindustryconsultationsitwasapparent
thatairporttenantshadnottakenadvantageoftheconsultation
arrangementstowhichtheywereentitled,orwereunawareoftheprocess.In
somecases,tenantsweredissatisfiedwithdevelopmentsattheirairportbut
hadnotengagedintheformalconsultationprocesstoallowtheMinsterorhis
Departmenttotakethoseviewsintoaccountwhenassessingaproposal.
Recommendation7:Tenantsareapparentlynotalwaysengagedinthemaster
planningprocessatairports.Thereisaneedforrelevantindustryassociations
andairportoperatorstoraiseawarenessofairportmasterplanningprocesses,
particularlywhenairportmasterplansordevelopmentproposalsareissued.

5.5 LocalGovernmentControlledAirports
Therehasbeenmuchfocusonthe22formerFACairportsoperatedunderlong
termleasesfromtheCommonwealth;otherairportsfallundertheplanning
andregulatoryenvironmentofstateandlocalgovernments.
Thetransferofownershipofaerodromestoprivateownersandtolocal
councilshasresultedinpriceincreasesinlanding,parkingandother
infrastructurecharges.Commercialrentshavealsoincreasedtobemorein
linewithcomparablenonaviationbusinessleases.Airportstransferredto
localcouncilsundertheALOPweretransferredwitharequirementthatthe
localcouncilagreedtooperatetheaerodromeandtokeepitopenforpublic
use.However,anydecisiontocloseorconverttoalternativelanduseexisting
airportsnotcoveredbyALOPagreementsissubjectonlytolocalcounciland
stategovernmentplanningprocesses,withnoregulatoryroleforthe
Commonwealth.ConcernswereraisedduringthedevelopmentoftheAction
Agendathatcouncilsareattimesunpreparedtoassessapplicationsfor
airportdevelopmentincludingbuildingofnewairstripsorconversionof
existingrurallandtoairstripuse.
Recommendation8:Localandstategovernmentstoworkwithindustryto
improveexistingairportdevelopmentprocedures.Thisshouldenablethe
processtobetransparentandultimatelyencourageinvestmentinnewor
existingairports,acknowledgingtheneedforappropriatecommunity
consultationand,whereappropriate,obligationsunderALOPDeedsofTransfer.
AnunexpecteddevelopmentsincetheleaseoftheformerFACairportshas
beentheuncertaintycreatedwithintheindustrybyatleastoneproposalto
closealeasedairportanddevelopitforalternativeuses.Inonecase,the
proposalincludedplanstobuildareplacementairportfollowingalandswap
withtheCommonwealth.AlthoughtheAustralianGovernmenthasgivenno

45

supporttoanysuchproposal,uncertaintyhascertainlybeengeneratedforthe
tenantsconcerned.Insomecasesthishasbeencompoundedbydifficultyin
negotiatinglongtermleasesandlefttenantswithacriticallyuncertain
investmentenvironment.
Recommendation9:TheAustralianGovernmenttoconfirmtherequirementthat
leasedCommonwealthairportsmustremaininuseaseffectiveairportsandnot
betotallyconvertedtootherpurposes.
TheSILGnotesthatRecommendation9is,infact,mandatedbytheAirports
Act1996whichstates:
Anairportlesseecompanyhasastatutoryobligationtousetheairport
siteasanairport.
However,thereappearstobealowlevelofawarenesswithintheindustryof
thisandtheSILGbelievesitwouldbebeneficialfortheGovernmenttomakea
clarifyingstatement.
Theobligationforairportstoremainairportshoweverdoesnotguarantee
thebusinesscontinuityofanyindividualGeneralAviationbusiness.Asin
manyotherindustries,therehasbeenconsolidationandrestructuringof
GeneralAviationbusinessesandthereappearstobemovementupthevalue
chainatcapitalcitysecondaryairports.
ThegrowthoflowcostairlineactivityinAustraliahasthusfarnotimpacted
onsecondaryGeneralAviationairportsincapitalcitiessuchasBankstown,
Moorabbin,Parafield,JandakotandArcherfield.However,useofsecondary
airportsforlowcostcarriersisanessentialpartofthatsectorsbusiness
modelinEuropeandtheUnitedStates.Itisquitelikelythatairportoperators
andairlineswilllookforopportunitiesinthatregardinAustralia.
SuchopportunitiesneedtobepursuedfollowingthelegislatedMasterPlan
processcurrentlyinplaceundertheAirportsAct.

46

Improvedtertiaryleveltraining,includingin
businessskills,willhelpdevelopthethoroughly
professionalpeopleneededtomoderniseand
competeinaglobaleconomy.

47

6:EducationandSkillsintheGeneralAviationSector
6.1

Pilots

Airlineshadtraditionallybeenabletorelyonasupplyofairforcetrained
pilotsgoingbacktotheendoftheSecondWorldWar.Thiscareerpath,
combinedwithalargenumberofpilotspreparedtoselffundtheirtraining
duetoastrongpersonalinteresthasallowedmajorairlinestoattract
experiencedpilotsasanemployerofchoice.Theindustryhasbenefitedfrom
thestrongpersonalappealofflyingasacareerandtheofferofrewardsasa
majorairlinepilot.Althoughtherehavebeencyclicalpeaksandtroughsin
supplyinthepast,theAustralianaviationindustryhasingeneralnotneeded
tofundentryleveltrainingforpilots.Buttheindustryisonlynowresponding
tothestructuralchangeinthelabourmarketofthelastfewyears.
TheAustralianairlineindustryhasbeeninacontinuousgrowthperiodsince
thecollapseofAnsettinSeptember2001.Thisgrowthisexpectedtocontinue
fortheforeseeablefuture.Worldwide,thereissignificantairlinegrowth,in
particularinAsiaandtheMiddleEast.Aninternationalshortageofpilotsis
reportedlydeveloping,withhighdemandforAustraliantrainedpilots
particularlyfromAsiaandtheMiddleEast.
Theimpactofpilotshortagesislikelytohavedifferentialimpactsonthe
varioussectorsoftheAustralianaviationindustry.Majorairlinessuchas
Qantas,JetstarandVirginBluemayexperienceincreasesincostsand
potentiallimitstoexpansionofoperationsbuthavealreadytakenstepsto
addresstheproblem.ForexampleQantashasannouncedanexpansionofits
pilottrainingprogrammeinpartnershipwithseveraltertiaryinstitutionsthat
maybeeligibleforAustralianGovernmentassistancethroughFEEHELP.
Australiaslargestindependentregionalairline,RegionalExpress,(Rex)may
alsoexperiencelimitstoitsgrowthandexpansioninregionalAustralia.
AirlinessuchasRexhavetraditionallyactedasflightdeckstaff(feeders)to
biggerairlinessuchasQantas.Regionalairlinesabilitytoretainpilotshas
reportedlydeclinedasmajorairlinesacceptlowerexperiencethresholds
(usuallyexpressedinhoursflown)tofillvacancies.Rexhasreporteda60per
centattritionrateinpilotsoverthepasttwelvemonthswhichhascaused
difficultieswithservicesonsomeroutes.
GeneralAviationoperatorsincludingsmallerregionalairlines,charter
operatorsandproviderssuchastheRFDS,andsearchandrescueoperators
arealreadyreportingcriticalshortagesthatarecompromisingtheirabilityto
operate.
Ofparticularconcernarecommonreportsthatexperiencedinstructorsare
beingrecruitedbyairlinestofillpilotvacancieswhichimpactsontheabilityof
theindustrytotrainfuturepilots.

48

Thesituationoverseasappearstosupportconcernsoveraglobalshortageof
pilots,withreports(TheEconomist,2007)thatIndiahasfewerthan3,000
pilotstodaybutwillneedmorethan12,000by2025.Chinawillneedtofindan
averageof2,200newpilotsayearjusttokeepupwiththegrowthinair
travel,whichmeansitwillneedmorethan40,000pilotsby2025.Inthe
meantime,withmajorinternationalairlinestrainingonlyafewhundredpilots
ayear,Asianairlineshavetakentopoachingthem,oftenfromeachother.
PhilippineAirlines,forinstance,lost75pilotstooverseasairlinesoverthe
pastthreeyearsandChinahasbeentryingtolurepilotsfromBrazil,among
otherplaces.
WhilethesedevelopmentscreateopportunitiesforAustralianflighttraining
businesses,theyalsocreatesignificantchallengesinensuringthereare
adequatelocalpilotstoprovideforthecurrentandfuturedomesticindustry,
nottomentionsufficientpilotinstructorstotrainthenextgenerationof
pilotsfortheindustry.
Inexperiencedpilotsandflyinginstructorshavetraditionallybeenmodestly
remuneratedandpreparedtoacceptlowpayintheinterestofbuildingtheir
hoursforfutureairlineexperience.Asdemandforpilotsfromairlineshas
increased,thenecessityforinstructorsandinexperiencedregionalairline
pilotstobuildlongperiodsofexperiencehasdeclinedandtheturnoverat
trainingschoolsandsmallairlineshasbecomegreater.

Recommendation10:GeneralAviationbusinessestodevelopstrategiesto
attractandretainskilledemployees.Examplesinclude:
Contributingtothecostoftrainingthroughmeasuressuchas
cadetships,scholarshipsandloanschemes.
Developingmorecreativeretentionstrategies.Thiswillinevitably
requirepartnershipswithairlines.
Takingmeasurestorespondtoatightlabourmarketsuchas
increasingadvertisingorofferingmoreattractivesalary/working
arrangements.
Industrybodiestobettermarketaviationcareersatschoolsandto
organisationsspecialisinginretrainingmatureagedworkers.

