Annual Report 2015 SERBIA AND MONTENEGRO AIR … za stranice/AnnualReports/SMATSA AR 201… · SERBIA AND MONTENEGRO AIR TRAFFIC SERVICES SMATSA llc BELGRADE. ... in 000 rsd 49 table

2015Annual Report 2015

SERBIA AND MONTENEGRO AIR TRAFFIC SERVICESSMATSA llc BELGRADE

Annual Report 2015

Version: Date:

Status:

Annual Report 20154

CONTENTS 1 Foreword by the CEO 6

2 AboutSerbiaandMontenegroAirTrafficServicesSMATSAllc 8

2.1 OrganisationProfile 82.2 AirNavigationServices(ANS) 82.3 Additionalservices 9

3 Important Business Results Marking 2015 10 3.1 ATMUpgrades 10

3.1.1 TrafficfiguresinSMATSAllcareaofresponsibility 123.2 Equipment,SystemsandInfrastructureImprovement 173.3 AISImprovement 243.4 METServicesImprovement 25

4 BusinessPerformance 264.1 OperationsinaccordancewiththeSESTargets 26

4.1.1 Safety 274.1.2 CapacityandDelays 284.1.3 CostEfficiency 294.1.4 EnvironmentalProtection 30

4.2 Operationinrelationtootherobjectives 314.2.1 Qualityofservices 314.2.2 OtherBusinessPerformanceIndicators 33

5 OrganisationalTechnology-basedManagementSystems 345.1 AirTrafficSafety 345.2 QualityManagement 365.3 InformationTechnologies 375.4 Security 38

6 HumanResources 396.1 FluctuationsandAverageNumberofEmployeesin2015 416.2 EmployeeStructure 42

7 AdditionalServices 437.1 CalibrationoftheGroundBasedRadioNavigationAidsfromtheAir 437.2 ANSPersonnelTrainingCentre 447.3 SMATSAAviationAcademy 45

8 ConsultationswithUsersofServices 46

9 FinancialStatements 499.1 IncomeStatement 499.2 BalanceSheet 539.3 CashFlowStatement 589.4 NotestoFinancialStatements 60

9.4.1 BasisforPreparationofFinancialStatements 609.4.2 SummaryofSignificantAccountingPolicies 619.4.3 FinancialRiskManagement 69

10 Independent Auditor’s Report 72

11 AcronymsandAbbreviations 74

12 Annex1-SMATSAllcOrganisationalStructure 78

Annual Report 2015 5

LISTOFFIGURES Figure 1 - The territory in which SMATSA llc provides air navigation services 9Figure 2 - number oF Flights in the period From 2008 to 2015 12Figure 3 - distribution oF Flights in 2015 13Figure 4 - peak day and peak hour in the period From 2008 to 2015 13Figure 5 - participation oF diFFerent aircraFt types in 2015 14Figure 6 - number oF take-oFFs and landings at airports in the period From 2008 to 2015 14Figure 7 - Distribution oF traFFic at some airports in 2015 14Figure 8 - number oF service units in the period From 2008 to 2015 15Figure 9 - average Flight length and average mtow in Fir beograd in the period From 2008 to 2015 15Figure 10 - unit rate value in 2015 16Figure 11 - average atFm delay per Flight in the area oF SMATSA llc responsibility From 2007 to 2015 28Figure 12 - unit rate given For “serbia - montenegro - kFor” charging area in 2015 29Figure 13 - horizontal Flight eFFiciency For serbia and montenegro in 2015 (source: eurocontrol/pru) 30Figure 14 - employee structure by gender 42Figure 15 - employee structure by qualiFication groups 42Figure 16 - employee structure by age 42

LIST OF TABLEStable 1 - realization oF planned activities in 2015 within the atm 11table 2 - realization oF planned activities in 2015 within equipment systems and inFrastructure improvement compared to planned projects 17table 3 - reasons For the realization oF the most important investments listed in 2015 annual plan . in the part speciFication oF investments 20table 4 - the summary oF realised activities in the area oF ais provision in 2015 24table 5 - realization oF planned activities in 2015 in the Field oF aeronautical meteorology 25table 6 - target and achieved values oF saFety indicators in 2015 27table 7 - analysis oF the FulFillment oF 2015 quality objectives 31table 8 - other business perFormance indicators 33table 9 - realization oF planned activities within the improvement oF the saFety management system in 2015 35table 10 - realization oF planned activities in 2015 in the Field oF quality management 36table 11 - realization oF planned activities in 2015 in the Field oF human resources 40table 12 - planned and actual number oF employees in 2015 41table 13 - Fluctuations oF employees in 2015 by month 41table 14 - realization oF planned activities in 2015 within the calibration oF ground based radio navigation aids 43table 15 - realization oF planned activities in 2015 within the ans personnel training centre 44table 16 - realization oF planned activities in 2015 within the SMATSA aviation academy 45table 17 - realization oF planned activities within the improvement oF the cooperation with relevant organisations in the sphere oF aviation and users oF air navigation services in 2015 46table 18 - satisFaction oF pilot trainees 48table 19 - 2015 income statement, in 000 rsd 49table 20 - 2015 assets, in 000 rsd 53table 21 - 2015 liabilities, in 000 rsd 56table 22 - 2015 cash Flow statement, in 000 rsd 58table 23 - base amortisation rates For certain intangible assets 62table 24 - base depreciation rates For property, plant and equipment 63

Annual Report 20156

01CEO’s Foreword

RadojicaRovčanin,CEO

ForSMATSA llc, 2015wasa year of successandinitialisation of significant projects, while at theinternationallevel,itwasayearofintensivecooperation.

It began with very intensive cooperation withAirNavigationServicesProvidersintheregionindevelopingandimplementationoftheprojects,withintheEUinitiativeon theestablishment of theSingleEuropeanSky,regardlessofthebordersbetweenthestates.

Inearly2015,5providersofairnavigationservices,asfollows:CroatiaControlLtd(CCL),SlovenianAirNavigation Services, Bosnia andHerzegovinaAirNavigationServicesAgency(BHANSA),BulgarianAirTrafficServicesAuthority (BULATSA)andSMATSAllc,agreedtointroduce11optionsoflongrangecross-bordertraffic(LRDs)inordertoproactivelyapproachthecustomers’needsandimprovethequalityofprovidedservices.Thetestingofthesystemwassuccessfullycompletedandall11optionswerepublishedfortheapplication thatwasplanned tobe implementedatthebeginningof2016.Inadditiontothese5ANSPswhichwere directly involved, theAustrianANSP -АUSTROCONTROLalsotookpartinthisphaseoftheprojectasanassociatemember.

Togetherwiththisproject,wehavecontinuedcooperationonthedevelopmentandimplementationoftheconceptoffreerouteplanningonthesouth-eastaxis(SEAFRA-South-EastAxisFreeRouteAirspace).Thisisaproject

In2016wewillcontinuetherealizationofnumerousinitializedprojects,weexpectnumerouschallenges,andSMATSAllcwilltrytoensurethetrustofitsusersthroughitsactivities.

thatbeganinthepreviousyearanditismypleasuretopointoutthaton30thApril,2015,threeprovidersofairnavigationservices(SMATSAllc,CCLandBHANSA),whichareresponsibleforprovidingairnavigationservicesintheairspaceoffourstates-theRepublicofSerbia,theStateofMontenegro,theRepublicofCroatiaandBosniaandHerzegovina,haveofferedtotheairspaceusersthepossibilityofplanningandexecutingflightsnotlimitedbynationalbordersorboundariesoftheareaofresponsibility(AoR),throughtheuseoffreecross-borderrouteplanningonthesouth-eastaxisfromFL325toFL660.

ItisimportanttopointoutthattheparticipantsofthisfirstconceptofEuropeanFRA,whichisconductedovertheterritoriesoffourstates,arealsomembersofFABCE(theRepublicofCroatiaandBosniaandHerzegovina)ononeside,andtheRepublicofSerbiaandtheStateofMontenegroontheotherside,whicharenotpartofFABinitiative,indisputablyprovingthatsuchcooperationispossibleandcanbebeneficialtoallinterestedparties.The ideabehind thisconcept isacommongoal toimprove,ontheonehand,thesafetyandefficiencyofair trafficservicesprovisionand,ontheotherhand,environmentprotectionbyreducingfuelconsumption,CO2andnitrogenoxidesemission.AspecialcuriosityisthattheactivitiesrelatedtoSEAFRAwerecarriedoutinaccordancewithRegulation716/2014,i.e.7yearsbeforetheplanneddateforunlimitedfreeuseofairspaceover9000m,aboveEurope–1stJanuary,2022.


Itisofgreatimportancetoemphasisethattheprojectoflongrangecross-bordertraffic(LRDs)willnotaffecttheimplementationoftheFRAintheairspaceofresponsibilityofANSPsparticipatinginbothprojects.

SMATSAllchasestablishedthecooperationwithanumberofprovidersofairnavigationservicesinthecontextofCentralizedservicesaswell,acompletelynewconceptofprojectsdevelopedbyEUROCONTROL.Weareactivelyinvolvedintheseprojects,designedasacompletelynewconceptforprovisionofcertainservices,andtothateffectwehaveofferedtoprovidesomeoftheseservicestotheEuropeancommunityinthefuture,togetherwithourpotentialpartnersfromtheregionandbeyond.Thefirstresultsoftheproceduresareexpectedin2016.

Inthespringof2015,wehostedthe16thThalesUsersGroup(TUG)Conference,whichistraditionallyorganizedeveryotheryearbyoneoftheworld’slargestequipmentmanufacturers,THALESCompany,fortheusersofitsequipment.Duringthisfour-dayconferencewehostedmorethan120representativesofairnavigationservicesprovidersfromaroundtheworldandTHALESCompany,who,inadditiontotheconference,hadtheopportunitytoenjoythenaturalbeautyandsightsofBelgrade.

Itismypleasuretohighlightsomestatisticsdatashowingthatanincreaseintrafficof9%wasrecordedin2015.TheareaofresponsibilityofSMATSAllcwasused,duringtheyear,bytotally597,282flights,whichwereprovidedwithservicesofexceptionalqualitywithoutthedelaysgeneratedbyATC.Duringthepeakday,on29thAugust,arecordof2,969flightswasrealized.

TheapplicationofPerformanceBasedNavigationprocedures(PerformanceBasedNavigation-PBN)hasstartedatairportsinBelgradeandNiš,designedbyapplyingtheareanavigationusingGNSS(GlobalNavigationSatelliteSystem),whiletheapplicationoftheseproceduresatairportsinPodgoricaandTivatisplannedfortheyearof2016.

Withtheaimofbeingamodern,highlyqualifiedandresponsiblecompany,SMATSAllcconstantlyimprovesthelevelofairtrafficservicesprovisiontoenablesafe,regularandefficientperformanceofairtrafficintheareaofresponsibility,evenintheeventofanincreasednumberofserviceusers.Wehavebegunwiththeactivitiesona

multi-yearprojectofcomprehensivemodernizationoftheairtrafficcontrolsystemandatthesametimewehavecontinuedorsuccessfullycompletedalreadyinitiatedmodernizationprojects.Wehavesuccessfullycontinuedtheimplementationofinitializedinfrastructureprojects.In2016weexpectthecompletionofthereconstructionprojectoftheairtrafficcontroltowerinTivat.

SMATSAllchascontinueditshumanitarianactivity.Inthecourseof2015,wedonatedthefundsoftotal30,000,000dinars.WehavedonatedsignificantfundstoSpecialHospital“SaintSava”inBelgrade,CentreforEndocrineSurgeryofClinicalCentreofSerbia,InstituteforOncologyandRadiologyofSerbia.WehavehelpedtheSoupKitchensinKosovoandMetohija,SerbianparticipantsintheSpecialOlympicsandthelargenumberofculturalinstitutions.SMATSAllc,beingasociallyresponsiblecompany,willcontinueinthefuturetohelpthosewhoneedhelpbecauseweknowthatourlittlemeansalottosomeoneelse.

Wecontinuetosuccessfullyprovideservicesofcalibrationofairportandothergroundbasedradio-navigationaidsunderthepreviouslyconcludedcontracts,butalsotoparticipateininternationaltendersfortheprovisionoftheseservices.Wehaveconcludednewcontractsandenrolledanewclassofself-financingcandidatesforairtrafficcontrolofficers.SMATSAAviationAcademyhasenrolled100candidatesinthevarioustypesoftraining.

I proudly emphasize that our investments in thedevelopmentofthesystem,throughhumanresourcesandcontinuousmodernizationandimprovement,aswellasthroughtheconstantraisingofthesafetyawarenesslevelamongallemployeesinSMATSAllc,resultedinSMATSAllctakingthefirstplaceamongprovidersofairnavigationservices,aftertheanalysisprocedureof“SafetyMaturityScore”or“measurementofmaturity”ofthesafetymanagementsystemthatisconductedbyEUROCONTROLeveryyear.

In2016wewillcontinuetherealizationofnumerousinitializedprojects,weexpectnumerouschallenges,andSMATSAllcwilltrytoensurethetrustofitsusersthroughitsactivities.

Извештајопословањуза2015.годину 7

Annual Report 20158

02AboutSerbiaandMontenegro AirTrafficServicesSMATSAllc

2.1OrganisationProfile

SerbiaandMontenegroAirTrafficServicesSMATSAllc (hereinafterSMATSA llc)wasestablished inordertoprovideairtrafficservicesintheareaofitsresponsiblityaswellastoperformotheractivitiesinthefieldofairnavigation.

ThefoundersofSMATSAllcaretheGovernmentsof theRepublic of Serbia and of the State ofMontenegro.

ThecontractsignedbybothGovernmentsin2012,after theAgreementonCooperation in theAirTrafficDomainconcludedbetweentheRepublicofSerbiaandtheStateofMontenegro,confirmedthecontinuityofthecommonproviderofairtrafficcontrolservices-SMATSAllc.

SMATSAllcfullyoperatesincompliancewithnationaland international regulations and internationalagreements.Inaddition,SMATSAllcparticipatesinworkofthemostimportantinternationalaviationorganisationsandrepresentstheRepublicofSerbiaandtheStateofMontenegrointhebestpossibleway.

ThemissionofSMATSAllcistheprovisionofhighqualityairnavigationservices(theservicesinthefieldofATM,CNS,MET,AIS)tocivilandmilitaryaircraft,inordertomaintainandimprovethesafe,orderly,andexpeditiousairtrafficintheairspaceofFIR/UIRBeogradandintheairspaceofothercountries,onthebasisofbilateralstateagreements,aswellastheservicesANSPpersonneltraining,pilotstraining,flightcalibrationservicesofgroundbasednavigationaidsandsystemsfromtheairandaircraftmaintenanceservices.

2.2AirNavigationServices(ANS)

ThemainactivityofSMATSAllcistheprovisionofairnavigationservices(ANS),whichincludes:

1. ATS-AirTrafficServices,2. CNS - Communication, Navigation and

Surveillance,3. AIS-AeronauticalInformationServicesand4. MET-AeronauticalMeteorologicalServices

Serbia,MontenegroandBosniaandHerzegovinaentrustedSMATSAllcwiththeprovisionofairtrafficservices.

SMATSA llcareaof responsibility includes theairspaceabove:

1. TheRepublicofSerbia,2. TheStateofMontenegro,3. PartofinternationalairspaceovertheAdriatic

Sea,and4. PartofBosniaandHerzegovina.


Figure 1.TheterritoryinwhichSMATSAllcprovidesairnavigationservices

2.3Additionalservices

Inadditiontoairnavigationservices,SMATSAllcprovidesadditionalservicesthatinclude:

1. ANSPersonnelandPilotTraining,2. FlightCalibrationofGroundBasedRadioNavigationAids,and3. AircraftMaintenance.

Annual Report 201510

03ImportantBusiness ResultsMarking2015

On30thApril,2015,threeprovidersofairnavigationservices(SMATSA,CAAandBHANSA),responsibleforprovidingairnavigationservicesintheairspaceoffourcountries-Serbia,Montenegro,CroatiaandBosniaandHerzegovina,enabledtheplanningandexecutionoftheflightsbyapplyingfreecross-borderrouteplanning(SEAFRA-South-EastAxisFreeRouteAirspace)abovetheflightlevel325.Afterthat,on20thAugust,2015,theamendmenttotheoriginalconceptenteredintoforce,whentheperiod,inwhichthenetworkofATSrouteswassuspended,wasamended.ThisprojectisoneofthekeyimprovementsinthecontextofEUinitiativeontheestablishmentoftheSingleEuropeanSky,regardlessofthebordersbetweenthestates,andaimstoincreasethesafety,efficiency,andairspacecapacity.Activitiesinconnectionwiththisprojectwillbecontinuedin2016,withanaimfortheapplicationintheperiodof24hours.

InMay2015,theProjectofestablishingtheroutesfortheplanningoflongrangedirectcross-bordertraffic(LRD-LongRangeDCTs)beganinBelgrade,wherethefirstofthreemeetingsofthegroupconsistingofrepresentativesofSlovenia,Croatia,BosniaandHerzegovina,Montenegro,SerbiaandBulgariawasheld,whileAustriasubsequentlyjoinedtheinitiative.Theresultoftheworkofthegroupwastheselectionof11LRDoptionsthatextendfromtheSlovenian-AustriantotheBulgarian-Turkishborder,theimplementationofwhichisplannedfor4thFebruary,2016.

PBNproceduresfortheairportNikolaTesla,BeogradandKonstantinVeliki/Nišenteredintoforceduringthisyear,andPBNproceduresforairportsPodgoricaandTivatwillbeputintooperationalusenextyear,afterobtainingtheconsentoftheCAA.

Preparatory activities for introduction of radarvectoringservicebelowthealtitudeof10,000feetinTMAPodgoricaweresuccessfullycompletedduringtheyearandtheamendmentsentered intoforceon30thApril.Afterthesummerseason,from12thNovember,thepositionRDRPlannerwasintroducedintotheoperationalimplementationinTMAPodgorica.

InordertoincreasetheairspacecapacitythroughouttheyearweworkedonchangingandimprovingtheACCBelgradesectorisation.UsingtheEurocontrol’sNESTtool,morethan20differentscenariosofthenewsectorisationhadbeentested,andasolutionincreasing the capacity by 30%, based on theintroductionofthenewDFLwaschosen,withoutmajorchangesinthelateralborders.Implementationofthenewsectorisationisplannedfor4thFebruary,2016.

ActivitiesrelatedtotheprojectofconstructionoftheannextotheATCCbuildingwithatowerincludedtheconsultationswiththecityurbanplanninginstitute,provisionofthefundsfortheprojectdesignsolution,anddraftingofthepreliminaryarchitecturalsolution.At theendof theyear,activitymergedwith theProjectofmodernizationofairtrafficcontrol-SUSAN(SMATSAUpgradeofSystemforAirNavigation).

TheconstructionoftheATCtowerattheairportTivatbeganinSeptember,which,accordingtotheplan,shouldbecompletedbymid-Maynextyear.

On 23rd March, 2015, CCAMS - CentralizedEuropeanSSRCodeAssignmentandManagementSystemwasactivated.

3.1ATMUpgrades


BasicProjectIdentification

(BSO)BasicProjectTitle RealizationofPlannedActivities

BSO01.04.01Reorganize the lower part of theairspaceandrationalizetheprovisionofservicesatairports

A preliminary design for the reorganisation of theairspacewasmade for TMCPodgorica and TMCTivat.DuringEASAauditinMontenegro,problemsinVHFcoverageintheareaofresponsibilityoftheTMC and CTR Podgorica were discovered. ThesolutionoftheidentifiedproblemsintheVHFcover-agewillinfluencethedesignedconceptualsolution.Inaddition, theneedwas identifiedfor thechangeofmethodofimplementationoftheexistingclassesofairspaceinMontenegro.Thecollectionofdataonqualityconnectionhasstarted,whichwillbeoneoftheelements for theanalysisof thereorganisationofthelowerairspaceinMontenegro.Inagreementwith the aviation authorities of Montenegro, datacollectionwillbedonebytheendoftheseasonof2016,afterwhichtheworkwillstartonthefinalver-sionoftheproposalforreorganisationofTMCandCTRPodgoricaandTMCandCTRTivatairspace.

ForTMCBeograd,withinthefirststep,thereorgani-sationproposalwasmade,whichforeseestheintro-ductionofPBNprocedures, raising theupper limitof theterminalatFL195with theextensionof theareaof responsibility to thenorthandsouth inor-dertoadapttheairspacestructuretotheoptimizedflightprofiles.Theproposalisconfirmedbyaseriesofsimulations.Simultaneouslywiththereorganisa-tionofairspaceofTMCBeograd, the reduction inthealtitudeofthespaceinresponsibilityofadjacentTMC(Batajnica,KraljevoandPonikve)atFL125waspredicted.Implementationoftheproposaliswaitingforthevalidationfromtheair(CNS-calibration).Forthe realization of the second step the agreementwith the relevant military authorities is necessary,onincreasingthevolumeofairspacethatwouldbeclassifiedwithclassG.

BSO01.04.02Introducetheroutesforplanningofcross-borderdirecttraffic-cross-borderDCTroutes

Theplansfor2015werefullyimplemented.

Theprojectisbeingcarriedoutasplanned.Possiblechanges or earlier termination, depending onthe implementation of local or cross-border FRAconcepts.

BSO01.04.03IntroducePBNnavigationproceduresatairportsinBelgrade,Niš,PodgoricaandTivat

PBNnavigationprocedureswereimplementedattheairportBeogradandNišinthecourseof2015.ForMontenegrinairportsPodgoricaandTivat, the trialPBNprocedureswerepublished,andtheirvalidationfromtheairandmakingthesafetydocumentationisinprogress.Thecompletionof theseactivitiesandacceptanceoftheapplicationofPBNproceduresbytheaviationauthoritiesofMontenegroareexpectedbytheendof2016.

