· pdf file · 2015-11-03ltd air services 2012 ... to the transport sector...

PNG

LTDAIR SERVICES

2012 ANNUAL REPORT “To be a world class Air Navigation Services Provider”

Papua New Guinea Air Services Limited

www.pngairservices.com.pg2

ENSURING A SAFE AIRSPACE

An Air Traffic Controller hard at workPort Moresby

iiiPapua New Guinea Air Services Limited Annual Report 2012

Contents1. Abbreviations/Acronyms ……………………………………… iv

2. A message to the Shareholders…………………………………… 1 - 2

3. Our Vision, Mission and Values..………………………………….. 3

4. Corporate Highlights………………………………………………... 4 - 5

5. Safety Highlights ……………………………………………… 6 - 7

6. Service and Infrastructure Highlights ………………………......... 8 - 9

7. Projects Highlights ……………………………………………… 10

8. Financial Performance ……………………………………... 11

9. Auditor's report ……………………………………………… 13 - 15

10. Financial statements ………………………………………........... 17 - 20 (Income Statement, Balance Sheets, and Cash Flow Statement)

11. Notes to Financial Statements ……………………………. 21 - 32

12. Corporate Information ……….………………………………......... 33

13. Notes ……………..…………………………………………......... 34

www.pngairservices.com.pgiv

Abbreviation/AcronymsADB Asian Development Bank

ADS-B Automatic Dependent Surveillance – Broadcast

ADS-C Automatic Dependent Surveillance – Contract

AIDC ATS Inter-facility Data Communications

AIS Aeronautical Information Service

ANG Air Niugini

ANS Air Navigation Services

ANSP Air Navigation Service Provider

APNG Airlines PNG

ATC Air Traffic Control

ATM Air Traffic Management

ATMAS Air Traffic Management Automation System

ATMS Air Traffic Management System

CADIP Civil Aviation Development Investment Program

CANSO Civil Air Navigation Service Organisation

CASA Civil Aviation Safety Authority

CNS/ATM Communications, Navigation, Surveillance and Air Traffic Management

CPDLC Controller Pilot Data Link Communication

DME Distance Measuring Equipment

FIR Flight Information Region

GNSS Global Navigation Surveillance System

GPI Global Plan Initiative

HF High Frequency (Radio)

IATA International Airline Transport Association

ICAO International Civil Aviation Organisation

ILS Instrument Landing System

LNG Liquefied Natural Gas (Project)

NAC National Airports Corporation

NDB Non Directional Beacon

PBN Performance Based Navigation

PNG Papua New Guinea

PNGASL Papua New Guinea Air Services Limited

PSC Program Steering Committee

RPT Regular Public Transport

RNAV Area Navigation

RNP Required Navigation Performance

SBAS Space Based Augmentation System

SIDS Standard Instrument Departure(s)

STARS Standard Terminal Arrival Route(s)

UPR User Preferred Route

VOR Very High Frequency Omni Range

VSAT Very Small Aperture Terminal

WGS-84 World Geodetic System (dating from 1984)

vPapua New Guinea Air Services Limited Annual Report 2012

Antonov AN124-100, with cargo bound for KomoPort Moresby

WORLD CLASS AIR NAVIGATION SERVICE PROVIDER


The 2012 PNG Air Services Limited Annual Report presents information on the company’s performance consistent with its corporate objectives and broader strategies identified in its 2012 Corporate Plan. PNGASL had another year of success in 2012 due to the general growth in domestic air traffic.

Financially, the increase in domestic activities as a result of increased economic activities associated with the LNG Projects and an agreed increase in charging rates with the industry resulted in a modest revenue growth. With prudent financial management through proactivity in a wide range of cost control initiatives, this discipline was translated to making funds available to support our core business in air navigation operations and maintenance.

The core of our business relies heavily on safety, reliability and efficiency. With a total annual movement of 160,668, PNGASL recorded 98 incidents. We continued to provide a high rate of systems availability in our commitment to providing a safe, reliable and efficient service to our customers and stakeholders. We are gradually instilling a safety attitude built on a just reporting culture through the Safety Management System (SMS) Program.