6.2 CurrentIndustryInitiatives
InitiativesbyAustralianairlinestoexpandtherecruitmentandtrainingof
pilotssuchasthosedetailedinSection6.1showthattheindustryhasnot
beenunresponsivetoitscurrentchallengesinaddressingpilotshortages.At
thisstage,however,itisnotclearwhethertherehasbeensufficienttakeup

49

ofthesenewcoursestoaddresscurrentshortagesandmeetthefutureskills
needsoftheindustry.
AFuturePilotTaskForcehasbeenestablishedbyindustryrepresentativesto
focusontheprovisionofSolutionsforAustralianAviation.Comprising
representativesfrommajorairlinesincludingQantasandVirginBlue,flying
trainingorganisations,highereducationinstitutions,industryorganisations
andCommonwealthGovernmentDepartmentsincludingCASAandthe
DepartmentofInfrastructureandTransport,theTaskForceisaddressingthe
significantissuesfacingaviationinAustralianowandintheimmediatefuture
withemphasisonthepilotshortage.
ParticipantsintheTaskForceidentifiedthemajorcontributingfactortothe
pilotshortagebeingtheinabilityofthetrainingsectortoretainqualified
flyinginstructors.TheTaskForceparticipantshaveagreedtoworktogether
topromotetheroleoftheflyinginstructorasanessentialelementinensuring
Australiasabilitytoproducesufficientpilotsforthefutureindustrydemand.
Itwasidentifiedthattheindustryneededtoincreaseinstructornumbersbya
sustained15percentinordertomeettheprojecteddomesticpilotdemand
forthenextfiveyears.
Alsoidentifiedwastheneedtopromotetheperceivedplaceofaflight
instructorqualificationinthecareerpathoftheprofessionalpilot.Airline
representativesreinforcedthisneedforflightinstructiontoberecognisedas
aprofessionbytheindustryandforflightinstructiontobepromotedasone
ofthebestqualificationsanaspiringairlinepilotcanhaveontheirCV.There
wasconsensusthatpilotswithaflightinstructorbackgroundadaptedeasily
andquicklytotheairlineenvironment.Thiswasparticularlytrueformore
advancedandexperiencedinstructors.
AnotherkeydecisionoftheTaskForceistoestablishajointAirlineWorking
Grouptodevelopandintroduceaunifiedindustrypreselectionprocess
consistingoftailoredpsychometric,numeracy,literacy,decisionmakingand
motorskillsteststoidentifypilotswithpotentialtobebothinstructorsand
airlinepilots.Thiswouldgivepotentialcandidatestheconfidencetochoose
flightinstructionasthemostsuitablecareerpathtotheairlines.
Lastly,theTaskForceidentifiedtheneedtopromotepilotingtothe
communityasaworthwhileandrewardingcareer.Aspartofthispromotion
theTaskForcewillinitiallyseektoenticethosequalifiedinstructorswho,for
avarietyofreasonshavelefttheindustry,toreturn.TheTaskForcenoted
thatthereturnofasfewasfivepercentofthisgroupwouldhaveapositive
impactontheindustry.Secondly,theTaskForcewouldcommenceplanninga
RoadshowaroundmajorAustraliancitiestopromotepilotingasacareerwith
theairlinesandtrainingorganisationsworkingcooperativelyinsupportingand
staffingtheseRoadshows.TherecentQantaspilotrecruitmentRoadshow
wouldbeusedasamodel.

50

TheparticipantsnotedthegenerosityofQantasandVirginBluein
participatinginandsupportingtheTaskforceandallwelcomedtheunifiedand
cooperativemannerinwhichairlines,governmentandthetrainingindustry
wereworkingtogethertocreatesolutionsandapositiveoutcomeforthe
industry.
Multicrewpilotlicence
CASAiscurrentlydevelopingtheproposedmulticrewpilotlicence(MPL)
regulatoryframework.TheMPLisdesignedtodeveloptheabilitiesneededto
flymulticrewairlineaeroplanes.Comparedtotraditionaltrainingpathwaysit
makesgreateruseofsimulators,adoptscompetencybasedtrainingmethods
andfurtherapplieshumanfactorsandthreatanderrormanagementinall
phasesoftraining.
Whilstsomeemphasishasbeenplacedintheindustryontheadvantagesof
theMPLinaddressingpilotshortages,thisisnottherationaleforits
introduction.TheMPLisanInternationalCivilAviationOrganization(ICAO)
initiativedesignedtocreateatrainingandlicensingsystemformulticrew
operationsthatwillproducebettersafetyoutcomes.
TheabilityoftheMPLtosignificantlyincreasethesupplyofpilotstoairlines
intheshorttermisdoubtful.Airlinesareunlikelytochangefromtraditional
methodsoftrainingovernightandtimeframesandcostsareyettobe
establishedundertheMPLsystem.TheproposedintroductionofMPLwill
resultinbothopportunitiesandchallengesforthetraditionalGAsector.
Flighttrainingbusinesseswillneedtoadapttothisnewtrainingenvironment
toremaincompetitiveandtoexploreexportopportunities.

6.3 TrainingFramework
TheTransportandLogisticsIndustrySkillsCouncil,oneofninesectoral
councilsthatformpartoftheNationalTrainingSystem,developsTraining
Packagesfortheaviationsectorinconsultationwithindustryandusing
fundingassistancefromtheAustralianGovernment.TheseTrainingPackages
arekeyresourcesforRegisteredTrainingOrganisations(RTO)todeliver
training,assesscompetenciesandissuenationallyrecognisedqualifications.
AReviewoftheAviationTrainingPackageisnearingcompletionandis
expectedtobereleasedshortly.Thereviewhasfoundthattheexisting
CertificateIVinTransportandDistribution(AviationFlightOperations)didnot
meetindustryneedsinthatitdidnotreconcilewithCASAlicensing
requirements.
Theoutcomeofthereviewistorestructurethecurrentframeworkofthe
CertificateIVFlightOperationsqualificationstomoreaccuratelyreflect
industryandregulatoryneeds.Therestructuringremovestheexisting

51

qualificationTDA40203ACertificateIVinTransportandDistribution(Aviation
FlightOperations)toprovidefortwonewqualificationsforcommercialairline
pilotsTDA40107CertificateIVinAviationOperations(CommercialPilot
AeroplaneLicence)andcommercialhelicopterpilotsTDA40207CertificateIV
inAviationOperations(CommercialPilotHelicopterLicence).Thesetwonew
qualificationsarealignedtonationallicencerequirements.
ManyflighttrainingschoolsarenotformallyrecognisedRTOsastheyhave
beenfocussedonhelpingstudentsgainCASAlicencequalifications.Reaching
RTOstatusisimportantasonlyRTOscan:
Delivernationallyrecognisedcoursesandqualifications
ApplyforAustralian,stateandterritorygovernmentfunding
Createnewaccreditedcoursesinresponsetospecificdemands
RegisteronCommonwealthRegisterofInstitutionsandCoursesfor
OverseasStudentstoprovidecoursestooverseasstudentsstudyingin
Australia
Flighttrainingproviderswhoareyettodososhouldbeawareofthebenefit
ofestablishingthemselvesasanRTOtobroadentheirpotentialcustomer
base.

6.4 GovernmentAssistanceforPilotsTrainingintheVocational
EducationandTrainingSector
TheAustralianGovernmentannouncedin2007thatFEEHELPwillbeextended
tofullfeepayingstudentsindiplomaandadvanceddiplomacoursesthatare
accreditedasVocationalEducationandTraining(VET)qualifications,wherean
approvedVETprovidercandemonstrateagreedcredittransferarrangements
intoauniversitydegree.TheintentionoftheFEEHELPforVETmeasureisto
removesomeofthebarriersthatexistforstudentswhohavechosento
pursuefurtherhigherlevelqualificationsthroughtheVETsystem.
Subjecttothepassageoflegislation,theschemeisexpectedtocommence
during2008.Itisunderstoodthatlegislation,processesandguidelinesare
presentlybeingdevelopedfortheadministrationofthescheme.Thisis
expectedtoincluderegistrationcriteriaforproviderswishingtoparticipate
andguidelinesforcredittransferarrangementsbetweenVETandHigher
Educationproviders.
ToaccessFEEHELP,aviationtrainingproviderswillneedtobeRTOsandapply
totheDepartmentofEducation,EmploymentandWorkplaceRelationsto
becomeapprovedtoofferFEEHELP.
AnRTOhasbeenassessedascompliantwiththeAustralianQualityTraining
FrameworkStandardsforRTOsandcancompetentlydeliverand/orassessthe

52

trainingqualificationsitisregisteredtoprovideandisauthorisedtoissue
nationallyrecognisedqualifications.
RTOsofferingaviationqualificationsmustapplytoqualifyforFEEHELP
demonstratingthattheywilldeliverdiplomaandadvanceddiplomacourses
whichhavesignificantcredittransferarrangementswithaHigherEducation
Institution.Trainingorganisationswillhavetonegotiatedirectlywitha
universitytoensurethattheirvocationalcourseisacceptedtoprovidecredit
transferforahighereducationqualification.Universitieswithanexisting
vocationalarm,suchasSwinburnewillbebestplacedtoensurethat
vocationaltrainingalsoprovidescreditforatertiaryqualification.
Giventhis,studentsarethenabletoapplytoborrowuptotheamountofthe
tuitionfeebeingchargedbythetrainingproviderthroughFEEHELP.If
approvedtheAustralianGovernmentpaystheamountoftheloandirectlyto
thestudentsprovider.Aloanfeeof20percentappliesforundergraduate
coursesofstudyandtheloanisindexedtotheCPI.Studentsmayborrowup
totheFEEHELPlimitof$81,600(2008limit,indexedinfuture)intheir
lifetime.
StudentswhoreceiveFEEHELPrepaytheloaneitherthroughvoluntary
repaymentsorthroughthetaxsystemoncetheirincomereachestheminimum
thresholdforcompulsoryrepaymentof$39,825(200708basis).
Stategovernmentsareprimarilyresponsibleforvocationaleducation.States
maychoosetooffersupportedplacesforvocationalpilottrainingbutarenot,
asfarastheSILGisaware,activeinthisarea.Ifsuchaplaceoffereda
significantcontributiontowardspracticalpilottraining,theywouldbe
expensiveand,assuch,wouldprobablybetreatedasalesserpriorityforstate
vocationaleducationfundingthenotherlesscostlyvocationaltraining.

