5 April

 
It’s great to see another Airshow at Omaka such a great success over the Easter weekend. Along with “Wings over Wairarapa” and “Wings over Wanaka” New Zealand is truly becoming a world class and preferred destination for all of those who are passionate about the vintage/veteran Warbirds. We have it on very good authority that restoration of one of the next great war birds has been commissioned on the basis that the global preferred choice was New Zealand or Alaska for the work. New Zealand’s distance from the “Warbirds” hanger won out.
 
For us it’s about finding those niche global competencies where we can do things faster better and with greater precision and quality than the rest of the world.  For “Red boots” and the team it has been interesting to have two meetings in the last week with our Australian counterparts and to see they are thinking exactly the same thing.  It’s about establishing that niche where we can, and to out compete the rest of the globe.
 
But it’s also about being selective – pointless chasing profitless volume.  Its one of the reasons why we talk about participating and imbedding ourselves in the high end of the value chain. If you think about it this is what we naturally do in the New Zealand market 
 
AVIATION IS IN OUR DNA …….AND WE HAVE THE DOUBLE HELIX SAFETY AND GROWTH…….
 
 
LEADERSHIP PROGRAMME – it’s about growing our own.  It was interesting last night listening to AVM Peter Stockwell speak about the challenges of today’s air force.  He acknowledged many of his predecessors with a very simple line – the issues are the same, it’s just that we use a different language to communicate them.  Today’s language is about accountability, risk and safety management, and the world of the “velvet glove encapsulating the iron fist”.  It’s about understanding these concepts that create the leaders of today and tomorrow. And just when you think you’ve “got it” it is critical to understand why bad things happen to even your very best people.
 
Our leadership programme, run once a year, is filling quickly.  If you think you would benefit or have a staff member who would click here for the programme and speak to “Red boots” urgently.           
 
 
 
CONFERENCE WEEK – the programme is filling very quickly click here. But we would like:

• Incident Review Meeting presentations to come forward admin1@aia.org.nz
• Nominations for AIA awards admin1@aia.org.nz
• Nominations for the Richard Pearse Trophy click here
• Any other interesting topic or product release to speak on admin1@aia.org.nz

 
Trade show – click here. Troy Forsyth is handling this on behalf of AIA.  We were very relieved this week to get the final trade layout for the Dunedin Town Hall.  This building has been extensively renovated over the last 12 months and we will be one of the first conferences in the new facilities. Access to the Trades hall is fantastic - for those of you who were at Wellington, we’ve used that design to ensure substantial delegate exposure. Over 60% of the booths are full.  A 10% discount remains for those who book and pay in full by …………
 
Sponsorship –click here - outstanding opportunities remain.  Sponsorship of the event is critical.  It enable us to essentially run a top class event at 2009 rates as well as ensuring that AIA trades positively throughout the latter part of the financial year.  This means that we can do the work that members really value and engage proactively in issues of critical importance to our sector.
 
PROGRAMME – click here  - NZAAA and NZHA’s programme is now complete as are the “growth” agenda sessions and Friday morning of the AIA conference.  We’re interested in speakers to complete the AEANZ, Flight Training and Air Transport/TFO sessions. At the moment we don’t have an EMS programme but this could be added - the beauty of the venue is that there are plenty of break out rooms.
 
SOCIAL and NETWORKING programme – the conference is designed such that it’s possible to go skiing immediately before and or after the conference. This is an added bonus for those Australian snow bunnies who are joining us.  Remember there are flights directly into and out of ZQN.              
 
 
WHAT HAPPENS WHEN THE DOUBLE HELIX UNRAVELLS – the TAIC inquiry into Flight Training has taught us one key lesson: if you want to get to the heart of “risk” management practice in a sector, don’t go looking to formal inquiries to do this. As previously said, it was of some comfort to know that expert inquirers could not find any systemic issues in our world of flight training but then again they made the point repeatedly there was inadequate data, information and analysis to say anything particularly meaningful about the sector.
 
