Commonwealth Numbered Acts

AIRLINES EQUIPMENT AMENDMENT ACT 1981 No. 77 of 1981 - SECT 9

9. The Principal Act is amended by adding at the end thereof the following
sections: Undertakings by regional operators

"16. (1) The Secretary to the Department of Transport shall not give
permission under the Customs (Prohibited Imports) Regulations for the
importation by -

   (a)  a regional operator; or

   (b)  a person acting on behalf of a regional operator, of any turbo jet
        aircraft, being aircraft having a capacity exceeding 30 passengers or
        a maximum payload exceeding 3,500 kilograms, or of airframes or
        engines for aircraft of that kind, unless the regional operator gives
        to the Secretary an undertaking, in the form approved by the Minister,
        to operate the domestic passenger air services of the regional
        operator in accordance with the obligations from time to time
        applicable in relation to the regional operator under section 19.



"(2) Nothing in sub-section (1) shall be taken as limiting the discretion of
the Secretary to the Department of Transport to refuse to give permission
under the Customs (Prohibited Imports) Regulations to any person to import
aircraft, airframes or aircraft engines. Undertakings by cargo operators

"17. (1) The Secretary to the Department of Transport shall not give
permission under the Customs (Prohibited Imports) Regulations for the
importation by -

   (a)  a cargo operator; or

   (b)  a person acting on behalf of a cargo operator, of any turbo jet
        aircraft, being aircraft having a maximum payload exceeding 3,500
        kilograms and which are to be used for the carriage of cargo, unless
        the cargo operator gives to the Secretary an undertaking, in the form
        approved by the Minister, to comply with the obligations applicable in
        relation to the cargo operator under section 21.



"(2) Nothing in sub-section (1) shall be taken as limiting the discretion of
the Secretary to the Department of Transport to refuse to give permission
under the Customs (Prohibited Imports) Regulations to any person to import
aircraft. Determinations by Minister in relation to regional operators

"18. (1) Subject to sub-section (7), this section applies to a regional
operator -

   (a)  who has given an undertaking in accordance with sub-section 16 (1); or

   (b)  who has given an undertaking, in connection with the acquisition of an
        aircraft, to comply with the obligations applicable in relation to a
        regional operator to which this section applies.



"(2) The Minister shall, in accordance with sub-sections (4) and (5), in
relation to a specified future period in relation to each regional operator to
which this section applies -

   (a)  estimate the total traffic that will be carried by that regional
        operator in operating passenger air services on prescribed routes; and

   (b)  determine the maximum aircraft capacity of the aircraft required by
        that regional operator for the purposes of operating passenger air
        services on prescribed routes.



"(3) A reference in sub-section (2) to prescribed routes, in relation to a
regional operator to which this section applies, shall be read as including a
reference to any trunk routes over which that regional operator is permitted
to operate scheduled passenger services in accordance with paragraph 6 (1) (d)
of the agreement referred to in section 5 of the Airlines Agreement Act 1981.



"(4) In making an estimate and a determination under sub-section (2) in
relation to a regional operator, the Minister shall have regard to -

   (a)  the functions of regional operators;

   (b)  the traffic carried by the regional operator before the making of the
        estimate and determination;

   (c)  the rates of traffic increase in the regional operator's services;

   (d)  the types, speeds and reasonable extent of utilization of the aircraft
        proposed to be used by the regional operator;

   (e)  the passenger revenue load factor that would be the optimum passenger
        revenue load factor for the operation of aircraft on each prescribed
        route on which the regional operator will carry traffic during the
        period concerned, due consideration being given to the interests of
        the public and the maintenance of a proper relation between revenue
        and costs;

   (f)  the necessity for the overhaul and maintenance of aircraft;

   (g)  the necessity for having aircraft available to meet emergency
        situations;

   (h)  the operation of paragraph 6 (1) (c) of the agreement referred to in
        section 5 of the Airlines Agreement Act 1981;

   (j)  aircrew training requirements; and

   (k)  any other factors affecting the stability of the domestic air
        transport industry.



"(5) The Minister may make an estimate and determination under sub-section (2)
in relation to a regional operator to which this section applies at any time,
but shall make such an estimate and determination in relation to a regional
operator to which this section applies before the expiration of 60 days after
-

   (a)  the importation by or on behalf of that regional operator of any
        aircraft, airframes or engines in relation to the importation of which
        an undertaking has been given by that regional operator under
        sub-section 16 (1); or

   (b)  the acquisition by that regional operator of an aircraft in connection
        with the acquisition of which an undertaking has been given by that
        regional operator to comply with the obligations applicable in
        relation to a regional operator to which this section applies.



"(6) Where the Minister makes an estimate and determination under sub-section
(2) in relation to a regional operator to which this section applies, the
Minister shall make another estimate and determination under that sub-section
in relation to that regional operator within each succeeding period of 12
months after the making of that first-mentioned estimate and determination.



"(7) Where the Minister makes an estimate and a determination under
sub-section (2) in relation to a regional operator, the Minister shall, not
less than 90 days before the commencement of the period in relation to which
that estimate and determination were made, give notice of the terms of the
estimate and determination to the regional operator.



