Aviation Strategic Training Plan and Map of Provision Project Final... · Aviation Strategic...

A project to inform the funding and provision of education and training in the

aviation sector in New Zealand

Aviation Strategic Training Plan and Map of Provision

November 2010

Commercial In Confidence

Preface This report has been prepared for Aviation Travel Tourism and Industry Training Organisation by Dr Alan Barker and Doug Martin from MartinJenkins (Martin, Jenkins & Associates Limited) and Martin Eadie and Chris Knol from Projects International..

MartinJenkins is a New Zealand-based consulting firm providing strategic management support to clients in the public, private and not-for-profit sectors.

Our over-riding goal is to build the effectiveness of the organisations we work with. We do this by providing strategic advice and practical support for implementation in the areas of:

• organisational performance

• public policy and economic analysis

• evaluation and research.

MartinJenkins was established in 1993, and is privately owned and directed by Doug Martin, Kevin Jenkins, Michael Mills and Nick Davis.


Contents Background 1

Overview of aviation qualifications and Government funding 6

Pilot training 10

Aviation engineering 31

Next steps 33

Supporting data 37

Appendix 1: Aviation Project Steering Committee: 40

Appendix 2: Examples of transferable skills in the proposed Diploma in Aviation 41

Appendix 3: Transferable skills required by CAA 43

Appendix 4: Memorandum Of Understanding 45

Appendix 5: Draft Aviation Engineering Review Action Plan for 2011 50

Tables

Figures


Aviation Strategic Training Plan and Map of Provision 1

10 December 2010 4.37 p.m.

Background Terms of Reference 1 The initial brief for the ATTTO sponsored project was to develop a workforce

development strategy to raise skill levels in the aviation sector, and in parallel, influence Government and industry investment and the shape, relevance and quality of tertiary provision.

2 The plan was to apply to the following categories of career and professional development:

• Pilot training

• Aviation engineering training

• Flight attendant training

• Ground handler training

• Air traffic controller training

• Passenger services training

• Administrative, management and supervisory training

3 The project would provide analysis of the Tertiary Education Commission (TEC) funding strategy and tools, with the aim of managing better the peaks and troughs of demand and supply.

4 The overall aims were to:

• Establish an industry wide position on workforce requirements of the industry

• Establish a comprehensive view of the current training provision

• Ensure standards and quality of provision is enhanced, with increased national consistency where required

• Establish industry wide position on any changes required to current training provision

• Influence Government decision making on investment in aviation training so that it best meets industry’s long term national and international goals

• Identify an ongoing process and infrastructure for maintaining and enhancing the above.


2 Aviation Strategic Training Plan and Map of Provision

10 December 2010 4.37 p.m.

Subsequent changes to the project 5 The project began in June 2010 but was focused immediately by circumstances on

pilot training. A simultaneous independent review was announced by the TEC into the funding, administrative arrangements and outcomes of pilot training. This carried with it the threat of a possible withdrawal from current levels of Government tuition subsidies, and a reduction in the number of funded training places (a lowered cap) to limit exposure to student loans. Attention therefore shifted rapidly to pilot training.

6 The Government’s concerns with pilot training related to:

• The high cost of student loans and the poor record of repayments

• The fragmented delivery of the training through a range of schools, many of which have their roots in regional Aero Clubs, which makes efficiencies in delivery difficult to achieve

• Perceived variability in the curriculum content of qualifications

• Poor qualifications completions rate caused by trainees exiting training programmes upon achieving their CPL

• Variable standards of delivery despite the existence of a Code of Practice. The Code is neither mandatory or externally audited and is not used by some providers

• Variable approaches to the selection of students; in some cases no pre-selection occurs

• Poor management of pathways for graduates into meaningful employment in the industry, with a gap between graduating and first employment, often solved by a self-feeding route with graduates finding first employment as C-CAT trainers of new trainees

• Doubts about the value added by Institutes of Technology and Polytechnics in sub-contracting flight training schools.

7 These concerns were not new. They were raised in the 2004 Roseveare report commissioned by the TEC. Roseveare identified two broad approaches to training:

• Generating a suitable ‘pool’ of trained and qualified people from which pilots can be offered job. Actual employment outcomes for any particular student are not guaranteed. This approach remains reasonably close to the status quo.

• Converting selected trainees into future employees by ‘end to end management’. Training and selection processes focus on the widest possible range of factors that will – in practice – affect the ability of students to gain employment. This approximates the desired (but yet to be implemented) best practice identified by numerous other industry reports.



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8 Roseveare concluded that “the best and most practical approach may be a mixture of the two approaches” which:

• Links all aspects of the selection and training of aviation students as closely and effectively as possible to achievable and sustainable employment outcomes.

• Introduces more visible and reliable ‘pathways’ that aviation students can follow as they move from training to employment; and

• Obtains, analyses, and communicates more (and more systematic) information at a number of levels.

9 A number of initiatives subsequently identified by AIA supported this approach to decrease the uncertainty and risk for students and enhance their ability to repay debts:

• Enhanced mentoring and support of students

• A Selection Review Board that would assess and provide feedback on the employment prospects of students

• The establishment of formal, industry level, job matching and job placement services for students

• An intensive 2/3 month ATTTO accredited programme for a limited number of newly graduated students

• Arrangements to offer opportunities in civil aviation to suitable candidates who have failed military flight training

• Mandating an industry Code of Practice for all providers receiving EFTS1, which includes requirements for selection.

10 The outcome was a Code of Practice, written on the condition that funding would be provided only to signatories. The ATTTO also mapped the career pathways for the aviation industry through a web based tool.

11 However, further progress on rationalising the pilot training industry, improving the quality of delivery, and achieving better outcomes for students and the Government (as the funder and underwriter of loans) was not achieved, a failure highlighted by the introduction in 2010 of education performance indicators which measure qualification and course completions.

1 EFTS: Equivalent fulltime student



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Recent developments 12 In 2010, the Government returned to the concerns outlined above and commissioned

LECG to conduct a review to inform its own view of pilot training2. The TEC as sponsor agreed with the ATTTO project to share data, with each project working independently. A summary of LECG’s findings is set out on pages 18-22.

13 Since its inception, the ATTTO project has provided clear feedback on its progress, indicating that the pilot training industry was addressing the Government’s concerns.

14 To allow that opportunity, the TEC agreed to maintain the current levels and allocations of EFTS funding to the ITPs and Massey University for 2011 (thereby sustaining funding to the flight training schools in the short term).

15 The condition for this interregnum is that industry provides clear evidence of tangible measures to address the concerns. Evidence must be presented to the TEC by the end of 2010 and strengthened with implementation results in the first quarter of 2011. This will be used to inform decisions on the level and allocation of funding for 2012.

16 The TEC’s expectations are:

• a timeframe agreed by industry to replace existing sub-degree aviation pilot training qualifications

• information about how the proposed qualification is informed by the needs of aviation employers

• information about the process that has been followed to obtain flight training organisations’ endorsement of the proposed qualification

• information about how the proposed qualification would complement the degree level provision provided by universities

• information about whether there would be a need for grand-parenting provisions for students in qualifications that start in 2011 and continue into 2012

• information about industry’s commitment to clarifying training and employment pathways for trainees that will be provided in conjunction with the new qualification, and how these will be an improvement on existing arrangements

• information about the form and function of the proposed training strands (for general aviation, commercial aviation fixed wing and helicopter flying) in the training and employment pathways for aviation pilots

2 2 LECG Report, Review of Pilot Training Funding, August 2010



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• information about how the members of the Steering Group, and the wider aviation training industry, will foster an increase in the efficiency and currency of aviation pilot training provision

• information about how the pre-selection of students will be improved and standardised

• information about how the processes for auditing the quality of training will be improved and standardised; and

• information about how aviation employers, and the wider aviation industry, can make a greater contribution towards the costs of delivering aviation pilot training.

