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19 October 2012

HOT OFF PRESS -CAA merge Airlines and GA Group under General Manager Mark Hughes. This change is about having one system of safety across all operational groups and is a "heads up" to the type of change SMS will introduce.

Red Boots is out of the office today meeting with CAA on their strategic pathways – a critical consideration for all members so another edition from New Boots though Red Boots has contributed a great deal. 
Let's start with a quick review of events since I was last in charge of the keyboard and then move on to what is most certainly the topic of the moment - the new CAA charges.
The three areas I think need to be worked on;  continue the successful launch of 'One Industry', ensuring we have a sound financial base to deliver the support the industry needs and most important of all, a renewed and fresh emphasis that the AIA is a 'Membership Organisation', hopefully for all aviation.
One Industry; some progress – see comments below relating to Aviation Training but at the moment  CAA charges and a few other matters (also discussed below) have rather dominated events.. 
The financial base. Irene and Sarah (our Finance Manager) are commendably enthusiastic on the need to know how the income and costs of our various activities match off.  Some of the project work is itemised in separate budgets so they know about that but a number of our other activities require more detailed examination, e.g.  does the revenue from each division match the costs they incur?  Do all the training courses cover their costs?  Are there external parties that benefit from what we do without paying for it?  That process starts on Thursday and will be the basis for, among other things, next year's budget and subscriptions.  There is a view that in some areas small operators pay rather more than big ones but do the big operators use our services as much or do they use their own resources?  There is no shortage of questions. The AIA is a membership organisation. 
My thanks to the members of the AAA, NZHA, Flight Training and AEANZ Divisions that have all been kind enough to have me at their recent meetings and get the flavour of the issues they face.  l plan to catch-up with Chairs of the other Divisions in the next month.  Many thanks also to those of you that contacted me individually.
Yesterday Red boots and I met with the Chair and Director of the CAA for well over an hour.  Red boots subsequently produced a written summary of the meeting for distribution to the Governance Board and Advisory Council Members; I believe it well worth copying to you:-
"Progress on the two issues of the medical charges and CAA hourly rate was better than expected/anticipated. 
There is considerable pressure on CAA to restructure inefficiencies out of the organisation.
The medical/license unit head count drives the need to recover $2.25m; their systems and processes are manual and investigation is presently underway to automate, and deliver lower cost product.  They have invited us to participate constructively in finding a solution. 
While they make the point the new Regulations provide them with a three year time frame within which to restructure, they also accept that in reality they don’t have that long – maybe 12-18 months.
The increase in hourly rate charge to $208 appears acceptable to industry but the increases beyond that point to $248 and $284 are objectionable.
We pointed to a number of inequalities with the way aviation was being treated relative to maritime.
  • Cross subsidisation was being largely eliminated by the increased changes but cross subsidisation of government services by industry of around $1m remained, CAA said this is an issue to take up with MOT and Treasury as it was not of their doing.
  • The excise duty on Mogas used by aviation was also a source of funding particularly as Maritime was permitted to tap into this source (subsequent comment from MOT later in the day suggest there is not much in this for aviation).
  • CAA are relinquishing space in their new building and a consolidation was occurring with Av Security, this represents 500 SQ and they were looking for sub tenants. “Did we know of any?” was the question asked.
If they do not need to increase the rates beyond $208 because of efficiency gains and expansion of other sources of income they will look at some relief but at the moment the pricing model is saying they need to increase prices to build a sustainable CAA.       
They were not aware of the NZALPA challenge to the charges (click here). They are aware that if ALPA is successful they will have to start again the consultative process in this area. In their view ALPA will not be successful because they were consulted in 2010 with the rest of the aviation community."    
It’s also important that you keep getting the message across to wider government so please please fill in the “better public service survey” (click here).  Forty of you have already done this and this means 40 voices expressing their views about aviation and how the public service is impacting on your business, both good and bad       
It is obvious that most of the funding problems relate to decisions and events that happened way before Graeme and Nigel were in their current roles, many years ago in one or two cases. They are now facing up to the issues.  Because of that I felt some sympathy for them. I also feel the same for a member of our Governance Board who had to front up to his Minister this week for mistakes that also happened years ago and have since been corrected; but that is the nature of big jobs.  Who they in turn must have sympathy for are those facing the pressures - the many cost pressures impacting on you in the market.  If those pressures cause some to exit the industry then their pricing model and structure will also fail and that is a lose/lose.  I think a win/win in this case is a bit much to hope for but it will not work if either party becomes the clear loser.   There are many other organisations and individuals that have contacted the CAA on these cost increases, particularly the medical charge and that topic won't go away anytime soon.  The current Chair and Director of the CAA have the confidence of the great majority of members for their recent actions and communication style and we told them that, but also added that retaining that confidence would depend on how these cost issues were resolved.
In a number of ways the CAA is a mirror of our businesses by facing the same cost and resource challenges.  Smart business find solutions and we need to work with, not against them, by sharing some of those solutions for their and our benefit.  Maybe that way a win/win will be possible. 
Flight Training – setting the direction, directing the pace of change (read more
Aviation Training New Zealand  - seizing the $2Bn opportunity (read more)     
AEANZ – plotting the new direction (
Drugs and Alcohol – proposed definition of impairment constraining operators “decision making (read more)
ACC – charges going down for all aviation groups and application to extend work place discounts based on AIRCARE assurance programme (read more)
 Federated Farmers agree to support call for EFTS funding reform for pilot training (read more
Trade Mission India going very well according to reports with a number of new avenues opened up. Heads of agreement signed (click here)

Lead Auditor Training - CAA 5-9 November, cost $1500, places limited (click here)   

Until we speak again take care and stay risk aware

Red boots
red boots

What's coming up?

