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CASA Annual Report 2004-05 - Part 2: Operational Report

Part 2: Operational Report

Corporate Performance — 2004–05

GOAL: IMPROVED AVIATION SAFETY PERFORMANCE

Effectiveness in 2004-05
Performance targets  
Reducing trend in number of accidents per hours flown by industry sector

While the total accident rate increased from 7.9 in 2003 to 8.2 in 2004, the best summary of data suggests General Aviation accidents per 100 000 hours flown is estimated to have steadily declined at a rate of 4.8 per cent per year over the past decade (see Figure 8).

Figure 8- General Aviation accidents per 100 000 hours flown, 1995 to 2004

Figure 8- General Aviation accidents per 100 000 hours flown, 1995 to 2004

Source: Department of Transport and Regional Services (Bureau of Transport and Regional Economics)

Notes: Data for 2004 is preliminary

Excludes accidents in Sports Aviation and Regular Public Transport

Reducing trend in number of fatal accidents per hours flown by industry sector

The number of fatal accidents per 100 000 hours flown in the General Aviation sector is estimated to have declined annually by 6.2 per cent over the last decade (see Figure 9).

Figure 9 - General Aviation fatal accidents per 100 000 hours flown, 1995 to 2004

Figure 9 - General Aviation fatal accidents per 100 000 hours flown, 1995 to 2004

Source: Department of Transport and Regional Services (Bureau of Transport and Regional Economics)

Notes: Data for 2004 is preliminary

Excludes accidents in Sports Aviation and Regular Public Transport

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Objective

Simple to use, clear and concise aviation standards and rules based on known risk factors
Strategies/Initiatives Progress report

Review and maintain national aviation safety standards and practices based on known risk factors:

  • develop and review regulations

Following the issue of CEO Directives 16 (Development of Regulations and the Regulatory Framework) and 17 (Establishment of Regulatory Advisory Panels), CASA and the Standards Consultative Committee (SCC) Sub Committees have been reviewing all draft CASR Part regulatory packages to apply the requirements of the Directives. To meet the objectives of the Directives, more detailed instructions were issued by the Chief Operating Officer to both CASA staff and the SCC. A trial assessment on new methodology was conducted using the maintenance suite of CASRs. This trial illustrated that there were still some differing views on concepts of risk assessment and outcome-based regulation. As a consequence, CASA conducted an information session for CASA and key industry personnel on these topics so that within CASA and the industry there would be a more unified view of these issues.

Considerable progress has been made with the application of CEO Directive 16 to the flight crew licensing suite of regulations (Parts 61, 141, 142) and to CASR Part 91 (General Operating and Flight Rules). CASA and the SCC Sub-Committees have commenced the review of CASR Part 146 (Engineering Representatives) and Part 121 (Air transport operations - large aeroplanes). The review of Subpart 21.H (Airworthiness Requirements for Light Sport Aircraft) has been completed and a report has been submitted to the SCC for consideration and subsequent CASA advice.

In relation to CEO Directive 17, the Terms of Reference have been accepted for the Regulatory Advisory Panels.

As required, CASA is amending existing standards to ensure their functionality. As the Regulatory Reform Program (RRP) continues to be delayed, there is an increasing need to consider other regulatory amendments outside the RRP. As such, a number of recommendations from the Australian Transport Safety Bureau (ATSB), Coroners and Parliamentary inquiries need to be reviewed.

  • extend current timeframe for completion of Regulatory Reform Program to improve quality of standards

During the reporting period, progress on the Regulatory Reform Programme (RRP) remained slow.

Following the issue of CEO Directives 16 and 17, revised regulatory development planning is under way to progress the RRP.

  • define the new timetable for completion of Regulatory Reform Program

A revised timetable will be completed by September 2005.

  • continue to improve regulatory clarity and conciseness through Post Implementation Review (PIR) of regulatory packages

Post implementation reviews under way include Parts 65 (Air traffic services licensing), 67 (Medical), 92 (Consignment and carriage of dangerous goods by air), 101 (Unmanned aircraft and rocket operations), 143 (Air traffic service training providers), 171 (Aeronautical telecommunications service and radionavigation service providers), 172 (Air traffic service providers) and 173 (Instrument flight procedures design). Significant progress was made in respect of each Part during the year.

The Post Implementation Review of CASR Part 171 (Aeronautical Telecommunication Service and Radionavigation Service Providers) was concluded with the publication of an Notice of Proposed Rule Making in December 2004 proposing relatively minor changes to the regulations, Manual of Standards and Advisory Circulars.

Performance targets  

On-track Delayed Completed

Reducing trend in average number of exemptions to CASRs over 10-year period

One of the key intentions of the Regulatory Reform Programme is the development of simple, unambiguous and generally harmonized regulations. It is expected that the aviation industry’s need for exemptions will therefore be reduced considerably.

The revised exemption provisions of proposed CASR Part 11 reflect the philosophy that exemptions and directions should be of limited duration to allow safety issues to be addressed while longer-term solutions are developed.

CASA expects there may be an increase in the number of exemptions as the new regulations are finalised and possible shortcomings in the regulations are identified. Exemptions may be required pending amendments being made to the CASRs. However, after the transition to the new regulations is finalised, CASA anticipates a decrease in the number of exemptions.

On-track Delayed Completed

Reducing trend in average number of amendments to CASRs

CASA expects a similar trend as is anticipated for the number of exemptions (above).

On-track Delayed Completed

By September 2004, publish the timetable to complete the Regulatory Reform Program

A revised CASA Plan (incorporating Regulatory Reform Programme and Regulatory Reform Programme Implementation) was developed and submitted to the CEO for consideration.

However, following the issue of CEO Directives 16/2004 and 17/2004, and pending finalisation of plans for the Regulatory Advisory Panels and the impact of the new CASA organisational structure, timeframes in that draft will be revisited with a view to completing the revised plan by September 2005.