Whilst the aviation industry is improving PNGASL continues to exert cost control initiatives complemented with adding value to our customers’ operations. The PNGASL’s key focus for the next five years remains as the modernization of its Air Navigation Service (ANS) infrastructure to provide seamless services compatible with adjacent Flight Information Regions. These modern systems must also be compatible with innovative air-borne equipment thereby enhancing safety and efficiency

A Message to the Shareholders

2Papua New Guinea Air Services Limited Annual Report 2012

are made available under its Annual Development Budget Allocations and through Donor Funding Agencies such as ADB and Ausaid programs in SGP, TSSP and MoU arrangements. The 2012 Budgetary Appropriation was used to replace a key navigational aid at the Port Moresby International Airport.

PNG must be a safe place to fly given the nation’s increased reliance on aviation services for development, hence the provision of modern air navigation infrastructure and services using a skilled workforce are absolute priorities in the years to come.

On behalf of the PNGASL Board and Management, the Board is pleased to present the 2012 Annual Report with its audited accounts to the Shareholders; the Minister for Civil Aviation and the Minister for Finance.

within the PNG airspace to ensure PNG meets international and national regulatory requirements.

This focus means that PNGASL must be prepared for international best practice performance. This is an added pressure to the company and its staff and poses a joint challenge for the Board and Management. Specialist training for key operational staff and maintenance staff will also go hand-in-hand with PNGASL modernization plans.

PNGASL will continue to maintain and build on its strategic alliances with key stakeholders such as AirServices Australia for improvement and enhancement to PNGASL service delivery, capacity and capability building and infrastructure improvement initiatives. The Government of PNG who is the sole shareholder of PNGASL is commended for its support in ensuring that funds

COLIN KUCHELCHAIRMAN

CAPTAIN TED PAKIIMANAGING DIRECTOR/CEO


OUR VISION

To be a world class Air Navigation Services Provider

OUR MISSIONTo provide quality aviation services to our

domestic and international customers at a reasonable cost

OUR VALUES

Customer Service

Safe and Efficient Outcomes

Professionalism and Accountability

Respect and Teamwork

Honesty and Integrity

Fair and Transparent Decision Making

Continuous Improvement

Our Vision, Mission and Values


2011 – 2015 Development Plan

The Company’s five year 2011 – 2015 Development Plan launched in late 2011 is aligned to the Transport Sector Development Plan as incorporated in the Medium Term Development Plan 2011 – 2015, the PNG Development Strategic Plan 2010 – 2030 and ultimately PNG Vision 2050. The Plan provides that roadmap in meeting short term objectives to provide services to meet statutory objectives and the longer term modernization and capacity building programs. In 2012, the company continued its efforts in progressively implementing some of the key projects in the Modernization Program.

2012 Corporate Plan

The 2012 Corporate Plan was framed around the principles of a Balanced Score Card (BSC) System. This new management methodology allowed for the provision of a focused implementation of strategic initiatives to achieve the Strategic Objectives and the Outcomes of the company thereby optimizing organizational performance.

Asset Transfer Exercise

The National Gazette No: G210 dated 4th August 2011 on transfer of Assets was not accepted by PNGASL as it contravened critical clauses of the Principal and Amended Civil Aviation Act. After exhausting all formal processes to correct the anomaly, PNGASL took out litigation proceedings and successfully obtained an order for a Judicial Review on the matter. PNGASL believes in fair and equal distribution in accordance with law through succession of assets. The matter remains outstanding with efforts to resolve the matter out-of-court not yielding any positive outcomes to date.

Membership to CANSO

PNGASL continues to enjoy its membership to the Civil Air Navigation Service Organization (CANSO), the global body that represents the world’s Air Navigation Service Providers (ANSP). This milestone ensures PNGASL is kept abreast with development trends and our global partners as we aspire to contribute towards achieving harmonization and seamless air navigation services. This will pave the way for PNGASL achieving its Vision of becoming a World Class Air Navigation Service Provider.

Organizational Structure

In our efforts to enhance performance and to ensure we focus our attention on achieving safe, efficient and reliable air navigation services, the Organization Structure was revised and streamlined for relevance with our service delivery and project management delivery mechanism. New appointments were made to install an assertive leadership culture at the two core functional divisions of Air Traffic Services and Maintenance Services.