BSO01.04.04ApplytheCCAMS(CentralizedSSR Code Assignment and ManagementSystem)

Theactivitywascompleted inaccordancewith thedefinedplans.

Table 1. Realizationofplannedactivitiesin2015withintheATM


BasicProjectIdentification

(BSO)BasicProjectTitle RealizationofPlannedActivities

BSO01.04.05ApplyH24FreeRouteconceptfrom the upper limit of TMC upwards

Theplansfor2015werefullyimplemented.Thepro-jectisbeingcarriedoutasplanned.

BSO03.03.01

DevelopstrategiccooperationwithATCsofCroatia,Slovenia,BosniaandHerzegovina,MacedoniaandAlbaniainordertoprovidejointcommercialservices

Inthecourseof2015,inaccordancewiththeplan,there were several strategically important bilateralandmultilateralmeetingswithANSPsintheregioninordertoimplementjointprojects(LongRangeDCTs,SEAFRA - SMATSACCL night cross-border FRA,jointeducationofBHANSAcandidatesthroughtheEntryPointNordandpreparationsfornextseason).

BSO06.02.01Conductanalysisofstrengths and weaknesses intheproceduresofjointprocurements

The starting point for the implementation of theactivitiesisanalysisthatwillbedevelopedwithinBSO06.02.02.Analysisofstrengthsandweaknessesintheproceduresof jointprocurementswillbemadeonthebasisofafeasibilitystudyoftheeffectsofthejoiningthepartnershipofANSP,withthepurposeofjointprocurementofunifiedATMsystems.

BSO06.02.02

Engagingtheconsultingfirmfor the design of Feasibility studyforjoiningthepartnershipofANSPwiththegoalofjointprocurementofunifiedATMsystems(COOPANSgrouporadequate)

Theactivitieswerecarriedoutaccordingtotheplan.TheprocessofprocurementoftheFeasibilityStudyfor joining the partnership of ANSP was carriedout, with a goal of joint procurement of unifiedATM systems (COOPANS group or equivalent).ConsultingServicesCompanyHelioswasselectedwiththeaimofdrawingupafeasibilitystudyinthecourseof2016.

3.1.1 Traffic figures in SMATSA llc area of responsibility

Figure 2. Numberofflightsintheperiodfrom2008to2015

Table 1. Realizationofplannedactivitiesin2015withintheATM

2008

100.000

200.000

300.000

400.000

500.000

600.000

700.000

2009 2010 2011 2012 2013 2014 2015


Figure 3. Distributionofflightsin2015

Figure 4. Peakdayandpeakhourintheperiodfrom2008to2015

20080

500

1,000

1,500

2,000140

155171 178 176 171

185

216

2,500

3,000

3,500 250

200

150

100

50

02009 2010 2011 2012 2013 2014 2014

Pea

k D

ay -

num

ber o

f flig

hts

Pea

k ho

ur -

num

ber o

f flig

hts

Peak day Peak hour

1,993 2,188 2,261 2,460 2,424 2,4612,619

2,969

13%

87%

Overflights

Take-offs / landings


Figure 5. Participationofdifferentaircrafttypesin2015

Figure 6. Numberoftake-offsandlandingsatairportsintheperiodfrom2008to2015

Figure 7. Distributionoftrafficatsomeairportsin2015

Other types,17%

B738, 21%

A320, 26%

A321, 10%

A319, 9%E190, 2%

B737, 2%A332, 2%

B77W, 2%B733, 2%A333, 2%

B752, 1%

B763, 1%B772, 1%

B734, 1%

Belgrade

Podgorica

Tivat

Other airports (Vršac, Kraljevo, Užice, Niš )

13%

12%

1%

74%

2008

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2009 2010 2011 2012 2013 2014 2015

Num

ber o

f tak

e of

fs /

land

ings

Belgrade Podgorica Tivat Niš


Figure8. Numberofserviceunitsintheperiodfrom2008to2015

Figure9. AverageflightlengthandaverageMTOWinFIRBeogradintheperiodfrom2008to2015

km

MTO

W (t

)

78

79

80

81

82

83

84

85

86

87

88

89

225

230

235

240

245

250

255

260

265

270

275

20152014201320122011201020092008

Average flight length (km) Average MTOW (t)

Thou

sand

s

1,000

1,200

1,400

1,600

1,800

2,000

2,200

20152014201320122011201020092008

1,7461,781

1,818 1,829

1,717

1,637

1,750

1,973


Figure 10. Unitratevaluein2015

02 04 06 08 0 100 120

25.18

27.69

29.7130.99

31.32

32.32

34.4735.90

37.02

37.2437.46

38.44

38.49

42.4043.79

45.60

46.16

46.9549.8352.30

55.45

55.49

56.3458.47

63.40

66.40

66.6868.4770.11

70.7971.80

73.45

78.91

90.26

92.56

98.64

0,00 20,00 40,00 60,00 80,00 100,00 120,00

Georgia

Latvia

Ireland

Bulgaria

Turkey

Armenia

Poland

Hungary

Cyprus

Portugal

Romania

Bosnia and Herzegovina

Greece

Serbia / Montenegro / KFOR

Czech Republic

Albania

Croatia

Lithuania

Moldova

Norway

FYROM

Slovakia

Finland

Spain - Canary Islands

Denmark

Sweden

Netherlands

Slovenia

France

Belgium / Luxembourg

Spain

Austria

Italy

Germany

United Kingdom

Switzerland

EUR


CNSinfrastructureofSMATSAllcconsistsoftechnicalsystemsanddevices thatmay,atany time,meetcustomer’s requirements,providing theaccurate,preciseandreliable information. Improvementsofsystems,equipmentandinfrastructureinthepreviousperiodenabledtheirconditiontofullymeetinternationalstandardsand requirements in termsofcapacity,functionalityandenvironmentalprotection.

Theactivitiescarriedoutwithintheimplementationoftheactivitiesplanfor2015contributedtoraisingthelevelofserviceprovisioninthefieldofcommunications,navigationandsurveillancetoamuchhigherlevel,thusmeetingtheneedsofserviceusers.

Basicprojectidentification

(BSO)Basicprojecttitle Realizationofplannedactivities

BSO01.01.02

Install a radar system atasuitablelocationtocoverthesoutheasternarea of responsibility of ATCC Belgrade

Inthecourseof2015,anumberofactivitiesweredonewithintheworkinggroupfortheanalysisandselectionofsitesforconstructionofanewradarstation:

• analysis of possible locations to build a newradar station in the southeastern part of the area ofresponsibilityofATCCBeograd(locationBesnaKobilawaschosenasthemostappropriate),

• internal analysis of location Besna Kobila forsettingupthenewradarofSMATSAllc,

• analysisofmutualinfluenceofthesecondaryradarfor the surveillance of air traffic and existing/plannedradiosystemsatthesiteofBesnaKobila-madebytheFacultyofElectricalEngineeringinBelgrade,

• geodeticsurveyingoflocationBesnaKobila,

• measurement and spectrum analysis conductedbythestaffofSMATSAllcandRATEL,

• resolving issues of property relations for theselectedlocationwasinitiated.

Table 2. Realizationofplannedactivitiesin2015withinequipment,systemsandinfrastructureimprove-mentcomparedtoplannedprojects

3.2Equipment,SystemsandInfrastructureImprovement




BSO01.01.03 Installasecondaryradarat Srpska Gora

Withintheproject,thefollowingactivitieswerecarriedoutin2015:

•theinstallationandSiteAcceptanceTest(SAT)werecompleted,•theanalysisofradardatawasperformed,•radarsystemcalibrationfromtheairwascarriedout,•thetrainingofemployeesatthesiteandprobationwerecompleted.

Before putting the system into operational work, FinalAcceptanceCertificatehadbeensignedon18/03/2015,afterwhichthewarrantyperiodof12monthsbegan.Thesystemwasputintooperationon30/04/2015.

BSO01.03.03ImproveVHF/UHFradionetworkbyadding/relocationradiocentres

Theworkontheanalysisinitiatedduring2014iscontinued,with theaim to select a suitable site for the constructionof a new VHF/UHF radio centre, this improving thecoverageof thus improving thecoverage in theSMATSAllc area of responsibility. Potential locationswere visited.Theanalysis includescomparisonof thesites indifferenttechno-economicaspects,andafterthepotentiallocationshadbeenidentified, thecheckof theurbanandtechnicalconditionsandpossibilityforconstructionstarted.

BSO01.03.04ImproveVHF/UHFradiosystem for the needs of ATCC Belgrade

Inthecourseof2015,thesecondphasewascompletedandthethirdphasewascarriedout,oftheprojectfortheinstallationofradiosystemsat locationsKopaonik,Pod-goricaandTransmissionCentreRudnik,thuscompletingallplannedactivitieswithinthisproject.

AnnualReport201518





BSO01.03.05 ImproveAMHSfunctionalities

During2015,thetechnicalspecificationforAMHSsystemupgrade with new functionalities was prepared, but dueto the problem of insolvency of Company Comsoft asthe only potential bidder, this project (procurement) wasrescheduledfor2016.

BSO01.03.06Implement the connectiontothePENSnetwork

ConnectingtothePENSnetworkwasnotimplementedin2015duetothecomplexityoftheprocurementprocedurewhichmustbecarriedoutinordertomakethisconnec-tionimplemented.TheconnectiontothePENSnetworkisexpectedin2016.

BSO01.08.021

Modernize and automate theaeronauticalmeteorologicalobservations

A1

Procurementandinstallation of laser ceilometersandvisibilitysensors; phase II of the procurement.

InaccordancewiththeAgreementfromMarch2015,concludedwith the bidderVaisala fromFinland, thesecond phase includes delivery and installation oflaserceilometersandvisibilitysensorsforairportsinBatajnica,NišandKraljevoasfollows:

• ADCBatajnica-adevicehasbeeninoperationalusesince17/09/2015,

• ADCNiš-adevice is installedandput into trialoperationinNovember2015,

• ADCKraljevo-adevicewasinstalledinDecember2015.

A3

Procurementandinstallation of a system fordetectingtheelectricaldischargesinthe atmosphere

Allthenecessarydocumentationtostarttheprocurementprocedurewasmade.On30/11/2015, the decisionwasmadetostarttheprocedureofpublicprocurement.

A5 UpgradeofSAWASsystem

After successful completion of the negotiation processwiththeInstituteM.Pupin,thecontractforSAWASsystemupgrade,NAB.00-75/82from20/08/2015wassigned.TwostageswerestipulatedintheContract.Thefirstphaseoftheimplementationisinthetestperiod.

A6 ProcurementoftheMETshelter

Theprocurementwasconductedsuccessfullyandagree-mentwasconcluded,pursuanttowhichthedeliveryoftheequipmentisexpectedatthebeginningof2016.

Inadditiontotheaboveprojects,thetermsofreferenceandinvestmentprogramwerecompletedin2015,thetechnicalspecificationwaspreparedandatenderfortheprocurementandimplementationofFallbackDPSsystemwasannounced.

1 InTable2, theactivitiesonthe implementationof theBSO01.08.02areexplained in thecontextof theMETsystemsurveillance



Commenced

Com

pleted

Transferred

to2016

Rationale

PROJE

CTDOCUMEN

TATION

1.

Project-technica

ldocum

entationforthe

constructionoftheAD

CBe

lgradeTow

er

withtheannextoATC

CBe

ogradbuilding

BSO01.05.07

TheConceptualdesignismadeforthepurposesofobtainingthelocation

requirementsfrom

therelevantministry,onthebasisofwhichthedraw

upofthe

necessarytechnicaldocum

entationwillstart.

2.Project-technicaldocumentation

for

thereconstructionofACCBeograd

BSO01.05.01

Inthecourseof2015,anopenpublicprocurementprocedurewasconductedand

theDecisiontoterminatetheprocedurewasmade(changedcircum

stancesthat

haveaffectedtheissuanceoflicense-licenseforthedevelopm

entofprojects

forb

uildingconstructionsintheairportcom

plex).Theprocurem

entprocedurefor

serviceofte

chnicaldocum

entationdevelopm

entforinfrastructuralconnectionof

ACCBeogradandATC

CBeogradbuildingswasalsosuspended.Theprocurement

procedure

wasrepeated

and

the

contractswere

concluded

withC

ompany

MašinoprojektKOPR

INGJSC

,Belgrade,andim

plem

entationisexpectedin2016.

3.DesignofITSystem

BSO06.01.02

In2015,theWorkingGroupwasformedfordraftingthetermsofreferenceforthe

implem

entationofIT

systemdesignforS

MAT

SAllc.C

ontinuationofactivitiesis

expectedinthefutureperiod.

4.Project-technicaldocum

entationfor

buildingslegalization

BSO01.05.02

SMAT

SAllchasfiledrequestsforlegalizationofallfacilitiesituseswithinthele-

galdeadline,andforw

hichtherearenocorrespondingpermitsorw

hicharenot

adequatelyrecordedorregisteredonSMAT

SAllc.InthisprocessSMAT

SAllc

isobligedtoensure,amongotherthings,as-builtdrawingsforfacilitiesthatare

severaldecadesold.Incaseswhereas-builtdrawingscannotbefoundinthear-

chives,itisnecessarytoprocuretheserviceofdevelopmentofprojectsofexist-

ingfacilitiesfortheneedsoftheirlegalization.

CONST

RUCTIONANDREC

ONST

RUCTION

OF

FAC

ILIT

IES

1.

AdaptationofReceivingVHF/

UHFRadioCentreRudnikand

constructionofauxiliaryfacility

BSO01.05.05

ThecontractonpublicprocurementoftheadaptationworksontheReceiving

VHF/UHFRadioC

entreR

udnikandconstructionofitsauxiliaryfacilitywere

concludedin2015.Thefinalreceptionofallperformedworksandre

alizationof

thisinvestmenta

reexpectedin2016.AdaptationofReceivingVHF/UHFRadio

CentreRudnikisnecessaryinordertoensuretheconditionsforinstallationofa

newVHF/UHFradiosystem

plannedforthislocation(asprovidedintheProject

forImprovem

entofV

HF/UHFradiosystem

fortheneedsofATC

CBeograd).

Tabl

e 3.

Reasonsfortherealizationofthemostimportantinvestmentslistedinthe2015AnnualR

eport,inthepartSpecificationofinvestments


Commenced

Com

pleted

Transferred

to2016

Rationale

2.ReconstructionofADCTivat

BSO01.05.08

Thecontractonpublicprocuremento

fthereconstructionworksontheAD

CTivat

facilitywasconcludedin2015.Im

plem

entationofthisinvestmentisexpectedin2016.

Thegoalofthisinvestmentistocreatebetterw

orkingconditionsforATC

Osandother

personnelintheAD

CTivatandpreparationofthefacilityfortheincreasingtrafficat

theairportTivat.

3.Reconstructionofsubstations,electric

powerplantsandfacilities

BSO01.05.03

Reconstructionofelectricalinstallations,plantsandfacilitiesshouldbecarried

outonthebasisofprojectsfordesigningtheelectricalinfrastructureforw

hichthe

procurem

entp

rocessiscurrentlyinprogress.Theabovereconstructionshould

includetheworksonfacilitiesofSMAT

SAllc,w

hichdonotm

eettheprescribed

requirements,a

sestablishedonth

ebasisofregularte

stingofelectricalinstal-

lations,aswellasreplacem

entofw

orn-outinstallationsandequipment.There-

constructionofelectricalin

stallationsin

thefacilitiesofADCPonikveandRS

Koševacareprim

arilyplanned.

Installationofnew

,moderntechnologicaldevices,aswellasreconstructionofdi-

lapidatedinfrastructureprovidesth

econditionsforbetterandsaferprovidingof

servicesofelectricitysupplysystem

maintenance.

EQUIPMEN

T

1.Procurementandinstallationofgoods

inthefieldofelectroenergetics

BSO01.05.03

Thisprocurementcontinuesthemulti-yearprocessofreplacingthedevicesforuninter-

ruptiblepow

ersupplyanddevicesforD

Cpow

ersupplyatalllocationsofS

MAT

SAllc.

Buyingthenewequipmentisconditionedbyincreaseindem

andsarisingfrominstalla-

tionofnew

systems,aswellasthelowerreliabilityofexistingdevicesandincreasingly

difficultpurchaseofsparepartsduetocessationofproductionofexistingdevicesthat

aregenerationalandtechnicallyoutdated.

Locationsplannedinth

isprocurementin2016/2017are:RDRKopaonik(UPS

2x60

kVA,BP,2xBM

S),R

DRMurtenica(U

PS2x60kVA,BP,2xBMS),H

eadquarterb

uilding

(1xU

PS100kVA

,BP,2xBMS),T

HBG(2

хUPS

,BP,2xBMS,DC),AD

CPonikve(D

C),

TKSvetiIlija(DC),TH

Kraljevo(DC),VS

Zem

un(DC)COKL

BG(DC),AD

CVršac

(DC),RNSTopola(UPS

andDC),RNSPo

žarevac(UPS

andDC),L

LZTivat(UPS

andDC),TH

Tivat(U

PSandDC),RNSSrem

skaMitrovica(UPS

andDC),RNSVal -

jevo(U

PSandDC),RNSBa

tajnicaRFBT

(UPS

),RNSBa

tajnicaRFPZ

(UPS

)RNS

Jajinci(U

PS),RNSMakiš(U

PS),RNSUgrinovci(U

PS),RNSKrnješevci(U

PS),RNS

Pančevo(UPS

).Thepublicprocurementprocedurestartedin2015,whereassigningandim

plem

enta-

tionoftheContractareexpectedinearly2016.

Tabl

e 3.




Commenced

Com

pleted

Transferred

to2016

Rationale

2.ProcurementofR

DRsimulator

Thecontractonpublicprocurementofradarsimulatorwasconcludedin2015

andcompleterealizationofthecontractisexpectedin2016.Anewradar

simulatorshouldreplaceASUE/FIRSTplusradarsimulatorw

hoseresourceis

expiringandshouldprovideeffectivetrainingforstudentsofairtrafficcontrol

andairtrafficcontrollers.Expiringofthesoftw

are/hardwareresourcesisan

additionalreasonforthestarto

ftheprocuremento

ftheradarsimulator.A

new

radarsimulatorshouldprovideeffectivetrainingforstudentsofairtrafficcontrol

andairtrafficcontrollersfo

rthefollowingpurposes:B

asicTrainingandRating

Training,C

ontinuationTraining,D

evelopmentTrainingandTestingandValidation

ofOperationalProceduresandProcesses.

3.ExpandingthecapacityofV

CS

simulatorforR

DRsimulator

ThecontractonpublicprocurementforexpansionofthecapacityofVCSsimulator

forradarsimulatorwasconcludedin2015.Totalvalueoftheinvestmentw

asfully

implem

entedin2015.Theinvestmentincludedapurchaseofadditionalhardw

are

toequiptheradarsimulatorworkplaces,inordertoensurefullfunctionalityofthe

system

fortheim

plem

entationoftrainings.

4.

Purchaseofhardw

arefortheneeds

ofinstallationofCIMACTsystem

and

installationofthesystem

BSO01.04.06

Thecontractonpublicprocurementofhardw

arewasconcludedandcom

pleted

duringtheyearof2015,whiletheconclusionofthecontractonprocurem

entand

installationofsoftwareisplannedduring2016,inordertoimplem

entthesystem

itselfo

npurchasedhardware.CIMACTsystem

willensurethefulfilmento

fthe

obligationsofintegrationandcompatibilityontheregionalandEuropeanlevel

withregardtosafetyandprotectionandtheConceptofFlexibleUseofAirspace.

Civil-militarycoordinationbetweenairtrafficcontrolunitsandcom

petentunitsof

theArmyofSerbiaandtheArmyofMontenegroismaintainedatthetacticallevel

inaccordancewiththeworkproceduresandtechnologythathavenotchanged

significantlyinrecentdecades.

Tabl

e 3.




Commenced

Com

pleted

Transferred

to2016

Rationale

5.

ProcurementofD

VOR/DME

equipm

entforairportsinBeogradand

Vršac

BSO01.02.02

ThecontractonpublicprocurementoftheDVOR/DMEequipmentforairportsin

BelgradeandVršacwasconcludedin2015.

Aftersuccessfulcom

pletionofthepublicprocurementprocess,thecontractwith

IndraNaviafrom

NorwaywassignedinAugust2015.Thefactorytrainingforthe

devicem

aintenancewasheldinSeptember,FATwasconductedinNovem

ber

2015,a

ndth

edeliveryofgoodsinDecem

ber2015.T

heinstallationisplanned

inth

esecondquarterof2016,aftercompletionofth

epreparatoryconstruction

works.

TheDVOR/DMEinvestmentatlocationsinBelgradeandVršacwillsignificantly

improvetheinstrumentflightandincreasethesafetyofairtraffic.

6.LocalizerfortheairportTivat

BSO01.02.03

Thecontractonpublicprocurem

entofthelocalizerfortheairportTiva

twasconclu

ded

in2015.

Afters

uccessfulcom

pletionofth

epublicprocurem

entp

rocess,thecontractwithIn

dra

Navia

fromN

orwa

ywa

ssig

nedinM

arch2015.Thefactorytrainingforthedevic

emaintenancewasheldinJuly,andFATwa

sperformedinAugust2015.Theequipment

wasinstalledandSA

Twa

ssuccessfullyperformedinDecem

ber2

015.Theoperational

useisplannedtobeginfrom

7thJanuary2016.

Thedevic

ewa

spurchasedinordertoreplacetheexistingdevic

efrom1993.

Tabl

e 3.




