Aviation Workforce Skills Study KEY ISSUES PAPER January 2016 tlisc.org.au
Aviation Workforce Skills Study - Key Issues Paper The purpose of this paper is to provide stakeholders with a summary of the key themes and issues that have been identified so far by the study and to verify their accuracy. The contents of this paper are drawn from industry consultations and other research activities completed by TLISC during October December 2015. These activities are part of the Aviation Workforce Skills Study (AWSS), work undertaken by TLISC on behalf of the Commonwealth s Department of Infrastructure and Regional Development. The AWSS is a study into the state of the aviation workforce in Australia which seeks to identify the industry s workforce and skill needs, as well as the actions that can be taken by industry to meet those needs. This study responds to the need, recognised by industry and government alike, to support the effective, safe growth of the aviation sector in Australia. The sector is under tremendous pressure to adapt in a very dynamic environment with a rapidly growing cargo and passenger traffic, stringent regulations, and fastpaced technology innovation. As such, the availability of skilled and trained staff is crucial to the ongoing viability of our aviation industry. How to provide feedback Stakeholders are invited to submit their comments on the key themes and issues outlined in this paper by close of business on Monday, 15th February 2016. In considering the key issues and themes identified in this paper, we are keen to have any feedback that either confirms your issue has been covered, or else raises an issue you feel should be addressed in the final report but has not been covered here. It is acknowledged that the information provided about issues in this paper is deliberately brief, and that they will be discussed in greater depth in the final report. The purpose of this paper is to validate and confirm that the final report is an accurate account of stakeholder concerns. Responses can be emailed to research@tlisc.org.au For further information contact either: Amanda Thomas Dan Minton General Manager - Strategy & Policy Senior Training Package Specialist Aviation amanda.thomas@tlisc.org.au dan.minton@tlisc.org.au (02) 6163 7227 0459 021 115
Upcoming Final Report This issues paper is a substantially abridged version of the major themes that will be discussed in detail in the final report. This final stage of consultation has been included to confirm that the key AWSS findings identified so far are subject to final verification by aviation industry stakeholders. Appendix A to this paper outlines the scale and depth of statistical data analysis that will be contained in the final AWSS report. These detailed results have purposely not been included in the issues paper. The final report will also provide information that can inform governments future skills development and training policies for the aviation sector, as well as identifying potential opportunities for expansion of the Australian aviation training market. Information in this paper is summarised under the following areas: Regulatory & Licencing Issues Flight Operations Aviation Maintenance Aerodrome Operations Regional Aviation
Economic significance of the Aviation Industry in Australia According to IBISWorld the aviation sector underpins Australian business and tourism and has estimated annual revenue of A$41.3 billion, adding an estimated A$12.4 billion to the country s GDP 1. It has five main components: domestic commercial aviation, international commercial aviation, general aviation, air-freight transport and aviation support infrastructure. Domestic commercial passenger transport is a critical part of Australia s economy, with the Sydney- Melbourne and the Sydney-Brisbane routes respectively ranking as the world s 4th and 13th busiest routes by seat capacity. The industry is well placed to benefit from the fast increasing air passenger numbers in the Asia-Pacific region, with important flow-on effects for the Australian tourism. The share of Aviation in freight transport is growing rapidly, in part due to the strong growth in high-value, time-sensitive parcel traffic, and new transport hubs are increasingly being developed in the immediate vicinity of airports. Finally, the Aviation sector brings essential and critical services to rural and remote areas across Australian states and territories. Strong growth in passenger and cargo movement by air in the Asia-Pacific will fuel the Aviation sector s ongoing need for baggage handling and ground crew staff. However, attraction and retention are difficult and require a greater commitment to raising skill levels and building career paths. Domestic demand for Pilots remains relatively stable, but growing demand in Asia is likely to increase competition for skills. The graph below provides an illustration of the Aviation workforce from 2006 2020. The final report for this study will contain significantly more detailed demographic information of the Aviation workforce including analysis by occupation, gender, age and licence type. Estimates (2006-15) and short-term