ATNS presentation Parliamentary Portfolio Committee 16 May 2007

ATNS presentationATNS presentation

Parliamentary Parliamentary Portfolio CommitteePortfolio Committee

16 May 200716 May 2007

presentation outline

about ATNS strategic review 2006/7 ATNS and Africa strategy 2007/8

safety people service delivery financial sustainability positioning

about ATNS about ATNS


May 2007May 2007

..quick facts about ATNS

Full service Full service 9 airports9 airports Service on contract Service on contract 12 airports12 airports Total employees Total employees 789 789

Operational ATS staff ATS staff 394 394 Total airspace otal airspace 22 000 000km222 000 000km2

Aircraft movements Aircraft movements 645 000645 000 Capacity FAJSCapacity FAJS 52 (72) 52 (72)

vision… mission…

vision

be the preferred supplier of air traffic, navigational and associated services to the African continent and surrounding regions.

mission

to provide safe, orderly, expeditious and efficient air traffic, navigational and associated services.

ATNS strategic imperatives

continuous improvement of our safety

performance become an employer of choice become a performance based service provider maintain long term financial sustainability position ATNS to secure a continued role in

the changing global air traffic management

system.

TaxiingTake-offTaxiingTake-off

ClimbingOverflyingClimbing

Overflying

CruisingClimbing

Descending

CruisingClimbing

Descending

DescendingHoldingLetdown

Overflying

DescendingHoldingLetdown

Overflying

LandingTaxiingLandingTaxiing

Phases OfFlightPhases OfFlight

ControlZone

ControlZone

ControlAreas

ControlAreas

AirwaysControl Areas

AirwaysControl Areas

ContolAreasContolAreas

ControlZone

ControlZone

ControlledAirspaceControlledAirspace

ILSAerodrome

ControlAerodrome

Control

AerodromeControl

AFIS

AerodromeControl

AFIS

Terminal/Approach

Control

Terminal/Approach

Control

Commu-nication Air - Ground Ground - Air Radio & Data Link

Sur-veillanceSur-veillance

En Route Radar CoverPrimary and SecondaryEn Route Radar CoverPrimary and Secondary

PrimarySecondary

RadarVisual

PrimarySecondary

RadarVisual

PrimarySecondary

RadarVisual

PrimarySecondary

RadarVisual

VOR/DMEVOR/DMENDB

NDBVOR/DMEVOR/DMEVOR/DMEVOR/DME

NavigationNavigation ILSNDB

VOR/DME

ILSNDB

VOR/DME

ILSNDB

VOR/DME

ILSNDB

VOR/DMEVOR/DME & NDBVOR/DME & NDB

NDBNDB

NDBNDB VOR/DMEVOR/DMEVOR/DMEVOR/DME

En-Route Sectors

Area ControlReporting Points

strategic reviewstrategic review06/0706/07


May 2007May 2007

ATANon-Core

SA Core

2002/03 2003/04 2004/05 2005/06 *2006/07 F

326.4363.1

456.9

551.6581.7

0

100

200

300

400

500

R600M

ATNS total revenue 02/03 - 06/07

17.2%

-8.2%

5.1%

Average annual growth rate

..revenue grown by 15.5% on average p.a. over the last 5

years

*As at Mar 07 – To be finalised

Prof feesTravelAdmin

Elect maint.Telecom

Other

Depreciation

Salaries

2002/03 2003/04 2004/05 2005/06 *2006/07 F

286.4

336.5

401.2417.5

464.8

0

100

200

300

400

R500M

Expenditure02/03 - 06/07

16.6%

14.3%

…while costs have increased by 13% p.a .over the last 5

years



Profit

2002/03 2003/04 2004/05 2005/06 *2006/07 F

R29.9MR26.0M

R33.5M

R95.9M

R80.9M

0

20

40

60

80

R100M

Net profit after tax

…resulting in profit after tax increasing by 28% p.a. over

the last 5 years..


Actual

2002/2003 2003/2004 **2004/2005 2005/2006 *2006/2007

8.5%

5.9% 5.3%

16.4%

11.4%

0.0

5.0

10.0

15.0

20.0%

ROCE

Permission

increased revenue has led us to adequately compensate for

capital employed...