SMATSAllcaccededtothevariousconsortiainordertoparticipateinthetenderprocessesforCentralizedservices.During2015anumberofmeetingswithinthevariousconsortiawereheld,mainlyrelatedtothepreparationof tenderdocumentation for thesubmissionofbids(CS-1,CS-6-2,CS-6-3,CS-7-1),andforcertaincentralizedservices,dedicatedsessionsinEurocontrolwereheldafterthesubmissionofbids (CS-6-3,CS-1).RepresentativesofCNSparticipatedintheworkofconsortiumforthefollowingcentralizedservices:CS-1,CS-6-2,CS-6-3,andCS-7-1.ForcentralizedservicesCS-6-3,CS-1offersweresubmittedin2015.

3.3AISImprovement

AeronauticalInformationService(AIS)includestheprovisionofaeronauticalinformation/datanecessaryforthesafe,regularandexpeditiousairnavigation.

Aeronauticalinformingproceduresareconsistentwithinternationalstandardsandrecommendedpracticescontained in theSingleEuropeanSky commonrequirements.

Inorder to improveAIS,during2015,additionaltwoemployeesweretrainedtousethesoftwareforcreationofelectronicAIP.Toenhancethecooperationwith theneighbouringprovidersofairnavigationservices,therepresentativesofAIS,togetherwithengineersfromtheITsector,metwiththefunctioningoftheaeronauticalinformationsysteminSloveniacontrol,especiallywiththeprojectofharmonizationwith therequirementsofADQ, i.e.operationandcharacteristicsofthesystemforthedirectelectroniclink.AworkshopforCS5EAIMSsafetyassessmentwasalsoheldattheendoflastyear.



BSO.01.07.01 Improvethequalityofaeronauticaldata

Afterdefiningthesestrategicobjectives,the preparation of the procurementof support services for design of thefeasibility study and development ofdetailedplanofactivitiesintheperiodupto2020hasstarted.

BSO.01.07.03 Introduceasystemforthedirectelectroniclinktodatasources

The activities on the market researchwerecarriedoutduring2015.

BSO.01.07.08

EstablishtheInformationSecurityManagementSystem(ISO17799)andtheSupplyChainSecurityManagementSystem(ISO28000)

There was no activity. Feasibility studyfrom BSO.01.07.01 will provide theanswersfor thewayofdealingwiththisobjective.

Table 4. ThesummaryofrealisedactivitiesintheareaofAISprovisionin2015


3.4METServicesImprovement

Table 5. Realizationofplannedactivitiesin2015inthefieldofaeronauticalmeteorology

Basicprojectidentification(BSO) Basicprojecttitle Realizationofplannedactivities

BSO.01.08.01 Centralizingtheforecastingfunctions

The planned activities have been com-pletely implementedand include the fol-lowing:

•aworkinggroupfortheimplementationwasformed;•ananalysisoftheexistingsituationwasperformedandtheplanofthefuturecon-dition was made, including human re-sources;•necessaryprocurementsareplannedin2016and2017.

BSO.01.08.02Modernizeandautomatetheaeronauticalmeteorologicalobservations

Thelargestpartofplannedactivitieswith-in this BSOhas been implemented andincludesthefollowing:

•implementationofvisibilitymeter,powerme-terandPWDsensorswasplannedandcar-riedoutatthe4locations;• Upgrade of the software for the systemSAWASforAUTOMETARforADCUžicewasnotrealizedbecauseitrequestedachangeintheorderofimplementationofvisibilitymeters,ceilometersandPWDsensorsestablishedbytheContract,whichwasnotpossible.

Inordertoimprovethesafety,regularityandefficiencyofAirNavigation,SMATSAllcprovidesaeronauticalmeteorological services inaccordancewith thenationalandinternationalstandardsandregulations.

In the course of 2015, the representatives ofSMATSAllcparticipatedinthe25thmeetingofthe“Meteorologygroup»(METG),held inParisfrom14thto18thSeptemberwithintheICAOEuropeanAirNavigationPlanningGroup(EANPG),aswellasinthe10thinternationalworkshopforprofessionaltraininginmeteorology,organizedbyEUMETCALandtheEuropeanCentreforMedium-RangeWeatherForecasts(ECMWF),heldfrom14thto19thJuneinReading.

METGmeetings are held once a year and thesituation ismonitoredand thedeploymentofallsystemsinthefieldofaeronauticalmeteorologyinEuropeiscoordinatedatthosemeetings,while,intheworkshop,theinteractivedemonstrationswerepresented,aswellasinnovativeideasandtoolsthatwillbeimportantelementsinthefuturedevelopmentofaeronauticalmeteorologicalservices.

Inaddition,therepresentativesofSMATSAllchavealsoparticipatedintheEuropeanConferenceonMeteorologyforAviation(ECMA2015).TheaimoftheconferencewastodrawattentionofthemembersoftheWorldMeteorologicalOrganisation(WMO),RegionalAssociationVI,tothecurrentandfutureweatherchangesinEurope,whichwillcontributetomoreefficientorganisationofairtrafficintheregion,inaccordancewiththeATMMasterPlanapprovedbytheEuropeanCouncil.


04BusinessPerformance

SuccessofSMATSAllcisbasedonthequalityofprovided service and the efficiency of theATCsystem.Inordertoimprovebusinessperformanceinaccordancewiththeobligationsarisingfromthenationalandinternationalstandardsaswellastheneedsoftheusers,SMATSAllcisactivelymonitoringtheimplementationinrelationtothesetobjectivesandtakingthecorrectivemeasures,ifnecessary.

4.1Operationsinaccordancewiththe SES Targets

BearinginmindthattheRepublicofSerbiaandtheStateofMontenegroarethesignatoriesoftheECAAagreement,theCivilAviationDirectorateoftheRSandtheCivilAviationAgencyofMontenegrohavetakenthebasicregulationsrelatedtothePerformanceSchemewithintheSingleEuropeanSkyintodomesticlegislationintheformof:

•TheRegulationonrequirements, issuingandvalidityperiodofthecertificateforprovidingairnavigationservices(Off.GazetteoftheRS,No.32/11,54/12,24/13),withwhichawholeCommissionImplementingRegulation(EU)No.1035/2011and1034/2011from17/10/2011istakenover,amendingtheRegulation(EU)No.691/2010,and

• The Regulat ion laying down commonrequirements,Air TrafficManagement andAirNavigationServicessecuritysurveillance,software safety assurance system andPerformanceScheme(which takesover theCommissionRegulations(EC)No.1035/2011,1034/2011, 482/2008 and 691/2010), (Off.GazetteofMontenegro,No.65/2012).

However, the European Commission has thegoaltofullyintegratetheECAApartnersintothethirdreferenceperiod(startingfrom2020).Inthisregard,adocument,agreedamongtheCAA,CADandSMATSAllc,wassignedin2015,definingtheprocedureandtimeframefortheinitialimplementationofSESPerformanceScheme(NationalRoadmap).ThejointworkinggroupsatthelevelofCAD,CAAandSMATSAllcwereformed.RepresentativesofSMATSAllcactivelydealwithissuesinrelationtothedefinedobjectivesandprovideallthenecessaryexpertise for implementing the Initial NationalPerformancePlan.

InaccordancewiththerequirementsofSES,SMATSAllcmonitorsbusinessperformanceinfourkeyareas:safety,capacity,costefficiencyandenvironmentalprotection.


4.1.1 Safety

Titleofsafetyindicator Acceptablelevelofsafety Achievedvalues

NumberofaccidentswithATMinfluenceperyear <0.007accidents 0

Numberofseriousincidentsperyear <5incidents 0

Numberofsignificantincidentsperyear <50incidents 0

Numberofrunwayincursionsperyear <3incidents 0

DPSfailuresperyear <10incidents 1

DurationofSSRradarstationsoutageperyear <600minutes

5.86minutesKoviona0minutesKoševac634.46minutesMurtenica2nodowntimesSrpskaGora(Podgorica)

2PSR/SSRradaronRSMurtenicahadanoutageofatotal634.46minutesduring2015,duetotheeventsfromJune(theappearanceofthealarmonthesecondaryradar,causedbytheadverseweatherconditions-frequentatmosphericdischarges).

Table 6. Targetandachievedvaluesofsafetyindicatorsin2015

InordertomeettherequirementsrelatingtotheassessmentandmonitoringofthesafetylevelinthecontextofthePerformanceScheme,SMATSAllchasdevelopedaprocessformonitoringthesafetyindicatorsinallpartsofthesystem.

AmongtheobjectivesrelatingtothestatusofSafetyManagementSystemofanairnavigationserviceprovider(SMSindicators)inthesecondreferenceperiod indicatorsof theefficiencyof theSafetyManagementSystem,theimplementationlevelofRATmethodologyforclassificationofoccurrences(whichSMATSAanalyzesonthebasisofitsSMS)andimplementationlevelofJustculturehavebeendefined.

InformationcollectionandassessmentinthefieldofSMSindicatorsisdonebytheEuropeanAviationSafetyAgency(EASA).MonitoringtheseindicatorsbySMATSAmeansanannualanalysisofthereceivedEASA evaluation, on the basis of which somecorrectiveactionsaretaken,ifnecessary.

MonitoringofSMSindicatorsisdonevoluntarily,inordertobepreparedfortheimplementationoftheregulationthatisnotyetbindingfortheRepublicofSerbia,butitsimplementationinthelegalsystemoftheRepublicofSerbiaisexpected.Accordingly,on31stDecember,2015,theamendedrulebookofCAD,thatdefinesmonitoringofSMSindicators,enteredintoforce.

Assessment of the eff iciency of the SafetyManagementSystemiscarriedoutonthebasisofsafetyindicatorslaiddownatthenationallevelbytheAviationAuthorities(CADandCAA).Analysisofsafetyindicatorsiscarriedoutannually,andtheresultsfor2015arepresentedinthetablebelow.


DurationofPSRradarstationsoutageperyear <2,400minutes

105.28minutesKoviona670.25minutesMurtenicanooutagesSrpskaGora(Podgorica)3

MeantimebetweenoutagesforLLZILS(CATIII)peryear >4,000hours 8,746hours

MeantimebetweenoutagesforLLZILS(CATI)peryear >1,000hours 8,747hours

Numberoflossesordegradationsofoneormoreoperationalfrequenciesperyear

<60incidents 7

4.1.2 Capacity and Delays

AccordingtothesourceEUROCONTROLNMOC,in2015theaveragedelayperoneIFRflightgeneratedbySMATSAllcamountedto0.02524min,whichmeetstherequestedlevels.

3PrimaryradaratthesiteSrpskaGoraisexcludedfromtheoperationaluseon18/11/2014becauseoftheinstallationofthesecondaryradarwithintheproject“UpgradingtheradarsystematthesiteofSrpskaGora(Podgorica)byinstallingthesecondaryradar”.PrimaryandsecondaryradarsontheRSSrpskaGorawereputintooperationon30April2015.SystemandtotalavailabilityforPSR/SSRSrpskaGoraiscalculatedforthetimeintervalfrom01Mayto31December2015.

Figure 11. AverageATFMdelayperflightintheareaofSMATSAllcresponsibilityfrom2007to2015

0,19

0,3

0,8

Table 6. Targetandachievedvaluesofsafetyindicatorsin2015

2007

0.00243 0.00631 0.00398 0.009540.04968

0.19

0.3

0.8

0.00173 0.01776 0.00564 0.02524

0.90

0.70

0.50

0.30

0.80

0.60

0.40

0.20

0.10

0.002008 2009 2010 2011 2012 2013 2014 2015

Min

utes

Average SMATSA llc ATFM Delay per Flight

SMATSA llc Quality Objectives

EUROCONTROL Target Value

European Commission Allowed Value


Figure 12. UnitRategivenfor“Serbia-Montenegro-KFOR”chargingareain2015

*sourceCRCO

4.1.3 Cost Efficiency

InthesecondreferenceperiodattheEUlevel,themainindicatorofcostefficiencyistheaverageUnitRatevalue,whichfor2015amountsto:EUR56.64(reducedto the levelofEUR=2009).Theaim isdefinedbytheDecisionoftheEuropeanCommission

2014/132/EC.TheplannedUnitRatevaluegivenfor“Serbia-Montenegro-KFOR”chargingarea,whereSMATSAllcprovidesairnavigationservices,in2015wasinlinewiththedefinedobjectiveofSES.

AttheNovembermeetingoftheEUROCONTROLEnlargedCommittee in2014, theunit ratevaluegivenforSerbia/Montenegro/KFORchargingareafor2015wasdetermined,andthenadopted(DecisionNo.132from05/12/2014inAnnexNo.1,publishedinthe“OfficialGazetteoftheRS”,No.141/14).Inaccordancewiththisdecision,theunitratevaluegivenfor“Serbia-Montenegro-KFOR”chargingareafor2015,isEUR42.29(NationalUnitRate),i.e.EUR42.40(GlobalUnitRate)includingEUROCONTROLAdministrativeUnitRate.

The specified unit rate value, which belongsexclusivelytoSMATSAin2015,isapproximatelyEUR33.47.

SMATSAllcincomein2015isby5.2%higherthanplannedi.e.by5.6%lowerthanin2014.Despitethehigherrealizationoftrafficandserviceunits,whataffected the lowergenerationof income in2015

comparedto2014arethemonthlyvaluesoftheunitrate,andincomedistributionkeyamongtheentities.Inaddition, itshouldbenotedthattheincomein2014includedthecollectionofthearrearsinamoresignificantamountincomparisonwiththeyearof2015.

Ontheotherhand,thedynamicsofrealizationofinvestmentsin2015causedalowerrealizationinrelationtotheplan,anditresultedinthetransferofinvestmentsinto2016.

AlloftheabovedidnotaffectbusinessefficiencyofSMATSAllcnorthesafetyandqualityofairnavigationservices.

Thefigurebelowprovidesanoverviewofthevaluesoftheunitrategivenfor“Serbia-Montenegro-KFOR”chargingareaandmonthlyadjustedvaluesfor2015.

42.40

41.41

41.03

41.50

41.79 41.8841.72 41.74

41.86 41.86 41.9141.70


4.1.4 Environmental Protection

Ratingoftheenvironmentalprotectionleveliscarriedouton thebasisof theaveragehorizontal flightefficiency,anindicatorrecognizedintheregulationsconcerningthePerformanceSchemeinthecontextoftheSingleEuropeanSkyregulation.Inthesecondreference period (2015-2019), target values ofindicatorsaredefinedasfollows:

1. KEA(KeyperformanceEnvironmentindicatorbasedonActual trajectory)- indicatorof thedeviationof the flightpath in relation to thegreatcirclepath.Theaveragehorizontalflightefficiencyby2019isadeviationfromtheactualpathof2.6%inrelationtothegreatcirclepath,

2. KEP(KeyperformanceEnvironmentindicatorbasedonlastfiledflightplan)-indicatorofthedeviationinthelastfiledflightplanrelativetothegreatcirclepath.Theaveragehorizontalflightefficiencyby2019isadeviationfromthelastfiledflightplanof4.1%inrelationtothegreatcirclepath.

ThevaluesofthehorizontalflightefficiencyindicatorsforSerbiaandMontenegroin2015fullymeetthesetvalues,asshowninthefigurebelow.

Thisconfirmsonceagainthatwithconstantimprovementoftheroutenetwork,airspaceandworktechnologyorganisation,aswellaswithintroductionofnewprocedures,SMATSAllcismakingasignificantcontributiontoenvironmentalprotection.

Figure 13. HorizontalflightefficiencyforSerbiaandMontenegroin2015(source:EUROCONTROL/PRU)

3.0

2.5

2.0

1.5

1.0

0.5

00Jan

Inef

ficie

ncy

(%)

Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec


4.2Operationinrelationtootherobjectives

4.2.1 Quality of services

AttheregularmeetingoftheQualityCommittee,SMATSAllcanalyzesanddeterminestheannualqualityobjectives.

Thefollowingtablerepresentstheanalysisofthefulfilmentof2015qualityobjectives:

Service Objective Planned Achieved Note

АТМ

TheaveragedelayperIFRflightgenerated bySMATSA llc annu-ally

lessthan0.3minutes YES 0.0252minutes

The percentage of aircraft thattakeofffromtheareaofrespon-sibility of SMATSA llc within thetimetoleranceofissuedslot

morethan83% YES 89.91%

Thenumberofseriousincidents,which are found to have beencausedbyATM

lessthan5 YES

After examining the base ofevents in SAF.00 for 2015, itwasdeterminedthattherewasatotalof251reportedevents,6ofwhich required further analysis,5 by the SAF.00 departmentandonebyCADincooperationwith experts from SMATSA llc.Besidesthehelicopteraccident,noothereventwasqualifiedbythe Aviation Authorities as anaccidentorseriousincident.

CNS

Thesystemavailabilityoftechni-caldevicesandsystems thatdi-rectlyaffect theprovisionofser-vices

А(t)=99.9% YES

Despitetheexceptionsfromthedesiredvaluesofsystemavail-abilityspecifiedintheAnnexes,and due to the individual andgroup redundancy of CNS de-vicesandsystems,during2015itcanbeconsideredthattheob-jective of quality in the field ofCNSismet.

МЕТ TerminalAerodromeForecast(TAF)accordingtoICAOAnnex3,Attach-

mentBYES

Average for all airports 95.2%,thus achieving the desiredoperational accuracy given inICAOAnnex3,AttachmentB.

AIS QualityratingQ higherthan0.77 YES 0,778

TRE

Realizationoftheoreticaltrainingnumberofclassesforthecurrentyear, for each enrolled group ofcandidatesintheANSPersonnelTrainingCentre

100% YES

Classes of theoretical traininghave been conducted in accor-dancewiththeappropriateDeci-siononthetrainingconduction.

Realization of practical trainingnumberofclassesforthecurrentyear, for each enrolled group ofcandidatesintheANSPersonnelTrainingCentre

100% YES

ClassesofpracticaltraininghavebeenimplementedinaccordancewiththeappropriateDecisiononthetrainingconduction.

Table 7. Analysisofthefulfilmentof2015qualityobjectives


Service Objective Planned Achieved Note

ATO

The percentage of the realizedclasses of theoretical training inrelationtotheplannednumberofclasses for the current year, foreachenrolledgroupofcandidatesatSMATSAAviationAcademy

100% YES 117%

Meeting the planned deadlinesforcompletionoftheoreticaltrain-ingforthecurrentyearatSMAT-SAAviationAcademy

100% YES Deadlines for completion of allenrolledgroupsaremet.

Thepercentageofcompletedflighthours in relation to the plannednumberofflighthoursforthecur-rentyear, foreachenrolledgroupofcandidatesatSMATSAAviationAcademy

100% YES 116%

Meeting the planned deadlinesfor completion of flight trainingfor the current year at SMATSAAviationAcademy

100% YES

Deadlines for completion of allenrolled groupsaremet for allthe candidates who regularlyattendedtheflighttraining.

CALImplementationoftheannualcal-ibrationplan

100%YES 106%

Successfulcontractrenewal 2 contracts NO 1 contract

MO

Compliancewithworknormsex-pressedinpercentagecomparedto the norms prescribed by themanufactureroftheaircraft

morethan97% YES 97.78%

Renewalofexistingcontractswithusersofaircraftmaintenanceser-vicesandsigningandimplemen-tation of the contract on aircraftmaintenanceservices

Renewalofexistingcontractswithusersofaircraft

maintenanceservicesand signing and implementationofthecontractontheprovisionofaircraft

maintenanceservices

YES

All the previous contracts withtheusersofaircraftmaintenanceservicesareineffectand4newcontracts on the provision ofaircraft maintenance servicesowned by a third party weresignedandimplemented.

Table 7. Analysisofthefulfilmentof2015qualityobjectives


4.2.2 Other Business Performance Indicators

ForcertainareasthatarenotcoveredbyqualityobjectivesandbyEuropeananddomesticregulations,theinternalobjectivesareset,thatplayaroleinmeasuringbusinessperformanceincertainbusinessareasbasedonperformanceindicators.

Area Titleofindicator Methodofmonitoring(methodologyorformula) Planned Achieved

CAL

Flightsafetyduringtheexecutionofgroundbasedradionavigationaidscalibrationtasks

Numberofeventsthathavehadanimpactonendangeringtheflightsafety

0 0

ITTimeofoperationofVDIsystemwithoutfailuresanddowntime

Percentageofavailabilitytimefortheperiodofoneyear

95% 65%

IT

TimeofIToperation;datacentrebasedonvirtualizationoftheserver,networkandsystemresourcesfordatastorage

Percentageoftimewithoutfailurefortheperiodofoneyear

99% 99%

IT

PercentageofrealizationofplannedprocurementsintheinvestmentcycleofprocurementofITequipmentandlicenses

Percentageofrealization 100% 90%

IT

TimeofglitchremovalandreportsofinterferencesonITequipmentandsystems

Timeexpressedinminutes 15 30

IT Monitoringofsystemundercontrol

Percentageofsystemundercontrol.MonitoringtheappliedmeasuresintheITsysteminordertoincreasethetimeofavailabilityofthesystem

70% 80%

Table8.Otherbusinessperformanceindicators


05OrganisationalTechnology-basedManagementSystems5.1AirTrafficSafety

Developmentof theSafetyManagementSystemin accordance wi th the requi rements andrecommendationsofthenationalandinternationallegislationandrecognizedoracceptedgoodpracticesisoneofthemainobjectivesofSMATSAllc.

Byconstantlyimprovingthelevelofsafety,SMATSAllcstrivestoprovideallthenecessaryconditionsforthesaferunningofairtrafficinitsareaofresponsibility,andthus,inthebestway,satisfytherequirementsofitsusers.

By following thebasicprinciplesof safety, in itsoperationsSMATSAllcappliestherelevantprocessesandproceduresthatensureabetterunderstanding,acceptanceandimplementationofhighstandardsofairtrafficsafety,inaccordancewiththehigheststandardsandrecommendedpractices.

