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SACAA Revised Strategic Plan 2013 to 2017 Final Copy 26/02/2013 Page 1

SOUTH AFRICAN CIVIL AVIATION AUTHORITY

REVISED STRATEGIC PLAN 2013/14-17

Date of Tabling: March 2013


Contents

1. Foreword by Minister of Transport .......................................................................................................... 3

2. Foreword by Chairperson ....................................................................................................................... 4

3. Foreword Acting Director of Civil Aviation ............................................................................................ 6

4. Official Sign-Off ........................................................................................................................................ 7

5. What SACAA is about .............................................................................................................................. 8

5.1 Legislative and other Mandates ......................................................................................................... 8

5.2 Organisational Structure ...................................................................................................................... 9

6. Operational Environment Analysis....................................................................................................... 10

6.1 Global Trends ........................................................................................................................................ 10

6.2 African Industry Dynamics ................................................................................................................. 11

6.3 South African Industry ......................................................................................................................... 11

6.4 External Climate PESTLE Analysis .................................................................................................... 12

6.5 SACAA Functional Capability SWOT Analysis ............................................................................. 13

7. The SACAA 2013 2017 Strategic Plan ................................................................................................ 14

7.1 Strategy Revamp a Necessity ........................................................................................................... 14

7.2 A logical Process, from the Core Ideology to Action Steps ........................................................ 14

7.3 Mission .................................................................................................................................................... 14

7.4 Vision ...................................................................................................................................................... 15

7.5 Brand Promise ....................................................................................................................................... 15

7.6 Values .................................................................................................................................................... 15

7.7 Development of 2013/14 Strategic Objectives ............................................................................. 15

7.8 Organisational Analysis Aligned with Strategic Objectives ......................................................... 17

7.8.1 Operational Environment Analysis Aligned to Objectives .................................................. 17

7.8.2 PESTLE Analysis Aligned to Objectives ..................................................................................... 18

7.8.3 SWOT Analysis Aligned to Objectives ...................................................................................... 18

7.8.4 Alignment of DoT and SACAA Objectives ............................................................................. 19

8. Constitution of SACAA Operational Plans ........................................................................................... 22

9. Annual Targets ....................................................................................................................................... 22

10. Budget ..................................................................................................................................................... 27

11. Abbreviations ......................................................................................................................................... 28

12. Contact Details ....................................................................................................................................... 29


1. Foreword by Minister of Transport

The 2010 New Growth Path Framework aimed at enhancing growth,

employment creation and equity, cited the transport sector as one of the

key economic growth areas. From an aviation perspective, the Civil Aviation

Act No. 13 of 2009 amongst others mandates the South African Civil Aviation

Authority (SACAA) to oversee and continuously improve levels of safety and

security throughout the civil aviation industry. As leverage, the seven

elements of Broad-Based Black Economic Empowerment (B-BBEE) will

contribute by enhancing the position of the Historically Disadvantaged

Individuals (HDIs) particularly black women, communities, youth and people

living with disabilities while alleviating poverty, unemployment and inequality.

This will also assist in realising the objectives of the New Growth Path

Framework.

A review of the civil aviation demographics in terms of licensed pilots, aircraft maintenance

engineers and cabin crew reveal that the HDIs are under-represented. Government should

intervene to address the cost barriers to aviation skills development. A single goal of facilitating

access to HDIs through creative means is paramount. In this regard, the Department of Transport

(DoT) will continue to forge and strengthen possible partnerships that are aimed at addressing the

aviation skills development challenge. Such efforts will have a positive effect on downstream

industries, and will address skills drain perpetrated by international airlines that are supported by

strong economies.

Global air mobility increase and ageing aircraft operating mainly in the African airspace pose

safety challenges that must be addressed by SACAA. These challenges will be addressed by

systematic implementation of the International Civil Aviation Organisation (ICAO) Standards and

Resolutions. Safety record in the continent expects us to work closely with the Africa continent in

line with ABUJA declaration and also for co-operation with regional ICAO bodies to enhance

safety.

SACAA has aligned its Strategic Plan with that of the Department of Transport (DoT). This will enable

SACAA to deliver on the following three (3) Ministerial outcomes:

A transport sector that is safe and secure; Increased contribution to job creation; and Increased contribution of transport to environmental sustainability.

As the Executive Authority, I endorse the Strategic Plan and commit to monitor its implementation

by SACAA to ensure effective service delivery.

Mr Dikobe Ben Martins, MP

Executive Authority of SACAA


2. Foreword by Chairperson

It gives me great pleasure to present SACAAs Revised Strategic

Plan for the 2013 to 2017 financial years. The previous Strategic

Plan covered a five-year period from 2012 to 2017, and had to be

revised to improve our strategic focus and alignment with the

revised DOT national objectives 2013 to 2017.

The 2013 - 2017 strategy is about compliance and continuous

improvement in the discharge of our mandate to ensure civil

aviation safety and security in the country and the region

overall. It is also about organisational sustainability and

performance underpinned by a strong focus on people, skills,

business processes and enabling technology, all of which is

supported by productive partnering with the aviation industry

stakeholders and a strong corporate governance ethos.

Over the years, SACAA has compared well with international regulators in terms of compliance to

the ICAO 8 critical elements in Safety and Security, having achieved 99.3% compliance since the

last ICAO audit in 2007. In line with this, we have revised our vision to be amongst the top 30 CAAs

within five years, to ensure that we retain our regulatory excellence with a continued focus on on-

going improvement. In support of our vision, we are focusing on operational excellence and share

with you our new Brand Promise Our Excellence, Your Safety.

We are certain that given our continued ICAO safety and security compliance as well as our

continued United States Category 1 status, we will achieve this vision within the target period and

the public will incrementally experience our brand promise in all engagements with SACAA.

We cannot achieve our vision without ensuring organisational sustainability. Wavering global

conditions dictate a review of SACAAs income mix in order to ensure our future as a going

concern. In addition, the local, regional and global challenge of scarce aviation skills in certain

categories requires concerted development by all industry stakeholders to ensure we have the

requisite technical skills to achieve our mandate and a transformed aviation industry.