6.5 GovernmentandIndustryAssistanceforPilotsTraininginthe
HigherEducationSector
TheQantasCadetPilotProgramcurrentlycontainsanoptiontocompletea
BachelorofTechnology(Aviation)atSwinburneUniversity.Cadetsenrolledin
thisprogrammeareabletocompletethetertiarycomponentoftheirstudies
inaCommonwealthfundedplace.Howevertheflyingcomponentofthe
Bachelor'sDegreeisaselffundedcoursewithallcostsassociatedwithflight
trainingbeingtheresponsibilityoftheCadet.Qantasadvisesthatcadets
shouldexpecttopayatleast$75,000fortheflighttrainingcomponentofthis
qualification.
Qantasrecentlymadethreesignificantannouncementsinrelationtopilot
training.Thefirstofthesedetailedtheestablishmentofanew,standalone
flighttrainingbusinesswiththeaimoftraining3,000newpilotsforthe

53

QantasGroupoverthenext10yearsandasignificantnumberofpilotsfor
otherairlines.Qantasalsoannouncedasignificantexpansionofitscadet
program,anticipatingofferingover100cadetshipseachyear.
TherecentlyannouncedQantascadetshipoffersimprovedemployersupport
andmorecertaintyofcontinuingemploymentwiththeQantasGroupthanpast
schemes.Uponsuccessfulcompletionoftherelevantcourse,cadets
undertakeafurthertwoyearsofcompulsoryflyingemploymentexperience,
withpositionssecuredbytheQantasGroup.Thisemploymentmayinclude
RPT,charter,instructional,regionalairline,orothertypesofflying,at
regionalorcityareasthroughoutAustraliaorelsewhereintheAsiaPacific
region.
Aftersuccessfulcompletionofthisphaseoftraining,cadetswillbeconsidered
foremploymentasaSecondOfficerwiththeQantasGroup,
On4July2007QantasinpartnershipwithSwinburneUniversityannounced
thatafullfeeAssociateDegreeofTechnology(Aviation)willbeofferedfrom
January2008.HowevertheSILGunderstandsthattheremayneedtobesome
changetothesearrangementsasfullfeepayingundergraduateplacesareto
beabolishedbytheGovernmentfrom2009.
QantasalsoannouncedapartnershipwithGriffithUniversityforanewthree
yearcoursewherestudentsreceiveaBachelorofAviationandaGraduate
DiplomaofFlightManagement.Graduatesleavetheprogramholdingthese
qualificationsplustheircommercialpilotlicenceandcreditforallAir
TransportPilotLicence(ATPL)theorysubjects.Uponsuccessfulcompletionof
thethreeyearcourse,cadetsundertakeafurthertwoyearsofcompulsory
flyingemploymentexperiencewithpositionssecuredbytheQantasGroup,
followingwhichcadetsmaybeconsideredforemploymentasSecondOfficers.
ThoseundertakingtheGriffithUniversityBachelorofAviationcourseanda
GraduateDiplomaofFlightManagementshouldbeabletoaccessFEEHELPfor
thecourse,includingthecommercialflighttrainingcomponent.Thestructure
ofthisqualificationtakesbestadvantageofcurrenteducationalassistance.
StudentsareeligibleforCommonwealthsupportandstudentsforunits
completedfortheBachelorofAviationandareabletodeferpaymentfor
theseunitsthroughtheHECSHELPscheme(AustralianGovernmentsupported
universityplacetoberepaidthroughtheHigherEducationLoanProgramme).
UnitscompletedaspartoftheGraduateDiplomaofFlightManagementare
fullfeepayingandeligiblefortheFEEHELPscheme(Afullfee
paying/unsubsidiseduniversityplacetoberepaidthroughtheHigher
EducationLoanProgramme)butexemptfroma20percentloanfeeasapost
graduatequalification.
StudentshavebeenabletoaccessHECSHELPforBachelorofAviationdegrees
atpublicuniversitieshowever,becausetheflighttrainingcomponentofa
student'straininghasnotcontributedtoahighereducationqualification,

54

studentshavenotbeenabletoaccessanyGovernmentassistancefortheir
training.Thesenewtraininginitiativesreflectthat,byincorporating
commercialflighttrainingintonewqualificationssuchasAssociateDegrees,a
proportionoftotalpilottrainingqualifiesunderFEEHELPloans.
TheSILGseestheexpansionoftertiarytrainingintotheGAsectorascritical
togivingtheindustryaccesstotheskillsthatwilltransformitandmakeit
competitiveinthetwentyfirstcentury.Thisisimportantinattracting
professionalpilotsintothesectorbutalsoinsupplementingthetechnical
skillswiththenecessarybusinessandmanagementabilitiesthatareoften
lackinginthesector.Toachievethis,theSILGbelievesitisnecessaryforthe
Governmenttoexplicitlyallocatefundingtoaviationcoursesatselected
universitiestoattractstudentstothesedisciplines.
Recommendation11:Careersinaviationarethoroughlyprofessionalandthe
developmentprocessesavailabletocandidatesforaviationcareersshouldbe
commensuratewiththis.Tertiarylevelcoursesshouldbeeitherestablishedor
expandedinallAustralianstatesandterritoriestoofferplacesinaviation
management,pilottrainingandaviationrelatedengineering.Fundingshouldbe
allocatedtouniversitiesonafundingperplacebasis.

6.6 SkillsAustralia
AsakeyinitiativeinaddressingskillsshortagesintheAustralianeconomy,the
newfederalGovernmentwillestablishanadvisorybody,SkillsAustraliato
adviseontrainingandskillspriorities.
TheDeputyPrimeMinisterisconsultingwithrelevantStateandTerritory
GovernmentMinistersandIndustrySkillsCouncilsseekingtheirurgent
cooperationinprioritisingthefirsttrancheoftrainingplacesinareasthatare
experiencingacuteshortages.
TheGovernmenthasannouncedthatindustrieslikelytoreceivenewtraining
placeswillincludemining,construction,healthandcommunityservices,and
personalandotherserviceindustries.
ItisimportantthattheGAindustrytakesadvantageoftherelevantIndustry
SkillsCouncil(inthiscase,theAviationSectorCommitteeoftheTransportand
LogisticsIndustrySkillsCouncil)toensurethattheindustrysviewsasto
trainingprioritiesaremadecleartotheGovernment.

55


Recommendation12:TheDepartmentofInfrastructure,Transport,Regional
DevelopmentandLocalGovernmentandtheGeneralAviationindustrytoliaise
withtheDepartmentofEducation,EmploymentandWorkplaceRelationsand
theTransportandLogisticsIndustrySkillsCounciltoensureindustryneedsare
recognisedaspartoftheGovernmentswiderconsiderationofskillstraining.

6.7 Engineers
ThesafeoperationofGAaircraftrequiresthesupportofspecialisedAviation
MaintenanceEngineers(AMEs)andLicensedAviationMaintenanceEngineers
(LAMEs).Inadditiontothenormalapprenticeshippathwayoftechnical
workers,apprenticeAMEsneedtopassaseriesofexaminationsbythe
aviationsafetyregulatortoqualifyforspecificareasofwork.
Anumberofstakeholdersraisedconcernsabouttherelativedifficultyof
attractingnewAMEsandLAMEsintotheworkforceasthepresentworkforce
agedandretired.Theproblemsappeartobelocalised,withsomeareasof
Australiaexperiencingparticularsupplyissues.Forexample,thereare
reportedlycriticalshortagesofavionicsengineersinnorthernWestern
AustraliaandTasmaniarequiringoperatorstotravellongdistancesforrepair
ormaintenancework.
PreviousresearchbytheBTRE(BTRE,2005)alsoraisedissuesconcerningLAME
shortages.Stakeholdersreportedrelativelylowwagesandlimitedcareer
prospectsandattimesdifficultworkingconditionsinmoreremotepartsof
thecountry.Manybusinessesreportedalimitedcapacitytopaymoreoroffer
betterconditionstostaff.
In2007,respondingtoresearchfromCASAandtheAustralianBureauof
Statistics,theAustralianGovernmentrecognisedtheshortagesinthese
occupationsbyaddingtheoccupationsofavionicandmechanicalAircraft
MaintenanceEngineertotheMigrationOccupationsinDemandList(MODL).
ThechangestotheMODLmeanthatGeneralSkilledMigration(GSM)visa
applicantswhohaverecognisedskillsinaircraftmaintenancewillbeawarded
additionalpointsforapointstestedGSMvisa,makingiteasierforthemto
cometoAustraliaasskilledmigrants.TheSILGwasnotabletosourcedatato
confirmtheuptakeofGSMvisasforAMEs.
TheGovernmentalsoaddedtheoccupationofAircraftMaintenanceEngineer
totheNationalSkillsNeedsList.Inclusiononthislistgivesapprenticeaircraft
maintenanceengineersaccesstoarangeofAustralianGovernment
apprenticeshipincentivesincluding:
$2,000ApprenticeshipWageTopUp

