ISSUE JUNE 2012

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PACIFICskiesA V I A T I O N M A G A Z I N E

New ways to manage

airlinesCOVER STORY

Jet fuel prices

Economic benefits from air transport in the Pacific

Paci f ic Skies Magazine

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PACIFICskiesA V I A T I O N M A G A Z I N E

ISSUE JUNE 2012

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COVER STORY

Do you receive SPC’s monthly Aviation Information Bulletin? Comprising key aviation news items from the region, the bulletin is essential reading for anyone involved in the industry.

Email edd@spc.int to subscribe.

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Message from the Director – SPC EDD...........................................3

Message from the ASPA Secretary-General .................................4

SPC’s role in aviation .......................................5

Solomon, Tuvalu and Fijistudents graduate ............................................6

Pacific committed tomitigating civil aviationthreats ..................................................................7

New ways to manageairlines ..................................................................8

Jet fuel prices ....................................................10

Rise in departure tax Fiji ................................11

Economic benefits fromair transport in thePacific ...................................................................12

Australian aviationwildlife strike statistics ..................................13

Criminalisation and just culture ..........................................................14

Australia and ICAO conducttrial workshop for Kiribati and Nauru ............................................................15

Events ..................................................................15 Secretariat of the Pacific Community2nd Floor, Lotus Building, Nabua,Private Mail Bag, Suva, FijiTel: +679 337 0733 Fax: +679 337 0146Email: edd@spc.intWebsite: http://www.spc.int/edd

Disclaimer: All care and diligence has been used in extracting, analysing and compiling this information, however, SPC and ASPA gives no warranty that the information provided is without error.

© Copyright SPC / ASPA 2012

Parts of this document may be reproduced, provided acknowledgement is made to this publication and SPC and ASPA as source.

Issue 1 | 2012

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I am pleased to introduce the first issue of Pacific Skies, an aviation magazine produced by the Secretariat of the Pacific Community (SPC) in close collaboration

with a valued partner, the Association of South Pacific Airlines (ASPA).

In May 2012, SPC entered into a memorandum of understanding with ASPA to further strengthen collaborative approaches in contributing to safe, secure, reliable and affordable aviation transport services, which are so important to us here in the Pacific Islands. You can read more about this partnership later in the magazine.

One of the key priorities emerging from this partnership was the development of an aviation magazine for the South Pacific.

It is our hope, under ASPA’s expert eyes, that the magazine can fill the void left by ASPA’s excellent South Pacific Aviation Magazine, which unfortunately ceased publication. This initiative builds on SPC’s monthly electronic Aviation Information Bulletin, which commenced in January 2012.

Utilising the extensive member networks of both SPC and ASPA, it is our hope that this magazine will, in time, play a key role in communicating aviation-related issues affecting the region to industry, governments, international organisations and various donor agencies that work across the region.

In the spirit of SPC’s ‘many partners, one team’ approach, it is critical that the many partners and stakeholders in the aviation sector in our region are, as we like to say, ‘on the same plane’. While all stakeholders have excellent aims, it is only when we work as one that we can start to realise some tangible, positive outcomes.

Please feel free to email us at edd@spc.int with your thoughts on this first edition, and any suggestions you have for improvement.

I hope you enjoy the first issue.

John HoganDirectorSPC Economic Development Division

Welcome

Message from theDirector – SPC Economic Development Division

Paci f ic Skies Magazine

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Intra-regional air connectivity

The Pacific region is characterised by small,

widely-spread populations across many islands. This presents a major challenge in the provision of air transport, where airlines face considerable constraints in profitably managing returns

through a viable passenger and cargo mix, and achieving sufficiently high levels of aircraft utilisation and revenue load factors.

I am, of course, describing the challenges the airlines face in providing the airlinks between island states. There have been significant developments and improvements to airlinks between the islands and Australia and New Zealand but little progress has been made in intra-regional connectivity. In some cases, these links have been withdrawn completely and in others, we see a reduction in frequency.

For many years, much attention has been focused on finding appropriate ways to improve intra-regional air connectivity. These have been documented and analysed in numerous regional air transport studies. A variety of recommendations has been made, ranging from a single market to a sub-regional airline. The problem with many of these recommendations is that they tend to ignore the reality of our circumstances, and fail to understand that the core problem facing the region is one of low population density and remoteness.

The region has long, thin aviation routes (average 1,300 km — which is at the top end of the turbo-prop range), and these are inherently costly to operate. This problem of low density reflects our geography, low population and size of the travel market.