We are encouraged by the on-going work of the DOT in the COSCAP-SADC, a regional project

earmarked to consolidate aviation safety oversight. Equally of importance is the work being done

in developing the regional security model, the CASP. SACAA believes that amalgamating the

above will result in an efficient cross-functional model, with reduced overhead costs. In line with the

developments in these areas, we will contribute to ensuring regional compliance and a reduction

in Africas accident rate through continued regional co-operation in areas of need, including

regulatory skills development.

The need to regulate the impact of Aviation on the Environment remains on the agenda. To date

we have established a number of regulations that assist in regulating aviation environmental

emissions. We will continue to take direction from ICAO and the DOT to implement the required

standards and practices and engage with our stakeholders in establishing the necessary

regulations.


Below are the 2013/14 - 17 Strategic objectives that seek to respond, amongst others, to the

context highlighted above:

Build a continuously improving safety and security (operations, aircraft, aviation security and infrastructure) environment

Active participation in influencing national, regional and continental aviation development Influence the breadth and pace of industry development and the industry transformation

agenda

Reduce aviation impact on the environment Build resilient organisational capacity that embraces a high-performance culture Optimise organisational performance Embed principles of corporate governance in the work of every SACAA team member and

service.

I would like to encourage all organisational stakeholders to embrace and live this strategy, and

watch the SACAA soar in international rankings.

Phindile Riba

Chairperson of the Board


3. Foreword Acting Director of Civil Aviation

It is a pleasure to submit the South African Civil Aviation Authoritys Revised Strategic Plan for 2013

2017, following a fully inclusive and consultative process. The process called

for frank and robust discussion on transformational change within SACAA.

Employees from all levels participated in the process, as the strategic plan

must be owned by its implementers. This culminated in the birth of a daring

vision that moves all from their comfort zones; clearly it cannot be business as

usual going forward.

To achieve SACAAs greater vision, smart technologies will have to be

employed in order to limit human error, provide an audit trail and improve

efficiencies. Needless to say, the improvement of oversight activities is a

priority. This is dependent on achieving the target of fully-integrated systems

throughout the organisation in two years. These contemplated smart technologies will assist in the

implementation of Safety Management Systems and adherence to the continuous monitoring

approach of the International Civil Aviation Organisation (ICAO).

From a peoples perspective, this strategy is about appointing the right people to the right jobs,

retaining critical skills and transforming the Authoritys technical demographics. In pursuit of the

aforementioned, a comprehensive retention strategy and a simplified effective performance

management system which delivers on the organisational goals are paramount.

Aviation in South Africa remains untransformed on all its fronts and the statistics go a long way in

demonstrating this quandary. To this end, the organisations are positioned to contribute on a wider

national platform to address this imbalance. However, strict implementation of the BBBEE Aviation

Code will assist in bringing historically disadvantaged organisations into the mainstream of trade

with SACAA. This is the reason why the 2013/14 - 17 strategy seeks to drive BBBEE through a well-

resourced steering committee, to ensure delivery on transformational objectives within a limited

time frame.

The organisational strategic trajectory spells out the intent to progress on matters of corporate

governance. Ensuring adherence to prevailing prescripts, and maintaining favourable opinions

from external auditors is not negotiable. In this regard, the organisation intends subjecting itself to

scrutiny in governance matters in order to ensure maximum compliance.

Once again the SACAA welcomes an opportunity to be assessed by ICAO in the latter part of the

2013/14 financial year, an opportunity of third-party confirmation on safety and security oversight

performance.

Finally, I would like to appeal to every employee to take ownership and serve the organisation with

commitment, in the interest of aviation safety and security. May I sum up by inviting our

stakeholders to partner with us and realise our vision.

Poppy Khoza

Acting Director of Civil Aviation


4. Official Sign-Off

It is hereby certified that this Strategic Plan:

Was developed by the leadership and the people of the South African Civil Aviation Authority under the guidance of the SACAA Board;

Has been approved and endorsed by the Board; Takes into account all the relevant policies, legislation and other mandates for which

SACAA is responsible, and

Accurately reflects the strategic outcome-oriented goals and objectives which SACAA will endeavour to achieve over the period 2013 to 2017.

Ms Phindile Riba Ms Poppy Khoza

Chairperson of the Board Acting Director of Civil Aviation

Mr Asruf Seedat Mr Sphelo Ntaka

Chief Financial Officer Acting Executive Manager: Planning

Mr Dikobe Ben Martins, MP

Executive Authority


5. What SACAA is about 5.1 Legislative and other Mandates

The South African Civil Aviation Authority (SACAA) was established on the 1st of October 1998

following the enactment of the South African Civil Aviation Authority Act. The SACAA is an agency

of the Department of Transport (DoT). The Act provides for the establishment of a stand-alone

authority mandated with promoting, regulating, supporting, enforcing and continuously improving

levels of safety and security throughout the civil aviation industry. The above is to be achieved by

complying with the Standards and Recommended Practices (SARPs) of the International Civil

Aviation Organisation (ICAO), whilst considering the local context.

This mandate relates to aviation safety and security oversight of airspace, airports, aircraft,

operations and personnel. In discharging the mandate, SACAAs role encompasses:

Regulation: Developing and promoting appropriate, clear and concise regulations and technical aviation

safety and security standards

Formulating and approving supporting regulations and technical standards through a consultative process with the aviation industry in terms of section 156 of this Act; and

Overseeing and regulating the flight inspection of navigational aids to aviation.

Aviation Security, Aircraft Safety and Air Safety Developing an effective enforcement framework to ensure compliance with aviation safety

and security standards

Conducting regular reviews of the system of civil aviation safety and security Enhancing aviation security by the development and dissemination of progressive

administrative and technical practices, promoting their use by security services, airport

administrators and air service operators

Reviewing and ensuring the adequacy of security programmes and associated documentation produced by airports, air service operators and cargo operations, monitoring

their implementation to ensure continuing effectiveness and incorporation of amendments as

required

Conducting comprehensive aviation industry audits and surveillance, including the assessment of safety- and security-related decisions taken by industry management at all levels for their

impact on aviation safety and security

Monitoring, implementing and enforcing the National Aviation Security Programme (NASP) Conducting regular and timely assessment of international safety and security trends and

developments, and

Ensuring compliance with ICAO.