56

$1,000ApprenticeshipTraining(FEE)Vouchers
$800ToolKit
$13,000WageSubsidyforApprenticesover30yrs
$1,000CommonwealthTradeLearningScholarship
$1,000RuralandRegionalSkillsShortageEmployerIncentives
TheQueenslandStateGovernmenthasalsotakenspecificmeasurestoaddress
theshortageofLAMEsandotheroccupationsintheaviationindustrywiththe
establishmentofAviationAustralia.AviationAustraliawasfoundedin2001in
cooperationwithmajorairlines,aerospacecompaniesanduniversities.With
theobjectiveofmeetingtheindustrysfutureskillsrequirements,Aviation
Australiastrainingprogramshavebeendesignedtocoexistwithuniversity
coursesfromprofessionaldevelopmentandleadership,throughto
engineeringandmanagement.AviationAustraliahasmovedbeyondtraining
personnelforthemajorairlinesorGA,specialisingincoursesforaerospace
companiessuchasBoeingandcivilaviationauthoritiesfromAsiaPacific
nations.
TheBoardofDirectorsreceivesadvicefromanAdvisoryPanelthatconsistsof
prominentpersonnelfrommajorairlinesandaviationorganisationswho
adviseAviationAustraliaonfuturetrendsintheaviationindustryandfuture
trainingdevelopmentsandrequirements.AdditionallyanIndustryCouncilhas
beenestablishedwhichconsistsofrepresentativesfromairlines,aerospace
companies,componentmanufacturers,GeneralAviationandtheRoyal
AustralianAirforce.TheCouncilmeetstrienniallytoofferadvicetotheBoard
ofDirectorsandCEOonprojectedlabourneeds,therequirementsofspecific
sectorsoftheAustralianandAsiaPacificregionaviationindustriesandother
issuesthatcanbeusedbytheorganisationtoensuretheirtrainingprograms
remainrelevanttoindustryrequirements.InformationgivenbytheIndustry
Councilcanbeveryspecific,fromtypesofaircraftenginesthatwillbeusedin
thefuture,tothesizeandlayoutofpassengerairlinersandthetypesof
maintenancetrainingthatwillberequiredfornewengines,aircraftand
electricalsystems/avionicsetc.
AviationAustraliaoperatesunderCASRPart147whichensuresallengineering
andcabincrewcoursesarealsocertifiedandrecognisedbytheEuropean
AviationSafetyAgency(EASA)andtheHongKongCivilAviationDepartment.
WithasmallerbaseinCairns,AviationAustraliahaspositioneditselfasa
viableandprogressivetrainingfacilityintheAsiaPacificregiontomanageand
meettheaviationindustrysgrowinglistofskillsrequirementsandshortages
inspecificpositionssuchasaircraftmaintenanceengineers.
AviationAustraliahasalsoprovedtobecommerciallysuccessful.On
3December2007theQueenslandGovernmentannouncedthatitwillbe
privatisedtoencouragefuturegrowth.

57

TheSILGrecognisesinitiativesliketheestablishmentofAviationAustraliain
providingdedicatedaviationtraining.Recognisingstatesprimaryrolein
providingvocationaleducation,theSILGencouragesotherstatestoconsider
similaroptionsintheirTAFEsectorstotrainaviationmaintenanceengineers.
Trainingshouldalsoincludecabincrewandotheraviationoccupationswhich
areattractivetoforeignairlineswhowantaonestopshoptotrainlarge
numbersofemployeesforavarietyofpositions.Thiswouldmakethese
trainingorganisationsbetterabletoattractlargeforeignairlinesand
organisationsthatrequiredtraininginbothtechnicalandnontechnical
positions.ThismaythenopenupfurtheropportunitiesforAustralianflight
trainingandaviationtechnicalorganisationstoestablishabaseinthehome
countryofthoseairlineswiththepossibilityofsomeformofreciprocal
arrangementsarising.
Recommendation13:Statejurisdictionstoworkwithindustryandthe
Commonwealthtoensureappropriatesupportofaviationmaintenanceengineer
traininginthetechnicaleducationsector.

6.8 RegulatoryIssuesAffectingPilotTraining
CASAisresponsiblefortheregulationofflighttrainingandlicensingandthe
SILGwasconcernedtoexaminewhethertherewereanyregulatorybarriers
affectingflighttraining.
OnesuggestioncommunicatedtotheSILGwasthatCASAshouldreviewsyllabi
forflighttraining.CASAhasrespondedthatextensivereviewsofthesyllabi
havebeenundertakeninrecentyearsasaresultoftheregulatory
developmentprogramme.AcomprehensivereviewoftheDayVisualFlight
Rulessyllabuswasundertakenin2005.TheFlyingTrainingIndustry
DevelopmentGroupconductedareviewofthesyllabustovalidatetheflight
standards.
CASRPart61iscurrentlynearingcompletion,withtheassociatedsyllabikept
uptodatewithanynewdevelopments.Theregulationintroducesbroad
basedcompetencytrainingandrepresentsasignificantstepforwardin
streamliningAustraliaspilottrainingregime.Changestothesyllabiinthe
neartermareunlikelytomakeanysignificantimpactonthenumberofpilots
undertakingprofessionaltraining.Ifthereareanyindustryconcernswiththe
proposedtrainingsysteminCASRPart61(asopposedtothecurrentsystem)
CASAwouldappreciatereceivingspecificdetailonperceivedissueswiththe
pilottrainingsyllabi.
CASA'sroleinflighttrainingislimited.Mostoftheregulatoryservicesare
alreadyperformedbyindustrythroughApprovedTestingOfficers.Thenew
CASRruleswillalsocontinuethisinvolvementbyindustry.

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AreviewofthecostsofcomparablecostsofflighttraininginAustralia,the
UKandtheUSA,preparedfortheHawkeRegulatoryReviewTaskForcein2007
(CASA,2007b)foundthatthedirectcostrecoverableCASAfeestobecomean
ATPLholderareapproximately$1,600.ThisincludesthesecuritycheckandID,
alllicences,andall16writtenexaminations.Thisshouldbeseenincontextof
thetotalcostfromabinitiotoCommercialPilotLicenceAeroplanewith
CommandInstrumentRating(MultiEngine)ofapproximately$80,000to
$100,000intotal.

6.9 RegulatoryIssuesaffectingEngineerTraining
WiththeintroductionofthenewCASRregulatorysuitecoveringthetraining
andlicensingofmaintenancepersonnel,licensedengineertrainingwillbe
undertakenbycertificatedtrainingorganisationsinacompetencybased
regime.Itwilldeliveramoreflexibleandcompetitivemaintenanceworkforce
whilstmaintainingandimprovingmaintenancestandards.Aspectsofthe
licensingschemehavealreadybeenimplemented,priortotheintroductionof
thenewCASRruleparts,throughtheimplementationofCivilAviationOrder
(CAO)100.66,aimedatthelicensingofengineersforlargeraircraft
maintenance.TheCAOisvoluntaryfortheindustryandallowsengineersto
gainapermissionthatwillbeequivalenttopermissionswithintheproposed
newrules.
CASAisadoptingaregulatorystylesimilartothatprovenbytheEuropean
AviationSafetyAgency(EASA).Thisregulatorystylealsoallowsfordifferent
methodsofachievingtheoutcomesforlargeandsmallaircraftandvarious
typesofoperations.TheEASArulesarepractical,safetybasedanddesigned
toworkflexibly.Inordertoencouragenewentrantsintotheindustry,the
GeneralAviationlicensingschemeiscurrentlybeingdesignedtoallownew
starterstoexerciseprivilegesearlierthaniscurrentlyallowed,buildingona
modularapproachtoacquiringtherequiredcompetencies.Thisshould
encourageindustrytoengageapprenticeswhowillbecomemoreproductive
earlierintheircareers.
Recommendation14:CASAandindustrytocontinuetoworktogethertoensure
appropriatebalanceofsafetyandtrainingeffectiveness.Atthesametime,itis
importantthattheindustryrealiseswhatisalreadyavailable.

59

Everybodywantsaregulatorthatiseffective
andefficientanddoesntimposeunnecessary
cost.Gettingagreementonwhatthatregulator
shouldlooklikeismoredifficult.Thereis
cautioussupportforthecurrentreform
directionofCASA.

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7:GeneralAviationRegulatoryEnvironment
7.1

Overview

Aviationisahighlyregulatedindustry.Thecommunityexpectsveryhigh
levelsofsafetyinpassengercarryingaviationactivitiesandotheractivities
whichpotentiallyimpactonpublicsafety.Regulatorsfacethedifficulttaskof
balancingthedirectandindirectcostofregulationwithsafetyandsecurity
outcomes.TheCivilAviationSafetyAuthority(CASA),AirservicesAustralia
andtheDepartmentofInfrastructure,Transport,RegionalDevelopmentand
LocalGovernmentincludingtheOfficeofTransportSecurityandtheAustralian
TransportSafetyBureau(ATSB)formthebasisoftheregulatoryenvironment
inwhichGeneralAviationoperates.

7.2 SafetyRegulation
CASAregulatesthesafetyofcivilairoperationsinAustraliaandtheoperation
ofAustralianaircraftoverseasandbroadlyprovidesthefollowingservicesto
theGAindustry:
Certifyingbothaircraftandmaintenanceoperators;
Licensingpilotsandengineers;
Providingsafetyeducationandtrainingprogrammes.
CASAservicesareanimportantinputtoaviationbusinessesasmanyactivities
cannottakeplacewithouttherequisiteregulatoryapprovals.Notillogically,
industryinputtotheActionAgendawashighlysensitivetobothCASA
performanceandpricingofitsregulatoryservices.
AnalysisoftheinputcostsdirectlyrelatedtoCASAsregulatoryactivities
(CASA,2007b)showthatinthecaseofpilottrainingactivities,ofatotalcost
ofaround$50,000to$100,000toacquireanATPL,$1,600wasattributableto
CASAcosts.Flyingtrainingorganisationsindicatedthattheircostof
compliancewithCASArequirementswassome$5,800annuallyper
organisation;theydidnotidentifywhatpercentageoftotalcoststhis
represented.
TheSILGattemptedtoascertaintheimpactofCASAcostsonGAbusinesses.
Whileitwasnotabletoobtaindatainthisregard,severalbusinessesstated
thatCASAdirectfeecostswerenottheirlargestconcern,rathertheywere
concernedthatCASAsresponsivenessandqualityofservicedidnot
negativelyimpactontheirbusinessthroughdelaysorinconsistentregulatory
decisions.