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Objective

Identify and address the most significant safety related trends and risk factors in the system of civil aviation safety in Australia
Strategies/Initiatives Progress report

Significantly enhance CASA’s safety research and analysis capability

A new safety research capability that directly reports to the CEO was introduced on 1 July 2005 as part of the ‘Building a New CASA’ series of reforms.

Introduce mechanisms for translating the results of research and analysis into action within CASA and/or the aviation industry

Strategic Research Adviser continues to produce statistical and analytical reports on various aspects of CASA and industry activities.

Performance targets  

 

On-track Delayed Achieved

Annual identification of safety risks by industry sector and their sources

Identification of risk-based hierarchy of CASA's safety priorities is the basis for the new policy where CASA formally acknowledges it has been established primarily to look after the interests of the travelling public.

CASA's resources will be allocated broadly with the industry sector's position in the hierarchy of priorities.

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Objective

Address risk of uncontrolled flight into terrain in the General Aviation sector
Strategies/Initiatives Progress report

Conduct targeted safety education campaigns:

  • establish an education team to directly help training organisations improve the quality of flying training

During the reporting period, CASA established the Flight Instructor Development Program in conjunction with identified industry specialists and specific training courses were conducted for ten CASA flying training role specialists and six industry Approved Testing Officers.

In addition to this activity, a risk management education program was developed and implemented for operators of ex-military aircraft.

  • develop joint industry-CASA training regimes and materials

A rotary wing instructors conference was held and work commenced on developing a helicopter Flying Instructor Handbook

develop new Instructor Manual with industry input by December 2006

The Flying Instructor Handbook was revised and distributed to 1700 instructors with a request for input by October 2005 to assist the next revision phase.

Performance targets  

 

On-track Delayed Completed Not Due

Reduction in the percentage of fatal accidents involving uncontrolled flight into terrain

Results will not be apparent in reduced accident numbers for at least two years given the relatively low number of events and the time required to develop and implement the initiatives of the Flight Instructor Development panel.

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Objective

Improve effectiveness of CASA's surveillance program in contributing to better safety outcomes
Strategies/Initiatives Progress report

Implement risk-based surveillance auditing targeting specific safety risks identified from a whole-of-industry perspective

General Aviation (GA)

Functional Surveillance, Safety Trend Indicator (STI) and assessment of the Airline Risk Tool for some sectors of GA are all programs responding to CEO Directive 12. Progress is as follows:

  • The STI database has now been developed. This database allows flexibility for questions to be modified.
  • Management of the new General Aviation Operations Group will also be considering the application of the Airline Risk Tool to some sectors of GA.
  • The Functional Surveillance consultation phase and trial is completed. Feedback has been compiled from the consultative process.
  • Discussion and transitionary arrangements are being undertaken with GAOG on factors relating to Directive 12.

Airline Operations

  • Under CEO Directive 5, the Compliance Airline Office (now the Air Transport Operations Group) was to ensure that each airline organisation, including relevant maintenance organisations, were subject to one risk-based audit where the audited topic was determined from a ‘whole-of-industry’ perspective.
  • The audit topics for 2004-05 were Maintenance Control (for Air Operator Certificates) and Control of Documents (for Certificate of Approvals). The related audit elements are:
    • AOCs: System of Maintenance, Airworthiness Directive Management and Reliability Program.
    • COAs: Manual currency, content consistent across manuals and distribution
  • Consistency and standardisation was to be achieved by utilising a ‘control group’ of inspectors for each topic, where at least one member of the control group is utilised on each audit. Eight Control Group Inspectors were selected.

Develop a methodology to enable comparison of aviation risk between sectors, operators and category of operations (continued)

Currently, analysis is based on Electronic Safety Incident Reports, Aviation Safety Incident Reports, Service Difficulty Reports and auditing data. The results will:

  • produce reasonably accurate trend information
  • list those operators under the most relative and perceived pressures
  • A new Desktop Risk Tool was trialled. Further development is dependent on a review of air transport AOC & COA surveillance and entry control processes.

Regular update of Surveillance Procedures Manual to enable effective application of CASA’s surveillance program

Version 1.3 incorporating 9 amendments was released as planned in April 2005.

Performance targets  

 

On-track Delayed Achieved

By June 2005, introduce risk-based audits to airline sector with relevant audit topics

 

 

On-track Delayed Completed

By June 2005, introduce risk-based

audits to General Aviation sector

 

Strategies/Initiatives Progress report
  • by December 2005, all course participants routinely surveyed to determine effectiveness of the course

Participants routinely surveyed. Eighty-eight per cent of course participants in safety education programs reported their knowledge and understanding of the subject matter improved.

Quizzes conducted show eighty six per cent scored more than eighty five per cent correct answers in post seminar assessment.

Provide tools and guidance to internal and/or external groups to deliver educational material

Briefing in a Box concept introduced to widen delivery of CASA educational material. This concept will enable instructors to understand the background and deliver educational Briefings on specific topics with minimal preparation effort. First pack on Operations In and Around Controlled Airspace delivered.

Technical training and/or education for CASA staff and industry on the regulatory framework

Program generally on hold due to the review of the Regulatory Reform Programme. Support provided for industry education on current regulatory issues.

Provide sponsorship and support for

industry to introduce safety education

programs

Approximately $200,000 provided to a range of organisations engaged in delivering aviation safety related programs

Performance targets  

 

On-track Delayed  Achieved

CASA increases the number of industry participants attending safety education and promotion courses by 5 per cent per annum

CASA believe that this measure was achieved by following initiatives:

  • Briefing in a Box packs distributed to 215 flying schools.
  • The Safety Evening programs generated more than 200 attendees.
  • Total attendance at education programs was 2 562.
  • 22,000 CD/DVDs distributed covering operations around controlled airspace.
  • 800 AOC holders received 3 sets of runway incursion posters
  • 6000 education material addressing aircraft wiring issues were distributed to engineers.

 

On-track Delayed Achieved

80 per cent of course participants rate the courses as effective and have improved their understanding of their safety responsibilities

Eighty-eight percent of course participants in safety education programs reported their knowledge and understanding of the subject matter improved.