Recruitment & Training

Recruitment and Training remained key focus areas for PNGASL considering the aging workforce and the gap in skills and competency. Whilst a low staff turnover was experienced, this may change in the future as the average age of the workforce nears the legal retirement age.

Since the inception of PNG Air Services Limited as a company the first real effort to building the human capability of the company for the future sustenance of the company was undertaken

Corporate Highlights


through the launching of the Air Traffic Control (ATC) Cadet and Graduate Development Programs.

The company is committed to continue implementing its capacity building program to ensure its human capital requirements in the core business of Air Traffic Services (ATS) and supporting Maintenance and Engineering (MES) services are met in light of its plans to modernize and upgrade its Communications, Navigations, Surveillance and ATM Systems. This is indicated by the recruitment of the second batch of Air Traffic Service Cadets and Graduate Development Professional officers.

To support this commitment, specific Manpower Training and Development Initiatives for the two different professional streams were developed and implemented. These Initiatives were aimed at further developing their officers’ knowledge and aligning it to the company’s core business and functional responsibilities. This Training strategy will be further incorporated into a Consolidated Training and Development Program for PNGASL in the future.

Selected staff attended various specilist and generic training courses to fill in skills and competency gaps identified during the year.Recruitment of other key personnel in other areas of the business was also achieved during the year to accomplish the overall objective of Operational Excellence.

Transport Sector Support Program (TSSP)

A Capacity Diagnostic Review was conducted on the company under Ausaid funding through TSSP. The objectives of the study were to develop

a Paper to support PNGASL intentions to recruit appropriately qualified and competent Leaders and Managers to drive company strategies and plans and to identify capacity gaps within the company where focused attention was required in order to achieve satisfactory performance and ultimately the company vision.

Partnership with Airservices Australia (AsA)

This partnership continues to prosper and is becoming very effective in addressing some of the capacity issues within the company. Unfortunately in the first nine months of the partnership arrangement, there was very little activity due to changes within the Airservices Australia Board and Management. This however did not adversely affect the ongoing partnership activities and at the last quarter of the year, Airservices Australia formally advised PNGASL of its commitment to continue the good relationship. This was evidenced by the slight increase in activities during that period.

Development and Training Program

Three of the first batch of PNG Air Services Limited ATC Cadets at training in New Zealand to enhance their skills in air traffic control using the mordern systems and equipment.


Safety Health

During the year, we recorded a total of 98 reported incidents as compared to a total of 139 incidents recorded in 2011. These incidents were attributed to several factors including air traffic service operational and facility related difficulties, aircraft equipment malfunctions and emergencies and other co-ordination related incidents in both controlled and uncontrolled airspace.

The company has been proactively addressing incidents that it can control to enhance airspace safety by introducing new procedures as well as re-sectorizing the airspace to reduce the amount of co-ordination.

The trend of decreasing incidents also indicates a higher safety awareness which is a result of PNGASL efforts and initiatives in promoting safety awareness across its entire operations through a just reporting culture.

Safety HighlightsSafety Management System (SMS)

The major Safety highlight of the year was the completion, approval and adoption of the PNGASL Safety Management Manual (SMS) in July 2012. This Manual provides guidelines for PNGASL in managing the Quality Management System and SMS. It provides detailed procedures and processes by which PNGASL will promote and establish an environment and culture of continuing improvement that will enhance the safety, quality and efficiency of operations within the PNG Air Traffic Management System.

As always, Safety remained the primary focus for all PNGASL air navigation activities throughout its business operation. The company continued to aggressively review the safety reporting, investigation and monitoring processes. Established principles of hazard identification, risk assessment, reporting of incidents and corrective and preventive actions were maintained as a necessity and a way forward in safety.

The promotion of safety in accordance with the Board safety policy and through an open and transparent incident reporting culture has resulted in increased safety awareness.

Safety

Maintenance and Engineering (MES) Technical staff, Kairi Ipai in his full safety harness carrying out routine maintenance check on a transmitting tower.


ANS Certification

The company continued to maintain its Part 171 and Part 172 Operating Certificates during the year; Part 171 mandating it as the Air Navigation Maintenance Services Provider and Part 172 mandating it as the Air Traffic Services Provider. The company further submitted a Part 175 Exposition Document to attain a mandate as the Aeronautical Information Services Provider and awaits the Regulator’s response.