Graph one – highlights the reduction in international CP licenses issued.  We estimate this has cost the country from 2009-2012 around $56m in lost economic activity    
 
 
Putting this against the licenses issued for NZ citizens the trend is particularly concerning
 

 
 
Our modeling is showing that by 2014 we will essentially have run out of sufficiently experienced instructors to train the meager numbers of New Zealand citizens who wish to be trained as pilots.  All of this is occurring at a time when demand within Australasia for pilots is projected to be growing at 5.5% per annum.
 
We know from anecdotal evidence that the number of B cat fixed wing instructors with good experience levels, is rapidly declining.  This in turn is increasing the period to train a CPL as one of our unique requirements is for terrain avoidance training at ab initio level and this demands a minimum of a B cat instructor to provide the training.  So a BIG catch 22.
 
The forward forecast for Helicopter pilot training is even more dismal although our comments must be moderated as some helicopter pilot training is self funded.  But the problem again is an absolute dearth of instructors to do the ab initio training required. So, instead of producing around 70 helicopter pilots – the numbers thought necessary to sustain the New Zealand industry we will in fact produce around 30 CPL’s 
 
Training is a globally connected industry – so part of the answer is simply to import instructors but that then means we have to be an attractive place for students to train.  In my view, unless government policy settings are changed and the caps on funding and training numbers are removed, pilot training will be at a competitive disadvantage to any other career in New Zealand.  If we look internationally our product is simply uncompetitive – we start with a 15% GST disadvantage and it just progresses from there.
 
The upshot of this is that while on the one hand our government is firmly committed to propelling our sector on a growth pathway, its domestic policy settings are actually seriously undermining our ability to provide one of the fundamental elements of our supply chain – pilots.  This in turn impacts on our travel, tourism and agricultural sectors to name but a few.  
 
 
The TEC/MOE – we’ve received a response to our most recent request for Official Information click here and here.  And on a more positive note Nigel Gould – chairman of the CAA has been appointed to the TEC Board click here.  Industry will brief the CAA on 16 May on pilot training matters. One of the real problems we are having is no one government agency wants to take ownership of the problem preferring to say “Industry created it so Industry you fix it” 
 
SAFETY messages
 
 Ag Risk Profiling – we understand this review is progressing on schedule.  The debrief on the review will be at conference.  Attending conference and having your collective say is critical to ensuring this process runs well.
 
Flight Training Risk Profiling review -  after the lack of go forward on the TAIC review and the uncertainties around CAR141 and CAR 61 caused by a changed rule making methodology (ie define the problem up front) its our feeling that a comprehensive risk profile of flight training should be next off the block.  We’d like to hear your views on this issue.
 
OMNIBUS rule change – yes its coming.  Developed largely in the CAA house to correct minor administrative matters anticipate seeing this draft NPRM in around 3-6 weeks time. Industry will have an opportunity to comment and put up suggestions for minor administrative change.
 
LIB4 –we’re working with the funding group on this matter.  If you have an interest you can register this with us but we feel obligated to work first and foremost with those who funded the industry legal opinion.
 
AMC – this committee met this week so you can anticipate seeing some minor changes to the accreditation documents.  This follows on from the six month review of the performance of the AIRCARE™ system with Navigatus.  It’s also pleasing to report we have around 90 operators in the programme. Well be looking at further “value adds” in the weeks ahead. Remember, one of the more valuable marketing tools is our safety recognition awards click here.  We know that operators who have these use them extensively to promote their products to the international visitors who are very “risk aware”. Our best operators are now all being accredited out to three years – the amendments to the documents referred to above now make it transparent as to how operators achieve the three year accreditation status.
 
