Please find a document below those outlines the restrictions that CASA placed on the business, and their impact. I feel somewhat that the implications of the trading restrictions on the business are not being given the appropriate consideration in this matter. They were not proportionate, not necessary, and Mr Aleck was not compelled to make the decisions he made. These restrictions were unnecessary and had no basis in law or CASA procedures. A face to face well intentioned discussion of less that 3 hours duration could have had this entire fiasco avoided. It really could have been that simple, if all Parties were genuinely acting with good intent.
Consider that CASA provided short term “interim approvals to operate” in accordance with the timelines below. No education provider, or in fact any business could continue to operate in any industry with such limited surety of operations.
23/10/18 7 days surety of operations.
30/10/18 to 12/02/19 No surety of operations. Awaiting CASA determination.
12/02/19 to 13/05/19 Interim Approval expiring midnight 13/05/19.
03/05/19 to 01/07/19 Extension of Interim Approval to midnight 01/07/19.(Company transferred just prior to expiry of this final interim approval, the CASA CEO led me to believe that there would be no more extensions,
It is important to appreciate the impact of these interim approvals on the business. Had those restrictions In October 2018, after twelve years of operation, and 18 months after CASA had revalidated APTA to continue to provide multi base operations, CASA writes to me and advises that I have 7 days certainty of operations, that I am operating unlawfully, and subject to regulatory action.
CASA also placed an Administrative “freeze” on all pending regulatory tasks. I was unable to process applications. The impact of this was significant. I had a number of projects that were essential to operations and CASA would not process, these included freezes on CASA processing applications for Key Personnel that were essential to increasing oversight and control to prepare for anticipated growth of the Organisation.
Refusal to process additional courses to be added. These were courses that we were fully entitled to add on to our capability.
A new flight simulator laying idle for many months, as CASA would not process the application for its approval until the matter of contracts was resolved.
This was very clearly a variation of an AOC, and a very significant one i.e. short term interim approval to operate, and a freeze applied on all regulatory tasks. The CASA Enforcement Manual clearly outlines the procedures that should have been followed. by CASA. These procedures are outlined in CASA manuals to ensure compliance with administrative law, natural justice, and procedural fairness. These procedures were completely bypassed in CASAs’ dealing with me on these matters. CASA have a particular format for a Show Cause Notice (SCN). None was ever issued. This was one of the many breaches of procedures that should have been followed when varying my AOC. This document also outlines CASAs Regulatory Philosophy. In CASA dealings with me they demonstrated a flagrant disregard for the obligations placed on them to act professionally.
Enforcement Manual (casa.gov.au)
For clarity, CASA initially advised me that they were going to close down the business and that what I was doing was unlawful.
The impact is immediate:
· First and foremost, enormous reputational damage is done to me personally and immediately. Until this point in time, I have been of the view that CASA is supportive of APTA. They helped me design the systems, assessed the systems, approved the systems, audited the systems and in fact recommended APTA to flying schools. I have led customers to believe that APTA is fully CASA approved, as it is. The notice that APTA has as little as 7 days to continue operating brings enormous harm to the businesses, staff, customers, students and suppliers that are dependent on the APTA. Those people depending on me, understandably have concerns that I have involved them in something that is not CASA approved. The implications on those entities are significant.
· The flying schools are no longer able to enrol students. Courses for the Commercial Pilot Licence which comprise 95% of the business’s revenue, typically take 18 months. This CASA action occurred at the very time the business attracts new students considering their options after finishing High School. No person will enrol in a school with CASA action pending and only 7 days surety of operations.
· My own flying school Melbourne Flight Training that I have been operating for 12 years has suddenly been declared an unauthorised operation by CASA, and I have been advised that I will most likely be subject to regulatory action. This is simply ridiculous. My school operates in exactly the same awy it has for more than a decade. This action is inexplicable. Multiple requests to CASA to have this explained have not been answered. This cannot possibly be justified.
· The parent Company APTA is unable to attract new flying schools to join. CASA has determined that the model is now unlawful. The structure costs approximately $1,000,000 per annum to run, and is dependent on ten contributing members. I have members wanting to join, but CASA refuses to process new applications. Customers waiting to join have their confidence in APTA impacted as they are placed on hold. Bases that CASA has previously approved will have their approvals reversed.
· The entire reputation and credibility of APTA and me, are immediately called into question. I have a number of Entities that are wholly dependent on APTA for their continued operation. The initial correspondence from CASA leads me to believe that CASA is not only refusing previous approvals but reversing existing approvals i.e. my own flying school of more than a decade has suddenly been declared an “unauthorised operation” and CASA advises “if APTA has facilitated these Companies operating in contravention of the above provisions, it would be a party to such contraventions.” It was simply ludicrous that my own school could be deemed an unauthorised operation. My initial written response is attached as Appendix A
· Existing APTA members who have previously been approved by CASA have now had their approvals reversed. By joining APTA, they now have a situation that their continuing operations are wholly dependent on APTAs approval that has now been cut back to 7 days I the future. The CASA correspondence leaves little doubt that it is more likely than not, that APTA will be closed down, with that, their own businesses will be forced into closure. The
· Existing students in the flying schools become concerned. They have commenced their training, and now their education provider has only 7 days certainty of operations. Understandably they consider options at other Registered Training Organisations (RTO) for the balance of their training. APTA/MFT had been a Registered Training Organisation RTO 22508 with an impeccable audit history, and the highest levels of compliance. An obligation on me as the owner of that RTO and the responsible person, is that I do not enrol students into a course that I may not be able to deliver.
· The business is seeking to add new talent to the Organisation in preparation for projected growth. I am unable to enter into employment contracts with new staff. A recent course of graduates with an expectation of employment on graduation have now lost that opportunity.
· CASA has placed an administrative freeze on all regulatory tasks. I have applications with CASA for the addition of new Key personnel, addition of new flight simulators, and new courses needing to be added to cater for business demands. All of these projects grind to a halt. The impact on the business is substantial. CASA should not have placed these tasks on hold, as they were essential for the business, essential to increase oversight, and essential to increase quality outcomes.
· Existing staff become concerned about the security of their respective livelihoods. Their employer has been given only 7 days’ notice of continuity of operations. Many of these employees have been with me since I opened the business more than a decade ago. Whilst CASA did issue several short-term approvals, the staff become increasingly concerned. They know that cashflow has been impacted, and that new students are not signing up. Obviously, they become concerned for their future.
· As a Registered Training Organisation, I have legal obligations on me, not to enrol students if I cannot deliver a course of training.
· International Students planning to move to Australia to train with the Organisation, have to be contacted and told to put their plans on hold. This alone creates an enormous amount of instability.
· Suppliers that I have long established relationships with are impacted. Without any notification at all, and no time to plan, CASA has provided me only 7 days surety of operations. Throughout the process, I believed at all times that this matter could have been promptly resolved, as it could have been. The Suppliers gave me short term support, but like me, they did not expect this matter to drag on for a staggering 8 months.