THIS MONTH, we return to an issue that is continuing to cause panic and distress within some quarters of the South African commercial aviation industry. It is also a topic that has been the subject of much analysis and discussion in various articles in past editions of this journal. In some of quarters of the industry, apprehension is running high, with many believing that B-BBEE will lead to the demise of their companies. It is, therefore, necessary to return to this subject as the aviation industry confronts the practical implementation phase of B-BBEE.
It will be remembered that in terms of the B-BBEE Codes of Good Practice and the associated Domestic Aviation B-BBEE Scorecard, all companies with an annual turn-over of less than R5-million are classified as Exempt Micro-Enterprises (EMEs) and are exempt from complying with any scorecard elements. So the relevant B-BBEE scorecard requirements only apply to those companies having a turnover in excess of R5-miilion. Companies falling into the turnover bracket ranging from R5-million to R35-million have to comply with a choice of any four elements of the scorecard. Those companies with turnovers in excess of R35-million are required to comply with all the elements on the Domestic Aviation Scorecard.
However, the news coming from the SA Government regarding BBBEE compliance within the aviation sector is anything but negative or cataclysmic. Over the past few months, both the international and domestic air service licensing councils have told prospective applicants that they understand and appreciate the fact that full BBBEE compliance will not be achieved overnight. For the interim, they expect two things from industry. Firstly, all licensees need, on an annual basis, to have their B-BBEE status assessed and verified by an accredited B-BBEE rating agency and must provide a B-BBEE verification certificate to council.
Secondly, each operator must produce a plan wherein they indicate how a company will progressively improve its B-BBEE compliance. So, even where a particular company starts off its B-BBEE compliance from a low base, as long as there is a continual and measureable improvement in B-BBEE status, a company will continue to receive the license/s it applies for.
This message was repeated to industry, at a meeting in March hosted jointly by the Department of Transport and South African Civil Aviation Authority (SACAA). The purpose of the March meeting was to explain how the B-BBEE requirements would be applied to the issuing of certificates and approvals by the SACAA such as Aircraft Maintenance Organisations (AMOs) approvals and Air Operators Certificates (AOCs). On this occasion, the SACAA indicated that, for the foreseeable future, AMOs must adhere to the same B-BBEE verification and improvement requirements expected of air service licence applicants.
In light of the swirling uncertainty, the Commercial Aviation Association of SA (CAASA), the body responsible for promoting and protecting commercial general aviation, is formulating a strategy that, on the one hand, will provide support and guidance to its members who are struggling with B-BEE compliance and, on the other, furnish tangible proof to Government that the sector wants to positively contribute towards greater black participation in the industry. As regards membership assistance, CAASA is planning to hold a series of seminars to explain how B-BBEE compliance can be implemented in a cost-effective and sustainable manner. Furthermore, CAASA will allow its members to access practical advice from some of the other aviation companies which have already successfully undergone B-BBEE compliance verification. CAASA is also seriously considering implementing a B-BBEE pilot training scheme in order to expand the body of black pilots gainfully employed within the industry. Increasing the number of black pilots employed is one of the scorecard elements with which both the commercial general aviation and airline sectors are having the greatest difficulty complying. Unfortunately, over the past fifteen years, the efforts to increase the number of black pilots in South Africa have not had the desired results.
There are a variety of reasons for this. One of the major causes for schemes failing has been that candidates have not undergone prior psychometric assessment to determine their aptitude, determination and resilience to become a pilot. This resulted in high failure and dropout rates. Also, where some schemes have successfully trained candidates to PPL and CPL level, they have failed to integrate these pilots into the industry so they can gain experience and develop a career path.
The premise of the CAASA proposal is that a Section 21 fund will be created and managed by CAASA. Companies seeking to qualify for Socio-Economic Development (SED) contributions under their B-BBEE score, will be able to make the qualifying contribution for their entity to this fund and receive an “SED certificate” in exchange. The funds will then be used to identify and screen previously disadvantaged candidates for a CPL programme. Once selected, each candidate will then be sent to an appropriate flight training school where they will emerge in time with a Twin IFR CPL.
These qualified candidates will then be presented back to the industry where employment will be sought. Companies whose B-BBEE programme includes staffing criteria, can then incorporate these qualified individuals into their flight operations based on the experience and minimum requirements for their organisation. For instance, companies which accept 200-hour commercial pilots may have a place for them until they reach 500 hours. Thereafter, a company which employs candidates with 500 hours to 1 500 hours, will take on these individuals, until they reach the cap in that organisation before moving on to the next.
In terms of the proposal, CAASA will act as the facilitator between the industry and the black trainee pilot thereby helping to grow the current non-white pilot base. A similar type of scheme could also be applied to developing black aircraft maintenance engineers. The detail of the above-mentioned proposal is being prepared by some of the CAASA Directors and will be placed before the CAASA Board for a decision at its next meeting. Hopefully, the Board will grant the necessary authorisation.
All in all, the outlook for the implementation of B-BBEE in the aviation industry looks positive and B-BEE compliance is not something that should provoke aviation companies into relocating their businesses outside of South Africa.
