Section 28BE of the Australian Civil Aviation Act states, inter alia, that a holder of an AOC must take at all times ensure that every activity covered by the AOC, and every thing done in conjunction of that activity must be done with a reasonable degree of care and diligence. It also states that if the holder of the AOC is a body having legal personnel, each of the directors must also take such steps. The Act specifically mentions that evidence of a failure of a body or it directors are;
• Inadequate corporate management, control or supervision, of the conduct of any of the body’s directors, managers, staff and agents;
• Failure to provide adequate systems for communicating relevant information to people in the body.
Clearly, the responsibilities of directors of aviation companies are onerous and significant. The provisions of the Act are an amplification or in addition to those in the Corporations Act.
Most aviation enterprises (big and small), are governed by a Board of Directors. In addition to any statutory requirements, the Board is responsible for;
• Recruitment of the Chief Executive Officer (CEO)
• Setting Strategy
• Making Policy
• Monitoring the achievement of corporate objectives
Directors rely on management to run the business on a day to day basis, in accordance with the plans and policies set by the Board. Clearly, the Board cannot be across everything that occurs in the company on a day to day basis, but they should have an expectation to be informed of serious issues (including safety issues) or untoward circumstances, even though management may be managing them.
Often issues which come to the Board require a general knowledge of the business of the company; notwithstanding, Board members may make enquiries of management or seek independent specialist advice in order to fully comprehend the issues and the proposed solutions. Some aviation companies also have safety performance measures which have to be reported upon.
So what sort of questions could an aviation company director ask about a potential aviation safety matter? The following a few examples;
• What are the qualifications, knowledge or experience of the person who has raised the issue and/or provided the information?
• Can this information be verified by another reliable source?
• Is the information contemporary?
• Is this a safety issue or a regulatory compliance issue or a combination of both?
• Does this issue affect staff, processes or systems in the company or our service to customers?
• What has been done to address the issue?
• Are there any external implications – do we need to advise any government agency other relevant stakeholders?
• When can you report progress or completion of the matter?
These questions are examples only and are designed to promote further thought. In other forums, I have suggested that aviation safety issues often have their genesis in poor governance. This applies to large and small businesses.
In conclusion; establishing a formal reporting framework with safety related performance measures is an important initiative of any transport industry Board. Asking good questions is also important so that the issue, its causes and management’s response is fully understood - and finally, it is vitally important that the Board follows up on the issue to ensure that it has been closed.
My book, "Safety Management without the Mumbo Jumbo" can be purchased for $29.95 + $5.95 postage and handling. Click here to purchase the book.
Due to exceptional demand, the book is now also available as an E-Book for your e-reader device. It can be purchased from Palmer Higgs at http://www.palmerhiggsbooks.com.au/safety-management-without-the-mumbo-jumbo-ebook.html
