Aviation is regulated into different categories, each of which has individual requirements and operational constraints. Terms such as 'Regular Public Transport (RPT)', 'charter', 'aerial work' and 'private' tend to get mixed but are very distinct types of operations. As a result, its important to understand what the main terms actually mean. So, to help avoid confusion, in this article, we take a look at the key differences.

  • Regular Public Transport (RPT): Applies to airline operations, which are subject to the highest level of regulatory scrutiny. These are scheduled operations between public airports, for which a ticket can be purchased without special arrangements.
  • Charter: Covered by less stringent regulations in terms of aircraft equipment and maintenance, operating standards and aircrew qualifications. Operations in this category typically have custom requirements with aircraft offered for 'hire and reward'.
  • Private: Generally refers to recreational flying. Never the less, a company operating its own fleet of aircraft may have a private operation, only used for their own private or business use and do not receive reward from any other user.

Many people fall into the trap of mixing charter and private categories by referring to a 'private charter'. What most companies are likely referring to when saying "private charter" is adhoc, executive or spot charter - one-off movements of small groups between chosen locations, such as moving a board around prospective greenfield sites.

Aerial Work is another category, which encompasses survey, external load, photographic work, aerial line inspections, and other specialist operations.

Fly-in, Fly-Out (FIFO) operations to sites, such as producing mines, may be regularly scheduled, but are actually charter flights. FIFO is generally used to refer to chartered fixed wing aircraft flying on long-term contracts, but isn't a separately regulated category, and is subject to no additional scrutiny. Similarly helicopter operations flying crew changes to offshore oil and gas platforms are also charter flights, as are short-term exploration support flights to drill ships and rigs.

A charter AOC is the starting point when choosing your carrier

An aircraft operator is prohibited from flying 'for hire and reward' without a commercial Air Operators Certificate (AOC). Charter Air Operator regulations are designed specifically to promote suitable standards for pilots, maintenance personnel and aircraft.

Commercial pilots sit more comprehensive examinations to gain their licenses and require more flying hours than private pilots. Maintenance personnel similarly require higher qualifications. Aircraft operators must demonstrate their ability to manage commercial operations through meeting a series of regulatory requirements that are not placed on private operations. They may have to demonstrate their financial viability and must appoint appropriately qualified and experienced personnel to control flying and maintenance activities.

These responsible appointees must be individually approved by aviation authorities and must have the appropriate experience to conduct the role within the particular company. In addition to this, charter operators have to demonstrate that they have suitable company systems to ensure compliance with these regulations.

AOC holders also have to meet insurance requirements, which protect the hirer.

With so much regulation, why have a company aviation policy?

National aviation regulations deal with the outer boundaries of what is permitted within any category of aviation. A pilot with 150 to 200 hours of experience can sit their exam to become a commercial pilot and carry passengers. This is a regulatory minimum, but most companies would impose a higher requirement on overall experience, consistent with the operation to be conducted. An aviation policy allows a 'hirer', to place a requirement on the aircraft operator, to meet a higher set of operational standards than those stipulated by the governing authority. It allows 'hirers' to ensure that additional risk mitigation procedures, which are tailored to the operation, are adopted.

Get it right at the tender stage

Implementation of a policy and procedure should precede the tendering stage. The main element involved in tendering is that the right aircraft is specified in the contract and the correct level of support is available to support the proposed operation. Depending on the environment in which the operation is being performed, the aircraft to be used will also vary, as different criteria should be applied when flying over different terrains, such as water, jungles, etc. Other requirements also apply. The hirer needs to ensure that they are named as co-insured on the charter operator's insurance policy, otherwise their recourse is limited in the event of an incident.

Having reflected policy and procedures in tender requirements, the company needs to verify that they are being followed. Competition in the charter industry is fierce, and the financial incentives for cutting corners are great, particularly for operators seeking to establish themselves for the first time in the aviation charter market place. Compliance with an aviation policy can be monitored by an operational and technical audit of the aircraft operator. Experienced third-party personnel are engaged by the company to act on their behalf and ensure the operator is complying with the policy and procedures required to conduct a safe and efficient operation.

Tender and Purchase Order documents need to contain detailed specifications for crew qualifications and experience, aircraft type and equipment, and operational policies. This has the effect of levelling the playing field, so that the charter companies that do spend time and money on training and equipment and are rewarded for their investment. Without appropriate reward, they will not have the opportunity to deliver the level of service that is quite reasonably expected by client companies with a focus on safety and efficiency.

At SGS, we offer you a broad range of specialized aviation advisory services - from airport management consulting and aviation training consulting to airline quality audits - to help your aviation business run safely, on time and on budget.

For further information regarding aviation policies, visit the SGS Aviation page or contact:

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