7 September 2012

This week saw the first meeting of our new permanent Governance Board as well as the meetings of NZHA and NZAAA.  I’ll leave John Sinclair to cover the issues raised and concentrate more on the Board’s deliberations.
 
Before doing so there’s one important strategic safety issue which “Red Boots” will cover and that’s the adoption by CAA of sector risk profiling. It is a new technique built around industry and regulators working together to identify, assess and evaluate risk. This is the process that has been missing from the risk assessment techniques now widely applied in this industry. It relies on clearly knowing what is and isn’t within the scope of assessment.  This enables us to work on the same page; and with full, open and honest disclosure it is in my view the next major driver of safety gains for us all.
 
What it does rely on, however, is very good communications; the sharing of information; and a good appreciation and understanding of the risk management process.  A number of you have attended the risk management programmes we have been running for the last 12 months but I would urge you all to consider participation in the courses being run in late October click here.  While Ag aviation is the first cab off the block, flight training and adventure aviation will follow; my own personal view is that the EMS sector should also be high up on the priorities’ list. 
 
How do you get “high up on the priority list”? That’s a combination of a few critical variables but largely relates to your accident incident rate per 100,000 hours flown.
 
AIRCARE of course is integral to this whole process of better understanding risk, whether it’s safety or environmental.  We are very confident that operators who move into the voluntary SMS environment will be recognized by the Regulator as “doing the right thing” and we are already well aware that CAA auditors are questioning whether you are AIRCARE accredited.  They are doing this, in part, to provide the Regulator with an additional level of intelligence about the way you think about safety, especially the safety culture in your business.
 
So, onto matters discussed at the Board meeting.  At this time of year there’s a major focus on what has to be achieved in the “back half” of the year. Cash flow is always a tricky issue and this year is no exception.  We had fantastic support from Industry with the conference but there’re some pretty big bills to pay as well - events cost as well as delivering benefits.  We’d really appreciate it if you’re a conference debtor that this is paid up very soon.  It’s now just on a month since the conference concluded and leaving outstanding debt of the magnitude it is presently threatens the ability of the Association to respond appropriately to your needs.
 
A number of you have been in touch with us regarding the proposed new CAA charges.  At present they are not law – this requires a Charges Regulation to be promulgated.  To our knowledge this hasn’t yet been done and we will be carefully monitoring to find out when the Regulations are public.  There is then a period of 28 days before it becomes law.  In this period it is possible to mount a challenge to the Regulation Review Committee to have the charges disallowed.  Disallowance is granted in some circumstances, particularly where sectors of a community have been disadvantaged through not being consulted. AIA was fully consulted and our views taken on board. The fact that Officials did not agree or support our views does not provide grounds for the basis of an appeal.  Nevertheless, there is a strong view that the medical “filing” charge is a charge against Industry for internal inefficiencies and the audit charge of $284/hr is OTT. The Board has asked that we look at avenues for redress and we hope to have these fully explored in the next week or two.
 
Pending skill shortages in critical service roles, combined with a massive export opportunity for training in all manner of aviation skills, along with a need to improve the internal and international competitiveness of our training industry, was the next red flag issue discussed.  Flight Training and Engineering committees are meeting with Officials on 20 September to discuss making the regulatory framework more competitive and we will extend that discussion into matters of funding, improving efficiency and increasing the attractiveness in that sector. We hope to work with the Flight Training’s executive over the next three months and develop some solutions to the interminable problems that have been going on for months.
 
One of those solutions is a careers expo showcasing the Industry.  Presently, it’s intended to hold this in conjunction with the International Airshow in Auckland on Anniversary weekend next year.  Yes, “Red boots” is aware that there is considerable skepticism amongst Industry as to whether the show will take place.  We think it’s a mighty idea and leveraging it to hold a careers expo (click here to express an interest) makes a whole heap of sense but if it doesn’t then we’ll still do something in Auckland to showcase careers in the Industry so watch this space!!!
 
The NASO tender for Air Ambulance Service has also been on watch.  We’ve not had much to do with relational procurement and are very interested in how this works and what the incentive is for an open or closed tender process.  The Board has yet to be briefed on the official information made available to AIA; however, we’re clear that we are simply “watching” as this is a commercial/customer matter.
 
ATTTO’s merger proposals were deferred for a small committee of the Board to discuss through with the Chairman and CEO of ATTTO.  If you have any particular views we would be interested to hear from you.
 
Conference 2013 in Dunedin was discussed.  It’s only 10 months away now and “Red boots” will be discussing with the divisional chairs reducing the length of conference while retaining the broad themes of growth and safety so that all members can participate.  Strong preference has been expressed for a mid June/July conference as mid August this year was too late for some - That’s been taken on board.
 
The next Board meeting is 14 November where it’s intended that there will be a very strong focus on the growth agenda - what are the big items which are going to ensure we meet our $16Bn target.
 
You’ve heard us talk a lot about the growth headlines but now it’s about making it happen.  All of us recognise that trading internationally is exceptionally challenging but there are some “green shoots” appearing – clearly training remains a major opportunity and it was really pleasing to see our first non student loan funded training organization come through and apply for AIRCARE this week.  We will be making AIRCARE the marketing badge of authority for international students in some of the initiatives.  A very active “China” market group met last week and there will be some activity in China in November. A trade mission to India is scheduled for mid October (to be led by Minister Joyce).  A few places are still available on the mission but we are trying to keeping it pretty exclusive and focused on meaningful business (training, airline services and airport fit-outs).
 
I’ll be away in Auckland for the early part of next week discussing the Airshow and well as strong strategic integration with AOPA.  We will be putting a membership proposition to this group as well as others, which enables access to the benefits of “One Industry” while concurrently retaining their own brand.
 

 

Until we speak again take care and stay risk aware Red boots

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What's coming up?

Qatar and UAE

Over the last 12 months, we've been working increasingly closely with Ministry of Transport providing input to help develop the negotiating position for Bilateral Air Services Agreements. In our view, which MoT supports, these agreements should be used to open doors for the whole aviation sector and not be limited to air services links. The Aviation Safety and Security clause in the NZ/China Air Services Agreement is the way of the future. In helping develop the NZ negotiating position, and to ensure the inclusion of some useful words for the commercial sector, we give MoT a briefing on existing and potential NZ aviation engagement with the market. We have been asked to comment on ASAs which are to be negotiated with Qatar (which has Qatar Airways) and the United Arab Emirates (Etihad) but we need to do this by next Friday! Please let us know by Thursday (john.nicholson@aviationnz.co.nz) if you have any comments you'd like incorporated in a broader NZ response.

 

AIA members deals