I am of the view that the solution lies in the hands (wings?) of the regional airlines. Currently, much of their focus is on international routes, and rightly so, because these are the routes that are usually more viable and also they are crucial for inbound tourism. And tourism is big business for island economies. I think the time is right for

the regional airlines to start working seriously together in an effort to improve the intra-regional network. For a start, they should begin with a planning session to assess the existing connections and how they are being operated, and then explore all possible avenues where we can improve the economic viability of these routes. This will require the evaluation of better-suited aircraft types and how these could be acquired.

Our industry partners are willing and ready to help us move forward in this direction. Equally important, one of the key international organisations in the Pacific, the Secretariat of the Pacific Community (SPC), is ready to assist in finding appropriate solutions.

Recently, ASPA signed a memorandum of understanding with SPC that allows the two organisations to have a formal working relationship in developing commercial aviation within the region. This is a milestone event for ASPA in that, as a private sector trade association, we have had an arms-length relationship with governments and other governmental regional organisations. We are therefore very pleased with this new partnership with SPC, and would like to express our sincere appreciation to the Director-General, Dr Jimmy Rogers, and his executives for this initiative.

We are confident that, we can use each others’ strengths to help develop further and improve commercial aviation within, to, and from the region.

One of the first fruits of this cooperation is the publishing of the region’s only aviation magazine, Pacific Skies. Until 2006, Islands Business International published the magazine South Pacific Aviation for ASPA.

I trust you will enjoy the articles in the magazine.

George FaktaufonSecretary-GeneralAssociation of South Paific Airlines (ASPA)

Message from theASPA Secretary-General

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SPC’s role inaviation

Despite this cross-modal approach, however, when the words

‘transport’ and ‘SPC’ are referred to, it is natural to think maritime. In large part this is due to the expertise and reputation my maritime colleagues have in the region. Until I joined the team in October 2011, there was little dedicated resourcing for aviation, necessitating a ‘light touch approach’. This is slowly beginning to change and I am looking forward to challenging current perceptions about SPC and its maritime focus!

The question I am often asked is: ‘What is SPC’s role in aviation?’ My answer is that, working within SPC’s Framework for Action on Transport Services (2010–2020), it is SPC’s goal to play a significant role in the aviation sector, supporting efforts to develop safe, secure, reliable and affordable aviation transport services across the Pacific region, especially for small island states. In doing so, however, it is critical that we respect and work within the current regional aviation framework — hence our lengthy consideration of how SPC can best contribute, while at the same time supporting key aviation partners such as the Pacific Aviation Safety Office (PASO) and the Association of South Pacific Airlines (ASPA).

In February 2011 SPC entered into a memorandum of understanding with PASO, followed by a similar agreement with ASPA in May 2012. The spirit of each agreement is clear: to work collaboratively to further common

interests in the region. This magazine is one key initiative to emerge from the ASPA memorandum and, in relation to PASO, we continue to advocate on their behalf and look for opportunities to support their work in the region.

Readers may be aware of our monthly Aviation Information Bulletin, which commenced in January 2012. Our first tangible step in raising broad awareness of the issues facing the region, the bulletin is also a first step in developing a common understanding among countries, both within the region and abroad.

In recognition of SPC’s membership coverage (22 Pacific Island countries and territories (PICTs)), we continue to be approached to facilitate and organise conferences and workshops — a role we are well suited for. From 20–21 June 2012, SPC hosted the third annual Pacific Directors of Civil Aviation Security Forum in Suva. We are also working with the New Caledonia government to organise an Aircraft Accident Investigation Course, to be held in Noumea from 6–10 August 2012. On the policy side, our input has been sought in relation to a sub-regional airline concept for small island states, for which our work with the Pacific Islands Forum Secretariat is currently ongoing.

In order to make progress with regional aviation issues in the longer term, however, it is critical that there exists a central repository for PICTs aviation

data and information. Having accurate and easily accessible information is critical as a basis for effective planning and decision making. To date, no such repository exists but it is our intention to work over the longer term to get this data collection project up and running. While no small task, the value of this project will be easily seen in terms of coherent, informed, evidence-based policy and planning, from which all PICTs will ultimately benefit.

Although it is early days for the aviation component of SPC’s Transport Programme, it is my hope that our efforts today will be effective in laying the groundwork that will enable SPC to make lasting, positive contributions to the sector over the longer term.

By Stuart Valentine, Secretariat of the Pacific Community

Since 2010, under the regional institutional framework process, SPC’s Transport Programme has been working across both the maritime and aviation transport sectors in the Pacific region.

SPC plays a significant role in the aviation sector, supporting efforts to develop safe, secure, reliable and affordable aviation transport services across the Pacific region, especially for small island states.

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Solomon, Tuvalu and Fiji students graduateFor the first time, Solomon Island and Tuvalu students have graduated from the Airports Fiji Limited Aviation Academy in Nadi.