Evaluationof theperformanceof theestablishedSafetyManagementSystem isperformedby theEUROCONROLeveryyear.Accordingtotheresultsof theanalysis “SafetyMaturityScore” for2015,SMATSAllcwasrankedinfirstplaceinthecategoryof48providersofairnavigationservices.

Establishingthe“RunwaySafetyTeam”forAirportNikolaTeslaBeogradinthemiddleof2015isanotherexampleofgoodcooperationofSMATSAllcwithotherparticipantsintheairtrafficsystemoftheRepublicofSerbiaanddedicationtocontinuousimprovementofsafety.

Inaccordancewiththeplan,inthefieldofsafety,during2015,theactivitieswereimplementedwithinthebasicproject(BSOs),whoseimplementationisenvisagedbySMATSAllcBusinessstrategy(Table9).

AnnualTeport201534




BSO.05.01.01DevelopawarenessofSafetyCultureandJustCulture

The activities to improve the Safety Culture wereperformed, in accordance with the conclusions andrecommendations of an independent measurementand a plan described in the internal documents ofSAF.Increasednumberofinitiativesandpointingoutthe latent risks in behaviour and work of executors,as well as the inconsistencies within the prescribeddocuments,indicatethepopularizationofJustCultureamongtheemployees.

BSO.05.01.02 ImplementthepoliciesofJustCulture

PoliciesofJustCulturewereadoptedandapprovedon30thJune2015.

BSO.05.01.03

IntegratetheconceptofSafetyCultureandJustCultureintotheorganisationalactivitiesandprocesses

Improving the Safety Culture and integrating theprinciplesofJustCultureintoorganisationalactivitiesandprocessesofSMATSAllcwereconductedduring2015throughthefollowingactivities:

• Improving the system of events reporting byintroducing the category of voluntary reportingandprovidingproposalsforimprovingtheoverallservice;

• Working on development of organisationalawareness that, inwork, errorsareunavoidablecategory, but that employees must follow theprescribed operating procedures and thatintentionalerrorswillnotbetolerated;

•Providingtechnicalsupporttotheemployeewhowas involved in theaccident/incident in theformoflegalrepresentationinthecourtproceedings;

• Creating CISM document (Critical IncidentStressManagement);

•Prescribingtheprocedureofreturningemployeesintotheoperationalwork,accordingtotheseverityofeventsinwhichtheyparticipated.

BSO.05.02.01ImplementingASMT(AutomaticSafetyMonitoringTool)

ASMTimplementationin2015wasnotrealizedduetoobjectivereasons.Asetofnecessarydocumentsandactivitiesarepreparedforthepurposeofimplementa-tionofthetool.

Table9.Realizationofplannedactivitieswithintheimprovementofthesafetymanagementsystemin2015


5.2 Quality Management

QualityManagementtasksincludestheparticipationinthepreparationandcoordinationofactivitiesduringperiodicauditsofallservicesthatSMATSAllcprovides,bynationalsupervisoryauthoritiesofthestate-ownedfoundersofSMATSAllc,aswellasimplementationofinternalaudits.

Also,aspartofEASAaudit,whichwasconductedin 2015 in Montenegro, representatives of theQualityManagementDepartmentparticipatedinthecomprehensivepreparatoryactivitiesandmeetingsatthelevelofSMATSAllc,aswellaswiththerepresentativesof theCivilAviationAgencyofMontenegro.WithinEASAsupervision,thesubjecttoverificationwastheQMSsystemanditsapplicationintheorganisationalunitsofSMATSAllcinMontenegro.Aftertheaudit,the

representativesofQMSSMATSAllcactivelyparticipatedindefiningtheproposedmeasuresaccordingtothefindingsofEASA,aswellasinsubsequentactivitiesafterthecheckinorganisationalunitsinMontenegro.

During2015,aregularannualauditoftheestablishedQualityManagementSystem(QMS)inSMATSAllcwassuccessfullyconductedbySGSCertificationCompany,aspartofmaintaining ISO9001certificatevalidity.With theentry into forceof thenewversionof ISOStandard9001:2015,athree-yeartransitionalperiodforSMATSAllctoadjusttonewrequirementsoftheQualityManagementSystembegan.Inaddition,theactivitiesontheintroductionofEnvironmentalManagementSystem(EMS)were initialized, according to ISOStandard14001:2015.

Basicprojectiden-tification(BSO) Basicprojecttitle Realizationofplannedactivities

BSO04.02.01Establishthepolicyofenvironmentalprotectionandsustainabledevelop-ment

The Policy of environmental protection andsustainabledevelopmentwasestablishedandenteredintoforceon15thDecember2015.

BSO04.02.02Documentandimplementthepro-ceduresinthefieldofenvironmentalprotection

The procedure for Waste management andassociated plans were adopted. Drafting of alargernumberofnewproceduresisinprogress,accordingto therequirementsofEMSsystem,andupdatingofanumberofexistingproceduresfromotherdomains(QM,NAB,CED,GEN).

BSO04.02.03ComplywiththenationalandEUle-galrequirementsinthefieldofenvi-ronmentalprotection

InordertocomplywiththenationalandEUle-galrequirementsinthefieldofenvironmentalprotection,preparationsfortheimplementationofpublicprocurementproceduresforthereal-izationofservicesofsoil,groundwater,equip-mentandmaterialtestingareinprogress.

BSO04.02.04 Reducegreenhousegasemissions(objectiveENV01)

Navigation procedures using the CDA(ContinuousDescentApproach)techniquehavebeen identified as an aspect of environmentalimpact and will be managed as part of theEnvironmentalManagementSystem.

BSO04.02.05Establishthegeneralandspecificobjectivesinthefieldofenvironmen-talprotection

The scope ofwork of theQualityCommittee ofwork in the field of environmental managementisexpanded.Aproposalforgeneralandspecificobjectivesinthefieldofenvironmentalprotectionwas designed, which will be forwarded to theQualityCommitteeforadoptioninearly2016.

BSO06.01.01IntroducetheLeanconceptintoop-erationofSMATSAllcandexecutethebusinessprocessesanalysis

InordertooptimizeandimprovethemanagementsystematthelevelofSMATSAllc,thetrainingsinmodernmethodsoforganisation,processesand risksmanagementwill be included in theprocurementplanfor2016.

Table 10. Realizationofplannedactivitiesin2015inthefieldofqualitymanagement


5.3InformationTechnologies

The function of information technologies inSMATSAllcprovidesthemaintenanceandupgradeof information infrastructure, development ofapplicationsforthecurrentbusinessprocesses,whileprovidingthemaximumreliabilityandqualityofthecompletesystem.

Multipleapplicationsweredevelopedwithin theapplicationservicesdepartmentduring2015:

1. Applicationforrecordingandmonitoringofthepublicprocurementcontracts,

2. AnewWebsitefortheIFISconferencethat,inadditiontobasicinformationabouttheevent,enablesregistrationoftheparticipantswiththepossibilityofpayingtheregistrationfeebycreditcardandgeneratingtheproformainvoiceand

3. Webapplicationfordisplayingtheradarandsatellitemeteodataforthepurposeofinformingairtrafficcontrollers.

Inaddition,thepreparationofawebapplicationthat combines all the features of two-waycommunicationbetweentheCRCOandSMATSAllcforthepurposeofinvoicingandcollectionofroutechargeshasstarted.

Duringtheyear,theworkwasdoneontheinformationportalabout thecompletedoperations, thatwillcarryout theprocessinganddisplayof traffic in3D/4Dtechnology,DCTanalysisandverificationoftheinformationreceivedwiththeCRCOdata.TheportalwillbeobtainedbyconnectingtheSMATSA

FDPSsystemandEurocontrolNMsysteminanexistingdatabaseofcompletedoperations.Theapplicationwillincludegraphicalandanalyticaltoolthatwillbeusedtoanalyzetherealizedtrafficinthetransportnetworksystemintheregion,toanalyzetheenvironmentalparametersandverifytheincomeoftherealizedflight.

Creating theWebapplication formanaging thestorehouseoperationshasalsostarted in2015.Withthehelpofthisapplication,theinputofthefixedassetsbasedontheinputdocumentwillberecordedontheonehand,andontheotherhanditwillrecordalldebtsandcondemnationsoffixedassets.Amultitudeofreportsandrecords,suchascheck-outforms,chargelists,stocklistsandsoonwillbeavailablefortheusers.

Continuousinvestment intoIT infrastructure isaprerequisiteforbusinessprocessesdevelopment,i.e.efficientandeffectiveexchangeofelectronicdata.IntheperiodfromMarchtoDecember,theannualinvestmentcycleofprocurementofcomputer,serverandnetworkequipmentwasconducted,aswellastheexpansionofdatastoragesystem.

InaccordancewiththeBusinessStrategyofSMATSAllc, theWorkingGroupwas formed fordraftingthetermsofreferencefor the implementationofinformationsystemdesignforSMATSAllc(BSO01.06.02).


5.4Security

Inordertoraisetheawarenessabouttheimportanceofsafetyandhealthprotectionandfirepreventionatwork,thetrainingwasconductedforemployeesinSMATSAllcinthelastyear,inaccordancewiththeapplicableregulationsintheseareas.

IntheperiodfromOctoberuntilDecemberlastyear,thetrainingontheimportanceofaviationsecuritywasconductedfor150employeesinSMATSAllc,thatcanaccess,unaccompanied,therestrictedareasoftheairportandcriticalinformationsystems.

During2015,approvalswereobtainedbytheCADandCAA for thedocuments related toaviationsecurity:

1. SCM.MAN.001 - Av ia t ion Secur i t yProgrammefortheterritoryofMontenegro,and

2. SCM.MAN.002 - Av ia t ion Secur i t yProgramme.

TheprogrammesareincompliancewiththeNationalCivilAviationSecurityProgrammeoftheRepublicofSerbiaandtheNationalCivilAviationSafetyProgramofMontenegro.

Duringtheyear,theinstallationofvideosurveillanceinADCNiš,RSKovionaandTransmissioncentreRudnikwasperformed,aswellasthesystemsforaccesscontrolinADCNiš,ADCVršac,TransmissioncentreRudnikandTransmissioncentreBelgrade.

Inaddition,theanti-burglarsystemwasinstalledwiththepossibilityofremotecontrolvia2G/3GmobilenetworkattheGroundBasedRadioNavigationalAids locations.

InNovember,SMATSAllcwaspartoftheECACAviationSecurityAuditsintheRepublicofSerbia,andduringtheaudit,thesecuritymeasuresappliedbySMATSAllcweretestedinaccordancewiththerequirementsofECACDoc30.

Inordertocontributetotheimprovementofaviationsecuritymeasuresandproceduresattheairport,therepresentativesofSMATSAllcregularlyparticipatedinmeetingsoftheAirportAviationSecurityCommitteeduring2015.

AnnualReport201538


06HumanResourcesInaccordancewithfollowingthemoderntrendsinthefieldofhumanresourcesdevelopment,theworkonimproving,revisingandimplementingtheproceduresandpoliciesinthisfieldcontinuedin2015.

RepresentativesofSMATSAllcparticipatedintheregularannualmeetingofthe“FEASTUserMeetingGroup13”inordertomonitorthedevelopmentoftheselectioninstrument,exchangeofexperienceswithotherusersofthetest,analysisandinterpretationofcandidates’achievementsandimplementationofthenewsoftwareplatform.

Moreover,in2015,incooperationwiththeCivilAviationDirectorateoftheRepublicofSerbia,acourse“ATCOMedicalRequirements”wasorganizedandimplemented,withanemphasisonthepresentationoftheactivitiesandtasksofairtrafficcontrollersandtheiranalysesfromthestandpointofhumanfactor.


BSO.07.01.01

CoordinatetheactivitiesofimprovingthesystematizationofthejobsinaccordancewiththeBusinessStrategy

TheRulebookonAmendments to theRulebookontheOrganisationandsystematizationof the Jobs ofAirTrafficControlOfficers ofSerbiaandMontenegroSMATSAllcBelgrade

BSO.07.01.02 Conductananalysisofthejobsperworkplace/OU

After adopting the Catalogue of OU, tasksanalysis of jobs per workplace/OU startedand was partially performed in 2015. Thecompletion of the analysis and proposalfor amending the job description per theworkplace/OUisexpectedin2016.

BSO.07.01.03

CarryoutadetailedanalysisoftheknowledgeandskillsrequiredforthekeypositionsinbusinessdevelopmentofSMATSA llc

Theanalysisof therequiredknowledgeandskillsforalljobsinSMATSAllcstartedandwaspartiallyperformedin2015.Throughthedrafttext of the document Career management,the proposal for amendments to the criteriarequired for certain positions was done. In2016theprocessofdefiningthekeypositionsinbusinessdevelopmentofSMATSA llcwillbegin.

BSO.07.01.04

Carryoutadetailedanalysisofthepsychophysicaldemandsofthejobsandcontraindicationsforthespecifiedjob

Theanalysisofthepsychophysicaldemandsofthejobsandcontraindicationsforthespecifiedjob started and was partially performed in2015. The procedures for monitoring thepsychophysical demands of the jobs andcontraindications for the specified job will bedesignedin2016.

Table 11. Realizationofplannedactivitiesin2015inthefieldofhumanresources



BSO.07.03.01Continuouslydevelopmoreobjectivesystemsofemployeeassessmentmethodology

Theprocedure forCareermanagementwasdefined in 2015 and its implementation isexpected in2016.Aspartof theprocedure,theseformshavebeendeveloped:employeeassessmentduringthetraining,probationary,periodic (annual) assessment of employeesbyadirectsupervisor.

BSO.07.03.04Systematicallyruntheactivitiestoraisethelevelofemployeesatisfaction

InthecontextofCareermanagementproceduretheemployeeSelf-assessmentformisdeveloped,which gives the possibility to the employees toexpress their abilities and affinities in terms ofdevelopingtheircareersinSMATSAllc.

BSO.07.04.01

Establishasystemofcontinuousmonitoringofpsychophysicalconditionofaviationpersonnelfromthepointofthesecurityofairtraffic

TheprocedureHUM.PROC.004wasadopted- Monitoring of Medical Ability of Air TrafficControlOfficersandPilots.

BSO.07.04.02Establishasystemprocessofstressmanagementintheworkplace

TheprocedureforCriticalIncidentStressMan-agementwascreatedandsubmittedforopin-ion.

BSO.07.04.05 ImplementCISM

CISMprogramispartofsystemstressman-agementprocessintheworkplaceandisin-cluded in theproposal for theprocedure forCriticalIncidentStressManagement.

BSO.07.05.01

DevelopaprogramfortrainingoftheAirTrafficControlOfficersincooperationwithuniversitiesforachievingtheVIandVIIlevelofeducation

Theprocessofcooperationwith theFacultyofTransport inBelgrade in thedevelopmentof study programmes forAir Traffic ControlOfficersandPilotsstartedin2015.

BSO.07.05.02Establishasystemofcontinuouseducationandtrainingoftheemployees

A public procurement procedure to improvetheEnglish languageskillsofair trafficcon-trollersoutside theaviation terminologywasconductedin2015.Therealizationofthispro-curementisplannedfor2016.

BSO.07.05.03Establishasystemtomonitorthecontinuouseducationandtraining

Thepreparationofprocedure formonitoringthecontinuouseducationandtrainingof theemployeesstartedin2015,anditsimplemen-tationisplannedfor2016.

Table 11. Realizationofplannedactivitiesin2015inthefieldofhumanresources


6.1FluctuationsandAverageNumberofEmployeesin2015

Theaveragenumberof885employeesin2015wasslightlybelowtheplannednumber.

Month Plannednumberofemployees Actualnumberofemployees

January 875 881

February 879 882

March 885 882

April 890 882

May 891 883

June 894 886

July 895 887

August 895 886

September 893 885

October 894 885

November 895 888

December 899 888

Averagein2015 890 885

Table 12. Plannedandactualnumberofemployeesin2015

Table 13. Fluctuationsofemployeesin2015bymonth

Fluctuations I II III IV V VI VII VIII IX X XI XII Укупно

Inflow(+) 9 2 2 0 4 4 2 0 2 1 3 1 30

Outflow(-) 0 1 2 0 3 1 1 1 3 1 0 0 13


6.2EmployeeStructure

Thefollowingfiguresshowtheemployeestructureattheendof2015,accordingtogender,qualificationgroupsandage.

Figure 14. Employeestructurebygender

Figure 15. Employeestructurebyqualificationgroups

Figure 16. Employeestructurebyage

Male

Female70.88%

29.12%

I, II, III

IV, V

VII

VI + Air TrafficControl Officers

33.45%32.55%

32.88%1.13%

to 25 years

26-35

46-55

56-65

36-45

22.35%

1.24%

18.74%

29.46%28.22%


07AdditionalServices7.1CalibrationoftheGroundBasedRadioNavigationAidsfromtheAir

Thankstoadequateequipmentandcompetenthumanresources,SMATSA llc isable toprovideservicesofcalibrationofgroundbasedradionavigationaidsfromtheair,checktheflightproceduresandprovidetestingservicesrelatedtothechoiceoflocationforsettingupanewgroundbasedradionavigationaids.Forthispurpose,themodernaircraftHawkerBeechcraftKingAir350isused,withbuilt-incalibrationequipment(AD-AFIS-260),whichSMATSAllcusesforitsownneeds,butalsoprovidesservicestoexternalusers.

ProvisionofservicesiscarriedoutinaccordancewiththerequirementsandrecommendationsthathavebeendefinedinthedocumentsoftheInternationalCivilAviationOrganisation-ICAO-Annex10,Annex14andDoc8071.

Regularandnon-scheduledcalibrationsonthebasisofconcludedcontractswithCroatiaControlLtd,SloveniaControl,HungaroControl,BudapestAirport,LFV-SwedenAirTrafficControlandAgencyfor theProvisionofAirNavigationServicesinBosniaandHerzegovina(BHANSA)werecarriedoutduring2015.

Inordertokeeppacewithmoderntrendsinthisfield,inMarch2015,therepresentativesofSMATSAllcparticipatedin the43rdmeetingof theInternationalCommitteeforAirspaceStandardsandCalibration(ICASC)inToulouse,France,where the legislation, technical requirementsandcurrentstatuswerediscussed.Atthe44thmeetingofICASC,heldinBelgradefrom3rdto5thNovember,amongotherthings,preparationsweremadefortheorganisationofIFIS(InternationalFlightInspectionSymposium),whichwillbeheldinBelgradenextyear.

Explanationofadegreeofrealizationofthegoalssetfor2015withintheprovisionofservicesofcalibrationofgroundbasedradionavigationaidsisshowninthefollowingtable.


BSO03.01.01

Engageinkeepingthecurrentnumberofcalibrationofgroundbasedradionavigationaidsfromtheairusers

DegreeofrealizationisreducedbecauseofnotobtaininganinternationaltenderfortheprovisionofcalibrationservicesforaperiodoftwoyearsinMacedonia.Anumberofotherusersoftheservicesremainedunchanged.Duringtheyear,theservicetocustomerinSwedenwasprovidedseveraltimes.

Table 14. Realizationofplannedactivitiesin2015withinthecalibrationofgroundbasedradionavigationaids


7.2 ANS Personnel Training Centre

SMATSAllcANSPersonnelTrainingCentreiscertifiedcentreengagedintrainingandadvancementofairtrafficcontrolofficers,CNSpersonnelandaeronauticalMETpersonnel.TrainingprogrammesandplansareharmonisedwiththerequirementsofESARR,nationalandinternationalregulations,aswellaswithICAOstandards.

SMATSAllcTrainingCentre,besidesthetrainingforitsownneeds,provides training forexternalusers,bothorganisationsandindividuals.Inthisregard,theconceptoftrainingofself-fundingATCOclasseshasbeenintroduced.

Anew2D/3Dsimulatorwaspurchasedin2015,whichfurtherraisedthequalityandefficiencyintheprovisionoftrainingservicesintheTrainingCentre.Thetrainingofcandidateswithintheinitial,developmentandcontinuationtrainingofairtrafficcontrollerswillbeconductedonthesimulator.

Thefollowingtableshowsthemostimportanttrainingsthatwerecompletedin2015inaccordancewiththeTrainingPlaninANSPersonnelTrainingCentre.

TitleofthetrainingNumberofplanned

candidates

Numberoftrainedcandidates

Basic Training 25 25

RatingTrainingADI 15 15

Rating Training APP 3 3

RatingEndorsementTrainingTCL 12 12

RefreshertrainingOJTinstructorsandsimulatorinstructors 9 9

Table 15. Realizationofplannedactivitiesin2015withintheANSPersonnelTrainingCentre


7.3SMATSAAviationAcademy

InSMATSAAviationAcademy,in2015,thetrainingwasattendedby135candidatesinvariousstagesoftraining.Fromthebeginningoftheyear,42candidatesenrolled:15inMarchand23inSeptemberinATP(A)Integratedtrainingand4candidatesinFI(A)training.

Duringtheyearthetrainingwasfinishedbythetotalof33candidates,22ofwhomcompletedthemostdemandingtrainingATP(A).

Inordertoachievethedevelopmentgoalsandimprovethequalityofexistingtrainings,during2015contactshavebeenmadewiththeeducationalinstitutionsofhighereducation.ThecooperationwiththeFacultyofTransportandTrafficEngineering,UniversityofBelgrade,asthemostreputableinstitution,wasrealized,andtheanalysisofcompatibilityofthecurriculaisperformedwithit,inordertodefineanewcourse“Pilot-engineer”.