Stakeholder Management Encouraging a greater acceptance by the aviation industry of its obligation to maintain high

standards of aviation safety and security, through:

a. Comprehensive safety and security education and training programmes; b. Accurate and timely aviation safety and security advice, and c. Fostering industry management awareness, and within the community generally, of the

importance of aviation safety and security and compliance with relevant legislation.


Promoting awareness about aviation safety and security issues, and Issuing certificates, licences, registrations and permits timeously.

5.2 Organisational Structure The current SACAA high-level structure is as follows (to be aligned with the development and

implementation of optimal business process per the SACAA 2013/17 Strategy in FY 2013/14).


6. Operational Environment Analysis Perspectives considered as having an impact on the 2013 - 2017 Revised Strategic Plan are as

follows:

Global trends African industry dynamics South African industry trends External climate SACAA functional capability.

6.1 Global Trends An International Air Traffic Association (IATA) report released in August 2012 indicates a decline in

global business confidence as illustrated in the adjacent business confidence graph. Confidence

peaked in 2011 and dipped during

2012, a direct reflection of air travel in

related years represented by Revenue

per Passenger Kilometres (RPK). The

International Passenger Market graph

trend indicates that total global air

travel maintains growth levels, albeit

growth trends are slowing. This may

negatively impact SACAAs revenues,

as 75% of its income is levied through

passenger ticketing. Another July

report from the Association

collaborates the above negative

growth trend, reflecting a 5.6% increase in demand in May, having increased by 7.1% in April. This

declining scenario was prevalent in all regions except for the Middle East.

The seasonally adjusted passenger trend as per the International Passenger Growth by Region

maintains some growth, although tapering as already stated. The same passenger performances

classified under regions indicate high annualised growth in the Middle East in excess of 15% and

18% for the month of May and June respectively. Africas performance in excess of 10% still

indicates robust growth under current circumstances. However, SACAA experienced a 3%

average growth during the same period, indicating some loss in market share, considering that a

local airliner is Africas number one Airline. This significant growth tapered at the end of the year,

with cumulative year on year passenger figures decreasing by 1.4%, largely due to the insolvency


of one of the local airlines. A carefully coordinated national airlift strategy with national role players

will have to be implemented as soon as possible.

6.2 African Industry Dynamics African industry dynamics indicate compensating growth in freight activities. The Total Freight

Market graph on the left indicates an increasing trend, with the regional activities on the right

indicating a 20% and 15% annualised increase for the May and June 2012 period. While the freight

sector records high traffic volumes, this benefit is not translated to SACAA revenues, as the current

revenue model is only based on passenger movement, and not freight movement. This situation

can only be corrected by a robust model that benefits from freight. A further impact on SACAA

would be increased surveillance activities, particularly in goods transported by air.

In May 2012 the African IATA region and the ICAO developed a five-step Africa Strategic

Improvement Action Plan to address safety deficiencies and improve regional regulatory oversight

by 2015. This was based on an accident analysis between 2006 and 2010 that highlighted

insufficient regulatory oversight as a major contributory factor. To this end, runway excursions and

loss of control were underscored as major contributors to the high accident rate, with the former

accounting for 25% of Africas accidents. Out of the five-point plan, the following two are deemed

most relevant to SACAA:

Adoption and implementation of an effective and transparent regulatory oversight system Implementation of Safety Management System (SMS).

In view of the above, fine tuning of the SA SACAA Act and regulations is imperative, including

sharing of best practices within the general AFI region and SADC in particular.

6.3 South African Industry Various IATA reports highlight salient points concerning the South African aviation industry. The

aviation and aerospace sectors contribute to approximately USD 6,07 billion dollars (ZAR 51 billion),

that is 2.1% of the GDP. This translates to 227,000 jobs, with a sizeable portion being driven by

commercial airline transport.

A recent 2012 Oxford Economics aviation study commissioned by IATA articulated the importance

of this sector to the overall economy. It revealed that the industry caters for 21 million passengers

and over 240,000 tonnes of cargo handled by 52,500 scheduled flights within 77 airports and 51

countries. Sixty-six routes per week connect the country with major economic centres throughout

the world. This industry is set to grow by ZAR 1.5 billion a year, with the following added benefits:

Opening up markets to South African exports Lowering transportation costs, particularly long-distance routes through competition


Adoption of new business practices that take advantage of Just-In-Time inventory management systems, and

Reduction of unemployment. In view of the above, SACAA has an important role to play by improving ease of doing business in

the aviation sector in order to facilitate industry development. This is set to be improved by

optimised processes and partnering with various stakeholders to offer service excellence to current

and potential customers.

Finally, SACAA has an opportunity to enforce the Transport Charter BBBEE Code. This, along with

transformational seminars, may influence the industry to transform its demographics.

6.4 External Climate PESTLE Analysis The PESTLE analysis conducted in 2011 was received and updated as follows:

+ Positive, - Negative, 0 Neutral

Political Factors Impact on SACAAs Business Impact

Revisions and amendments to economic

development strategies such as the millennium

goals (2014); the National Development Plan

Emphasis on the creation of decent employment +

Transformation and development of the industry, including

regulatory advocacy to encourage new entrants into the

industry

+

Regional harmony and integration +

Change in policy due to possible review of

organs of state and the outcome(s) from the ANC

conference 2012

Possible mandate & scope change and perhaps a split in

functions 0

Development in Arab states and Europe Impact on oil price will put pressure on industry margins

and SACAAs revenue streams -

Reduced tourism into Europe and subsequent increase into

Africa could be positive for SACAAs revenue +

Government call to keep aviation charges in

check and smooth tariff escalation

Constraints on SACAA to maintain cost to revenue ratios -

Economic Factors Impact on SACAAs Business Impact

Continuing global recession and debt crisis Reduced international air travel reducing revenue -