The Solomon Islands students were congratulated by a delegation of Solomon Islands government officials, led by its Minister of Civil Aviation, the

Honourable Walter Folotalu, who travelled to Nadi to attend the graduation in April this year.

The graduation ceremony saw seven Solomon Islanders receive their certificates in Basic Air Traffic Control, an eleven-week course that began on 7 February 2012. They will now return to their country as qualified air traffic control assistants.

Two Tuvaluan women, Juliana Logoga and Tutia Talitonu, joined them, qualifying as flight service operators.

Four Solomon Islanders and eleven Fijian students also graduated, having completed the International Civil Aviation Organization (ICAO) 052 Aerodrome Course. They will continue with further studies towards becoming air traffic controllers.

Commenting on the graduation, Airports Fiji Ltd Chief Executive Officer Mr Tony Gollin said that this is the first time overseas students have enrolled in Airport Fiji Limited’s Aviation Academy. It is ‘an indication of the recognition the Academy is beginning to receive as a viable alternative to other overseas aviation schools.’

Solomon Island graduates, with AFL CEO Tony Gollin and Solomon Islands Minister for Aviation and Communications Hon Walter Folotalu

Fiji graduates, with AFL CEO Tony Gollin (fourth from right) and Solomon Islands Minister for Aviation and Communications Hon Walter Folotalu (sixth from left)

Tuvaluan students Tutia Talitonu (left) and Juliana Logoga with Tony Gollin

Article courtesy of Runway News — the official newsletter of Airports Fiji Limited. Volume 12. May/June 2012

For further information, contact George Rubine on (679) 9923853

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Pacific committed to mitigating civil aviation threats

The reaffirmation was made at the Regional Meeting of Directors

of Civil Aviation organised by SPC in collaboration with the Office of Transport Security (OTS) of the Australian Government Department of Infrastructure and Transport at SPC’s Regional Office in Suva, Fiji on 20–21 June 2012.

Terrorism, the major threat to aviation security, is transnational in nature and therefore a high degree of inter-agency collaboration is required to mitigate it.

The more than 45 delegates who participated in this year’s meeting comprised representatives from the Pacific Island governments (civil aviation), the private sector, and regional and international organisations, including the International Civil Aviation Organization (ICAO).

Now in its third year, this forum has evolved to become the key regional meeting of aviation security regulators in the Pacific.

One of SPC’s key roles under the regional Framework for Action on Transport Services is to support efforts to develop safe, secure, reliable and affordable aviation transport services across the Pacific Island countries and territories (PICTs).

‘While we are often preoccupied with safety concerns here in the islands, it is important we don’t lose sight of other important issues such as aviation security,’ said John Hogan, Director of SPC’s Economic Development Division, in his opening speech.

‘Coming together on annual basis helps us do this.

‘The reality, after all, is that aviation is critical to the economic and social development of PICTs. This takes on an added element of importance when

we consider the huge numbers of tourists visiting our collective shores each year,’ Mr Hogan said.

The meeting noted the progress made by SPC’s Transport Programme in the collection and dissemination of information to PICTs through regular publications as well as the initiation of a data collection and retention programme.

In January 2012, SPC launched the Aviation Information Bulletin, which provides monthly updates on aviation news relevant to PICTs. In less than six months, the number of subscribers increased to 250.

In July this year, SPC and the Association of South Pacific Airlines will launch a joint regional aviation magazine — Pacific Skies — which will aim to communicate about aviation related issues affecting the region to industry, governments, international organisations and various donor agencies.

The high rate of turnover of staff in the aviation sector presents significant challenges to PICTs and requires ongoing capacity building support from development partners in the region.

The sector is taking the ‘many partners,

one team’ approach espoused in the regional transport framework very seriously, and this was recognised by the meeting. Improved coordination was evident between donors and partners such as the Australian and New Zealand governments, the United States Transportation Security Administration, regional organisations such as the Pacific Aviation Safety Office and SPC, and international organisations such as ICAO, in coordinating their capacity building activities across the region.

The meeting also noted the work of other key agencies in the sector such as the World Bank, the Asian Development Bank and the Airports Council International.

Delegates present at the meeting expressed their commitment to work together to promote the exchange of information and ideas and develop, where possible, regional approaches to the achievement of aviation security outcomes.

PICTs are also expected to benefit from improved information dissemination with regard to changes to international requirements and civil aviation rule amendments.

Directors of civil aviation in the Pacific have reaffirmed their commitment to mitigate the ongoing threats posed to civil aviation, given the severe social and economic impacts that would result if such threats were realised.

