An internal report has found serious deficiencies in the operation, safety and management of the country's skies.

A document which was obtained by the media under Freedom on Information laws show damning non-compliance issues from the country’s current sole air traffic control operator, Airservices Australia. The company has created a culture where problems can be permanently unresolved, disorganisation is rampant and employee environments are “dysfunctional”, according to reports.

The document was compiled by Australia's air safety regulator the Civil Aviation Safety Authority (CASA) and shows hundreds of incidents ranging from training shortcomings to mismanagement of staff. CASA had even considered withdrawing Airservices’ approval to operate following ever-increasing incidents, the causes of which were never resolved.

CASA has now signalled it wants regulations strengthened, to give it the ability to fine or take other enforcement actions to make Airservices improve its operations.

Insiders say increases in flights caused by the mining boom and expanding economy have lead to a rapid expansion of the company, which is now struggling under the weight of middle-management and inexperienced operators.

Reportedly, overworked and stressed conditions have led to a growing number of mistakes; the 2012 Australian Transport Safety Bureau (ATSB) audit detailed 10 "serious incidents" involving air transport in so-called separation events, where aircraft were directed to fly closer together than is deemed safe to avoid a crash.

The report’s section on safety performance, regulatory compliance, staffing and service has been posted online.