ATNS presentation Parliamentary Portfolio Committee 16 May 2007 presentation outline about ATNS strategic review 2006/7 ATNS and Africa strategy 2007/8 safety people service delivery financial sustainability positioning about ATNS Parliamentary Portfolio Committee May 2007 ..quick facts about ATNS Full service Service on contract Total employees Operational ATS staff Total airspace Aircraft movements Capacity FAJS 9 airports 12 airports 789 394 22 000 000km2 645 000 52 (72) vision… mission… vision be the preferred supplier of air traffic, navigational and associated services to the African continent and surrounding regions. mission to provide safe, orderly, expeditious and efficient air traffic, navigational and associated services. ATNS strategic imperatives continuous improvement of our safety performance become an employer of choice become a performance based service provider maintain long term financial sustainability position ATNS to secure a continued role in the changing global air traffic management system. Phases Of Flight Taxiing Take-off Climbing Overflying Cruising Climbing Descending Controlled Airspace Control Zone Control Areas Airways Control Areas Descending Holding Letdown Overflying Contol Areas Landing Taxiing Control Zone En-Route Sectors Terminal/ Approach Control Aerodrome Control AFIS Area Control Reporting Points VOR/DME NDB VOR/DME ILS NDB VOR/DME Communication Terminal/ Approach Control Aerodrome NDB VOR/DME Control VOR/DME Air - Ground Ground - Air Radio & Data Link Navigation ILS NDB VOR/DME VOR/DME & NDB Surveillance Primary Secondary Radar Visual En Route Radar Cover Primary and Secondary ILS NDB VOR/DME Primary Secondary Radar Visual strategic review 06/07 Parliamentary Portfolio Committee May 2007 ..revenue grown by 15.5% on average p.a. over the last 5 years Average annual growth rate ATNS total revenue 02/03 - 06/07 R600M 551.6 500 400 581.7 5.1% -8.2% 456.9 ATA Non-Core 363.1 326.4 300 17.2% 200 SA Core 100 0 2002/03 *As at Mar 07 – To be finalised 2003/04 2004/05 2005/06 *2006/07 F …while costs have increased by 13% p.a .over the last 5 years Expenditure 02/03 - 06/07 R500M 400 300 Average annual growth rate 464.8 401.2 Prof fees Travel Admin 417.5 336.5 286.4 14.3% Elect maint. Telecom 200 Other Depreciation 16.6% 100 Salaries 0 2002/03 *As at Mar 07 – To be finalised 2003/04 2004/05 2005/06 *2006/07 F …resulting in profit after tax increasing by 28% p.a. over the last 5 years.. Net profit after tax R100M R95.9M R80.9M 80 60 40 R29.9M 20 0 R33.5M R26.0M Profit 2002/03 *As at Mar 07 – To be finalised 2003/04 2004/05 2005/06 *2006/07 F increased revenue has led us to adequately compensate for capital employed... Tariff increases 10.2% 10.8% 22.0% 12.55% 0.0% ROCE 20.0% 16.4% 15.0 11.4% 10.0 8.5% 5.9% 5.0 0.0 5.3% Actual 2002/2003 *As at Mar 07 – to be finalised ** IFRS adjusted 2003/2004 **2004/2005 2005/2006 *2006/2007 Permission CAPEX spend has increased by 18% on average p.a. over the last 5 years R Millions 250 R217.3M 200 R149.4M 150 R110.4M R105.5M 100 50 0 R139.1M Total 2002/03 2003/04 2004/05 2005/06 2006/07 equipment availability has decreased due to equipment upgrades and obsolescence… 100% Communication Target Surv Target Comms Surveillance 99 98 Navigation 97 2002/03 2003/04 Surveillance -Planned downtime - Radar replacememnt programme - Damage to radar Navigation -Replacement of NDBs with VORs Communications -Telkom cable theft and cable damage -Installing domestic VSAT 2004/05 2005/06 Target Nav 2006/07 …however is approaching target.. Target: 98.47% 99.64% 99.76% Difference: +0.41% -0.04% -0.81% 99.60% 98.95% Communications Surveillance 100.0% 98.88% 80.0 60.0 Actual 40.0 20.0 0.0 Note: Based on 2006/07 Navigation the average delay per flight appears to be decreasing... Seconds 40 33s 30 20 Ave delay per flight 16s 10 0 2002/03 2003/04 3s 3s 2s 2004/05 2005/06 2006/07 Target 2s …despite a 3% growth in total air traffic movements annually over the last 5 years Movements 700,000 600,000 563,877 574,457 582,766 2003/04 2004/05 608,930 5% ave annual increase in traffic growth over the last 2 years 644,619 400,000 Movements 200,000 0 2002/03 *FC includes Mar 2007 projection 2005/06 *2006/07 FC ATC Staff ..licensed ATC staff complement has increased 10.4% over the last 12 months… 300 38 250 200 150 254 -14 230 188 PATC & SATC 100 50 0 ATC Mar 03 Mar 06 Additional Controllers Resignations Mar 07 …and retention of air traffic controllers has improved since 2005/2006… ATC Staff resignations 20 20 16 15 14 10 8 ATC 5 SATC PATC 0 * From May 2003 to March 2004 *2003/04 2004/05 2005/06 2006/07 …this has contributed to a plateauing of the incident rate… Per 100 000 movements 7 6.1 6 5.2 4.4 4 2 0 3.6 3.5 Target 2.5 Incident rate 2002/03 2003/04 2004/05 2005/06 2006/07 …leaving us 7% short of our Human Capital target… ATC Staff 350 300 200 100 304 274 254 7.3% short 225 PATC SATC ATC 0 Required for full service 2006/07 Achievable target as per HCP 2006/07 Actual operational staff headcount Mar 07 Available operational staff Mar 07 18% short ..HCP a 5 year rolling target.. ATC Staff 400 300 200 100 274 296 319 341 364 386 254 PATC SATC ATC 0 HCP target 06/07 Actual06/07 07/08 08/09 09/10 Human Capital Plan Target 10/11 11/12 ..delivering on our ee targets - we are 3% short of our EE target 60.0% Target = 51% 48% 40.0 32% 20.0 0.0 EE Women staffing improving – however still our major strategic risk… Demand growth Continued recruitin g challeng Continued e key staff shortage s Global poaching Potential high risk to core operations ATNS and Africa 06/07 Parliament May 2007 current initiatives aim to… • facilitate regional service provision; • lead the introduction of new technologies to achieve increases in capacity, efficiency and safety; and; • develop people in aviation management and the technical skills. our approach… • finding “win-win” solutions together with our African partners; • accessing new markets through joint ventures with like minded partners : ICAO / IATA / FAA; • identifying third party funders IATA; and • financing projects with a secure revenue stream. our vision: Cape to Cairo satellite communication network Tunis Tripoli 16 Cairo MID Region 16 16 16 16 16 Jeddah 16 16 16 Asmara Dakar 16 Khartoum Niamey 16 16 16 16 N'Djamena Sana'a 16 16 16 Dj ibouti 16 16 16 Abijan 16 Accra 16 Bangui 16 16 16 16 Mogadishu 16 16 16 Brazzaville 16 16 16 Kigali 16 16 Buj umbura 16 Dar esSalaam 16 16 16 Luanda Future Planned NAFISAT and SADC Circuits 16 16 MCPC SatelliteCircuits 16 16 16 16 16 PlannedSADC/2Circuits Planned shared circuits between NAFISAT and SADC/2 16 16 16 16 16 Maputo Johannesburg 16 16 Manzini 16 Antananariv o 16 Beira 16 16 Gaborone 16 16 Maseru Revision1.316-08-06 16 16 Harare 16 16 PlannedNAFISATCircuits Windhoek 16 Lilongwe 16 16 16 16 16 16 Lusaka 16 16 16 16 16 16 16 16 16 Victoria (Seychelles) Nairobi 16 16 Kinshasa 16 16 16 Entebbe 16 Mumbai 16 Addis Ababa 16 16 Plaisance (Mauritius) progress? new SADC VSAT network August 2007 SADC VSAT Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda Tunis Tripoli To be upgraded to meet existing future demands: GNSS, VHF and ATN 16 