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Objective

Use CASA safety education programs to promote industry's responsibility for aviation safety
Strategies/Initiatives Progress report

Continuously review CASA's priorities, focus and resource allocation for safety education programs:

  • create awareness of safety maturity with Australian aviation participants, by industry sector

Focus on flying training introduced to support the foundations of aviation safety. Efforts focused on raising professional standards of instructors and testing officers.

Education programs are being determined and significant issues identified by accident and incident database analysis.

Provide support to Aviation Safety Foundation of Australia to develop generic pilot proficiency programs for delivery by flying schools.

Safety Management System awareness program continued through participation in professional conferences and distribution of information pack.

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GOAL: HIGH LEVEL OF PUBLIC CONFIDENCE IN AVIATION SAFTEY

Objective

Inform the public of the health of aviation safety in Australia
Strategies/Initiatives Progress report

Convey results of safety research and analysis to stakeholders

Research and analysis of general aviation fatal accidents was published on CASA’s web site in April. Media coverage was also generated.

Provide timely and accurate information to aviation industry, general public and media

A total of nine hundred and forty media stories involving CASA were monitored during the year. Approximately a third (33 per cent) were in print media, sixty per cent radio and seven per cent TV.

Ninety two per cent of stories were neutral in their treatment of CASA, with four per cent negative and four per cent positive. This is consistent with previous years.

Thirty nine media releases were issued during the year.

Conduct annual survey of general public

Annual survey developed. Procurement has been completed and survey planned to occur in the September quarter 2005-06.

Develop strategies to improve CASA’s crisis management response:

  • regular review and updated list of key risks to CASA’s public profile
  • develop responses to manage CASA’s public profile

Risks are reviewed monthly, with strategies developed to manage their occurrence. The key risks are reported to the Chief Executive Officer.

Responses to issues are reviewed and updated monthly and reported to the Chief Executive Officer.

Performance targets  

 

On-track Delayed Completed Not Due

Public confidence in aviation safety as measured in the annual survey

 

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GOAL: A WORLD CLASS REGULATOR

Objective

Embed the values and behavioural outcomes of the Minister's Charter Letter in CASA's personal and corporate performance frameworks
Strategies/Initiatives Progress report

Continue inclusion of values in the CASA Performance Communication Scheme

The inclusion of the CASA values is maintained, both in the current Performance Communication Scheme and in the revision to the scheme currently being negotiated as a part of the new CASA Certified Agreement.

Enhance existing learning and development programs

Continues to be emphasised in CASA Team Leadership Program and in CASA's revised Code of Conduct.

Revise recruitment and selection policies and practices

Completed. Reference to CASA values and behaviours incorporated into all selection criteria, and Human Resource Representative training also includes emphasis on the CASA values.

Conduct industry survey of CASA's values and behaviours

To be completed in 2005-2006.

Performance targets  

 

On-track Delayed Completed

Annual assessment of values and behaviours with the personal performance appraisal

Process under consideration as a part of the review of the existing Performance Communication Scheme and also in the context of the development the Certified Agreement.

 

On-track Delayed Completed

By June 2005, industry view of CASA's values and behaviours

 

 

On-track Delayed Completed Not Due

By June 2007, reducing trend of industry complaints about CASA's behaviours and consistency of regulatory decision making

 

TOP

Objective

Improve transparency and consistency of regulatory decisions
Strategies/Initiatives Progress report

Develop and publish aviation rulings

Five new rulings were issued during 2004/05.

The new rulings cover:

  • training and checking requirements, including the number of checks per 'calendar year'
  • classification of aerial work operations involving passengers
  • the carriage of infants and children in excess of flight manual limitations
  • serviceability of instruments and equipment for charter and regular public transport operations
  • approval to manufacture components in the course of maintenance.

Develop a toolbox for delegates providing examples and guidelines for compliance

A prototype has been developed but no further work undertaken. It has been identified that the progression of this issue will require significant financial and resource allocation if to proceed.

Performance targets  

 

On-track Delayed Completed Not Due

By June 2006, develop a toolbox for delegates

 

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Objective

Improve complaints handling
Strategies/Initiatives Progress report

Implement a comprehensive and publicly transparent complaints-handling mechanism

Completed. The CASA Service Charter has been reviewed and re-issued. To ensure transparency of the complaints management process, management and reporting of complaints and compliments is now undertaken at a senior management level and reported on a monthly basis to the Chief Executive Officer.

Monitor and analyse complaints and representations received

Corporate Affairs prepares a monthly report on complaints and representations and reports this to the CEO. Issues are identified based on complaints received and strategies and business improvements implemented to rectify any identified issues.

Performance targets  

 

On-track Delayed Completed

By December 2005, reduction in the annual number of complaints received about CASA

Initial analysis of the complaints received by CASA since the commencement of the Complaints and Compliments management processes have indicated a low level of 'true' complaints regarding CASA systems and processes.

Proactive steps taken from analysing matters referred to CASA through the processes outlined in the Complaints and Compliments framework aims to reduce the annual number of complaints received about CASA.

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Objective

Make decisions based on risk assessment
Strategies/Initiatives Progress report

Expand and improve CASA's risk management framework

  • develop risk models and tools for implementing risk-based industry surveillance audits

The desktop risk tool trialled in the Sydney Airline office. Trial results have been assessed and recommendations were made.

Work has commenced on a quantitative General Aviation risk model. Deliverables include risk based schedule tool and risk based resource allocation tool.

Risk methodology developed and delivered to assist with CEO Directive 16 and the Regulatory Reform Program.

  • contribute to a risk-based surveillance program for General Aviation and Airline Operations

Risk training provided as part of the deployment of the Airline risk model

Scheduling and resource allocation tools provided as part of the risk tool trial

General Aviation user requirement and new data inputs scoped.

