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-   -   AOC or not? (https://www.pprune.org/pacific-general-aviation-questions/613940-aoc-not.html)

longrass 1st Oct 2018 21:01

AOC or not?
 
Morning gents,

My business has just won a contract out in Arnhem Land. I’m led to believe that I can transport my own staff out to the job site and back, whilst being paid (my own wages) and it’s classified as private ops. Correct me if I’m wrong.

The confusing bit for me, is that I’m hiring the aircraft on an hourly rate from another company. Does that change things?

Next issue is, another contractor has approached me to fly his staff to the same community. How can I achieve this without requiring an AOC. The most logical answer for this would be for him to hire the aircraft from the hirer and I then fly it for free.

I approached CASA yesterday with this and was told, “we can’t give legal advice, it’s up to the courts to determine if we were ever to catch you, not that we are saying it’s right or wrong”

Lapon 1st Oct 2018 21:17

Just my opinion (having been in your position years ago): Neither option really fits the criteria of a 'cost sharing' flight but unless you bend the aircraft in a high profile manner I doubt anyone is going to notice or care.
The later case you mention with the other contractor could get tricky of you have an accident and that contractor goes after compensation from someone as the someone will probably be yourself.

Legitamicy aside, I've completed such flights as a PPL years ago and I personally wouldnt worry about CASA, as you have already found they cant even give you an answer themselves. Just consider your own liability if there was to be an accident.

Alpha Whiskey Bravo 1st Oct 2018 22:56

Your own staff is fine. The other contractor's staff is a charter as such. Unless he employ's you as their own personal company pilot. Doesn't matter how much he pays you as long as you have a contract and pay tax on your other income.

AWB

Squawk7700 2nd Oct 2018 01:18


Originally Posted by Alpha Whiskey Bravo (Post 10263605)
Your own staff is fine. The other contractor's staff is a charter as such. Unless he employ's you as their own personal company pilot. Doesn't matter how much he pays you as long as you have a contract and pay tax on your other income.

AWB

+1 for this answer (and not the one above it!)

longrass, just be mindful of your employees. I heard first hand of a situation where one of the employees of a small company was not happy to be flown by his employer as he didn’t feel like the pilot / employer was safe / qualified / experienced enough to conduct the flight safely and he was also concerned about the weight of the aircraft being over. Being an employee, he felt obliged to board the aircraft for the sake of keeping his job.

Nothing happened on any of the flights, however the employee was spot-on with his intuition in the matter.

*Most* life insurance companies only cover you in a chartered aircraft or RPT.





Clare Prop 2nd Oct 2018 01:23

You'll probably find insurance companies will be the deciding factor. I have had a few hirers that were doing work like this, but had to stop because there was no compo cover for being "other than a fare paying passenger". Yes, the compo people would prefer that you drive your staff there through croc infested waters...it's nuts.

Duck Pilot 2nd Oct 2018 01:40

Get an AOC if it looks and smells like it, which it does particularly with the transport of non company personnel.

If you can’t get an AOC use someone else’s, which probably would be a better solution in the short term.


peterc005 2nd Oct 2018 01:59

Would it be easier/practical to operate under the AOC of an established Charter company?

megan 2nd Oct 2018 03:05

You might talk to these folk for advice, they even own and operate a couple of Metros to support their bush work. Pilots work the tools as well when on site. Unless you're competitors. :eek:

Jetstream Electrical Darwin Electrician

Sunfish 2nd Oct 2018 03:07

This is the sort of issue that destroys investment in aviation because it is not possible to remove uncertainty and manage risk. CASA won't help you by issuing a clear statement regarding legality and without that you are building on sand because you cannot get insurance cover for what might be found to be an illegal operation.

multiply be ten thousand business opportunities and you can understand why GA is dead.

Icarus2001 2nd Oct 2018 03:51

So a corporate jet flying from Oz to pick up or drop of high rolling gamblers in Asia is a private operation.

Be guided accordingly.

Squawk7700 2nd Oct 2018 04:24


Originally Posted by Icarus2001 (Post 10263696)
So a corporate jet flying from Oz to pick up or drop of high rolling gamblers in Asia is a private operation.

Be guided accordingly.

Are you telling us Sunfish, that Crown Casino doesn’t have an AOC?

I’ll save you answering. Of course they do.

Which Casino / gambling institution are you referring to?

longrass 2nd Oct 2018 11:24


Originally Posted by Alpha Whiskey Bravo (Post 10263605)
Your own staff is fine. The other contractor's staff is a charter as such. Unless he employ's you as their own personal company pilot. Doesn't matter how much he pays you as long as you have a contract and pay tax on your other income.