RSA lagging recovery from the 2010 recession Passenger growth still not at pre-2010 levels, exacerbated

by new players such as Emirates detracting traffic from the

RSA hub

-

Increasing oil prices continue to increase cost of

air travel

Decrease in passenger numbers and therefore revenue -

Liquidation of a significant local carrier Possible reduction in revenue -

Entrance of new carrier Possible increase in revenue +

Social Factors Impact on SACAAs Business Impact

Labour Union Strikes Negative impact of aviation industry activity -

High illiteracy and unemployment levels, and high

levels of poverty

Pressure for creation of jobs to address high demand for

skills in industry, to maintain a healthy talent pipeline +

Slow industry transformation Inability to meet Transport Charter requirements -

Growing middle class and their demand for air

travel

Increase in revenue due to increase in passenger

numbers although this will only be realised over time +

Increase in recreational aviation and demand for better

regulations and safety reporting 0

Technological Factors Impact on SACAAs Business Impact Rapid advance in aircraft and aerospace

technology

New developments and technologies will require different

skill sets within SACAA +

Anticipate new technologies such as the unmanned

aircraft systems, as they require safety and security

oversight +


Legal (and Regulatory Factors) Impact on SACAAs Business Impact

The Act is in conflict with a number of key pieces

of legislation such as the constitution, PFMA, and

Statutes governing ATNS, ACSA, Air Licensing

Council and Economic Regulator

Misalignment leading to lack of oversight in certain

aviation functions -

Ambiguity with respect to accountability and coordination

of mandate -

Possibility of a single DoT regulator could change the role

and constitution of SACAA -

Environmental Factors Impact on SACAAs Business Impact

Climate change (drastic change in weather

patterns) and natural disasters

Reduced air travel traffic and thus a reduction in revenue,

and -

Emissions regulations SACAA may have to impose restrictions on older aircraft,

and +

Increase in aviation charges possibly resulting in fewer

passengers. -

The above PESTLE Analysis will be applied when developing revised SACAA objectives.

6.5 SACAA Functional Capability SWOT Analysis

The strategic review process was preceded by a consultative SWOT analysis with the following

results, and these will be applied in the organisational review and development of objectives. SWOT ANALYSIS

STRENGTHS OPPORTUNITIES

Smart and talented employees Reputable international standing Independently acknowledged operational excellence

Financial strength Category 1 status in terms of the ICAO 8 Critical Elements

ICAO recognition for SA leading role in Avmed in Africa as a centre of excellence

Alignment of organisational structure and role accountabilities to the optimal business process

Building stronger industry relationships Effective stakeholder engagement Use of TETA funds for pilot training Industry transformation through aviation training schools

Leadership in regional aviation safety oversight integration

Consolidation of the UAV Industry

WEAKNESSES THREATS

Sub-optimal business processes Less than optimum infrastructure and capability Inadequate talent management & career pathing

Wavering staff morale due to a high turnover of Director of Civil Aviation

Working in silos Sub-optimal human resources management processes

SACAA remuneration not attractive to potential employees

Lack of rigorous performance management and productivity measurement

Sub-optimal revenue model

Lack of technical aviation skills across the board Unethical employee behaviour (unknown conflict of interest)

Information security risk due to manual record- keeping

High reliance on Passenger Safety Charge Integration of UAV into civil airspace IT Security (inherent risk) African safety record


7. The SACAA 2013 2017 Strategic Plan

7.1 Strategy Revamp a Necessity

SACAA went through an analysis process in order to determine whether the organisation had

remained on track. The prevailing organisations internal and external climate necessitated a

revision of the core ideology (Mission, Vision, Values and Brand Statement) to ensure that the

organisation remained on course to deliver on its goals. This process was then followed by a

revision of the objectives, with a view to concentrate on strategic outputs.

7.2 A logical Process, from the Core Ideology to Action Steps

The strategic review process commenced with the re-examination of the Core Ideology of SACAA,

against the backdrop of the disclosed organisational analysis. This entailed re-examining and re-

focusing firstly: 1 Purpose (Why SACAA exists what purposes it needs to fulfil), then 2 Vision (what

SACAA envisions achieving over the next 5 years); then 3 Brand Promise (What customers the

customer experience can expect from SACAA) and finally, 4 Core Values that drive and live the

Brand Promise all in that order.

Only once the Core Ideology was reformulated, refocused, simplified, understood and accepted

by all, could the Strategic Goals and Objectives be reviewed. As expected, because the Core

Ideology had been reformulated, related objectives had to be adjusted or reformulated although

the Strategic Goals remained

relevant.

The adjacent table highlights the

relationship between core values.

In order for the organisation to

deliver, there must be a desired

end state (vision) that is grounded

on organisational reason for

existence (mission). Values are

principles not to be compromised,

as the employees continue to

ensure a predetermined customer

experience (brand promise). When

all these are in consonance, then

a predetermined end state is likely to be realised. It is due to this reason that the 2013/14 strategy

had to embody a brand promise. Following are revised core value elements for SACAA going

forward:

7.3 Mission

To regulate aviation safety and security through oversight in line with international standards To minimize the impact of the aviation industry on the environment; and To promote transformation, development and sustainability in partnership with industry

players.


7.4 Vision

Rated amongst the top 30 CAAs within five years

7.5 Brand Promise

Our excellence, your safety

7.6 Values VALUES BEHAVIOURAL ATTRIBUTES

G Good is never good enough Always giving best effort, and seeking to continuously improve

I Integrity Maintain high ethical standards and approach issues

professionally without any bias and in a transparent manner that

engenders trust amongst all our stakeholders

S Service delivery ahead of

customer expectation

Striving to always exceed customer expectations

T Teaming and partnering Working with others where we are jointly accountable for the

end result.

7.7 Development of 2013/14 Strategic Objectives

In developing the SACAA 2013/14 Strategic Objectives, the organisation factored all aspects of the

Operational Environmental Analysis, in particular PESTLE and SWOT. While strategic goals remained

unchanged, new objectives were outlined on the far right as indicated on the following page, with

a total of 12 objectives in 2012/13 compared to 8 in 2013/14.

The development of 2013/14 to 2016/17 Revised Strategy sought to maintain strategic matters, with

operational issues included in various Divisional Operations Plans. Such operational plans include

daily operational deliverables together with outcomes identified in the strategic plan, but deemed

not to be at a strategic level. The desired vision of being in the top 30 CAAs within the next five

years, will be achieved by implementing this strategy together with concomitant operational plans.