17 These developments explain the present focus of this report which has shifted from the project’s initial intention of reporting projections for future demand and supply conditions. The focus is now on an action oriented project of change management to demonstrate tangible progress on pilot training, on the assumption that progress and recommendations in aviation generally will not be made without firm solutions for pilot training.

18 This change in focus has been agreed by the Steering Committee.



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Overview of aviation qualifications and Government funding 19 In 2009 government funding of $10.3 million was provided for training towards 49

aviation industry related qualifications.

Year

Funding to Providers (EFTS) million

Funding via ITO

(STM) million

TOTAL million

2005 $7.5 $0.2 $7.7 2006 $9.9 $0.2 $10.1 2007 $9.9 $0.1 $10.0 2008 $9.6 $0.2 $9.8 2009 $9.6 $0.7 $10.3

20 Funding streams are shown graphically below:



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21 Funding supported the delivery of the following qualifications:

Aviation Area Number of Qualifications

Funded in 2009

Types of qualifications

Pilot Qualifications - Fixed Wing

13 1 masters 2 bachelor degrees 1 post graduate diploma 4 diplomas 3 certificates 2 licences

Pilot - Helicopter 5 2 diplomas 3 certificates

Aviation Engineering

13 7 national certificates 3 national diplomas 2 certificates 1 diploma

Airport Operations 4 1 bachelor degree 1 graduate diploma 1 diploma 1 short course programme

Flight Attendant 2 2 certificates Air Traffic

7 6 national diplomas 1 diploma

Airline Studies 6 6 certificates

22 Funding was allocated to the following areas within aviation:

Year Pilots (million)

Airline Studies (million)

Airport Operations (million)

Engineering (million)

Flight Attendant (million)

Air Traffic (million)

2005 $4.3 $1.7 $0.8 $0.7 $0.1 $0.1 2006 $4.4 $3.0 $0.9 $0.7 $0.8 $0.2 2007 $4.9 $2.5 $1.0 $0.5 $0.9 $0.2 2008 $4.5 $2.9 $0.9 $0.6 $0.5 $0.4 2009 $4.8 $2.0 $1.0 $1.0 $0.8 $0.7 Total $22.90 $12.10 $4.60 $3.50 $3.10 $1.60



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23 This shows a relatively steady stream of funding for all areas except Airline/Travel Studies which climbed rapidly in 2006 to $3m but declined by nearly a million from 2008 to 2009:



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24 The reason for this was an increase in numbers at a small number of providers:

Qualification

2005 to 2006

2006 to 2007

2007 to 2008

2008 to 2009 Provider

Crown Certificate in International Travel,

Tourism and Airline

Studies

0.00 35.00 -7.00 10.00 Crown Institute of

Studies

Crown Certificate in Travel, Tourism and

Airline Studies

0.00 6.00 -1.00 -4.00 Crown Institute of

Studies

NZSTT - Certificate

in Airline, Travel and Tourism

80.00 -58.00 -21.00 -2.00 The NZ School of

Travel & Tourism

Certificate in

Advanced Airline,

Travel and Tourism

-2.00 24.00 33.00 -5.00 Travel Careers and

Training Limited

Certificate in Airline, Travel & Tourism

24.00 -43.00 -18.00 -27.00 Travel Careers and

Training Limited

Air New Zealand Certificate in Airline

Customer Service

78.00 60.00 53.00 -38.00 Air New Zealand Ltd

(People Devt & Train

25 The numbers of completed qualifications are set out below:

Qualification Completions Aviation Area 2005 2006 2007 2008 2009

Pilot Qualifications - Fixed Wing

74 79 110 139 56

Pilot - Helicopter 5 9 12 3 2 Aviation Engineering

70 85 49 50 1503

Airport Operations 22 25 21 29 31 Flight Attendant 0 115 138 59 51 Air Traffic

6 5 6 10 1374

Airline Studies 141 321 345 384 318

3 Reflects the introduction by ATTTO of on job training programmes towards national qualifications 4 Reflects the introduction by ATTTO of on job training programmes towards national qualifications



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Pilot training Background 26 Pilots contribute significantly to the economy and social well-being, underpinning the

two largest income earners for New Zealand of agriculture and tourism. Aerial topdressing, pest and animal control, search and rescue and emergency services are important GA roles. Pilots also transport products to market, bring visitors to New Zealand and handle domestic transportation and tourist services such as sky diving and charter flights.

27 There is significant potential for pilot training as an international export industry which has been identified by the Trade and Enterprise report New Horizons released in June 2010. New Zealand has a reputation as a stable and safe non-racist country, training standards are perceived to be high, the terrain and weather is ideal for producing capable pilots and the infrastructure is already in place.

28 The Boeing Corporation’s Current Market Outlook 2009-20281 forecasts the commercial aviation industry will require 466,650 pilots and 596,500 maintenance personnel over the next 20 years to accommodate new and replacement aircraft. Airlines will need an average of 23,300 new pilots and 30,000 new mechanics per year from 2010 to 2029.

29 The largest growth will be in the Asia-Pacific region, with a requirement for 180,600 pilots and 220,000 maintenance staff. China alone will need 70,600 and 96,400 respectively.

30 Air travel growth in Oceania is forecast to average 5.1 percent per year over the next 20 years, slightly higher than the world average.

"Our challenge is adapting our training to engage the future generation of people who will fly and maintain the more than 30,000 airplanes that will be delivered by 2029," (Roei Ganzarski, CCO, Boeing Training & Flight Services).

31 Other factors influencing growth include the February 2009 free trade agreement between ASEAN, Australia and New Zealand which will strengthen commercial ties among the participating countries. New Zealand is also negotiating with the European Union to develop a full air services agreement with all member states. An open skies agreement was concluded with Canada in July 2009, which will lift restrictions on frequencies in this market.

32 It is against this background of national importance and potential business opportunities that pilot training needs to be understood. There is also a substantial history that needs to be unravelled.



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Fragmented delivery

33 Historically, flying qualifications up to CPL and C Category instructor and basic instrument ratings were obtained in NZ through self-funded training at private aero clubs or with the RNZAF. This has cemented into a regionally based pattern of provision with a number of small providers, with limited training assets and small student numbers.

34 While some providers have invested heavily in modern glass cockpit aircraft, the majority are flying very old aircraft. An Air New Zealand survey (2009) found an average age of 18.3, with some aircraft 25 to 35 years old. Because of the high capital and high running costs, there are also only a small number of multi-engine aircraft.

201

37

76

5023

0

50

100

150

200

250

Single-engineaircraft

Multi-engineaircraft

IFR aircraft IFR aircraft GPScapable

Simulators

Reported Fleet Statistics

Average age for single and multi-engine aircraft

is 18.3 years

35 This profile has slowed the shift from skill-based to competency-based training in New Zealand. This shift is occurring internationally as advanced technology light aircraft are introduced and the airline industry progresses to highly automated aircraft.

36 The profile of trainers also appears unbalanced. A large number of recently trained instructors supports the perception that the flight training industry is a self-feeding



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beast which supplies itself as much as the wider industry. However, this is not unusual in some training professions. Teachers, for example, train new teachers.

37 The findings of Air New Zealand’s survey are shown below:

119

130

34

67

5 8

0

20

40

60

80

100

120

140

C Cats B Cats A Cats Part 135 Part 125 Part 121

Reported Instructor Category and Commercial Experience

Total instructors 283

38 The effects of fragmentation are noticeable in the disparate nature of the pilot training qualifications on offer, which differ in duration, theoretical content, practical flight time, credits awarded and costs. However, these features are not specific to pilot training but widespread across many disciplines, leading to NZQA’s recent review of qualifications and subsequent changes to the qualifications framework.

