2 of 3 - Refer post 1645
WHICH FLIGHT TRAINING ORGANISATIONS CAN PARTICIPATE?
The cornerstone of this concept is the protection of the Australian Owned Sector of the Flight Training Industry. It is open to current Industry participants and is not intended to “ease” new entrants into the market. Therefore, it is eligible to existing Businesses only. Those Businesses must be able the demonstrate Intent to work towards the highest standards of Safety and Compliance.
There will be two different rates. A commercial rate to businesses such as my own, but a subsidised rate for aero clubs in regional areas.
HOW IS MY BUSINESS PROTECTED, IF I JOIN?
The Business remains its own “Business Entity” with regards to Ownership and all financial aspects. There is no change. We are only pooling our financial resources to engage Industry Leading Personnel to lead us and reduce the burden on us. Your Business continues to be branded as your own name. The Group name will be Australian Integrated Pilot Training. My own Business would become AIPT-Melbourne Flight Training.
All organisations including my own will pay 3 monthly in advance. You can withdraw at any time with three months’ notice,
You would be able to liaise with CASA to potentially continue your own AOC in the background for “peace of mind” should you elect to withdraw at some future date.
Our Businesses each remain 100% our Own Businesses.
The Profit and Loss of my AIPT will be open to all members within the group. There will be extremely high levels of transparency. The intention of this proposal is literally to support each other’s continued existence.
Fees increases will be capped at the highest of 5% per annum or CPI, whichever is higher, for a period of 5 years. My expectation is that the rates would actually decrease significantly once membership numbers reached required levels.
Any increases after that time require approval from at least 75% of Group members.
We will work collaboratively to design procedures to ensure all Parties meet regularly.
We will have a facility for input from the Membership base to ensure they are actively involved in Group Management.
All members irrespective of size have equal voting rights in situations where required.
CASA required Roles are now filled by Industry Leading Professionals and the Business Owner can get on with the function of running a Business.
It may be that some Business Owners who act in a CFI/HOO position may be able to Retire but still allow their Business to keep running as the CFI/HOO position does not necessarily need to be held by them.
The Accountable positions now fall outside of your Business, however there will be Contractual Obligations and a high level of support and oversight provided to the Group.
Continued Membership will be assured provided you act with intent to work towards the highest standards of Safety, Ethics, and Business Standards. We will work together to design mutually agreeable criteria.
BENEFITS TO THE BUSINESS OWNER
Decrease in Operating Costs- A proposed schedule of costs is attached. A Flight School Flying 4000 hours per annum would contribute $90,000 per annum. Considering that this is probably less than the Salary of your HOO alone, there can be no doubt that this is a cost effective option. It includes all manuals and procedures, Industry Leading Stakeholders and support. The responsibility for Key Stakeholder position such as HOO/HAAMC/Safety Manager will be managed centrally. Most Businesses will benefit with a reduction in Salaries of somewhere between $100,000 to $200,000 per annum. The cost savings will be Significant. Our Businesses will become more robust
Decreased workload to a more manageable size– In my own Flying School, I am trying to balance the Roles of HOO/HAAMC/ and Business Owner. Having less workload on myself will give me the opportunity to focus more of my resources on to maintaining my “Business”, which is of critical importance to me, and more so than ever in the current environment.
Increased Buying Power- A co-ordinated group of Flying Schools dealing as One, will have access to better costings on Fuel prices, Office Supplies, Telecommunications, Accountancy, Bookkeeping, Legal advice, Utilities etc. on a National scale, and on a more local geographic area, smaller operators may be able to pool maintenance facilities and offer support to each other in other ways.
Increased flexibility with deployment of Resources. Ability to temporarily transfer highly standardised staff between facilities to meet fluctuations in demand, or loss of Personnel due career progression. No long term commitment required regarding Salary costs. Sharing of highly standardised, fully inducted Instructors at relatively short notice when required. The opportunity to mentor and train junior Staff will be exceptional.
Increased Business Opportunities will become available as the Group will have access to Overseas Student Training approvals by way of CRICOS, as well as FEE HELP for Domestic Applicants. The Group can share marketing on International Opportunities. Together we could market appealing Flight Training in different Geographic areas. An RPL in one location, an IFR in another. Consider the capability of up to 20 Schools delivering highly standardised training between varying Geographic Locations across Australia. The Australian Owned Sector would now be able to seriously compete with our Internationally Owned Flight Training Organisations
Maintain your Business “Feel” Your Business will continue presenting the same way to your customers and will maintain its own feel. This is not your Business being taken over. This is your Business working collaboratively with like-minded Businesses to gain access to greater resources. Your Business remains entirely your own Business and does not require a name change. Your Business remains its own standalone Business.