AWB

How about as a sub-contractor on ABN?

industry insider 2nd Oct 2018 13:15

As others have said, the issue will be insurance. You need to think of the "what ifs". Hypothetically and simplistically, you cross hire the aircraft, the engine fails and during the subsequent inevitable landing the aircraft crashes, you are killed and so is one of your passengers. It is unsure whether or not the fatalities have occurred because you messed up the landing or because the engine failed and you had nowhere to land except where there was a tree.

Does the passenger's family sue your dependents who have just lost their husband / father for your poor piloting? Do your dependents sue the owner of the aircraft and his maintenance organisation for poor maintenance? Who conducts the maintenance? The lawyers could take years to sort out the settlements. There are to many many combinations of liability to go through one by one.

If you survived but your one of your passengers didn't then the passenger's dependents could sue you. You could lose everything because your main business is not as an operator of as you have no AOC. Then another passenger says that they were all coerced into flying with you and around you go again. I don't know what type of license you have. I don't know if your workforce are contractors or staff. I don't know who your customer is but if its landing at a mine site or private airstrip, the customer may require insurance, evidence of your qualifications etc. How will you manage fatigue?

I don't know enough details of your individual case but I get paid to provide aviation advice to companies, including insurance companies. My honest (if unpalatable) advice to you would be don't even think about this as being a sensible option.

aroa 2nd Oct 2018 22:24

Sunny is right , of course...thats why GA is in such a schemozzle today.

All the advice, maybe well and good...BUT the complexity of the 'regs' and obscurity of some that can be dug out to kill off the operator boggle the mind..
The OP may well go for an AOC...and by the time he/she has played jump the hoops and survived the paperwork blizzard, paid out mega bucks..and the AOC approval finally turns up after 13 months...then the business opportunity is probably long gone, aircraft hire no longer available ...so its all for nought.
How the hell dopey Governments and its agencies can sqwark.about 'jobs and growth' when the system prevents anyone taking rapid advantage of a business opportunity.
Been there, been 'done' over that years ago. Had an Ops inspection for an AOC variation.adding .CHTR. All OK ..Final statement from the CAsA person departing..'Approval to operate be with you in 48 hrs'. Finally came thru SEVEN MONTHS later after some (expletives deleted) phone calls. But all was lost...business that was to hand initially and cross-hired a/c loong gone!
Over the years I have come across many companies carrying their own employees, or passengers for other than a charter..ie the cost of the week-end on a remote island made no mention of how they got there, being flown in by a PPL. But carry a camera only !!!! Kaboom !!
Its a minefield.!
Just be careful, grassy that you dont blow yourself up...financially and mentally.

WhiskeyKilo 2nd Oct 2018 22:52


Originally Posted by Squawk7700 (Post 10263705)


Are you telling us Sunfish, that Crown Casino doesn’t have an AOC?

I’ll save you answering. Of course they do.

Which Casino / gambling institution are you referring to?

As I’m sure you know Squawk you can still have an AOC but conduct private operations ;)

Almost all casino flights are private. Same with a fair few large scale bizjet operators, they have AOCs but all flights are conducted as private

LeadSled 2nd Oct 2018 23:06

Folks,
"Industry Insider" nails it. I have been around quite a while, including for many matters concerning CAR 206, and possible insurance/employment law ramifications are the biggest threat. Without that coverage, with the precisely detailed operation being accepted for coverage, including "workers compo", you are betting your personal and business assets.
CASA is the lesser of your problems.
Tootle pip!!

Squawk7700 2nd Oct 2018 23:17


Originally Posted by WhiskeyKilo (Post 10264451)


As I’m sure you know Squawk you can still have an AOC but conduct private operations ;)

Almost all casino flights are private. Same with a fair few large scale bizjet operators, they have AOCs but all flights are conducted as private

So they can legally do that or they can’t?

The punters are getting a free ride? Insurance not an issue because the Casino’s have millions?

DrongoDriver 2nd Oct 2018 23:58


Originally Posted by Squawk7700 (Post 10264467)


So they can legally do that or they can’t?

The punters are getting a free ride? Insurance not an issue because the Casino’s have millions?

The Crown and Star ops would be 100% legal. I’m guessing the punters aren’t paying for the flight in so much as they’re ‘paying’ the casino for the experience by losing $$$$ at the roulette table. Hence private operation.