Cairo MID Region 16 16 16 16 16 Jeddah 16 16 16 Asmara Dakar 16 Khartoum Niamey 16 16 16 16 N'Djamena Sana'a 16 16 16 Dj ibouti 16 16 16 Abijan 16 Accra 16 Bangui 16 16 16 16 Mogadishu 16 16 16 Brazzaville 16 16 16 Kigali 16 16 Buj umbura 16 16 16 16 MCPC SatelliteCircuits PlannedNAFISATCircuits 16 16 PlannedSADC/2Circuits Planned shared circuits between NAFISAT and SADC/2 16 16 16 Harare 16 16 16 Gaborone 16 16 16 Antananariv o 16 Beira 16 Windhoek 16 16 Lilongwe 16 16 16 16 16 16 Lusaka 16 Facilitates 2 million data calls per annum Dar esSalaam 16 16 Luanda Future Planned NAFISAT and SADC Circuits 16 16 16 16 16 16 16 16 16 Victoria (Seychelles) Nairobi 16 16 Kinshasa 16 16 16 Entebbe 16 Mumbai 16 Addis Ababa 16 16 16 16 16 Maputo Johannesburg 16 16 Manzini 16 Plaisance (Mauritius) Implementation of upgrade underway 16 Maseru Revision1.316-08-06 Launch date 13 September 2007 AFISNET Interconnected with ASECNA, Afisnet network – connecting SADC with 16 West African states progress? new North East African network September 2007 NAFISAT Satellite network to be installed in North East Africa Tunis Tripoli 16 Cairo MID Region 16 16 16 16 16 Jeddah 16 16 16 Asmara Dakar 16 Khartoum Niamey 16 16 16 16 N'Djamena Sana'a 16 16 16 Dj ibouti 16 16 16 Abijan 16 Accra 16 Bangui 16 16 16 16 Mogadishu 16 16 16 Brazzaville 16 16 16 Kigali 16 16 Buj umbura 16 Dar esSalaam 16 16 16 Luanda Future Planned NAFISAT and SADC Circuits 16 Lusaka MCPC SatelliteCircuits 16 PlannedNAFISATCircuits 16 16 PlannedSADC/2Circuits Planned shared circuits between NAFISAT and SADC/2 16 16 16 Harare 16 16 16 Gaborone 16 16 16 Antananariv o 16 Beira 16 Windhoek 16 16 Lilongwe 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Victoria (Seychelles) Nairobi 16 16 Kinshasa 16 16 16 Entebbe 16 Mumbai 16 Addis Ababa 16 Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen 16 16 16 16 Plaisance (Mauritius) IATA and ATNS jointly selected as the service provider 16 Maputo Johannesburg 16 16 Manzini 16 Maseru Revision1.316-08-06 Equipment acquisition for SADC VSATII and Nafisat systems being done jointly Implementation of the system underway Launch date 18 October 2007 increased training for our African partners… Number of Trainees 1,461 1,500 1,133 1,000 895 766 External 500 Internal 0 2003/2004 2004/05 2005/06 2006/07 Internal pass rate 93.9% 96.5% 92.4% 94.2% Overall pass rate 94.6% 95.6% 95.1% 95.0% …76% of our external participants were from African countries 1,000 800 Non - African 906 External SA 693 Other African 600 DRC 400 African Algeria 200 Sudan 0 Nigeria Total courses taken by non-ATNS staff Total courses taken by African delegates Tanzania Mozambique Namibia Ghana Uganda Botswana Rwanda A glimpse into the future ..07/08 and beyond.. Parliament May 2007 ATNS strategic imperatives continuous improvement of our safety performance become an employer of choice retention of core critical skills: atc’s and engineers transformation become a performance based service provider maintain long term financial sustainability position ATNS to secure a continued role in the changing global air traffic management system. ..safety.... Parliament May 2007 ..improve safety ratio.. reduce safety ratio to 2.5 incidents per 100 000 movements; 2.5 global target improve the safety management system; increase safety awareness instill just culture standards maintenance and standards oversight international best practice audit – international peer review ..initiate and finalise long range strategic planning .. • complete feasibility study for new area control centre; • finalise