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CASAhasadvisedithasbeenundergoingsignificantculturalreformwithinthe
organisationaimedatimprovingperformanceandconsistency.Thishas
includedsomestructuralchangewithinCASAincludingtheconsolidationof
regulatoryfunctionsinitsBrisbaneoffice.Industryisgenerallysupportiveof
thesechangesandwouldliketoseethemfullyimplementedassoonas
possible.
WhilesomestakeholderssuggestedgovernancechangesatCASAsuchasthe
introductionofaBoardmayimproveresponsivenesstoindustryandhelpto
removeperceptionsofpoliticisation,theSILGwasconcernedthatexisting
reformswerenotdelayedintheshorttermbysuchmajorgovernance
changes.
ComplaintsarisingfromdissatisfactionwithCASAsservicescaninanycasebe
takentotheCASAIndustryComplaintsCommissionerforinvestigationand
resolution.Whereappropriate,thiswillleadtorecommendationstotheChief
ExecutiveOfficerandcorrectionstoCASAsprocessesandproceduresto
preventrecurrenceofproblemsofthekindthatgaverisetooneormore
complaints.
ThecompletionoftheCASAregulatoryprogrammehasimportantimplications
fortheGeneralAviationindustry,particularlythecompletionofCASRPart135
(Airtransportoperationssmallaeroplanes,Part61(Flightcrewlicensing),
Part145(Maintenanceorganisations)andPart149(Recreationalaviation
administrationorganisations).Theindustryscontinuedinvolvementinthis
processisnecessarytoachieveacceptableoutcomesfortheGeneralAviation
sector.
TheprimarymechanismCASAutilisesinensuringindustryinvolvementin
regulationistheStandardsConsultativeCommittee(SCC).SCCbrings
togetherCASAstaffandrepresentativesfromadiverserangeofaviation
industrygroupstoworkjointlyduringthedevelopmentphaseofregulatory
material.TheSCCexaminesproposedregulatorychangestodetermineifthey
areworthpursuingandassistsCASAintheallocationofprioritiestothose
projects.AviationcommunityexpertsthenworktogetherwithCASAstaffin
subordinategroups(SCCsubcommittees,projectteamsandworkinggroups)
onthedetaileddevelopmentofregulatorymaterial(bothnewregulationsand
amendments).
SCCandsubcommitteemembersservewithoutfinancialcompensation.
However,CASAdoesmakefundingavailablefortheprovisionofvenuesforall
SCCandsubcommitteemeetings.TheSCCcurrentlycomprisesof39
organisationsfromadiverserangeofindustrygroups.Thereisacombined
totalofover200CASAandindustryparticipantsintheSCCanditssixsub
committees.

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TheprincipaltasksoftheSCCareto:
ConsiderregulatoryproposalsthathavebeensubmittedtotheSCCby
CASAwithaviewtodecidingwhetheraproposalisworthyof
considerationand,ifso,recommendalevelofprioritythatshouldbe
placedontheregulatoryworkassociatedwiththeproposal.
ThroughtheaviationcommunitymembersoftheSCC,identifyindividual
expertstoworkwithCASAstaffonthedevelopmentofregulatory
proposalswhichareacceptedaselementsoftheaviationsafety
standardsdevelopmentprogramme.
OrganisationsnotcurrentlyrepresentedontheSCCareabletonominateto
CASAtojoinbyprovidinginformationonhowheywillcontributetotheSCC
consultativeprocess.
Withtheexceptionofonesubmission,stakeholdersdidnotprovideany
adversecommentsontheCASAconsultativearrangements.

7.2 SelfAdministration
AproposalforselfadministrationoftheGAindustryiscurrentlybeing
investigatedbytheindustryandCASA.SelfadministrationmeansCASAwould
continuetosetthesafetyregulationsandoverseetheperformanceofany
administrativebody,butwouldhaveamuchlowerlevelofdirectinvolvement.
Selfadministrationarrangementscurrentlyapplytothesportsaviationsector,
wherepeakbodiesineachaviationsportadministerregulationssetbyCASA.
Thesepeakbodiesissuelicencesandcertificates,carryoutsafetysurveillance
andprovideotherregulatoryservices.
CASAthenauditstheactivitiesofthepeakbodiestoensurecompliancewith
regulatorystandards.ThisapproachmeansCASAonlydevotesarelatively
smalllevelofresourcesdirectlytosportsaviation,allowingmoreattentionto
befocussedonhigherprioritypassengercarryingoperations.
Duringconsultations,theSILGheardmixedviewsonthedesirabilityofself
administration.Whiletherewassupportforachievingamorecosteffective
administrationofregulatoryenvironments,therewasconcernthatsafety
standardsnotbecompromisedandrather,supportfortheexistingregulator
tocontinuetoimproveitsownperformance.Theindustryrecognisedthatit
isimportanttohaveastrongregulatoryapproachtomanagingtheminority
cowboyelement.
Recommendation15:CASAandindustrycontinuetoexploreaworkablemodel
forselfadministrationbutthatthisprocessproceedwithcautionandbelimited
toflyingactivityexcludingpassengertransportoperations.

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7.3 SecurityFramework
Backgroundcheckingandlicensingofpilots
From1July2004allpilotsandtraineepilotswererequiredtoundertake
backgroundcheckingpriortobeingissuedwithnewlicencesbearing
photographs.
Ensuringthatpilotsandtraineepilotsaresubjecttobackgroundchecking
reducesthelikelihoodofpersonswhomightposeathreattoaviationgaining
accesstoaircraftthroughapparentlylegitimatemeans.
InintroducingthisnewrequirementtheGovernmentbalancedtheneedsof
theGAsectorwiththebroaderpublicinterestandthecurrentthreat
environmentandhastakenintoconsiderationthatthecostsofsecurity
measuresarenowwidelyacceptedasanormaloperatingcostofbusiness.
TheDepartmentofInfrastructure,Transport,RegionalDevelopmentandLocal
Governmentestimatesthatthenewlicencescostpilotsortheiremployers
wellbelow$200perperson.TheDepartmenthasbeenworkingwithCASAto
streamlinetheintroductionofthisnewstepinthelicensingprocessto
minimisebureaucracy.
Nonpoweredaircraftarenotincludedinthecategoryofaircraftrequiredto
besecuredfromtheft.Backgroundcheckingwillnotbecarriedoutonpilots
ofnonpoweredaircraftandtheywillnotberequiredtohaveaphotographic
licence.
IndevelopingtheActionAgendasomeconcernswereraisedaboutthe
potentialdelayscausedbybackgroundcheckingofpilots.Insomecasessolo
studentpilottraining,particularlyforoverseasstudents,hadbeendelayed
whilebackgroundcheckingwascompleted.
AviationSecurityIdentificationCard
TheAviationSecurityIdentificationCard(ASIC)wasintroducedthrough
changestotheaviationtransportsecuritylegislativeregimein2005.Since31
March2006,thenewsecuritycardhasbeenarequirementforpeoplewho
needtogainaccesstosecureareasofsecuritycontrolledairports,makingthe
cardsvitallyimportanttomanypilots.
PersonnelworkingatGAsecuritycontrolledairports(airportsthatdonot
haveRPTservices)donotneedanASIC.
From3September2007responsibilityforcoordinatingtheconductof
backgroundcriminalandsecuritychecksonapplicantsforASICandMaritime
SecurityIdentificationCards(MSIC),andfornotifyingtherelevantissuing
authorityoftheoutcomeofthebackgroundchecks,wastransferredto
AusCheckwithintheAustralianGovernmentsAttorneyGeneralsDepartment.

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AusCheckwasestablishedto:
Enhancenationalsecuritybyestablishinggreaterandmoreconspicuous
controlbyGovernmentofsecurityarrangementsatmoreairandsea
ports;
Maintainadatabaseofuptodateinformationonpersonswhoapplyfor
andareultimatelyissuedwithanASICand/orMSIC;
MitigatetheriskofASICandMSICcardsgoingtoineligiblepersonsby
preventingtheuseoffraudulentproofofidentitydocuments;
Reduceduplicationandimprovetheconsistencyandresponsetimeof
backgroundcheckingintheaviationandmaritimeindustries;
Providecapacitytobeusedforotherbackgroundcheckingpurposes.
AusCheckoperatesonacostrecoverybasisandmaintainacomprehensive
databaseofallapplicantsandcardholdersfortheaviationandmaritime
industries.Italsohelpstheaviationandmaritimeindustriestoidentify
individualswhoshouldnotbeeligibleforanASICorMSIC,byapplyinga
consistentinterpretationofthestatutoryrequirementsandprovidinga
recommendationtotherelevantissuingbody.
TheSILGunderstandsthecurrentcostfromAusCheckfortherangeofASICs
is:
NewASICwithDepartmentofImmigrationandCitizenship(DIAC):
$90
NewASICwithoutDIACcheck:

$86

RenewalASICwithDIACcheck:

$80

RenewalASICwithoutDIACcheck:

$76

Thesefeesaresetuntil30June2008,atwhichtimeareviewwillbe
conductedofthefeeschargedforallservicesrelatingtoASICs.
TheSILGunderstandstheneedforasecureaviationenvironment,particularly
inthecircumstancesthathaveprevailedsinceSeptember2001.However,itis
importantthatthemeasurescontinuetobecommensuratewithrisksandfor
themeasurestobeeffectivelycommunicatedtostakeholders.
Recommendation16:ThatGovernmentperiodicallyreviewsecurityrequirements
forairportsandaviationoperatorstoensurethatsecuritymeasuresare
commensuratewiththemostcurrentriskandthreatenvironmentatrespective
locationsandarenotimposingunnecessarycostsonindustry.

