parliamentaryportfoliocommitteeontransport 6 april 2005 cape town

South African Civil Aviation Authority

PARLIAMENTARYPARLIAMENTARYPORTFOLIOPORTFOLIOCOMMITTEECOMMITTEE

ONONTRANSPORTTRANSPORT

6 APRIL 20056 APRIL 2005

CAPE TOWNCAPE TOWN


• Regulatory Framework• Staff Profile• Strategic Intent• Budget 2005 / 2006

PRESENTATION CONTENT


Regulatory Framework


International Treaty ObligationsInternational Treaty Obligations

International Civil Aviation Organization International Civil Aviation Organization

Standards And Recommended PracticesStandards And Recommended Practices

Minister of TransportMinister of Transport

Responsible Aviation ActsResponsible Aviation Acts

HOW AVIATION IS REGULATED


AVIATION ACTS

Civil Aviation Act Civil Aviation Act

No. 74 of 1962 No. 74 of 1962

Civil Aviation Offences ActCivil Aviation Offences Act

No. 10 of 1972No. 10 of 1972

Convention on International Convention on International

Recognition of Rights in Aircraft ActRecognition of Rights in Aircraft Act

No. 59 of 1993No. 59 of 1993


AVIATION ACTS

Aviation Acts Aviation Acts

Regulations (CARS & CATS)Regulations (CARS & CATS)

Security Regulations (NASP)Security Regulations (NASP)

Levies ActLevies Act

Allows for implementation of chargesAllows for implementation of charges


WHAT DOES THE CAA DO?

Regulate aviation safety and securityRegulate aviation safety and security

Oversee development of the aviation industryOversee development of the aviation industry

Ensure compliance with aviation legislationEnsure compliance with aviation legislation

Promote aviation safety and securityPromote aviation safety and security

Investigate and report Accidents and Incidents Investigate and report Accidents and Incidents


WHERE DOES THE CAA DO IT?

CAA Regulates & LicensesCAA Regulates & Licenses

AirportsAirportsRunways, Lights, Signage, Obstructions, Runways, Lights, Signage, Obstructions, etc.,etc.,

AirspaceAirspaceAir Traffic Units, Design InstrumentAir Traffic Units, Design InstrumentApproaches, CalibrationApproaches, Calibration

AircraftAircraftAirworthiness, Certification, Maintenance Airworthiness, Certification, Maintenance OrganizationsOrganizations

Aeronautical Information ServicesAeronautical Information ServicesAIC’s, AIP, NotamsAIC’s, AIP, Notams


WHERE DOES THE CAA DO IT?

CAA Regulates and LicensesCAA Regulates and Licenses

PersonnelPersonnelPilots, Flight Engineers, Cabin Crew, Pilots, Flight Engineers, Cabin Crew, Maintainance Engineers, Air Traffic Maintainance Engineers, Air Traffic ControllersControllers

OperationsOperationsOperator Safety Standards, Management Operator Safety Standards, Management SystemsSystems

SecuritySecurity Screening at Airports, Dangerous Goods, Screening at Airports, Dangerous Goods, National, Local and Operator Security National, Local and Operator Security Plans, National Security PlanPlans, National Security Plan


COMPLIANCE PHILOSOPHY

SAFETY = CO-OPERATIVE VENTURESAFETY = CO-OPERATIVE VENTURE

• Not Solely through PolicingNot Solely through Policing

• Requires Commitment and Responsibility by Requires Commitment and Responsibility by ALLALL

• Voluntary Compliance by StakeholdersVoluntary Compliance by Stakeholders

CAA WILL ENSURE COMPLIANCE ThroughCAA WILL ENSURE COMPLIANCE Through

• Surveillance, encouragement and promotionSurveillance, encouragement and promotion

• EnforcementEnforcement


MechanismsMechanisms • Examination and testing to verify Examination and testing to verify

compliance with standardscompliance with standards• Suspension of an Aviation License Suspension of an Aviation License

pending other actionpending other action• Withdrawal / Cancellation of Aviation Withdrawal / Cancellation of Aviation

License License • FineFine• Criminal chargesCriminal charges

ENFORCEMENT


ICAO AUDITS

1997:1997: Many findings pertaining to Regulatory Many findings pertaining to Regulatory Framework and its implementation Framework and its implementation

1999:1999: Improved situation and findings Improved situation and findings pertaining to skills and levels of staffpertaining to skills and levels of staff

2000:2000: Recommendations made regarding Recommendations made regarding further Regulatory development and further Regulatory development and implementationimplementation

2007:2007: Next audit Next audit


MAJOR DEVELOPMENTS

• Establishment of a Security Department• International co-operation to harmonize