39 Fragmentation was a subject of the Peet report (2007), which argues that earlier reports focus on the demand side and under-evaluate supply. The principal capability gap is one of scale. NZ businesses lack the management depth for international expansion, and the capacity to fund development in highly competitive, fast changing markets. The comparatively small domestic market also limits the innovation and productivity available in larger markets.

“Few NZ based pilot training organisations appear to appreciate fully the nature of the global supply chain for pilots. They tend to be preoccupied with securing government funding to ensure survival in a domestic environment... Their focus has been heavily on building student numbers as an end in itself, rather than developing global opportunities.”



10 December 2010 4.37 p.m.

40 The “heritage of club-based pilot training and fragmented engineering training needs to be addressed and new institutional arrangements pursued that reflect the international needs of commercial and general aviation”. The challenge is to integrate training provided by international providers with local, small scale training organisations, “most likely to be achieved by joint venture arrangements providing a path ab initio through to jet training in a relatively small number of quality training centres”. At the same time, the economic factors which support demand for commercial air transport, also favour growth in GA.

41 The Peet report concluded the best way forward was to develop collaborative clusters with a level of government support, by combining elements of three approaches – early but finite government leadership, a commitment to collaborate on priorities, and AIA maintaining the supporting infrastructure, working with government. Currently, small numbers come to NZ for pilot training. Outside of CTC, this is almost on an ad hoc basis, whereas “the numbers requiring training in source markets may be far more substantial.”

42 Interestingly, one attempt was made to form a cluster of AIA members, supported by Government funding. NMIT’s Aviation Network of 11 flying schools and aero clubs distributes over half of the funded EFTS through subcontracting arrangements.

Loans

43 In 1998, the Government changed funding policy to allow student loans to cover the costs of the ‘in flight’ components of pilot training.

44 In 2000, the previous ‘cap’ on private training establishment funding was lifted. This stimulated a demand driven system of flight training at PTEs5. Student loans at PTEs were initially limited to $6,500 per year but the limit did not apply to students enrolled in TEIs6. A number of polytechnics entered into subcontracts where PTEs provided practical and/or theory flying components. Four polytechnics currently are sub contracting with 17 PTEs, with NMIT dominant.

45 New Zealand is unique in making student loans available for practical “in-flight” pilot training costs. The practical part of training cannot be paid for by student loans in Australia, except where an approved cadet program is offered in an institution partnering with Qantas.

46 LECG found on average, student loan borrowing represents approximately 52% of the student fee component of helicopter training costs and 78% of fixed wing training costs.

5 PTE: Private Training Enterpirse 6 TEI: Tertiary Education Institute



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47 The number of student pilots holding loans has risen six-fold in the ten-year period:

• In 1997, 57 student pilots had loans averaging $13,140

• In 2007, 366 student pilots had loans averaging $70,940.

48 Repayments have also been reducing over time. The LEGC report has compared pilot trainees with students taking the other capped courses (Bachelor of Veterinary Science, Bachelor of Medicine and Bachelor of Surgery, Bachelor of Dental Surgery). The two groups differ considerably in their ability to repay debts incurred. Trainee pilots have twice the debt of students in other capped courses:

• For 252 pilot trainees in 2003, the average debt after five years was $50, 380.

• For 270 students in other capped courses in 2003, the average debt after five years was $26,710.

Price and volume controls

49 The Government has rationed quantity through capping funded places, and price through the fee maxima policy.

EFTS cap

50 In 2003, an interim cap of 775 EFTS was placed on the total volume of publicly-funded aviation training. This was reduced to 700 in 2004, and held to 600 in 2007 with the proviso that industry address employment pathways and student selection (entry) criteria. (The intention was otherwise to reduce the cap to 500 EFTS).

51 A student achievement component (SAC) funding subsidy is applied to each EFTS, and is around 20% of the total costs of fixed wing pilot training and 10% of helicopter pilot training, with student fees making up the remainder.

52 Further complexity is added by different SAC funding categories being applied to the vocational and theory parts of courses.

53 More significant, however, is that institutions receive EFTS allocations because they have been first through the door rather than by their performance or achievement, which inhibits the entry of new providers which can demonstrate quality, and prevents re-allocation among existing providers to those with better quality provision.

54 This situation cannot be attributed directly to the flight trainers, but is better explained as a failure by the TEC in operational policy, who along with the main ITP providers could have exerted more rigorous control of subcontracting.



10 December 2010 4.37 p.m.

Fees maxima

55 Pilot training fees were frozen at 2004 levels by the Fees Course Costs Maxima (although fees and compulsory course costs for Government-funded courses are allowed to rise by four per cent in 2011).

56 The Fees Maxima in particular has squeezed flight training PTEs. Since 2001 costs have increased in the following areas:

• Fuel costs have increased by over 100%.

• Maintenance/ engineering costs have increased by 36%.

• Airport charges / Lease costs have increased 47%.

• Aviation Services Limited costs have increased 18.2%.

• Salary costs have increased 21%.

• CAA syllabus changes require additional tuition and exam fees approx $1,000 per student.

• Increased compliance costs/extra audit requirements of approx 50%.

• Increased ICAO requirement of English Language Test for all students.

• Insurance costs have increased.

Continuing fundamental problems

57 Despite the controls on volumes and price, two fundamental problems continue to bedevil the industry:

• Government funding support (through SAC and student loans/allowances) is attached to enrolment in tertiary qualifications with an academic intent, while employment prospects rely almost entirely on the practical/vocational component.

• There is a substantial gap between the completion of (practical) training and meaningful employment (anecdotal evidence indicates on average 5 years but sometimes a period of up to a decade).

These two fundamental problems are considered below.

Qualifications v employment

58 There are inconsistent messages about what the government is buying:

• One message is that government is buying capability measured by qualifications. Hence the emphasis in the Education Performance Indicators (EPIs) on course success and qualifications completions. Value for money and efficiency are achieved by maximising the number of qualifications completed or the volume of skills acquired. TEIs and PTEs face funding penalties if they do not achieve the EPI targets.



10 December 2010 4.37 p.m.

• The alternative message is that government is funding employment, or the places where capability can be applied. This message is supported by the practice of funding flying components in qualifications (which are effectively separable from academic qualifications, but are a requirement for employment as a pilot).

59 In the course of this project, the TEC has oscillated between these two messages, with implications for the re-design of the pilot training qualification (see later).

60 Course completion rates (i.e. for the flight training parts) are approximately twice the rate of completions for qualifications in 2008.

• Massey University had qualifications completions of 70% and above in 2008 and 2009.

• By contrast, 540.9 equivalent full time students in, non-university providers had an average qualifications completion rate of 30.5% in 2008. The 553.1 equivalent full time students in 2009 had an average qualifications completion rate of 20.4%. (Data is still subject to verification but the big picture remains)7. NMIT challenge this data and consider the true completions rate is higher.

• Course completion rates (a further TEC indicator) are higher in the non-university EFTS funded providers. The average course completion rate in 2008 was 74.6%. However, this rate dropped sharply to 59.2% in 2009.

7 TEC provided data.



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61 The CAA CPL (Aeroplane) and (Helicopter) issued by year from 1/1/2004 to 31/12/2009 are set out below, and displayed by nationality and recorded business/postal address to distinguish domestic and international students:

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62 The data indicates that domestic CPLs (which combine (A) and (H)) were 293 in 2004 (68% of the total) and 358 in 2009 (58% of the total). The totals include Government funded and non-funded CPLs, but reflect high success rates if employment is the funding goal.

Gap years

63 The most powerful and difficult problem is the volatile labour market for pilots. To a substantial degree, this lies outside the direct influence of Government.



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64 Traditional labour market signals (wage rates, job vacancies, employment, hours worked etc) help to balance supply and demand, but missing employment or ‘gap’ years mute these signals for pilots. This is especially noticeable for airline employment.

