ATNS presentation ATNS presentation Parliamentary Parliamentary Portfolio Portfolio Committee Committee 16 May 2007 16 May 2007
ATNS presentationATNS presentation
Parliamentary Parliamentary Portfolio CommitteePortfolio Committee
16 May 200716 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 about ATNS
Parliamentary Parliamentary Portfolio CommitteePortfolio Committee
May 2007May 2007
..quick facts about ATNS
Full service Full service 9 airports9 airports Service on contract Service on contract 12 airports12 airports Total employees Total employees 789 789
Operational ATS staff ATS staff 394 394 Total airspace otal airspace 22 000 000km222 000 000km2
Aircraft movements Aircraft movements 645 000645 000 Capacity FAJSCapacity FAJS 52 (72) 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.
TaxiingTake-offTaxiingTake-off
ClimbingOverflyingClimbing
Overflying
CruisingClimbing
Descending
CruisingClimbing
Descending
DescendingHoldingLetdown
Overflying
DescendingHoldingLetdown
Overflying
LandingTaxiingLandingTaxiing
Phases OfFlightPhases OfFlight
ControlZone
ControlZone
ControlAreas
ControlAreas
AirwaysControl Areas
AirwaysControl Areas
ContolAreasContolAreas
ControlZone
ControlZone
ControlledAirspaceControlledAirspace
ILSAerodrome
ControlAerodrome
Control
AerodromeControl
AFIS
AerodromeControl
AFIS
Terminal/Approach
Control
Terminal/Approach
Control
Commu-nication Air - Ground Ground - Air Radio & Data Link
Sur-veillanceSur-veillance
En Route Radar CoverPrimary and SecondaryEn Route Radar CoverPrimary and Secondary
PrimarySecondary
RadarVisual
PrimarySecondary
RadarVisual
PrimarySecondary
RadarVisual
PrimarySecondary
RadarVisual
VOR/DMEVOR/DMENDB
NDBVOR/DMEVOR/DMEVOR/DMEVOR/DME
NavigationNavigation ILSNDB
VOR/DME
ILSNDB
VOR/DME
ILSNDB
VOR/DME
ILSNDB
VOR/DMEVOR/DME & NDBVOR/DME & NDB
NDBNDB
NDBNDB VOR/DMEVOR/DMEVOR/DMEVOR/DME
En-Route Sectors
Area ControlReporting Points
strategic reviewstrategic review06/0706/07
Parliamentary Parliamentary Portfolio CommitteePortfolio Committee
May 2007May 2007
ATANon-Core
SA Core
2002/03 2003/04 2004/05 2005/06 *2006/07 F
326.4363.1
456.9
551.6581.7
0
100
200
300
400
500
R600M
ATNS total revenue 02/03 - 06/07
17.2%
-8.2%
5.1%
Average annual growth rate
..revenue grown by 15.5% on average p.a. over the last 5
years
*As at Mar 07 – To be finalised
Prof feesTravelAdmin
Elect maint.Telecom
Other
Depreciation
Salaries
2002/03 2003/04 2004/05 2005/06 *2006/07 F
286.4
336.5
401.2417.5
464.8
0
100
200
300
400
R500M
Expenditure02/03 - 06/07
16.6%
14.3%
…while costs have increased by 13% p.a .over the last 5
years
*As at Mar 07 – To be finalised
Average annual growth rate
Profit
2002/03 2003/04 2004/05 2005/06 *2006/07 F
R29.9MR26.0M
R33.5M
R95.9M
R80.9M
0
20
40
60
80
R100M
Net profit after tax
…resulting in profit after tax increasing by 28% p.a. over
the last 5 years..
*As at Mar 07 – To be finalised
Actual
2002/2003 2003/2004 **2004/2005 2005/2006 *2006/2007
8.5%
5.9% 5.3%
16.4%
11.4%
0.0
5.0
10.0
15.0
20.0%
ROCE
Permission
increased revenue has led us to adequately compensate for
capital employed...