Insurance would cover the flights but might have stipulated they needed to be performed under an ops manual or something similar. Insurance companies will take your money if you offer it, just needs to be properly laid out. If a company owns/operates a plane then it needs to be covered like any other company vehicle.

Horatio Leafblower 3rd Oct 2018 00:47


The punters are getting a free ride? Insurance not an issue because the Casino’s have millions?
I would suggest that there is an agreement between the casino and their high rollers about who covers what and under what circumstances. Private corporations carrying their clients and prospective clients as a courtesy or as hospitality is very common.

megan 3rd Oct 2018 02:40

Toiled for many a year as a full time salaried pilot for a private operator who was engaged in the energy business. CASA were trying to make them subject to an AOC, but the company managed to fend them off, don't know the state of play today. We carried all sorts of people, company employees of course, contractors to the company, who I believe paid for the ride through some accounting system associated with the contract, politicians, town councillors, you name it.

thunderbird five 3rd Oct 2018 04:09

And I'll bet not one of those people died from lack a of AOC.:E

601 3rd Oct 2018 12:38


Toiled for many a year as a full time salaried pilot for a private operator.
Did the same for many years in what was a private operation.
But we did get an AOC because a PVT flight was last on the list into controlled airspace. We were based at a primary airport
What charter we did do covered the boss' costs.
Even getting a AOC would get over the insurance hurdles buy it would be a mine field juggling CP duties, flying and running the primary business. I would hate to see how you would manage your F&D.

industry insider 3rd Oct 2018 14:33

Megan, that operator had every system in place which could have resulted in the granting of an AOC though, SMS, OM (all sections) HOFO, HOTC, fully employed or SLA contracted pilots and engineers, approved OEM and CASA maintenance schedules and insurance + self insurance and access to lawyers to settle any likely claim.

That company had similar (not quite the same) arrangements in the USA as do other companies today engaged in the same type of work. It’s gery different from the OP’s situation.

megan 3rd Oct 2018 23:30

Oh, they had systems in place all right, just that a PROPER audit would have found a LONG list of questionable flying practices.

industry insider 4th Oct 2018 00:58


Oh, they had systems in place all right, just that a PROPER audit would have found a LONG list of questionable flying practices.
Can't comment on that, I didn't fly for them. I don't know if they have external audits and if they do who provides them.

neville_nobody 4th Oct 2018 01:39


As others have said, the issue will be insurance. You need to think of the "what ifs". Hypothetically and simplistically, you cross hire the aircraft, the engine fails and during the subsequent inevitable landing the aircraft crashes, you are killed and so is one of your passengers. It is unsure whether or not the fatalities have occurred because you messed up the landing or because the engine failed and you had nowhere to land except where there was a tree.

Does the passenger's family sue your dependents who have just lost their husband / father for your poor piloting? Do your dependents sue the owner of the aircraft and his maintenance organisation for poor maintenance? Who conducts the maintenance? The lawyers could take years to sort out the settlements. There are to many many combinations of liability to go through one by one.

If you survived but your one of your passengers didn't then the passenger's dependents could sue you. You could lose everything because your main business is not as an operator of as you have no AOC. Then another passenger says that they were all coerced into flying with you and around you go again. I don't know what type of license you have. I don't know if your workforce are contractors or staff. I don't know who your customer is but if its landing at a mine site or private airstrip, the customer may require insurance, evidence of your qualifications etc. How will you manage fatigue?

I don't know enough details of your individual case but I get paid to provide aviation advice to companies, including insurance companies. My honest (if unpalatable) advice to you would be don't even think about this as being a sensible option.
So what's the difference between this and people dying in a car crash in a work truck and the driver only having a Private license? I would agree though you would want to be insured in either instance.

Sunfish 4th Oct 2018 02:52

the difference is that car and truck operations don't require an AOC and associated micro management to be legally driven and insured. My neighbour has a forty foot boom spray rig on the back of his toyota ute at the moment and i can either borrow it and use it myself, pay him to spray my cape weed, pay for fuel and weedicide, and ride with him while he sprays. No thought on legality even necessary, unlike aviation.

Icarus2001 4th Oct 2018 03:15


the difference is that car and truck operations don't require an AOC and associated micro management to be legally driven and insured.
....and neither do private operations, which is the whole point of this thread. What constitutes a private operation.

