Williamson - CAA Inquiry

CONTENTS

THIS PAGE

GLOSSARY OF TECHNICAL TERMS AND ACRONYMS

3 . EVOLUTION OF THE AVIATION SAFETY REGULATORY FRAMEWORK

3.1 General

3.2 The Framework Before 1988

3.3 Swedavia-McGregor

3.4 Civil Aviation Act 1990

3.5 The Civil Aviation Authority

3. Evolution of the Aviation Safety Regulatory Framework

3.1 General

This Inquiry's mandate is to assess the Civil Aviation Authority's systems and the powers given to the Director under the Civil Aviation Act 1990 and its amendments, and also the Director's exercising of those powers leading up to the ZK-KVL accident.
To do so, it is necessary first to review the evolution of the existing aviation safety regulatory framework. This review provides a broad understanding of the background, rationale, mandate and principles underlying the present system. Moreover, this historical overview helps identify those aspects of the system that have a direct bearing on the CAA's safety oversight and decision-making in respect of United Aviation. The Committee also considers it important to understand the massive change that has occurred within the regulatory framework over the past eight years. Withstanding the pressures of change management, while continuing to discharge its ongoing safety oversight responsibilities, would have placed a tremendous strain on the regulator, as well as the aviation community.
The Inquiry is cognisant that this continuing change must be taken into account in assessing the adequacy of the monitoring and decision making systems and the scope for decision making powers under the Act. The three most significant events leading to the present framework are: the Swedavia-McGregor Report, published in 1988; the Civil Aviation Act 1990; and the establishment of the Civil Aviation Authority. Each of these events has a direct bearing on the Committee's analysis, and the significant aspects of each are presented in this section of the Report.

3.2 The Framework Before 1988

While the evolution of the New Zealand aviation safety regulatory framework prior to the Swedavia-McGregor Report is of lesser importance to the Inquiry, the following is a 'snapshot' review of developments in the air transport system and the general evolution of New Zealand's safety regulation philosophy:
1937 -   Establishment of the Air Department, responsible for all aviation matters, both civil and military.
1948 -  The Tymms Report, an analysis conducted by a United Kingdom mission, recommended changes to the administration of aviation safety in New Zealand.
1954 -  Establishment of the Civil Aviation Branch. 1964 -  The Civil Aviation Act established a Department of Civil Aviation. 1968 -  Civil Aviation became part of the Ministry of Transport by power of the Ministry of Transport Act.
1979 -  Mount Erebus accident and Royal Commission of Inquiry. 1987 -   Airways Corporation established as a State Owned Enterprise.

3.3 Swedavia-McGregor

In 1988 the Government commissioned a consultant study on the need for regulatory controls and enforcement requirements, the appropriate level of safety regulation and the institutional arrangements, organisational structure and resource requirements for an aviation regulatory authority. The resulting report, known as the Swedavia-McGregor Report, was published in April 1988. It has had an historical and profound impact on the development of the current aviation safety regulatory framework in New Zealand.
Although not all of the recommendations of the Swedavia - McGregor Report were adopted, a great many were. Of particular importance to this Inquiry is that the general philosophy for aviation safety regulation envisioned in the Swedavia-McGregor Report was accepted, and today underpins both the design of the Civil Aviation Act 1990 and the mission and modus operandi of the Authority. In fact, it would be fair to conclude that the fundamental safety framework in New Zealand is built on the foundation presented in the Swedavia-McGregor Report.
A principal recommendation of the report was that:

"The overall regulatory framework should be overhauled, starting with the Civil Aviation Act and the Civil Aviation Regulations". The report advocates development of the framework, provision of a civil aviation safety authority, and the development of flight safety requirements and enforcement provisions.
Significant importance is placed by Swedavia-McGregor on the need for a "clear-cut division of responsibilities for safety between the State authority and the participants, designed on the assumption that approved firms and licensed individuals will act in a responsible way" [page ii]. Furthermore the report states that "... the safety authority should reduce this attention it gives to personnel at lower levels. The safety authority should confine its interest to the organisational structure and key personnel" [page ii].
Other pertinent recommendations are:

"The legislation should provide for:

the discharge of responsibilities undertaken by New Zealand as Contracting State to ICAO and designate appropriate authorities;
the basic goals and objectives for the civil aviation system in New Zealand;
a civil aviation safety authority, its objectives, powers and responsibilities, and define what tasks that may be further delegated;
The minimum requirements for entry into the civil aviation system;
Continued operations within the civil aviation system by persons and organisations;
Aprocedures to facilitate change to regulations and requirements." [12.1.4]

