Its about finances and Pel-Air:
SOLOMON AIRLINES HAS A NEW CEO - Islandsun Daily News
SOLOMON AIRLINES HAS A NEW CEO
SOLOMON AIRLINES has a new Chief Executive Officer (CEO), but John McCormick’s appointment could be short-lived.
It is believed the Board of Solomon Airlines decided on the appointment on 01 June (Wednesday last week). It subsequently recommended the appointment to the Minister of Finance and Treasury, Hon Snyder Rini, who has reportedly endorsed the appointment.
It is understood Mr McCormick has been offered a contract. Mr McCormick was Australia’s Civil Aviation and Safety Authority’s (CASA) Director of Aviation Safety.
But the appointment could be short-lived because of Mr McCormick’s past.
According to published report, McCormick withheld crucial information about the crash of a Pel-Air plane near Norfolk Island. Nine people lost their lives in the crash.
In a Senate Committee investigation, “far more serious issues were raised about McCormick’s conduct and actions in withholding from the Australian Transport and Safety Board (ATSB) a document of material importance when it was making its supposedly independent inquiry in the Pel-Air crash near Norfolk Island in 2009.”
But the Senate Committee subsequently discovered the document under its own investigations. The crucial document “suppressed by CASA … was a review of its actions in relation to the Pel-Air crash that was ordered by McCormick.”
“In that ‘Chambers review’ CASA’s incompetence and lack of oversight in relation to Pel-Air was exposed, yet hidden from the notice of the Australian Transport and Safety Board (ATSB) contrary to the provisions of the Transport Safety Investigations Act, raising the question, as yet unanswered, as to whether McCormick had committed an offence under the Act.
“In testimony before the Senate Committee when he was confronted with the document, McCormick both admits and apologises for his action,” the report said.
McCormick reportedly resigned as a result of his role in the botched investigation.
“The Chambers review document makes the point that had CASA done its job properly the Pel-Air crash might never have occurred. The suppression of that document, and the shabby quality of the ATSB report into the crash, has raised doubts as to the integrity and professionalism and direction of the ATSB, with the Senate Committee detailing what they considered the unsatisfactory testimony given to it by the ATSB chief commissioner Martin Dolan,” the report said.
It is understood that the Board may have ignored advice it was given on the process of appointing a new CEO. It is also understood that the Civil Aviation Authority of Solomon Islands has written to the Board, opposing McCormick’s appointment because of his past.
When contacted last night, incumbent CEO Ron Sumsum said the appointment of a new CEO for the Airlines is a matter for the Board.
“I have made it clear to the Board as far back as last year that I am leaving anyway. Who the Board appoints is its business but I would like to see that Solomon Airlines is left in a clean hand when I leave,” Capt. Sumsum said.
Meanwhile Solomon Airlines has lifted the stand down of its operations. Its first international flight to Brisbane left last night.
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SOLAIR FLIGHTS HALT - Solomon Airlines stand down operations from 10am today - Islandsun Daily News
SOLAIR FLIGHTS HALT – SOLOMON AIRLINES STAND DOWN OPERATIONS FROM 10AM TODAY
SOLOMON AIRLINES has taken the unprecedented steps of suspending its operations “until further notice” in a move to force its stakeholders to urgently address the Airline’s financial predicament.
The suspension – the second since 2008 over a similar situation – means there will be no domestic or international flights in and out of Honiara until safety and financial issues facing the Airlines are dealt with.
Chief Executive Officer, Captain Ron Sumsum, announced the decision after a meeting with Prime Minister, Manasseh Sogavare, in Honiara yesterday afternoon.
Prime Minister Sogavare immediately convened an urgent meeting with his Finance Minister, Snyder Rini and Civil Aviation and Communications Minister, Peter Shannel, to discuss the Airline’s situation.
The outcome of the meeting was not immediately known.
A government official later quoted the Permanent Secretary of the Ministry of Civil Aviation and Communications, Moses Virivolomo, as saying the issue of pilots exceeding their regulated flying hours had been resolved.
“Solomon Airlines would be back in service tomorrow,” Mr Virivolomo was quoted as saying.
But Capt Sumsum, who briefed his staff on the situation yesterday afternoon, said no aircraft is flying “until I have received assurance in writing that the issues which contributed to the suspension are being addressed immediately”.
Capt Sumsum said the situation was forced on the Airlines by the stakeholders, who he said, had turned a blind eye on the airlines’ financial woes.
“It’s a very small problem, which could have been resolved a long time ago. The problem is that no one wants to deal with it,” he said.
In a prepared letter for the “urgent attention” of the Chairman and Board of Directors of Solomon Airlines, Capt Sumsum wrote:
“The reasons behind the necessity to take this action are manifold but are primarily due to the failure of stakeholders to reach satisfactory and timely arrangements to address the financial position of the airline which include;
Creditor Payments;
A resolution to the IRD audit assessment including penalties which is preventing any dialogue with lending institutions; and
Payment of student return tickets
It is understood the Government owes Solomon Airlines about $12 million, which include students’ return tickets.
“The safety risks to the airline increases exponentially with inaction and cannot be allowed to continue while the airline is under this prolonged state of duress. The company financial position has resulted in the airline not being able to take delivery of the Dash 8 aircraft on completion of its major servicing,” Capt Sumsum said.
“As a result, the airline has been forced to add extra flights to the Twin Otter operation to attempt to address the shortcoming. Twin Otter pilots are now operating beyond their safe (and CAASI regulated) limitations. Fatigue among airline domestic crews is currently running at high levels which have a deleterious effect on safety.
“Aircraft spare parts suppliers are now refusing to supply the airline with components required to safely maintain the aircraft because accounts are not being paid.”
Capt Sumsum said the situation was pointed out to the Board at its meeting on 15 April 2016, “that I, as the Accountable Manager, could not allow the airline to continue to operate under this continued, increasing, level of duress”.
“In hindsight, the decision to suspend operations could have been made by me as CEO earlier, but I relied and hoped to achieve more positive outcomes from the stakeholders,” he said.
“The responsibilities and authority of the CEO under CAASI rules require that the holder of an Air Operator Certificate (AOC) shall, on becoming aware of any condition that is a hazard to safe operations, restrict or suspend operations as necessary until the hazard is removed.
“Please be advised that as of 10am, Monday 6 June 2016 and acting in accordance with the provisions of CAASI rules 121.97, 125.83 and 135.83, I hereby give 24 hours’ notice of intent to suspend operations of Solomon Airlines until further notice, effective from 10 AM, Tuesday, 7 June 2016.”
He said other issues pale into insignificance when compared to the airline’s financial position.
“These issues – non response to my letter of 5 November 2015 containing serious industry regulatory allegations; the integrity of Board appointments and the processes being followed of late strike at the very fabric and intent of the SOE Act of 2007 and Regulations of 2010 – still have a bearing on the decision processes and cannot remain unaddressed.
“In conclusion, I require an official written response to this notification prior to 10 AM Tuesday 7 June 2016,” he said.