Australia’s aviation regulator is investigating corporate dysfunction at Nauru Airlines

The problems inside Nauru Airlines, which oddly enough is headquartered in Brisbane, are a major source of concern

AIRLINE DRAMA

Australia’s aviation regulator is investigating alarming allegations that a dysfunctional corporate culture is undermining the operations of Nauru Airlines.

The problems inside the carrier, which oddly enough is headquartered in Brisbane, are a major source of concern for the Federal Government, which accounts for about a quarter of its turnover as a result of the detention centre on the island.

The current contract is up for renewal next month.

City Beat has learned that recently-departed airline CEO Peter Sheehan, safety systems manager Brian Douglas and the chief pilot jointly wrote to CASA in May alleging breaches of the Civil Aviation Act with regard to clear and accountable decision making inside the organisation.

Trevor Jensen

The letter claimed chairman Trevor Jensen (illustrated) had not allowed the CEO to do his job properly and presided over a toxic workplace environment where staff have been bullied, abused and are fearful of speaking up.

Sheehan went on indefinite leave in May, just a day after the letter was dispatched to CASA, and he has now retained lawyers to protect his interests.

Jensen denied any wrongdoing yesterday as it emerged that CASA had kicked off an audit of the airline this week.

“We cannot discuss internal staff issues, however can state categorically that our company is operated with good governance and with the highest levels of integrity,’’ Jensen said.

Following Sheehan’s exit, Jensen announced that he would take over the CEO’s role while still remaining chairman, avoiding a recruitment campaign for a replacement.

Jensen, a former Ansett staffer with multiple short stints at airlines around the world, was appointed in January last year and tapped a new bloke as CEO the following month.

That gent lasted only four months in the top job before Sheehan got the unadvertised gig. Sheehan started in July last year after Jensen lavished praise on him and his more than 20 years in the aviation game.

“We have huge potential in this airline and the board and I are confident that Peter Sheehan is the ideal candidate to help us achieve our vision for Nauru Airlines,’’ Jensen said at the time.

INDUSTRY CHATTER

Jensen has also presided over a long list of other employees who variously quit or were fired at Nauru Airlines, a track record which has sparked plenty of chatter among industry players.

At the same time, there have been at least four new positions created for people understood to be long-time associates of Jensen.

Two of these positions are well-paid consulting jobs that were not advertised. They were filled by executives who had just completed audit reports that recommended the creation of those very same jobs!

Another role is believed to have been created for a woman in Asia, who has relocated to the Brisbane office.

Eyebrows have also been raised over a series of overseas trips and questionable spending, including an exploration of Singapore nightclubs for a business venture.

Never mind that Nauru Airlines doesn’t fly anywhere near that city!

Additionally, it’s understood that the carrier spent more than $800,000 on a second-rate software system without seeking expressions of interest.

All this upheaval appears to be affecting the bottom line, with Sheehan’s forecast profit now tipped to become a multimillion-dollar loss this year.

That follows a recent $10 million injection from the Nauru government, which has been made aware of the letter to CASA.

There’s speculation the drama may affect the political aspirations of David Adeang, the justice minister in Nauru.

Sheehan, Douglas and CASA all declined to comment.