Also,during2015,asubstantialeffortwasmadetoimprovetheconditionsandimplementationoftraining,i.e.toupdateandrevitalizetheinfrastructure.Thecontracton thepublicprocurementofmaintenanceservicesforALSIMsimulatorwas concludedwith simulatormanufacturerALSIMSIMULATEURSSARL,France,whichensuresthehighestpossiblelevelofmaintenanceoftheflightsimulatorFNPTII.

SMATSAAviationAcademyalsoprovidestheservicesofaircraftmaintenance.Inthisregard,thecontractsfortheprovisionofserviceswithcompaniesfromGreece,SerbiaandMacedoniawereconcludedduring2015,andforsomeofthemSMATSAAviationAcademyprovidestheservicesofaircraftstorage.

Table 16. Realizationofplannedactivitiesin2015withintheSMATSAAviationAcademy

Basicprojectidentification(BSO) Basicprojecttitle Realizationofplanned

activities

BSO03.02.01To carry out a necessary analysis in order tomakeadecisiontoseparateSMATSAAviationAcademy as an independent entity fromSMATSAllcsystem

Transferofactivitiesintothenextyear.


08Consultationswith UsersofServices

SMATSA llc achieves its business goals whilerespectingtherequirementsofusersofairnavigationservices,aswellasusersofadditionalservicesitprovides.AmongusersofSMATSAllcservicesareairlinesandoperators(civilandmilitary)withintheprovisionofANSservices,airportsandair trafficcontrolswithintheserviceofcalibrationofgroundbasedradionavigationaids,individualsandgroupsinthecontextofANSpersonnelandpilotstraining,aswellascompanieswithintheaircraftmaintenanceservices.

Inadditiontoconsultationswithindividualserviceusers,SMATSA llccooperateswith internationalassociationsandorganisations in the fieldofairtransport (EUROCONTROL,CRCO, IATA, ICAO,EASA,CANSO,ICASCetc.).Throughparticipationinworkinggroups,conferencesandmeetings,SMATSA

llcconsultswithitsserviceusers,withtheaimofconstantimprovementofitsservices.

Inanefforttobecomearegionalleaderintheprovisionofairnavigation,calibrationandtrainingofaviationpersonnelservices,SMATSAllcisimplementinganumberofactivitiesaimedatimprovingthecooperationwithserviceusersandrelevantorganisationsinthesphereofaviation.

During2015,theactivitieswerecarriedout,withintheimplementationofbasicprojects,inordertoimprovethecooperationwiththeserviceusers.ThedegreeofimplementationoftheactivitiesinrelationtotheplanestablishedbytheAnnualPlanfortheyearof2015ispresentedinTable17.


BSO02.01.01

Improvethecooperationthroughestablishmentofdirect,regularconsultationsandcontactswiththeairlineswhicharethebiggestusersofairnavigationservices

In order to improve the cooperation with serviceusers,i.e.airlines,attheendof2015ananalysisofSMATSA“Top100users”wasperformed,publishedbyEUROCONTROL,inordertoestablisharegularcommunicationinthefuture.

BSO02.01.02

Improvethecooperationthroughestablishmentofdirect,regularconsultationsandcontacts(meetingsandparticipationinworkinggroups)withotherusersofairnavigationservices

In order to improve the cooperation with serviceusers, at the end of 2015, preparatory activitieswereconductedfortheimplementationoftheusersofairnavigationservicessurvey.

Table 17. Realizationofplannedactivitieswithintheimprovementofthecooperationwithrelevantorganisa-tionsinthesphereofaviationandusersofairnavigationservicesin2015


Thebest indicatorsofservicesqualityprovidedbySMATSAllcaretheresultsofcustomersatisfactionquestionnaire,whichareconductedannually.Theresultsoftestsconductedin2015showedthatSMATSAllcmeetstherequirementsofusersintermsofthelevelandqualityofallprovidedservices:

1.ReportsfromRNDSGandNMEUROCONTROLmeetingindicatethattheairlinesaresatisfiedwiththelevelandqualityofATMservicesprovidedbySMATSAllc.WithoutmentioningSMATSAllcinthereportthatisdedicatedtodelaysandunfulfilleduserexpectations,NMEUROCONTROLhighlightstheimportanceofimplementingtheFRAconcept.

2.In2015therewerenoobjectionsofusersofCNSservicesprovidedbySMATSAllc.

3.Analysis of satisfactionofMETserviceusersthroughaquestionnairereflectsthesatisfactionofthecustomerswithprovidedMETservices.

4.ByanalyzingtheAISservicecustomersatisfactionquestionnaireitwasconcluded,thattheusersratedtheprovisionofaeronauticalinformationservicesasexcellent.Outof11completedquestionnairesreceivedin2015,10questionnaireswerewithanexcellentgrade,andonewithagoodgrade.

5.Onthebasisoforalconsultationwithusersofcalibrationofgroundbasedradionavigationaidsservices,itwasconcludedthatthereisnoneedtoconductawrittencustomersatisfactionsurveyattheendoftheyear.Basedoninterviews,itwasestimatedthattheaveragerateofusersremainedunchangedcomparedtolastyearanditamountedto4.93fromamaximumof5:00.

6.Change in thestatusof theprocedure,whichrequirestheimplementationofsurveyfortheevaluationoftrainingintheANSPersonnelTrainingCentremadeitpossiblefortheuserssatisfactionscorefor2015tobedeterminedonthebasisofthefactthattherewerenoobjectionsofthetrainees.

7.Theresultsofthesurveyconductedin2015onasampleof30candidatesattendingtrainingforpilotsarepresentedinthetable.

8.Analysisofusersatisfactionwiththeserviceofaircraftmaintenanceiscarriedoutbyfillingintheappropriateform.ServiceusersratedtheservicesofMOin2015as«excellent».

Table 17. Realizationofplannedactivitieswithintheimprovementofthecooperationwithrelevantorganisa-tionsinthesphereofaviationandusersofairnavigationservicesin2015


BSO02.02.01

ImproveandmaintainthecooperationwiththeMinistriesofSerbiaandMontenegrowhoareresponsiblefortheadoptionofbusinessplans

Thebasicprojectwascancelledbecauseitinvolvesthe activities that represent a constant annualactivity.

BSO02.02.02

ImprovethecooperationwiththeCivilAviationDirectorateoftheRepublicofSerbiaandtheCivilAviationAgencyofMontenegro

Thebasicprojectwascancelledbecauseitinvolvesthe activities that represent a constant annualactivity.

BSO02.02.03

Proactivelyparticipateintheworkinggroups,conferencesandmeetingswithrelevantorganisationsandgroups,wheretheregulations,policiesorstrategiesaremade,thatmayaffecttheoperationofSMATSAllc

During2015SMATSAllcrepresentativesparticipatedin numerous working groups, conferences andmeetings with relevant organisations in order toimproveoperationsinallfields.

BSO02.02.04Establishthe“RunwaySafetyTeam”forADNikolaTeslaBeograd

“RunwaySafetyTeam”forADNikolaTeslaBeogradisestablishedon14/05/2015.


Field dissatisfied neutral satisfied verysatisfied

KnowledgebeforecomingtotheAcademy 10% 43% 33% 13%

KnowledgeaftercompletionoftheAcademy 0% 3% 43% 53%

Theoryinstructors 3% 21% 38% 38%

Teachingaidsandteachingresources 3% 33% 40% 23%

Books 3% 17% 60% 20%

Acquiredflyingskills 0% 3% 33% 63%

Flyinginstructors 0% 6% 17% 77%

Flyingtrainingorganisation 6% 27% 40% 27%

Dailyorganisation 3% 20% 67% 10%

Briefingsanddebriefings 0% 7% 60% 33%

Generalassessmentoftheoveralltraining 0% 3% 70% 27%

Table18.Satisfactionofpilottrainees


09FinancialStatements9.1IncomeStatement

ITEM AOPAmountCurrentyear

AmountPreviousyear

REVENUEFROMREGULAROPERATIONS

A.OPERATINGINCOME(1002+1009+1016+1017) 1001 10,001,482 10,103,295

I.SALESOFMERCHANDISE(1003+1004+1005+1006+1007+1008) 1002 0 0

1.Salesofmerchandisetoparentcompaniesandsubsidiaries-domestic 1003

2.Salesofmerchandisetoparentcompaniesandsubsidiaries-foreign 1004

3.Salesofmerchandisetootherassociatedlegalentities-domestic 1005

4.Salesofmerchandisetootherassociatedlegalentities-foreign 1006

5.Salesofmerchandise-domestic 1007

6.Salesofmerchandise-foreign 1008

II.SALESOFGOODSANDSERVICESRENDERED1009 9,586,995 9,792,091

(1010+1011+1012+1013+1014+1015)

1.Salesoffinishedgoodsandservicesrenderedtoparentcompaniesandsubsidiaries-domestic 1010

2.Salesoffinishedgoodsandservicesrenderedtoparentcompaniesandsubsidiaries-foreign 1011

3.Salesoffinishedgoodsandservicesrenderedtootherassociatedlegalentities-domestic 1012

4.Salesoffinishedgoodsandservicesrenderedtootherassociatedlegalentities-foreign 1013

5.Salesoffinishedgoodsandservicesrendered-domestic 1014 397,878 356,762

6.Salesoffinishedgoodsandservicesrendered-foreign 1015 9,189,117 9,435,329

III.REVENUESFROMPREMIUMS,SUBVENTIONS,GRANTSETC. 1016 585 1,352

IV.OTHEROPERATINGINCOME 1017 413,902 309,852

Table19.2015IncomeStatement,in000RSD



AmountPreviousyear

EXPENSESFROMREGULAROPERATIONS

B.OPERATINGEXPENSES1018 8,947,731 8,325,929

(1019–1020–1021+1022+1023+1024+1025+1026+1027+1028+1029)≥0

I.PURCHASECOSTOFGOODSSOLD 1019

II.INCOMEFROMACTIVATINGOWNPRODUCTSANDGOODS 1020

IIIINCREASEINVALUEOFINVENTORIESOFWORKINPROGRESSANDFINISHEDGOODSANDUNFINISHEDSERVICES 1021

IVDECREASEINVALUEOFINVENTORIESOFWORKINPROGRESSANDFINISHEDGOODSANDUNFINISHEDSERVICES 1022

V.MATERIALCOSTS 1023 91,602 61,673

VI.COSTSOFFUELANDENERGY 1024 144,983 138,348

VII.COSTOFSALARIES,FRINGEBENEFITSANDOTHERPERSONALEXPENSES 1025 5,560,053 5,183,503

VIII.COSTOFPRODUCTIONSERVICES 1026 1,114,143 1,036,732

IX.DEPRECIATIONCOSTS 1027 1,196,698 1,117,340

X.LONG-TERMPROVISIONCOSTS 1028 108,595 120,012

XI.INTANGIBLECOSTS 1029 731,657 668,321

C.OPERATINGPROFIT(1001–1018)≥0 1030 1,053,751 1,777,366

D.OPERATINGLOSS(1018–1001)≥0 1031

E.FINANCIALINCOME(1033+1038+1039) 1032 110,335 355,050

I.FINANCIALREVENUESFROMASSOCIATEDLEGALENTITIESANDOTHERFINANCIALREVENUES(1034+1035+1036+1037) 1033 0 0

1.Financialrevenuesfromparentanddependentlegalentities 1034

2.Financialrevenuesfromotherrelatedlegalentities 1035

3.Revenuesfromparticipationinprofitofassociatedlegalentitiesandjointventures 1036

4.Otherfinancialrevenues 1037

II.INTERESTRECEIVABLES 1038 22,327 23,694

IIIPOSITIVEEFFECTSONEXCHANGERATEANDEFFECTSOFFOREIGNCURRENCYCLAUSE(TOTHIRDPARTIES) 1039 88,008 331,356




AmountPreviousyear

F.FINANCIALEXPENSES(1041+1046+1047) 1040 186,485 538,926

IFINANCIALEXPENSESINCURREDWITHASSOCIATEDLEGALENTITIESANDOTHERFINANCIALEXPENSES(1042+1043+1044+1045) 1041 0 0

1.Financialexpensesincurredwithparentanddependentlegalentities 1042

2.Financialexpensesincurredwithotherrelatedlegalentities 1043

3.Expensesfromparticipationinlossofassociatedlegalentitiesandjointventures 1044

4.Otherfinancialexpenses 1045

II.INTERESTEXPENSES(TOTHIRDPARTIES) 1046 114,484 142,018

III.NEGATIVEEFFECTSONEXCHANGERATEANDEFFECTSOFFOREIGNCURRENCYCLAUSE(TOTHIRDPARTIES) 1047 72,001 396,908

G.PROFITFROMFINANCING(1032-1040) 1048

H.LOSSFROMFINANCING(1040-1032) 1049 76,150 183,876

I.INCOMEONOTHERPROPERTYVALUERECONCILIATIONSHOWNATFAIRVALUEINTHEINCOMESTATEMENT 1050 150,179 723,462

J.EXPENSESONOTHERPROPERTYVALUERECONCILIATIONSHOWNATFAIRVALUEINTHEINCOMESTATEMENT 1051 165,842 301,955

K.OTHERINCOMES 1052 54,272 36,718

L.OTHEREXPENSES 1053 621,514 243,370

M.PROFITFROMREGULARBUSINESSOPERATIONSBEFORETAX(1030-1031+1048-1049+1050-1051+1052-1053) 1054 394,696 1,808,345

N.LOSSESFROMREGULARBUSINESSOPERATIONSBEFORETAX(1031-1030+1049-1048+1051-1050+1053-1052) 1055

O.NETPROFITFROMBREAKOPERATIONS,EFFECTSOFCHANGESINACCOUNTINGPOLICIESANDCORRECTIONSOFERRORSFROMPREVIOUSPERIODS

1056

P.NETLOSSFROMBREAKOPERATIONS,EFFECTSOFCHANGESINACCOUNTINGPOLICIESANDCORRECTIONSOFERRORSFROMPREVIOUSPERIODS

1057

Q.PROFITBEFORETAX(1054-1055+1056-1057) 1058 394,696 1,808,345

R.LOSSESBEFORETAX(1055-1054+1057-1056) 1059




AmountPreviousyear

S.TAXONPROFIT

I.TAXEXPENSESOFTHEPERIOD 1060 197,130 347,180

II.DEFERREDTAXEXPENSESOFAPERIOD 1061 37,151

III.DEFERREDTAXREVENUEOFAPERIOD 1062 22,852

T.PERSONALEARNINGSPAIDTOEMPLOYER 1063

U.NETPROFIT1064 220,418 1,424,014

(1058–1059–1060–1061+1062)

V. NET LOSS 1065

(1059–1058+1060+1061–1062)

I.NETPROFITOFMINORITYSHAREHOLDERS 1066

II.NETPROFITOFMAJORITYOWNER 1067

III.EARNINGSPERSHARE

1.Basicearningspershare 1068

2.Reduced(diluted)earningspershare 1069

AnnualReport201552



9.2BalanceSheet


AmountPreviousyear

ASSETS

A.SUBSCRIBEDCAPITALUNPAID 0001

B.FIXEDASSETS(0003+0010+0019+0024+0034) 0002 12,329,351 13,822,829

I.INTANGIBLEASSETS(0004+0005+0006+0007+0008+0009) 0003 27,775 25,275

1.Investmentsindevelopment 0004

2.Concessions,patents,licenses,trademarksandservicemarks,softwareandotherrights 0005 25,484 24,199

3.Goodwill 0006

4.Otherintangibleassets 0007

5.Intangibleassetsinprogress 0008 2,291 1,076

6.Prepaymentsforintangibleassets 0009

II.PROPERTY,PLANTANDEQUIPMENT0010 12,299,727 13,795,705

(0011+0012+0013+0014+0015+0016+0017+0018)

1. Land 0011 548,314 548,314

2. Buildings 0012 5,314,671 5,405,273

3.Plantandequipment 0013 5,996,681 7,262,490

4.Investmentproperty 0014

5.Otherproperty,plantandequipment 0015 4,284 4,509

6.Property,plantandequipmentinprogress 0016 357,356 445,438

7.Investmentsinotherentity’sproperty,plantandequipment 0017 2,240 3,308

8.Prepaymentsforproperty,plantandequipment 0018 76,181 126,373

III.BIOLOGICALASSETS(0020+0021+0022+0023) 0019 1,849 1,849

1.Forestsandplantations 0020 1,849 1,849

2.Livestock 0021

3.Biologicalassetsinprogress 0022

4.Prepaymentsforbiologicalassets 0023

IVLONGTERMFINANCIALINVESTMENTS(0025+0026+0027+0028+0029+0030+0031+0032+0033) 0024 0 0

1.Investmentsinaffiliatedcompanies 0025

2.Investmentsinassociatedcompaniesandjointventures 0026

3.Investmentsinotherthirdpartiescompaniesandothersecurities 0027

Table 20. 2015Assets,in000RSD



AmountPreviousyear

4.Longterminvestmentsinparentandaffiliatedcompanies 0028

5.Longterminvestmentsinotherthirdpartiescompanies 0029

6.Longterminvestments,domestic 0030

7.Longterminvestments,foreigncountries 0031

8.Securitiesheldtomaturity 0032

9.Otherlongtermfinancialinvestments 0033

V.LONGTERMRECEIVABLES(0035+0036+0037+0038+0039+0040+0041) 0034 0 0

1.Receivablesfromparentcompanyandaffiliatedcompanies 0035

2.Receivablesfromotherthirdpartiescompanies 0036

3.Receivablesfromcreditsales 0037

4.Receivablesfromfinancialleasingcontracts 0038

5.Receivablesfrompledgedassets 0039

6.Baddebtsanduncollectibleclaims 0040

7.Otherlongtermreceivables 0041

C.DEFERREDTAXASSETS 0042

D.CURRENTASSETS0043 5,105,927 4,681,223

(0044+0051+0059+0060+0061+0062+0068+0069+0070)

I.INVENTORIES(0045+0046+0047+0048+0049+0050) 0044 146,275 162,004

1.Material,spareparts,toolsandsmallinventories 0045 138,060 161,172

2.Workandservicesinprogress 0046

3.Finishedproducts 0047

4. Goods 0048

5.Fixedassetsforsale 0049

6.Prepaymentsforinventoriesandservices 0050 8,215 832

IIRECEIVABLESFROMSALES0051 1,001,567 1,559,225

(0052+0053+0054+0055+0056+0057+0058)

1.Domestictradereceivables-parentcompanyandsubsidiaries 0052

2.Foreigntradereceivables-parentcompanyandsubsidiaries 0053

3.Domestictradereceivables-otheraffiliatedcompanies 0054

4.Foreigntradereceivables-otheraffiliatedcompanies 0055

5.Domestictradereceivables 0056 31,614 383,187

6.Foreigntradereceivables 0057 969,953 1,176,038

7.Otherreceivablesfromsales 0058

IIIRECEIVABLESFROMSPECIFICBUSINESSOPERATIONS 0059




AmountPreviousyear

IVOTHERRECEIVABLES 0060 203,083 41,235

V.FINANCIALASSETSASSESSEDATFAIRVALUEINTHEINCOMESTATEMENT 0061

VISHORTTERMFINANCIALINVESTMENTS0062 0 0

(0063+0064+0065+0066+0067)

1.Shorttermloansandinvestments-parentcompanyandsubsidiaries 0063

2.Shorttermloansandinvestments-otheraffiliatedcompanies 0064

3.Shorttermcreditsandloans,domestic 0065

4.Shorttermcreditsandloans,foreigncountries 0066

5.Othershorttermfinancialinvestments 0067

VII.CASHANDCASHEQUIVALENTS 0068 3,638,462 2,857,298

VIII.VALUEADDEDTAX 0069 68,887 32,699

IX.PREPAYMENTSANDACCRUEDINCOME 0070 47,653 28,762

E.TOTALASSETS=OPERATINGASSETS(0001+0002+0042+0043) 0071 17,435,278 18,504,052

F.OFF-BALANCESHEETASSET 0072 204,934 136,253


AnnualReport2015 55



AmountPreviousyear

A.EQUITY(0402+0411–0412+0413+0414+0415–0416+0417+0420–0421)≥0=(0071–0424–0441–0442) 401 12,226,886 11,993,592

I.INITIALCAPITAL402 1,873,820 1,873,820

(0403+0404+0405+0406+0407+0408+0409+0410)

1.Sharecapital 403

2.Stakesinlimitedliabilitycompanies 404 355 355

3.Stakes 405

4.Stateownedcapital 406 1,862,848 1,862,848

5.Sociallyownedcapital 407

6.Cooperativestakes 408

7.Issuingpremiums 409

8.Otherinitialcapital 410 10,617 10,617

II.SUBSCRIBEDCAPITALUNPAID 411

III.SHARESBUYBACK 412

IV.RESERVES 413 507,044 507,044

V.REVALUATIONRESERVESFROMREVALUATIONOFINTANGIBLESASSETS,PROPERTIES,PLANTANDEQUIPMENT 414 3,179,315 3,384,470

VI.UNREALISEDGAINSFROMSECURITIESANDOTHERCOMPONENTSOFOTHERCOMPREHENSIVERESULT 415 13,132 17,965

VII.UNREALISEDLOSSESFROMSECURITIESANDOTHERCOMPONENTSOFOTHERCOMPREHENSIVERESULT 416

VIII.RETAINEDEARNINGS417 6,653,575 6,210,293

(0418+0419)

1.Retainedearningsfrompreviousyears 418 6,210,293 4,778,395

2.Retainedearningsfromcurrentyear 419 443,282 1,431,898

IX.NON-CONTROLLINGINTEREST 420

X.LOSSES(0422+0423) 421 0 0

1.Lossesfrompreviousyears 422

2.Lossesfromcurrentyear 423

B.LONGTERMPROVISIONSANDLIABILITIES(0425+0432) 424 2,943,325 4,033,860

I.LONGTERMPROVISIONS425 692,151 625,134

(0426+0427+0428+0429+0430+0431)

