Minister for Transport and Regional Services
A Measured Approach to Aviation Safety
Reform 1
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A Policy Statement by The Hon John Anderson MP
Deputy Prime Minister and Minister for Transport
and Regional Services
A Measured Approach to Aviation Safety Reform
Designed and published by the Department of
Transport and Regional Services Commonwealth of
Australia November 1999 2
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page 2 A Measured Approach to Aviation
Safety Reform C o n t e n t s
Introduction 3 The Setting 4 Civil Aviation Safety
Authority 5 Airservices Australia 8 Airspace
Management 10 Australian Transport Safety Bureau
11 Conclusion 12 Attachments Civil Aviation Safety
Authority Charter Letter Airservices Australia
Charter Letter 3
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A Measured Approach to Aviation Safety
Reform page 3 I n t ro d u c t i o n Australia
is one of the world's leading aviation countries
Our aviation industry has an international
reputation for innovation and
safety based on 90 years of achievements ranging from QEA's pre war flying boat services through to the cutting edge air traffic control systems of today The Howard Anderson Government is continuing Australia's record of aviation innovation by reforming the agencies that are responsible for air safety Our aim is to simplify the air safety laws decrease the number of accidents and incidents and reduce the cost of air traffic services We recognise it is necessary to carry out these reforms in a measured way because Australians are rightly conser vative about air safety As a community we value our strong air safety record and are concerned if people suggest our safety is at risk
This statement consolidates a number of decisions that the Government has taken about aviation safety issues over the past two years It highlights our step by step approach to improving Australia's air safety framework and complements two other recent aviation announcements which were the Government's new international air services policy which I announced with the Treasurer in June and
the McGrath report on the efficiency and role
of the Bureau of Air Safety Investigation BASI 4
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page 4 A Measured Approach to Aviation
Safety Reform The Setting The
Australian aviation industry is sophisticated and
diverse Australia's major carriers Qantas and
Ansett are substantial airlines
by any standard The regional airline sector provides a vital service to country communities and is growing steadily with operators gradually trading up from small piston engined aircraft to larger turboprops and even purpose built regional jets
Airlines operate only a small proportion of the aircraft used in Australia The vast majority of the aircraft fleet is used in general aviation such as flying training charters or recreational flying Australia is an ideal location for general aviation businesses such as pilot training due to our good climate and uncluttered airspace Flight training schools such as the British Aerospace facilities at Tamworth and Adelaide train students for the Asia Pacific's major airlines such as Qantas Cathay Pacific and Thai Airways
In the aerospace sector Australian firms manufacture components for Boeing Airbus and Lockheed Martin as well as light aircraft that are purpose built for our flying conditions For example Eagle Aircraft based in Perth manufactures an innovative single engined light aircraft with a forward wing The aircraft the Eagle 150 is certificated to international standards and is now sold in the United States Another company Gippsland Aeronautics produces a highly adaptable 9 seat passenger and utility aircraft the GA8 Airvan Gippsland Aeronautics hopes to employ an additional 250 or more people over the next three years as it increases production The Federal Government is keen to see further growth in the aerospace sector and one of the objectives of our reform program is to modernise the aircraft certification system to encourage manufacturers and component suppliers
The Government regulates all of these disparate
activities from passenger airlines to recreational
aviation through three agencies the Civil Aviation
Safety Authority CASA is responsible for air
safety regulation including flight crew licensing
setting standards and auditing the safety
compliance of the industry 5
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A Measured Approach to Aviation Safety
Reform page 5 Airservices Australia
Airservices provides air traffic services and
rescue and fire fighting services on a largely
commercial basis and the Department of Transport
and Regional Services DoTRS provides policy advice
to the Government It includes the Australian
Transport Safety Bureau ATSB which has succeeded
the Bureau of Air Safety Investigation as the body
responsible for investigating aviation accidents
and incidents
The Government considers these current administrative arrangements are broadly appropriate We are however prudently reforming the existing agencies and clarifying their roles and responsibilities