Performance targets  

 

On-track Delayed Achieved

By 30 June 2005, risk-based surveillance implemented

 

TOP

Objective

Improved enforcement regime
Strategies/Initiatives Progress report

Effective implementation of enforcement reform:

  • develop training programs to implement and administer new enforcement tools with consistency and fairness

New enforcement tools are being used with no specific training undertaken as training was completed immediately after the new changes were introduced.

A formal review was undertaken of the new enforcement tools and completed in May 2005.

A review report was presented to the Chief Executive Officer and a number of changes to the new tools have been recommended.

These recommended changes will be referred to the Department of Transport and Regional Services for consideration as they will require amendments to the Civil Aviation Act.

  • use of infringement notices to trigger the demerit points scheme for appropriate breaches

Infringement notices are being used in accordance with new enforcement tools.

During the 2004/05 financial year, 79 infringement notices were issued. On the rare occasion that the fines associated with the notices were not paid, the matters were referred to the Director of Public Prosecution for prosecution.

In all cases so referred, the courts found the person guilty and imposed fines significantly higher than the original administrative fine.

Develop Compliance Management Instruction pending incorporation into Enforcement Manual

It was determined that the Enforcement Manual will be directly updated by Office of Legal Counsel (now LSG) in lieu of a temporary Compliance Management Instruction.

Performance targets  

 

On-track Delayed Achieved

Maintain a low number of enforcement decisions overturned by the Administrative Appeals Tribunal

During the 2004/05 financial year no CASA decisions were overturned by the Administrative Appeals Tribunal.

In relation to a serious and imminent risk suspension decision taken by CASA, the Federal Court overturned CASA's decision. But no reasons have yet been provided for the Court's decision and CASA cannot make a judgement on what concerns the Court may have had.

 

On-track Delayed Achieved

By June 2005, measure usage by CASA inspectorate of new enforcement tools

From the number of infringement notices issued and Enforceable Voluntary Undertakings accepted during the year it is evident there has been a significant uptake of the new enforcement tools.

It is important to note that, to date, there has been no criticism from industry of CASA's use of infringement notices and demerit points.

 

On-track Delayed Not applicable

By August 2004, develop Compliance Management Instruction

 

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Objective

Ensure the safe and smooth transition of industry and CASA to the new CASRs and other regulatory amendments
Strategies/Initiatives Progress report

Comprehensive task and resource planning and scheduling

The closure of Regulatory Reform Program Implementation (RRPI) and the handover of outstanding tasks/activities to the respective groups under the new structure was completed on 30 June 2005

Ensure staff and industry readiness through information and education

Regulatory Reform Program Implementation (RRPI) completed a number of readiness programs for both industry and staff.

Most notable were:

  • A program of twenty two briefings for industry personnel addressing the requirements of Quality Management Systems and Manufacture in the Course of Maintenance (MITCOM).
  • Delivery of a Flying Operations Competency Based Training (CBT) training program for industry and staff across the country. The program addressed the requirements under the existing legislative framework and will assist in preparing industry for transition to the new rules.

Timely transition of industry to new regulations according to their business needs

  • Part 47 - Aircraft Registration Transition - thirty per cent complete

1623 certificates have been issued to date. Responsibility for ongoing transition to Part 47 was handed over to the Personnel Licensing, Education and Training Group on 30 June 2005.

  • Part 11 - Regulatory Administrative Procedures - fifty per cent complete

Briefings for CASA staff have commenced with sessions being conducted in Adelaide, Cairns and Townsville. The remainder of the briefings will be carried out in 2005-06.

  • Part 139 - Aerodromes - forty five per cent complete

Case management of all Part 139 aerodrome operators continues and the project is on track - ninety six aerodromes have been registered and fourteen have received certification.

With respect to the requirements of Part 139 relating to ‘Approved persons for safety inspections’ - fifteen approvals have been issued to date.

  • Part 173 - Instrument Flight Procedure Design fifty per cent completed.

A first certification under this Part has occurred. Qantas has sought an Authorisation to provide services for their international operations. Airservices Australia’s application for Certification is proceeding.

Individual case management of transition of organisations through the Regulatory Reform Program Implementation

  • Case management of Part 139 aerodrome operators continues, particularly at aerodromes with limited resources. Case management includes assistance in preparing the transition to the aerodrome manual and safety management manual.

Conduct Post Implementation Review on transition

  • Post Implementation Review planned but not yet commenced for Parts 21, 60 and 92.
Performance targets  

 

On-track Delayed Completed

Transition started on or before effective date of each Civil Aviation Safety Regulation

  • Part 47, 11, 139 and 173 commenced on time

 

On-track Delayed Completed

Industry transition completed by the end of each relevant Civil Aviation Safety Regulation transition period

  • All parts ongoing and have been transferred to the respective groups within the new structure

TOP

Objective

Maintain Australia's international aviation safety reputation
Strategies/Initiatives Progress report

Work cooperatively with the Department of Transport and Regional Services and Airservices Australia in accordance with the tripartite memorandum of understanding on Australia’s participation in the International Civil Aviation Organization (ICAO)

A productive and cooperative working relationship exists between CASA, the Department of Transport and Regional Services and Airservices Australia in relation to Australia’s participation in ICAO.

Quarterly meetings of senior officials of the three agencies are held to review current high-level issues and provide direction to the Australian Representative on the Council of ICAO.

Support ICAO through active Participation

CASA has actively supported ICAO with an appropriate level of Panel and Working Group participation at both global and regional levels. The requirement to maintain this level of support, as defined in the Minister’s Charter Letter, has been met. Additional effort has been expended in initial planning for the Director’s General of Civil Aviation, Asia Pacific Conference.

Maintain effective interaction with overseas regulatory authorities

Regular liaison is maintained with overseas regulatory authorities across a wide range of issues, including direct interaction and through conferences and meetings. This has been continued effectively with the Federal Aviation Administration, the United Kingdom Civil Aviation Authority, the Luftfahrt-Bundesamt (LBA), the Civil Aviation Authority of China and the New Zealand Civil Aviation Authority. Due to resource constraints a lesser degree of interaction has been undertaken with the Centro Technico Aerospacial (CTA) of Brazil, Singapore Civil Aviation Authority and Japan Civil Aviation Bureau. Other Authorities have been contacted on an as-required basis.

