Insurance deal to cut aviation costs

Regional aviation has scored a crucial win, with costs to be reined in following an insurance agreement for flight examiners.

Regional aviation operators had said commercial ­insurance coverage was “simply not adequate and is an increased cost to industry”.

Regional aviation has scored a crucial win, with costs to be reined in following an insurance agreement for flight examiners.

Infrastructure and Transport Minister ­Michael McCormack yesterday told a general aviation summit that flight examiners could receive indemnity protection from the Civil Aviation Safety Authority to “help retain experienced industry flight-testing personnel working in regional areas”.

“I know this has been an issue that industry have been keen to see a resolution on and am glad that today we can announce the good news,” he told the meeting in the southern NSW city of Wagga.

The move came after agricultural aircraft operators had warned of a “disastrous impact”, including exacerbating the pilot shortage, without the CASA indemnity, while regional aviation operators had said commercial ­insurance coverage was “simply not adequate and is an increased cost to industry”.

CASA had been indemnifying “delegated” people doing flight tests of crew since 1991. But new rules meant that these “approved testing officers” needed a “flight examiner rating” by August 31, which many have already done. As those who made the transition are no longer considered CASA industry “delegates”, they effectively lost the CASA indemnity.

Mr McCormack told more than 30 general aviation groups at the summit that “the issues surrounding indemnity insurance for our flight examiners have been ­resolved”.

From September 1, “CASA indemnification will be provided to all flight examiner rating-holders and will continue for approved testing officers”.

The announcement came after a review of indemnity arrangements for delegates had been reviewed by the Department of Infrastructure, Regional Development and Cities, ­assisted by CASA and the ­Finance Department.

The president of the Aircraft Owners and Pilots Association of Australia, Aminta Hennessy, said there was “already a shortage creeping in” among flight examiners as “a number of people” had not made the transition in the new rules.

Ms Hennessy, who was the first Australian woman to fly solo across the Atlantic in 1978, said that taking out private insurance cost a lot of money.

Leaders from major aviation groups are in Wagga to convince the government to make legislative changes to ease the cost of complying with what they consider excessive and costly red tape.

The summit’s chairman, former Regional Express managing director Geoff Breust, said concerns included over-complex regulation, costs, pilot shortages and “real issues” in getting ­licensed engineers.

Earlier this year, The Australian revealed businessman and aviator Dick Smith had secured support from then deputy prime minister Barnaby Joyce and opposition transport spokesman Anthony Albanese for a rewrite of the Civil Aviation Act. However, the deal died with Mr Joyce’s resignation from the position.

Mr McCormack said he wanted to do what he could to support the industry but any change had to pass through parliament.