PNGASL continued to focus on achieving full compliance with Civil Aviation Rules and ensured that it operated within the Civil Aviation Rules to maintain an acceptable level of safety.

Komo Safety Case

With the development of a new aerodrome at Komo to facilitate transportation of cargo into the new LNG site, the PNGASL Board directed that a Safety Case to be formulated to address the critical concern for safety of aircrafts operating within the vicinity of the new aerodrome and the surrounding airspace, considering that the Project owners were intending to use the Antonov AN124-100, with a maximum payload of 120 tonnes, to transport cargo through the airspace classified as uncontrolled zone where no direct air traffic control services were provided but having an airspace that had mix traffic operations as well as crossing traffic operated mainly by Helicopters and small sized aircrafts. Hazards Identification and Risk Assessment was conducted to determine serious potential risks with recommended possible control measures identified to mitigate these risks. The Safety case was delivered to CASA(PNG) for further deliberation with the Industry.

Antonov AN124-100 Landing at Komo with it’s payload.

Heavylift Helicopter landing at Jacksons International Airport

VSAT disk atop Port Moresby ATS Control Tower

Port Moresby ATS Control Tower


Service

Improvements in the delivery of services were continuously realized throughout the year. Air Traffic Management Services continued to encourage the maintenance of dual ratings for its controllers as a contingency for service continuity in the event of systems/facility failure.

The major achievement in the service delivery area was the successful migration into the new 2012 International Civil Aviation Organization (ICAO) Flight Plan Format. The ICAO had given all States until 12th November 2012 to implement aeronautical messages through a new internationally recognized format. As a result, PNGASL in close collaboration with its Strategic Partner Airservices Australia and awareness with the local aviation industry implemented the new format by the due date with no major disruptions.

The Flight Information Service (FIS) rationalization project was completed in June and saw all Flight Service functions, previously provided at Nadzab, successfully transferred to Port Moresby. Associated impacts on staff and other related areas were consistently addressed throughout the year. This strategic decision now means that FIS will only be provided out of Port Moresby and Madang.

The future of aviation in PNG and its impact and contribution to the economic development of the country continues to be bright and PNG Air Services Limited is proud to be part of a dynamic industry and making its contribution to national growth based in the highest standards of safety.

A key indicator of economic growth, attributed mainly to the overall boom in the Gas and Resource sectors in PNG, is the increase of aircraft movements since January of 2012. The

increase has been consistent throughout the whole of the year in regard to aircraft movements. Flight Services which is responsible for all domestic movements also recorded significant growth. Whilst not yet formally certified by CASA PNG, the PNGASL Aeronautical Information Service Unit consistently produced and disseminated NOTAM and flight briefing information via the internet including NAIPS on a daily basis. The use of STOP PRESS NOTAMs via e-mail services continues to provide enhancement to flight planning and in-flight update services.

The provision of Search and Rescue (SAR) Alert and Coordination Services continued to be provided by PNGASL. The Rescue Coordination Centre (RCC) located on the First Floor of the ATS Centre is fully staffed and maintained on a hot standby arrangement. The provision of SAR services is a community service obligation by PNGASL, as its contribution to the community as a caring and responsible organization.

Infrastructure

PNGASL continued to maintain old and ageing Communications, Navigations, Surveillance and Air Traffic Management infrastructure inherited from the former CAA ensuring no major disruption to services.

Our objective in 2012 has been the pro-active conduct of Scheduled Maintenance on operational facilities to avoid unplanned breakdowns. In complementing that, the company had also been responding efficiently to reported faults ensuring minimum service outages. We progressively restocked our spares supply however the

Service and Infrastructure Highlights


challenge has been sourcing of parts which have become obsolete.

PNGASL has connected up most of its key navigational aids through Remote Control and Monitoring System (RCMS) to ensure that it efficiently responded to any faulty condition before receiving complaints from its customers. The RCMS allows PNGASL to not only monitor but control its systems both from its manned centers and centrally from the Port Moresby ATC Center.