65 The labour market for pilots relies on intending employees building long hours of flying at low or no costs to the employers. The gap years act as a flexible control on wage costs. When the demand for pilots increases, the hours ceilings fall dramatically. Similarly, they increase dramatically when supply exceeds demand.

66 In other professions (e.g. lawyers, doctors, nurses), internships are used to bridge the period between training and achieving the experience of a fully functional employee. There are few such arrangements in place for graduate pilots. Internship and graduate instructor programmes at Massey University and EIT8 provide an opportunity to gain hours over a compressed period of time in a high quality and supportive environment. But for the majority of graduates the pathway is more uncertain.

67 Massey University’s feedback on the impact of the training gap suggested that even three years acquiring flying hours may actually adversely affect pilots employability as they loose relevant flight currency. The quality of the additional hours may be marginal9.

68 Air New Zealand, which is the main airline employer (representing over 80% of the NZ aviation industry) has not been actively involved in the training or advancement of pilots. However, Air New Zealand now intends to participate in training local and international pilot trainees, which suggests it will structure a more managed pathway into airline employment, although it will not guarantee employment.

69 In brief, the pilot training industry has trained for a wide pool which is used as a controlled dam by local and international airline markets to manage unpredictable volatility.

70 Air New Zealand’s view is that there has always been a surplus of trained pilots available to airlines and, consequently, sufficient able candidates are available to meet airlines’ needs. Domestic airlines in the Air New Zealand group report hiring around one in every two pilots they interview. This is a cost efficient business model for Air New Zealand giving it an advantage over international rivals who are more active in training. However, Air New Zealand also acknowledges that it does not have secure information about demand and supply.

8 EIT: Eastern Institute of Technology 9 Consultation with interested parties by Janet Molyneux Consultancy Services, 2010



10 December 2010 4.37 p.m.

LECG report 71 TEC commissioned LECG in mid 2010 to provide information and advice on the

efficiency and effectiveness of pilot training funding. The following summarises relevant findings of that report.

Information

72 On information, LECG concluded that there was an information gap in terms of generation, flow and transparency:

In the current information-constrained environment, data and analysis will most likely not provide a tipping point for decisions. There are simply too many stories chasing too few facts. Ultimately any decision around funding arrangements will be as much about pragmatism, political will and fiscal restraint as efficiency and effectiveness10.

Private benefits

73 LECG consider that the private benefits accruing to pilot training are likely to be larger than the general estimates for general education/training (where private benefits exceed public benefits by around 40%).

74 Their hypothesis is based on:

• The consumption benefits (i.e. actual flying) associated with pilot training. These are routinely excluded from estimation of private returns in the literature and therefore understate the true private benefit.

• Data that shows new pilot production is not clearly related to economic changes. Given the cost associated with the training and the uncertain employment pathway, some correlation is expected between new pilot numbers and changes in GDP, but this is not the case.

• The divergence between completion rates for the academic qualifications and the licences. By completing the licence requirements but not necessarily the academic requirement, students are (perhaps rationally) making choices focussed on private interests.

75 This indicates to LECG that:

Students who make the decision to train as pilots, with corresponding high cost (and corresponding large debt), relatively low probability of immediate payoff from qualification completion, and a long and uncertain path to more lucrative

10 LECG Report, Review of Pilot Training Funding, p 63



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commercial careers, must choose to undertake flight training for more innate (or personal) reasons11.

76 LECG concludes that:

such benefits go a good way to explaining why there appears to be no shortage of people willing to take on flight training when it is expensive, relatively lengthy and there is considerable employment uncertainty involved. Our hypothesis is that people train to be pilots as much for the love of flying as they do for commercial opportunities that being a pilot entails12.

Demand and supply

77 LECG cite the recent NZTE study which estimated the aviation industry was responsible for around 6.9% of New Zealand GDP in the year to December 2009. LECG questions the validity of such widespread benefits, but also notes

“clearly there are some noteworthy public benefits from the aviation industry. A situation where there were no pilots being trained would have a substantial (and ultimately catastrophic) impact on the industry and the wider economy.... However, there are reasons to believe that people would still choose to train as pilots even if government funding was reduced13.

78 LECG used a stock and flow model for their analysis of the demand and supply. When the model is in equilibrium, the inflows of trained pilots through the training system and New Zealand pilots returning from overseas, offset any outflows of pilots through retirement, illness, relocation and death.

79 However, flight trainers and aviation employers have insufficient, if any, information about the number of trained pilots who are not employed in the aviation industry and the number who enter employment but then exit the industry. This latter group is especially important to understanding the available supply of pilots.

80 Demand is extremely difficult to gauge:

• Large commercial employers (who are assumed to be the target for students) have an interest in but little involvement with new pilots. Airlines are not the only employers however. There is a significant (but not well quantified) GA industry.

• There is a large pool of inactive pilots ( who do not have medical clearance, are not flying, or have gone overseas) but very little is known about the potential behaviour of this pool.

11 ibid, p 25 12 Ibid, p 31 13 LECG Review of Pilot Training Funding, p 30



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• Airlines also have a range of “buffer” mechanisms at their disposal that may substitute for new hires. Airlines carry labour in a downturn which provides some ability to respond to demand shocks without necessarily needing to hire new pilots. Scheduling, route availability and crew-ratios can be changed to adjust demand in the face of demand or supply shocks. Rather than laying off staff, airlines commonly respond to downturns by reducing hours or shifts.

81 The LECG report found “no evidence that a cap of 600 EFTS is unduly constraining the industry” though it was unable to say with any precision what the “right” size of any cap is because of flaws in the arguments on both the supply and demand sides of the debate.

82 On the supply side, an accurate picture of the supply of pilots is also difficult because of leakages in and after training, of which very little is known. A significantly larger percentage of pilot training students are overseas one year after study compared to other capped courses.

83 Pilots do not appear on either the long-term or immediate skill shortages lists produced by the Department of Labour (last updated in November 2009) to assist the New Zealand Immigration Service to assess whether an applicant can relocate to New Zealand. Both Veterinarians and General Medical Practitioners figure on the long-term list.

84 The number of CPLs issued to New Zealanders was measured against the average annual percentage change in GDP to test whether the demand for training influences training decisions. LECG found that helicopter trainee numbers appear to respond to economic cycles. When the economy is growing so too does helicopter training. However, the same was not apparent for fixed wing CPLs.

85 LECG’s conclusion is that flight training organisations and tertiary institutions supply pilot training to meet the demand for training, rather than the airline industry’s demand for pilots.14 While this conclusion may unreasonably isolate airlines as the exclusive destination for training, its implications are clear.

86 More generally, LECG considers effective demand, which focuses on the qualities, attributes and aptitudes of graduates rather than the number of licences and ratings achieved, is more relevant. A smaller pool of able and suitable pilots is preferable to a larger pool of less able and less suitable pilots.

14 LECG Review of Pilot Training Funding, p 54



10 December 2010 4.37 p.m.

LEGC’s conclusions

87 LEGC contend that the pilot training system is neither productively efficient (producing at least cost), nor allocatively efficient (producing the right things for the right people at the right time), nor dynamically efficient as it is not flexible and adaptive due to the relatively fixed nature of allocation of EFTS funding and lack of competition/incentives to innovate.

88 However, LEGC argues for caution despite indications of an oversupply of training. It recommends that the TEC:

• reconsider the cap from a first principles basis rather than making marginal adjustments to the existing arrangements

• explicitly state the objectives and calculation process for in the cap within the context of government objectives

• set ‘sub caps’ for fixed and rotary wing pilot training

• increase industry involvement in setting the cap

• introduce contestability mechanisms into the allocation process including being able to move EFTS based on performance and or rationalisation of the flight training sector; and

• investigate and better understand the ‘inactive’ pool of qualified pilots and use that knowledge as a factor in setting the cap.