By Avnita Goundar, Secretariat of the Pacific Community

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New ways to manage

airlinesThe airline industry is one of the few

global industries that transcends international borders. Safety being of paramount importance, the industry has been regulated through safety standards established through the International Civil Aviation Organization (ICAO). Although the system worked well over the years, many countries, particularly developed ones, developed their own standards because the ICAO standards were considered too low and did not meet their requirements. The result is a multitude of different standards, resulting in confusion. To rectify this situation and in an effort to standardise airline safety, the International Air Transport Association (IATA) began developing a new airline safety standard based on the world’s best practices and standards.

The IATA Operational Safety Audit (IOSA) programme is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline. IOSA’s quality audit principles are designed to conduct audits in a standardised manner.

With the implementation and international acceptance of IOSA, airlines and regulators achieve the following benefits:

■ a reduction of costs and audit resource requirements for airlines and regulators by sharing mutual acceptance audit reports;

■ continuous updating of standards to reflect regulatory revisions and the evolution of best practices within the industry;

■ accredited audit organisations and training organisations with formally trained and qualified auditors and structured auditor training courses;

■ a structured audit methodology, including standard checklists.

The IOSA programme is a complete shift in emphasis from compliance to continuous improvement. It is this shift in focus that prompted ASPA to use the IOSA principles to develop its own Integrated Aviation Management System – IAMS.

The airline industry is probably one of the most highly regulated industries in the world. The reason is obvious. Operating machines (airplanes) in the air, and flying over long distances means that there must be strict rules that govern the airworthiness of these aircraft and the people who maintain these aircraft must be appropriately qualified and experienced.

There needs to be traffic rules in the air to ensure there is no collision. Airports and runways must be able to handle the movement of aircraft and passengers, and ground navigation equipment must not only be there but be working properly. Again, the people responsible for this equipment must be appropriately qualified and experienced.

Comparing the operation of a bus with the operation of an aeroplane clearly demonstrates why the aviation industry is so highly regulated. When a bus gets a flat tyre, it can stop and have the tyre changed along the road. But if an aeroplane raptures its tyre on take off, you face a potential disaster on landing, because you can’t change the tyre in midair.

Because the industry has been so highly regulated, much of airlines’ efforts have been focused on complying with the regulators’ requirements. Traditionally, airlines are audited once a year by regulators (civil aviation authorities). The irony is that airlines spend so much time and effort on meeting the regulators’ requirements (which is mandatory and a prerequisite for granting their Air Operators Certificate) that they focus on compliance only and fail to explore areas where they can benefit, whilst at the same time complying with regulatory requirements. Such benefits can accrue through proper identification of root causes of incidents and accidents

By George Faktaufon, ASPA Secretary-General

COVER STORY

Issue 1 | 2012

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and developing solutions to stop recurrence, and carrying out proper risk assessments in order to be prepared for any future event or incident.

In aviation, the three key challenges facing management are quality, safety and efficiency. If you can mange the various processes that will achieve these results, the chances of success are much improved. How do we go about achieving these targets? Ironically, many of the ‘tools’ are already in place within the airlines, but they are operating in silos.

The IOSA programme is the catalyst for the industry to review its operational processes and to see how best it can improve its overall performance. Whilst IOSA is confined to safety, there are other elements in operational processes that concern the achievement of quality and efficiency. The need is to integrate all these processes so that one has a holistic view.

Back in 2005, when ASPA was helping its member airlines prepare for the

IOSA programme by providing the necessary training, ASPA noticed that there were several different topics that contribute to safety, but they were separately taught as courses on their own. These were:

■ safety management system (SMS)

■ quality management system (QMS)

■ human factors

■ risk management

■ root cause analysis

■ auditing.

These were six separate courses taking one week each, meaning that one had to attend all six to be able to fully understand all the issues related to safety. The courses were taught by different instructors.

In late 2007, with the assistance of a consultant, Jose Castellanos, ASPA developed a management training course that integrated all these subjects and was delivered in a two-week period, as opposed to six weeks.

The biggest advantage of the integrated system is that all the processes necessary to deliver the desired outcome are now inter-linked. In other words, for the first time, each process owner can see how his/her process can influence the next process in the chain of events leading towards achieving flight. Previously, every department worked in isolation and therefore had no real sense of ownership of the final outcome.

IAMS was developed by QSL consultants for ASPA in collaboration with IATA and ASPA. The main focus is one of continuous improvement by ensuring that all requirements, both external and internal, are met.

IAMS is result-oriented and deals with the three main management objectives

of achieving quality by avoiding defects, safety and security by avoiding damage, and efficiency by avoiding waste.