Third Party service providers continued to hinder PNGASL’s efforts in achieving reliability and consistency in its delivery of services. We have therefore taken appropriate actions to providing our own facilities and systems to maintain a high level of system availability with minimal or reduced outage times.

During the year PNGASL provided its own Standby Power Generating Sets due to unreliable main power supply from PNG Power Limited and unreliable standby power supply from NAC at major airports throughout the country. PNGASL provided its own VSAT network to overcome unreliable communication network services provided by both Telikom and Digicel and we commenced providing our own Automatic Weather Observation Stations (AWOS) to provide real-time weather information to pilots without having to rely on outdated weather information provided by the NWS.

Improvment of PNGASL Equipments

Recently installed fuel bowser at PNGASL head office, Port Moresby.

New genset installation at Burns Peak transmitter site.

Recently installed 600kVa standby genset, PNGASL head office.

Standby genset at DVOR site Nadzab Airport, Lae.


The following major projects were undertaken by PNGASL in 2012 and were funded either by the Government of Papua New Guinea, AUSAID or PNGASL generated revenue;

1. Kavieng DVOR/DME installations to replace the ageing equipment that has become obsolete. Project successfully completed in May 2012. 2. World Geodetic Survey – 84 Datum (WGS-84) Project. Project specifications completed and tendered out.

3. Automatic Weather Observation Stations (AWOS) Project. Project implemented after Contract was executed with Vaisala the Main Contractor. 4. Mt. Konokalang Power Supply and VHF Radio Facilities Upgrade. Project tendered. 5. VHF Coverage Project. Project tendered. 6. Port Moresby DVOR/DME Replacement Project. Project approvals obtained for Contract execution and implementation in 2013. 7. PNG Automatic Dependent Surveillance – Broadcast, Multilateration and Air Traffic Management System (PAMAS) Project. Phase 1 tender seeking Expressions of interest completed and to be shortlisted in early 2013 for detailed tender submission. 8. New Aeronautical Message Handling System Provision. Project publicly tendered for further evaluation and implementation in 2013.

Under the 2012 Budget, PNGASL was allocated K5 million to implement the Port Moresby DVOR/DME Replacement project.

Project Highlights


Very strict fiscal control measures continue to be enforced by management. As a result, our cash flow remained positive with all bills settled on time, every time. Adding to that, we have an excellent credit rating with the banks and the business community, in general.

Due to this stringent financial management, PNGASL achieved very pleasing and positive results in 2012. The implementation of the new charges in June also contributed to the positive results.The economic outlook for 2012 and beyond remains the subject of debate about the shape of the recovery; however the industry experienced

steady growth in the domestic front as a result of the increased economic activities due to the LNG Projects. These increases are likely to drop off once economic activities stabilize.

As a result of this outlook, the balance sheet remained strong in 2012.

Financial Performance


New Graduates together with PNGASL Managers and Graduate Trainee Program Consultant

Port Moresby

New ATC Cadets with senior PNGASL Staff and TrainersPort Moresby

RECRUITMENT & TRAINING REMAINED KEY FOCUS AREAS


Auditor’s Report


Air Traffic Control TowerPort Moresby

WORLD CLASS AIR NAVIGATION SERVICE PROVIDER


Financial Statements


Notes to Financial Statements


Board of Directors Executive Committee

Corporate Information

Mr. Colin KuchelChairman

Capt Ted PakiiManaging Director & CEO

Capt Ted PakiiManaging Director & CEO

Mr. Michael JelliffeDeputy Chairman

Mr. Clement KapapalGeneral Manager Business Development & Executive Support

Mr. Hosea RobinGeneral ManagerMaintenance & Engineering Services

Mr. Tarcisius BolaGeneral Manager Air Traffic Services(until June 2012)

Mr. John UwareEx-officio Director

Mr. Kevin LuanaEx-officio Director

Mr. Marcellin DonnellyGeneral Manager Finance

Mr. Dean KuriGeneral Manager Corporate & Administration Services

Ms Sharon NaluCompany Secretary(from July 2012)


Notes

“TO BE A WORLD CLASS AIR NAVIGATION SERVICES PROVIDER”

· pdf file · 2015-11-03ltd air services 2012 ... to the transport sector...

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