ATNS ATM/cns roadmap for 2015 and beyond; • finalise planning for King Shaka international airport; • oversee implementation of Reduced Vertical Separation Minima in Africa; • initiate planning for next permission; and • build an airspace modelling capacity within ATNS ..enhance systems for and oversee risk, security and quality... • ongoing management of the ATNS risk & security management systems • ongoing quality improvements • maintain and enhance quality management system, • conduct annual surveillance audits • oversee a successful assessment audit in august 2007 ..people.... Parliament May 2007 ..demystify aviation and air navigation… • • demystify air navigation • • • • • bring a girl child to school maths winter school (Mpumulanga, Limpopo, Gauteng) airshows countrywide career exhibitions radio talk shows • July 2007 – launch date 14 June 2007 implement aviation management programme – people in aviation industry ..achieve training excellence… • new study centre to be launched – already implemented • new technology procured for training: radar, VCCS • refocusing internally • selling “spare capacity” externally • improving course provision efficiencies • achieve international recognition – ICAO – IATA • achieve full staffing complement ..achieve training excellence… • ongoing instructor training – – – – excel as subject matter experts enhance facilitation training of trainers mechanism to enhance continued learning. • review course structure and course content to continually achieve international benchmarks – introduction of a practical component, NATS recommendations, etc. ..enhance hr structure … • realign SHR structure to offer one stop service point – re-evaluate job descriptions to ensure alignment with the structures – integrate and migrate identified functions appropriately ..enhance leadership and management skills… • identify appropriate leadership development approach and mechanism • ongoing utilization of executive coaching programme • implement revised incentive scheme • implement new retention scheme • oversee performance management – training and audits ..back to basics in SHR… • develop and implement the succession planning model • drive reward & recognition culture • create awareness of policy • monitor and report on trends • accelerate employment equity within the organisation • diversity development – ensure optimum functioning of EE and skills forum – diversity training ..back to basics in SHR… • improve recruitment and selection process – shorten the turnaround time (max 85 days) – utilize internet recruitment – conduct recruitment training for all managers & HR Practitioners – drive recruitment process to achieve EE targets – strengthen the pipeline of bursars / learners • enhance newly introduced corporate induction programme • leverage international recruitment ..back to basics in SHR… • review and enhance the skills development directives • finalise implementation of HR Focus System (IT based HR system) • develop appropriate HR measurements and reports • develop and implement the ATNS policy on HIV/AIDS …service delivery… Parliament May 2007 ..capacity ahead of demand.. • capacity ahead of demand • increase aircraft movements: • • • 5.4% growth per annum in traffic envisaged going forward 2007/08 – 2011/12 from 56 movements per hour to 60 at FAJS from 28 movements per hour to 30 at FADN ..our service .. • minimal ATC related delays • equipment availability to exceed ICAO and other targets: • 56s delay per delayed flight • • • Communication 99.69%, Navigation 99.27% and Surveillance equipment 