CIVIL AVIATION ORDERS
PART 20
SECTION 20.6
Issue 4
CONTINUATION OF FLIGHT BY MULTI-ENGINE
AIRCRAFT WITH 1 OR MORE ENGINES INOPERATIVE
SUBSECTIONS
2 Application
3 Requirements
2 APPLICATION
This section applies to all Australian aircraft.
3 REQUIREMENTS
3.1 When an engine of an aircraft fails in flight or where the rotation of an engine of an aircraft is stopped in flight as a precautionary measure to prevent possible damage, the pilot in command shall notify the nearest Air Traffic Services Unit immediately, giving all relevant information and stating the action he or she intends to take in regard to the conduct of the flight.
3.2 The pilot in command of a multi-engine aircraft in which 1 engine fails or the rotation thereof is stopped, may proceed to an aerodrome of his or her selection instead of the nearest suitable aerodrome if, upon consideration of all relevant factors, he or she deems such action to be safe and operationally acceptable. These factors shall include the following:
(a) nature of the malfunctioning and the possible mechanical difficulties which may be encountered if the flight is continued;
(b) availability of the inoperative engine to be used;
(c) altitude, aircraft weight, and usable fuel at the time of engine stoppage;
(d) distance to be flown coupled with the performance availability should another engine fail;
(e) relative characteristics of aerodromes available for landing;
(f) weather conditions en route and at possible landing points;
(g) air traffic congestion;
(h) type of terrain;
(i) familiarity of the pilot with the aerodrome to be used.
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Read into that what you will. As long as you can justify your decision at the inquiry.
PS...this ANO/CAO has been around for years!