Retaining Key Personnel is always of concern to Business Owners. In fact increasingly it is difficult to attract and retain Key Personnel and I only anticipate this becoming more challenging in the future. This approach will provide extremely high levels of Key Personnel redundancy. Many Businesses including my own, are heavily reliant on my own health. We gain access to Quality Personnel that an Organisation acting alone could not fund. The Key roles will have CASA approved Deputies. Further redundancy is provided by the experience of the Senior Base Pilots (predominantly ex-CFIs)
The Group sharing of Safety related information and resources has significant Safety Benefits to your Business. Traditionally Safety related information has moved vertically, but now we will have the Opportunity to share Safety information laterally between organisations.
Audits will be centrally managed. Many of the traditional “headaches” to the Business Owner can be moved off site, with the “on site” time requiring less of CASAs and the Businesses resources. The time allocated to face to face contact with the Regulator can be used more effectively.
A United Voice when dealing with CASA will make engagement more effective and potentially have more capability to engage. The Group will have the Business Owners forming a Committee. The Committee liaises with the CASA approved Key Personnel and the Power Team communicates to the Personnel via the respective Senior Base Pilot.
Change Management is a major challenge for Industry at present. We can address that more effectively in a collaborative manner.
Compliant manuals to the new regulations will be provided. These will facilitate your Transition to a Part 142 Organisation. The Cost of doing this alone will potentially save organisations significant financial resources. The cost of writing our new Part 61/141/142 manuals for my own Business has exceeded $100,000. These costs are only part of the costs associated with the Transition.
New Courses can be added. We have an extensive range of Approved Courses, and have the ability to add on more. You will gain access to a full range of Courses that you may not have been able to offer previously. With Support and appropriately qualified personnel you will have the opportunity to pursue new revenue streams.
Access to resources, not so easily available to individual Organisations, such as Legal Advice. Accounting Advice, Technology upgrades
BENEFITS TO CASA
Increased Safety Outcomes- The points below will provide a strong case for Improved Safety Outcomes,
Industry Leading Professionals, quite possible ex-CASA, Experts, heading up senior positions. This Power Team will be capable of engaging CASA in the highest Professional manner. They will be well networked and will have an appreciation of the Regulators expectations. They will be highly experienced and experts in their field. The calibre of these Personnel could not be attracted by an Organisation acting alone.
More efficient and effective engagement-The ability for CASA to deal primarily with one AOC Holder, rather than a wide ranging group of Individual Stakeholders can only improve Communication. Putting the “blame” argument completely to one side, for the sake of the “concept”. CASA is now in an impossible situation. A finite resource can only continue to be effective for a limited time. CASA needs results as much as Industry does. More streamlined communication is in everyone’s interest.
Increased sharing of Safety Information. This concept will provide unparalleled levels of lateral sharing of Safety Information. These levels of sharing are exceptional and can only be achieved by the Industry working collaboratively. AIPT will commit to providing the most well funded safety department of any flying school in Australia.
Improved Utilisation of Limited CASA resources-CASA is understandably resource stretched maintaining oversight of 250 different schools whilst meeting its other Industry obligations. If CASA Personnel could deal with one effective team of Key personnelinstead of 10, 20, or 30 different Schools there will be significant Productivity gains.
Increased Financial stability to AOC holders can only improve Safety Outcomes.
Experienced Staff to easily redeploy between Bases to address Experience and Oversight deficiencies. Resources can be shared. An experienced Aerobatics Instructor can be redeployed to upskill another Base etc.
A Positive public relations opportunity exists for CASA to work collaboratively with Industry in an innovative approach to improve Safety and Business Outcomes and arrest the failure of Australian Owned Businesses. An extremely attractive Opportunity for CASA to actually provide some very meaningful support to Industry.
Request formal CASA involvement.The Funding model will allow for the Group to meet 75% of the costs for a CASA Flight Operations Inspector or Similar to do a 12 Month placement with us, to ensure the System works to their Satisfaction. If CASA can work closely with the Members through the CASA approved Key Personnel, we can effectively design procedures that are Simple, Accountable, and Effective to the satisfaction of all Stakeholders.
A rigorous ‘Continuous Improvement Program will be implemented” throughout the Group. We will work collaboratively to high levels of Standardisation and improvement.
Test feedback can be captured across a broader range of candidates and that feedback can be directed back into improving Group Training.
Auditing will become significantly easier. The majority of the Auditing could be completed off site by way of Flight School Manager. It will reduce time spent on location. The time spent on location can now be used for more effective engagement.
WHAT INPUT WILL MEMBERS HAVE INTO TEAM OF KEY PERSONNEL
We will present you with what we refer to as a “POWER TEAM”. They will consist of an Industry Leading Head of Operations, an Industry Leading HAAMC, an Industry Leading Safety Manager, and an Industry Leading Audit and Quality Control Manager. That Team will have your confidence. If not, you are under no obligation to join.
As a Group we are offering Salary Packages unmatched in the Industry to date. This Package will ensure we can select the Leaders in their Respective Fields. I envisage the HOO being on a package in the range of $180K to $220K, with the other three roles Safety, HAAMC, and QA being in the range of $150K to $180K. On those packages, I am confident we can attract Industry Leaders. We have already shortlisted potential Applicants but will not commit until we can assure ourselves, we have the best Personnel available to achieve our goals.