Airserices CEO Jason Harfield addresses the RAAA Convention. seth jaworski
From the regions
Pilot Shortage bites
The aggressive and ongoing pilot recruitment strategy, particularly from international airlines, has seen an increasing pressure on regional airlines who are losing senior and experienced pilots. As the recruitment spreads to the major carriers, the trickle-down effect has seen further pressure being applied to our sector.
In a double whammy, the latest government reform to Australia’s temporary and permanent sponsored skilled migration programs had a significant detrimental impact on our short to medium pilot staffing plans. The government announced in 2017 that fixed wing pilots, rotary wing pilots and Avionics engineers were no longer eligible as to be included on the Skilled Occupation List. Needless to say the RAAA and others lobbied for an opportunity to present some data to support our contentions that there were in fact critical shortages in these skilled occupations. We have had a partial win in that these occupations are now included on the Short Term Skilled Occupation List (STSOL).
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However, this is still far short of where we need to be. These occupations are required to be included in the Medium and Long Term Strategic Skills List (MLTSSL). The RAAA will continue to advocate for the industry and we hope to reinstate these skilled occupations to the MLTSSL by January 2018.
The Australian Aviation Associations Forum (TAAAF) continue to see exponential growth of 25 per cent in the last 5 months. There are now over 20 participants. The TAAAF is an alliance of the majority of Australia’s major aviation associations to ensure the industry presents a united voice to government on key aviation issues and policy, characterised by expertise and a wide representation of people and organisations committed to aviation. Visit the website at www.taaaf.org to learn more. Perhaps your association could consider an application to join with us?
CASA have recently appointed a new Senior Aviation Advisor, reporting directly to the Director of Aviation Safety (DAS).
This is very good news indeed as we now have improved confidence that the DAS will be receiving high quality advice from someone who has relatively recent airline industry experience along with a broad understanding of the many facets of the aviation industry.
Convention
The 2017 RAAA Convention on the Gold Coast was excellent again. Find someone who attended and find out first hand just how important this event really is. It’s not too early to start planning for our 2018!
One of the many wonderful presenters was Jason Harfield from AirServices. Jason reported that the Accelerate program had delivered all its promises and the results are now there for everyone to see. While recording a 4.5% growth in annual income last year, they achieved a 15.2% cut in expenses compared to the prior year. This resulted in annualised savings of $177 million and delivered an underlying net profit after tax of $59 million.
The old AirServices had a ratio of five support staff for every four operational workers. Accelerate has turned that around so now there are four support staff for every five operational workers.
Importantly to RAAA members these efficiency and productivity gains have produced a reduction in total cost per flight hour by nine per cent on the previous year. In real terms this means that after flagging a 15 per cent price increase over five years, including an eight per cent increase in the first year, not only did they not raise their service prices after all, but will also hold these price levels right through to the end of 2019.
At that time, with continuing growth, they may be well-positioned to consider a price reduction, while still delivering on all their service commitments. That means, as a minimum, a price reduction in real terms of around ten per cent over the next five years! This is a great good news story and a sensational way to end our conference.
The RAAA membership has continued to grow in 2017. We continue the important work of advocating on behalf of the industry on issues ranging from education and training, airport security, 457 Visa Scheme Changes, CASA reform and individual member issues.
The RAAA would like to acknowledge our most recent new members: Oz Runways, Southpac Aerospace, RMIT Flight Training, Devonport Airport, Tasman Cargo Airlines, TracWare and Airflite.
For further information on any of the topics above, please contact the RAAA office at [email protected]
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