Establish an effective working relationship with the European Aviation Safety Agency (EASA)

Establishment of this relationship commenced with a visit to EASA resulting in an EASA review of CASA aircraft certification systems in Australia. Subsequent visits to EASA for an international conference, including at Chief Executive Officer level, have established an effective working relationship.

Performance targets  

 

On-track Delayed Completed

Maintain Australia’s status as an International Civil Aviation Organisation (ICAO) Member State of Chief Importance in Air Transport

Australia was re-elected to Group 1 of the Council of ICAO at the 35th Assembly in September/October 2004 as a ‘State of Chief Importance in Air Transport’. The strong support for Australia can be attributed to, Australia’s strong commitment to active participation in ICAO panels and working groups, and the high regard for Australia’s contribution to the work of ICAO.

 

On-track Delayed Achieved 

By June 2005, substantial progress made towards conclusion of bilateral agreements with target nations:

  • United States, Canada, Brazil, United Kingdom and China

The Executive Agreement of a Bilateral Aviation Safety Agreement with the United States has been signed and, at the time of reporting, final work is under way for the Implementation Procedures Airworthiness. An arrangement has been completed with the United Kingdom. A final technical assessment of Civil Aviation Authority of China has been completed. Other arrangements have not progressed due to higher priorities and resource constraints.

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Objective

Engage cooperatively with industry
Strategies/Initiatives Progress report

Develop a program of industry interaction by the Chief Executive Officer and senior managers in operational areas

A series of industry consultation meetings have been held in Bankstown, Brisbane, Darwin, Cairns, Townsville, Adelaide and Perth. This program will be continued in the 2005-06 period.

Meetings were attended by the Chief Executive Officer, Deputy Chief Executive Officer and other applicable senior managers within CASA.

Expand the role of the Aviation Safety Forum (ASF) to provide strategic advice to the Chief Executive Officer on specific issues

Additional members were appointed to the Aviation Safety Forum during the reporting period to enhance the strategic role of the Forum.

Consideration was also given to the role and structure of the Forum, with internal governance changes being made to the meetings structure and content to enhance its effectiveness.

Review the role of the Standards Consultative Committee (SCC) in providing an effective mechanism for CASA and the aviation industry to consult on a wider range of CASA activities and services

The SCC formed a working group to consider:

  • SCC working practices
  • Possible future roles for the SCC.

The working group provided a report to the SCC. The SCC expects to provide its final recommendations to CASA following its August 2005 meeting.

Review and revise delegations framework and rationalise delegations

Delegations for former Executive Manger Aviation Regulatory Services, General Manager Regulatory Services Branch and Manager Business Development reviewed.

Review and revision of the Industry Delegates and Authorised Persons Management Manual commenced.

Implement scholarship program

The first scholarship winner has been chosen.

Revision of the Scholarship Program is currently being examined, to enhance appeal and flexibility to potential participants.

Performance targets  

 

On-track  Delayed  Achieved

By December 2004, develop program of industry interaction

 

 

On-track  Delayed  Achieved

20 per cent of the CEO's time allocated for industry interaction

 

 

On-track  Delayed  Achieved

By June 2005, complete review of the role of the Standards Consultative Committee

 

Performance targets  

 

On-track  Delayed  Completed

By 30 June 2005, delegations framework reviewed and revised

 

 

On-track  Delayed  Achieved

By June 2005, implement scholarship program

 

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GOAL: A HIGH PERFORMANCE ORGANISATION

Objective

Increase overall efficiency by optimal use of CASA resources
Strategies/Initiatives Progress report

Conduct establishment review

No longer relevant as the initiative was overtaken by new organisational structure announced on 1 July 2005.

Increase cost consciousness of all CASA staff

  • refine and update financial systems to ensure they provide data that supports management decision making

Group General Managers included in ‘bottom-up’ budget process to develop the CASA 2005/06 internal budget.

Quarterly forecasting introduced in March to enable managers to revise expenditure in line with business requirements.

Training sessions conducted for managers to assist their understanding of budgeting, forecasting and financial reporting.

  • develop analytical commentary of expenditure for monthly CEO report

Monthly CEO report enhanced to better reflect CASA’s financial position, including key ratios for liquidity, financial stability and net worth.

Monthly variance analysis has been consolidated by Finance, to provide accurate and complete information to the Chief Executive Officer, while retaining Division Managers’ accountability for managing their budgets.

  • closely monitor expenditure trends

Monthly variance analysis examines expenditure trends and reports areas of concern to Chief Executive Officer.

Quarterly forecasting requires managers to acknowledge expenditure trends, identify their cause and assess their likely continuation or reversal.

Managers’ accountability for meeting forecasts is designed to produce quality forecasts.

Establish bottom-line budgeting within CASA

Implementation attempted for 2005/06 budget. Due to CASA’s organisational restructure, historical cost information was of limited value and managers were asked to estimate their funding requirements within Portfolio Budget Statements (PBS) limitations.

Further training of managers will be required for full implementation of bottom-up budgeting. This is planned for 2005/06.

Intend to commence the 2006/07 budget process in November 2005 to provide more time for managers to assess requirements, including projects.

Performance targets  

 

On-track Delayed Not Applicable

By June 2005, complete establishment Review

 

 

On-track Delayed Achieved

By June 2005, develop measures of relationship between CASA expenditure and industry activity

Expenditure is limited to funding levels and two-thirds of CASA’s funds (fuel excise and fees for services) is linked to industry activity. The Long Term Funding Strategy proposed a ‘fuel reserve’ to create a funding buffer between changes in industry activity and the associated response with CASA’s activities. This arrangement was approved with the acceptance of the Long Term Funding Strategy.