COMPARISON OF 2012/13 AND 2013/14 STRATEGIC OBJECTIVES

Department of Transport Outcome

Original 2012/13 - 17

Goals

Retained for 2013/14 - 17

Original 2012/13 - 17

Strategic Objectives

Revised 2013/14 - 17

Strategic Objectives

Objective

No

DoT Outcome 1:

An efficient and integrated transport

infrastructure network for social and

economic development

Active participation influencing

national, regional and continental

aviation development

Contribute to the development of Airfreight Strategy

Contribute to the development of National Airports Development Plan

Contribute to continental and regional aviation development

Improve stakeholder relations 1.1

Promote aviation awareness 1.2

DoT Outcome 2: A transport sector

that is safe and secure

Build a continuously improving

safety and security environment

Regulate, promote and oversee civil

aviation safety and security

Comply with ICAO Safety and Security Critical elements 2.1

Reduce aircraft accidents 2.2

DoT Outcome 5: Increased

contribution to job creation

Influence the breadth and pace

of the industry development and

transformation agenda

Equitable and successfully implemented BBBEE plan

Implement employment equity targets Develop industry downstream

Achieve BBBEE Level 3 within 5 Years 3

DoT Outcome 6: Increased

contribution of transport to

environmental protection

Reduce aviation impact on the

environment

Minimise aviation emissions

Enable environmental protection 4

SACAA Outcomes: Organisational

enabler for effective strategy

execution

Build resilient organisational

capacity that embraces a high

performance culture

Retention of critical skills Establish a high performance culture Enabling organisational structure Maintain a capable workforce

Establish a high performance culture 5

Optimise organisational

performance

Optimise revenue streams and

management systems Improve organisational efficiency 6

Embed principles of corporate

governance in the work of every

SACAA team member and all

service

Well-managed risks and internal controls

None


7.8 Organisational Analysis Aligned with Strategic Objectives

Before highlighting how various organisational analysis components are factored in the strategy

and operational plans, it is important to underscore a number of important factors that must be

addressed mainly by the executive authority. The appointment of the Director of Civil Aviation is

critical in order to stabilise the organisation. The establishment of an Aviation Training School is also

crucial in order to ensure that Historically Disadvantaged Individuals (HDIs) are included in the

aviation mainstream. In this regard, SACAA will play a supporting role as a regulator. The

introduction of a Middle Eastern airline in the region impacts on RSA routes, and consequently

tourism and SACAA revenue are affected. To this end, a coordinated Airlift Strategy by the

Executive Authority is important, albeit under a perilous air travel business climate. Finally, the

prospect of a single aviation, or transport regulator was identified during organisational analysis; this

remains the prerogative of the executive authority on which to pronounce.

Delineated below is how the following analysis sections are reflected in the Strategic and

Operational Plans:

Operational Environment Analysis PESTLE Analysis SWOT Analysis.

7.8.1 Operational Environment Analysis Aligned to Objectives

The Operational Environment Analysis through the International Passenger Market Graph indicates

growth, though the trend is declining. This was coupled by a 10% African growth with RSA

experiencing only 3%, indicating that Africas high growth levels have not filtered to the RSA. On

the other hand, cargo freight also experienced some growth; however this section does not

contribute to SACAAs revenue. A balanced revenue model should spread the risk between

freight and passenger travel. In order to address this deficiency, Goal 6 includes the Outcome,

Risk-aversive financial model.

This analysis section further quotes the IATA and ICAO plan to reduce accidents, with 25% of

Africas accidents being addressed through the following interventions:

Adoption and implementation of an effective and transparent regulatory oversight system Implementation of Safety Management System (SMS).

SACAA has made significant strides in ensuring that the safety interventions identified above are

implemented. From an oversight perspective SACAA has and continues to maintain an effective

oversight programme that will be migrating towards risk-based. To this end Goal 2 includes the

Outcome, Oversight conducted according to Master Surveillance Programme (MSP). As far as

SMS is concerned, regulations were implemented in August 2012 with some teething challenges

that require rationing. Technical oversight is yet to adopt this new process, ideally after its

rationalisation. Technical Divisions operational plans should include SMS roll-out during surveillance

audits.


7.8.2 PESTLE Analysis Aligned to Objectives

The PESTLE Analysis referred to under section 6.4 emphasises a number of external factors that

affect SACAA, some positive and others negative. The rise in oil price was indicated as having a

potential negative impact, however this is mitigated by the indicated Goal 6 that refers to a risk-

averse financial model. An organised labour threat was also identified during the same analysis;

this factor is addressed under Goal 5 through the Outcome, Establish a high performance culture.

This outcome calls for an all-encompassing HR strategy with concrete time lines. In this regard,

possible risks relating to Industrial Relations (IR) must be identified and addressed, with the settling of

multi-year wage deals being first prize. The inability to meet BBBEE deliverables was also cited

during the external analysis. To this end, Goal 3 calls for a plan to be developed and implemented

in order to achieve BBBEE Level 3 within five years. A BBBEE plan is currently being implemented.

Misalignment of the Act with other prevailing prescripts was also noted and is addressed by Goal 2

under the Outcome, Comprehensive and effective CA ACT. Finally restrictions on older aircraft

were cited; to this end a process of implementing regulations has commenced, and these come

into effect in January 2015. At that time organisations and neighbouring countries should have

been notified in advance. Divisional operational plans must include a communication plan to

introduce this environmentally-friendly regulation.

7.8.3 SWOT Analysis Aligned to Objectives

The 2013/14 -17 Strategy seeks to address threats and weaknesses, while taking advantage of

opportunities highlighted in the SWOT analysis under section 6.5. The weakness section underscores

predominantly HR related matters that are addressed under Goal Five objective, Establish a high

performance culture. Finally, a sub-optimal revenue model is also cited and is tackled by the

objective, improve organisation performance, with risk aversive financial model as an

outcome.

Threats underscore a number of factors including the lack of aviation skills. While SACAA does not

have complete control of this quandary, it seeks to participate in a nationwide initiative to address

the situation. Un-known unethical behaviour by employees is another inherent threat, and this will

be attended to through operational plans, as there is no one size fits all. Efficient oversight is

threatened through existence of disparate systems, to this end Goal Six addresses this with, secure

integrated systems with minimum downtime, depicted as an outcome. IT security was also

identified, to this end current initiatives to improve the IT security environment are appreciated;

however these will be monitored through operational plans. The integration of the UAV industry in

aviation oversight is underway, with regulations being processed as depicted under Section 8.