65

TheaverageageofGeneralAviationaircraftin
Australiaisover30yearsandrising.Investment
isneededtoensuretheageprofileofthefleet
doesnotcontinuetodeteriorate.

66

8:InvestmentandFleetRenewal
8.1

Overview

TheIssuesPaperpublishedbytheSILGinApril2007drewonarecentATSB
publicationexaminingtherelationshipbetweenageingaircraftandflight
safety.
TheATSBreportfoundthattheaverageageofAustralia'slargecommercial
aircraftfleetisrelativelylowbutthattheaircraftwiththehighestaverage
agearethesingleengineandmultienginepistonfixedwingaircraft(witha
maximumtakeoffweightof5000kgorless).Multienginefixedwingaircraft
typicallyusedincharterandsmalllowcapacityRPThadanaverageageof31
yearsin2005.Thiswasanincreaseof10yearsfromtheaverageagein1995,
indicatingthatveryfewnewaircraftenteredserviceintheinterimandthe
majorityoftheexistingfleetremainedontheregister.
ManyregionalairlinesusemultienginepistonaircraftforlowcapacityRPT
operations,particularlytoserviceremotecommunities.Theseairlinesoften
operatewithsmallprofitmarginsthatlimittheircapacitytoacquirenewor
neweraircraft.Operatorsarethereforeleftwiththeundesirableoptionof
maintainingtheirageingaircraftwithonlylimitedcontinuingairworthiness
supportfromthemanufacturer.
Thesingleenginepistonfixedwingaircraftfleethadanaverageageof30
yearsin2005,withtheaverageageincreasingbysevenyearsoverthe
preceding10years.TheseaircrafttypicallyusedinGeneralAviation,mightnot
receivecontinuingairworthinessfromtheirmanufacturers.Inaddition,the
maintenancerequirementsarenotasstringentforGAaircraftasforRPT
aircraft.
ATSBconcludedthatforpistonenginefixedwingaircraftusedingeneral
aviationandforlowcapacityRPToperations,over80%areolderthan20years.
ATSBconcludedthatpistonengineaircraftusedinGAandforlowcapacity
RPToperationsareincreasinginaverageage.Forsingleandmultiengine
pistonfixedwingaircraft,over80percentofaircraftareolderthan20years.
FurtheranalysisoftheusageoftheGAfleet(BTRE,2007)showsthat,
althoughtheaverageageisover30years,only17.9percentofallflyingis
doneinaircraftover30yearsofage.Thiscomparesto17.7percentofall
flyingin2005.However,overhalf(53.6percentin2006,57.7percentin
2005)ofallflyingisdoneinaircraftover20yearsofage.25.0percentofall
flyingisdoneinaircraftlessthan10yearsofage(22.8percentin2005).The
proportionateamountofflyingdoneinaircraftofvaryingagesis,inaddition
totheaverageageofaircraft,animportantindicatoroftheeffectiveageof
thefleet.

67

8.2 EconomicIssues
Whencontemplatingadecisionregardingthepurchaseofanewaircraftorthe
refurbishmentofanoldaircraft,businessoperatorswillbelargelydrivenby
theeconomicconsiderationsofcostsandbenefits.Withtherelativelyhigh
costofaircraftreplacement,manyoperatorshavedecidedthatitismore
economictomaintainageingaircraftratherthanacquirenewones.Thishad
ledtomanyaircraftinAustralia'sfleet,particularlyinGA,beingflownpast
theiroriginaldesignlife,whichistypically20years.
TheUnitedStateshashistoricallyandcontinuestobetheprimesourceofGA
aircraft.Therefore,manufacturingoutputintheUSandexchangerate
fluctuationsdirectlyaffecttheAustralianGeneralAviationindustry.From1982
to2004therewasasignificantincreaseinthepurchasepricefornewGeneral
AviationaircraftintheUS.Forcomparison,anewCessna172cost
approximatelyUS$100,000in1982andoverUS$150,000in2004(boththese
figuresareexpressedin2004US$),whileoverthisperiodaircraftpricesrose
fasterthanaverageweeklyearnings.Thiscomparisonhighlightsthatnew
aircrafthavebecomesignificantlylessaffordableoverthelast20years.
TheincreaseinpurchasepriceofnewGAaircrafthasalsobeendrivenbythe
affectofproductliabilityissuesintheUS.Asaconsequenceoflitigationin
the1980sandearly1990s,Cessnaceasedproductionofsingleenginepiston
fixedwingaircraftandthePiperAircraftcompanywentintobankruptcy.The
USCongressrespondedbypassingtheGeneralAviationRevitalizationActin
1994;thislimitedliabilityforGAAircraftmanufacturersto18years.Since
then,theproductionofGeneralAviationaircraftintheUShasstartedto
recover(BTRE,2005a).Thissituationisillustratedinfigure8,showingthe
deliveryofthenewaircraftoverthe30yearsfrom1975to2005.In1978,1732
pistonaircraftweredeliveredbutproductionlevelsdroppedquicklyandhave
remainedlowsincetheearly1980s.By1994,only499pistonaircraftwere
delivered,ofwhich126wereexported.Sincethen,productionhasincreased
butnumbersarestillfarbelowtheproductionlevelofthelate1970s(GAMA
2006).

68

F ig ur e5 : N ew G e n er a l Av i at i onfix ed w i n g a ir cr af tm a n uf a ct u r edi nth eU ni t ed States( G AM A ,

2 0 06 )

Althoughtheeffecthasbeenreversedtoanextentbytherecenthardeningof
theAustraliandollar,theeffectofexchangeratefluctuationssince1983
whentheAustraliandollarwasfloatedhavealsoaddedtotheincreasein
priceofnewGAaircraft.ThedepreciationoftheAustraliandollarhasmeant
thatthecostofanewCessna172,inconstant2004Australiandollars,has
increasedbyapproximately150percent,fromapproximately$140,000in1982
toapproximately$230,000in2004.Andexchangeratefluctuationshave
tendedtogeneratelargechangesovershortperiods.Forexample,in2001
whentheAustraliandollarwasvaluedataroundUS$0.48,anewCessna172
wouldhavecostapproximatelyAUD$340,000(BTRE,2005).Theincreasein
priceofnewGAaircrafthasthereforeoutstrippedthecomparablecost
reductionsassociatedwithnewaircraft,andhasbeenacontributingfactorto
theincreaseinaverageageoftheGAaircraftfleet.
Partlyinresponsetothelackofsuitablenewreplacementaircraft,andpartly
asaresultofeconomicfactors,amateurbuiltaircrafthavebecomemore
popularinrecentyears.However,astheseaircraftneedtobeassembledfrom
akit(requiringbuilderstoacquirespecificskillsandinvestconsiderabletime),
andbecausetheyarerestrictedtopersonaluse,itseemsunlikelythat
amateurbuiltaircraftwillevermatchthenumberofcertifiedpistonengine
aircraftontheregister.
Ifnostepsaretakentochangethesituation,theaverageageandthenumber
ofaircraftagedover40years,ofbothpistonsingleengineandmultiengine
fixedwingcategoriesarelikelytocontinuetheircurrentupwardtrend.This
willmeanthat,by2015,theaverageageofthesingleenginefleetwillbe37
yearsandtheaverageageofthemultienginefleetwillbe40years.

69

Thesectorsoftheaviationindustrythatusepistonenginefixedwingaircraft
oftenoperateonthinprofitmarginswithlimitedcapacitytopurchaseaircraft
aged5yearsorless.Whereoldaircraftarereplaced,theyareoftenreplaced
withyounger,butnotnew,aircraft.
Forthemultienginepistonaircraftcategory,over97percentofaircraftare
olderthanthetypically20yeareconomicdesignlife(ATSB,2007).Manyof
theseaircraftareusedaslowcapacityRPTaircraft.Aswithmanysingle
enginepistonaircraft,aircraftinthiscategorymightnotreceivecontinuing
airworthinesssupportfromtheirmanufacturers,thereforeraisingconcerns
aboutthesustainabilityoftheseaircraftastheyage.
Australiascircumstancesarenotunique.Mostsingleengineandmultiengine
pistonaircraftweremanufacturedintheUS,sothechallengeofageing
aircraftisfacedbymanyothercountries.IntheUS,forexample,theNational
TransportationSafetyBoardreportedthatin2001theaverageageoffourseat
singleengineaircraftwas32years(NTSB,2006).Multienginepistonaircraft
withbetweenfiveandsevenseatsaveraged31years,andthosewitheightor
moreseatswereanaverageof30yearsold.

