Aviation sector accuses Civil Aviation Authority of secrecy amid restructure

• The Aviation Industry Association has accused the Civil Aviation Authority of “secrecy” and being “tone deaf”.
• The Herald understands around 85 roles could be disestablished as part of a restructure.
• The CAA says proposed organisational changes are an internal matter, and being an efficient, effective aviation safety and security regulator is the priority.

The group representing the interests of New Zealand’s commercial aviation sector has accused the Civil Aviation Authority (CAA) of “secrecy” and being “tone deaf” to its concerns amid a major organisational shake-up.

The CAA is undertaking a restructure, which a spokeswoman said was about improving its performance and focusing on “value for money in our activities”.

The Aviation Industry Association (AIANZ), which includes aviators in the agriculture, tourism and charter sectors, drone pilots and aircraft engineers, believes the CAA has ignored industry concerns about changes at the agency.

AIANZ chief executive Simon Wallace argued industry members, who pay fees to CAA, should be informed about what’s being proposed, saying they have a stake in the organisation and should be trusted.

“The cloak of secrecy surrounding the process does nothing to inspire industry confidence in the CAA,” he said.

Aviation Industry Association chief executive Simon Wallace represents the interests of more than 200 small to large operators. Photo / Mark Mitchell

He said any cuts to services will further frustrate his members, who were already experiencing “poor service” from the regulator, including extended delays to airworthiness certificates and audits.

Such checks are critical for aviation businesses to operate, and Wallace said there were examples of new planes sitting in hangars for 12 months or more while they waited for the correct paperwork.

The CAA told the Herald it “openly shared” with industry the review that sparked the proposed changes, but that while staff gave feedback on the plan, the finer details would remain confidential to the CAA.

The CAA spokeswoman said it “has clear reasons for why we are proposing to make changes to our organisation”.

“These include industry feedback about delays with certification.”

The CAA did not answer questions about the number of possible job cuts, but the Herald understands around 85 current positions could be disestablished with 121 new roles established – many of them on reduced pay bands and admin-type roles.

A source said there would be job losses in management and team leader positions in the aviation safety group.

Wallace believed a “significant number” of frontline roles could be on the chopping block, but the CAA allayed such concerns.

“No frontline roles are proposed to be disestablished, and new roles are focused on supporting frontline delivery,” the spokeswoman said.

Wallace argued the CAA was integral to a functional aviation sector and his group, comprising more than 200 small to large operators, should be given access to the consultation documents. He was denied the paperwork and had subsequently lodged an Official Information Act request in an attempt to obtain details pertinent to his members.

“If the CAA would be more transparent, if the CAA would not be tone deaf to our concerns, if the CAA would share their consultation document and to allow us to give input, then we may not have the concerns that we have.”

Transport Minister Simeon Brown said proposed organisational changes at CAA were about improving the agency's performance. Photo / Laura Smith

Transport Minister Simeon Brown told the Herald the CAA’s organisational shake-up was about cutting “ballooning back-office” staff numbers as part of a Government directive to slash spending.

In the first six months of this year, more than 2000 fulltime roles at Government agencies were cut as part of the move.

“They’re looking at how they can prioritise resource from the back office to frontline services. My focus with the CAA is that they’re working closely with the sector and improving their performance,” Brown said.

Wallace didn’t believe cutbacks were justified, especially when the CAA’s director, Keith Manch, recently got a pay boost.

“We don’t know where the axe will fall and how that will affect service and delivery. This comes at a time when the director of CAA has only recently received a $75,000 pay increase, taking his salary to over $500,000.″

The restructure comes amid a review of culture at the CAA, following a Herald investigation in August, when whistleblowers alleged a toxic workplace and feared the agency’s investigative approach was changing from a safety to an enforcement focus.

The CAA has said it’s not shifting to such an approach and enforcement action is “rare”, considering the large number of issues it deals with.

In August, the CAA also proposed significant increases in the fees paid by passengers and industry participants.

The authority argued raising levies was critical to maintain its core functions and there would be in excess of 700 job losses and a $145 million deficit without it.

In its pricing review consultation document, Manch said the agency’s move to increase fees was “essential” if the CAA is to continue fulfilling its core functions.

Brown, the Transport Minister, ordered a review of the proposed levy increases, saying at the time he was not convinced they were justified.

The AIANZ’s submission on the pricing review, provided to the Herald, said the proposed fee increases, averaging 43%, were not proportionate to inflation or wage growth.

The submission said such increases would threaten the viability of aviation operators, especially agricultural aviation and flight training organisations, which haven’t recovered from the Covid-19 pandemic.

The executive director of the Board of Airline Representatives of New Zealand (BARNZ) Cath O’Brien told the Herald it’s had a very different experience in terms of engagement with the CAA.

”BARNZ is in regular discussion with the CAA. Over the last year, the CAA has substantially increased its engagement with industry leaders including BARNZ, seeking our views on its work and outcomes, and sharing its aspirations on its regulatory capability. In recent weeks, this has included sharing the thinking which informs the current change proposals.”

She accepted aspects of the change process needed to remain confidential to the CAA.

Michael Morrah is a senior investigative reporter/team leader at the Herald. He won the best coverage of a major news event at the 2024 Voyager NZ Media Awards and has twice been named reporter of the year. He has been a broadcast journalist for 20 years and joined the Herald’s video team in July 2024.