Why would it be nearly impossible polictically for CASA to ban them for a period?
EU did it, and i recall USA also banned Garuda for a period?
Well the FAA have clout, CASA doesn't. How was it that Garuda was banned in the US and EU but not Australia?
Just have a look at what happened to the beef trade a few years ago when the regulator caved into the bleeding hearts.
It would play out along the lines of:
-Airline gets banned.
-They then lobby their government who lobby the Australian foreign minister who calls the head of CASA directly
-Their own government could retaliate against VH registered airlines
-The airline also lobby Airservices Australia/Airports/Tourism Council who have lost revenue who in turn lobby the government
-They lobby the ACCC saying it's anti competitive.
-The airline then leaks embarrassing incidents/accidents that have happened to Australian Airlines or other established carriers to friendly newspaper
-They play the racist card in the papers.
-If the airline has a training school here they put the wind up the local member by threatening to shut it down and costing X local jobs etc
CASA then have to front uo to a Senate Inquiry into why they grounded XYZ airline and have all their processes and decisions put under the microscope.
So it's easier to just let them in and if they crash blame it on the airline and or the pilots.