Question 1: Would the subsidisation by Angel Flight Australia of the cost of the fuel I consume during a flight arranged by them constitute a “reward” in CASA’s opinion?
Answer 1: CASA does not generally answer questions about other operator’s affairs or other operations. However, CASA can provide a general answer to your question. If a third party provides, dependent on all the circumstances of the arrangement, monies to a pilot to cover some or all of their operating costs to conduct the flight, CASA would generally regard that as the receipt of a reward by the pilot. Prior to 2 December 2021, that arrangement would generally have been regarded as a private operation under CAR 2(7)(d)(v) as the carriage of persons without a charge for the carriage. Section 7AA of
CASA EX82/21 – Part 119 of CASR – Supplementary Exemptions and Directions Instrument 2021, continued that position until 24 December 2022. CASR 119.010(2)(d) was also recently inserted, which provides (d) an operation, conducted using an aeroplane or rotorcraft, of a kind prescribed by the Part 119 Manual of Standards for the purposes of this paragraph, is not an Australian air transport operation.
Question 2: If the answer to question 1 is ‘yes’, and the outcome of the subsidisation is that I end up paying an amount of the “direct costs” of the flight that is less than the amount that would be paid by each person if the direct costs were evenly divided by all persons on board, is the flight an “air transport operation”?
Answer 2: An air transport operation is not determined by whether the reward would be more or less than the amount than would be paid by a person if the costs were evenly divided by all persons on board. The cost sharing provisions, which have already been explained, also operate according to its own terms.
Question 3: If the answer to question 1 is ‘yes’, and the outcome of the subsidisation is that I end up paying an amount of the ‘direct costs’ of the flight that is at least equal to the amount that would be paid by each person if the direct costs were evenly divided by all persons on board, is the flight an “air transport operation”?
Answer 3: See previous answer.
Question 4: If the answer to question 2 is different from the answer to question 3, how do the differing ratios of “direct costs” of the flight paid by me alter the objective risks of the flight?
Answer 4: See previous answer.
Question 5: Assume instead that I purchase, and am, as an individual, the registered operator of, an aircraft with a maximum seat configuration of 9. A mate of mine and I, as an act of pure charity, utilise the aircraft to conduct twice-daily flights from country town A to city B and back, on which flights any member of the public may fly as passengers (along with me) for free. We advertise the flights. The passengers (other than me) do not pay anyone anything in relation to the flights. I bear the entire costs of the flights. My mate pays nothing to participate and is paid nothing for being PIC. Are the flights described in that scenario an “air transport operation”?
Amswer 5: No. Assuming the pilot receives no payment for the flight, the flights are a private operation because they are not conducted for hire or reward.
Question 6: If the answer to question 5 is ‘no’, may the holder of a private pilot licence be the PIC of the aircraft (provided the pilot has a rating for the aircraft)?
Answer 6: Yes, as the operation is a private operation.