99.39% ..expanding our service offering…. • improving our service offering (cont) • • • • • improved collaborative decision making - CAMU become a RVSM enabled service provider increase capacity and efficiency across Africa ATNS – appointed as the Aeronautical Regional Monitoring Agency for Africa introduce multilateration as an alternative to SSR ..ensure an optimum staffing mix - 7% increase in ATS staff over next five years… ATC Staff 400 300 200 100 274 296 319 341 364 386 254 PATC SATC ATC 0 HCP target 06/07 Actual06/07 07/08 08/09 09/10 Human Capital Plan Target 10/11 11/12 investing in increased capacity, safety and efficiency Replacement • • • Replacement and expansion of High Frequency infrastructure Replacement and upgrade of surveillance infrastructure and navigation equipment Upgrade of the aeronautical fixed telecommunication network and Aeronautical Information system Increase capacity and efficiency • • • Introduction of a new tool to manage increase numbers of air traffic flow Renewal and upgrade of VSAT platform for inter-centre communication on the continent and this will also enable aircraft-to-centre communication to improve efficiency The Airport Surface Movement Guidance and Control System will increase capacity through ensuring positive identification of aircraft on the ground Improved safety • Upgrade and expansion of the voice communication control system network to accommodate planned growth in air traffic movement Research and development • A more cost effective surveillance system I.e. multilateration is being piloted as an alternative to secondary surveillance radar forecasted CAPEX R Millions 300 250 R217M R226M R191M 200 R166M 150 R139M R136M R128M 100 Total 50 0 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 …positioning.... Parliament May 2007 new SADC VSAT network to be commissioned August 2007 SADC VSAT Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda Tunis Tripoli 16 Cairo MID Region 16 16 16 16 16 Jeddah 16 16 16 Asmara Dakar 16 Khartoum Niamey 16 16 16 16 N'Djamena Sana'a 16 16 16 Dj ibouti 16 16 16 Abijan 16 Accra 16 Bangui 16 16 16 16 Mogadishu 16 16 16 Brazzaville 16 16 16 Kigali 16 16 Buj umbura 16 Dar esSalaam Future Planned NAFISAT and SADC Circuits MCPC SatelliteCircuits 16 PlannedNAFISATCircuits 16 16 Lusaka 16 16 PlannedSADC/2Circuits Planned shared circuits between NAFISAT and SADC/2 16 16 16 16 Harare 16 16 16 16 16 16 16 Maputo Johannesburg 16 16 Manzini 16 Antananariv o 16 Beira 16 16 Gaborone 16 16 Maseru Revision1.316-08-06 Lilongwe 16 16 16 Windhoek 16 16 16 16 Facilitates 2 million data calls per annum 16 16 16 Luanda 16 16 16 16 16 16 16 16 16 Victoria (Seychelles) Nairobi 16 16 Kinshasa 16 16 16 Entebbe 16 Mumbai 16 Addis Ababa 16 To be upgraded to meet existing future demands: GNSS, VHF and ATN 16 Plaisance (Mauritius) AFISNET Interconnected with ASECNA, Afisnet network – connecting SADC with 16 West African states new North East African network to be commissioned September 2007 NAFISAT Satellite network to be installed in North East Africa Tunis Tripoli 16 Cairo MID Region 16 16 16 16 16 Jeddah 16 16 16 Asmara Dakar 16 Khartoum Niamey 16 16 16 16 N'Djamena Sana'a 16 16 16 Dj ibouti 16 16 16 Abijan 16 Accra 16 Bangui 16 16 16 16 Mogadishu 16 16 16 Brazzaville 16 16 16 Kigali 16 16 Buj umbura 16 Dar esSalaam Future Planned NAFISAT and SADC Circuits MCPC SatelliteCircuits 16 PlannedNAFISATCircuits 16 16 Lusaka 16 16 PlannedSADC/2Circuits Planned shared circuits between NAFISAT and SADC/2 Lilongwe 16 16 16 16 16 16 16 Harare 16 16 16 Gaborone 16 16 