1.Provisionsforwarrantyperiodcosts 426

2.Provisionsforrecoveryofnaturalresources 427

3.Provisionsforrestructuringcosts 428

4.Provisionsforwagesandotheremployeebenefits 429 660,768 602,893

5.Provisionsforlegalexpenses 430 31,383 22,241

Table 21. 2015Liabilities,in000RSD




AmountPreviousyear

6.Otherlongtermprovisions 431

IILONGTERMLIABILITIES432 2,251,174 3,408,726

(0433+0434+0435+0436+0437+0438+0439+0440)

1.Liabilitiesconvertibleintocapital 433

2.Liabilitiestoparentcompanyandsubsidiaries 434

3.Liabilitiestootheraffiliatedcompanies 435

4.Liabilitiesforissuedsecuritiesformorethanoneyear 436

5.Longtermcreditsandloans,domestic 437

6.Longtermcreditsandloans,foreigncountries 438 2,251,174 3,408,726

7.Longtermliabilitiesfromfinancialleasing 439

8.Otherlongtermliabilities 440

C.DEFERREDTAXLIABILITIES 441 565,197 610,908

D.SHORTTERMLIABILITIES442 1,699,870 1,865,692

(0443+0450+0451+0459+0460+0461+0462)

I.SHORTTERMFINANCIALLIABILITIES443 1,201,618 1,140,354

(0444+0445+0446+0447+0448+0449)

1.Shorttermloansfromparentcompanyandsubsidiaries 444

2.Shorttermloansfromotheraffiliatedcompanies 445

3.Shorttermcreditsandloans,domestic 446

4.Shorttermcreditsandloans,foreigncountries 447

5.Liabilitiesfromfixedassetsandassetsfromdiscontinuedoperationsavailableforsale 448

6.Othershorttermfinancialliabilities 449 1,201,618 1,140,354

II.RECEIVEDADVANCES,DEPOSITSANDBONDS 450 113,980 140,865

III.OPERATINGLIABILITIES(0452+0453+0454+0455+0456+0457+0458) 451 315,185 296,155

1.Suppliers-parentcompanyandsubsidiaries,local 452

2.Suppliers-parentcompanyandsubsidiaries,foreigncountries 453

3.Suppliers-otheraffiliatedcompanies,local 454

4.Suppliers-otheraffiliatedcompanies,foreigncountries 455

5.Suppliers,local 456 116,345 183,909

6.Suppliers,abroad 457 198,725 112,131

7.Otheroperatingliabilities 458 115 115

IV.OTHERSHORTTERMLIABILITIES 459 22,742 119,374

V.LIABILITIESFORVALUEADDEDTAX 460

VI.LIABILITIESFOROTHERTAXES,CONTRIBUTIONSANDFEESPAYABLE 461 30,845 166,321



AmountPreviousyear

VII.ACCRUEDEXPENSESANDDEFERREDINCOME 462 15,500 2,623

E.LOSSESEXCEEDINGCAPITAL(0412+0416+0421–0420–0417–0415–0414–0413–0411–0402)≥0=(0441+0424+0442–0071)≥0 463

F.TOTALLIABILITIES(0424+0442+0441+0401–0463)≥0 464 17,435,278 18,504,052

G.OFF-BALANCELIABILITIES 465 204,934 136,253

9.3CashFlowStatement


AmountPreviousyear

A.CASHFLOWFROMOPERATINGACTIVITIES3001 10,923,495 10,664,579

ICashinflowsfromoperatingactivities(1-3)

1.Salesandreceivedadvances 3002 10,093,928 10,001,136

2.Interestreceivedfromoperatingactivities 3003 22,327 23,694

3.Otherinflowsfromordinaryoperations 3004 807,240 639,749

II.Cashoutflowsfromoperatingactivities(1-5) 3005 9,317,064 8,098,993

1.Paymentstosuppliersandadvancepayments 3006 2,843,732 2,322,547

2.Salaries,wagesandotherpersonalexpenses 3007 5,769,664 5,284,427

3.Interestspaid 3008 217,111 142,018

4.Incometax 3009 486,557 350,001

5.Paymentsofotherpublicrevenues 3010

III.Netcashinflowfromoperatingactivities(I-II) 3011 1,606,431 2,565,586

IV.Netcashoutflowfromoperatingactivities(II-I) 3012

B.CASHFLOWSFROMINVESTINGACTIVITIES3013 1,094,757 -

I.Cashinflowsfrominvestingactivities(1-5)

1.Saleofsharesandstocks(netinflows) 3014

2.Saleofintangibleassets,properties,plant,equipmentandbiologicalassets 3015 1,094,757

3.Otherfinancialinvestments(netinflows) 3016

4.Interestsreceivedfrominvestingactivities 3017

5.Dividendsreceived 3018

II.Cashoutflowsfrominvestingactivities(1to3) 3019 809,609 783,426

1.Purchaseofsharesandstocks(netoutflows) 3020


Table 22. 2015CashFlowStatement,in000RSD


Table 22. 2015CashFlowStatement,in000RSD


AmountPreviousyear

2.Purchaseofintangibleassets,properties,plant,equipmentandbiologicalassets 3021 809,609 783,426

3.Otherfinancialinvestments(netoutflows) 3022

III.Netcashinflowfrominvestingactivities(I-II) 3023 285,148

IV.Netcashoutflowfrominvestingactivities(II-I) 3024 783,426

C.CASHFLOWSFROMFINANCINGACTIVITIES3025 - -

I.Cashinflowsfromfinancingactivities(1to5)

1.Initialcapitalincrease 3026

2.Longtermloans(netinflows) 3027

3.Shorttermloans(netinflows) 3028

4.Otherlongtermliabilities 3029

5.Othershorttermliabilities 3030

II.Cashoutflowsfromfinancingactivities(1to6) 3031 1,113,317 992,551

1.Repurchaseofownsharesandstocks 3032

2.Longtermloans(outflows) 3033 1,113,317 992,551

3.Shorttermloans(outflows) 3034

4.Otherliabilities(outflows) 3035

5.Financialleasing 3036

6.Dividendspaid 3037

III.Netcashinflowfromfinancingactivities(I-II) 3038

IV.Netcashoutflowfromfinancingactivities(II-I) 3039 1,113,317 992,551

D.TOTALCASHINFLOW(3001+3013+3025) 3040 12,018,252 10,664,579

E.TOTALCASHOUTFLOW(3005+3019+3031) 3041 11,239,990 9,874,970

F.NETCASHINFLOW(3040–3041) 3042 778,262 789,609

G.NETCASHOUTFLOW(3041–3040) 3043

H.CASHBALANCEATBEGINNINGOFACCOUNTINGPERIOD 3044 2,857,298 1,927,235

I.FOREIGNEXCHANGEDIFFERENCEFROMCONVERSIONOFCASH 3045 10,233 202,310

J.FOREIGNEXCHANGELOSSESFROMCONVERSIONOFCASH 3046 7,331 61,856

K.CASHBALANCEATTHEENDOFACCOUNTINGPERIOD3047 3,638,462 2,857,298

(3042–3043+3044+3045–3046)


9.4NotestoFinancialStatements

9.4.1 Basis for Preparation of Financial Statements

Financialstatementsfor2015werepreparedinamannerandinaccordancewiththelegalregulations.

LegalentitiesandentrepreneursintheRepublicofSerbiahavetheobligationtokeepbusinessrecords,recogniseandevaluateassetsandliabilities,revenuesandexpenses,andtoprepare,present,submitanddisclosefinancialstatements, inaccordancewiththeAccountingandAuditingLaw(“OfficialGazetteoftheRS”,No.62/2013),aswellasinaccordancewithotherapplicablebylaws.SMATSAllc,beingalargelegalentity,isrequiredtoapplyInternationalFinancialReportingStandards (IFRS),which, intermsofthementionedlaw,comprise:FrameworkforPreparationandPresentationofFinancialStatements(“Framework“),InternationalAccountingStandards(IAS),InternationalFinancialReportingStandards(IFRS)and therelated Interpretations, issuedbytheInternationalFinancialReportingInterpretationsCommittee(IFRIC),additionalamendmentstothosestandardsandtherelatedInterpretations,approvedby the InternationalAccountingStandardsBoard(“Board“),whichweretranslatedandpublishedbytheministryresponsibleforfinancialaffairs.

ByvirtueoftheDecisionoftheMinistry,dated13thMarch,2014,published in theOfficialGazetteoftheRSNo.35,dated27thMarch2014,(hereinafter“TheDecisiononAdoptionof theTranslations”)the translationsof themain textsof the IASandtheIFRS,theConceptualFrameworkforFinancialReporting(“ConceptualFramework“),adoptedbytheBoard,andoftherelatedIFRICInterpretations,wereapprovedandpublished.Thetranslationsmentionedabove,publishedintheDecisiononAdoptionoftheTranslations,donotincludebasisforclosing,illustrativeexamples,guidelines,comments,opposingopinions,elaboratedexamples,oranyothersupplementaryexplanatorymaterial whichmay be adopted inconnectionwiththestandards,ortheinterpretations,exceptifnotexplicitlybeingstatedthatsuchmaterialisaconstituentpartofthestandard,ortheinterpretation.OnthebasisoftheDecisionontheAdoptionoftheTranslations,theConceptualFramework,IAS,IFRS,IFRICandtherelatedInterpretations,whichweretranslated,havebeenappliedsincethepreparationofthefinancialstatementsasof31stDecember,2014.IFRSsandInterpretationsoftheStandardsamendedorissuedafterthisdatehavenotbeentranslatedandpublished,andthereforetheyarenotappliedinthepreparationofthesefinancialstatements.

However,until thedateof thepreparationof thepresentedfinancialstatements,notallamendmentsoftheIAS/IFRSandIFRICInterpretations,inforcesince1stJanuary,2014,hadbeentranslated.Apartfromthat,certainlegalactsandbylawsprescribeaccountingprocedures,evaluationsanddisclosingmethodswhich, in some cases, do not complywiththerequirementsof theIAS/IFRSandIFRICInterpretations.

Apartfromthis,theattachedfinancialstatementsdeviatefromIASandIFRSinthefollowing:

•The”Off-balancesheetequityandliabilities”areshowninthebalancesheetform.AccordingtoIFRSdefinition,theheretoitemsrepresentneitherequitynorliabilities.

•SMATSAllcpreparedthesefinancialstatementsin the form prescribed by the Ministry ofFinance,which isnot incompliancewith theIAS1 requirements - ’’FinancialStatementsPresentation“.

FinancialStatementshavebeenpreparedunderhistoricalcostprinciple,modifiedbyrevaluationofproperty,plantandequipmentandfinancialassetsandliabilities,whereeffectsofchangesinfairvaluesaredisclosedintheincomestatement.

SMATSAllchaspreparedtheseFinancialStatementsbyapplyingacceptedaccountingpolicies.

SMATSA llc financial statements are shown inthousandsofDinars(RSD)pursuanttotheAccountingandAuditing Law. Dinar represents the officialreportingcurrencyintheRepublicofSerbia.

ThepreparationofFinancialStatementsfor2015ofAirTrafficControlofSerbiaandMontenegroSMATSAllcBelgrade,fortheaccountingperiodendingon31stDecember,2015,wascarriedout,inallmateriallysignificantrespects,inaccordancewiththeAccountingandAuditingLaw(“TheOfficialGazetteoftheRS”,No.62/2013)whichimpliesusingInternationalAccountingStandards(IAS),aswellasInternationalFinancialReportingStandards(IFRS),andinaccordancewiththeregulationsissuedbytheMinistryofFinanceoftheRepublicofSerbia.

TheDecisionmadebytheMinistryofFinanceoftheRepublicofSerbia(number401-00-380/2010from25thOctober,2010)determinedandpublished

AnnualReport201560


9.4.2 Summary of Significant Accounting Policies

theFrameworkandtranslationoftheIAS,andtheywereineffecton31stDecember,2014,onwhichtheAccountingandAuditingLawisbasedon.SMATSAllcmanagementestimatestheimpactofchangesinIAS,newlyissuedIFRS,andtheInterpretationsofStandardsonconsolidatedfinancialstatements.AmendmentstoexistingIASs,newlyissuedIFRSsandInterpretationsofStandards,thereplacementofcurrentIASswithnewones,whichwentintoeffecton1stJanuary,2014,aswellasadoptionofnewinterpretationswhichwentineffectduring2014,havenotsignificantlychangedtheSMATSAllcaccountingpolicies,norhadanysignificantmaterialinfluenceonthefinancialstatementsintheperiodoftheirinitialadoption.SincethemajorityofthesechangesarenotapplicabletotheSMATSAllcoperations,SMATSAllcmanagementdoesnotexpressanyexplicitorunreservedstatementontheharmonisationoftheFinancialStatementswithIFRS,appliedintheperioddisclosedinsubmittedFinancialStatements.

AuditofSMATSAllcFinancialStatementsfor2014wascarriedoutby“MooreStephensAuditingandAccounting”Ltd.,thecompanyforauditing,accountingandconsulting,Studentskitrg4/V,Belgrade.AccordingtotheIndependentAuditor’sReport,theFinancialStatementsgive,inallmaterialrespects,trueandfairviewofthefinancialpositionofSMATSAllcas

at31/12/2014,aswellastheresultofitsbusinessoperationsanditscashflowsfortheyearthenended,allinaccordancewiththeaccountingregulationsineffectintheRepublicofSerbiaandaccountingpoliciesdisclosedintheNotestoFinancialStatements.

InaccordancewiththeprovisionsofArticle34oftheLawonAccountingandAuditing,theFinancialStatements for 2014, together with the “MooreStephensAuditingandAccounting”Ltd.IndependentAuditor’sReport,SMATSAllcAssemblyDecisionontheAdoptionoftheFinancialStatementsfor2014,SMATSAllcAssemblyDecisionontheDistributionoftheProfitfromtheRetainedEarningsandtheAnnualReport for 2014,weresubmitted to theSerbianBusinessRegistersAgencyforpublicationonthewebsiteoftheRegisterofFinancialStatements.

The preparation of the Financial Statements inconformitywith IFRS requires theapplicationofcertaincriticalaccountingestimates.ItalsorequirestheManagementtoexerciseitsjudgmentinapplyingtheSMATSAllcaccountingpolicies.

ErrorsfromthepreviousyearsarenotreflectedintheFinancialStatementsfor2015,buttheywererecordedingroups57and67respectively in theFinancialStatementsfor2015.

9.4.2.1 IntangibleAssets

Anintangibleassetisanidentifiablenon-monetaryassetwithoutphysicalsubstance:

•held foruse in theproductionorsupplyofgoodsorservices, for rental toothersor foradministrativepurposes;

•controlledbySMATSAllcasaresultofpasteventsand

•fromwhichthefutureeconomicbenefitsareexpectedtoflowtotheentity.

Intangibleassetsinclude:developmentinvestments,concessions,patents,licencesandsimilarrights;otherintangibleassets;intangibleassetsinpreparationandprepaymentsforintangibleassets.

Theacquisitionofintangibleassetsduringtheyearisrecordedatcostvalue.Thecostvaluecomprisesinvoicevalueplusalldependentpurchasecostsandallcostsofbringingtheassettoitsworkingcondition

for its intendeduse.Thecostpriceof internallygeneratedintangibleassetscomprisesdirectcostsandtheassociatedindirectcosts,pertainingtotheparticularasset.

Borrowingcostsincurreduntilthetimeoftheintangibleassetbeingputintouse,arecapitalised,thatis,areincludedinthecostvalue.

After the initial recognition, an intangible assetiscarriedatitscostvalueoratitscostpricelessthe accumulated amortisation andaccumulatedimpairmentlosses.

An intangibleasset is recognisedand issubjecttoamortisation if itmeets therecognitioncriteriaprescribedbytherevisedIAS38,IntangibleAssets,andhasausefullifethatexceedstheperiodofoneyear.

Anyadditionalcostassociatedtoanalreadyrecognisedintangibleasset,iscreditedtothepresentedamountoftheasset,iftheinflowofthefutureeconomicbenefitsislikelytobelargerthantheinitiallyestimatedrateofreturnoftheasset.

AnnualReport2015 61


SMATSAllcrecognisesthatcarryingvalueofanitemofintangibleassetwillincludethecostsofreplacingthepartofsuchanitemwhenthatcostsareincurrediftherecognitioncriteriaprescribedbytheIAS38–”IntangibleAssets“,(Paragraph21),aremet.

Anyotheradditionalcostisrecognisedastheexpensefortheperiodwhenitwasincurred.

Ifthereareindicatorssuggestingthattherehasbeenareductioninthevalue,thecarryingvalueofintangibleassetsiscalculatedand,ifitisdeterminedthattherehasbeenareduction,thevalueoftheassetisreducedtoitsrecoverableamount.

Gainsorlossesarisingfromwritingoffordisposalarecalculatedasthedifferencebetweentheestimatednetsalesrevenuesandthepresentedamountoftheasset,andarerecognisedasRevenuesorExpensesintheIncomeStatement.

Impairmentof intangibleassets is recognisedbyreducingthevalueofinvestmentswhilerecognisingtheexpensesintheIncomeStatementinaccordancewithIAS36–ImpairmentofAssets.

Ifthereareindicatorssuggestingthattherehasbeenareductioninvalue,carryingvalueofintangibleassetsiscalculatedand,ifitisdeterminedthattherehasbeenareduction,thevalueoftheassetisreducedtoitsrecoverableamount.

Theresidualvalueofanintangibleassetisassumedtobezero,unless:

• there is a commitment of a third party topurchasetheassetattheendofitsremainingusefullife,or

•thereisanactivemarketfortheasset,andtheresidualvaluecanbedeterminedbyreferencetothatmarket,anditisprobablethatsuchamarketwillexistattheendoftheusefullifeoftheasset.

Intangibleassetssubjecttoamortisationareamortisedusingthestraight-linemethodoverthecourseoffiveyears,exceptforassetswhoselifeisdeterminedbyacontract,inwhichcasetheyarewrittenoffwithinthetermsspecifiedinthecontract.Theamortisationofanintangibleassetiscalculatedasofthebeginningofthemonthfollowingthemonththattheintangibleassetwasputintouse.Thebasisoftheamortisationcalculationisthecostvaluelesstheaccumulatedamortisationandtotallossduetoimpairment.

Amortisationratespertainingtointangibleassetscanbealteredandamendedonlyuponanorderinthewrittenformissuedbyacompetentdepartment,withtheapprovalgivenbytheCNSDirectorandwiththeconsentoftheSMATSAllcCEO,aswellasupontheacceptedindependentassessor’sreport.

IntangibleassetsortherightofuseunderalicensingagreementareaccountedforinaccordancewiththeIAS38.Licensingagreementregulatestherightofusewhichisbeinggrantedbythelicensorandthelicensee’sobligations.Thecompensationthatthelicenseepaysis regardedby the licenseeasan intangibleasset

(providedthattherightwhichisthesubjectmatterofthecontractisusedlongerthanoneyear).

Costswhichcanbedirectlyattributedtosoftwarearecapitalisedaspartofasoftwareproduct.Otherdevelopmentcostswhichcannotmeetthecriteriaarerecognisedasexpenseswhentheyarise.

An intangibleasset isno longerpresented in thebalancesheetafteritsdisposaloraftertheassethaspermanentlybeentakenoutofservice,andwhennofutureeconomicbenefitsareexpectedfromitsdisposal.

Item AmortisationRate

Licences 14.28-100

Licensedsoftware 10-100

Projectdocumentation 20

Table 23. Baseamortisationratesforcertainintangibleassets


9.4.2.2 Property,PlantandEquipment

Tangibleassetsarerecognisedasproperty,plantandequipmentandaresubjecttodepreciationiftheymeettherecognitioncriteriaprescribedbytheIAS16Property,PlantandEquipment,andhaveusefullivesthatexceedaperiodofoneyear.Anitemofproperty,plantandequipmentthatmeetsthefixedassetrecognitioncriteriaisinitiallymeasuredatcostvalueoratcostprice.Anyadditionalcostassociatedtoalreadyrecognisedproperty,plantandequipmentiscreditedtothepresentedamountoftheassetiftheinflowofthefutureeconomicbenefitsislikelytobelargerthantheinitiallyestimatedrateofreturnoftheasset.Anyotheradditionalcostisrecognisedasexpensefortheperiodwhenitwasincurred.

Additional costsofpossiblysignificant value,whichcomprisemainlylabourcosts,costsofoperatingsuppliesandcostsofminorspareparts,arepresentedascostsofcurrentmaintenance.Replacingofmajorspareparts,whoseshelflivesareshorterthanoneyear,ispresentedasmaintenancecost,becausesuchsparepartdoesnotmeettheassetrecognitioncriteria.

Consideringthefactthattheconstituentpartsofbuildingstructuresmayneedtobereplacedpriortotheexpiryofthelifetimeofabuildingasawhole,Paragraph13oftherevisedIAS16allowstheentitytorecognisetheassetwhichisreplacedasaseparateassetifitmeetstwobasic

conditionsprescribedbytheParagraph7ofthisstandard(а)– it isprobable that the futureeconomicbenefitsassociatedwiththeassetwillflowtotheentity,and(b)–thecostvalue,orthecostpriceoftheassetcanbemeasuredreliably.Therecognitionisdoneatthetimewhenthereplacementcostsareincurred,whilethecarryingvalueofthepartswhicharereplacedisderecognised,nomatterwhetherthereplacedparthasbeendepreciatedornot.Ifitisnotappropriatetodeterminethecarryingvalueofthereplacedpart,Paragraph70oftherevisedIAS16stipulatesthatthereplacementcostscanbeusedastheinformationontheamountofthecostsofthereplacedpartatthetimeofitspurchaseorconstruction.