*As at Mar 07 – to be finalised** IFRS adjusted

10.8% 12.55%22.0%10.2% 0.0%Tariff increases

CAPEX spend has increased by 18% on average p.a. over the

last 5 years

Total

2002/03 2003/04 2004/05 2005/06 2006/07

R110.4M

R149.4M

R105.5M

R139.1M

R217.3M

0

50

100

150

200

250

R Millions

Navigation

Communication

Surveillance

2002/03 2003/04 2004/05 2006/0797

98

99

100%

equipment availability has decreased due to equipment upgrades and obsolescence…

2005/06

Surveillance-Planned downtime - Radar replacememnt programme- Damage to radarNavigation-Replacement of NDBs with VORsCommunications-Telkom cable theft and cable damage-Installing domestic VSAT

Target Surv

Target Comms

Target Nav

…however is approaching target..

Actual

Navigation Communications Surveillance

98.88% 99.60% 98.95%

0.0

20.0

40.0

60.0

80.0

100.0%

Target: 98.47% 99.64% 99.76%

Difference: +0.41% -0.04% -0.81%

Note: Based on 2006/07

the average delay per flight appears to be decreasing...

Ave delayper flight

2002/03 2003/04 2004/05 2005/06 2006/07

33s

16s

3s 3s 2s

0

10

20

30

40

Seconds

Target2 s

…despite a 3% growth in total air traffic movements

annually over the last 5 years

Movements

2002/03 2003/04 2004/05 2005/06 *2006/07 FC

563,877 574,457 582,766608,930

644,619

0

200,000

400,000

600,000

700,000

Movements

5% ave annual increase in traffic growth over the last 2 years

*FC includes Mar 2007 projection

..licensed ATC staff complement has increased

10.4% over the last 12 months…

PATC& SATC

ATC

Mar 03 Mar 06 AdditionalControllers

Resignations Mar 07

188

230

38

-14254

0

50

100

150

200

250

300

ATC Staff

…and retention of air traffic controllers has improved

since 2005/2006…

ATC

SATC

PATC

*2003/04 2004/05 2005/06 2006/07

8

16

20

14

0

5

10

15

20

ATC Staff resignations

* From May 2003 to March 2004

…this has contributed to a plateauing of the incident

rate…

Incidentrate

2002/03 2003/04 2004/05 2005/06 2006/07

4.4

6.1

5.2

3.6 3.5

0

2

4

6

7

Per 100 000 movements

Target2.5

…leaving us 7% short of our Human Capital target…

PATC

SATC

ATC

Required for fullservice 2006/07

Achievabletarget as perHCP 2006/07

Actual operational staff headcount

Mar 07

Availableoperational staff Mar 07

304

274254

225

0

100

200

300

350

ATC Staff

18% short

7.3% short

PATC

SATC

ATC

HCP target06/07

Actual06/07

07/08 08/09 09/10 10/11 11/12

274254

296319

341364

386

0

100

200

300

400

ATC Staff

Human Capital Plan Target

..HCP a 5 year rolling target..

..delivering on our ee targets - we are 3% short of

our EE target

EE Women

48%

32%

0.0

20.0

40.0

60.0%

Target = 51%

staffing improving – however still our major strategic

risk…

Demand growth

Global poaching

Continued recruitin

g challeng

eContinued key staff shortage

s

Potential high risk to core operations

ATNS and AfricaATNS and Africa06/0706/07

ParliamentParliamentMay 2007May 2007

current initiatives aim to…

• facilitate regional service provision;

• lead the introduction of new technologies to achieve increases in capacity, efficiency and safety; and;

• develop people in aviation management and the technical skills.

our approach…

• finding “win-win” solutions together with our African partners;

• accessing new markets through joint ventureswith like minded partners : ICAO / IATA / FAA;

• identifying third party funders IATA; and

• financing projects with a secure revenue stream.

our vision: Cape to Cairo satellite

communication network

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Brazzaville

Kinshasa

Bangui

N'Djamena

Khartoum

AddisAbaba

Mogadishu

Victoria(Seychelles)

Dj ibouti

Mumbai

Asmara

Cairo

Tripoli

Entebbe

NairobiBuj umbura

Kigali

Dar es Salaam

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Future Planned NAFISATand SADC Circuits

MCPC Satellite Circuits

Planned NAFISAT Circuits

Johannesburg

Antananariv o

Niamey

Tunis

Plaisance(Mauritius)