"The legislation should make it clear that the individual is expected to carry out his privileges according to prescribed standards and to observe any limitations and conditions imposed on the licence. Failure to do so should have defined consequences." [12.2.2]
"The responsibility for meeting defined performance standards should rest with approved organisations." [12.2.3]
"The main authority functions for a civil aviation safety authority are to:

provide standards for the different sectors of the civil aviation system;
perform entry control by means of licensing, approving or certificating new entrants into the system;
perform functional supervision by means of surveillance, support and corrective actions;
perform exit control in terms of limitations, suspension or cancellation of licenses, approvals or certificates; and
perform analyses of change in order to amend regulations, standards and working methods to respond to changing environment and technology and to experience gained in the system." [13.1]

3.4 Civil Aviation Act 1990

The Civil Aviation Act 1990 applied many of the Swedavia-McGregor recommendations for a framework. In essence, the Act:

clearly defines the responsibilities of all the participants within the civil aviation system;
sets minimum admission standards for entry into the aviation system;
provides effective sanctions for non-compliance with safety rules;
provides the mechanism for a much simpler system of rule making with properly defined criteria and adequate checks and balances incorporated into the rule making process; and
recognises that different levels of risk exist in the aviation system and that resources should be concentrated in areas where there is the greatest safety dividend. Since the initial promulgation of the Act, the following amendments have been passed:
he Civil Aviation Amendment Act 1991, pertaining to fees and charges and continuation of previous regulations.
The Civil Aviation Amendment Act 1992, providing for the establishment of the Civil Aviation Authority.
The Civil Aviation Amendment Act 1993, covering the transfer of the Aviation Security Service.
The Civil Aviation Amendment Act 1996, incorporating many changes including replacement of Section 15, specifying the Director's authority for safety and security inspections and audits.
Legislative Framework
The following paragraphs summarise the authorities vested in various parties by the Civil Aviation Act 1990 and its relevant amendments outlined above. The summary emphasises those powers most relevant to the scope of this Inquiry.
The Act is divided into the following:

Entry into the Civil Aviation System
Functions, Powers and Duties of Participants in the Civil Aviation System
Rules
Fees and Charges
Offences and Penalties
Rights of Appeal
A Civil Aviation Authority of New Zealand
Registries and Information Services
Aviation Security
International Air Carriage Competition
Aerodromes, Facilities and Joint Venture Airports
Miscellaneous Provisions.
The principal Parts pertinent to the Inquiry are I, II, III and VI A. The most significant sections are :

Section 9 Grant or renewal of aviation document
Section 11 Rights of persons affected by proposed adverse decisions
Section 15 Director may require or carry out safety and security inspections and monitoring
Section 17 Power of Director to suspend aviation document or impose conditions
Section 18 Power of Director to revoke aviation document
Section 19 Criteria for action taken under section 17 or section 18
Section 21 Power of Director to detain aircraft, seize aeronautical products and impose prohibitions and conditions

An amendment to the Civil Aviation Act, promulgated in 1992, provided for the establishment of the Civil Aviation Authority. The new provisions in the Act specified the functions of the Authority in section 72B. Section 5 of this report provides an assessment of the adequacy of the Director's statutory powers.

3.5 The Civil Aviation Authority

In 1991, a decision was made to implement a major recommendation of Swedavia-McGregor by establishing a Civil Aviation Authority as a Crown Entity. The new organisation was launched with the passing of the Civil Aviation Amendment Act 1992.
The structure of the CAA was established along functional lines paralleling the functional responsibilities described in section 3.3 above and in section 72B of the Act. This was contrary to the Swedavia-McGregor recommendation for a "client oriented and output-oriented" organisation [page 245]. Swedavia-McGregor's recommendation for the closure of regional offices and centralisation in one location was implemented.
Section 72I (3) of the Act empowers the Director of Civil Aviation, as Chief Executive, to:

" Exercise control over entry into the civil aviation system through the granting of aviation documents ...; and
Take such action as may be appropriate in the public interest to enforce the provisions of this Act, including the carrying out or requiring of inspections and audits."
Sub-section (4) specifies that the Director must act independently and is not responsible to the Minister or the Authority for the performance or exercising any functions or powers in relation to:

the granting of aviation documents; or
the suspension of aviation documents; or
the revocation of aviation documents; or
the granting of exemptions; or
the enforcement of the provisions of the Act (and other Acts) and regulations.
The CAA organisational elements pertinent to the Inquiry Committee's analysis are as shown below:
Amongst the responsibilities cited in the Position Description for the Assistant Director, Safety Certification are:

Monitoring adherence to safety and security standards by participants in the civil aviation system and the identification and follow-up of corrective actions."
Amongst the responsibilities of the Manager Safety Audit, as specified in the Position Description are:

The monitoring of adherence to safety and security standards in the civil aviation system, by carrying out or requiring safety audits and inspections by participants.
The identification and follow-up of corrective actions which must be taken by participants to ensure that they continue to comply with the rules and the conditions of their documents.
The maintenance of accurate and complete records of the compliance status of participants in the civil aviation system." The Safety Certification Group is considered by the Director as his operational arm. Other groups provide for staff support, analysis, enforcement actions etc. The Safety Investigation and Analysis Group provides for reactive study in response to occurrences or some stimulus which initiates specific follow-up.