Shall we start on again about parachute operations...?

megan 4th Oct 2018 04:47


Shall we start on again about parachute operations...?
Aaaahhhh, but that's different, you have to be a paid up member of the Parachute Federation before you can step outside. You're a member of a club, see. :rolleyes: It was a good system to have when we first started parachuting because then activities all revolved around a club. It was the advent of tandem that what can only be described as commercial operations began. In the club days we jumped at air and agriculture shows, but no money was involved, remember jumping from a 180 flown by one of the Hazeltons at an air display, all donated, but he did demand at the BBQ that night that he be given a jump the next day, put him out on a static line.

LeadSled 4th Oct 2018 08:25


Originally Posted by megan (Post 10265482)
Aaaahhhh, but that's different, you have to be a paid up member of the Parachute Federation before you can step outside. You're a member of a club, see. :rolleyes: It was a good system to have when we first started parachuting because then activities all revolved around a club. It was the advent of tandem that what can only be described as commercial operations began. In the club days we jumped at air and agriculture shows, but no money was involved, remember jumping from a 180 flown by one of the Hazeltons at an air display, all donated, but he did demand at the BBQ that night that he be given a jump the next day, put him out on a static line.

megan,
There have multiple legal challenges to Skydiving as it is conducted, up to and including Supreme Court of Appeal , none have overturned the system.
That the classification is "private" has been confirmed multiple times.
I would remind you that money changing hands is not a sole determinant of when an AOC is required in Australia, it is whether you are roped in by CAR 206 or not.
Indeed, some years ago, consumer law was amended to exempt operators of "adventure sports" from a large slab of the normal "duty of care" responsibilities that bind most businesses.
Multiple challenges to the "liability waivers" involved in Skydiving was a major consideration in the legislative change, to put the validity of "blood chits" beyond legal doubt.
With the advent of Part 135, I think the fight is going to start all over again --- as the dreaded "hire and reward" make a re-appearance in Australian air law after around 40(??) years --- I believe due largely to an amazing lack of understanding in CASA of the subject, particularly on the part of a recent CEO/DAS.

industry insider 4th Oct 2018 12:58


So what's the difference between this and people dying in a car crash in a work truck and the driver only having a Private license?
Sorry Nev, I honestly don't know anything about truck driving or what type of license you need to drive one. I have no idea if the OP has a Commercial license or a Private license. But trying to make the holes in the Swiss Cheese line up to find a way to make something legal and OK means that those same holes could also potentially align more easily the other way and to continue with the food analogy, the resulting mess will be a dog's breakfast.

Torres 4th Oct 2018 20:35


I’m led to believe that I can transport my own staff out to the job site and back, whilst being paid (my own wages) and it’s classified as private ops. Correct me if I’m wrong.
In the past that would be classified Aerial Work, requiring an AOC. CASA already have Court precedence to win that one. Some may recall some years ago the guy taking aerial photographs out of (from memory) Far North Queensland with a hand held camera and his own aircraft and the other I recall was a diesel fitter flying out to repair station property equipment. If you catch their jaundiced eye, or have an accident, it could be very expensive for you. Alternatively and possibly equally, they may totally ignore what you are doing.


Next issue is, another contractor has approached me to fly his staff to the same community. How can I achieve this without requiring an AOC. The most logical answer for this would be for him to hire the aircraft from the hirer and I then fly it for free.
CASA would view that as Air Charter.

Read CAR 206 and keep in mind that CASA have at least one interpretation of CAR 206 for every day of the week, every set of circumstances and can easily obtain a new interpretation to specifically ensure a conviction in your case, all of which are accepted by the AAT in the interests of "air safety".

Eddie Dean 5th Oct 2018 00:55

One could say that the OP and others on here are looking for a way to circumnavigate what, to me at the least, is a straight forward regulation. If one flies for reward one requires an AOC of some description.

But worry not, this is the Australian way, from loaning a neighbours ear tags for moving cattle, to not paying helicopter engineers their contract rate.
FWIW

outnabout 5th Oct 2018 00:57

Sunfish, if you pay your neighbour to spray your weeds, then he should have all the appropriate licences and insurances in place to operate as a spray contractor. This includes accreditated training to show he can identify weeds and use the appropriate spray at the appropriate level to control the weeds. Otherwise, the possibility exists that he can spray your weeds with the wrong spray at the incorrect level and poison you, your family, Aunt Ethel who is visiting (and asthmatic). And if so, you would be well placed to sue the pants off him.

And if you use an unlicensed contractor to apply spray to your crop, and he accidentally wipes it out, then you have no chance of claiming insurance.

alternatively, the spray he is applying could drift across to a neighbouring property (which might be organic), cause that property to lose their commercial crop, and their organic accreditation....which means they are well placed to sue the pants off him.

see, not so different from Aviation after all.

