GA Prepares to Fight Cost Recovery

The meeting comprised representatives of East West Airlines, the Regional Airlines Association, the Royal Federation of Aero Clubs, the Helicopter Association of Australia, the Aircraft Owners and Pilots Association, the Aerial Agricultural Association of Australia, the General Aviation Association, the Gliding Federation of Australia and the Australian Ultralight Federation.

The meeting rejected DofA plans as not reflecting the intention of the Bosch inquiry and as a deliberate attempt to manipulate and circumvent the spirit of that inquiry’s recommendations.

The meeting called for-

1. The rejection of the DofA’s plan for ‘cost recovery’ which is nothing more than a revenue device to fund the Government deficit.

2. An all-embracing independent inquiry into the excessive administration and management practices of the DofA which do not result in a quantifiable improvement in safety.

3. The meeting agreed to establish an umbrella body more effectively to pursue the common concerns of all sections of the general aviation industry.

Mr Smith’s election as chairman is an indication of the desperate economic state of the general aviation industry, which includes everything from regional and commuter airlines down. Many aviation organisations have until now publicly maintained an arms length between themselves and Mr Smith’s strident campaign for an independent inquiry into the DofA-even though many have privately supported him in a number of areas. Mr Smith’s election came as a surprise to him as he was only told of the meeting two days before and arrived late, having not intended to attend because of other commitments.

After being elected chairman, Mr Smith said that he would transfer to the new umbrella body $2,000 donated over the last year by hundreds of pilots to his Aviation Committee of Review Proposal (ACORP) campaign. He said that he would add to this $2,000 of his own money, AOPA also agreed to contribute $2,000.

The President of the Royal Federation of Aero Clubs, Mr Jack Fahey, of Newcastle, said that under the new rules government charges would rise from 38 per cent to over 50 per cent of the cost of operating a typical light aircraft. He went on, “The aviation industry would have no objection to paying increased charges if they represented a constant proportion of turnover in a time of expansion. But we are caught in a public service and union stranglehold. The government has picked the eyes out of the Bosch report and is implementing the parts that suit the Department and not the parts that do not. ”

Industry members said that expensive control towers recently built at rural airports in NSW such as Coffs Harbour, Albury, Wagga and Camden were not justified by the number of aircraft that would use them and would be grossly under-utilised. They said pilots from different airlines had made pacts to tell control towers that they had each other in sight, even if they did not, to avoid excessive, time-consuming air traffic control separation procedures, according to industry representatives.

The industry wants the Government to follow the Bosch recommendation to make individual assessments of all facilities provided by the Department to determine whether their actual use justifies cost recovery allocations.

One pilot said: “The Department tells everyone that its services are vital for safety but the worst aircraft accident in history, when two 747s collided at Teneriffe, would never have happened if the pilots had been talking to each other instead of to an air traffic controller. ” Pilots also objected to having to train retired military pilots to fly light aircraft, then have these same pilots check them out when they become examiners of airmen for the Department. Twelve out of thirteen senior officers in the DotA have no aviation-related qualifications or background and the only one who does is a former military pilot with no experience of commercial aviation.

Many aircraft operators say they will refuse to make the new payments. The new Government charges on country air services will force up small airline’s fares while leaving travellers on inter-capital trunk routes untouched, according to the General Aviation Association. Some small airlines and aircraft operators face increases in government charges of over 1,000% The new cost recovery policy is broadly based on the independent Bosch report on aviation cost recovery which was released in December 1984 and is generally agreed to be an accurate, objective, and even-handed assessment of the industry situation – certainly far more so than many other consultant’s reports on the industry. It recommended that full recovery of costs, within 10 years, was essential if the objectives of financial discipline and economic efficiency were to be achieved in the provision of aviation facilities and services. It considered that there was no chance of 100 per cent cost recovery under present arrangements and made various recommendations.

However, much Departmental planning assumes industry growth over the next decade as a means of keeping cost containment or reduction in line with increasing cost recovery levels. But the GAA believes there is a distinct risk of a decrease in general aviation activity as higher charges bite. According to the GAA, the mechanics of the proposed charging system will impose considerable difficulties on many general aviation operators who do not have sophisticated accounting and record-keeping facilities. It has recommended the dual running of the existing and proposed systems for at least a year with operators continuing to pay ANCS while adapting to the new scheme. This would also help the Department to accurately analyse the impact of the new system and highlight any deficiencies.

A couple of days after the industry meeting, Mr Morris reissued a press release saying that the Government had agreed to a year’s dual running of old and new charging systems for general aviation. But this will not include supplemental airlines which the industry believes is part of general aviation.