However, progress will be monitored through operational plans to ensure continued acceleration.

High reliance on Passenger Safety Charge (PSC) is also disclosed under threats, this is addressed

under weaknesses through the development of a robust revenue model. Finally, addressing

Africas poor safety record will remain an immense task. To this end, an arduous oversight program

under Goal 2, improved stakeholder relations with other oversight institutions should add to safer

skies in Africa.

The SWOT opportunities section calls for action to address a number of factors. Alignment of

organisational structure to maximise organisational efficiency is identified, this is addressed in the

operational plans depicted under Section 8, where business processes are mapped for ease of


implementation of the EBS. The end result of the EBS process and conclusion of the HR strategy will

call for an improved organisational structure. Identified stakeholder matters are addressed through

the first objective, Improve stakeholder relations. Industry transformation challenge on the other

hand is addressed through the development of an aviation school, SACAA will participate in this

national project. Finally, Leadership in regional safety oversight is important, however the executive

authority will guide in this matter.

7.8.4 Alignment of DoT and SACAA Objectives

On the 28th and 29th of January 2013, the Department of Transport held a strategic session that

endorsed prior year outcomes. Aviation objectives were tabulated with Key Performance

Indicators (KPIs) next to them. A further reconciliation between DoT KPIs and SACAA objectives

indicated that SACAA Objectives 1.1, 2.1, and 1.21 were directly linked to DoT KPIs. The remainder

of the DoTs KPIs are to be covered under normal SACAA operations, as the 2013/14 SACAA

Strategic Plan concentrated on strategic issues.


ALIGNMENT OF DoT OBJECTIVES TO SACAA

Department of Transport Strategic

Objectives:

Department of Transport Performance Indicators Related to SACAA:

Method of Addressing or

Participation in DoT

Objective by SACAA 1. To effectively regulate air transport Cabinet-approved airlift strategy Provide input when

requested

Negotiated and reviewed bilateral Air Service Agreements Provide input when requested

2. To ensure effective economic air transport regulations

Incorporate the reviewed regulatory framework into the Permission Application Process

Provide input when

requested

3. To improve airfreight services Developed air freight strategy Provide input when requested

4. To revise the National Civil Aviation Policy

National Civil Aviation Policy Reviewed Provide input when requested

5. To develop the National Strategy for Airport Infrastructure

Approved National Airports Development Plan (NADP) (with due reference to alignment with National Airspace Master Plan [NAMP])

Provide input when

requested

6. To enhance civil aviation regional and international cooperation

Effective representation of SA at SADC, Africa and the International Civil Aviation fora facilitated

SACAA Objective 1.1

Enhanced / effective communication with SADC, AFCAC and ICAO through State Letters

SACAA Objective 1.1

Effective management of the National Air Transport Facilitation Committee Provide input when requested

7. To continuously improve Civil Aviation Safety

Promulgate safety regulations SACAA Objective 2.1

Established Aviation Appeals Committee Assist as requested

Established Independent Aircraft Accident and Incident Investigation Body (IAAIIB)

Assist as requested

Oversee the aviation safety audit SACAA Objective 2.1 Compliance with Civil Aviation Conventions and Protocols binding on South

Africa

Addressed through normal

business operations

Amendment of the Civil Aviation Act SACAA Objective 2.1


ALIGNMENT OF DoT OBJECTIVES TO SACAA (Continued)

Department of Transport Strategic

Objectives:

Department of Transport Performance Indicators Related to SACAA:

Method of Addressing or

Participation in DoT

Objective by SACAA 8. To continuously improve Civil

Aviation Security

Promulgate security regulations SACAA Objective 2.1 Oversee the aviation security audit SACAA Objective 2.1 Reviewed National Aviation Security Program (NASP) Provide inputs when

requested

Facilitate one-stop-security system within the Region. Provide input when requested

9. To integrate aviation search and rescue regimes, services and

systems within the region

DoT indicators not directly linked to SACAA operations Provide input when requested

10. To implement the Medium Earth Orbit Search and Rescue

(MEOSAR) satellite systems as a

regional initiative


11. To facilitate and enhance program that seek to transform and develop

the aviation industry downstream

Promote aviation amongst learners as a career of choice SACAA Objective 1.2

Assist budding pilots to become employable Evaluate options of enhancing the transformation strategy

Assist as requested

12. To Improve airspace efficiency at congested airports


13. To minimize aviation noise, emissions and disaster risks

Institute, by December 2013, a legal instrument on restriction / addition of Chapter 2 aircraft in our register

Process regulations initiated

by DoT

Institute a regional awareness program on the elimination of Chapter 2 aircraft by December 2014

To develop an Aviation Disaster Management Plan Participate as requested

14. To oversee the non-financial performance of three (3) aviation

public entities in line with the

legislative framework, on an

ongoing basis

Approved ACSA and ATNSs Corporate Plans and Shareholder Compacts and SACAAs Strategic Plan, Annual Performance Plan and Performance Agreement

Adherence to Public Finance

Management Act, and

Treasury Framework for

Performance Reporting and

related practice notes.

Reports on analysis of non-financial quarterly performance reports against ACSA and ATNSs Shareholder Compacts, SACAAs performance agreement and APP

Analysis of Annual Reports to ensure alignment with targets set in the Corporate and Strategic Plans; and a report prepared for the Annual General Meetings

(AGMs)


8. Constitution of SACAA Operational Plans Having maintained matters of high level impact in the Strategic Plan, Divisional Operational Plans

are necessary and will include inputs from the following:

Deliverables identified in the general section of the Strategic Plan Deliverables identified under organisational objectives or Annual Performance Plan (APP) Operational matters not covered in the Strategic Plan, but are core to the organisation.

