The concern related to the ongoing safety of an International Airline due to significant management changes within a relatively short time frame.
The reporter has expressed a safety concern relating to the safety of the operator as significant changes to the management structure and staff has occurred since the last IATA Operational Safety Audit (IOSA) occurred.
The reporter has advised that since the last IOSA audit:
at least five senior managers have left the organisation including the:
- Part 141 Training Manager,
- Commercial Manager,
- Human Resources Manager,
- Safety Systems Manager and
- Corporate Quality & Safety Manager
- The Executive Manager of Cargo has been reassigned
- 10% of staff members have been informed they will be retrenched
- Contractors have been asked to take a 30 - 50 % rate cut
- Japan’s CAB [Civil Aviation Bureau] has placed restrictions on the airline’s continued operations into Japan.
As significant changes have occurred can the operator guarantee that the safety of the airline has not been affected and that an IOSA is scheduled to occur to guarantee these changes have not affected safety?
Safety management in our airline is a corner stone in our corporate culture. Safety management it is given the highest priority and is granted all resources required.
We therefore are greatly concerned at this report, which is not supported by facts, being forward to you. We can only assume that it has been done so by a person or persons with possible personal agendas.
This may not be the first time that you have seen examples of this type of reporting concerning airlines, during periods of change. I trust you will test the credibility of this report in the same light.
I can confirm that there have been some changes in senior roles within the company.
These have been all due to valid and legitimate reasons, such as the ending of expat contracts, and the resignation of staff for personal reasons.
Some roles have even been expanded, for example the human resources role is now classified as a general manager.
The 10% staff cuts referred to are a board approved business decision or target designed to meet international best practice in staff to aircraft ratios. It is part of a normal business practices.
The cost of contractors was also reviewed as part of normal business practices. All contractors wishing to provide services to the airline have been asked to meet the market in their charge out rates. I can confirm as a result of this review we continue to be able to attract the required number of contractors, to meet all its operational needs.
We comply with all the rules and regulations of the Sovereign State, as well as meeting all its international regulatory obligations.
We passed an IATA Audit and are a registered as an IOSA Operator. This registration is valid until the next audit due in October 2015.
We are also one of the only GOLD Standard BARS operators in the region.
Japan's CAD has responded to the Serious Safety Concern raised against the regulator by ICAO, not our airline. They have not changed or cancelled any approvals that they have issued us, and so in no way limit our current operations to and from Japan.
Organisational Structural changes associated with the Air Operator Certificate (AOC) issued by the Authority is subject to acceptance by the Director to ensure that the structure reflects the operational activity being undertaken under the certificate.
We carry out our oversights of the operator in the area of Training, Maintenance, Design and Air operations and provides the findings to the operator to be rectified.
The Authority is currently satisfied with the current Part 141 Training Manager, the newly appointed Corporate Quality and Safety Manager including the actions taken by the operator in respect to the Cargo section.
The restrictions placed by Japan CAB on the operator’s continued operations into Japan is a result of the ICAO Significant Safety Concern (SSC).
In order to ensure the safe operation of foreign airlines in Japan, JCAB's policy relating to air carriers of the country to which ICAO raised SSC, is that they would not issue permission to a new air carrier and it would not approve the new routes, the increase of the services, or the change of aircraft type by operators which has already served routes to and from Japan. Such restrictions would be lifted when ICAO determined that the SSC is resolved.
I advise that the ICAO SSC raised has been successfully resolved and the JCAB have been formally informed.
CASA has reviewed the concerns reported in the REPCON and is aware of the management changes and the matters advised in the operator’s response. CASA will continue to monitor the airline's activity in relation to their operations in Australian territory.