(These spray scenarios all come from a family member who was a licenced spray contractor, who went out of business because clients chose to use cheaper, “mate from up the road”, and then bitched because Old Mate didn’t know what he was doing. Shonky Brothers Operations are what the law and insurance companies are trying to deal with. And given the fact that Australia is now number one for litigation, we suffer endless red tape as a result.)

Sunfish 5th Oct 2018 01:15

mate we are spraying capeweed, it's not rocket science and no crops or aunt ethel's involved, but perhaps i chose the wrong example to illustrate the relatively free use we make of terrestrial vehicles vs airborne.

LeadSled 5th Oct 2018 04:59


Originally Posted by Torres (Post 10266101)
CASA would view that as Air Charter.

Read CAR 206 and keep in mind that CASA have at least one interpretation of CAR 206 for every day of the week, every set of circumstances and can easily obtain a new interpretation to specifically ensure a conviction in your case, all of which are accepted by the AAT in the interests of "air safety".

+

Folks,
Ain't that the truth.
Tootle pip!!

LeadSled 5th Oct 2018 05:29


Originally Posted by Eddie Dean (Post 10266246)
If one flies for reward one requires an AOC of some description.
FWIW

Eddie,
I never ceased to be amazed at how hard it is to change perception.

"Hire and reward" is a bit like the "give way to the car on the right" road rule, in NSW at least, it,(like hire and reward) was dropped something like 40 years ago, but based on driver behavior, the actual/real/ current rules for "major/minor" roads and roundabouts have never caught on. We have many crashes in NSW from the driver "on the right" enforcing his/her/its "right of way", particularly at roundabouts.

Likewise "hire and reward", CAR 206 was an attempt, many years ago, to define when an AOC was required without the mire of imaginitis in ways of getting around whether a "hire" or a "reward" was involved.

In this case, the Australian approach is quite different to most other countries, said "other countries" getting themselves entangled in all sorts of legal knots.

Sadly, CAR 206 was badly written, and far too easily interpreted/misinterpreted by CASA and others. This is one of the few area where I believe the Australian approach, or at least the intent, was right.

The FAA "rules" are so draconian in interpretation that, if you take an aeroplane to an airshow, and you are a PPL, and the organizers give you a cold drink, or a hamburger, you and they have committed an offence. At Oshkosh, if an aircraft is flying in the display, and the pilot is a PPL, they can't even accept free smoke oil (off spec diesel donated to by oil companies) but have to trudge off to a truck stop with a couple of cans --- and EAA can't even supply the cans.

For those of you who continue to advocate for "hire and reward" to be the determinant, how does that fit into a genuine risk management framework. If the mechanic flies to fix his own tractor, that's private, but if he flies to fix his neighbor's tractor, that needs all the expense and aggravation of an AOC. How does that decrease which risk??

What he does is break the law ---- as various investigations into CASA have pointed out ---- we create "inadvertent criminals".

At least, in the FAA case, many things that require an AOC, (mostly aerial work) here is Australia have no corresponding US requirement. Such as the famous FNQ aerial photography matter.

Tootle pip!!

PS: Many years ago, a well known Sydney QC was pulled up by CAA, on the way to a country case, CAA (an AWI) claimed that his briefcase and a box with his wig were "tools of trade". Wiser heads, further up the CAA food chain, dropped the matter like a red hot brick.

Lead Balloon 5th Oct 2018 05:53


If one flies for reward one requires an AOC of some description.
Not correct.

If Bob owns a Cessna 172 and I have a private pilots licence to fly 172s, I can charge Bob anything I like and Bob can pay me anything he likes for me to fly him around for his personal transport, and that’s a private flight for which no AOC or commercial pilots licence is required.

There are many other examples (which points up why the classification of operations scheme draws distinctions that have little-to-no causal connection with safety).

Eddie Dean 5th Oct 2018 06:23


Originally Posted by Lead Balloon (Post 10266358)
Not correct.

If Bob owns a Cessna 172 and I have a private pilots licence to fly 172s, I can charge Bob anything I like and Bob can pay me anything he likes for me to fly him around for his personal transport, and that’s a private flight for which no AOC or commercial pilots licence is required.

There are many other examples (which points up why the classification of operations scheme draws distinctions that have little-to-no causal connection with safety).

Wrong I be then, but at least you have pointed out that it is not as difficult as some imagine to get a definitive answer to the question.
Cheers

Lead Balloon 5th Oct 2018 06:26

The context of the OP’s question was a little more complex than the scenario I gave.


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