16 16 16 16 16 Maputo Johannesburg 16 16 Manzini 16 Maseru Antananariv o 16 Beira 16 Windhoek 16 16 16 16 IATA and ATNS jointly selected as the service provider 16 16 16 Luanda 16 16 16 16 16 16 16 16 16 Victoria (Seychelles) Nairobi 16 16 Kinshasa 16 16 16 Entebbe 16 Mumbai 16 Addis Ababa 16 Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen 16 Plaisance (Mauritius) Equipment acquisition for SADC VSATII and Nafisat systems being done jointly Revision1.316-08-06 Tenders issued ..influencing a global course.. • • • successfully host following conferences • ATFM Conference (global conference) • AFI/ATS Conference (African conference) • APIRG (African air navigation planning meeting) • CANSO Human Resources Committee (global meeting) training of African delegates in ATS and TS programmes participation at the ICAO General Assembly in October 2007 …financial sustainability.... Parliament May 2007 Revenue is forecasted to grow by 11% over the next 5 years Average annual growth rate ATNS total revenue 07/08 - 11/12 R1,000M 947.1 900 800 700 600 863.8 ATA Non-Core 787.9 706.5 626.2 500 10.8% 400 300 SA Core 200 100 0 8.5% 13.1% 2007/08 2008/09 2009/10 2010/11 2011/12 …while costs are forecast to increase by 11.7% annually over the next 5 years… Expenditure Average annual growth rate 07/08 - 11/12 R1,000M 800 600 400 Prof fees Travel Admin Elect maint. 580.1 Telecom 787.6 714.7 643.4 507.1 11.6% Other Depreciation 200 0 13.1% Salaries 2007/08 *As at Mar 07 – To be finalised 2008/09 2009/10 2010/11 2011/12 …resulting in a forecast profit growth of 8% annually over the next 5 years… Average annual growth rate Net profit after tax 07/08 - 11/12 R125M 110.1 100 108.5 95.0 79.6 78.6 75 8.0% 50 Profit 25 0 2007/08 2008/09 2009/10 2010/11 2011/12 …back up… Parliament May 2007 VSAT and ATA external continue to make up the bulk of our non-core revenue Non-core % of core: 5.4% 4.7% 4.9% R Millions 30 25 R28.6M R24.8M R26.1M Other 20 15 ATA external 10 5 0 *As at Mar 07 – To be finalised VSAT 2004/2005 2005/2006 *2006/2007F the quality of our NEW intakes has improved… SHL test scores 10 8 Accepted 6 4 2 0 Not accepted SA 2004/05 SA 2006/07 UK ...leading to an increase in course success rates over the last year 100.0% Higher SHL recruits in 2006/07 are expected to increase success rates going forward 92% 80.0 71% 58% 60.0 Pass 40.0 28% 20.0 0.0 2003/04 2004/05 2005/06 2006/07 Aerodrome Control Course Note: Poor success rates in 2005/06 appears correlated with low SHL score recruits from 2004/05 only 0.95% of applicants could be successfully recruited… 5,000 4,200 4,000 White 3,000 2,000 Black 1,000 1,000 0 40 Applications received Minimum criteria met Recruited after successful psycohmetric testing New Recruits …despite the size of pool recruitment levels have increased… 100 85 85 80 60 40 54 ATM/AIM Core Content Course Participants 40 22 20 0 2003/04 2004/05 2005/06 *Excluding AIM trainees Note: Source – Core content staff numbers including AIM participants (majority ATSA) 2006/07 *2007/08 Plan ..after lots of hard work 67 000 students reached in 06/07 - through air shows, maths winter schools, etc… ..it takes between 3-6 years to become a qualified, licenced ATC… Ab-inito 35 weeks ATSA ±12 weeks ATC training 31 – 52 weeks 3 – 6 years ATC 1- 3 years PATC …despite this training lead time - 67% of our controllers have more than 3 years experience… No. of ATC staff 40.0% 32.8% 30.4% 30.0 PATC 22.7% 20.0 14.2% SATC 10.0 ATC 0.0 0-3 years 3-6 years 6-10 years Source: Experience calculated based on course dates and not validations 10 + years