Director of Civil Aviation

3.1 General
	This Inquiry's mandate is to assess the Civil Aviation Authority's systems and the powers given to the Director under the Civil Aviation Act 1990 and its amendments, and also the Director's exercising of those powers leading up to the ZK-KVL accident. To do so, it is necessary first to review the evolution of the existing aviation safety regulatory framework. This review provides a broad understanding of the background, rationale, mandate and principles underlying the present system. Moreover, this historical overview helps identify those aspects of the system that have a direct bearing on the CAA's safety oversight and decision-making in respect of United Aviation. The Committee also considers it important to understand the massive change that has occurred within the regulatory framework over the past eight years. Withstanding the pressures of change management, while continuing to discharge its ongoing safety oversight responsibilities, would have placed a tremendous strain on the regulator, as well as the aviation community. The Inquiry is cognisant that this continuing change must be taken into account in assessing the adequacy of the monitoring and decision making systems and the scope for decision making powers under the Act. The three most significant events leading to the present framework are: the Swedavia-McGregor Report, published in 1988; the Civil Aviation Act 1990; and the establishment of the Civil Aviation Authority. Each of these events has a direct bearing on the Committee's analysis, and the significant aspects of each are presented in this section of the Report.
3.2 The Framework Before 1988
	While the evolution of the New Zealand aviation safety regulatory framework prior to the Swedavia-McGregor Report is of lesser importance to the Inquiry, the following is a 'snapshot' review of developments in the air transport system and the general evolution of New Zealand's safety regulation philosophy: 1937 - Establishment of the Air Department, responsible for all aviation matters, both civil and military. 1948 - The Tymms Report, an analysis conducted by a United Kingdom mission, recommended changes to the administration of aviation safety in New Zealand. 1954 - Establishment of the Civil Aviation Branch. 1964 - The Civil Aviation Act established a Department of Civil Aviation. 1968 - Civil Aviation became part of the Ministry of Transport by power of the Ministry of Transport Act. 1979 - Mount Erebus accident and Royal Commission of Inquiry. 1987 - Airways Corporation established as a State Owned Enterprise.
3.3 Swedavia-McGregor
	In 1988 the Government commissioned a consultant study on the need for regulatory controls and enforcement requirements, the appropriate level of safety regulation and the institutional arrangements, organisational structure and resource requirements for an aviation regulatory authority. The resulting report, known as the Swedavia-McGregor Report, was published in April 1988. It has had an historical and profound impact on the development of the current aviation safety regulatory framework in New Zealand. Although not all of the recommendations of the Swedavia - McGregor Report were adopted, a great many were. Of particular importance to this Inquiry is that the general philosophy for aviation safety regulation envisioned in the Swedavia-McGregor Report was accepted, and today underpins both the design of the Civil Aviation Act 1990 and the mission and modus operandi of the Authority. In fact, it would be fair to conclude that the fundamental safety framework in New Zealand is built on the foundation presented in the Swedavia-McGregor Report. A principal recommendation of the report was that: "The overall regulatory framework should be overhauled, starting with the Civil Aviation Act and the Civil Aviation Regulations". The report advocates development of the framework, provision of a civil aviation safety authority, and the development of flight safety requirements and enforcement provisions. Significant importance is placed by Swedavia-McGregor on the need for a "clear-cut division of responsibilities for safety between the State authority and the participants, designed on the assumption that approved firms and licensed individuals will act in a responsible way" [page ii]. Furthermore the report states that "... the safety authority should reduce this attention it gives to personnel at lower levels. The safety authority should confine its interest to the organisational structure and key personnel" [page ii]. Other pertinent recommendations are: "The legislation should provide for: the discharge of responsibilities undertaken by New Zealand as Contracting State to ICAO and designate appropriate authorities; the basic goals and objectives for the civil aviation system in New Zealand; a civil aviation safety authority, its objectives, powers and responsibilities, and define what tasks that may be further delegated; The minimum requirements for entry into the civil aviation system; Continued operations within the civil aviation system by persons and organisations; Aprocedures to facilitate change to regulations and requirements." [12.1.4] "The legislation should make it clear that the individual is expected to carry out his privileges according to prescribed standards and to observe any limitations and conditions imposed on the licence. Failure to do so should have defined consequences." [12.2.2] "The responsibility for meeting defined performance standards should rest with approved organisations." [12.2.3] "The main authority functions for a civil aviation safety authority are to: provide standards for the different sectors of the civil aviation system; perform entry control by means of licensing, approving or certificating new entrants into the system; perform functional supervision by means of surveillance, support and corrective actions; perform exit control in terms of limitations, suspension or cancellation of licenses, approvals or certificates; and perform analyses of change in order to amend regulations, standards and working methods to respond to changing environment and technology and to experience gained in the system." [13.1]
