And you thought that the US' FAA was the only one holding their hand out? Australia’s aviation industry is being urged to play a key role in developing new cost recovery plans for the Civil Aviation Safety Authority. Consistent with Federal Government policy, CASA is adopting new funding guidelines which will see a phased reduction in fuel excise from 2008 and no increase in funding from government appropriations.

The guidelines also require CASA to have efficient and effective financial management, self sustainability and a link between funding and aviation industry activity. A strategy to meet these guidelines has been developed which will see CASA move to the full cost recovery for regulatory services provided to the aviation industry.

According to CASA, revenue raised from regulatory services will rise from the current level of $5 million a year to $20 million by 2008-09. The increase in cost recovery would mean fees for services would make up 16 per cent of CASA’s revenue by 2008-09, with the remaining 84 per cent coming from fuel excise and government funding.

The aviation industry is being asked to comment on a discussion paper which looks at various options for cost recovery. The paper provides a set of principles for cost recovery and proposals for raising revenue.

Proposals range from increasing the number of services CASA charges for and raising the level of fees, to introducing a wider range of registration and licensing fees with regular renewal requirements.

CASA’s chief operating officer, Bruce Gemmell, says the principles and options in the discussion paper are simply proposals at this stage.

“CASA has not made any decisions on cost recovery at this point and before we do make decisions we want input from the aviation industry,” Mr Gemmell says.

“I encourage those involved in Australian aviation to read the discussion paper and send in their comments and ideas.

“We have set up a special email address for feedback - costrecovery@casa.gov.au”

FMI: http://casa.gov.au/corporat/costrecovery.htm