Article from an old copy of the ANU Reporter (the uni rag) is interesting on this topic.
Article by Shelly Simonds on deregulation and refering to studies done by ANU Prof. John Hopkins, Dec '97 (ah the good ol' days).
"The problems revealed in the Monarch and Seaview air disasters still persist and the Civil Aviation Safety Authority doesn't seem to be able to deal with them," said Prof Hopkins.
The deregulation of the labour market for pilots is one major problem, he said. After a series of unsuccessful strikes, the number of salaried pilots has dropped and an increasing number are working as casuals for small operators.
"Casualisation makes it hard for pilots because if they're worried about safety and refuse to fly a plane, they won't get paid," said Prof Hopkins.
Another result of the deregulated employment market for pilots was increased competition for piloting experience. Pilots desperate to build up hours in the air, were willing to serve as co-pilots for Monarch without pay, a Senate inquiry into the Monarch crash was told.
"The chaotic nature of the deregulated labour market for pilots was a contributing factor to the Monarch crash," said Prof Hopkins.
Deregulation also coincided with a reduction of safety regulatory staff. The number of government air worthiness inspectors dropped from 350 in 1991 to 159 for 1996_97.
To compensate for the staffing shortfall, airlines have been given greater responsibility for inspecting safety standards in their aircraft. But penalties for failure to comply with standards have not increased accordingly, said Prof Hopkins.
"In a deregulated environment with fewer inspectors, at the very least you need more dire penalties for those who abuse the system."