Revision 1.3 16-08-06

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Sana'a

Jeddah

MID Region

Planned shared circuitsbetween NAFISAT and

SADC/2

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Abijan Accra

Dakar

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progress?new SADC VSAT network

August 2007

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Khartoum

AddisAbaba

Mogadishu


Dj ibouti

Mumbai

Asmara

Cairo

Tripoli

Entebbe

NairobiBuj umbura

Kigali

Dar es Salaam

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Niamey

Tunis


Revision 1.3 16-08-06

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Maseru

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Sana'a

Jeddah

MID Region


SADC/2

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Abijan Accra

Dakar

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SADC VSAT

Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda

To be upgraded to meet existing future demands: GNSS, VHF and ATN

Facilitates 2 million data calls per annum

Implementation of upgrade underway

Launch date 13 September 2007

AFISNET

Interconnected with ASECNA, Afisnet network – connecting SADC with 16 West African states

progress?new North East African

network September 2007

NAFISAT

Satellite network to be installed in North East Africa

Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen

IATA and ATNS jointly selected as the service provider

Equipment acquisition for SADC VSATII and Nafisat systems being done jointly

Implementation of the system underway

Launch date 18 October 2007

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Kinshasa

Bangui

N'Djamena

Khartoum

AddisAbaba

Mogadishu


Dj ibouti

Mumbai

Asmara

Cairo

Tripoli

Entebbe

NairobiBuj umbura

Kigali

Dar es Salaam

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Johannesburg

Antananariv o

Niamey

Tunis


Revision 1.3 16-08-06

Windhoek

Luanda

Beira

Maputo

Gaborone

Harare

LusakaLilongwe

Maseru

Manzini

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Sana'a

Jeddah

MID Region


SADC/2

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Abijan Accra

Dakar

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increased training for our African partners…

External

Internal

2003/2004 2004/05 2005/06 2006/07

766895

1,133

1,461

0

500

1,000

1,500

Number of Trainees

Overall pass rate

Internal pass rate

94.6%

93.9%

95.6%

96.5%

95.1%

92.4%

95.0%

94.2%

…76% of our external participants were from

African countries

Non - African

External SA

African

Other African

DRC TanzaniaMozambiqueNamibiaGhanaUganda

BotswanaRwanda

Algeria

Sudan

Nigeria

Total courses taken by non-ATNS staff

Total courses takenby African delegates

906

693

0

200

400

600

800

1,000

A glimpse into the futureA glimpse into the future..07/08 and beyond....07/08 and beyond..


ATNS strategic imperatives

continuous improvement of our safety

performance become an employer of choice

retention of core critical skills: atc’s and

engineers transformation

become a performance based service provider maintain long term financial sustainability position ATNS to secure a continued role in

the changing global air traffic management

system.

..safety......safety....

Parliament Parliament May 2007May 2007

..improve safety ratio..

reduce safety ratio to 2.5 incidents per 100 000 movements; 2.5 global target

improve the safety management system; increase safety awareness instill just culture standards maintenance and standards oversight

international best practice audit – international peer review

• complete feasibility study for new area control centre;• finalise ATNS ATM/cns roadmap for 2015 and beyond;• finalise planning for King Shaka international airport;• oversee implementation of Reduced Vertical Separation Minima in Africa;• initiate planning for next permission; and • build an airspace modelling capacity within ATNS

..initiate and finalise long range strategic planning ..

• ongoing management of the ATNS risk & security management systems• ongoing quality improvements

• maintain and enhance quality management system,• conduct annual surveillance audits• oversee a successful assessment audit in august 2007

..enhance systems for and oversee risk, security and

quality...

..people......people....


..demystify aviation and air navigation…

• demystify air navigation• bring a girl child to school• maths winter school (Mpumulanga, Limpopo,

Gauteng)• airshows countrywide• career exhibitions• radio talk shows

• implement aviation management programme – people in aviation industry• July 2007 – launch date 14 June 2007

• new study centre to be launched – already implemented

• new technology procured for training: radar, VCCS• refocusing internally • selling “spare capacity” externally• improving course provision efficiencies• achieve international recognition

– ICAO– IATA

• achieve full staffing complement

..achieve training excellence…

• ongoing instructor training– excel as subject matter experts– enhance facilitation – training of trainers– mechanism to enhance continued learning.

