DAWN HANDFORTH

Draft bill proposes to modernise the aviation laws 

The Government has released details of its proposed changes to the regulations governing the aviation sector. 

Last month the Minister of Transport and Civil Aviation, Phil Twyford introduced the Civil Aviation Bill, which proposes combining and amending the Civil Aviation Act 1990 (CA Act) and the Airport Authorities Act 1966 (AA Act). 

The bill has been in the works since the CA Act review in 2014/15. 

The changes cover every part of the aviation sector. The 400 clauses of the bill, cover wide ranging aspects including new drug and alcohol rules, a Just Culture philosophy, how airline alliances are assessed, and new passenger rights requirements. 

The Civil Aviation Bill "Exposure Draft" is supported with commentary which aims to stimulate discussion and understanding on how the legislation is expected to work. 

Key areas where reform is proposed include:

Drone operations 

Drone operators will be in the firing line if they are involved in an accident. In the absence of a pilot on board an aircraft, the duties, powers and obligations of the pilot in command pass to the aircraft operator.

The definition of accident will be amended to include accidents involving drones; requiring drone operators to report any accidents. This means the Civil Aviation Authority (CAA) can properly investigate drone accidents and will also have the full sweep of its powers available in other aviation investigations including the power to detain, seize and destroy drones if they are deemed a danger to people or property. 

Airline alliances

Airlines will be carefully reviewing the proposed new approach to regulating airline alliances. Alliances have been game changers for carriers such as Air New Zealand, as they help make some routes more economic for airlines.

Alliances involve competitors or potential competitors agreeing on services and fares. This has the potential to lessen competition, with a risk of higher prices, reduced capacity and increased barriers to entry for other airlines.

The bill proposes that airlines will need to apply to the Minister to form an alliance. The commentary document states ''the bill improves transparency of the process of considering applications for authorisation and provides that the minister must take the main and additional purposes of the (future) Act into account when determining if an airline cooperative arrangement is in the public interest.'' 

There are no restrictions to airline alliances under the current aviation laws. 

Airport pricing 

Airport pricing is also covered by the legislative overhaul. Under the current legislation, airport companies (after consultation) are able to set charges as they think fit. 

The Ministry says this process has not been proven effective in reducing the difficulties faced by smaller airports, which often only have one major airline customer to consult with when they set prices. 

At the other end of the scale, airlines often claim the current provision hinders commercial negotiations, and allows larger airports to ignore the views of airlines.

The bill proposes to repeal the “charge as they think fit” section, as price setting is now covered by other laws including the recently amended Commerce Act.

The commentary poses a question that will spark debate within submissions. "Does the proposed policy change along with recent changes to the Commerce Act support a robust regulatory regime for major international airports?'' 

Drug and alcohol management plans 

Currently the CA Act has no provisions relating to drug and alcohol regulation. The bill proposes that commercial aviation document holders involved in safety sensitive areas will be required to develop a drug and alcohol management plan, including random testing of safety-sensitive workers. 

The bill also gives the Director of Aviation power to require non-notified drug and alcohol testing. 

Passenger rights 

The bill’s commentary questions whether passengers know their rights, particularly when a flight is cancelled or delayed. It alludes to Europe’s highly prescriptive rules, which require all airlines to provide passengers affected by a cancellation or delay of more than two hours, with a written notice informing them of the delay and rules surrounding compensation. 

Currently New Zealand carriers are only required to include these terms and conditions in the small print on tickets, however these are seldom read or understood. The bill proposes better information disclosure. 

It also proposes new regulations, allowing passengers to claim up to NZ$20,000 for parties and NZ$15,000 for individuals for lost, delayed or damaged baggage.

NZALPA’s response 

The Ministry of Transport is meeting stakeholders and accepting submissions on the draft bill until 6 July 2019, before finalising its legislation later this year.

The opportunity to have input into legislation is significant as this is a once in a generation opportunity. NZALPA is pulling out all the stops to ensure our voice is heard on the points that are most relevant to us. 

We are looking closely at the extent to which the three priority areas identified in the March issue of Uplink have been included in the proposed legislation. Those priority areas were: recognition of Positive Safety Culture, protection of safety related recorded data and separation of accident investigation from regulatory oversight. 

Technical Director Hugh Faris is co-ordinating a team of members and staff to examine the technical, safety, industrial, medical and welfare aspects of the draft, work that will feed into a single NZALPA submission. We have also arranged to meet Ministry of Transport officials to have our questions answered and clarification on some of the proposed changes before we finalise our submission. 

Details on the draft bill, its accompanying commentary and how to make a submission are available on the Ministry of Transport website HERE. 

NZALPA members are of course free to make submissions in their own right.