CASA has suspended the operations of Barrier Aviation with immediate effect from 23 December 2012.
The safety regulator took the action because it believes "permitting Barrier Aviation to continue to fly poses a serious and imminent risk to air safety", and that the Cairns-based operator "has been operating aircraft with serious and known defects."
According to CASA, it has evidence of Barrier "directing pilots to fly with serious and known aircraft defects, as well as not recording those defects on aircraft maintenance documentation when the defects became known."
The suspension follows an audit of Barrier Aviation, which revealed a range of maintenance related deficiencies. Further maintenance issue were uncovered as CASA continued investigating.
CASA must now apply to the Federal Court within five working days if they want the company grounded for longer than that. If approved by the Court, the grounding can continue for a period of time that CASA thinks is adequate to complete their investigation.
Barrier Aviation is based in Cairns, with operations also from Horn Island, Darwin and Gove. They operate charter flights and a flying school.
Update December 24
CASA has applied to the Federal Court to extend Barrier's suspension until February 15, 2013. According to CASA's spokesperson, it has done so because it cannot complete the investigation within the five working days.