*As at Mar 07 – to be finalised** IFRS adjusted
10.8% 12.55%22.0%10.2% 0.0%Tariff increases
CAPEX spend has increased by 18% on average p.a. over the
last 5 years
Total
2002/03 2003/04 2004/05 2005/06 2006/07
R110.4M
R149.4M
R105.5M
R139.1M
R217.3M
0
50
100
150
200
250
R Millions
Navigation
Communication
Surveillance
2002/03 2003/04 2004/05 2006/0797
98
99
100%
equipment availability has decreased due to equipment upgrades and obsolescence…
2005/06
Surveillance-Planned downtime - Radar replacememnt programme- Damage to radarNavigation-Replacement of NDBs with VORsCommunications-Telkom cable theft and cable damage-Installing domestic VSAT
Target Surv
Target Comms
Target Nav
…however is approaching target..
Actual
Navigation Communications Surveillance
98.88% 99.60% 98.95%
0.0
20.0
40.0
60.0
80.0
100.0%
Target: 98.47% 99.64% 99.76%
Difference: +0.41% -0.04% -0.81%
Note: Based on 2006/07
the average delay per flight appears to be decreasing...
Ave delayper flight
2002/03 2003/04 2004/05 2005/06 2006/07
33s
16s
3s 3s 2s
0
10
20
30
40
Seconds
Target2 s
…despite a 3% growth in total air traffic movements
annually over the last 5 years
Movements
2002/03 2003/04 2004/05 2005/06 *2006/07 FC
563,877 574,457 582,766608,930
644,619
0
200,000
400,000
600,000
700,000
Movements
5% ave annual increase in traffic growth over the last 2 years
*FC includes Mar 2007 projection
..licensed ATC staff complement has increased
10.4% over the last 12 months…
PATC& SATC
ATC
Mar 03 Mar 06 AdditionalControllers
Resignations Mar 07
188
230
38
-14254
0
50
100
150
200
250
300
ATC Staff
…and retention of air traffic controllers has improved
since 2005/2006…
ATC
SATC
PATC
*2003/04 2004/05 2005/06 2006/07
8
16
20
14
0
5
10
15
20
ATC Staff resignations
* From May 2003 to March 2004
…this has contributed to a plateauing of the incident
rate…
Incidentrate
2002/03 2003/04 2004/05 2005/06 2006/07
4.4
6.1
5.2
3.6 3.5
0
2
4
6
7
Per 100 000 movements
Target2.5
…leaving us 7% short of our Human Capital target…
PATC
SATC
ATC
Required for fullservice 2006/07
Achievabletarget as perHCP 2006/07
Actual operational staff headcount
Mar 07
Availableoperational staff Mar 07
304
274254
225
0
100
200
300
350
ATC Staff
18% short
7.3% short
PATC
SATC
ATC
HCP target06/07
Actual06/07
07/08 08/09 09/10 10/11 11/12
274254
296319
341364
386
0
100
200
300
400
ATC Staff
Human Capital Plan Target
..HCP a 5 year rolling target..
..delivering on our ee targets - we are 3% short of
our EE target
EE Women
48%
32%
0.0
20.0
40.0
60.0%
Target = 51%
staffing improving – however still our major strategic
risk…
Demand growth
Global poaching
Continued recruitin
g challeng
eContinued key staff shortage
s
Potential high risk to core operations
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 ventureswith 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
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Brazzaville
Kinshasa
Bangui
N'Djamena
Khartoum
AddisAbaba
Mogadishu
Victoria(Seychelles)
Dj ibouti
Mumbai
Asmara
Cairo
Tripoli
Entebbe
NairobiBuj umbura
Kigali
Dar es Salaam
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16
Future Planned NAFISATand SADC Circuits
MCPC Satellite Circuits
Planned NAFISAT Circuits
Johannesburg
Antananariv o
Niamey
Tunis
Plaisance(Mauritius)
Revision 1.3 16-08-06
Windhoek
Luanda
Beira
Maputo
Gaborone
Harare
LusakaLilongwe
Maseru
Manzini
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Sana'a
Jeddah
MID Region
Planned shared circuitsbetween NAFISAT and
SADC/2
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16
Abijan Accra
Dakar
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progress?new SADC VSAT network
August 2007
