"permission" means a permission under this Part (other than paragraph 19(2)(c) or section 27A), but does not include an AOC.

Omit "subsection 27AE(1)", substitute "section 28A".

Omit "and 28BH", substitute ", 28BH and 28BI".

Repeal the subsection, substitute:

(2)

If a condition of an AOC referred to in paragraph (1)(a) is breached, the AOC continues, despite the breach, to authorise flights or operations to which the condition relates.

(2A)

If a condition of an AOC referred to in paragraph (1)(b) or (1)(c) is breached, the AOC does not authorise any flight or operation to which the condition relates while the breach continues.

Omit "or" (last occurring).

Repeal the paragraph.

Insert:

(1A)

CASA must not suspend or cancel an AOC of the kind to which paragraph (1)(a) applies or an authorisation of the kind to which paragraph (1)(b) applies except:

(a)

to ensure that the aircraft's operation, maintenance and airworthiness are of a standard that CASA considers necessary in the interests of the safety of air navigation; or

(b)

as provided by subsection (1B).

(1B)

Subject to subsection (1C), CASA may suspend or cancel an AOC of the kind to which paragraph (1)(a) applies or an authorisation to which paragraph (1)(b) applies if the condition of the AOC or the condition relating to the authorisation, as the case may be, that section 28BI is complied with has been breached.

(1C)

To the extent that an AOC, or an authorisation contained in a mixed authority AOC, authorises carriage by air that is not covered by Part II, III or IV of the Civil Aviation (Carriers' Liability) Act 1959 , CASA does not have power to suspend or cancel the AOC or authorisation because of a breach of the condition that section 28BI is complied with unless the holder of the AOC is:

(a)

a trading corporation formed within the limits of the Commonwealth (within the meaning of paragraph 51(xx) of the Constitution); or

(b)

a foreign corporation within the meaning of that paragraph; or

(c)

a corporation formed in a Territory.

Omit "or" (last occurring).

Repeal the paragraph.

Insert:

(2A)

CASA must not suspend or cancel an AOC of the kind to which paragraph (2)(a) applies or an authorisation of the kind to which paragraph (2)(b) applies except:

(a)

to ensure compliance with the provisions of this Act, the regulations, and the Civil Aviation Orders, relating to safety; or

(b)

as provided by subsection (2B).

(2B)

Subject to subsection (2C), CASA may suspend or cancel an AOC of the kind to which paragraph (2)(a) applies or an authorisation to which paragraph (2)(b) applies if the condition of the AOC or the condition relating to the authorisation, as the case may be, that section 28BI is complied with has been breached.

(2C)

To the extent that an AOC, or an authorisation contained in a mixed authority AOC, authorises carriage by air that is not covered by Part II, III or IV of the Civil Aviation (Carriers' Liability) Act 1959 , CASA does not have power to suspend or cancel the AOC or authorisation because of a breach of the condition that section 28BI is complied with unless the holder of the AOC is:

(a)

a trading corporation formed within the limits of the Commonwealth (within the meaning of paragraph 51(xx) of the Constitution); or

(b)

a foreign corporation within the meaning of that paragraph; or

(c)

a corporation formed in a Territory.

Add:

The holder of an AOC must at all times comply with whichever of the following provisions are applicable:

(a)

subsection 41E(1) or (1A) of the Civil Aviation (Carriers' Liability) Act 1959 ; or

(b)

subsection 41E(1) or (1A) of the Civil Aviation (Carriers' Liability) Act 1959 as that subsection has effect under a law of a State.