IAMS is based on the main concepts of aviation management systems. These are:

■ quality management: accomplishment of all requirements (customers, regulatory, legal, environment, etc);

■ management using a systems approach: not by memory or just anyhow;

■ management based on processes and people competence: human factors, right people doing right job;

■ performance-based management: people appropriately trained who know what is expected of them;

■ managing by prevention: avoid errors, violations and defects (risk management).

IAMS is now fully operational in Air Terminal Services, Fiji. ASPA is encouraging the airlines to seriously consider implementing it in their own organisations. Towards this end, ASPA has been conducting workshops and short term courses.

IAMS is run on Integrated Quality and Safety Management System (IQSMS), a live cloud-based computer system that has similar functionality to the Aviation Quality Database (AQD) system. IAMS provides a facility for accident/incident reporting, risk assessment, compliance, analysis and monitoring of follow up actions.

It is to be noted that IAMS is the first and only integrated aviation management system and is developed specifically for ASPA airlines.

The airline industry is one of the few global industries that transcends international borders. Safety being of paramount importance, the industry

has been regulated through safety standards established through the International Civil Aviation Organization.

Paci f ic Skies Magazine

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Jet fuel pricesAsian jet fuel prices rose by close to 5% in November as the effects of the 27th September fire that shut down the Bukom Shell refinery in Singapore continued to support prices.

By Ivan Krishna, Secretariat of the Pacific Community

The Bukom Shell refinery is the second largest of the three refineries

in Singapore, with a production capacity of 500,000 barrels per day. Throughout October, Shell progressively restarted operations with three crude oil distillation units, hydrocracker and other units running by the end of the month. Shell returned as a seller to the markets in November, and the refinery had virtually returned to full production by the end of December.

The price of jet fuel, however, fell by 4% in December with refineries around the region increasing production output to compensate for the loss is refining capacity from Shell and anticipating the surge in demand from north Asian countries during winter (jet fuel is also

used for heating during winter) resulted in ample supply in the market. The effect of ample supply, together with a mild winter in Japan, supported the lack of demand, causing prices to fall.

The prices then began to climb during the months of January, February and March; jet fuel achieved an overall increase of 11% over the three months. This was a direct result of the rise in crude prices due to the continuing speculation of military confrontation with Iran as the dispute intensified over Tehran’s nuclear enrichment programme, pushing crude prices up to the highest level for almost four years.

Crude prices, however, backtracked towards the end of March and

throughout April, causing jet fuel prices to fall by 2.14% in April as jet fuel demand remained in the doldrums, with airlines hurting from high prices amid an economic slowdown in key areas such as the European Union and the USA. The poor global demand for jet fuel has caused supplies in Asia to mount, despite demand from Asian airlines likely to see a slight increase this year on the back of the comparatively good demand for air travel and as these airlines take delivery of new aircraft. Asia, after taking into account China’s large jet fuel appetite, typically exports a substantial number of jet fuel cargoes to northwest Europe on a monthly basis, regardless of whether the east-west arbitrage is viable.

Figures courtesy of IATA’s Jet Fuel Price Monitor, a joint IATA PLATTS initiative. Each week, IATA updates its jet fuel price index to provide the latest price data from the leading energy information provider, Platts. The data show the global average price paid at the refinery for aviation jet fuel each Friday.

Terminology

$/b : US dollars per barrel

cts/gal : US cents per gallon

$/mt : US dollars per metric ton

Price snapshot: 27 April 2012

Percentage change vs.

27-04-12 Index* $/b cts/gal $/mt 1 week ago

1 month ago

1 year ago

Jet Fuel Price 370.7 135.6 322.8 1068.6 0.6% -2.3% -4.9%

* 100 in 2000 (87 cts/gal)

Issue 1 | 2012

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Rise in departure tax—

An increase in departure tax from FJD 100 to FJD 150 came into

effect on 1 January 2012.

The increase was flagged in November last year in the country’s budget for 2012.

Fiji’s permanent secretary for Public Enterprises, Tourism, Communication and Civil Aviation, Ms Elizabeth Powell, told ABC Radio Australia that Fiji needed the extra money to maintain infrastructure such as roads

and bridges. While travellers are likely to be affected by the increase, Ms. Powell doubted the increase would deter tourists or potential tourists as it was not a substantial amount.

Statistics provided by the Fiji Revenue and Customs Authority (FRCA), the authority tasked to collect all airport departure tax from 1 January 2011 (which was previously collected by Airports Fiji Limited), revealed that a total of FJD 59 million was collected from departure tax in 2011.

Fiji’s departure tax is included in ticket prices.

Table 1 shows the departure tax charged in Pacific Island countries.

No airport tax is levied on passengers departing American Samoa, French Polynesia, Guam, Nauru and New Caledonia.

