2) Subregulation (1) does not apply to a dog accompanying a visually impaired or hearing impaired person as a guide or an assistant if the dog is:
(a) carried in the passenger cabin of the aircraft; and
(b) placed on a moisture-absorbent mat as near to the person as practicable; and
(c) restrained in a way that will prevent the dog from moving from the mat.
I am no aviation lawyer but it seems the main criteria from this reg, is keeping the dog on the mat. Not keeping it from becoming a projectile.
Now some food for thought, "restrained in a way" no where does this reg say physically restrained. What about "SIT", "STAY"? A well trained dog will not deviate from a command under any circumstances.
Having said all that, cheers to the Captain cause if it's in the company ops manual our hands are tied!!
I think I have rambled enough now, off to the bar.