C ivil Av i ation Safety Authority The Civil Aviation Safety Authority CASA is the agency that is directly responsible for air safety regulation and the day to day
safety oversight of the industry I have issued CASA with a revised Charter Letter attachment A which formally directs the authority to carry out the str ategic vision set out in this statement The Charter Letter stresses that CASA must continue to modernise the aviation safety regulatory framework in a consultative way The Government's vision is for Australia to have a world class aviation safety regulatory environment including
an even lower rate of accidents and incidents a modernised certification system to encourage Australian aircraft manufacturers and
a simple clear and internationally harmonised
regulatory system 6
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page 6 A Measured Approach to Aviation
Safety Reform The Government's vision
requires a regulator whose presence in the chain
of responsibility that links the passenger with
the aircraft operator is respected at all levels
of the aviation industry and has the confidence of
the public whose actions in pursuit of sub
standard and non compliant operators demonstrate a
nationally consistent approach procedural fairness
and anticipation of emerging safety deficiency
trends
t h at emphasises a consultat ive and tra n s p a rent ap p ro a ch by its s t a ff a n d t h at active ly promotes education aimed at accident preve n t i o n CASA will be implementing the Government's vision by adopting a mix of strategies including
a focus on regulatory reform to ensure the safety r egulation process is timely responsive and consistently applied the responsible sharing of information and analysis with the aviation community on the basis that this will assist to gain early and wide industry acceptance of necessary reforms and the development of new approaches to accident prevention through appropriate targeted systemic interventions including education in the aviation sector In developing its views on industry education the CASA Board will closely examine the work of safety regulators outside the aviation industry in particular road safety authorities
CASA is undertaking a restructure which will
result in the centralisation of critical
enforcement decisions such as suspensions
cancellations and prosecutions CASA's legislative
drafting functions have been transferred to the
Office of Legislative Drafting in the Attorney
General's Department to assist CASA to focus on
developing cogent and well considered plans for
regulation 7
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A Measured Approach to Aviation Safety
Reform page 7 The restructure will ensure
that licence holders and aviation companies
receive consistent treatment and a fair and
objective hearing no matter where they are in
Australia The restructure is a crucial step toward
renewing confidence in Australia's air safety
regulator It will also be an important step
towards remedying the cultural problems identified
in the Skehill and Pearce Reports It is not of
course a complete solution CASA has adopted a new
Code of Conduct and Ethics and is currently
training its managers in accountability and ethics
I have directed CASA to reinforce these measures
by developing management systems that support
ethical behaviour by all CASA personnel As part of
the re s t ru c t u re CASA has established a new
Reg u l at o ry Services Div i s i o n wh i ch is
taking over re s p o n s i b i l i t y for issuing
air operat o rs c e rt i f i c ates and other ap p
rova l s The new d ivision will eliminate the long
and unsat i s fa c t o ry delays invo l ve d in
obtaining reg u l at o ry ap p rovals from the
authority The div i s i o n has been established
on an interim basis from 1 November 1999 although
CASA will continue wo rking on defining its stru c
t u re and re s p o n s i b i l i t i e s
The regulatory review program is continuing
CASA is already well down the path of developing
and implementing new regulations for maintenance
and maintenance organisations personnel licensing
airworthiness directives and flight manuals The
Government has given CASA a 30 June 2000 deadline
to finalise standards for air traffic control and
the provision of rescue and fire fighting services
I have asked the CASA Board to develop by the end
of the year a public Regulatory Reform Plan with
defined goals and target deadlines The Plan will
pr ovide the industry and the community with
advance notice of the important regulatory reforms
they can expect to see over the coming three years
The Government has already announced the
establishment of a new consultative body the
Aviation Safety Forum The Aviation Safety Forum
will serve as an important bridge between CASA and
the industry and will help rekindle the spirit of
the Program 8
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page 8 A Measured Approach to Aviation
Safety Reform Advisory Panel PAP I have
asked the former chairman of the CASA Board Safety
Committee Mr Bruce Byron AM to chair the forum