9. Annual Targets The following diagram tabulates annual deliverables for the year 2013/2014 to 2017.


SACAA ANNUAL PERFORMANCE DELIVERABLES Strategic Goal 1 Active participation influencing national, regional and continental aviation development

Strategic

Objective

Outcomes Performance

Indicators

Base Line Annual Target

2013/2014

Annual Target

2014/2015

Annual Target

2015/2016

Annual Target

2016/2017

Responsible Budget

2013/14 1.1 Improve

Stakeholder

relations

Improved internal

and external

organisational

perception

Plan that includes

internal & external

stakeholders

Draft stakeholder

framework

Board approved

stakeholder

management

plan

Implementation

of plan

Implementation

of plan

Implementation

of plan DCA R 200K

1.2 Promote

aviation

awareness

Increased

aviation

awareness

impacting on

career choice by

HDI

Aviation awareness

workshops

conducted for

learners throughout

RSA

183 Schools reached

with adhoc requests

100 Schools

planned in

advance and

approved by

Exco

110 Schools

planned in

advance and

approved by

Exco

120 Schools

planned in

advance and

approved by

Exco

130 Schools

planned in

advance and

approved by

Exco

Comms R985K

Support hosting

ICAD in line with DoT

agreed Terms of

Reference

Hosted 2012

International Civil

Aviation Day (ICAD) in

conjunction with DoT

Support hosting

ICAD in line with

DoT agreed

Terms of

Reference

Support hosting

ICAD in line with

DoT agreed Terms

of Reference

Support hosting

ICAD in line with

DoT agreed

Terms of

Reference

Support hosting

ICAD in line with

DoT agreed

Terms of

Reference

Comms R1,2

Million

RISK RISK MITIGATION

1. Stakeholder plan not meeting expectations 2. Awareness programmes targeting numbers rather than quality of seminars

1. Stakeholders to be consulted when developing a stakeholder plan 2. School awareness programme to be determined upfront and SACAA to drive

programmes and not rely on invitations that usually have limited time frames.

Strategic Goal 2 Build a continuously improving safety and security (operations, aircraft, aviation security, and infrastructure) environment

Strategic

Objective


Indicators


2013/2014

Annual Target

2014/2015

Annual Target

2015/2016

Annual Target

2016/2017

Responsible Budget

2013/14 2.1 Comply with

ICAO Safety

and Security

Critical

Elements

Comprehensive

and effective CA

Act

Revised CA Act

inputs submitted to

DoT

CA Act 2009 Draft proposal to

amend the CA

Act submitted to

DoT

Enforce existing

Act while

anticipating

amendment

Enforce the CA

Act Enforce the CA

Act Legal R1 Million

Improvement in

ICAO compliance

rankings

2013 Audit Report

with zero

major/significant

findings

2007 Audit Report

Independent

assessment of

ICAO readiness

and

development of

2013 Corrective

Action Plan

(CAP) and its

implementation

Continuous

assessment of

ICAO

compliance, and

Implementation

of 2013 ICAO

Corrective Action

Plan.

Continuous

assessment of

ICAO

compliance, and

Implementation

of 2013 ICAO

Corrective Action

Plan.

Continuous

assessment of

ICAO

compliance,

and

Implementation

of 2013 ICAO

Corrective

Action Plan.

Tech GMs R400K


SACAA ANNUAL PERFORMANCE DELIVERABLES CONTINUED Strategic Goal 2 Build a continuously improving safety and security (operations, aircraft, aviation security, and infrastructure) environment continued..

Strategic

Objective


Indicators


2013/2014

Annual Target

2014/2015

Annual Target

2015/2016

Annual Target

2016/2017

Responsible Budget

2013/14

Oversight performed

according to

DCA approved

MSP on recipients

registered on 31

Mar 2013

Audits conducted

according to ICAO

prescripts

Audit variance within

5% with 2,247

Inspections

5% variance on

annual audits

planned as

approved by

DCA

5% variance on

annual audits

planned as

approved by

DCA

5% variance on

annual audits

planned as

approved by

DCA

5% variance on

annual audits

planned as

approved by

DCA

Tech GMs R231

Million

2.2 Reduce aircraft

accidents

Reduction of

airspace

infringements

Reduced airspace

infringements

through workshops

226 December 2012

infringements based on

11,744 aircraft in the

database

Develop

promotion plan

to reduce

airspace

infringements by

5% year on year,

based on aircraft

register

percentage

Implement

airspace

infringement

reduction plan

Implement

airspace

infringement

reduction plan

Implement

airspace

infringement

reduction plan Tech GMs &

Comms R Nil

Reduce fatal

accident rate by

50% in 2014 based

on 2006 statistics

Fatalities expressed

in line with

international best

practice

53.02% reduction in

2011 calendar year

based on 11,483

aircraft in 2011/12 Year

Review and

implement cross-

functional

division plan to

reduce fatal

accidents

Implement

accident and

incident cross-

functional plan to

reduce fatalities

Implement

accident and

incident cross-

functional plan to

reduce fatalities

Implement

accident and

incident cross-

functional plan

to reduce

fatalities

Tech GMs R Nil

Workshop that

addresses relevant

audience on topics

related to incidents

and accidents; and

provide insight on

aviation safety

Broad safety seminars

not entirely focused on

safety indicators

Hold a targeted

annual Safety

Seminar that

addresses

reported

incidents and

accidents

Annual Safety

Seminar that

addresses

reported incidents

and accidents,

and provides

insight on aviation

safety

Annual Safety

Seminar that

addresses

reported

incidents and

accidents, and

provides insight

on aviation

safety

Annual Safety

Seminar that

addresses

reported

incidents and

accidents, and

provides insight

on aviation

safety

Comms R600K


SACAA ANNUAL PERFORMANCE DELIVERABLES CONTINUED Strategic

Objective


Indicators


2013/2014

Annual Target

2014/2015

Annual Target

2015/2016

Annual Target

2016/2017

Responsible Budget

2013/14


1. Challenges in establishing a credible risk-based Master Surveillance Plan (MSP) 2. Changes to ICAO annexes not tracked along with prior audit Corrective Action Plans may result in non-

compliance widening gap

3. Reduction of airspace infringement plan may discourage voluntary compliance

1. Use independent third parties in determining the best method of consistently and accurately assessing risk by various inspectors

2. Quarterly ICAO CAP reporting to include progress on new annexure changes 3. Reduction of air infringement plan to address non-tempering of voluntary

compliance

Strategic Goal 3 Influence the breadth and pace of the industry development and transformation agenda

3

Achieve BBBEE

Level 3 within

5 years

BBBEE Scorecard

implementation

plan with targets

BBBEE FiveYear-

Plan implemented

BBBEE plan in Level 6 for

year ending March

2012

Implement BBBEE

plan and

achieve level 5

Implement BBEE

plan and achieve

level 4

Implement BBEE

plan and

achieve level 3

Implement BBBEE

plan and

achieve level 3

Finance

HR R30K

Strategic Goal 4 Reduce aviation impact on the environment

4

Enable

environmental

protection

Aviation

Environmental

Protection

Function Instituted

Functional AEP

structure in line with

ICAO and

international best

practice.