• review course structure and course content to continually achieve international benchmarks – introduction of a practical component, NATS

recommendations, etc.

..achieve training excellence…

• realign SHR structure to offer one stop service point– re-evaluate job descriptions to ensure alignment

with the structures– integrate and migrate identified functions

appropriately

..enhance hr structure …

• identify appropriate leadership development approach and mechanism

• ongoing utilization of executive coaching programme

• implement revised incentive scheme• implement new retention scheme• oversee performance management

– training and audits

..enhance leadership and management skills…

• develop and implement the succession planning model

• drive reward & recognition culture• create awareness of policy• monitor and report on trends

• accelerate employment equity within the organisation

• diversity development– ensure optimum functioning of EE and skills forum– diversity training

..back to basics in SHR…

• improve recruitment and selection process– shorten the turnaround time (max 85 days)– utilize internet recruitment– conduct recruitment training for all managers & HR

Practitioners– drive recruitment process to achieve EE targets– strengthen the pipeline of bursars / learners

• enhance newly introduced corporate induction programme

• leverage international recruitment


• review and enhance the skills development directives

• finalise implementation of HR Focus System (IT based HR system)

• develop appropriate HR measurements and reports

• develop and implement the ATNS policy on HIV/AIDS


……service delivery…service delivery…


..capacity ahead of demand..

• capacity ahead of demand• 5.4% growth per annum in traffic envisaged

going forward 2007/08 – 2011/12• increase aircraft movements:

• from 56 movements per hour to 60 at FAJS• from 28 movements per hour to 30 at FADN

..our service ..

• minimal ATC related delays • 56s delay per delayed flight

• equipment availability to exceed ICAO and other targets: • Communication 99.69%, • Navigation 99.27% and • Surveillance equipment 99.39%

..expanding our service offering….

• improving our service offering (cont)• improved collaborative decision making - CAMU• become a RVSM enabled service provider• increase capacity and efficiency across Africa• ATNS – appointed as the Aeronautical Regional

Monitoring Agency for Africa• introduce multilateration as an alternative to SSR

PATC

SATC

ATC

HCP target06/07

Actual06/07

07/08 08/09 09/10 10/11 11/12

274254

296319

341364

386

0

100

200

300

400

ATC Staff

Human Capital Plan Target

..ensure an optimum staffing mix - 7% increase in ATS staff

over next five years…

investing in increased capacity, safety and efficiency

Replacement• Replacement and expansion of High Frequency infrastructure• Replacement and upgrade of surveillance infrastructure and navigation equipment• Upgrade of the aeronautical fixed telecommunication network and Aeronautical

Information system

Increase capacity and efficiency• Introduction of a new tool to manage increase numbers of air traffic flow• Renewal and upgrade of VSAT platform for inter-centre communication on the

continent and this will also enable aircraft-to-centre communication to improve efficiency

• The Airport Surface Movement Guidance and Control System will increase capacity through ensuring positive identification of aircraft on the ground

Improved safety• Upgrade and expansion of the voice communication control system network to

accommodate planned growth in air traffic movement

Research and development• A more cost effective surveillance system I.e. multilateration is being piloted as an

alternative to secondary surveillance radar

forecasted CAPEX

Total

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

R139M

R217M R226M

R136M R128M

R191M

R166M

0

50

100

150

200

250

300

R Millions

……positioning....positioning....