CASA is currently finalising its terms of
reference and membership
The CASA Board is preparing a new 1999 2000 to 2001 2002 Corporate Plan which will reflect the strategic directions outlined in this statement and the Charter Letter
A i rs e r vices Au s t ra l i a A i rs e rvices Au s t ralia manages the airspace ab ove 11 per cent of t h e e a rt h s surfa c e and is the best provider of air tra ffic services in the
wo rl d a c c o rding to the Intern ational Air Tra n s p o rt A s s o c i at i o n A i rs e rvices has almost finished introducing its new air tra ffic contro l s y s t e m The A dvanced Au s t ralian Air Tra ffic System TA A AT S wh i ch unites computers ra d a rs and commu n i c ations into a singl e s y s t e m It is the most advanced air tra ffic control system any wh e re and is safer and marke d ly more efficient than the old one M o re than a dozen countries have sent rep re s e n t at ives to Au s t ralia to inspect the new system
The Government does not intend to privatise
Airservices Australia We do however intend to
introduce some measured competition in some of its
areas of operations and to corporatise the
organisation as a Government Business Enterprise
Its remaining regulatory responsibilities with the
exception of airspace management will be
transferred to other portfolio bodies The issue of
airspace management post corporatisation of
Airservices is an issue the Government will be
considering during the corporatisation process The
Minister for Finance and Administration and I will
jointly determine the corporatisation date which
is likely to be in the second half of 2000 The
Gove rnment will establish a reg u l at o ry fra m
ewo rk that will e n able CASA to ove rsee A i rs
e rvices Au s t ralia in the same way that it reg
u l ates any other major industry orga n i s at i
o n s u ch as Qantas A n s e t t or a maintenance
company 9
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A Measured Approach to Aviation Safety
Reform page 9 The Gove rnment has given
CASA a 30 June 2000 deadline to finalise standards
for air tra ffic control services and the
provision of rescue and fire fighting serv i c e s
The lack of a reg u l at o ry fra m ewo rk for the
provision of air tra ffic control services and
rescue and fire fighting services is a gap in the
reg u l at o ry stru c t u re that has ex i s t e
d since the Civil Av i ation Authority was divided
into A i rs e rvices and CASA in 1995 The new reg
u l at o ry fra m ewo rk will make it possible for
new o p e rat o rs to provide control tower and
rescue and fire fighting s e rvices in competition
with A i rs e rv i c e s The Gove rnment will
phase in competition in these serv i c e s to make
ab s o l u t e ly cert a i n the new operat o rs
carry out these functions to the same high s t a n
d a rds as A i rs e rvices Au s t ra l i a A i rs
e rvices Au s t ralia will continu e to provide
tower services at Syd n ey A i rp o rt for ye a rs
to come The introduction of competition is aimed
at producing a re d u c t i o n in the cost of p
roviding tower services at regional and ge n e ra
l av i ation airp o rt s The Gove rnment curre n t
ly subsidises these c o n t rol towe rs because it
would be too ex p e n s ive for the av i at i o n
i n d u s t ry to use the airp o rts otherwise All
service providers including Airservices will be
subject to the same level of safety regulation by
CASA They will all be obliged to meet the same
high environmental standards including standards
on aircraft noise The Government is cur rently
working on the details of the necessary
environmental regulations and the regime that will
apply
The Gove rnment will not be fa c i l i t ating competition in term i n a l n av i gation services at this time Te rminal nav i gation services are c o n c e rned with sequencing and sep a rating airc raft within ab o u t 50 60 kilometres of an airp o rt during the ascent or descent phases o f fl i g h t A i rs e rvices will also remain the monopoly provider of e n route serv i c e s
The Gove rnment will prep a re env i ronmental
and economic s a feg u a rds to ensure that the
community and industry are pro t e c t e d in the
new operating env i ro n m e n t 10
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page 10 A Measured Approach to Aviation
Safety Reform I have issued Airservices
Australia with a new Charter Letter attachment B
that reflects the strategic directions set out in
this statement
A i rspace Manage m e n t The skies above Australia are divided into a mosaic of airspace zones with different classes of control procedures that reflect their