Nonexistence of AEP

Structure

Board-approved

AEP structure

implemented

Develop and

implement

regulations

Implement

regulations

Implement

regulations

Tech GMs R2.3

Million

Strategic Goal 5 Build resilient organisational capacity that embraces a high performance culture

5 Establish a high performance

culture

Conducive

working

environment that

attracts and

retains technical

skills

Functional HR

Strategy

implemented

Silo-approach on HR

interventions

Board approved

all-encompassing

HR strategy with

concrete time-

lines &

implemented

HR Strategy

Implemented

HR Strategy

Implemented

HR Strategy

Implemented

HR R250K

Strategic Goal 6 Optimise organisational performance 6

Improve

organisational

efficiency

Secure and

efficient

integrated

systems

Enterprise Business

Solution(EBS) and

Management

Information System

(MIS) Implemented

Silo systems in existence EBS tender

approved by

Board,

Implementation

plan approved

by Exco

Implement EBS

and commence

integration with

other systems in

line with Exco

approved plan

EBS implemented,

continued

systems

integration, MIS

Plan approved by

Exco

Systems

integration

completed, MIS

plan

implemented IT R30 Mill


SACAA ANNUAL PERFORMANCE DELIVERABLES CONTINUED Strategic

Objective


Indicators

Base Line Annual

Target

2013/2014

Annual Target

2014/2015

Annual Target

2015/2016

Annual Target

2016/2017

Responsible Budget

2013/14

Risk-aversive

financial model

Robust capital-

intensive financial

model that

mitigates against

fluctuating

passenger

movement

Non-risk aversive

financial model

Board approved

updated

financial model

Implement

approved

financial model

Implement

approved

financial model

Implement

approved

financial model Finance R Nil

Comprehensive

organisational

performance

Divisional

operational plans

aligned to strategy

and approved by

Exco

Operational plans not

developed by all

divisions

Implement

Exco-approved

Divisional

operational

plans

Implement Exco-

approved

Divisional

operational plans

Implement Exco-

approved

Divisional

operational

plans

Implement Exco-

approved

Divisional

operational

plans

All Divisions

RNil


1. Information needed for BBBEE verification may not be complete as this is done in the subsequent year 2. Cross-functional roles may be duplicated in the new AEP structure 3. HR Strategy not congruent with BBBEE HR-related pillars 4. Purchased EBS system not fully meeting SACAA business requirements

1. A procedure that includes capturing of BBBEE information has to be developed in order to secure performance evidence.

2. Fully consultative process to be undertaken when developing new AEP structure with a view to avoid duplicating roles in technical disciplines

3. BBBEE strategy must provide input to the HR strategy 4. Specification and other procurement governance documents to be shared

with Board subcommittee prior to proceeding with the tender process


10. Budget

The SACAA Annual Performance Deliverable table indicates specific amounts for meeting 2013/14

strategic targets, however the total budget accounts for total organisational operations.

The following are major budgetary highlights;

1. Fuel Levy Fuel volumes have declined over the last five years at a compound average rate 0f 2.58% based on the revenue model and it is anticipated that this trend will continue

in the future. The fuel levy income for the years ending March 2015 and March 2016

declines by 2.58% based on the current trend utilizing the revenue model

2. Safety charge the safety charge payable per passenger is currently R16 and based on the revenue model this charge will remained at R16 for the next financial year as well. In the

financial year ending March 2015 the safety charge was increased to R18 per passenger

and to R19 per passenger for the financial year ending March 2016. Passenger numbers are

only expected to grow by 2.46% per annum based on the revenue model.

3. Staff related costs have increased by 10.8% and 12.1% respectively for the financial years ending 2015 and 2016 respectively. This increase is in line with the 3 year salary increases

negotiated with the trade unions of 10.5%, 11% and 11.5% commencing 1 April 2013.

Training costs has also increased to address the training needs of staff in terms of the skills

development plan.


11. Abbreviations

AAP - Aviation Awareness Plan ACSA Airports Company South Africa AEP Aviation Environmental Plan AFCAC African Civil Aviation Commission AFI - Africa Indian Ocean (AFI) AIID Accident and Incident Investigation Division APP Annual Performance Plan ATNS Air Traffic and Navigation Services Co BBBEE Broad Based Black Economic Empowerment CA Act - Civil Aviation Act No 13 of 2009 CAAs Civil Aviation Authorities CAP - Corrective Action Plan CarCom Civil Aviation Regulations Committee CASP-Civil Aviation Security Project COSCAP-SADC Cooperative Development of Operational Safety and Continuing

Airworthiness Program

DoT Department of Transport EBS Enterprise Business Solution HDIs - Historically Disadvantaged Individuals IATA International Air Transport Association ICAD International Civil Aviation Day ICAO - International Civil Aviation Organisation IR Industrial Relations KPI - Key Performance Indicator MEOSAR - Medium Earth Orbit Search and Rescue MSP - Master Surveillance Programme NADP - National Airports Development Plan PBN Performance Based Navigation PESTLE Political, Environmental, Social, Technological, Legal, Environment PFMA Public Finance Management Act PSC - Passenger Safety Charge RPK - Revenue per Passenger Kilometres RSA Republic of South Africa SACAA - South African Civil Aviation Authority SADC - Southern African Development Community SMS - Safety Management System SWOT Strengths, Weaknesses, Opportunities and Threats TETA Transport Education and Training Authority UAV Unmanned Arial Vehicle


12. Contact Details

Physical Address:

Ikhaya Lokundiza

Building 16, Treur Close

Waterfall Park, Bekker Street

Midrand

Postal Address:

Private Bag X 73

Halfway House 1685

Tel: +27 (0) 11 545 1000

Fax +27 (0) 11 545 1465

Email: [email protected]

Website: www.caa.co.za

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