Regulations• Improved regulatory framework • Significant reduction in accidents• Staff transformation• Self-funded, achieved targeted retention• Increased levels and standards of safety

and security oversight

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1988 1990 1992 1994 1996 1998 2000 2002 2004

Aircraft Register Accidents

AIRCRAFT REGISTER VS ACCIDENT RATE

0

20

40

60

80

100

120

140

160

180

200

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Recreational General/Private Commercial Air Transport 3-D Column 5

ACCIDENTS BY SECTOR


Staff Profile

ExecutiveManagement

TechnicalSupport

Indian

Coloured

African

White

0

10

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40

50

60

70

80

CAA STAFF PROFILE APRIL 2005

Indian

Coloured

African

White

STAFF PROFILE APRIL 2005

White Indian Coloured African TotalExecutive 0 1 0 4 5Management 19 1 0 17 37Technical 42 6 3 76 127Support 24 4 7 72 107Total 85 12 10 169 276

CAA STAFF AS ON 1 APRIL 2005


STAFF PROFILE: 2005 / 1998


CAA STAFF AS ON 1 APRIL 2005


CAA STAFF AS ON 1 OCTOBER 1998

Exe

cutiv

e

Ma

na

ge

me

nt

Te

chn

ica

l

Su

pp

ort

July 1998

Oct 1998

April 20050

10

20

30

40

50

60

CAA GENDER PROFILE JULY 1998 - APRIL 2005

GENDER PROFILE: 2005 / 1998

STAFF PLANNING – 2005 / 2006

Department Current Vacancies New Total

Company Secretary 3 0 0 3

CEO Office 9 7 4 20

Security 18 11 20 49

Occurrence Investigations 16 3 0 19

Infrastructure 34 7 3 44

Corporate Services 46 14 11 71

Safety Operations 142 15 17 174

TOTAL 268 57 55 380


Strategic Intent


THE VISION OF THE CAA

Excellence in aviation safety, security and industry development


THE MISSION OF THE CAA

• Ethical enforcement of the regulatory standards through partnership and consistent with global best practice

• Harmonisation of regional standards• Facilitating transformation of the aviation industry• Creation of a knowledge-based, customer focused

organisation• Function within a sustainable business model


THE STRATEGIC INTENT

• Develop a framework for leadership in the formulation of international regulatory standards

• Create a Financial model that supports a going concern

• Develop and implement a comprehensive HR strategy in line with the needs of the business

• 4. Establish a regulatory framework that supports development and transformation of the Civil Aviation industry


THE STRATEGIC INTENT

• Proactive oversight and enforcement to ensure aviation safety and security

• A culture of sound corporate governance

• Develop and implement a comprehensive knowledge management system

• Facilitate the establishment of an independent Accident and Incident Investigation organization


Budget 2005 / 2006

0

20

40

60

80

100

120

140

160

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Govt Subsidy Accidents User Fees Indirect Charges

FINANCIAL PROJECTIONS: 1998 - 2008


Capacity building to achieve strategic intent

1. Anticipated growth in aviation industry

Alignment of human resources with growth

• Increase in technical expertise: SA Registered Pilots increased:

- Average of 500 per year Aircraft register increased:

- Register 2002: 7,927- Register 2003: 8,403- Register 2004: 8,822Average increase per year: 445

Aircraft Maintenance Organizations increased:- Average of 35 per year

Mortgage transactions increased:- From 394 in 2002 to 654 in 2004

FOCUS OF THE 2005/2006 BUDGET


FOCUS OF THE 2005/2006 BUDGETCapacity building to achieve strategic intent

(continued)

• Increase in support services Establishment of a client service centre

- Average of 100 clients more per day

2. Adherence to ICAO requirements• Training and development

3. Narrow oversight gaps• Ad hoc / unexpected inspections• Increased enforcement activities• Avmed – insourcing of designated services• Testing standards and curriculum development• Cargo (new) and dangerous goods

