Pilot Ash Jenkinson, 40, was among four people killed in the crash that claimed the lives of four people at Gold Coast theme park Sea World on January 2, 2023.
An autopsy on the remains of Mr Jenkinson showed a positive test for remnants of cocaine, a fact seized upon by Sea World Helicopters chief executive Brett Newman at an inquest into the crash on Monday.
The crash also killed his three passengers - British newlyweds Ronald and Diane Hughes, aged 65 and 67, and Sydney mother Vanessa Tadros, 36, after their helicopter struck another during take-off.
Several other passengers were injured in the crash, including Ms Tadros's son Nicholas who endured months in hospital and the loss of his leg.
When his company was accused of a series of risk assessment failures by Gerard Mullins KC, for the Tadros family, Mr Newman pushed back strongly.
"We've discovered that Mr Jenkinson was affected by drugs, more than probably affected by cocaine, which was totally illegal and totally against our regulations," Mr Newman said.
"We did everything except allow for someone to make such a gross, negligent act of being under the influence of drugs while flying a helicopter."
The coroner had earlier been told that Mr Jenkinson had been seen inhaling multiple lines of the drug at a New Year's Eve party before the crash.
However, an expert panel was unable to conclusively tell Queensland coroner Carol Lee how much his flying ability would have been affected.
Earlier, Mr Newman had told Ms Lee that Mr Jenkinson had been distracted by his passengers, among whom were family of Sea World Cruises' owners, who had asked him to provide a joy flight.
Mr Jenkinson's cockpit was not quiet at the critical time after take-off, Mr Newman said.
"It is my view that Ash was dealing with the two front-seat passengers who were the family of friends," Mr Newman said.
"Ash was the kind of guy who loved to please ... it is my view that he was interacting with these people and not concentrating on what he should have been concentrating on."
Mr Newman strenuously denied any knowledge of Mr Jenkinson having any interest in recreational drugs, saying he had zero tolerance for their use.
Counsel assisting the inquest Ian Harvey asked Mr Newman if he had any inkling Mr Jenkinson ever used cocaine.
"Absolutely not, and if I had have known he would have been fired the next day," he replied.
"Ash knew my view on drugs."
Mr Newman said Sea World's requirements to ensure pilots were fit to fly were higher than those legally required by the Civil Aviation Safety Authority (CASA) and commercial airlines.
He said the helicopter company had inherited Sea World owner Village Roadshow Theme Parks' zero tolerance approach to drugs and alcohol.
Pilots were subjected to random drug testing by both Village Roadshow as well as CASA, he said.
"Our system was more stringent than Virgin or Qantas, who don't do breath testing, and don't do their own drug testing," he said.
"So any assumption that we should have had drug testing is just ridiculous."
Sea World Helicopters has operated as Surfers Paradise Helicopters since July 1.
The inquest is scheduled to conclude on July 24.
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