Proposed new operational classifications – Business and owner transport (PP 2610OS)

Overview

We are seeking your feedback on a proposal to introduce 2 new operational classifications:

• business transport, and
• owner transport.

Some business-related and owner-related flights are currently classified as air transport operations because they involve an element of hire or reward. CASA is consulting on a proposal to introduce 2 new operational classifications and a risk-based framework intended to provide greater regulatory certainty while maintaining appropriate safety outcomes.

Why is this proposal needed?

The issue

Some owner-related and business-related flights can involve an element of hire and reward. Following the introduction of the flight operations regulations, these flights may be classified as air transport operations under the current regulatory framework, even when they are not offered to the public and are conducted in circumstances that more closely resemble private operations. This issue has been managed by a temporary exemption instrument (CASA EX68/24).

Industry stakeholders have advised that, in some cases, the resulting regulatory requirements may not be proportionate to the level of operational risk.

The challenge

CASA must ensure that any changes maintain appropriate safety outcomes and regulatory integrity.

This means balancing the need for appropriate safety oversight with the need to avoid imposing regulatory requirements that may be disproportionate for lower-risk operations. Developing a suitable long-term solution requires clear distinctions between private operations, business transport and air transport operations, as well as appropriate safeguards relating to operational control, accountability, aircraft management arrangements and passenger safety.

Proposed response

To address these issues, we are proposing a permanent framework that better aligns regulatory requirements with operational risk while maintaining appropriate safety outcomes. The proposal has been informed by:

• industry feedback
• CASA's risk-based regulatory principles
• a review of regulatory approaches adopted by Transport Canada, the United States Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA).

The proposed classifications and sector framework are intended to provide greater regulatory certainty, establish clear boundaries between different types of operations, and apply safety requirements that increase according to operational complexity and risk.

What is changing?

We are not proposing to remove safety oversight. Instead, the proposal would create a new framework that allows certain business transport and owner transport operations to be regulated differently from commercial air transport operations, while ensuring safety requirements remain proportionate to the complexity and risk of the operation.

The proposal is intended to replace the current temporary exemption (CASA EX68/24) with a permanent regulatory framework that provides greater certainty for owners, operators and pilots, while ensuring safety controls continue to increase as aircraft size, complexity and passenger capacity increase.

Under the proposal:

• business transport and owner transport would become new categories of private operation
• eligible operations would not require a Part 119 Air Operator's Certificate (AOC)
• a new 3-sector framework would apply safety requirements based on aircraft size, complexity and passenger capacity
• the temporary exemption would be replaced by a permanent regulatory framework
• clarification would be provided as to how existing AOC holders can manage or operate aircraft used for business transport and owner transport operations
• a no-fee notification requirement for business transport and owner transport operators of higher complexity or passenger capacity aircraft would be introduced.

These changes are intended to provide greater regulatory clarity, align requirements with operational risk and reduce unnecessary regulatory burden while maintaining appropriate safety outcomes.

Who may be affected?

This proposal may affect:

• aircraft owners
• businesses that own or operate aircraft
• operators that manage aircraft on behalf of owners
• Air Operator's Certificate (AOC) holders
• pilots conducting owner-related or business-related flights.

What are the proposed new classifications?

The table below shows, at a high level, how flights may be classified under the proposed framework. It is intended to help you understand how business transport and owner transport differ from air transport operations.

The sections below provide a more detailed explanation of the proposed business transport and owner transport classifications.

Business transport

Business transport would apply to flights conducted in support of a business's primary activities where transporting passengers or cargo is incidental to the business purpose and is not the purpose of the business itself. Examples may include transporting employees, contractors, directors, equipment or supplies to support business activities.

Example: A mining company uses its aircraft to transport employees and equipment to a remote worksite.

Owner transport

Owner transport would apply to flights conducted for an aircraft owner's private, personal or recreational purposes, where the aircraft is managed and operated by another operator on the owner's behalf. Passengers would be people who have a personal relationship with the owner, such as family members, friends or personal associates.

Example: An aircraft owner engages an operator to fly family members to a holiday destination using the owner's aircraft.

See Appendix A in the attached Policy Proposal 2610OS for further examples to illustrate the proposed classifications.

How would safety be managed?

A key consideration in developing the proposal was ensuring that safety requirements remain appropriate to the level of operational risk.

CASA recognises that business transport and owner transport operations may present different levels of risk depending on factors such as aircraft size, complexity, passenger carrying capacity and organisational arrangements. While some operations may have risk profiles more closely aligned with private operations, others involve larger aircraft, more passengers and more complex operating environments.

For this reason, the proposal includes a 3-sector framework that scales safety requirements according to aircraft size, complexity and passenger capacity. As operational complexity increases, additional safety requirements would apply.

Under the proposal, smaller and less complex operations would be subject to fewer additional requirements, while larger and more complex operations would be required to meet safety standards that are progressively closer to those applying to air transport operators.

For aircraft carrying more than 19 passengers, the proposed safety requirements would be broadly comparable to those that apply to air transport operators, although an AOC would not be required.

Current and proposed arrangements

The following table summarises the current and proposed arrangements.

What feedback is CASA seeking?

We are seeking feedback on:

• the clarity and practicality of the proposed classifications
• the eligibility criteria and exclusions
• the proposed safety requirements
• the 3-sector framework
• potential impacts on aircraft owners, operators, pilots, passengers and other industry participants.

Feedback received during this consultation will help inform CASA's final policy position and any future legislative or guidance material.

This proposal is an initiative within CASA’s General Aviation workplan.

Previous consultations

Prior to the release of this proposed policy, CASA consulted with a Technical Working Group (TWG) consisting of representatives from industry. Alterations and additions were made to the proposed policy as a result of these consultations. Participation in the TWG does not constitute endorsement of the proposal by its members.

Why your views matter

Your feedback will help us make sure the proposed requirements are suitable, as well as informing any future steps by CASA to draft proposed legislation. Any future proposed legislation will also be subject to public consultation.

How to submit feedback

Please submit your comments on the proposed policies through the consultation hub using the survey link provided on this page.

If you are unable to provide feedback via the survey link, please email us at regulatoryconsultation@casa.gov.au .

What happens next

At the end of the response period, we will:

• review all comments received
• make responses publicly available on the consultation hub (unless you request your submission remain confidential)
• publish a Summary of Consultation which summarises the feedback received and outlines next steps.

All comments received on the proposed policy will be considered. Relevant feedback that improves the policy will be included in the final policy proposal which forms the drafting instructions for the legislation.

Related documents

All documents relevant to this consultation are attached in the ‘Related’ section at the bottom of the overview page. They are:

• Policy proposal 2610OS – contains detailed descriptions of the proposed policy
• MS Word copy of online consultation for ease of distribution and feedback within your organisation.