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Objective

Manage CASA's activities and costs within a long-term funding strategy
Strategies/Initiatives Progress report

Develop long-term funding strategy (LTFS)

LTFS supported by Department of Finance and Administration, The Department of Transport and Regional Services (DOTARS) and Treasury and approved by Expenditure Review Committee (ERC) in March 2005.

Funding and expenditure levels proposed in LTFS documented in DOTARS Portfolio Budget Statements 2005-06.

Improve procurement capabilities in CASA

Procurement is managed within Legal Services Group; however, other CASA areas will assist with a review of CASA's procurement policies and procedures, and make recommendations for implementation of best practise.

Performance targets  

 

On-track Delayed Achieved

By December 2004, long-term funding strategy forwarded for government's consideration

 

TOP

Objective

Continuous improvement in CASA services, processes, techniques, systems, knowledge and information management
Strategies/Initiatives Progress report

Continuously review CASA’s business processes to improve industry service delivery and achieve cost efficiencies

Successfully conducted a demonstration of concept on the Generated Minimum Equipment List (G-MEL) project. Business Case completed.

Measure and publish agreed service levels for regulatory services

Completed. Service Centre ‘Service Commitment’ brochure released during the reporting period.

Implement Aviation Industry Regulatory System (AIRS) and service delivery model as a product of CASA Improvement Program

The Core Architecture for the new CASA System (AIRS) has been completed. Phase 1 functionality, which incorporates aviation industry individual participants and their licences (based on the new CASR Parts 61, 64 and 66), has been built and integration tested.

Phase 2 functionality, which incorporates aviation industry organisation participants, their certificates and the aircraft register has been built.

The training approach and design of training material for the implementation has been completed and training material preparation is under way.

Application support transition planning is in progress.

Implement a dedicated Design and Manufacturing Office from existing resources to service the needs of the Australian aviation manufacturing Industry

The new Manufacturing, Certification and New Technologies Office will service the needs of the Australian aviation manufacturing industry. This Office commenced in operation in July 2005.

Performance targets  

 

On-track Delayed Achieved

By June 2005, 85 per cent of General Aviation Air Operator’s Certificates, Certificates of Approval and Aerodrome Certificates will be issued within agreed timeframes

CASA exceeded the target in on-time issue of AOCs and COAs in the three quarters of 2004-05 (see Figure 10).

Figure 10 - On-time issue of AOCs and COAs

Figure 10 - On-time issue of AOCs and COAs

Note: data on issue of Aerodrome certificates not available

 

On-track Delayed Completed

Set benchmarks with relevant industry segments for timely delivery of regulatory service

The CASA Service Centre ‘Service Commitment’ brochure outlines service delivery benchmarks for the provision of regulatory services.

 

On-track Delayed Completed

By December 2005, implement Aviation Industry Regulatory System

  • The implementation date for the combined release of the System, which incorporates Phases 1 and 2, has been set at September 2005

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Objective

Achieve a high level of awareness of government reform agenda, respond fully to government policy directions
Strategies/Initiatives Progress report

Conduct bi-monthly meetings with Minister and Secretary of the Department of Transport and Regional Services

Meetings with the Minister including the Secretary of the Department of Transport and Regional Services and the Chief Executive Officer have been held on three occasions.

Regular meetings were held with representatives of DOTARS to support the introduction of new aviation security initiatives as specified by the Government.

Conduct a cost recovery review, in line with the government's guidelines and schedule

Implementation of the first phase of the cost recovery program scheduled for January 2006

Support new aviation security initiatives as specified by government

CASA has fully supported the aviation security initiatives where it has statutory responsibility, such as photo licences.

Throughout the reporting period, CASA worked with the Department of Transport and Regional Services, Office of Transport Security in relation to the amendment of the Aviation Transport Security Act 2004 and the preparation of the Aviation Transport Security Regulations 2005. All applicants for flight crew licences and special pilot licences now undergo a full aviation security check and assessment including a criminal record check. Existing licence holders are also undergoing the security check and assessment in line with the new Aviation Transport Security Regulations 2005.

Support the safe and timely implementation of National Airspace System (NAS) stages

  • CASA is supporting the safe implementation of NAS in a timely manner and engaging pro-actively to give effect to decisions made.
  • CASA is ensuring all regulatory issues are dealt with to enable changes in NAS to be implemented.
  • The NAS Project Team was established in March 2005 to assist with ensuring CASA has a thorough and consistent approach to NAS matters. This will as required include the development of cohesive policies and procedures and clear reporting guidelines.
Performance targets  

 

On-track Delayed Achieved

By June 2005, increase cost-recovery revenue to $5 million per annum

Fees increased 1 July 2004 to boost cost recovery revenue to $5m

Actual cost recovery revenue for 2004/05 of was $4.896m, which was 2% below target, due to lower demand for some services.

 

On-track Delayed Completed Not Due

By December 2005, submit cost recovery review report to government

CASA’s Cost Recovery Impact Statement (CRIS) will be delivered as part of the 2006/07 budget process in February 2006.

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Objective

Motivated, capable and high-performing people
Strategies/Initiatives Progress report

Continue implementing People Management Strategy:

  • implement learning and development systems and procedures

Completed. Revision of processes and procedures has now been undertaken. Establishment of the Learning and Development Advisory Group has assisted in applying processes and procedures across CASA.

Work has also progressed in relation to building an e-learning environment with the purchase of on-line build tools.

Develop an Occupational Health and Safety (OH&S) strategy that supports a safe and healthy workplace

OHS Strategy developed and operating.

OHS Agreement has been finalised and has been provided to applicable parties for final agreement.

Audit and Risk Committee referred OHS implementation plan to internal auditors KPMG for review. Audit report noted that OHS plan adequately addresses OHS legislative requirements at high level and should assist in ensuring appropriate framework is in place to effectively manage CASA’s OHS responsibilities.