Proposals for consultation 89 While LECG’s report was not available to the industry at the time the proposals below

were developed, the issues were well known and reflected in contemporary discussions and content.

90 The overarching rationale of the proposals put to industry for consultation was to achieve a position where pilot qualifications and training provision would:

• Have ongoing credibility with government and industry

• Be directly responsive to industry signals (rather than through TEC and Government)

• Manage change from a proactive rather than reactive position

91 Several steps were taken:

• Regional workshops were held in early 2010 with flight and general aviation trainers. Two propositions were explored:



10 December 2010 4.37 p.m.

– Continue to train a capped number of pilots into an undifferentiated CPL pool. Improve qualifications design to achieve the necessary levels of completions. Demonstrate the wide range of employment outcomes for pilots. Let the market determine the experience and pathway into RPT15 or variants of GA.

– Take a more managed approach to training to shape the CPL pool with a range of pre-selection, during training and post training actions that point (without directing) pilots into suitable employment destinations, and possibly create a separate stream of airline training.

• The AIA flight training division meeting in September agreed to develop a national qualification and circulate initial models.

• These models were discussed at a workshop on 12 October with current qualifications owners and selected flight schools. The workshop outcomes were presented to the Aviation Project Steering Committee and endorsed as the basis for this consultation paper. (Full membership of the Steering Committee is set out in an Appendix 1).

92 In parallel, Air New Zealand decided to enter the pilot training market through partnerships with selected flight training organisations with the objective of influencing the quality of students enrolling in and graduating from ab initio pilot training programmes. This has added a market incentive to the flight training industry to rationalise, so that some providers are in a position to be preferred suppliers.

93 Air New Zealand’s Aviation Institute intends to operate in parallel with a GA stream of training which will continue independent of the Institute. Articulation arrangements will be developed to link the two streams of training and offer pathways in both directions.

94 Air New Zealand is a member of the Aviation Project Steering Committee and endorsed the intentions of the workforce development project and its focus on pilot training. It also supported the main proposals outlined a consultation paper sent to industry:

• The confirmation of an interim clear governance structure and process to oversee the development of a national qualification in aviation.

• The subsequent establishment of a permanent governance structure and process to maintain the national qualification, oversee quality assurance of delivery and assessment, and represent the industry to the TEC on issues of training demand, supply and funding.

15 RPT: Regular passenger transport



10 December 2010 4.37 p.m.

• The simple structure and pathways for a national diploma with instructor, airline and GA strands of training; leading to a range of potential employment lines.

• The inclusion of carefully selected aviation related studies and business papers to satisfy TEC’s funding requirements for a tertiary qualification, and ensure higher qualifications completions than those achieved currently.

• The ‘unpacking’ of the CPL requirements to show clearly their embedded educational content (e.g. meteorology and the various elements of human factors) to further support the qualification.

95 To achieve this position, proposals were put forward for industry consideration, with a set of questions to test their acceptability.

National qualification 96 The national diploma with four optional ‘graduate’ strands of airline, instructor, charter

(Part 135 Preparation) and agriculture (Part 137 Preparation) was endorsed by the Steering Committee. Trainees can enrol in more than one strand to equip themselves with a range of employment options.

97 The diploma will be 270 credits inclusive of the airline strand and 240 credits for the other strands. The qualifications development project will consider whether helicopter may be less than 240 credits as trainees do not need an instrument rating.



10 December 2010 4.37 p.m.

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98 The national diploma requires several development activities to counter the criticism (and future threat) that pilot training focuses only on the minimum standards of a ‘regulatory’ licence:

• The CPL, which is embedded in the diploma, will be ‘unpacked’ to expose its substantial educational content. Examples are set out in Appendices 2 and 3, using different but complementary approaches to ‘unpacking’.

• Other educational activities which are inherent in most current models of training, such as communications skills and IT, will also be made transparent.

• Aviation-tailored papers of value to the industry will be provided. These will cover the history, shape and future of the aviation industry, aviation economics, and aviation safety management.

99 This work will be achieved under the direction of a project manager reporting to the Steering Committee. The project manager will work closely with the ATTTO which has technical expertise in qualifications development. NMIT and Massey University have indicated a willingness to share resources and participate in the curriculum development process. Input is also expected from major employers such as Air New Zealand.

100 The qualification will be lodged with NZQA for registration by the end of April 2011, with the intention of being in use in 2012. NZQA’s new rules prescribe a pre-development assessment to ensure a new qualification does not duplicate existing qualifications (to be implemented from 1 January 2011). This will require existing sub-degree qualifications to signal exit arrangements.

101 An implementation plan including any transitional arrangements for current trainees will be forwarded to the TEC by the end of April 2011.

102 Industry has committed to funding the role of project manager through the implementation phase to ensure the streams of work progress to meet the tight deadlines associated with the action items. This funding assistance is underpinned by the industry providers with support for approximately $12,000, Air New Zealand providing $15,000 and the expectation other agencies will provide funding support assistance.

Proposed links and pathways

103 The links between the qualifications and the pathways to employment are set out below. There is one common entry process and criteria for fixed wing and helicopter into the national diploma (the entry standard is discussed in paragraphs 111-113).



10 December 2010 4.37 p.m.

Massey has own comprehensive selection process which includes a university entrance requirement, which it can set to reflect individual circumstances.

104 There will also be selection points into the modular ‘graduate’ strands.

105 To optimise the training programme, selection into the airline stream will occur at a point where the students selected can pursue the two-pilot, multi-engine instrument rating rather than a single pilot (single or multi engine) instrument rating).

106 The proposed selection points, career pathways and tertiary links from this qualification model are represented below:

Governance arrangements

107 The consultation document proposed that the Aviation Project Steering Committee should serve as the initial governance committee for the new National Diploma in Aviation through to March 2011. Consultation feedback has approved this approach. The Steering Committee will be formalised through an MOU (with associated roles, responsibilities and decision making processes) between Steering Committee member organisations. The MOU is set out in Appendix 4.



10 December 2010 4.37 p.m.

108 The Steering Committee, in consultation with industry, will establish permanent arrangements for the ongoing governance of the new qualification by March 2011.

109 The permanent governing body, as the qualification owner, will be responsible for ensuring that resources and systems are in place to:

• Develop the qualification as required

• Set the minimum acceptable standards for delivery (which includes setting the minimum quality standards for assets, for example, accessibility to glass cockpits and simulators)

• Monitor the quality of delivery and assessment through an audit process

• Maintain and revise the qualification to meet changing needs and requirements (which will include progressive implementation of competency-based approaches to training)

• Gather and monitor stakeholder feedback to ensure the qualification remains fit for purpose

• Lead the gathering and reporting of data on qualifications outcomes and employment destinations

• Promote the value of the qualification to stakeholders and public.

110 The permanent Governance Group will concentrate on setting and monitoring the quality requirements for funding (as above), recognising the difficulty of asking an industry to rationalise itself and exclude member organisations. The TEC will allocate public funding (as it does in most other sectors) on the basis of quality inputs and outputs.

111 However, the governance structure will work with the TEC to set the criteria and processes for allocation, and ensure that any criteria, processes and transition arrangements are transparent.

112 This will allow the possibility for new entrants to receive Government funding if their quality exceeds other, already funded providers. The longer term effect therefore, will be more effective and efficient delivery than the current fragmented arrangements. This rationalisation will be necessary to meet the Government’s requirements and to position the industry for future growth in the market for international pilot training.

113 The permanent governance arrangements will also be in a position to influence funding debates. Future funding arrangements may, for example, want to trade off the current EFTS ‘price’ with EFTS volumes to sustain the viability of training. This could mean lower numbers of capped EFTS for higher loan ceilings and/or higher tuition costs.



10 December 2010 4.37 p.m.

114 These developments will occur independently of but alongside any market driven industry rationalisation which may be stimulated by Air New Zealand’s Aviation Institute.