level of traffic The airspace around major airports class C airspace is closely monitored Controllers issue instructions to pilots about their course speed and altitude to make sure their aircraft are separated safely The low level airspace over most of the continent is uncontrolled Airservices provides pilots flying on instruments with information about some of the other traffic but the pilots decide how to keep their aircraft apart The Government will continue harmonising Australia's airspace arrangements with international best practice Our airspace system is an important part of our national transport infrastructure because it has an enormous impact on the cost and safety of air transport Airservices Australia imposed 565 million in airways charges in 1998 99 and the charges are a substantial part of the cost of running an airline Following the termination of the Class G airspace trial last December BASI recommended a review of the roles and responsibilities of CASA Airservices and DoTRS in relation to the declaration design and management of airspace
I directed my former departmental secretary Dr Allan Hawke to conduct the review His report is now public and can be accessed at www dotrs gov au The Government has considered the report and decided that responsibility for the design declaration and management of airspace will remain with Airservices and will not be transferred to CASA The issue of airspace management post corporatisation of Airservices is an issue the Government will be considering during the corporatisation process
However CASA will retain the responsibility of
setting the minimum standards for the safe
operation of each class of 11
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A Measured Approach to Aviation Safety
Reform page 11 Australian airspace and the
procedures to be used by air traffic controllers
and pilots in each class of airspace It will also
be able to require the upgrading of a particular
zone of airspace on safety grounds Where CASA
proposes such a change it will identify a clear
safety justification for the change and accompany
the proposal with supporting evidence in the form
of a safety case
To ensure that there is no conflict of interest in the safety regulator being both the initiator of reform and the judge of its safety consequences the Government has decided that DoTRS will ensure an independent analyst is engaged to consider and publish comments on the safety case prepared by CASA The independent analyst will assess whether the higher standard is effective in safety terms Airservices is developing for the Government's consideration a program of airspace reform that is internationally harmonised and consistent with International Civil Aviation Organisation ICAO standards The program is to address timeframes priorities and mechanisms for implementation It will be developed in close consultation with industry and other key stakeholders including the Department CASA ATSB and Defence The program will be ready for consideration by the Government by the end of 1999
Au s t ralian Tra n s p o rt Safety Bure a u In February 1999 I commissioned Mr Paul McGrath to conduct an independent review of the Bureau of Air Safety Investigation
BASI following similar reviews of CASA and Airservices Australia
The McGrath Report is accessible at www atsb
gov au The overwhelming conclusion of the
review was that BASI was a highly professional and
well regarded safety body and that it had an
appropriate degree of independence The initial
work of the review team however prompted a
reassessment of the structure of the safety
investigation functions of DoTRS 12
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page 12 A Measured Approach to Aviation
Safety Reform As a consequence the
Department has now established a new multi modal
safety body the Australian Transport Safety Bureau
ATSB to bring together BASI the non regulatory
sections of the Federal Office of Road Safety the
Marine Incident Investigation Unit and a new rail
safety unit Multi modal safety bodies already
exist in a number of countries including the
Transportation Safety Board of Canada the National
Transportation Safety Board in the United States
and the Transport Accident Investigation
Commission in New Zealand The creation of the ATSB
will encourage increased cooperation and the
exchange of information and expertise between
investigators There will also be efficiencies from
the sharing of resources the cross fertilisation
of ideas and investigation techniques and from
opportunities to share research and data
collection and analysis methodologies
There will be no diminution of the importance of air safety investigation within the new ATSB which will be Australia's prime investigatory agency for aviation accidents and incidents Air safety investigation and analysis will be strengthened by its location within ATSB and the other units in the Bureau will benefit from the expertise of the air safety staff
C o n cl u s i o n In this statement I have set out the Government's step by step approach toward reforming CASA Airservices Australia and the
regulations that underpin air safety in Australia There will always be opposition to aviation safety reform There will always be someone who claims that air safety is being compromised The Howard Anderson Government is unapologetic about our measured approach to aviation safety Aviation safety reform is important It will continue at a pace that corresponds to the industry's ability to cope and to the community's need for certainty that the reforms will improve air safety
Canberra November 1999 13