forecasts (2016-20) of employment the Aviation industry (includes scheduled and non-scheduled passenger transport, air freight, and aerodrome operations) Source: IBISWorld 2015 1 IBISWorld. Airport Operations in Australia. Industry Report I5220. IBISWorld, Melbourne, October 2014. IBISWorld. Domestic Airlines in Australia. Industry Report I1402. IBISWorld, Melbourne, November 2014. IBISWorld. International Airlines in Australia. Industry Report I4901. IBISWorld, Melbourne, September 2014. IBISWorld. Air freight Services in Australia. Industry Report OD1577. IBISWorld, Melbourne, September 2014. IBISWorld. Non-scheduled Air Transport in Australia. Industry Report I4903. IBISWorld, Melbourne, September 2014. IBISWorld. Scenic and Sightseeing Transport in Australia. Industry Report I5010. IBISWorld, Melbourne, December 2014
Study Methodology The AWSS built on the methodology used to develop TLISC s annual Transport and Logistics Industry Environmental Scan (E-Scan). It draws on the extensive data collected by various government agencies on the aviation industry, as well on other publicly-available data and on TLISC s own research. The Aviation occupations included in the study are: pilots, cabin crew, baggage handlers, airport operations, aircraft maintenance and engineering, and engineering occupations associated with avionics manufacture and repair. Aviation occupations in the Defence force are considered where there is evidence of job sharing impacting the Aviation industry s workforce situation (principally pilots). The following ANZSCO occupations are covered by the study: 231111 Aeroplane Pilot 231112 Air Traffic Controller 231113 Flying Instructor 231114 Helicopter Pilot 231199 Air Transport Professionals nec 323100 Aircraft Maintenance Engineers nfd 323111 Aircraft Maintenance Engineer (Avionics) 323112 Aircraft Maintenance Engineer (Mechanical) 323113 Aircraft Maintenance Engineer (Structures) 451711 Flight Attendant 721911 Aircraft Baggage Handler and Airline Ground Crew 733112 Aircraft Refueller The project comprised an extensive data gathering phase, during which data was requested and collected from government agencies (primarily CASA records, ABS Census data, NCVER VET enrolment, publicly funded VET training data, and BITRE statistics) and other sources (IBISWorld industry reports, Boeing and Airbus forecasts, industry analysis reports published by consultancies, company annual reports, TLISC s own industry intelligence and research, and any other relevant sources). The data collected was consolidated and analysed in detail to evidence skills shortages and other key workforce and training issues. These data were supplemented by findings from two extensive surveys distributed to industry and training stakeholders during the research phase. A call for submissions was sent out, seeking detailed observation on skills and training issues across the industry. In total, more than two hundred stakeholders in the Aviation industry provided input into this study.
1. AWSS Key Themes and Issues Summary The Aviation Workforce Skills Study has so far identified a wide range of issues related to Australia s aviation environment to be considered by policy makers and industry stakeholders. These include: 1.1. There is strong evidence of an identified need for an industry-wide approach to aviation workforce planning and development, supported by streamlined policy and regulation. This includes the collation, aggregation and sharing of all relevant aviation occupational licencing and training data with all state and federal agencies with an interest in aviation workforce skilling outcomes. 1.2. The current costs barriers faced by individuals and businesses are well understood, however there i s a need for the industry to invest more in its current and future workforce through public and private funding mechanisms. 1.3. There are strong international opportunities for Australian aviation training providers, both in terms of overseas operations and involvement in capacity building efforts have been identified through survey responses and industry intelligence and feedback. 1.4. Significant issues were raised during industry consultation regarding the status of aviation safety regulatory reform in Australia and the potential impact of these on key occupations involved in the reforms, at the employer and individual level. 1.5. The implementation of current regulatory reforms into industry operations was continually raised as a concern, with many industry stakeholders questioning the cost/benefit ratio of the reforms for the industry with the potential flow-on for even less budget to be available for staff training in the future. 1.6. Some survey respondents pointed to the need for greater centralisation and coordination in workforce planning across the aviation industry, to better inform regulatory and policy decisions that may affect the industry in the future. 1.7. Access to a wide range of data sources related to aviation occupations, licencing data, and publiclyfunded tertiary and VET funding information is critical for policy makers to make informed decisions related to aviation skilling strategies.