By Sereana Narayan, Secretariat of the Pacific Community

Tourists leaving Fiji as well as members of the public who travel overseas now have to pay more in taxes.

Country Departure tax charged In USD (Approx.)

Cook Islands International departure tax of NZD 55 is levied on all passengers leaving Rarotonga by air. USD 42

Fiji Airport departure tax levied on all passengers leaving Fiji is FJD 150. USD 82

Kiribati Airport tax levied on all passengers embarking in Kiribati is AUD 20. USD 20

Marshall Islands Airport tax levied on passengers embarking in the Marshall Islands for destinations abroad is USD 20. USD 20

Niue Airport departure tax levied on all passengers leaving Niue is NZD 34. USD 26

Palau Airport departure tax levied on all passengers departing from Palau is as follows: nationals of Palau and spouses: USD 10; all other passengers: USD 20.

USD 20

Papua New Guinea Airport tax levied on embarking passengers two years and older on international flights is PGK 30. USD 14

Samoa Airport tax is levied on all passengers embarking in Faleolo Airport, Apia for an international journey is WST 40.

USD 17

Solomon Islands Airport tax levied on passengers leaving Solomon Islands is SBD 40. USD 6

Tonga Passenger service charge levied on all passengers embarking on international flights is TOP 25. USD 14

Tuvalu Departure tax levied on passengers embarking for a destination outside of Tuvalu is AUD 20. USD 20

Vanuatu Airport tax levied on passengers embarking for international flights is VUV 2,800. USD 30

Table 1 Departure tax charged in Pacific Island countries

AUD – Australian dollar FJD – Fijian dollar NZD – New Zealand dollar PGK – Papua New Guinean kina SBD – Solomon Islands dollar

TOP – Tongan pa’anga USD – United States dollar VUV – Ni-Vanuatu vatu WST – Samoan tala

Information sourced from the International Air Transport Association (website www.iatatravelcentre.com)

Fiji

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Economic benefits from air transport in the Pacific

Economic benefits from air transport in Pacific Island countries

• The aviation sector contributes USD 261 million (1.5%) to GDP in the Pacific Ocean Islands region.

• The aviation sector supports 29,800 (0.9%) jobs in the Pacific Ocean Islands region.

• The average air transport services employee in the Pacific Ocean Islands region generates USD 19,572 in GVA annually, which is nearly four times more productive than the average of USD 5,377.

• In 2010, there were 60 routes in total connecting the Pacific Ocean Islands nations with urban agglomerations around the globe.

• In 2009, around 82% of these tourists travelled by air, implying that foreign visitors arriving by air spent approximately USD 738 million

• In 2009, the travel and tourism industry directly employed 46,000 people and indirectly supported a further 38,000 jobs through its supply chain.

(Source: Oxford Economics (2011). Economic benefits from air transport in the Pacific Ocean Islands. www.oxfordeconomics.com)

Oxford Economics’ studies in aviation have generally focused on other regions of the world but, for the first time, a comprehensive

study has been done on the Pacific region that examines the economic benefits from air transport to Pacific Island countries. The report — Economic benefits from air transport in the Pacific Ocean Islands — was released in 2011 and has implications for policy-makers and other stakeholders in the aviation sector in the Pacific region.

According to the report, aviation has a significant footprint in the economies of the region, supporting 1.5% of gross domestic product (GDP) and 29,800 jobs or 0.9% of the regional workforce. Moreover, for the countries where estimation was possible, it was found that the catalytic effect of aviation-supported tourism generates an additional USD 824 million (5.9% of GDP) and 103,000 jobs.

The report states that the transport network is a critical asset in the region — to business and to the wider economy. Connectivity between cities and markets boosts productivity and provides a key infrastructure on which modern globalised businesses depend. According to the report, in 2010, a total of 60 routes connected the Pacific Island nations with urban agglomerations around the globe. Many of these connections were dependent on hub airports, which had to generate the traffic density necessary to sustain them.

On the issue of airlines contributing to economies, the report states that all airlines supplying services at Pacific airports contribute to generating these wider economic benefits, primarily through boosting the tourism sector. In 2009, around 82% of the tourists who came into the region travelled by air, indicating that foreign visitors arriving by air spent approximately USD 738 million.

The study also showed the positive impact on employment. It was found that the average air transport services employee in the Pacific region generates USD19,572 in gross value added (GVA) annually, which is nearly four times more productive than the average of USD 5,377. In addition, the travel and tourism industry directly employs 46,000 people and indirectly supports a further 38,000 jobs through its supply chain.

Furthermore, domestic-based airlines were responsible for carrying approximately 45% of both passengers and freight. The wages, profits and tax revenues created by these airlines flows through the domestic economy, generating multiplier effects on national income or GDP.