The Committee would also like to say a big thank you to our members who sent our recent letter on AIRCARE™ out to the wider aviation community.  It’s particularly important that this community understand the vision and values associated with AIRCARE™ because it’s about saying we care about our environment, our people, our business well being, our passengers and people who use our services, and we care about being good neighbour’s by minimising noise discharge.  We care about BRAND NEW ZEALAND and the impact an accident or incident could have on the perceptions the global community has about this country. This is our brand owned by members of the AIA and as members you invest time effort and energy delivering these brand value – AIRCARE™ provides the most tangible means we have of recognition.         
 
GROWTH – CREATING THE VALUE ADD OPPORTUNTIES
 
Productivity commission calls for submission on the Service sector click here. It’s important to make submissions on these inquiries and particularly this one as we have major concerns about the impact of inefficient rule making on the productivity of the sector.
 
Consultation on - Proposals to enhance the delivery of Standards by New Zealand’s national standards body click here
 
The Government Electronic Tenders Service (GETS) has been set up by the Government to promote open and fair competition in the New Zealand Government procurement market.  New Zealand Public Service Departments, New Zealand Defence Force and New Zealand Police must use GETS for the publication of all tender opportunities above minimum thresholds.  Public sector agencies and local authorities are encouraged to use GETS. 
 
This week, in the Domestic Section of the newsletter, we're promoting business opportunities in the Ministry of Transport and RNZAF which appeared in GETS over the last week.  Your business can also register to get direct advice of any relevant tenders (you can specify areas of interest).  For more info:  http://www.gets.govt.nz/default.aspx?show=HomePage
 
Other intelligence/tendering systems in Australasia worth looking at include:
ProjectLink - provided by NZTE.  A specialist team in Australia tracks business opportunities in Australia before they go to tender.  This gives companies early warning of upcoming opportunities and an ability to market their capabilities as the procurement process develops, well before tenders specs are developed.  The service is subscriber driven - in other words, they only identify and track opportunities that reflect the capabilities and aspirations of subscribers - a real differentiator of this service.  Airport developments are tracked.  New Zealand companies have secured over NZ$250m of work through leads from ProjectLink. More info: www.projectlink.co.nz
 
Tenderlink.  Established in 1994, this currently identifies 2079 tender opportunities in the Public sector in Australia and New Zealand, and another 240 tenders in the private sector.  Perth Airport for example, which is well into a major upgrade programme, is directly linked from the Tenderlink home page.  The site also provides training in marketing to tendering agencies and in preparing bids.  More info: http://www2.tenderlink.com/
 
Tenders.Net captures most, if not all tenders advertised in Australia, New Zealand and the Pacific Islands and also contains an online tendering facility.  The site has for example, being carrying advice of airport master plan, airport redesigns (Nadi) and terminal expansion plans.  More info: http://www.tenders.com.au/
 
Along with most of the aviation companies going to Indonesia in May, we participated in a workshop in Auckland this week.  It was aimed at improving the ability of companies to give 'power pitches'.  Basically, what is your value proposition, how can you quantify it, what makes you different from the competition, and how can you deliver the success your potential customers are looking for.
 
A basic lesson from Mark Robotham of Sparkbox Venture Group who ran the workshop - 'kiwis need to grow an ego'.  Obviously how we use that ego differs from market to market and customer to customer but we have some outstanding successes in aviation, which very few know about.  There is a bit of success by association, and failure by association.  We can choose!
 

       

Aviation is in our DNA Red boots

Nominations called for – AIA awards.  Each year the AIA makes two awards: to an individual in recognition of their long service to the industry; and to a company for their outstanding contribution.  If you know anyone or company who might meet these requirements please feel free to nominate by emailing admin1@aia.org.nz
 
CAA Directors Awards – note these are also open. Go to CAA webpage.

Trade Stands read more

Delegates read more

Sponsorship read more
 

Expressions of Interest – Executive Leadership programme, RNZAF Base Woodbourne 17-19 May  click here  
 

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Oshkosh Flyer read more

Beef and Lamb NZ read more

ANZ Agrifocus read more

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AIA members deals