4th April 2019 at 11.30AM
The meeting proceeded at 11.30 AM by way of a conference call.
Mr Peter White, the CASA Executive Manager who had been dealing with my matter appeared to cease his employment with CASA at about this time.
In attendance representing CASA was the Executive Manager Aviation Group Mr Graeme Crawford, and the Executive Manager of Regulatory Services and Surveillance, Mr Craig Martin. Also in attendance were two staff from my accountancy firm and two staff from APTA.
My note taking of this event is comprehensive. All four attendees took comprehensive quotes with emphasis on quotes made by the CASA personnel. The matters that would be attended to at that meeting would determine if I was to cease all operations that day or resolve this matter immediately. By now my home had been sold, my parents had spent their life savings and it was increasingly difficult to meet my payroll obligations. My families funds across three generations had simply run out. There were multiple attendees taking notes and recording statements and commitments. Those notes can be validated by four statutory declarations of the attendees.
At that meeting, CASA Executives Mr Martin and Mr Crawford individually gave me firm and repeated commitments that if I embedded the CASA suggested text, that was provided to me only two days earlier by CASA into the contracts, then the restrictions on the businesses ability to trade would be lifted. APTA would be promptly approved to continue operations and as CASA termed it, return to “business as usual” as it had been 6 months earlier. This commitment was made by both Mr Martin and Mr Crawford at that meeting. I emphasise that each of them gave me repeated assurances.
Mr Martin and Mr Crawford repeatedly confirmed that if I embed the suggested text into the contracts that all would be resolved. They confirmed that once the amended contract was returned the restrictions that had been in place for six months, would be lifted and confirmed that is the advice they had received from Mr Peter White. Mr Martin advised me to get the contracts to them as soon as possible. “Once signed and returned to CASA, we would be returning to business as usual”.
Mr Martin urged me to get the contract back as soon as possible, as that was “all we were waiting for”. His tone suggested that they were waiting on me, as they were. Although I had only received the text from CASA two days prior, after waiting a staggering 6 months with trading restrictions in place.
I advised Mr Martin and Mr Crawford that the completed contracts would be returned in the next day or two, we had only had the information supplied to us by CASA two days earlier.
My accountant queried as to why it had taken 6 months for CASA to provide the suggested text and lift the restrictions on the business. Mr Crawford advised my accountant that he didn’t have to explain CASAs position and that he didn’t have to talk to him because he was the accountant. It was obvious at that meeting that Mr Martin and Mr Crawford were unable to justify the unacceptable timelines and were not going to explain the reason that it took CASA 6 months to work out what it was that they wanted.
There was no doubt in my mind or my accountants that at the conclusion of that meeting CASA would lift the restrictions if I returned the contracts with the CASA guidance fully embedded, because those were the repeated assurances given to me at that meeting by Mr Martin, and Mr Crawford.
I did ask Mr Martin and Mr Crawford why APTA was required to have a contract when other operators doing the same thing did not have the contractual requirement placed on them. CASA advised that my operation was unlawful without contracts but would not explain why my flying school was being targeted, but others were permitted to do the same thing for at least the last 25 years, and I had been able to do it for the last 6 years.
I pointed out that CASA had held contracts for 18 months, before they sent that correspondence in October 2018, and asked why we were still dealing with this years later.
I explained very clearly the commercial impact on me, my family, the suppliers, customers, students, employees etc. Both men were already fully aware of the commercial impact on the business and the impact on my wellbeing. This was however reiterated at the meeting because, it was important to ensure both men were fully aware that this matter needed to be resolved promptly. Several businesses and their employees were depending on this matter being resolved. The business had now been unable to attract new business for 6 months.
My accountant again reiterated the commercial imperative. “We do not have much time”. “We need to get this done or we must wind up the business” “we need to try and make up the substantial lost ground”
Mr Martin said that Mr Whites email of April 2nd answered the accountants question. Mr Martin was answering in the affirmative. And kept referring to that email, assuring me that if I utilised the CASA suggested text, the restrictions would be lifted.
Whenever I tried to get an explanation, I was repeatedly met with “If you want to go back six months, well go back six months”.
Mr Martin assured me that once the contracts were signed, restrictions would be lifted.
Mr Martin advised that CASA could not approve new customers until the contracts were resolved. He advised that CASA was not permitting new customers to join because they were waiting to get contracts finalised.