The study was limited to 12 Pacific Island countries and territories: Cook Islands, Fiji, Guam, Kiribati, Marshall Islands, Federated States of Micronesia, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu (collectively referred as ‘Pacific Ocean Islands’ in the study).

The aviation sector provides significant economic benefits to Pacific Island economies — just how much is revealed by a report released by Oxford Economics.

By Avnita Goundar, Secretariat of the Pacific Community

The report is available from the International Air Transport Association (www.iata.org)

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The purpose of the report, the second in this series to be released, is to feed back information to pilots, aerodrome and airline operators, regulators and others

involved in the aviation industry to assist them in controlling risks associated with bird and animal strikes.

While kangaroos obviously do not pose a danger to aircraft in the Pacific Islands, other animals of similar size, such as pigs and goats, do. This is especially true when we consider the proximity of airport runways to some Pacific Island communities. Thus, although the data in the report are derived from an Australian context, it is a timely reminder of the hazards posed to aircraft by birds and animals.

As the report summary notes (p.iii) ‘While it is uncommon that a birdstrike causes any harm to aircraft crew and passengers, many result in damage to aircraft, and some have resulted in serious consequential events, such as forced landings and high speed rejected takeoffs.’ This has consequences in terms of costs associated with repairing damage caused to aircraft by bird and animal strikes, and costs in removing aircraft from operation to do so.

Other findings that may be of interest, include the fact that take-offs and landings are the most common part of a flight for birdstrikes to occur, being most common between 7.30 and 10.30 a.m. and between 6.00 and 8.00 p.m., and that bats can cause strike problems as well.

These findings underscore the importance of accurate data and, in the Australian context, ongoing reporting by operators to the ATSB. Other information that can assist operators to better understand and mitigate risks posed by bird strikes includes knowledge of migration schedules and bird behaviours.

A full copy of the report can be found at: http://www.atsb.gov.au/publications/2012/ar-2012-031.aspx

Australian aviation wildlife strike statistics

On 4 June 2012, the Australian Transport Safety Bureau (ATSB) released its ‘Australian aviation wildlife strike statistics: Bird and animal strikes 2002 to 2011’ report.

By Stuart Valentine , Secretariat of the Pacific Community

Paci f ic Skies Magazine

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Criminalisation and just cultureKenneth Quinn, general counsel of the Flight Safety Foundation has commented that there is an ‘increasing tendency to turn aviation accidents into crime scenes.’

In fact, there has been a steady increase in the rate of prosecution

of individuals following air accidents since the mid-1950s. Prosecutions are now quite common and official accident reports are frequently used in the proceedings or as preparatory material. Senior managers, as well as operating crew, have been the subject of prosecution and imprisonment. The trend is more pronounced in Europe but is evident in other parts of the world.

But is the use of criminal law the appropriate response? The purposes of criminal law include retribution, prevention and deterrence. For the most part, criminality requires intent, or recklessness, and criminal sanctions are not considered appropriate when the actions involve mere negligence or errors. Its use in aviation frequently serves only to criminalise error.

This is entirely unfair and, in many cases, absurd. Possibly the worst example is the attempt to prosecute, in the aftermath of the Air France accident, two former members of the Concorde design programme for manslaughter. The design work was undertaken in the 1960s and 1970s and the accident occurred in 2000. It was alleged that the designers knew at the time the design was completed that they had provided insufficient shielding of the fuel tanks to prevent debris puncturing the tanks.

It is said that if the accident rate of

20 or 25 years ago was applied to the increase in aviation activities over the same time, the accident rate would be three or four times higher in airline operations than it is today. That improvement is attributed in part to voluntary, open reporting and the sharing of information. But there remains a level of uncertainty surrounding the extent to which open reporting should attract immunity from prosecution or regulatory action. It has been generally accepted that only in cases of intentional or reckless conduct, or sometimes gross negligence, would punitive action be taken.

Fear of repercussions inhibits voluntary reporting. So the concept that there should be no adverse action other than in cases of intentional or reckless misconduct, otherwise known as ‘just culture’, has become one of the foundations of voluntary reporting.

It is accepted that the threat of criminal sanctions is likely to be a deterrent to voluntary reporting but there is debate over whether or not it should be

possible to use information voluntarily provided in regulatory action, including cancellation of licences and approvals. The ICAO working group tasked to set some international standards on the issue is being urged also to permit the use of voluntarily reported information for regulatory action.

The view of the Australian Civil Aviation Safety Authority is that the integrity of an operator’s safety management system (SMS) relies on:

‘...the certainty that information voluntarily provided for the purpose of identifying and mitigating safety risks will not be used by an employer for otherwise disciplinary

or punitive purposes’.

