Business Issues ADSB (Now: Completely Off Topic Thread!)
I have followed the ADSB debate with interest and not commented on the technical aspects. However, in a previous thread, Max1 has raised some interesting business issues which should be considered.
I suggest there are some givens
·Most seem to agree that ADSB is the way of the future
·There are concerns re transition, the “subsidy” and removal of en-route SSRs and some navaids.
I don’t propose to address the above.
Airservices is a corporate entity which operates under its own Act but remains subject to other legislation covering such government owned enterprises.
Some may remember in the 1990s, Airservices was taken to court and lost a case addressing its “network pricing model”. The decision was specific on what Airservices could and could not charge for. It was found (if I remember correctly) that it could only charge for specific services provided and could not de facto cross subsidise operations.
As a business it is legitimate for Airservices to make provision in its accounts for the depreciation of its assets.
Given the above I suggest that before it commits itself to the ADSB proposal, the general aviation community should write to Airservices, the Department of Infrastructure and CASA asking the following questions
·Does Airservices have the authority under its Act to make subsidy payments to general aviation for the fitment of the necessary ADSB equipment ? Has this been confirmed ? If so, by whom ?
·Does Airservices need Department of Finance approval to make such subsidy payments ? If so, have these approvals been sought and given ?
·Is Treasury approval required ? If so, has it been sought and given ?
·Has an opinion been sought from the ATO on the tax treatment of such a payment ? If so, what was their advice ?
·Has there been a formal sign off by Qantas, Virgin Blue and other major air navigation charges contributors on the subsidy issue ? Has this issue been approved by such entities at the corporate level ?
oIt may be that while the proposal has enthusiastic support from operational areas, senior executives may support the cost savings from ADSB but consider that these savings should be directly aligned to those who have made the payments. They might see the fitment of ADSB equipment to the general aviation fleet as a legitimate participation cost that should be borne directly by aircraft owners.
The above were not fully addressed in the Consultation Paper. Only when these facts are established can the general aviation community make an informed decision of whether to support the ADSB proposal. The worst possible case would be for CASA to mandate fitment (as they are now requested to do) only to find that the subsidy payment is not possible and that general aviation operators are locked into paying for the equipment themselves.
It is reasonable to assume that Airservices is already aware of these issues. Perhaps they can share their knowledge with us ?