new SADC VSAT network to be commissioned August

2007

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Brazzaville

Kinshasa

Bangui

N'Djamena

Khartoum

AddisAbaba

Mogadishu


Dj ibouti

Mumbai

Asmara

Cairo

Tripoli

Entebbe

NairobiBuj umbura

Kigali

Dar es Salaam

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Johannesburg

Antananariv o

Niamey

Tunis


Revision 1.3 16-08-06

Windhoek

Luanda

Beira

Maputo

Gaborone

Harare

LusakaLilongwe

Maseru

Manzini

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16

16

16

16

16

16


Sana'a

Jeddah

MID Region


SADC/2

16

16

Abijan Accra

Dakar

16

SADC VSAT

Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda

To be upgraded to meet existing future demands: GNSS, VHF and ATN

Facilitates 2 million data calls per annum

AFISNET Interconnected with ASECNA, Afisnet network –

connecting SADC with 16 West African states

new North East African network to be commissioned

September 2007

NAFISAT

Satellite network to be installed in North East Africa

Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen

IATA and ATNS jointly selected as the service provider

Equipment acquisition for SADC VSATII and Nafisat systems being done jointly

Tenders issued

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Kinshasa

Bangui

N'Djamena

Khartoum

AddisAbaba

Mogadishu


Dj ibouti

Mumbai

Asmara

Cairo

Tripoli

Entebbe

NairobiBuj umbura

Kigali

Dar es Salaam

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Johannesburg

Antananariv o

Niamey

Tunis


Revision 1.3 16-08-06

Windhoek

Luanda

Beira

Maputo

Gaborone

Harare

LusakaLilongwe

Maseru

Manzini

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Sana'a

Jeddah

MID Region


SADC/2

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Abijan Accra

Dakar

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..influencing a global course..

• successfully host following conferences• ATFM Conference (global conference)• AFI/ATS Conference (African conference)• APIRG (African air navigation planning

meeting)• CANSO Human Resources Committee

(global meeting)• training of African delegates in ATS and TS

programmes• participation at the ICAO General Assembly in

October 2007

……financial sustainability....financial sustainability....


Revenue is forecasted to grow by 11% over the next 5 years

ATANon-Core

SA Core

2007/08 2008/09 2009/10 2010/11 2011/12

626.2

706.5

787.9863.8

947.1

0

100

200

300

400

500

600

700

800

900

R1,000M

ATNS total revenue

07/08 - 11/12

10.8%

13.1%8.5%


Prof feesTravelAdminElect maint.Telecom

Other

Depreciation

Salaries

2007/08 2008/09 2009/10 2010/11 2011/12

507.1580.1

643.4714.7

787.6

0

200

400

600

800

R1,000M

Expenditure

07/08 - 11/12

13.1%

11.6%

…while costs are forecast to increase by 11.7% annually

over the next 5 years…



…resulting in a forecast profit growth of 8% annually over

the next 5 years…

Profit

2007/08 2008/09 2009/10 2010/11 2011/12

79.6 78.6

95.0

110.1 108.5

0

25

50

75

100

R125M

Net profit after tax

07/08 - 11/12

8.0%


……back up…back up…


VSAT and ATA external continue to make up the bulk

of our non-core revenue

Other

ATA external

VSAT

2004/2005 2005/2006 *2006/2007F

R24.8MR26.1M

R28.6M

0

5

10

15

20

25

30R Millions

Non-core% of core:

5.4% 4.7% 4.9%


Accepted

Not accepted

SA 2004/05 SA 2006/07 UK0

2

4

6

8

10

SHL test scores

the quality of our NEW intakes has improved…

Pass

2003/04 2004/05 2005/06 2006/07

92%

71%

28%

58%

0.0

20.0

40.0

60.0

80.0

100.0%

Aerodrome Control Course

...leading to an increase in course success rates over

the last year

Higher SHL recruits in 2006/07 are expected to increase success rates going forward

Note: Poor success rates in 2005/06 appears correlated with low SHL score recruits from 2004/05

only 0.95% of applicants could be successfully

recruited…

White

Black

Applications received Minimum criteria met Recruited after successfulpsycohmetric testing

4,200

1,000

400

1,000

2,000

3,000

4,000

5,000

…despite the size of pool - recruitment levels have

increased…

ATM/AIMCore

ContentCourse

Participants

2003/04 2004/05 2005/06 2006/07 *2007/08 Plan

85

54

22

40

85

0

20

40

60

80

100

New Recruits

*Excluding AIM traineesNote: Source – Core content staff numbers including AIM participants (majority ATSA)

..after lots of hard work -67 000 students reached in 06/07 - through air shows, maths winter schools, etc…

..it takes between 3-6 years to become a qualified,

licenced ATC…

ATSA±12 weeks

3 – 6 years

Ab-inito35 weeks

ATC training31 – 52 weeks

ATC 1- 3 years

PATC

…despite this training lead time - 67% of our controllers

have more than 3 years experience…

PATC

SATC

ATC

0-3 years 3-6 years 6-10 years 10 + years

32.8%30.4%

14.2%

22.7%

0.0

10.0

20.0

30.0

40.0%

No. of ATC staff

Source: Experience calculated based on course dates and not validations

Documents

ATNS presentation Parliamentary Portfolio Committee 16 May 2007