However, there is a simultaneous attempt to classify regulatory action as purely safety-related and, in doing so, to justify the use of information for regulatory action against

operators and personnel. There is an absurdity in the proposition

that the free flow of information within an operator’s SMS can be guaranteed if a regulator is permitted to appropriate the same information for regulatory action against the employees or their employer. There is clearly a safety-related aspect to the regulatory process but it is wilfully naive to claim that it would not also create a disincentive to voluntary reporting.

Article by Norton White

Issue 1 | 2012

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Upcoming eventsEvent Point of contact56th ASPA General Session19-20 July 2012, Nadi, Fiji

ASPA Secretary-General, George FaktaufonWebsite: http://www.aspa.aero

Aircraft Accident Investigation Course6-10 August 2012, Noumea, New Caledonia

SPC Aviation Research Officer, Stuart ValentineEmail: stuartv@spc.int

ASPA, 1-2 December 2011From 1-2 December 2011, the Association of South Pacific Airlines (ASPA) held its 55th General Session, which was attended by a range of member airlines and industry service providers. Chaired by ASPA Secretary-General George Faktaufon, the conference heard a range of interesting presentations including a state of the industry update by the International Air Transport Association and an aviation insurance update courtesy of Marsh Pty Ltd. Delegates also saw presentations regarding developments at Airports Vanuatu, and the development of the Airbus A320neo. The conference also provided an excellent opportunity to connect with key aviation stakeholders from across the South Pacific region.

ISPACG, 1-2 March 2012From 1-2 March 2012 the 26th meeting of the Informal South Pacific Air Traffic Services Co-ordinating Group (ISPACG) was held in Nadi, Fiji. Hosted by Airports Fiji Limited, the purpose of this annual meeting was to promote a cost effective South Pacific Air Traffic Services aviation environment that is responsive to change, meets the needs of the aviation industry, is economically sustainable and maintains or enhances present safety levels. Co-chaired by Mr Geoff Hounsell, Airways New Zealand and Ms Karen Chiodini, Federal Aviation Administration, the meeting covered a diverse range of topics, which were well received by conference delegates.

ALAANZ, 1-3 April 2012From 1-3 April 2012, the 31st Annual Conference of the Aviation Lawyers Association of Australia and New Zealand (ALAANZ) was held in picturesque Queenstown, New Zealand. In keeping with one of the key objectives of ALAANZ, ie. to promote knowledge of aviation law and exchange ideas about aviation, the conference program offered a diverse range of presentations. These included an interesting presentation on ICAO Ash Guidance, aviation and the European Union’s Emissions Trading Scheme, and a moderated panel discussion on just culture. Next year’s conference is scheduled at this stage for Australia, and would be well worth attending — both for lawyers and non lawyers.

Recent eventsEventsAv

iatio

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Do you have any upcoming aviation events you’d like listed? Please contact edd@spc.int with your request.

Pacific Island states that are signatories to the Convention on International Civil

Aviation (Chicago Convention) are required to comply with the standards and (to the extent possible) recommended practices contained in Annex 17 (aviation security) of the convention. A key responsibility is the requirement to develop, implement and maintain a suite of national level documents addressing security, quality control and training. Many states have difficulty in fully meeting this requirement while also ensuring that the documents remain relevant to their local operating environment.

To assist states in achieving this outcome, the Office of Transport Security through its Pacific Aviation Security Liaison Officer (Mr Jason Sambrook) initiated a capacity building project under the AusAID funded Public Sector Linkages Program. The project concept will see an intensive

workshop provided to interested Pacific Island countries and territories (PICTs), with ‘almost’ complete national programs achieved at the completion of the activity. Additional assistance will also be provided to PICTs to support the endorsement and implementation of the finalised documents after the workshop.

On 18 and 19 June 2012, a trial workshop was conducted with participants from Kiribati and Nauru. The Asia and Pacific Office of the International Civil Aviation Organization (ICAO) supported the delivery of the project through the active

involvement of its Regional Officer Aviation Security (Ms Stacey Peel) and a pre-workshop assessment of the templates utilised for the activity. The Secretariat of the Pacific Community’s Economic Development Division also assisted by making meeting space available for the trial workshop to be undertaken at its office in Suva.

Following the successful completion of this trial, additional workshops will be scheduled and made available to interested PICTs.

Australia and ICAO conduct trial workshop for Kiribati and Nauru

By Jason Sambrook Australian Government Department of Infrastructure and Transport

Jason Sambrook (first from left) and Stacey Peel (first from right) conductiong the trial

workshop at SPC, Suva, 18–19 June 2012

Paci f ic Skies Magazine

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