2. Flight Operations Summary 2.1 While commercial Aeroplane and Helicopter Pilots are in high demand, the occupation cannot be qualified as being in shortage due to the large number of candidates with basic licences and skill sets acquired as recreational or General Aviation (GA) pilots. 2.2 The poaching of pilots is an issue affecting industry s willingness to invest in training. 2.3 Industry costs of pilot training and skill development to captain level, including flight hours and experience, simulator time, salary/wages as first officer is considered significant. 2.4 Bonded cadetships are increasingly prevalent across the industry (e.g. Rex, Virgin, British Airways). 2.5 Airlines are targeting lifestyle factors to attract and retain staff at the appropriate time in their career. 2.6 There is a demonstrated chronic shortage of Flight Instructors and Flight Examiners for both aeroplanes and helicopters. Similar shortages are experienced in other Western Countries, with fierce competition for some specialist skill sets. Multi crew training and advanced simulator training skills are in particularly high demand. 2.7 There is a need for an industry-wide approach and strategy to training the pilots needed. 2.8 Flight training schools have raised significant concerns about the impact of regulatory compliance (Aviation and VET) costs on their ongoing business viability. 3. Aviation Maintenance Summary 3.1 A majority of industry stakeholders and training providers operating in the Aviation Maintenance sector described a shortage of aircraft maintenance engineering trainers, and a fierce competition for skilled and experience aircraft maintenance engineers across all specialties. This is to be put in the context of generalised dearth of engineering candidates with the required mechanical aptitudes. 3.2 The offshoring and/or outsourcing of aircraft maintenance functions by Australian airlines in recent years have had a tremendous effect on the maintenance engineering training landscape. Several generalist engineering training providers have stopped their Aviation courses. There is significant concern within the industry that closing engineering training facilities will impede the ability of training providers and maintenance businesses to rebound or take advantage of international growth opportunities. 3.3 Some employers (particularly in rural and remote areas) express concern that their investment in training apprentices may be lost as graduates move on to more attractive positions, leading to chronic skill leakages in areas requiring specialist skills. 3.4 Aviation maintenance training schools have raised significant concerns about the impact of regulatory compliance (Aviation and VET) costs on their ongoing business viability. 3.5 Issues were also raised about differences in availability of training or access to engineering services on a state or territory basis. The issues raised related to regulatory and/or licencing challenges in particular locations, that were not experienced to the same extent elsewhere.
4. Aerodrome Operations Summary 4.1 Deloitte Access Economics estimates that there are 6,900 Full Time Equivalents employed in core airport operations. 4.2 There are 250 airports with Regular Public Transport (RPT) and 2,000 smaller airfields and landing strips within the Australian aviation environment. 4.3 In recent years there has been a decline in regional airports with RPT services, with a net decrease of 20 airports since 2005 (45 airports were closed while 25 opened). Rural and remote areas in Queensland and the Northern Territory were particularly affected. 4.4 High staff turnover rates are a challenge and risk for the viability of aerodrome operations. The annual employee replacement rate is estimated to be 25%, indicating a lack of depth and experience in many operational and support roles. 5. Regional Aviation Summary 5.1 Regional Aviation infrastructure remains an issue, principally around meeting regulatory requirements and ensuring that sufficient staff have access to affordable and necessary training to meet regulatory compliance. This is compounded by a rapidly ageing workforce in many key occupations. 5.2 Many stakeholders reported that access to high quality aviation maintenance for General Aviation operations is often problematic. 5.3 Business management issues including higher operation and construction costs, and access to skilled and potentially trainable workforce within regional areas are issues of considerable concern. The impact of workforce retention was cited by many as an ongoing challenge to recruit and then keep capable employees. 5.4 A lack of access to training and/or other funding available to the agricultural sector is a problem for businesses offering aerial agricultural services.
Appendix A Draft Structure of AWSS Final Report Executive Summary Background Methodology I Descriptive statistical analysis of the Aviation workforce in Australia - Size of Aviation employment in Australia o By job type (ABS, LMIP, ICAO) o By State o Australian airlines staff expenditure - Demographics (ABS data, LMIP estimates, TLISC research) o Age profile o Gender breakdown o Country of origin o Hours worked o Full-time status - Educational attainment II Forecasts of labour demand and skill needs for the Australian Aviation industry - Historical background o Historical labour demand for Aviation occupations (employment size history, IVI) o Historical occupational shortages (TLISC) o Labour issues (TLISC) o Skills in demand (TLISC) - Scenarios for future labour demand o General macroeconomic trends affecting the Aviation market o Market growth forecasts (Boeing, Airbus, ICAO, IBISWorld) o Comparison of Boeing, LMIP, IBISWorld, CEET, employment growth forecasts o Emerging skills (TLISC) III Impact of Aviation training in Australia - Training needs (TLISC/CEET forecasts, US GAO forecasts, ICAO data) - Publicly-funded VET enrolments (NCVER, TLISC) - Costs of training - Industry views of the Australian aviation training system (TLISC survey / submissions / stakeholder consultations) o Training outcomes in the workplace (relevance of training and productivity outcomes) o Quality of training delivery and assessment o Impact of costs of training - Training providers challenges (TLISC survey / submissions / stakeholder consultations) o Adjusting to regulatory changes o Trainers/Assessors recruitment difficulties o Pressing skill needs IV - International benchmark and regional integration opportunities - Assessment of the Australian Aviation training brand o Australian Aviation industry safety record (CASA, ICAO) o Overseas aviation student demand o Ability of the Australian aviation training market to meet demand from international students o Australian aviation training providers operating overseas - Current status of regional skills integration and labour mobility o Industry and RTO experience with recognition of prior learning and experience and licence conversions o Industry experience with recruiting overseas-trained candidates - Implications for meeting the skill needs of the Australian Aviation industry and international opportunities for the Australian Aviation training industry
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