Improve flexibility in workforce management by:

  • a new Certified Agreement (CA) that is designed to deliver business outcomes
  • conditions of service that support business outcomes

CASA has developed and delivered a draft CA that provided the CASA position to the staff associations. The draft supports the business outcomes being sought out of the CASA reforms. It provides an employment framework that will help to deliver CASA’s business outcomes.

Performance targets  

 

On-track Delayed Completed Not Due

By June 2006, improved satisfaction in CASA staff survey

An employee survey is proposed following the completion of the organisation re-structure.

 

On-track Delayed Achieved

By June 2005, occupational health and safety strategy developed

 

 

On-track Delayed Completed

New Certified Agreement to be negotiated by June 2005

 

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Objective

Deliver enhanced level of organisational integrity, ethics, probity, governance and accountability
Strategies/Initiatives Progress report

Introduce an internal reporting mechanism on organisational shortcomings (whistleblower scheme)

The Protected Disclosure Policy (whistleblower scheme) was implemented on 24 May 2004 and is fully operational.

Develop a three-year, risk-based internal audit program

  • implement new internal audit Charter for the audit and risk committee

The new internal audit Charter for the Audit and Risk Committee implemented. The Audit and Risk Committee (ARC) has met on a regular basis.

The second annual report of ARC has been completed, and the second annual self-assessment exercise has been undertaken.

Enhance performance management in CASA

  • Training of managers in budgeting, forecasting and financial reporting was delivered in 2004/05 and will continue in 2005/06.
  • Quarterly forecasts provide flexibility for managers to manage expenditure to meet business needs while continuing to manage their bottom line.
  • Mid year review enables senior management to consider any financial issues and take early corrective action. This reporting framework is in line with best practise.
  • Revisions to senior manager and all staff performance management processes is expected to achieve enhanced performance outcomes for CASA.

Continuously improve the quality of reporting in the Annual Report

  • CASA showed a marked improvement on quality of its reporting in by gaining recognition by way of a Gold Award from the Institute of Public Administration Australia (ACT Division) and a Bronze Award from the Australasian Annual Reporting Awards for the 2003-2004 report.

Maintain task-tracking tool to ensure organisational performance on operational tasks and deadlines

  • The task tracking tool has been developed and is operational.
Performance targets  

 

On-track Delayed Completed

By June 2005, whistleblower scheme operational

The Protected Disclosure Policy was fully operational from 24 May 2004.

 

On-track Delayed Completed Not Due

By June 2006, survey of CASA staff shows high awareness of and confidence in the whistleblower scheme

Survey will be conducted during the 2005-06 financial year.

A number of staff awareness courses were held during the year in relation to Fraud, Ethics and Privacy issues which reinforced understanding of the whistleblower scheme.

 

On-track Delayed Completed

By June 2005, Divisional Business Plans form part of Divisional Managers' Performance Agreements with Chief Operating Officer

Delay a result of CASA restructure and confirmation of Senior Management Group employment arrangements.

 

On-track Delayed Achieved

Feedback from individual users and formal assessments by the Joint Committee of Public Accounts and annual reporting award bodies

CASA's 2003-04 Annual Report won the Gold Award from the Institute of Public Administration Australia (ACT Division) and also a Bronze medal from Australasian Reporting Awards for the same publication.

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Performance reporting against portfolio budget statements

Objective

Simple to use, clear and concise aviation standards and rules based on known risk factors
Performance measures Analysis

Industry acceptance of the rules

Industry is becoming increasingly involved in the development of CASA’s standards either though public consultation or through their representation on the SCC. The role of industry in the regulatory development process to be further enhanced through the application of the CEO Directives 16 and 17.

Objective

Use CASA safety education programs to promote industry‘s responsibility for aviation safety
Performance measures Analysis

Safety education program customised to meet needs of industry sectors

Flying instructor training program developed by with industry panel.

Work commenced with helicopter operators on instructor handbook.

Risk management education program developed for operators of ex-military aircraft.

Percentage of resources for safety education reviewed

Availability of non-Aviation Safety Promotion (ASP) staff increasing with input and participation from other areas of CASA i.e. former business divisions of Office of Legal Counsel, Aviation Safety Standards, Aviation Safety Compliance and Regulatory Reform Programme Implementation. Nine individuals from these areas of CASA participated with the three ASP Program Delivery staff.

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Objective

Continuously improve the delivery of CASA services to industry
Performance measures Analysis

Annual survey of key industry representatives, opinion makers and industry recipients of CASA services

  • During the year, ninety per cent of industry recipients indicated satisfaction with the regulatory services provided by the CASA Service Centre (see Figure 11).

Figure 11- Industry satisfaction with regulatory services

Figure 11- Industry satisfaction with regulatory services

Number of processes for entry to the aviation industry periodically reviewed

Industry delegates processes currently being reviewed.

Air Operator Certification Manual revised.

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Objective

Improve effectiveness of CASA's surveillance program in contributing to better safety outcomes
Performance measures Analysis

CASA and industry complying with the procedures laid down in the Surveillance Procedures Manual (SPM)

In the June quarter, Quality Reviews (QRs) were completed for the South Queensland Area Office, Melbourne Airline Office and Sydney Aerodromes. The QR of the Northern Territory & Kimberleys Area Office originally planned for July 2005 was also brought forward into the June quarter, and was successfully completed. All reports with the exception of Sydney Aerodromes are complete including the QR report for the NSW Country Area Office audit conducted in the previous quarter.

As a result of the organisational restructure, the majority of audits and associated reports were completed using a single Quality and Safety Systems Engineer due to the secondment of the second quality auditor into the Personnel Licensing, Education and Training Group. The remaining Quality and Safety Systems Engineer also assisted with a special quality system audit undertaken by the Melbourne Airline Office.

All General Aviation Field Office audits conducted by the former Compliance Division are being finalised and files are presently being transitioned to the GA Operations Group. All previously scheduled Air Transport Operation Group (ATOG) audits have been placed on hold, and a new schedule specific to the responsibilities of ATOG Quality and Development Section is being prepared.