I confirmed that regulatory tasks that had been on hold for 6 months would now proceed. These courses were APTA courses, both Mr Martin and Mr Crawford both advised that the tasks would proceed once the contract was back. He advised that tasks were put on hold because the APTA model may not be permitted.
Mr Martin read me document of April 2nd which is attached as Appendix C to reiterate that restrictions would soon be lifted based on Mr Whites advice.
I reiterated that I was prepared to put anything into the contracts that CASA required., and had been since October ,6 months earlier.
Mr Martin explained that APTA was unlawful without contracts, but advised it was “not a contract for CASA”. My accountant pointed out that in fact it was CASA wanting to become involved in the commercial contract between members, CASA was actually interfering in the contract, and particularly so if CASA was not prepared to be a signatory to their required contract. My accountant expressed his confusion ta CASA wanting to put matters of control and supervisory responsibility in commercial contracts.
Mr Martin confirmed that “CASA had perhaps given me incorrect advice”.
My accountant again sought a clear direction from Mr Martin, and highlighted the financial impact on the business, and that he was depending on a resolution, or he would be obligated to direct me to cease operations, as the businesses funds were by now exhausted and it was becoming increasingly difficult for the business to meet its obligations to suppliers and staff.
At this meeting Mr Craig Martin stated that his predecessor, Mr Peter White has seen the positive outcomes of APTA firsthand. This occurred on Saturday January 12th, 2019, when Mr Peter White visited the facilities.
This 6-month delay had come close to destroying the business. It was becoming obvious that I would need to approach my parents for further funding to avoid staff redundancies. I had been unable to take on any new customers for a period of 6 months, and the accountant was advising that I must cease operations, unless this matter could be immediately resolved.
To summarise this meeting Mr Craig Martin and Mr Graeme Crawford gave me very clear commitments, that if I embedded the CASA text, I could return to business as usual. On 9th April, CASA would not meet the commitments made at that meeting.
9th April 2019 at 7.33AM
I embeds fully all CASA suggestions into the contract as advised 4 days earlier, and six months after trading restrictions are in place. All Members are fully satisfied.
That contract is returned to CASA for review by Mr Peter White the CASA Executive Manager of Regulatory Services and Surveillance at the time, and my primary contact within CASA.
My reasonable expectation at this stage was that the business would soon be able to work towards repairing the enormous damage done. as usual as CASA had already assured me on so many previous occasions during the previous 6 months, and most recently by Mr Martin and Mr Crawford at the Accountants Office days earlier on April 4th.
9th April 2019 at 6.32PM
CASA has now received the finalised contracts from me and my members approximately 12 hours earlier. Peter White the CASA Executive Manager of Regulatory Services and Surveillance at the time, reviews the contracts and sends me an email titled
“I can confirm the content is acceptable to CASA”. Within the body of the email, it goes on to state.
“Dear Glen, I have reviewed the draft contract provided this date. I can confirm the content is acceptable to CASA. My appreciation to you and your staff for provision of same…….”
On receiving that email, I was overwhelmed. Finally after more than 6 months I thought it was over.. By now the business had been decimated and my parents had put in $300,000 of their own money to ensure I could avoid any staff redundancies over the previous 6 months that the trading restrictions had been in place. Many of my customers and staff had already left because of the previous 6 months uncertainty, and I had been unable to take on new customers or students for 6 months The accountant had very firmly advised me that this matter must be resolved immediately, or he would have to intervene. He would not permit continued operations now costing approximately $20,000 per week.
I have now had a commitment from the following three individuals that if I embed the CASA suggested text that I have waited 6 months for, my businesses MFT and APTA will be able to continue.
- CASA Executive Manager of the Aviation Group- Mr Graeme Crawford at my accountant’s office less than a week prior.
- CASA Executive Manager Regulatory Services and Surveillance- Mr Peter White via email
- CASA Acting Executive Manager Regulatory Services and Surveillance- Mr Craig Martin at my accountant’s office less than a week prior.
There is no doubt in my mind that this matter that has dragged on unnecessarily for 6 months will finally be resolved, and I can return to business as usual and try to repair the substantial damage that has been caused. The cashflow crisis on the business has now been continuing for 6 months, my parents funds are exhausted, as are mine, and the businesses is on the cusp of collapse.
This good news is to be short-lived.
9th April 2019 at 10.56PM.
Only hours later, after having there is yet another complete reversal and I am back at the start of the process again when CASA write back to me and ask, “can you hold off distributing for a day or two”.