Ifthepartwhichisreplacedisnotrecordedasaseparateitemofasset,andhasalifewhichisdifferentfromthelifeofanasset,andifthecarryingvalueisdeterminedbyusingthereplacementmethod,thewritten-offvalue(ofaccrueddepreciation)isdeterminedbyapplyingtherateusedfordepreciationoftheassetcomprisingthatpart,andnotbyapplyingtheratearisingfromthelifeofthepartwhichisreplaced.

Property,plantandequipmentaredepreciatedusingthestraight-linemethod,asofthedateoftheassetbeingmadeavailableforuse.

Thebasedepreciation rates forparticulargroupsofproperty,plantandequipmentaregiveninthefollowingtable:

Calculationofdepreciationfortaxpurposesisdoneinaccordancewith theCorporateIncomeTaxLawof theRepublicofSerbia,and theRegulationsontheClassificationofFixedAssetsandtheMethodofDeterminingDepreciation forTaxPurposes,whichresultsindeferredtaxes.

Investments inotherentity`scapitalassets for thepurpose of performing business operations are

recognisedandpresentedinadifferentaccountascapitalassetsprovidedtheirusefullivesarelongerthanoneyear.

Investmentsinotherentity’sfixedassetsareamortisedbasedontheirestimatedutilisationlives.

Property,plantandequipmentarenotaccountedintothebalancesheetaftertheirdisposalorwhentheasset

Table 24. Basedepreciationratesforproperty,plantandequipment

Item 2015DepreciationRate 2014DepreciationRate

Buildings 0.24-50% 0.24-50%

Equipment 5.56-50% 5.56-50%

Vehicles 10-50% 16.67-50%

Computerequipment 14.28-50% 14.28-50%

Furniture 10-50% 10-50%

Otherequipment 4-50% 5.56-50%

Aircraft 2.86-12.50% 2.86-12.50%

Investmentsinotherentity’sequipment 6.66-20% 6.66-20%


ispermanentlywithdrawnfromuseandwhennofurthereconomicbenefitisexpectedfromitsdisposal.

Gainsorlossesarisingfromwritingoffordisposalofproperty,plantandequipment,arecalculatedasthedifferencebetweentheestimatednetsalesrevenuesand thepresentedamountof theassets,andarerecognisedasRevenuesorExpensesintheIncomeStatement.

Whenrevaluedassetsaresold,therevaluationamountincludedintherevaluationreserveistransferredtoretainedearnings.

Property,plantandequipmentwhicharewithdrawnfromactiveuseandwhichareheldfordisposal,arepresentedintheamountsaspresentedonthedateoftheassetbeingwithdrawnfromactiveuse.

Onthedateofissueofeachbalancesheet,SMATSAllcassesseswhetherthereisanyindicationthattheassetmayhavebeenimpaired.Ifanysuchindicationexists,SMATSAllcassessestheamountoftheassetthatcanberecovered.Iftherecoverableamountoftheassetislowerthanitscarryingvalue,thecarryingvalueisreducedtorecoverableamountandpreviouslyestablishedrevaluationreservespertainingtothatassetareconsequentlyreduced.Ifnorevaluationreservespertainingtotheassetwhosevalueisreducedhavebeenestablished,orifsuchreserveshavebeenusedforotherpurposes,impairmentlossisrecognizedastheexpenseoftheperiod.

If,onthebalancesheetdate,thereareanyindicationsthatthepreviouslyrecognisedimpairmentlossdoesnotexistorthatithasbeenreduced,theassessmentoftherecoverableamountofthatassetismade.Theimpairmentlossrecognisedinthepreviousyearsisrecognisedasrevenue,incasewhenthebasicmethodofmeasuringproperty,plantandequipmentisapplied,thatisasincreaseinrevaluationreserveifthealternativemethodofevaluationofproperty,plantandequipmentisapplied,andthecarryingvalueisincreasedtotherecoverableamount.

Theassessmentsofthefairvalueandtheremainingvalueof theasset (aswell as residual value)areperformedbyanauthorisedassessor,inaccordancewiththeIAS16–Property,PlantandEquipment,withtheassessmentresultsbeingrecordedunderrevenuesorexpenses.

Anyadditionalcostassociatedtoanalreadyrecogniseditemofproperty,plantandequipment,iscreditedtothepresentedamountoftheasset,ifitislikelythattheinflowofthefutureeconomicbenefitswillbelargerthantheinitiallyestimatedrateofreturnoftheassetandthat

thecostvalue/costpriceoftheadditionalcostcanbemeasuredreliably.

9.4.2.3 ToolsandAccessories

It ismandatorythat thetoolsandaccessorieswithutilisationlivesshorterthanoneyear,arepresentedascurrentassets(asinventories),regardlessoftheircostvalue.Theseassetsarenotdepreciated,buttheirtotalvalueistransferredtoexpenseswhentheyareputintouse.

Tools and accessories which are written off bycalculationarerecognisedasfixedassetsandaresubjecttodepreciationiftheirusefullivesarelongerthanoneyear.

Itemsoftoolsandaccessorieswhichdonotmeettheseconditionsarepresentedascurrentassets(inventories).

Theindividualvalueoftoolsandaccessoriesofthesametypewhicharecombinedlyusediscalculatedasthesumofthe individualvaluesofall toolsandaccessoriesofthesametype.

9.4.2.4 SpareParts

Installedsparepartsarerecognizedasfixedassetsiftheirusefullivesarelongerthanoneyear.

Suchspareparts,uponbeinginstalled,increasethecarryingamountof theassetsthat theyhavebeeninstalledin.

SparepartswhichdonotsatisfytheconditionsfromParagraph1ofthisArticle,atthetimeoftheinstallation,shallbepresentedasanoperatingcost.

9.4.2.5 Inventories

InventoriesareaccountedforinaccordancewiththeIAS2Inventories.

Inventoriesareassets in the formofmaterialsorsuppliestobeconsumedintheproductionprocess,orinthecourseofprovidingservices.

Inventoriesincluderawmaterialsandconsumables,whichshallbeusedintheproductionprocess,orinthecourseofprovidingservices.

Suppliesofmaterialspurchasedfromsuppliersaremeasuredatthecostvalueornetsalevalue,ifitislower.

Thecostvalueorcostpriceofinventoriescomprisesofallcostsofapurchase,andothercostsincurredbybringingtheinventoriestotheirpresentlocationandcondition.

Thecostsofpurchaseofmaterialsincludepurchaseprice,importdutiesandothertaxes(exceptthetaxes


thatcansubsequentlyberefundedtotheentitybythetaxauthorities,suchasVAT,whichcanbedeductedaspriortax),transportcharges,handlingchargesandothercostswhichcanbedirectlyattributedtothepurchaseofmaterial.Reductions,discountsandothersimilaritemsaredeductedwhencalculatingpurchasecosts.

TheassessmentofthenetsalevalueofthesuppliesofmaterialsismadebyaspecialcommitteeestablishedbySMATSAllcCEO.

Thecalculationoftheoutputofsuppliesofmaterials(materialused)ismadebyemployingtheweightedaveragecostmethod.

Theweightedaveragecostiscalculateduponeverynewinputofmaterial.

Incaseofoperatinginhyperinflationaryenvironment,thevalueoftheinventoriesisadjustedbyapplyingapriceindex,inaccordancewiththeIAS29.

9.4.2.6 Short-termReceivablesandInvestments

Short-termreceivablescomprisedomesticandforeigntradereceivablesforthesaleofgoodsandservicesrendered.

Short-terminvestmentscompriseloans,securitiesandothershort-terminvestmentswhosedateofmaturityand/orsaleisoneyearfromthebalancesheetdate.

Short-termaccountsreceivablesaremeasuredattheiroriginalinvoicevalue.

Iftheinvoicevalueisdenominatedinaforeigncurrency,thevalueiscalculatedintothestatementcurrencyattheaverageexchangerateapplicableonthedateofthetransaction.

Changesintheexchangeratefromthetransactiondatetothereceivablescollectiondatearepresentedasexchangerategainsandlossesandcreditedtorevenues,orchargedagainstexpenses.

Receivablesdenominatedinaforeigncurrencyonthebalancedatearecomputedbyapplyingtheapplicablemiddleexchangerate,andexchangeratedifferencesarerecognisedasrevenuesorexpensesoftheperiod.

Indirectwrite-offand/or correctionof valueof theaccountsreceivableattheexpenseoftheoperatingexpendituresoftheperiod,attheaccountofcorrectionofvalue,isdoneforaccountsreceivable,inaccordancewiththestatutorydeadlineapplicableasoftheinvoiceduedate,with theestimateofcollectibilityofeachindividualaccountreceivable.Thedecisiononindirectwrite-offand/orcorrectionofvalueof theaccountsreceivable, at theaccount of correctionof value,upontheproposalmadebythecommitteeforrecord-

keepingofreceivablesandshort-terminvestments,ismadebySMATSAllcSupervisoryBoard.Directwrite-offof receivablesat theexpenseof theoperatingexpenditureoftheperiodisdoneifuncollectibilityiscertainanddocumented–theentityfailedtocollectthereceivablesbylegalmeans,andtheaccountreceivablewaspreviouslyincludedintheentity’srevenues.Thedecisionondirectwrite-offoftheaccountsreceivablesismadebySMATSAllcSupervisoryBoard,upontheproposalmadebythecommitteeforrecord-keepingofreceivablesandshort-terminvestmentsand/oraspertheannualreportproducedbyEUROCONTROL.ThecalculationandcollectionofairtrafficserviceprovisionchargesintheairspaceoftheRepublicofSerbia–FlightInformationRegionBelgrade(FIRBelgrade)aredoneinaccordancewiththecurrentregulationsandthesetamountofairtrafficservicechargeintheterminalcontrolareas.

9.4.2.7CashandCashEquivalents

Cashequivalentsandcashconstitutepartofthecurrent(operating)assetsofalegalentity,whicharemeasuredatnominal,i.e.fairvalue,inaccordancewiththeIAS39-FinancialInstruments:RecognitionandMeasurement,andotherrelevantstandards(theIAS32-FinancialInstruments:PresentationandtheIAS7-StatementofCashFlows).

Cashandcashequivalentscomprise:cashinhand,demand deposits, other short-term highly liquidinvestmentswithanoriginalmaturityperiodofuptothreemonthsorshorter(chequesandbillsreceivedforcollection,currentinvestmentsinsecurities)andbankoverdrafts.Inthebalancesheet,bankoverdraftsareincludedinborrowingliabilities,withincurrentliabilities.

9.4.2.8 Off-BalanceSheetAssetsandLiabilities

Off-Balancesheetassets/liabilitiescomprisetherecordsofthefollowing:receivedguarantees,issuedguarantees,counterguaranteesandrespectiveliabilities.

9.4.2.9 ShareCapital

Sharecapitaloriginatesfromtheincorporationbasedonthefounder’sstakeinSMATSAllc.ThefoundersofSMATSAllcaretheRepublicofSerbia(92%)andtheStateofMontenegro(8%).SharecapitalisinitiallystatedintheamountoftheestimatedstakeinSMATSAllc(itcomprisesboththecapitalpaidinandtheaccountedunpaidcapital).ChangesinthesharecapitalarecarriedoutexclusivelyaccordingtotherulesprescribedbytheLawonBusinessCompanies,andallchangesinthesharecapitalareregisteredwiththeappropriateRegister.SharecapitalstatedindinarsisnotchangedaccordingtochangesofEURexchangerates,althoughitisstatedinEurosintheRegister.


9.4.2.10Reserves

SMATSAllchasthereserveformedfromtheretainedearningsuntil thereservereachesat least20%ofthesharecapitalasgovernedby theContractonConfirmationoftheContinuityofAirNavigationServicesProvisionwithintheAirspaceofSerbiaandMontenegro.

9.4.2.11RevaluationReserves

Revaluationreservescomprisethepositiveeffectsofchangesinthefairvalueofproperty,plant,equipment,intangibleassetsandotherfinancialinstruments.InaccordancewithIAS16andIAS38,whenanasset’scarryingamountisincreasedasaresultofrevaluation,thepositiveeffectofrevaluationiscrediteddirectlytocapital,as therevaluationreserve.Decrease inrevaluationreservesarisesfromnegativerevaluationofanasset, forwhich therevaluationreservewaspreviouslycreated.Negativeeffectsofrevaluationincaseofrealisation(disposalanddecommissioningofassets)ariseiftherevaluationreservewascarriedregardingthatspecificasset.

9.4.2.12RetainedEarnings

Retainedearningsarecarriedasretainedearningsfromprioryearsandretainedearningsofthecurrentyear.Thecumulatedretainedearningsfromprioryearsandtheeffectsfromchangeintheaccountingpolicyandcorrectionofmaterialfundamentalerror,inaccordancewithIAS8andadoptedaccountingpolicies,arecarriedinaccountRetainedearningsfromprioryears.Retainedearningsof thecurrentyeararise fromtransferofaresultfromcurrentyeartotheaccountofretainedearnings.RealisedrevaluationreservesaretransferredtoRetainedearningsofthecurrentyearintheBalanceSheet.

9.4.2.13Provisions

Long-termprovisionscompriseprovisionsinwarrantyperiod,provisions for retainedcautionmoneyanddeposits,provisionsforrestructuringofcompanies,provisionsforemployeebenefits(IAS19–EmployeeBenefits)andotherlong-termprovisionsforcoverageofliabilities(legaloractual),arisenasaresultofpastevents,whicharelikelytocausetheoutflowofresourcesofeconomicbenefitsforthepurposeoftheirsettlementandwhichmaybereliablymeasured(e.g.litigationsinprogress),andprovisionsforguaranteesissuedandotherformsofbond.

Long-termprovisionsforcostsandrisksaremonitoredattheirtypes,andtheirrespectivereductionorterminationarecreditedtotheincome.

Provisionsarenot recognised for futureoperatinglosses.

Provisionsdifferfromotherliabilities,suchasaccountspayabletothesuppliersandcalculatedliabilities,sincetheyareuncertaininrespecttotheiroriginationdateorthesumoffutureexpendituresrequiredfortheirsettlement.

Provisionsaremeasuredintheamountrecognisedastheprovision,whichrepresentsthebestestimationofexpendituresrequiredforsettlementofthepresentliabilityasonthebalancesheetdate.

Provisions are tested as on each balance sheetdateandcorrectedsoastopresentthebestpresentestimate.Ifitisnotlikelythattheoutflowofresourcesofeconomicbenefitisrequiredforsettlementofliabilities,therespectiveprovisionisabolished.

Provisionrepresentstheliability(legalorconstructive),existingasonthebalancesheetdate,butisofuncertainmaturitydateandamount.


WithintheaccountProvisionsforemployeebenefits,SMATSAllcrecordslong-termprovisionsforemployeebenefits(retirementindemnitiesandjubileeawards)paidinlinewiththerightsacquiredduringemploymentandpost-employment,inaccordancewiththeIAS19–EmployeeBenefits.AccordingtoIAS19,paymentsforretirementindemnitiesandjubileeawardsarenottobechargedtotheperiodwhenpaymentwaseffectedtoemployees,buttheacquiredrightforsuchpaymentsistobecalculatedduringtheemployment,thatisfromtheemploymentdatethroughouttherespectivepaymentundertheacquiredright.SMATSAllcrecordsprovisionsthereunderinaccordancewiththeestimationperformedbytheaccreditedactuary.

9.4.2.14Liabilities

Liabilitiesareconsideredas:

•long-termliabilities(liabilitiestoassociatedlegalentitiesandlegalentitieswithintercompanyinterest,long-termloans,liabilitiesarisingfromthelong-termsecuritiesandotherlong-termliabilities).Long-termliabilitiesbecomedueandpayableintheperiodlongerthanayearfromthedatewhenincurred,i.e.fromthebalancesheetdate,respectively,andarerecognisedandmeasuredinaccordancewithIAS39-FinancialInstruments:RecognitionandMeasurementandotherrelevantIASs.SMATSAllchascreatedthelong-termliabilityforlong-termcrossborderloans.

Whenrecognisingthelong-termliabilitiesforloans,SMATSAllcwasguidedbytheguidelinesofIAS23-BorrowingCosts.Interestexpensesandotherborrowingcoststhataredirectlyattributabletotheacquisition,constructionordevelopmentofqualifyingassetmustbecapitalised(attributed)tothepurchase(cost)valueofthatasset.

Thecapitalisationperiod is theperiod fromthebeginningoftheinvestmentinthequalifyingasset(beginningofthecapitalisation)tothemomentwhenallactivitiesnecessarytopreparetheassetfortheplanneduseorsale(cessationofthecapitalisation)areessentiallycompleted.Borrowingcostsincurredbeforeandafterthecapitalisationperiod,regardlessofwhethertheyareincurredbytheloanswithorwithoutthespecialpurposefortheacquisitionofthespecificasset,arerecognisedastheexpenseoftheperiod.

According to Paragraph 23 of IAS 23, thecapitalisationoftheborrowingcostsissuspendedduring the extended periods in which activedevelopmentofthequalifyingassetisinterrupted.Theborrowingcostsincurredduringanextendedperiodinwhichtheactivitiesnecessarytoprepare

theassetforitsplanneduseorsalearesuspended,cannotbecapitalised,butareshownasanexpenseofthatperiod(e.g.temporarysuspensionoftheinitiatedfacilityconstruction).

Given that the loan is recorded in the foreigncurrency,suchliabilityiscalculatedonthebalancesheetdateaccordingtothemiddleexchangerateofthatcurrency,andtherespectiveexchangerategainsandlossesarisingthereunderarerecorded;

•short-termfinancialliabilities(liabilitiestowardsassociated legalentitiesand legalentitieswithintercompanyinterests,short-termloansandothershort-termfinancialliabilities);SMATSAllcrecordedtheliabilitytowardstheCivilAviationDirectorateoftheRepublicofSerbiaunderthesignedProtocolTOP04,number184/9,dated20/08/2007;

•short-term liabilities frombusinessoperations(suppliers and other liabilities from businessoperations).SMATSA llc recordedall liabilitiestowardsdomesticandforeignsuppliers;

•othershort-termliabilities(liabilitiesforsalaries,commissionearnings,fringebenefitsforSMATSAllcSupervisoryBoardandAssemblymembers,liabilitiestophysicalpersonsrelatedtocontractualfees)and

•LiabilitiesforValueAddedTax(VAT).

Short-termliabilitiesareliabilitieswhichareduewithinoneyearfromthedateoffinancialstatementspreparation.

Aliabilityrepresentsanycontractualliabilityfor:

•thetransferofcashoranyotherfinancialassettoanothercompany,or

•exchangeoffinancialinstrumentswithanothercompanyunderpotentiallyadverseconditions.

Upon initial recognition,SMATSA llcmeasures itsfinancial liabilityasper itspurchasevalue,whichrepresentsthefairvalueofthecompensationreceivedfor it.Transactioncostsare included in the initialmeasurementofallfinancialliabilities.

Liabilitiesdenominatedinforeigncurrencies,aswellastheliabilitieswiththeindexclause,aremeasuredasonthefinancialstatementspreparationdateaccordingto the foreigncurrencymiddleexchangerate.Thedifferences calculated then are accounted for asexpenseorrevenueoftheperiod.

Reductionintheliabilitiesunderthelaw,extrajudicialsettlementandalikeisperformedthroughadirectwrite-off.


9.4.2.15CurrentandDeferredIncomeTax

Taxexpensesforaperiodcomprisethecurrentandthedeferredtax.Thetaxisrecognisedintheincomestatement,excepttotheextenttowhichitrelatestotheitemsrecogniseddirectlyinthesharecapital.Inthiscase,thetaxisalsorecognisedinthecapital.

Currentincometaxiscalculatedonthebalancesheetdate,basedonthevalidstatutorytax-relatedregulationsoftheRepublicofSerbia,whereSMATSAllcoperatesandgenerates taxable income.Themanagementperiodicallyreviewstheitemsinthetaxreturn,withrespecttothesituationsinwhichtheapplicabletaxregulationissubjecttotheinterpretation,andmakesreservationof funds, if appropriate,basedon theamountsexpectedtobepaidtothetaxauthorities.

Deferredincometaxiscalculatedinthefullamount,usingtheliabilitymethod,forthetemporarydifferencesarisingbetweenthetaxbasisofassetsandliabilitiesand theirbookvalues in the financialstatements.However,ifthedeferredincometax,providedithasnotbeenenteredintotheaccountingrecords,arisesfromtheinitialrecognitionofanassetorliabilityinatransactionotherthanabusinesscombination,that,atthetimeofthetransaction,affectsneithertheaccountingnorthetaxableprofitorloss,thenthedeferredtaxisnotaccountedfor.Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedbythebalancesheetdateandwhichareexpectedtobeimplementedintheperiodinwhichthedeferredtaxassetsaretoberealisedorthedeferredincometaxliabilitiessettled.

Deferredtaxassetisrecognisedtotheamountexpectedtobecoveredby the future taxableprofit,and thetemporarydifferencesareexpectedtobesettledoutofthatprofit.

9.4.2.16RevenuesandExpenses

RevenuescompriserevenuesfromtheordinarycourseofSMATSAllcactivitiesandgains.Revenuesfromtheordinarycourseofactivitiesarerevenuesgainedfromprovidingservicesinairtraffic,revenuesfromprovidingflightcalibrationservices,fromtrainingofpilotsandairtrafficcontrolofficers,fromsubsidies,grants,compensationsandrecoveryofdutiesbasedonthesaleofservices,andotherrevenuescalculatedintheaccountingdocument,irrespectiveoftheirpaymenttime.