Quality standards

Entry

115 The consultation document proposed that the AIA pilot training Code of Practice be refreshed to ensure standards were appropriate for a capped qualification (the other capped qualifications are medicine, dentistry and veterinary science). The current academic standard - three NCEA level 2 passes in English and mathematics, plus a science or science related subject - appears low, and encompasses no credit requirements which quantify the pass level.

116 This compares with the standard for university entry, which at present requires 14 credits at level 1 in maths or M3ori maths, 8 credits at level 2 in English or M3ori, and 42 credits at level 3 in specified subjects. (This comparison is not included to suggest pilot training requires a similar standard, but to signal the degree of deficit in the pilot training entry standards. It is also noted that a current revision of UE16 is likely to raise the standard further).

117 Consultation feedback endorsed the proposal to refresh the entry standard. However, the low standard was also shown to be influenced by the current level 3 rating applied to the PPL (requiring, in effect, a lower standard for entry). In practice, the PPL theory has been used by some flight training schools as a pre-entry sifting mechanism. This has introduced a higher entry standard than the Code.

118 Aligned with this development, the Steering Committee has agreed to further explore the suggestion that PPL theory should be a met by a user pays fee outside of the coverage of a student loan. This fee, and the industry co-funding of a qualifications project manager, confirms a greater contribution of the employers and the wider aviation industry towards the costs of delivering aviation pilot training.

Audit

119 The consultation paper proposed that the Code should be externally audited for providers of the new National Diploma in Aviation, with results conveyed to providers. A three-month timeframe would allow non-compliance to be addressed and verified by a second audit. Audit results would be available to the qualifications governors and the TEC.

16 UE: University Entrance



10 December 2010 4.37 p.m.

120 Since then it has become clear that the new national diploma offers an opportunity for many elements of the Code to be lodged within the qualifications regulations. The Steering Committee has agreed this should be the first avenue for locating the quality standards, including the entry and ‘graduate’ strands selection standards.

121 The qualification governors will also negotiate with NZQA and CAA to provide a single combined or delegated audit to reduce transactions and costs. NZQA has made such delegations in other areas, such as the Code for International Students. The parties have expressed a willingness to work together to see whether this is practicable.

122 In the meantime, interim arrangements for auditing will be started through contracting an independent third party auditor.



10 December 2010 4.37 p.m.

Aviation engineering 123 The model for aviation engineering contrasts markedly with flight training. It has a well

regarded qualifications delivered in a small number of selected centres by very experienced trainers. Most workers learn their job in one of three schools recognised by the New Zealand Civil Aviation Authority (NZCAA). Completion of the qualification is high and trainees do not amass large student loans. Licences are obtained in the process of achieving the qualifications, which have the primary training emphasis.

124 The labour market functions sufficiently well to achieve a balance between supply and demand, although there is some evidence of a growing problem (shared with other trades) of attracting new entrants into a (now aging) workforce. The managed supply is seen in Air New Zealand’s training arm, which enrols 60 to 75 trainees per year with almost total employment. An over -enrolment in 2010 of 78 students is being adjusted to 64 in 2011. . The Christchurch Engineering Centre (CEC) maintain a pipeline of 7% of its workforce as apprentices.

125 The great majority of graduates achieve employment, a process which the training industry actively manages. E.g. CEC, with the agreement of ATTTO, holds onto the last unit standards of its trainees to maintain their apprentice status over 5 years until employment opportunities arise.

126 There is some loss of experienced engineers oversees because of a world-wide shortage, but generally organisations such as CEC report that they hold onto their staff through building a company loyalty.

127 There are well established pathways between providers and on-job training. E.g. NMIT’s 15 week full-time Level 3 Certificate in Aeronautical Engineering Fundamentals, equips graduates with the base knowledge and experience to choose a career pathway through:

• further NMIT training (the Certificate in Advanced Aircraft Maintenance programme)

• applying for Air New Zealand aviation trade training

• applying for entry to RNZAF aircraft engineering trades, or

• applying for employment in airport ground services.

128 Similarly, CEC takes trainees from three sources for its apprenticeship programme: • CPIT students with a general engineering (fitting and turning) pre-requisite

qualification • Air New Zealand 36 week pre-employment training • NMIT Level 3 engineering certificate graduates



10 December 2010 4.37 p.m.

129 CEC is also actively working with schools through the Gateway programme, and hopes to set up a workshop in one school with expensive aviation equipment, that will serve as a hub for other schools in Christchurch.

130 Two potential improvements are identified:

• Access to aviation engineering could be improved if common generic engineering unit standards were shared between the relevant ITOs (such as MITO and Competenz, in addition to ATTTO). At present, ATTTO is incentivised to protect aviation unit standards because they provide its STM income.

• There is time consuming and costly duplication from NZQA’s requirement for ‘expert assessors’ of unit standards when the Regulator already requires senior licenced specialists to sign off every job.

131 Appendix 5 sets out the timeframe for the development of refreshed engineering qualifications using NZQA’s new qualifications rules.



10 December 2010 4.37 p.m.

Next steps 132 The TEC’s expectations with the actions taken by the aviation industry are set out

below:

• A timeframe agreed by industry to replace existing sub-degree aviation pilot training qualifications

– The existing sub-degree qualifications will be replaced by a national diploma developed under new NZQA rules and lodged for registration by the end of March 2011.

• Information about how the proposed qualification is informed by the needs of aviation employers

– The proposed national diploma has circulated widely among industry employers and its content was endorsed as meeting their needs.

– The TEC has had a representative on the Steering Committee which has overseen this activity.

• Information about the process that has been followed to obtain flight training organisations’ endorsement of the proposed qualification

– The process followed to endorse the qualification is outlined in paragraph 91.

– Feedback strongly and consistently supported the qualification and its governance structure and processes.

– An MOU will cement industry commitments to the development of the qualification and the governance arrangements (Appendix 4).

• Information about how the proposed qualification would complement the degree level provision provided by universities

– An open pathway into degree provision is mapped in paragraph 102.

– NZ universities can set entry standards that exceed the minimum standard promulgated by NZQA, or vary the minimum standard to account for experience and prior learning.

– The TEC can assist with pathways by requiring a proportion of EFTS within a capped category of university funding to come from a designated pathway.



10 December 2010 4.37 p.m.

• Information about whether there would be a need for grand-parenting provisions for students in qualifications that start in 2011 and continue into 2012

– The new national diploma will commence in 2012.

– This will require grand parenting for one year for students already embarked on an existing qualification.

– Grand parenting will also be necessary for students enrolled before 2011 who remain active. These numbers are expected to be very small.

• Information about industry’s commitment to clarifying training and employment pathways for trainees that will be provided in conjunction with the new qualification, and how these will be an improvement on existing arrangements

– The industry will continue to train for a pool to supply the volatile labour market for pilots. The pool is international, and applies to General Aviation as well as airline. The NZ industry is gearing itself to be a prominent international supplier.

– There will be a more managed airline stream in NZ as the largest employer enters the domestic and international training market.

– There will be higher standards for entry, and tighter selection into the specialised strands, to ensure more employable graduates.

– The unpacked educational content of the national qualification will establish its transferable potential to other career pathways, promoting it as a tertiary qualification and not simply a regulated licence.

– A transparent standard will ensure quality delivery of a single national qualification with open links to university degrees.

– The permanent governance arrangements will promote widely the career website, NZSkillsConnect, which has been developed to map the pathways within the industry.



10 December 2010 4.37 p.m.

• information about the form and function of the proposed training strands (for general aviation, commercial aviation fixed wing and helicopter flying) in the training and employment pathways for aviation pilots

– The new national diploma will have four strands: airline, instructor, charter (Part 135 Preparation) and agriculture (Part 137 Preparation). Helicopter is included within Parts 135 and 137.

– The function of these strands is to provide specialist applied skill in areas which make a significant contribution to the NZ economy.