3.4 Civil Aviation Act 1990
	The Civil Aviation Act 1990 applied many of the Swedavia-McGregor recommendations for a framework. In essence, the Act: clearly defines the responsibilities of all the participants within the civil aviation system; sets minimum admission standards for entry into the aviation system; provides effective sanctions for non-compliance with safety rules; provides the mechanism for a much simpler system of rule making with properly defined criteria and adequate checks and balances incorporated into the rule making process; and recognises that different levels of risk exist in the aviation system and that resources should be concentrated in areas where there is the greatest safety dividend. Since the initial promulgation of the Act, the following amendments have been passed: he Civil Aviation Amendment Act 1991, pertaining to fees and charges and continuation of previous regulations. The Civil Aviation Amendment Act 1992, providing for the establishment of the Civil Aviation Authority. The Civil Aviation Amendment Act 1993, covering the transfer of the Aviation Security Service. The Civil Aviation Amendment Act 1996, incorporating many changes including replacement of Section 15, specifying the Director's authority for safety and security inspections and audits. Legislative Framework The following paragraphs summarise the authorities vested in various parties by the Civil Aviation Act 1990 and its relevant amendments outlined above. The summary emphasises those powers most relevant to the scope of this Inquiry. The Act is divided into the following: Entry into the Civil Aviation System Functions, Powers and Duties of Participants in the Civil Aviation System Rules Fees and Charges Offences and Penalties Rights of Appeal A Civil Aviation Authority of New Zealand Registries and Information Services Aviation Security International Air Carriage Competition Aerodromes, Facilities and Joint Venture Airports Miscellaneous Provisions. The principal Parts pertinent to the Inquiry are I, II, III and VI A. The most significant sections are : Section 9 Grant or renewal of aviation document Section 11 Rights of persons affected by proposed adverse decisions Section 15 Director may require or carry out safety and security inspections and monitoring Section 17 Power of Director to suspend aviation document or impose conditions Section 18 Power of Director to revoke aviation document Section 19 Criteria for action taken under section 17 or section 18 Section 21 Power of Director to detain aircraft, seize aeronautical products and impose prohibitions and conditions An amendment to the Civil Aviation Act, promulgated in 1992, provided for the establishment of the Civil Aviation Authority. The new provisions in the Act specified the functions of the Authority in section 72B. Section 5 of this report provides an assessment of the adequacy of the Director's statutory powers.
3.5 The Civil Aviation Authority
	In 1991, a decision was made to implement a major recommendation of Swedavia-McGregor by establishing a Civil Aviation Authority as a Crown Entity. The new organisation was launched with the passing of the Civil Aviation Amendment Act 1992. The structure of the CAA was established along functional lines paralleling the functional responsibilities described in section 3.3 above and in section 72B of the Act. This was contrary to the Swedavia-McGregor recommendation for a "client oriented and output-oriented" organisation [page 245]. Swedavia-McGregor's recommendation for the closure of regional offices and centralisation in one location was implemented. Section 72I (3) of the Act empowers the Director of Civil Aviation, as Chief Executive, to: " Exercise control over entry into the civil aviation system through the granting of aviation documents ...; and Take such action as may be appropriate in the public interest to enforce the provisions of this Act, including the carrying out or requiring of inspections and audits." Sub-section (4) specifies that the Director must act independently and is not responsible to the Minister or the Authority for the performance or exercising any functions or powers in relation to: the granting of aviation documents; or the suspension of aviation documents; or the revocation of aviation documents; or the granting of exemptions; or the enforcement of the provisions of the Act (and other Acts) and regulations. The CAA organisational elements pertinent to the Inquiry Committee's analysis are as shown below: Amongst the responsibilities cited in the Position Description for the Assistant Director, Safety Certification are: Monitoring adherence to safety and security standards by participants in the civil aviation system and the identification and follow-up of corrective actions." Amongst the responsibilities of the Manager Safety Audit, as specified in the Position Description are: The monitoring of adherence to safety and security standards in the civil aviation system, by carrying out or requiring safety audits and inspections by participants. The identification and follow-up of corrective actions which must be taken by participants to ensure that they continue to comply with the rules and the conditions of their documents. The maintenance of accurate and complete records of the compliance status of participants in the civil aviation system." The Safety Certification Group is considered by the Director as his operational arm. Other groups provide for staff support, analysis, enforcement actions etc. The Safety Investigation and Analysis Group provides for reactive study in response to occurrences or some stimulus which initiates specific follow-up.