Gainsrepresentotheritemsqualifiedasrevenues,andmayarise,thoughnotnecessarily,fromtheordinarycourseofSMATSAllcactivities.Gainsrepresentanincreaseineconomicbenefits,andassucharenotdifferentinnaturefromrevenues.Gainsincludegainsondisposaloflong-termassets,unrealisedgains;e.g.

theonesresultingfromanincreaseinbookvalueoflong-termassets.Gainsarerecognisedonanetbasis,afterbeingreducedfortherespectiveexpenses.

Varioustypesofassetsmaybereceivedorincreasedthroughrevenues,forexamplecash,receivablesandgoodsandservices receivedascompensation fordeliveredproductsandservices.Inaddition,revenuesmayarisefromsettlementofliabilityfromrepaymentofresidualdebt.

SMATSAllcrecognisesrevenueswhentherevenuemaybereliablymeasured,whenitislikelythatSMATSAllcwillhavetheeconomybenefitstherefrominthefutureandwhenseparatecriteriaaremetforeachrespectiveactivity.Therevenueisnotdeemedasreliablymeasureduntilallprospectiveliabilities,whichmayarisefromsale,aresettled.SMATSAllcbasesitsestimatesonresultsfromprioroperations,giventhetypeofcustomer,typeoftransactionandspecificnatureofeverytransaction.

Revenues from contracts with fixed pricing (forservices relative topilots and controllers trainingandflightcalibrationservices)arerecognisedatthecompletionratemethod.Therevenuesfromservicesareproportionallyrecognisedbasedonthecompletionrateoftheserviceonthebalancesheetdate.

Interestincomeisrecognisedonatime-proportionbasis.

Revenuesfromforeigncurrencyclauseincludethepositiveeffectofcontractedrevaluationandforeigncurrencyclause.

SMATSAllcrecordsRevenuesbasedonthecorrectionofimmaterialerrorsfromprioryearsintheaccount692.Onthebalancesheetdate(31/12),businesseventsrecordedintheaccount692arereclassifiedtotheaccount679(iftheydonotrepresentmaterialerrors)ortotheaccountofretainedearnings,iftheyrepresentamaterialerror.

Totaloperatingexpensescomprise:costsofmaterial,wages, salaries and other personal expenses,depreciationandprovisions,producingandintangiblecosts,irrespectiveofthepaymentdate.

Expenditures for advert is ing, promotion andentertainmentmustbereliable,thatisdocumented,inrespectoftheiroccurrenceandpayment.Thereliablydocumentedcostsarerecognisedasentertainmentexpenditures,arisenunder the followinggrounds:restaurantservicesforbusinesspartnersinrespecttoconclusionandrealisationoftheagreementoranyotherformofbusinesscollaboration,givingproducttobusinesspartners,cateringservices for jubileecelebrationsandthelike.


SMATSAllcrecordsExpensesbasedonthecorrectionofimmaterialerrorsfromprioryearsintheaccount592.Onthebalancesheetdate(31/12),businesseventsrecordedintheaccount592arereclassifiedtotheaccount579(iftheydonotrepresentmaterialerrors)ortotheaccountofretainedearnings,iftheyrepresentamaterialerror.

Lossesrepresentotheritemsqualifyingasexpenses,andmayarise,thoughnotnecessarily,fromtheordinarycourseofSMATSA llcactivities.Losses representreductionineconomicbenefits,andassucharenotdifferentinnaturefromotherexpenses.

Lossescomprise,forexample,thelossresultingfromcatastrophes,suchasfireandflood,andtheonesresultingfromthesaleoflong-termassets.Furthermore,bydefinitiontheexpensecomprisesunrealisedloss,forexamplethelossoriginatingfromeffectsofincreaseinforeigncurrencyexchangerateinrespecttocreatingdebtinthatrespectivecurrency.Whenlossisrecognisedintheincomestatement,itiscarriedseparately,sincetheacknowledgementthereofisusefulwhenpassingtheeconomy-relateddecisions.Theloss isusuallyrecognisedatthenetbasis,afteritsreductionbytherespectiverevenues.

9.4.2.17InterestandOtherBorrowingCosts

InterestandotherborrowingcostsofSMATSAllcareaccountedforasperthebasicprocedureinaccordancewiththeIAS23BorrowingCosts.

Interestexpensesandotherborrowingcoststhataredirectlyattributabletotheacquisition,constructionordevelopmentofqualifyingassetmustbecapitalised(attributed)tothepurchasevalue(cost)ofthatasset.

Theborrowingcostsincurredduringanextendedperiodinwhichtheactivitiesnecessarytopreparetheassetfor itsplanneduseorsalearesuspended,cannotbecapitalised,butareshownasanexpenseofthatperiod(e.g.temporarysuspensionoftheinitiatedfacilityconstruction).

9.4.2.18SubsequentlyDetectedErrors

Subsequently foundmaterialerrorsarecorrectedthroughtheaccountofretainedearningsfrompreviousyears,thatis,throughtheretainedlossesfrompreviousyears,inthemannerestablishedbytheIAS8AccountingPolicies,ChangesinAccountingEstimatesandErrors.

Amaterial error is an errorwhich individually, orcumulativelywithothererrors,exceeds3%oftotalrevenues.

Subsequentlyfounderrorsthatarenotmaterialarerestatedforcorrectionagainstexpenses,or,infavourofrevenuesintheperiodwhenidentified.

9.4.2.19Functionalandpresentationcurrency

FunctionalandpresentationcurrencyofSMATSAlls,inaccordancewiththeIAS21TheEffectsofChangesinForeignExchangeRates,isdinar.

9.4.3.1 FinancialRiskFactors

SMATSAllcactivitiesareexposedtovariousfinancialrisks:marketrisk(includingforeignexchangeraterisk,fairvalueinterestraterisk,cashflowinterestrisk,pricechangerisk),creditrisk,liquidityriskandcashflowrisk.ThemainfocusofriskmanagementwithinSMATSAllcisontheattempttominimisethepotentialadverseeffectsonthecompany’sfinancialperformanceintheconditionsofunpredictabilityoffinancialmarkets.SMATSAllcusesderivativefinancialinstrumentstohedgecertainriskexposures.

RiskmanagementiscarriedoutbythemanagementofSMATSAllcinlinewiththerecommendationsoftheSupervisoryBoard.ThemanagementofSMATSAllcidentifiesandevaluatesfinancialrisks,anddefinesriskprotectionmethodsincooperationwiththecompany’soperatingunits.

ThemanagementofSMATSAllcpassesitsbusinessdecisionsdulyandaccuratelytherebyprotectingitselffromcreditandmarketrisks.

9.4.3.2 FinancialRiskManagementObjectives

Financialriskscomprise:

•marketrisk(currencyriskandinterestrisk),

•creditrisk,and

•liquidityrisk.

FinancialrisksarereviewedonatimebasisandareprimarilyhedgedbyreductionofSMATSAllcexposuretosuchrisks.SMATSAllcdoesnotuseanyfinancialinstrumentswhatsoeverinordertohedgetheimpactoffinancialrisksonitsoperations,duetothefactthatsuchinstrumentsarenotwidelyused,andthatnoorganisedmarketofsuchinstrumentsexistsintheRepublicofSerbia.

9.4.3FinancialRiskManagement


9.4.3.2.1MarketRisk(CurrencyRiskandInterestRisk)

Initsbusinessactivities,SMATSAllcisexposedtofinancialriskspertainingtoforeigncurrencyexchangerisks arising from various currency fluctuations(SMATSAllcoperatesinternationally)andvariationsofinterestrates.Theriskarisesfromfuturecommercialtransactions,recognisedassetsorliabilitiesandnetinvestmentsinforeignoperations.ForeignexchangeriskariseswhenfuturecommercialtransactionsandrecognisedassetsandliabilitiesaredenominatedincurrencythatisnotSMATSAllcfunctionalcurrency.

Themarketriskexposureisreviewedbythesensitivityanalysis.TherewerenosignificantchangesinSMATSAllcexposuretothemarketriskor inthemannerofSMATSAllcmanagementormeasurementofsucharisk.

SMATSAllcisobligedtohedgeitstotalexposuretoexchangerateriskbypassingdulyandtimelydecisions.

BasicfinancialinstrumentsofSMATSAllcarecashandcashequivalents,receivables,financialinvestmentsoriginatingdirectlyfromSMATSAllcactivitiesandthelong-termandshort-termborrowings,accountspayableandotherliabilitieswhoseprimarypurposeisfinancingofSMATSAllccurrentoperations.AccountspayablewerepartiallysettledinJanuaryandFebruary2015.

ThepolicyofSMATSAllcmanagementinrespecttoriskmanagementistohedgebetween90%and100% of expected cash flow (mainly revenuesfromprovidedservicesandcostsofacquisitionofequipmentandspareparts)ineverymajorcurrencywithinthefollowing12months.Thepercentageofcollectionofroutechargesforservicesprovidedtoforeigncustomerscomprisedapproximately99%.Thepercentageofcollectionofterminalserviceschargesfromforeigncustomerscomprisedapproximately85%,andfromdomesticcustomers,approximately98%.

9.4.3.2.2ForeignExchangeRateRisk

SMATSAllcisexposedtoforeignexchangerateriskprimarilythroughcashandcashequivalents,accountsreceivables,long-termloansandaccountspayableswhicharedenominatedinforeigncurrency.SMATSAllcdoesnotusesomespecialfinancialinstrumentsagainst risksince thiskindof instruments isnotcommonintheRepublicofSerbia.

Economicenvironmentstability,inwhichSMATSAllcisperformingitsactivities,dependsagreatdealonGovernmentmeasuresineconomy,includingaswelltheestablishmentofrelevantlegalframework.

SMATSAllcisinfluencedbyEuro(EUR)andAmericandollar(USD)changerate.Thestructureofthefinancial

assets ismainlycomposedofaccountsreceivables(mostlyforeigncompanies’debts)andcashandcashequivalents(foreigncurrencyaccount).Liabilitiesarecomposedoflong-termloansandpayables.Long-termloansarerecordedinforeigncurrencywhilepayablesfor equipment and spare parts are also recordedin foreigncurrency,andpayables for fixedmonthlyliabilities(electricity,telephone,fueletc.)arerecordedindomesticcurrency.Statedassetsandliabilitiesareexpressedinforeigncurrencyon31/12ofthecurrentyearandaccordingtothattheexchangedifferenceisregistered.Businessresultdependspartlyonfinancialrevenuesandexpenses.Financialrevenuesparticipationpercentage(positivecurrencyexchangedifferences)intotalrevenuesin2015was0.85%(in2014itwas2.95%).

Financialexpensesparticipationpercentage(negativecurrencyexchangedifferences)intotalexpensesin2015was0.72%(in2014itwas4.21%).

9.4.3.2.3InterestRisk

SMATSAllcisexposedtointerestratechangefortheliabilitieswithvariableinterestrate.ThisriskdependsonthefinancialmarketsoSMATSAllcdoesnothaveavailableinstrumentstomitigateitsinfluence.

9.4.3.3 CreditRisk

CreditswhicharegivenwithchangeableinterestratesexposeSMATSAllctocashflowinterestrisk.CreditswhicharegivenwithfixedinterestrateexposeSMATSAllctofairmarketvalueinterestraterisk.Inthecourseof2014and2015,SMATSAllccreditswithfixedandchangeable interestratewereexpressed in foreigncurrency.

Sensitivity analyses showed that the interest ratechangesrelatedtotheloanfromtheEBRDdonotexposeSMATSAllctotheinterestraterisk.Themanagementestimatesthatthepossiblechangesintheinterestratescouldcompriseeithertheincreaseordecreaseof1%.TheconclusionisthatsuchchangewouldnothaveasignificantimpactonSMATSAllcfinancialresult.

9.4.3.3.1DebtRatio

SinceSMATSA llchasobtained the loans in theamounthigherthantheamountofcashandcashequivalents(RSD3,427,544and3,638,462thousandofdinars),thismeansthatSMATSAllchasadebtratiothatcanberepresentedintwoways:

• Bor rowed funds /Tota l funds x 100 =3,910,181/17,435,278x100=22.43%

•Long-termloans/Capital+Long-termliabilitiesx100=3,427,544/15,654,430x100=21.90%


Thefirstratioisusedtoshowtheborrowedfundsshareinthetotalcapitalandthecontributionoftheborrowedcapitaltothefinancingoftheassets.Thedebtratio(gearingratio)showsthateveryRSDofSMATSAllcavailablefundscontainsRSD0.2243dinarsofforeignfunds(absolutely),i.e.theindebtednessofthecompanyamountsto22.43%ofthetotalfinancingfunds(relatively).Thismeansthatthecreditorshavetherighttouseavailablecompanyassetsuptotheamountoftheindebtedness.

Thesecondratioisusedtoshowtheborrowedlong-termcapitalshareinthetotallong-termcapital(ownedandborrowed),whichiscloselyrelatedtothedegreeofprofitabilityandthecapitalreleasespeedthroughthecapitalwrite-off(depreciation).Thelong-termloansshareinthetotallong-termfundsamountsto21.90%.Thehighshareoftheliabilitiesinthetotalcapitalandofthelong-termliabilitiesinthecapitalisacceptableandwillnotjeopardizethesafetyandliquiditysincethelevelofavailablecashequivalentsishigh.

SMATSAllchasnotpledgedanyassetsinordertosecuretheloan.

9.4.3.4 LiquidityRisk

Liquidityisdefinedastheabilityofacompanytomeetthefinancialcommitmentsfortheentireamountandontime,whileatthesametimepreservingtherequiredscopeandstructureofcurrentassets toconductcurrentoperations,andcreditworthiness.Maintainingfinancialsolvency(liquidity)istherequirementprimarilyimposedonSMATSAllcbythelender(creditor),i.e.thelegalsystem.

Theliquidityrepresentsthecoverageoftheshort-termliabilitieswiththecurrentassets.

SMATSAllcManagementmaintainedtheliquidityoftheoperationsbytheadequatefinancingoftherealpartofthecurrentassets(inventories)withthelong-termcapitalandensuringthatthenominalassets(receivables+cash)arealwaysfinancedwiththeshort-termliabilities,providedthattheturnoverspeedisalwaysthesame,whichmeans,providedthatthevelocityofmaturitiesofshort-termliabilitiesmatchedthespeedofcollection.

Prudentliquidityriskmanagementimpliesmaintainingthesufficientcashandprovidingtheadequatesourcesof funding throughanadequateamountofcreditliabilitiesandpossibility.

AnnualReport 71


10IndependentAuditor’sReport



11AcronymsandAbbreviations

ADR All-PurposeDataStreamReplicator

ADQ AeronauticalDataQuality

AFIS AerodromeFlightInformationServices

AFTN AeronauticalFixedTelecommunicationNetwork

AIP AeronauicalInformationPublication

AIS AeronauticalInformationSevices

ALR AlertingServices

AMHS AeronauticalMessageHandlingSystem

ARTAS ATMsuRveillanceTrackerAndServer

ASM AirspaceManagement

ATC AirTrafficControl

ATFCM AirTrafficFlowandCapacityManagement

ATFM AirTrafficFlowManagement

ATIS AutomaticTerminalInformationService

ATM AirTrafficManagement

ATP AirlinePilotTraining

ATS AirTrafficServices

BHANSA BosniaandHerzegovinaAirNavigationServiceAgency

CANSO CivilAirNavigationServicesOrganisation

CAT Category

CDA ContinuousDecisionApproach

CIMACT CivilMilitaryATMCo-ordinationTool


CPL ComercialPilotLicence

CPR Correlatedpositionreport

CS5EAIMS CentralisedServices5:EuropeanATMInformationManagementService

DCT Directroute

DME DistanceMeasuringEquipment

DPS DataProcessingSystem

DVOR DopplerVOR

EANPG EuropeanAirNavigationPlanningGroup

EASA EuropeanAviationSafetyAgency

ECAC EuropeanCivilAviationConference

ECMA EuropeanConferenceonMeteorologyforAviation

ЕCМWF EuropeanCentreforMedium-RangeWeatherForecasts

ESARR EurocontrolSafetyRegulatoryRequirements

EUMETCAL EuropeanMeteorologicalComputerAssistedLearning

ETFMS EnhancedTacticalFlowManagementSystem

EUROCONTROL EuropeanAgencyfortheSafetyofAirNavigation

FAB FunctionalAirspaceBlock

FAMUS FutureATMModernisationandUpgradeSystem

FDPS FlightDataProcesingSystem

FIR FlightInformationRegion

FIS FlightInformationServices

FMTP FlightMessageTransferProtocol

FUA FlexibileUseofAirspace

GRIB GriddedBinary

ICAO InternationalCivilAviationOrganisation

ICASC InternationalCommitteeforAirspaceStandardsandCalibration

IFIS InternationalFlightInspectionSymposium

ILS InstrumentLandingSystem

LLZ Localizer


LOA LetterofAgreement

LRD LongRangeDCTs

LVP LowVisibilityProcedures

MET MeteorologyorMeteorological

MTOW Maximumtakeofweight

NATO NorthAtlanticTreatyOrganisation

OAT OperationalAirTraffic

OLDI On-LineDataInterchange

PANS OPS ProceduresforAirNavigationServices-AircraftOperations

PBN PerformanceBasedNavigation

PBNSID PerformanceBasedNavigationStandardInstrumentDepartures

PBN STAR PerformanceBasedNavigationStandardArrival

PPL PrivatePilotLicence

PSR PrimarySurveillanceRadar

RMCDE RadarMessageConversionandDistributionEquipment

ROMATSA RomanianAirTrafficServices

RRR RadarDataRecording&ReplaySystem

SAA SMATSAAviationAcademy

SEAFRA SouthEastAxisFreeRouteAirspace

SES SingleEuropeanSky

SMATSA SerbiaandMontenegroAirTrafficServicesSMATSAllc

SMS SafetyManagmеntSystem

SSR SecondarySurveillanceRadar

SUSAN SMATSAUpgradeofSystemforAirNavigation

TRS TimeReferenceSignal

TSA TemporarySegregatedArea

VCS VoiceCommunicationSystem

WMO WorldMeteorologicalOrganisation

ACS AerodromeControlService


CAA CivilAviationAgencyofMontenegro

CAD CivilAviationDirectorateoftheRepublicofSerbia

RNS Ground radio navigation

PSS Runway

ATC Terminalairtrafficcontrol

ATCC AirTrafficControlCentre

AnnualReport2015 77

AS

SE

MB

LY

SUPERVISORYBOARD

ATMSector

AVIA

TIO

N

TEC

HN

OLO

GIE

S SE

CTO

R

Internalaudit

CEO/DeputyCEO

Secretariat

Departmentforcom

mercial

trans

actio

ns

Com

mercialand

Econom

icAffairs

Sector

FinancialAffairs

Department

Procurem

ent

Department

Appl

icat

ion

Services

Department

Theoretical

Trai

ning

Department

AirTrafficController

TrainingDepartment

Services

Department

AircraftMainte-

nanceDepartment

Prov

idin

g Conditionsfor

theuseofAirport

Department

FlightTraining

Department

ADCBeograd

ADCBatajnica

ADCVršac

ADCKraljevo

ADCNiš

ADCPriština

ADCPonikve

АКЛ

Подгорица

Operations

Department

Groundbased

Nav

igat

ion

Systemsand

METE

quipment

Department

ATCAV

Department

Rad

ar

Equipm

ent

Department

Electricity&HVA

C

Department

Coordination

Survellianceand

Mon

itorin

g Department

Aeronautical

Messages

ExchangeGroup

Telecommuni-

catio

nsDepartment

ATCOperational

Technologyand

ATSDepartment

CNSPlanningand

Development

Devision

ATM&MET

Planing

andDevelopment

Department

CNSSystem

Managam

entand

Implem

etation

Department

Development

Devision

AISDepartment

Facilitiesand

Infrastructure

Plan

ning

and

Maintance

Department

ATCCShift

MET

Department

Controland

Protection

ofAirspace

Section

Allocationof

Airspace

Section

Control,

Protectionand

Allocationof

Airspace

Department

АКЛ

Тиват

Security

Department

Administrative

Department

ContractExecution

Mon

itorin

g Department

PlanningAnalysis

andReporting

Department

Normative

Legal

AffairsandProperty

Rights

Departm

ent

Hum

anResources

Development

Department

Networkand

System

Services

Department

ANS

Pers

onne

l Tr

aini

ng

Cent

reTM

C B

eogr

adTM

CPo

dgorica

Ope

ratio

ns

Division

ATC

Ope

ratio

nal

Trai

ning

Division

ATM

& A

ISDivision

Ope

ratio

nal A

T De

partm

ent

Flig

ht

Calib

ratio

n Division

AT P

lann

ing

and

Developm

entD

ivision

SMAT

SAAviation

Academ

y

Hum

an

Resources

Legaland

Administrative

Affairssector

ITandSecurity

sector

Aeronautical

Personnel

TrainingSector

TerminalandAerodromeFlight

ControlandAdm

inistrative

Affairssector

ATCCBelgrade

OperationalAviation

Technologies

SafetyCom

mittee

QualityCom

mittee

SecurityCom

mittee

SafetyandQuality

Sector

AirTrafficSa

fety

Department

QualityManagem

ent

Department

12Annex1-SMATSAllcOrganisationalStructure

Company Name: Serbia and Montenegro Air Traffic Services

SMATSA llc, Belgrade

Head Office: Nikola Pasic Square 10, 11000 Beograd, Republic of Serbia, P.O.Box 640

Registration Number: 17520407

Tax ID Number:103170161

Telephone:+381 11 3218 123

Fax:+381 11 3240 456

Е-mail: [email protected]

Website: www.smatsa.rs

Documents

Annual Report 2015 SERBIA AND MONTENEGRO AIR … za stranice/AnnualReports/SMATSA AR 201… · SERBIA AND MONTENEGRO AIR TRAFFIC SERVICES SMATSA llc BELGRADE. ... in 000 rsd 49 table