SMS, Risk Management and Operational Risk Management Training for a full week – week after next (click here)



Current statistics.
  • 375 pilots have been trained in Noise Abatement
  • 74 companies are either accredited or in the process of becoming accredited.
There is a misunderstanding amongst some that by achieving an AIRCARE™ Noise Abatement Certificate they have satisfied DOC’s requirement. Not so.

DOC requires operators to be AIRCARE™ Accredited and that involves the following:
There are three main components to AIRCARE™.

1)      Pilot competency. Pilots are required to be certificated in some of the disciplines. Apart from CAA requirements these are GROWSAFE® (if spraying is undertaken) otherwise just Noise Abatement.

2)      The organisation is required to be able to demonstrate that its pilots operate in accordance with the respective codes of practice every time they go to work. To achieve this the organisation is required to run a management system and for AIRCARE™ this is an SMS (to bring value by aligning it with CAA’s own SMS requirements)

3)      The organisation is independently assured according to a prescribed audit system

The PROCESS describing how to become accredited is detailed in the first document at the top of the page at The document is called “How to become AIRCARE™ Accredited” (as it would!) There is a whole raft of useful information on this page – particularly for the small operator who hasn’t run a formal quality and safety system in the past. For those operators who already have these systems, AIRCARE™ doesn’t require you to run additional or duplicate systems. Far from it. All you need do is satisfy yourself that you meet the requirements and there’s an easy way to do that. You see the AIRCARE™ Audit Checklist is available on the same page and it even gives you some ideas on what you can do to comply with each checklist item. 

DOC as the customer has the right to determine how it will protect its business which naturally is subject to a wide range of pressures and interest groups. In developing AIRCARE or for that matter any alternative scheme should they emerge DoC has required that its requirements are addressed first and foremost.  It is for this reason why they are standing firm on  AIRCARE™ Accreditation or equivalent as a condition of access, concession or contract from 1st January 2013. You can expect a communication from DOC reaffirming this and for all future arrangments with DoC to be let on this basis. Time is tight to ensure complaince and our recommendation is to get on with it as many of you have.

If after reading the material you have any questions call John Sinclair 03 5775679.
Noise Abatement Training there are three courses planned :
  • Tuesday 27th Nov, Auckland, Venue: Green Room, 07 Threshold, Ardmore Airport 
  • Wednesday 28th Nov, Rangiora, Venue: Black Hanger, Rangiora Aerodrome
  • Thursday 29th Nov, Queenstown, Venue: Airport Company Board Room, Queenstown Airport 
  • click here to register

If your Base Manager and/or other senior people have completed a face to face AIA run course, they can present the course to remaining or new staff themselves. The material can be downloaded at If you take this option it is really important that the person presenting the course reads ALL the information on that site starting with “Instructions for Presenter of Noise Course.” 

Please note that you can get the AIRCARE™ audit out of the way BEFORE doing the Noise Abatement training but you won’t get actually accredited until all your pilots hold this certificate. Given time constraints and auditor’s capacity, AIA recommends this approach.

DON’T FORGET we have SMS.Risk Management and Operational Risk Management Training for a full week – week after next (click here)


AIRCARE™ accreditations Click here


Proposal for airport tax
Marlborough Chamber of Commerce general manager Brian Dawson is advocating the tax on passengers to pay for an expansion of the airport terminal at Woodbourne. read more



LanzaTech in Malaysian deal
New Zealand-born biotechnology star LanzaTech is teaming up with Malaysian state-owned petrol firm Petronas to produce sustainable chemicals from carbon dioxide and natural gas.
read more

9500 miles in 18½ hours - Singapore Airlines Flight 21 and the Airbus 340-500
Flight 21 routinely travels from Newark to Singapore nonstop, where passengers and crew fly just short of 9500 miles in 18½ hours read more

FAA to redefine aviation in near future, says Chief Executive
The Federal Aviation Administration will make a variety of critical decisions regarding aviation-related issues over the next two to three years read more

Helicopter pilot flies firefighter to safety in water bucket (read more)

FAA needs data policy changes to better address accidents, finds GAO (read more)

NTSB Announces Final Rules on Appeals Procedures and Requests Public Comment (read more)

MRO Europe: Flight Safety Foundation details scope of MAC (read more)
Half of world's commercial aircraft fleet managed from Ireland; 1,000 direct Irish jobs in aviation leasing (read more)

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