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CASA acts to protect fare-paying passengers

The Civil Aviation Safety Authority's Chief Executive, Mick Toller, said today that CASA was determined to stamp-out a completely unacceptable practice that allowed an operator whose licence had been suspended or cancelled to effectively continue to operate without regulatory scrutiny and approval.

He said CASA was acting against sham and unscrupulous aircraft operators who had the potential to put at risk the lives of fare paying passengers.

From 1 October, CASA will severely restrict the practice commonly referred to as "borrowing an AOC", or Air Operator's Certificate.

Borrowing an AOC involves a practice whereby an AOC holder agrees to undertake commercial operations which another operator may no longer be authorised to conduct because the operator's AOC has been varied, suspended or cancelled.

Mr Toller said he was concerned that this practice could potentially compromise the safety of fare paying passengers. In future, CASA approval would be required before an operation could take place under someone else's licence.

"Our change will pose no threat to the legitimate operator but it should stamp out the fringe practitioners including sham operators," he said.

He said the amendment specifically addressed a serious safety concern raised in the findings of the Commission of Inquiry into Seaview Air in 1996.

The Commission said that permitting the use of a "borrowed" AOC defeated the intent of the Civil Aviation Act, the International Civil Aviation Organisation's standards, and recommended practices. It also furnished operators with an obvious means of circumventing any sanctions should their own AOC be suspended or withdrawn.

Under an amendment of the Civil Aviation Orders, which takes effect on 1 October, an operator will be prohibited from entering into an arrangement with another person whose AOC has been varied, suspended or cancelled so as to effectively circumvent the effect of the variation, suspension or cancellation. A similar prohibition will apply to arrangements between the holder of an AOC and a prospective operator whose application for an AOC has not yet been granted by CASA. Legitimate arrangements will be able to proceed with CASA's approval.

30 September 1998
Ref: ME9827PR