Number of operators audited according to the surveillance plan

Operating Sector
Period 1
Period 2
Period 3
Period 4
Annual

General Aviation

100%

97%

91%

80%

92%

Airline Operations

94%

99%

100%

 99%

 98%

Aviation Infrastructure and Sports Aviation

107%

105%

 90%

 103%

 101%

STI ‘desktop’ audits

100%

 100%

 98%

 94%

 98%

On average CASA completed ninety four per cent (487 of 523) audits scheduled for general aviation for 2004-05 (see figure 12).

At the end of the financial year thirty six audits (6 per cent of scheduled audits) remain outstanding.

Of these, twenty per cent have been completed and are being finalised, eight per cent (3 operators) are not operational, thirty three per cent are to be rescheduled under the new Risk Based Audit System and thirty one per cent are delayed due to resource issues.

Figure 12 Compliance audits - General Aviation

Figure 12 Compliance audits - General Aviation

On average CASA completed ninety nine per cent (2887 of 2917) of STIs scheduled for 2004.05 (see figure 13).

At the end of the financial year, thirty STIs (1 per cent of scheduled STIs) remain outstanding.

Of these, seventeen per cent have been completed and are awaiting finalisation and seventy per cent delayed due to resource issues.

Figure 13 General Aviation STI 'desktop' audits

Figure 13 General Aviation STI 'desktop' audits

On average CASA completed ninety seven per cent (186 of 192) of audits scheduled for domestic airlines for 2004.05 (see figure 14).

At the end of the financial year, five audits (3 per cent) remain outstanding. Of these, two audits are delayed due to resource issues and replanned for August 2005. Remaining audits are not applicable as either operators have ceased operations or not operating as an Australian Registered Aircraft

Figure 14 Compliance audits - Airline Operations

Figure 14 Compliance audits - Airline Operations

On average CASA completed ninety nine per cent (222 of 225) of audits scheduled for aviation infrastructure and sports aviation for 2004-05 (see figure 15).

The three remaining audits are from aviation infrastructure and will be rescheduled for completion in the next financial year.

Figure 15 Compliance audits - Aviation Infrastructure & Sports

Figure 15 Compliance audits - Aviation Infrastructure & Sports

The special audits are based on safety intelligence and are planned and carried out from time to time. 226 special audits were completed during 2004-05 (see figure 16).

No target is set for this measure.

Figure 16 Special audits 2004-05

Figure 16 Special audits 2004-05

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Objective

Improved enforcement regime
Performance measures Analysis

Consistency of application of informal enforcement actions

Closer working relations between Enforcement and Investigations and Compliance Division during the reporting period has resulted in achieving better consistency in overall input from CASA Area Offices.

New procedures have been finalised to formalise these closer working arrangements. These procedures will be included in the Enforcement Manual (and introduced as the Chief Executive Officer policy if necessary) during 2005/06.

Objective

Make decisions based on risk assessment
Performance measures Analysis

COMCOVER benchmarking outcome for risk management framework

  • CASA received a score of 4 out of 5 for its risk management framework and received five per cent discount on its insurance premium from COMCOVER.
  • CASA has been placed in the highest percentile of 135 Australian Public Service and private sector agencies surveyed. CASA’s benchmarking score reflects the advanced implementation of a comprehensive and integrated risk management framework.
  • Policy and procedural suite updated to reflect the new CASA structures and accountabilities

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Objective

Maintain Australia‘s international aviation safety reputation
Performance measures Analysis

Maintain position of Australia as one of top ten International Civil Aviation Organisation (ICAO) States

Australia was re-elected to Group 1 of the Council of ICAO at the 35th Assembly in September/October 2004 as a ‘State of Chief Importance in Air Transport’.

The 35th Assembly increased the size of Group One from 10 to 11 States, so reference to ‘top ten’ ICAO States is no longer appropriate.

Annual survey of key international industry representatives

The recently established Certification Working Group under the government's Aerospace Industry Action Agenda will provide a useful forum to initiate a survey of international industry representatives.

Objective

Increase overall efficiency by optimal use of CASA resources
Performance measures Analysis

CASA resource allocation integrated with organisational design

Change Implementation Team tasked with implementing strategies proposed in the Long Term Funding report, including assessing the way CASA provides services, with particular focus on improving efficiency of support (non-core) functions.

Continuous improvement projects have been identified by the Finance Office in the areas of financial reporting, credit card administration and month-end processing.

CASA’s Organisational restructure introduced on 1 July 2005 accentuates CASA’s core business focus.

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Objective

Achieve a high level of awareness of government reform agenda, respond fully to government policy directions
Performance measures Analysis

CASA Performance Agreement established

The draft CASA performance Agreement was forwarded to the Minister for his endorsement.

Objective

Continuous Improvement in processes, techniques, systems and knowledge and information management
Performance measures Analysis

New tools and systems implemented

  • Applications Development and Maintenance
    • Production systems databases upgraded to Oracle 9i.
    • Human Resource Management System (HRMS) and Financial Management Information System (FMIS) amended to facilitate new organisational structure
    • Learning Management Survey loaded into HRMS
    • Enhancements released for Safety Trend Indicators (STI), Service Difficulty Reporting (SDR), Airworthiness Directives Workflow (ADW) and Flying Currency and Training (FCAT)
  • Infrastructure Services
    • USB Memory Stick security project completed
    • XP Standard Operating Environment(SOE) rolled out to all CASA laptops
    • PABX operating system upgraded including voicemail and call accounting
    • Disaster Recovery Plan completed.
    • Web Content Monitoring Tool Content Keeper) deployed
  • Information Services
    • CEO Feedback Form and Management eRoom delivered
    • Post Implemention report on New South Wales Country Area Office Job Management System (JMS) eRoom delivered
    • Report delivered and distributed to Airservices Australia and third party suppliers on review and proposed consolidation of CASA publications
    • Branch Technical staff completed Information Technology Infrastructure Library training

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