"(8) This section does not apply to a regional operator during any period
during which neither that regional operator nor any body (whether corporate or
unincorporate) in which that regional operator has a controlling interest
owns, leases or has the use of turbo jet aircraft having a capacity exceeding
30 passengers or a maximum payload exceeding 3,500 kilograms. Obligations
applicable to regional operators

"19. (1) The obligations that are, from time to time, applicable in relation
to each regional operator to which section 18 applies are the following:

   (a)  where the Minister has, under sub-section 18 (7), given notice to that
        regional operator of the terms of an estimate and determination in
        relation to a period -

        (i)    an obligation not to provide, during that period, passenger air
               services capable of performing a number of revenue passenger
               kilometres in excess of the aircraft capacity specified in that
               determination; and

        (ii)   an obligation to provide, during that period, passenger air
               services on prescribed routes capable of performing a number of
               revenue passenger kilometres that is as near as is practicable
               to the aircraft capacity specified in that determination;

   (b)  where, at any time during a period in relation to which the Minister
        has made a determination under sub-section 18 (2) in relation to that
        regional operator, the Minister -

        (i)    notifies the regional operator that he is satisfied that the
               aircraft owned, operated, or otherwise available for use, by
               the regional operator exceed the aircraft required to provide,
               in that period, the aircraft capacity determined in relation to
               the regional operator; and

        (ii)   directs the regional operator to dispose, within the time
               specified by the Minister, of aircraft to the extent that the
               Minister considers necessary to eliminate the excess, an
               obligation to comply with the direction within the time
               specified by the Minister in a manner that does not involve a
               contravention by that regional operator of the obligation set
               out in paragraph (d);

   (c)  an obligation not to purchase, lease or otherwise obtain the use of
        any aircraft unless the Minister has certified in writing that, in his
        opinion, the obtaining of the aircraft will not result in the regional
        operator having the use of any aircraft in excess of the aircraft
        required to provide the aircraft capacity determined from time to time
        under sub-section 18 (2) in relation to that regional operator, and
        that, in his opinion, the obtaining of an aircraft of the type
        proposed to be obtained will not, having regard to the types of
        aircraft operated by the regional operator or in respect of which a
        certificate under this paragraph has been or is proposed to be issued,
        be detrimental to the stability of the domestic air transport
        industry;

   (d)  an obligation not to dispose of an imported aircraft to a person other
        than -

        (i)    the Commission, the Company or Qantas Airways Limited;

        (ii)   a person who gives to the Minister, before the acquisition of
               the aircraft by that person, an undertaking in the form
               approved by the Minister not to use the aircraft in Australia;

        (iii)  a regional operator who gives to the Minister, before the
               acquisition of the aircraft by that regional operator, an
               undertaking in the form approved by the Minister to comply with
               the obligations applicable in relation to a regional operator
               to which section 18 applies; or

        (iv)   a cargo operator who gives to the Minister, before the
               acquisition of the aircraft by that cargo operator, an
               undertaking in the form approved by the Minister to comply with
               the obligations applicable in relation to a cargo operator to
               which section 21 applies; and

   (e)  an obligation to furnish to the Minister, within such times as the
        Minister specifies, such information in respect of traffic as the
        Minister requires.



"(2) In this section, 'imported aircraft' means an aircraft in relation to the
importation of which a person has given an undertaking in accordance with
section 16 or 17.



"(3) A reference in sub-section (1) to prescribed routes, in relation to a
regional operator, shall be read as including a reference to any trunk routes
over which that regional operator is permitted to operate scheduled passenger
services in accordance with paragraph 6 (1) (d) of the agreement referred to
in section 5 of the Airlines Agreement Act 1981. Consultation between regional
operators and Secretary

"20. (1) The Secretary to the Department of Transport may, from time to time,
convene conferences to be attended by -

   (a)  representatives of the Department of Transport and a regional
        operator; and

   (b)  other persons invited by the Secretary to the Department of Transport,
        for the purpose of considering matters relevant to the making of
        estimates and determinations by the Minister under section 18 in
        respect of that regional operator.



"(2) The Secretary to the Department of Transport shall report to the Minister
any conclusions arrived at or views expressed at a conference held in
pursuance of sub-section (1), and the Minister shall, before making an
estimate or determination under section 18 in relation to a regional operator,
give full consideration to those conclusions or views. Obligations applicable
to cargo operators

"21. (1) This section applies to a cargo operator -

   (a)  who has given an undertaking in accordance with section 17; or

   (b)  who has given an undertaking, in connection with the acquisition of an
        aircraft, to comply with the obligations applicable in relation to a
        cargo operator to which this section applies.



"(2) The obligations applicable in relation to a cargo operator to which this
section applies are the following:

   (a)  an obligation not to use, or permit the use of, an imported aircraft
        owned or available for use by that cargo operator for the transport of
        passengers;

   (b)  where the Minister directs the cargo operator to dispose, within the
        time specified by the Minister, of an imported aircraft - an
        obligation to dispose of that aircraft within the time specified by
        the Minister in a manner that does not involve a contravention by that
        cargo operator of the obligation set out in paragraph (c); and

   (c)  an obligation not to dispose of an imported aircraft to a person other
        than -

        (i)    the Commission, the Company or Qantas Airways Limited;

        (ii)   a person who gives to the Minister, before the acquisition of
               the aircraft by that person, an undertaking in the form
               approved by the Minister not to use the aircraft in Australia;

        (iii)  a regional operator who gives to the Minister, before the
               acquisition of the aircraft by that regional operator, an
               undertaking in the form approved by the Minister to comply with
               the obligations applicable in relation to a regional operator
               to which section 18 applies; or

        (iv)   a cargo operator who gives to the Minister, before the
               acquisition of the aircraft by that cargo operator, an
               undertaking in the form approved by the Minister to comply with
               the obligations applicable in relation to a cargo operator to
               which this section applies.



"(3) In this section, 'imported aircraft' means an aircraft in relation to the
importation of which a person has given an undertaking in accordance with
section 16 or 17.".