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Brazzaville
Kinshasa
Bangui
N'Djamena
Khartoum
AddisAbaba
Mogadishu
Victoria(Seychelles)
Dj ibouti
Mumbai
Asmara
Cairo
Tripoli
Entebbe
NairobiBuj umbura
Kigali
Dar es Salaam
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16
Future Planned NAFISATand SADC Circuits
MCPC Satellite Circuits
Planned NAFISAT Circuits
Johannesburg
Antananariv o
Niamey
Tunis
Plaisance(Mauritius)
Revision 1.3 16-08-06
Windhoek
Luanda
Beira
Maputo
Gaborone
Harare
LusakaLilongwe
Maseru
Manzini
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Sana'a
Jeddah
MID Region
Planned shared circuitsbetween NAFISAT and
SADC/2
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16
Abijan Accra
Dakar
16
SADC VSAT
Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda
To be upgraded to meet existing future demands: GNSS, VHF and ATN
Facilitates 2 million data calls per annum
Implementation of upgrade underway
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
Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen
IATA and ATNS jointly selected as the service provider
Equipment acquisition for SADC VSATII and Nafisat systems being done jointly
Implementation of the system underway
Launch date 18 October 2007
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Brazzaville
Kinshasa
Bangui
N'Djamena
Khartoum
AddisAbaba
Mogadishu
Victoria(Seychelles)
Dj ibouti
Mumbai
Asmara
Cairo
Tripoli
Entebbe
NairobiBuj umbura
Kigali
Dar es Salaam
16
16
Future Planned NAFISATand SADC Circuits
MCPC Satellite Circuits
Planned NAFISAT Circuits
Johannesburg
Antananariv o
Niamey
Tunis
Plaisance(Mauritius)
Revision 1.3 16-08-06
Windhoek
Luanda
Beira
Maputo
Gaborone
Harare
LusakaLilongwe
Maseru
Manzini
16
16
16
16
16
16
16
16 Planned SADC/2 Circuits
Sana'a
Jeddah
MID Region
Planned shared circuitsbetween NAFISAT and
SADC/2
16
16
Abijan Accra
Dakar
16
increased training for our African partners…
External
Internal
2003/2004 2004/05 2005/06 2006/07
766895
1,133
1,461
0
500
1,000
1,500
Number of Trainees
Overall pass rate
Internal pass rate
94.6%
93.9%
95.6%
96.5%
95.1%
92.4%
95.0%
94.2%
…76% of our external participants were from
African countries
Non - African
External SA
African
Other African
DRC TanzaniaMozambiqueNamibiaGhanaUganda
BotswanaRwanda
Algeria
Sudan
Nigeria
Total courses taken by non-ATNS staff
Total courses takenby African delegates
906
693
0
200
400
600
800
1,000
A glimpse into the futureA glimpse into the future..07/08 and beyond....07/08 and beyond..
ParliamentParliamentMay 2007May 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.
..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
• 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
..initiate and finalise long range strategic planning ..
• 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
..enhance systems for and oversee risk, security and
quality...
..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
• implement aviation management programme – people in aviation industry• July 2007 – launch date 14 June 2007
• 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.
..achieve training excellence…
• 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 hr structure …
• 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
..enhance leadership and management skills…
• 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
..back to basics in SHR…
..capacity ahead of demand..
• capacity ahead of demand• 5.4% growth per annum in traffic envisaged
going forward 2007/08 – 2011/12• increase aircraft movements:
• from 56 movements per hour to 60 at FAJS• from 28 movements per hour to 30 at FADN
..our service ..