Existing funding model

2003: Planned retention – 14.8m, Actual retention – 1.1m

2004: Planned retention - 13.7m, Actual retention - 14.80m

2005: Planned retention - 12.2m, Actual retention – 13.70m



TARGETED RETENTION

2004 2005 2006 2007 2008

Staff Costs 58,95m 76,59m 95,96m 131,95m 142,50m

Operational Costs

27,01m 27,56m 29,49m 31,56m 33,76m

Depreciation 7,71m 8,01m 12,44m 14,83m 18,93m

Strategic Projects

1m 1m

TOTAL 93,67m 112,18m 138,90m 179,34m 195,20m

% Increase 21 % 20 % 24 % 29 % 9 %

Funding Model 97,05m 104,80m 113,20m 122,25m 132,04m

Variance +3,38m -7,38m -25,70m -57,09m -63,16m

TOTAL EXPENSES

2004 2005 2006 2007 2008


% of Total 63 % 68 % 69 % 73 % 73 %

Operational Costs

27,01m 27,56m 29,49m 31,56m 33,76m


Strategic Projects

1m 1m

TOTAL 93,67m 112,181m 138,90m 131,94m 142,50m

Funding Model

97,05m 104,80m 113,20m 122,25m 132,04m

Variance +3,38m -7,38m -25,70m -9,69m -10,46

Net variance 49,85m

TOTAL EXPENSES

2004 2005 2006 2007 2008


Operational Costs

27,01m 27,56m 29,49m 31,56m 33,76m


Strategic Projects

1m 1m

TOTAL 93,67m 112,18m 138,90m 179,34m 195,20m

% Increase 21 % 20 % 24 % 29 % 9 %


Variance +3,38m -7,38m -25,70m -57,09m -63,16m

TOTAL EXPENSES

2004 2005 2006 2007 2008


% of Total 63 % 68 % 69 % 73 % 73 %

Operational Costs

27,01m 27,56m 29,49m 31,56m 33,76m


Strategic Projects

1m 1m

TOTAL 93,67m 112,181m 138,90m 131,94m 142,50m


Variance +3,38m -7,38m -25,70m -9,69m -10,46

Net variance 49,85m

TOTAL EXPENSES

MAJOR CAPITAL ITEMS

2005/2006:

• ACAS/TCASII Aircraft – R0,50 m

• Furniture and fittings – R1,5 m

• Office equipment and Client Service Centre – R1 m

• IT systems – R5,5 m

TOTAL CAPITAL SPEND: R8,5 M

TOTAL REVENUE

2004 2005 2006 2007 2008

TOTAL 119,45 m 132.51 m 146,90 m 188,42 m 200,82 m

Total increase 60 % 11 % 11 % 28 % 7 %

User Fees 26 % 27 % 28 % 25 % 26 %

Safety Charge 63 % 59 % 57 % 62 % 61 %

Fuel Levy 4 % 4 % 3 % 2 % 2 %

Interest and Other

2 % 5 % 8 % 7 % 7 %

Accidents 5 % 5 % 4 % 4 % 4 %

USER FEES

2004 2005 2006 2007 2008

Revenue 31,076 m 36,926 m 41,726 m 47,151 m 52,809 m

Total increase

17 % 18 % 13 % 13 % 12 %

Price increase

12 % 11 % 11 % 11 % 10 %

Volume increase

5 % 7 % 2 % 2 % 2 %

Funding Model

33 m 37.2 m 41.3 m 46 m 50 m

Variance - 2 m - 0.3 m + 0.4 m + 1.1 m + 2.8 m

PASSENGER SAFETY CHARGE

2004 2005 2006 2007 2008

Revenue 74,89 m 78,39 m 82,31 m 117,60 m 123,48 m

Total increase

100 % 4,67 % 5 % 42.86 % 5 %

Price increase

R3 R0 R0 R3 R0

Number of pax

12,197m 12,768m 13,406m 13,410m 14,080m

Volume increase

5 % 4,67 % 5 % 5 % 5 %

Funding Model

74 m 77,7 m 81.58 m 85.66 m 89.94 m

Variance + 0.89 m + 0.69 m + 0.72 m + 31.9 m + 33.53 m

BUDGET 2005 / 20062004 2005 2006 2007 2008

REVENUE 119,45 132,51 146,90 188,42 200,81

- User Fees 31,07 36,92 41,72 47,15 52,80

- Safety Charge 74,89 78,39 82,31 117,60 123,48

- Fuel Levy 4,55 4,45 4,54 4,59 4,64

- Accidents 5,68 6,02 6,5 7,03 7,5

- Other 3,12 6,70 11,80 12,04 12,29

EXPENSES 93,66 112,18 138,90 179,34 195,20

- Staff Costs 58,94 76,59 95,96 131,94 142,50

- Operational 27,01 27,56 29,49 31,56 33,76

- Depreciation 7,71 8,01 12,44 14,83 18,93

- Strategic - - 1,0 1,0 -

SURPLUS 25,78 20,33 8,00 9,08 5,61


Regulatory framework of CAA, Staff Regulatory framework of CAA, Staff developments, comprehensive developments, comprehensive strategic intent supported by a strategic intent supported by a sustainable financial model,sustainable financial model,

Further increase in overall aviation Further increase in overall aviation safety and security outcomessafety and security outcomes

IN CONCLUSION…


QUESTION TIME

parliamentaryportfoliocommitteeontransport 6 april 2005 cape town

Documents

civil aviation offences

standards of safety

allvoluntary compliance

regulatory development

operator security plans

aircraft act

maintainance engineers

flight engineers