– Trainee pilots typically will complete more than one strand to widen their employment prospects.

– The more substantial content of the airline strand is reflected in its 90 credits. The other strands have 60 credits.

• Information about how the members of the Steering Group, and the wider aviation training industry, will foster an increase in the efficiency and currency of aviation pilot training provision

– The interim and subsequent permanent governance arrangements will set and maintain standards for student entry into the diploma, and selection standards into the ‘graduate’ strands.

– The governance arrangements will set the minimum quality standards for delivery, including the type and standard of assets required to sustain internationally competitive training performance.

– The TEC will be asked to publish funding criteria based on these standards, and to allocate to flight trainers that meet or exceed the standards on an open and competitive basis.

– Eligibility for funding will be open to all providers who meet or exceed the standard.

• Information about how the pre-selection of students will be improved and standardised

– The entry criteria within the Code of Practice will be raised to reflect a higher level of academic performance in NCEA levels and credits.

– The theory component of the PPL will be included in pre-selection.

– The entry requirements will be included in the regulations for the national diploma.

– Any standards that cannot be encompassed in the regulations will be included in a refreshed Code of Practice (for the whole industry, not just those providers who are Government funded).



10 December 2010 4.37 p.m.

• Information about how the processes for auditing the quality of training will be improved and standardised

– The permanent governance arrangements will broker a single auditing arrangement whereby the CAA will include the qualification and NZQA requirements within its purview. CAA has signalled this is possible, and firm precedents for NZQA delegations already exist. The parties have expressed a willingness to work together to see whether this is practicable.

– An interim arrangement for external auditing will be put in place until the single auditing process is achieved.

• Information about how aviation employers, and the wider aviation industry, can make a greater contribution towards the costs of delivering aviation pilot training

– The industry is co-funding the project to develop the national diploma and its subsequent governance and maintenance.

– It is proposed pre-entry PPL theory will be paid directly by intending students without recourse to government student loans.

– MartinJenkins will assist the industry by housing the project manager at no cost until the end of April 2011, and continuing to provide high level assistance.

– The permanent governance arrangements for the national diploma will be active in debates with the government on future funding conditions, including volume and price.



10 December 2010 4.37 p.m.

Supporting data Aviation qualifications receiving government funding in 2009 �� !"�#�$% ��& � ��

'�$� Qualification Title Responsible for Qualification

( �� Bachelor of Aviation Massey University

( ��Bachelor of Aviation Management with Honours

Massey University

( �� Postgraduate Diploma in Aviation Massey University

( �� Master of Aviation Massey University

) * �� Diploma in Aviation Science (ATPL) Nelson Marlborough Institute of Technology

) * ��Diploma in Aviation Science (Air Instruction)(Aeroplane)

Nelson Marlborough Institute of Technology

) * ��Diploma in Aviation Science (Management)(Aeroplane)


) * �� Certificate in Category C Flight Instructor Supervision


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�'�� Multi Engine Instrument Rating Ardmore Flying School

�+ �� Certificate in Aviation (Aeroplane) Whitireia Community Polytechnic

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) * ��Diploma in Aviation Science (Management) (Helicopter)


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National Certificate in Aeronautical Engineering (Maintenance Control)(L4), Level 4

ATTTO

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ATTTO

� �National Certificate in Aeronautical Engineering (Gas Turbine Overhaul), Level 4

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( �� Bachelor of Aviation Management Massey University

( �� Graduate Diploma in Information Sciences Massey University

( ) �� Internationally Validated Air Freight Courses

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strand in Aerodrome Control On Site, Level 7

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��National Diploma in Air Traffic Services with strand in Area Control On Site, Level 7

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The NZ School of Travel & Tourism

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10 December 2010 4.37 p.m.

Appendix 1: Aviation Project Steering Committee:

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Appendix 2: Examples of transferable skills in the proposed Diploma in Aviation

TECHNOLOGY & SCIENCE

23431 D aircraft technical knowledge & pof for ppl

100 3 10

23432 D helicopter technical knowledge & pof for ppl

100 3 10

26180 D technical knowledge of an aeroplane exceeding 5700kg MCTOW for a type rating

100 4 4

26181 D basic K of turbine engines 100 4 8

26186 DKO helicopter pof 100 4 6

26187 D general helicopter technical knowledge

100 4 6

26208 DKO aircraft pof &performance cpl

100 4 6

26209 Demonstrate general aircraft technical knowledge for a commercial pilot licence (aeroplane)

100 4 6

26805 DKO advanced aerodynamics, performance and systems knowledge (aeroplane) atpl

100 5 10

Encompasses:- engines and their operation, ancillary systems and principles of flight.

26821 DKO aerodynamics and aircraft systems for an atpl (helicopter)

100 5 8



10 December 2010 4.37 p.m.

The table above shows the broad topic, a short explanatory exemplifying the subtopics, the number and abbreviated title the registered unit standards that cover that topic, the proportion of the unit standard that covers the topic, and the Level and Credits of the standard.

LAW & REGULATIONS

23427 DKO air law ppl 100 3 5

26177 DKO air operations requirements

100 4 8

26203 DKO air law cpl 100 4 8

Encompasses: - specific interpretation of legislation for air operation and aviation

26807 DKO air law atpl 100 4 8

NAVIGATION PLANNING & INTERPRETATION

26191 D navigation skills cpl (heli) 100 4 4

26204 DKO air navigation & flight planning cpl

100 4 5

26808 DKO navigation & flight planning instrument flight

100 5 8

Encompasses:- mathematical, navigational & planning skills on occasion at high level

26809 DKO navigation & flight planning atpl

100 5 10



10 December 2010 4.37 p.m.

Appendix 3: Transferable skills required by CAA

Skills tabulated by CAA Advisory circulars, which describe the evidence to be collected and to what standard for the award of a pilot licence:

PPL & CPL METEOROLOGY

Weather interpretation and analysis

e.g. description of how El Niño and La Niña events influence the weather in New Zealand to Level 4

Meteorology and Aircraft Performance

e.g. explanation of the effect of ice accretion on aircraft performance to Level 4

Cloud / Front Identification e.g. explanation of the effect of moist valley air on cloud/fog formation to Level 4

Tropical Meteorology e.g. explanation of the origin, common location and associated weather of the South Pacific Convergence Zone to Level 4

Regional Meteorology e.g. differentiation between the equatorial trough and the inter-tropical convergence zone to Level 4

Hazardous Conditions e.g. explanation of the mechanics of a microburst to Level 4 to Level 4

PPL & CPL AVIATION LAW

Aviation Legislation e.g. description of the responsibilities of a licence holder with respect to changes in their medical condition, as laid down in CA Act 1990 S27 to Level 4

Accident / Incident Investigation

e.g. stating the requirement for the notification of accidents to Level 4

Airspace Classification and use e.g. description of the vertical limits and purpose of control zones to Level 4



10 December 2010 4.37 p.m.

PPL & CPL METEOROLOGY

Aviation Definitions e.g. definition of approximately 80 abbreviations and other terminology to Level 4

Aviation Documents e.g. knowledge of the documents that must be carried on an aircraft to Level 4



10 December 2010 4.37 p.m.

Appendix 4: Memorandum Of Understanding

National Diploma in Aviation – Pilot Qualification/s Memorandum Of Understanding dated 2 December 2010

PARTIES ATTTO

Aviation Industry Association

Flight Training Division AIA

Air New Zealand

Airways Corporation

RNZAF

NMIT

Brian Whelan

BACKGROUND Throughout 2010 the Parties have been working together on a project aimed at achieving the following goals:

• Funding is invested in aviation education and training to best meet industry needs

• Enhanced standards and quality of provision with increased national consistency where required

• There is an ongoing viable training infrastructure to meet industry's long term national and international goals