8.3 TaxationDepreciationIssues
TherehavebeensuggestionsfromtheGAindustry,andfromtheAustralian
aviationindustrymorebroadly,thatcapitalinvestmentshouldbepromoted
throughacceleratedtaxationdepreciationarrangementsforaircraft.
TheAustralianGovernmentdecidedtoremoveaccelerateddepreciationas
partofthereformofbusinesstaxationarrangementin1999.Thiswas
designedtoremovetaxinduceddistortionstoinvestmentdecisionsandto
providesimplificationbyremovingcomplexandinconsistenttreatmentacross
ahostofdisparaterulesfordifferentclassesofcapitalinvestment.The
domesticaviationindustryalreadyenjoysconcessionaltaxationarrangements
throughthe2002introductionofaneffectivelifecapforaircraftoftenyears
intheincometaxlaw.Thisdecisionfollowedthereviewofthesafeharbour
effectivelifeschedule,inwhichtheCommissionerofTaxationissueda
determinationtoincreasetheeffectivelifeofaircraftfromeightyearsto20
years,toapplyfrom1July2002.Thiseffectivelymeansthataircraftoperators
areabletodepreciatetheiraircraftataroundtwicetherateoftheirtrue
effectivelife.Thestatutorycapoftenyearsrepresentsasubstantialtax
concessiontotheaviationindustry,andisaconcessionthathasonlybeen
extendedtoafewotherindustrieswhichuseplantandequipmentwithlong
effectivelives.
Companiesintheaviationindustryhavealsoenjoyedthebenefitsofa
reductionofthecompanytaxratefrom30percentfrom1July2001,an

70

arrangementfundedlargelybytheremovalofaccelerateddepreciationasa
resultoftheGovernmentsearlierbusinesstaxationreforms.
TheGovernmentannouncedinthe200607Budgetanincreaseinthe
diminishingvalueratefordeterminingdepreciationdeductionsfrom150per
centto200percentforalleligibleassetsacquiredonorafter10May2006.
ThiswillincreaseincentivesforAustralianbusinessestoinvestinnewplant
andequipmentandmakeiteasierforbusinesstokeeppacewithnew
technologyandremaincompetitive.
AnanalysisoftheCASAaircraftregister(CASA,2007a)showsthatthechanges
indepreciationarrangementhavenotimpactedonthepropensityofthe
industrytoinvestinnewaircraft.Rather,thenumberofnewaircraft(thatis
lessthanfiveyearsold)comingontotheregisterhasincreasedby50percent
inthesevenyearsfollowingthechangeindepreciationarrangements
comparedtothesevenyearsprevious(432newaircraft2000to2006vs288
aircraft1993to1999).
Figure6belowshowsnewaircraftcomingontotheAustralianregistersince
1975.Notableisthehighlevelofinvestmentinnewaircraftinthelate1970s
influencedbya40percentinvestmentallowanceavailabletoaircraftbuyers
atthetime.
Somestakeholdershavesuggestedsimilarincentivesmayhelptheindustry
addresstheageingaircraftproblem.Anotheralternativetoaninvestment
allowancecouldbeinvestmentassistancefortheindustrytohelpcommercial
operatorsoffsetthesignificantcostsoftheinvestmentneededtorenewtheir
aircraftfleet.

71

F ig ur e6 : N ew ( 1 5 y ear so l d ) a ir cr af tcoming ont oCASAr e gi s t er 19 75 to2 0 06 (CASA, 2007a)

250

200

No. of Aircraft

150

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Years

TheSILGnotesthatthereisbothasafetyandoperationalriskinnotactingto
renewtheGAfleetandthussuppressandhopefullyreversethefleetageing
profile.Theindustryneedssomeassistanceinthisregardanditistheviewof
theSILGthattheGovernmentshouldcontributeinpartnershipwiththe
industrytowardsthisrenewal.
Recommendation17:Toaddresstheproblemoftheageingsmallaircraftfleet
theGovernmentconsidertheestablishmentofafacilitytoassistsuitable
operatorstobuynewaircraft.Criteriaforsuchaschemeshouldbedeveloped
inconsultationwiththeindustryandmayinclude:
Casebycaseassessmentofcommercialbusinesspositions;
Atleast50%capitalcontributionbyoperatorsacquiringnewaircraft.

8.4 TheCapetownConvention
ItwassuggestedinonesubmissiontotheSILGthatthereisoneareawhere
Governmentcanassisttopotentiallylessenaircraftfundingcostswithout
impactontheBudget.ItisarguedthatratificationoftheCapeTown
Conventionwhichprovidedforaninternationalregisterofaircraftsecurity

72

interestswilllessenriskforpurchasersandlessors,andthereforehelpreduce
financingcosts.Whileitsbenefitsare,intheory,availabletopurchasersof
aircraftofanysize,thevendors,ownersandlessorsofhighcapacityaircraft
areprobablymostable,becauseofthesheervalueoftheirtransactions,to
protecttheirinterests.
Thearrangementsintheaircraftequipmentprotocolextendtoaircraft
carryingasfewas8passengers,includingcrew,or2750kgoffreight.
RatificationoftheTreaty,withrecognitionofitsregisterofinterests,for
domesticlawpurposeswouldappeartobeaveryworthwhilestepfromthe
pointofviewofthesmallaircraftsector.Thisisparticularlythecasefor
AustraliawherethesplitofFederalandStatepowershasmeantthatthe
FederalGovernmenthashadnobasisforactingandStateregistersofdeeds
arenotadequatetodealwiththeissue.TheuseoftheICAObasedregister,
whichcanbeengagedbyecommercetechniques,combinedwiththeparties
bearingtheirowncosts,shouldminimisecoststoGovernment.
InFebruary2008,theDepartmentofInfrastructure,Transport,Regional
DevelopmentandlocalGovernmentreleasedaConsultationPaperonthe
CapetownConventionforpubliccomment.

8.5 DevelopmentsinAircraftManufacturingTechnologies
Inrecentyears,therehavebeensignificantdevelopmentsinbothaircraft
manufacturingtechnologiesandnavigationtechnologies.Itisimportantthat
anindustryasmatureandsignificantasAustralia'sGAsectorisabletotake
advantageofthesetechnologieswhichinmanycaseswillimproveits
operationalsafetyandefficiency.AccordingtotheUSGeneralAviation
ManufacturersAssociation(GAMA,2006):
Wehaverecentlyseenthedevelopmentoffullyintegratedglasspanel
avionics,enhancedandsyntheticvisionsystems,environmentally
compatiblefiresuppressionsystems,newairbornedeicesystems,and
advancedlightweightandefficientengines.Weseethepaceofnew
productsandinnovativedesignsthatenhancesafety,reliabilityand
efficiencyacceleratingforGeneralAviationintheyearsahead.
Aswellasincrementalimprovementsintraditionalaircraftenginedesign,
therehavebeenmoresignificantdevelopmentsinrecentyearsindiesel
poweredaircraftengines.Severalfactorshavedriventhesedevelopments.
Firstly,thereisanumberofnewmanufacturersofGAaircraftdevelopingnew
designs.Secondly,inEuropeinparticular,avgashasbecomeveryexpensive.
Thirdly,insomeremotelocations,avgasishardertoobtainthandiesel.
Finally,automotivedieseltechnologieshaveimprovedgreatlyinrecentyears,
offeringhigherpowertoweightratiosmoresuitableforaircraftapplications.

73

Forexample,manufacturerThielertGmbHproducesfourstroke,liquidcooled,
geared,turbodieselaircraftenginesbasedonMercedesautomotivedesigns
whichrunonbothDieselandJetAviationfuel.Theirfirstenginewasfirst
certifiedin2002.ItiscertifiedforretrofittoCessna172sandPiperCherokees
whichwereoriginallyequippedwiththe160hpLycomingO320Avgas(petrol)
engineandoutperformstheoriginalengineinseveralrespects.TheAustrian
aircraftfirmDiamondAircraftIndustriesoffersitssingleengineDiamond
DA40TDIStarwithaThielertCenturion1.7engineandalsotheTwinStarwith
twosuchengines.TheStarofferslowfuelconsumptionwithaveryfuel
efficientfigureof15.1l/h.SeveralhundredThielertpoweredairplanesarenow
flying,andthecompanycertifieda4.0litre,V8,310HPversionin2005.
InterestindieselaircraftintheUSAhasbeenmorelimitedwithfuelprices
lowertherethaninEurope.InAustralia,anumberofdieselpoweredaircraft
haveenteredthemarketincludingfourDiamondDA42TwinStars(ofseven
ordered)enteringservicewithFTAatParafieldAirport.
Anumberofothermanufacturersarecurrentlydevelopingexperimentaldiesel
engines,manyusingaircraftspecificdesignsratherthanadaptedautomotive
engines.
Acrosstheworld,thenumberofrefineriesmanufacturingAvgashasdeclined
from32in2001,toaround24in2006(Shell).Whilstthelossofproductionhas
beenoffsetbyincreasedproductionatsomeoftherefineries,itisanticipated
thatthenumberofrefineriesmanufacturingAvgaswillcontinuetofall.This
correspondswiththediminishingdemandforAvgasthathasoccurredsince
thelate1970s.Currently,onlyfiverefineriesproduceAvgasintheAsia
Pacificregion,includingtworefineriesinAustralia.
Theuseofcompositematerialsincludingfibreglassandcarbonfibrehasalso
increasedinrecentyears.Thesematerialshavebeendevelopedinmilitary
applicationforsometimeandarebeingusedincreasinglyinamateurbuilt
aircraftandincommercialaircraftincludingthenextgenerationBoeing787.
Compositematerialshavethepotentialtoimprovestrengthtoweightratios
andtobemorecosteffectiveinsomecircumstances.
Glasspanelavionics,orglasscockpits,areaircraftcockpitsthatfeature
electronicinstrumentdisplays.Whereatraditionalcockpitreliesonnumerous
mechanicalgaugestodisplayinformation,aglasscockpitutilisescomputer
controlleddisplaysthatcanbeadjustedtodisplayflightinformationas
needed.Thissimplifiesthecockpitandallowspilotstofocusonlyonthemost
pertinentinformation.Theycanalsoeliminatetheneedtoemployaflight
engineer.Thismeansthatsmalljetaircraftarenowabletobeoperatedsafely
byasinglepilot,whileefficientlyaccommodatingasmallnumberof
passengersinapressurisedcabin.
CertainGAaircraft,suchasthe4seatCirrusDesignSR20andSR22,are
availableonlywithglasscockpits.Glasscockpitsarealsoavailableasa

74

retrofitforolder,privatejetsandfortraditionalpitonengineaircraftsuchas
theCessna172.
TheAmericanmarkethasalsoseenanincreaseinfractionalownershipof
businessaircraftallowingbusinessestohavetheuseofanaircraftwithout
bearingfullcapitalandrunningcosts.