• minimal ATC related delays • 56s delay per delayed flight
• equipment availability to exceed ICAO and other targets: • 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
PATC
SATC
ATC
HCP target06/07
Actual06/07
07/08 08/09 09/10 10/11 11/12
274254
296319
341364
386
0
100
200
300
400
ATC Staff
Human Capital Plan Target
..ensure an optimum staffing mix - 7% increase in ATS staff
over next five years…
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
Total
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
R139M
R217M R226M
R136M R128M
R191M
R166M
0
50
100
150
200
250
300
R Millions
new SADC VSAT network to be commissioned August
2007
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Brazzaville
Kinshasa
Bangui
N'Djamena
Khartoum
AddisAbaba
Mogadishu
Victoria(Seychelles)
Dj ibouti
Mumbai
Asmara
Cairo
Tripoli
Entebbe
NairobiBuj umbura
Kigali
Dar es Salaam
16
16
Future Planned NAFISATand SADC Circuits
MCPC Satellite Circuits
Planned NAFISAT Circuits
Johannesburg
Antananariv o
Niamey
Tunis
Plaisance(Mauritius)
Revision 1.3 16-08-06
Windhoek
Luanda
Beira
Maputo
Gaborone
Harare
LusakaLilongwe
Maseru
Manzini
16
16
16
16
16
16
16
16 Planned SADC/2 Circuits
Sana'a
Jeddah
MID Region
Planned shared circuitsbetween NAFISAT and
SADC/2
16
16
Abijan Accra
Dakar
16
SADC VSAT
Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda
To be upgraded to meet existing future demands: GNSS, VHF and ATN
Facilitates 2 million data calls per annum
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
Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen
IATA and ATNS jointly selected as the service provider
Equipment acquisition for SADC VSATII and Nafisat systems being done jointly
Tenders issued
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Brazzaville
Kinshasa
Bangui
N'Djamena
Khartoum
AddisAbaba
Mogadishu
Victoria(Seychelles)
Dj ibouti
Mumbai
Asmara
Cairo
Tripoli
Entebbe
NairobiBuj umbura
Kigali
Dar es Salaam
16
16
Future Planned NAFISATand SADC Circuits
MCPC Satellite Circuits
Planned NAFISAT Circuits
Johannesburg
Antananariv o
Niamey
Tunis
Plaisance(Mauritius)
Revision 1.3 16-08-06
Windhoek
Luanda
Beira
Maputo
Gaborone
Harare
LusakaLilongwe
Maseru
Manzini
16
16
16
16
16
16
16
16 Planned SADC/2 Circuits
Sana'a
Jeddah
MID Region
Planned shared circuitsbetween NAFISAT and
SADC/2
16
16
Abijan Accra
Dakar
16
..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
Revenue is forecasted to grow by 11% over the next 5 years
ATANon-Core
SA Core
2007/08 2008/09 2009/10 2010/11 2011/12
626.2
706.5
787.9863.8
947.1
0
100
200
300
400
500
600
700
800
900
R1,000M
ATNS total revenue
07/08 - 11/12
10.8%
13.1%8.5%
Average annual growth rate
Prof feesTravelAdminElect maint.Telecom
Other
Depreciation
Salaries
2007/08 2008/09 2009/10 2010/11 2011/12
507.1580.1
643.4714.7
787.6
0
200
400
600
800
R1,000M
Expenditure
07/08 - 11/12
13.1%
11.6%
…while costs are forecast to increase by 11.7% annually
over the next 5 years…
*As at Mar 07 – To be finalised
Average annual growth rate
…resulting in a forecast profit growth of 8% annually over
the next 5 years…
Profit
2007/08 2008/09 2009/10 2010/11 2011/12
79.6 78.6
95.0
110.1 108.5
0
25
50
75
100
R125M
Net profit after tax
07/08 - 11/12
8.0%
Average annual growth rate
VSAT and ATA external continue to make up the bulk
of our non-core revenue
Other
ATA external
VSAT
2004/2005 2005/2006 *2006/2007F
R24.8MR26.1M
R28.6M
0
5
10
15
20
25
30R Millions
Non-core% of core:
5.4% 4.7% 4.9%
*As at Mar 07 – To be finalised
Accepted
Not accepted
SA 2004/05 SA 2006/07 UK0
2
4
6
8
10
SHL test scores
the quality of our NEW intakes has improved…
Pass
2003/04 2004/05 2005/06 2006/07
92%
71%
28%
58%
0.0
20.0
40.0
60.0
80.0
100.0%
Aerodrome Control Course
...leading to an increase in course success rates over
the last year
Higher SHL recruits in 2006/07 are expected to increase success rates going forward
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…
White
Black
Applications received Minimum criteria met Recruited after successfulpsycohmetric testing
4,200
1,000
400
1,000
2,000
3,000
4,000
5,000
…despite the size of pool - recruitment levels have
increased…
ATM/AIMCore
ContentCourse
Participants
2003/04 2004/05 2005/06 2006/07 *2007/08 Plan
85
54
22
40
85
0
20
40
60
80
100
New Recruits
*Excluding AIM traineesNote: Source – Core content staff numbers including AIM participants (majority ATSA)
..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…
ATSA±12 weeks
3 – 6 years
Ab-inito35 weeks
ATC training31 – 52 weeks
ATC 1- 3 years
PATC