As a result of the project the Parties have collectively identified that there is a need to work together to develop and maintain national qualification/s in respect of pilot training



10 December 2010 4.37 p.m.

1 PURPOSE The purpose of this Memorandum of Understanding is to record the terms on which the Parties will work together to:

(a) Develop national qualification/s for pilots

(b) Monitor quality of delivery and assessment towards the national qualification/s

(c) Maintain and revise the national qualification/s to meet changing needs and requirements

(d) Gather and monitor stakeholder feedback to ensure the national qualification/s remains fit for purpose

(e) Promote the value of the national qualification/s to stakeholders and public

(f) A timeframe agreed by industry to replace existing sub-degree aviation pilot training qualifications

(g) How the proposed qualification is informed by the needs of aviation employers

(h) The process that has been followed to obtain flight training organisations’ endorsement of the proposed qualification

(i) How the proposed qualification would complement the degree level provision provided by Tertiary Institutions

(j) Whether there would be a need for grand-parenting provisions for students in qualifications that start in 2011 and continue into 2012

(k) Industry’s commitment to clarifying training and employment pathways for trainees that will be provided in conjunction with the new qualification, and how these will be an improvement on existing arrangements

(l) The form and function of the proposed training strands (for general aviation, commercial aviation fixed wing and helicopter flying) in the training and employment pathways for aviation pilots

(m) How the members of the Steering Group, and the wider aviation training industry, will foster an increase in the efficiency and currency of aviation pilot training provision



10 December 2010 4.37 p.m.

(n) How the pre-selection of students will be improved and standardised

(o) How the processes for auditing the quality of training will be improved and standardised

(p) How aviation employers, and the wider aviation industry, can make a greater contribution towards the costs of delivering aviation pilot training.

2 PRINCIPLES The memorandum is based on the following principles:

• Communication which embraces the spirit of collaboration, is responsible and effective and promotes a ‘no surprises approach’

• Recognition of the opportunity to work collaboratively and pursue solutions for the development of national pilot qualifications models, governance and career pathways.

3 MUTUAL UNDERTAKINGS The parties undertake as follows:

• To use all reasonable endeavours to ensure that matters under their respective control do not cause any breach of the memorandum.

• To report all significant matters having a direct bearing on the Memorandum to the other parties as soon as matters occur.

4 STEERING GROUP COMMITTEE Composition: The Steering Group shall comprise of one representative appointed by each Party.

Role: The Steering Group will undertake the following:

• Oversee how the Parties work together under this Agreement;

• Consider and approve recommendations from members regarding the Purpose of this Agreement and ensure delivery of these Purpose Agreement items;

• Where appropriate, the Chairperson will make public announcements on behalf of the parties in respect of the Memorandum Of Understanding.

Appointment/removal: A Party may at any time suspend, remove and replace the representative appointed by it, by providing notice in writing to the other parties.



10 December 2010 4.37 p.m.

Term of office: Each representative on the Steering Group shall hold office for the term of this Agreement, to 31 March 2011, unless they provide their resignation in writing to the Steering Group or are otherwise removed pursuant to clause 4.3 above.

Quorum: The quorum for meetings of the Steering Group is at least 50% of the representatives present (whether physically or by other electronic means throughout the meeting). No business shall be transacted unless a quorum is present.

Voting: Unless otherwise specified in this Agreement, all matters before the Steering Group will be decided by consensus. However, where a consensus decision cannot be reached on a matter, it will be put as a motion to be decided by majority of votes. If the voting is tied, the Chairperson will not have a second and casting vote.

Meetings: The Steering Group will meet at least once prior to 31 March 2011 and at a venue to be determined. Representatives must be given at least 14 Working Days written notice of a meeting. The Steering Group may conduct business and regulate its meetings as it considers appropriate, including but not limited to holding a meeting in person or by teleconference or other from of electronic communication.

Costs: Members of the Steering Group will each be responsible for their own costs associated with their representation on the Committee.

Chairperson: The Steering Group shall appoint a chairperson (from the members or an independent chairperson) who will hold office through to handover to a permanent governance body, intended to be no later than 31 March 2011. The chairperson may be re-appointed for further terms of one year.

5 RELATIONSHIP The parties shall not, under any circumstances, be considered an agent, partner, joint-venture, employee or fiduciary of the other parties.

6 NEW PARTIES TO THE MEMORANDUM New Party applies: In the event that a third Party wishes to join the memorandum, such third Party may apply in writing to the Steering Group. Such third Parties shall only become a Party subject to:

• Agreement by 50% of the Parties to this Agreement; and

• The new Party fulfilling reasonable conditions set by the Steering Group, which may include but are not limited to the new Party:

• Signing this MOU.



10 December 2010 4.37 p.m.

Steering Group representative: Unless otherwise determined by the Steering Group, a new Party may appoint a representative to the Steering Group.

7 PROBLEM RESOLUTION Any disputes will be resolved quickly and at the lowest appropriate level. When disagreements occur, the parties will work together in good faith to identify the reason for disagreement and what can be done to achieve agreement. Where appropriate the dispute will be referred to the parties’ highest level of governance, and thereafter to an agreed independent mediator or to the appropriate disputes tribunal.

8 TERMINATION Termination: A Party may terminate that Party’s rights under this Agreement for any reason or without cause by giving 20 Working Day’s notice in writing to the Steering Group. Clause 8.1 shall apply to that Party giving notice, and only that Party, as if this Agreement was being terminated.

Rights and obligations: Termination of this Agreement shall be without prejudice to any rights and/or obligations of the Parties existing at the time of termination.

9 EXECUTED AS AN AGREEMENT Signatories

Company Authorised Signatory Signature



10 December 2010 4.37 p.m.

Appendix 5: Draft Aviation Engineering Review Action Plan for 2011

Action Outcome Who When Status

Identify stakeholders for a working group.

Invite Training Providers, RNZAF, Air NZ, GA, AIA, and CAA to form and partake in an active working group.

Stuart/Johann Feb 2011

TBA

Current registered unit standards unpacked and reviewed to meet the requirements of the stakeholders.

ATTTO will work with the work group to review the relevance, credit and level of the existing registered standards. Overlaps to be eradicated to reduce the size and funding needs.

Lead: Johann and working group.

Electronic consultation will take place via SharePoint.

Starting towards end of Feb 2011 and continue to end July 2011.

TBA

Develop new unit standards to fill gaps as identified.

ATTTO to develop new standards if the need arises. Proliferation and funding must be kept in mind by the work group.


Electronic consultation will take place via SharePoint.

Starting towards end of Feb 2011 and continue to end July 2011.

TBA

Submit draft unit standards to work group for feedback and finalisation.

Approval granted on the basis of sufficient stakeholder and provider input into development process.

Lead ATTTO with working group.

Standards submitted to workgroup by end June 2011.

TBA

Submit final unit standards to NZQA for evaluation.

Long-term success of unit standard development and review ensures quality and relevance.

Lead ATTTO with working group and long-term governance group.

Standards submitted to NZQA for evaluation by end July 2011.

TBA

Unpack existing registered qualifications.

ATTTO will work with the work group to review the relevance, credit and level of the existing registered qualifications


Electronic

Beginning of August 2011.

TBA



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Action Outcome Who When Status

keeping TEC funding model in mind. consultation will take place via SharePoint.

Modular training packages with achievable chunks of knowledge and skills to be explored.

ATTTO to explore the possibility of more flexible and achievable modular chunked qualifications. This will be done in collaboration with work group.

ATTTO with working group.

Beginning of August 2011.

TBA

Submit draft qualifications to work group for feedback and finalisation.

Approval granted on the basis of sufficient stakeholder and provider input into development process.

ATTTO with work group.

End of August 2011.

TBA

Submit final qualifications to NZQA for evaluation.

Long-term success of qualification development and review ensures quality and relevance.

ATTTO. Mid September 2011.

TBA

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