The only two individuals within CASA that have more seniority than Mr White, Mr Martin and Mr Crawford are Mr Shane Carmody, the CEO of CASA and Mr Jonathan Aleck, the CASA Executive Manager of Legal, International and Regulatory Affairs. It is more likely that Mr Aleck was the decision maker of the reversal, as he is the Executive Manager responsible for these matters, although that is only my reasonable assumption, I have no evidence of that.
Something happened on the evening of Tuesday 9th April to lead to a complete reversal from CASA.
12th April 2019, (Friday)
CASA advise that they will contact me verbally over the weekend.
16th April 2019 (Tuesday)
CASA advise that they would like another teleconference.
17th April 2019 (Wednesday)
CASA advise that they have some “disappointing news”. The contracts were now not acceptable, CASA put a proposal to me that they would now pursue a different approach, although a new approval for interim operations would now be issued. It was the “interim approvals” that bought so much instability and uncertainty to the business. The matter was still not resolved, and another interim approval to operate is issued. Any remaining confidence in the APTA model and my flying school, MFT by customers and potential customers is now lost as they have been in “limbo” for 6 months already. Their reasonable expectation, as was mine, was that this matter should have been resolved long ago.
24th April 2019
I write to CASA raising my concerns. Attached as Appendix D
30th April 2019
CASA write to me advising that they have “now received the external legal advice and that it has confirmed, inter alia, that Part 141 certificate holder is
not “precluded from entering contractual arrangements with other parties to deliver flight training activities.
Interestingly this legal advice, that CASA received does not mention Part 142 Operations which are contracted checking and training and make up over 90% of APTAs revenue. I believe that CASA received legal advice on part 142 operations but chose to avoid mentioning Part 142 activities because these are clearly permitted and exactly what Part 142 is all about i.e. contracted checking and training. I have asked CASA to bring clarity to Part 142 operations on a number of occasions, but they choose not to answer this question. This new legal advice received 6 months later, differs very much to the assertion by CASA in October 2018 where Mr Alecks position was “The Ruling does not permit an AOC Holder to authorise a third-party body corporate to conduct operations under its AOC. This was Mr Alecks opinion and was later found incorrect by the Ombudsman in Stage One of his investigation, when the Ombudsman found; “As of October 2016, no Australian legislation prohibited “franchising of an AOC”.
This point is significant for the investigation by the Ombudsman office, because the Ombudsman is of the view that CASA took legal advice. I was advised by CASA that in fact at the time of CASA initiating their reversal of approval in October 2018, they had NOT received external legal advice. CASA advised me that they only sought external legal advice much later on, and in fact only received that external legal advice in April, which is 6 months after the restrictions were placed on the business. If that is the case, then the truth is that when CASA initiated their action, I was dealing only with the opinion of Mr Aleck.
In phase two of the Ombudsman investigation (not yet finalised) the Ombudsman was of the view that CASA had received external legal advice. I do not disagree that CASA did perhaps obtain legal advice, but I would question the timelines and what information CASA provided to the legal firm i.e., was it accurate? Based on the fact that the legal advice was only confirmed as received some time just prior to 30th April, (“
now received the external legal advice’) leads me to believe that in fact there was no prior external legal advice and confirms my view that I may have been dealing with a CASA employees’ opinion, and not any basis in law or safety. Mr White had also confirmed to me that there had been no prior external legal advice taken by CASA).
The matter should immediately have been resolved at this stage.
Despite this, CASA offer yet another short-term interim approval for APTA to operate, while CASA look at alternative options.
30th April 2019,
I advise CASA of the impact on my business and my health. Refer Appendix D. With the restrictions on the businesses ability to trade remaining in place, and the matter far from resolved, I will be unable to meet the upcoming payroll for my employees, and I have only two options.
Shut the business down or try and sell the business at a nominal value.
If I shut the operation, hundreds of student’s part way through their training would have been impacted, and many staff would have lost their jobs. Similarly, Suppliers would be impacted. Several businesses dependent on APTA had already been forced into closure because of the 6-month delay, and the several remaining businesses would also be forced into closure.
June 6th, 2019
CASA CEO Mr Carmody sends me correspondence “…
To be absolutely clear, if CASA does not have the evidence we require i.e. contracts, in hand by 1st July 2019, we will have no choice but to consider what further action we may need to take in relation to the flight training operations in which APTA and its affiliates are engaging.”