8.6 NewNavigationTechnologies
Technologicaldevelopmentsarealsoimpactingonaviationoperations.Of
notearetheICAOrecognitionofAutomaticDependenceSurveillance
Broadcast(ADSB)asapreferredsurveillancetechnology,developmentof
ApproachwithVerticalGuidanceforlandingproceduresandtechnology
standardswhichwillfacilitateimproveddatasharingforAustralia's
AeronauticalInformationService.
Itisnaturalthatanyairspacemanagementchangestakeaccountofcurrent
andprospectivetechnologicaldevelopments.Thekeytechnologyelementsof
thispackage,ADSBandGlobalNavigationSatelliteSystems(GNSS)forsole
usenavigation,havebeenthesubjectofconsultationwiththeaviation
industryforsometimethroughtheAustralianStrategicAirTraffic
ManagementGroupandtheCASAdiscussionpapers.
ADSBisanairtrafficsurveillancetechnologybeingimplementedinAustralia
thatcouldcontributesubstantiallytoimprovedairtrafficcontrolsurveillance
coverageandseparationatalowercostthanradar.AirlinessupportADSBas
oneofthemainsurveillancetoolsofthefuture:BoeingandAirbusalready
routinelyfitADSBtotheiraircraft.Manyoftheneweraircraftengagedin
RPToperations(bothinternationalanddomestic)arefittedwithADSBas
standardequipment.Around25percentoftheAustralianjetairlinerfleetis
alreadyequipped.
AirservicesAustralia,withtheagreementoftheairlines,hasstartedtheroll
outofADSBservicesinourupperairspacetoprovidebettertrackingandless
restrictiveairtrafficcontrolseparationstandardsforaircraftinrangeofthe
systemthathavecompatibleavionicsinstalled.
Withthepromiseofhigheraccuracy,lowercostandgreatersurveillance
capabilityandefficiency,thisnewairtrafficmanagementsystemmayallow
aircrafttoflymoreefficienttracks.Bybeingabletofitmoretrafficinthe
sameamountofairspace,aircraftoperatorswillalsobeabletoreducecosts
andminimisedelayswhilstfreeingupairspaceandincreasingcapacity.
ThereisstronginternationalinterestinADSB,withtheAmericanFAA
proposingthatallaircraftflyinginUScontrolledairspacebeequippedwith
ADSBavionicsby2020.However,theUnitedStatesCongressisyettopass

75

therequiredlegislationtoeffectsucharequirementandtheproposalhas
generatedsignificantdebate.
Australiaisalsoconsideringmovingbeyondtheupperairspaceprogramfor
ADSB.Indoingso,theGovernmenthasundertakentomakesurethatnew
technologiesaresafeandaddvaluebyimprovingefficiency,surveillanceand
separationcapabilitytoAustraliasairspace.
TheGovernmenthasindicatedthatanydecisionaboutwhenandhowtomove
toawideruseofADSBwillbeinformedbyacarefulanalysisofriskanda
clearunderstandingofthebenefitsandcostsforallsectorsoftheindustry.
Implementationwillalsoneedsupportfromtheaviationindustry,asthenew
technologieswillnotonlyrequirenewapproachestoairtrafficservicesand
flyingoperations,butwillalsomeannewequipmentinaircraft.
TheSILGnoteddifferingindustryperspectivesontheeffectivenessofADSB
inlowerairspaceparticularlyfromtherecreationalsector.Recreational
AviationAustraliabelievesthattheproposedintroductionofADSB
technologywouldmostbenefitAirservicesAustraliaandRPToperators,while
thesafetycaseforimposinggreatersurveillanceonsmalleraircrafthasyetto
beproven.
Stakeholdershavehadanopportunitytocommentonajointdiscussionpaper
releasedbythefourAustralianGovernmentaviationagencies:Airservices
Australia,theAustralianDefenceForce,CASAandthethenDepartmentof
TransportandRegionalServicesinAugust2007andurgestheGovernmentto
takethoseviewsintoaccountwhencomingtodecisionsonthefutureuseof
thattechnology.
TheGAindustrymustcontinuetobeinvolvedinanyprocessesconsideringthe
introductionofnewnavigationtechnologies,includingADSB.
Recommendation18:TheSILGnotesthepotentialfornewtechnologies
suchascompositeairframes,glasspanelavionicsandnewenginetypesto
improvetheperformanceandraisethesafetystandardofGeneralAviation
aircraft.
TheSILGismindfulthatwhenassessingthepotentialbenefitsofnew
navigationtechnologiesitisimperativetotakeaccountoftheGeneral
Aviationindustrysparticularneedsaswellasthoseofmajorairlines.

76

References
1. (ATSB,2007)AviationTransportandAnalysisReportB20050205,HowOld
isTooOld?TheImpactofageingaircraftonaviationsafety,Canberra
AustralianTransportSafetyBureau.

2. (BTRE,2005)GeneralAviation:Anindustryoverview.Report111,Canberra,
BureauofTransportandRegionalEconomics.

3. (BTRE,2007)GeneralAviationSurvey2006,Canberra,BureauofTransport
andRegionalEconomics.

4. (CASA,2007a)Aircraftontheregister,19282006,Canberra,CivilAviation
SafetyAuthority.<www.casa.gov.au/casadata/register/graph.htm>

5. (CASA,2007b)Reportonthecomparisonofthecostofflyingtrainingin
Australia,USA,NewZealandandtheUK,Canberra,CivilAviationSafety
Authority<www.casa.gov.au/newrules/taskforce/FCL_report.pdf>

6. (CAA,2006)StrategicReviewofGeneralAviationintheUK,London,Civil
AviationAuthority.

7. (TheEconomist,2007)Asia'sskillsshortage:Capturingtalent,HongKong,
TheEconomistprintedition.
<www.economist.com/business/displaystory.cfm?story_id=9645045>

8. (FAA,2007)DataandStatistics,WashingtonDC,FederalAviation
Administration<www.faa.gov.au>

9. (GAMA,2006)GeneralAviationStatisticalHandbook2005,WashingtonDC,
GeneralAviationManufacturersAssociation.

10. (IBISWorld2007)NonScheduledAirandSpaceTransportinAustralia
IndustryReport,Melbourne,IBISWorldPtyLtd.

11. (NTSB,2006)AnnualReviewofAircraftAccidentData:USGeneralAviation
CalendarYear2001(No.ATSB/ARG06/01PB2006106642)WashingtonDC,
NationalTransportationSafetyBoard.

12. (Shell)ShellAustralia,PrivateCommunications)

77

Abbreviations
ACCC:

AustralianCompetitionandConsumerCommission

ADSB:

AutomaticDependentSurveillanceBroadcast

ALOP:

AerodromeLocalOwnershipPlan

AME:

AircraftMaintenanceEngineer

APV:

ApproachwithVerticalGuidance

ASIC:

AviationSecurityIdentificationCard

ATPL:

AirTransportPilotLicence

ATSB:

AustralianTransportSafetyBureau

BTRE:

BureauofTransportandRegionalEconomics

CAA:

CivilAviationAuthority

CAO:

CivilAviationOrder

CASA:

CivilAviationSafetyAuthority

CASR:

CivilAviationSafetyRegulation

EASA:

EuropeanAviationSafetyAgency

FAA:

FederalAviationAdministration

FAC:

FederalAirportsCorporation

FEEHECS: HigherEducationContributionScheme
FEEHELP: HigherEducationLoanProgramme
FTA:

FlightTrainingAdelaide

FTQ:

FlightTrainingQueensland

GA:

GeneralAviation

GSM:

GeneralSkilledMigration

GNSS:

GlobalNavigationSatelliteSystems

ICAO:

InternationalCivilAviationOrganization

LAME:

LicensedAircraftMaintenanceEngineer

MODL:

MigrationonDemandList

MPL:

Multicrewpilotlicence

MSIC:

MaritimeSecurityIdentificationCard

Rex:

RegionalExpress

RFDS:

RoyalFlyingDoctorServiceofAustralia

RPT:

RegularPublicTransport

RTO:

RegisteredTrainingOrganisation

SCC:

StandardsConsultativeCommittee

SILG:

StrategicIndustryLeadersGroup

TAFE:

TechnicalandFurtherEducation

VET:

VocationalEducationandTraining

78

AppendixA:SubmissionprocessfortheGeneralAviationIndustry
ActionAgenda
Theaimofthepublicsubmissionprocesswastogivethegeneralaviation
industryanopportunitytocommentonandmakerecommendationsonthe
issuesdiscussedintheIssuesPaper.
Detailsonthesubmissionprocesswerepostedontheactionagendas
webpageontheDepartmentofTransportandRegionalServiceswebsite,while
theActionAgendaSecretariatandSILGwrotedirectlytoindustry
organisationsandgroups,airportoperatorsandpartiesthathadexpressed
interestintheprocess.
Submissionswerereceivedfromthefollowingparties:
AdelaideAirport
AerialAgricultureAssociationofAustralia
AircraftOwnersandPilotsAssociationofAustralia
ArcherfieldAirport
AustralasianAviationGroupCairns
AustralianAirportsAssociation
AustralianBusinessAircraftAssociation
AustralianGeneralAviationAdministration
AustralianGeneralAviationAllianceLimited
AviationMaintenanceRepairandOverhaulBusinessAssociation
BankstownAirportLimited
PaulCloughSolicitorandPilot
EssendonAirport
GoldCoastAirport
TheGuildofAirPilotsandAirNavigatorsAustraliaRegion
Incorporated
ScottGurnerDirector,AircraftElectricalServicesPtyLtd
MelbourneAirport
MrJamesKimpton
MrDafyddLlewellyn
MoorabbinAirport
TheRoyalFederationofAeroClubsofAustralia
SouthAustralianDepartmentofTransport,EnergyandInfrastructure
SydneyAirport
MrHaroldWalton
WestAustralianDepartmentforPlanningandInfrastructure
DennisWisbeyDirector,AeroServicePtyLtd,ParafieldAirport

79