caa strategic plan 2009-2012

11

CCommitmentommitment

RResponsibilityesponsibility

AAccountabilityccountability

CConsistencyonsistency

KKnowledge nowledge SharingSharing

IIntegrityntegrity

TTransparencyransparency

Towards being a Credible and Dynamic

World class Regulator

SOUTH AFRICAN CIVIL AVIATION AUTHORITY

STRATEGIC PLAN - 2009/12

22

CONTENTS

Vision - MissionExecutive SummaryOrganisational StructureOrganisational OverviewSWOT AnalysisInternational Bench MarkingLevel Of ComplianceAccident CategoryIndustry EnvironmentRisksStrategyDevelopmentPrevious ObjectivesNew Strategic ObjectivesGoals and Key Performance AreasDevelopment MapPerformance Management

(Balanced Scorecard)Improvement of Safety ObjectiveImprovement of Internal Processes

ObjectiveBuild Human Capital ObjectiveEnsure Financial Viability ObjectiveOversight Technical DepartmentsAir Safety OperationsCapacity of InspectorsDefinitionsOversight Activities

Page

457

89

10111213

1415161724

2526

272829

303132

South African Civil Aviation AuthorityStrategic Plan: 2008 - 2012

33

CONTENTS

Aircraft Safety Oversight Capacity of InspectorsOversight ActivitiesAir Safety Infrastructure

OversightCapacity of InspectorsAerodrome OversightSurveillance ActivitiesAviation SecurityCapacity of InspectorsOversight ActivitiesHuman ResourcesCompany DemographicsTrainingVarious DepartmentsFinancial Assumptions and NotesThree Year Budget Information TechnologyIntroductionCurrent InfrastructureRoad MapPlanned Infrastructure

Page

334

353637

3839

414243

4748

49505152


Vision

To be a credible and dynamic world class civil aviation regulator

Mission

• To promote and maintain a safe, secure and sustainablecivil aviation environment while adhering to internationalstandards

• To regulate and oversee the functioning and developmentof the industry in an efficient, cost effective, andcustomer friendly manner

• To promote an enabling environment for transformationand development

44South African Civil Aviation Authority

Strategic Plan: 2008 - 2012

55

SACAA Mandate

The South African Civil Aviation Authority (SACAA) is an agency of the Department of Transport (DoT) and as a result, its activities are governed by a performance agreement signed between the Board of Directors and the Minister of Transport. Its mandate, defined more fully in the South African Civil Aviation Authority Act No. 40 of 1998, can be summarised as follows:

“Regulating the civil aviation industry to ensure security and safety by complying with International Civil Aviation Organisation ( ICAO) and taking into consideration the local context.”

Background of SACAA Development

The Civil Aviation Authority (SACAA) was established on 1 October 1998 following the enactment of the South African Civil Aviation Authority Act, No 40, in September of the same year. The Act provided for the establishment of a stand-alone authority charged with promoting, regulating and enforcing civil aviation and security standards.

The creation of the SACAA reflected the Government’s then priorities of policy development, economic restructuring, addressing social inequalities and reducing the burden on the general taxpayer, by expanding the application of the “user pays” system.

In terms of its enabling legislation, the SACAA is mandated to generate its funding requirements from mainly from user fees, a charge on departing scheduled passengers and a fuel levy payable by the general aviation industry. Another significant income stream stems from charges for various services of the organisation egaircraft registration, pilots examination and registration, various licensing activities etc. The following has been the revenue component of the SACAA.

Sources of Revenue:

Safety Charge 77% User Fees 21.5% Fuel Levy 1.5%Dept of Transport 3% (Accident Investigation)

Strategic Plan Development Process

The Management of the SACAA has developed the Strategic Plan and is submitting to the Board as a discussion document to solicit input and further incorporate such in the final Strategic Plan. It is hoped that the next Strategic Plan development process will be handled more efficiently due to continuity

Financial Plan

The authority has budgeted an increase of Passenger Safety Levy of R2.00 from the 1st of April 2009 bringing the total levy to R12.00 per passenger ticket. The same levy is set to increase from the 1st of April 2011 by a further R1.30 bringing the total Passenger Safety Charge to R13.30 per ticket.

The Financial Plan has been based on the increase in passenger activity of 8% in the 2010 financial year, 15% in the FIFA 2010 World Cup year, and finally 8% on the 2012 year based on the first year (2010). These assumptions result in operating losses for all the three years, however Interest Income brings the Net Income to positive balances throughout the budgeted years. It is important to note that although the three years are budgeted at an operating loss, cash flows will remain positive a result of high depreciation figures.

The additional capacity increase of Inspectors for the FIFA 2010 World Cup is expected to cost the Authority R12m in 2011 and R14m during the subsequent year.

Part of the financial burden results from a cost under recovery of Accidents and Incident Investigation, a function SACAA administers on behalf of the Department of Transport. The budgeted income for the current year DoT subsidy is R7.5m, however total expenses for the seven months to date are R5,8m excluding communication costs and rent. At this rate there will be an under recovery of R2,5m with an all inclusive possible cost under recovery of R3,5m. Discussion with the DoT are being undertaken to fully recover these expenses.

Executive Summary


66

The CompanyThe South African Civil Aviation Authority is a Schedule III company with a total staff compliment of 384 and a forecast turnover of over R200m for the year ending March 2009.Since inception the company has had a high turnover of Executive Management which led inter alia to a lack of adequate technical resources to provide the required industry oversight as required by international agreements. This resulted in international compliance challenges in 2007 that threatened the downgrading of South Africa’s Category 1 status by the Federal Aviation Administration (FAA). Such an action would have had severe implications for the economy and the FIFA 2010 World Cup.The international compliance challenge meant that a major recruitment drive had to be undertaken in order to fill various vacant posts with skilled personnel. Unpaid overtime had to be taken by dedicated employees in order to cover for lost time during the unproductive years. Consequently this hard work yielded dividends when the organization was officially notified by FAA in October 2008 that it had maintained its Category 1 Status. This success was achieved with direct assistance from the Minister of Transport, who appointed a Task Team to steer the many if the initiatives required.The last eighteen months have been focused on passing audits International Civil Aviation Organization (ICAO) and the FAA, as a result systems and processes were less prioritized. The era has come to improve these systems and processes in order to be the best regulator in the world. To achieve this objective the company is implementing a Balanced Scorecard system. The company further believes that it is values like Commitment, Responsibility, Accountability, Consistency, Knowledge Sharing, Integrity and Transparency will improve service excellence and consequently contribute to the vision.As a regulator the organization is made up of various divisions, some purely technical and others supportive. Technical Departments

Air Safety OperationsAircraft SafetyAir Safety InfrastructureAviation Security.

Support Departments

Finance and Information TechnologyRisk, Compliance, Exams & LicencingHuman ResourcesLegalStrategy and Corporate CommunicationsStrategic FocusThe strategic focus is on the technical departments with other departments playing a supportive role. To ensure delivery, all the divisions are covered in detail by the new Balanced Scorecard that forms the basis of detailed divisional plans that reconcile to the Strategic Plan. The Performance Management system is the implementation tool of the strategy.Human Resource PlanningIn comparison to national demographics, the SACAA has under employed Africans by 16% and over employed White Males by 18%. This position exists because of the aforementioned need to employ pilots and technicians who are qualified and experienced on all the types of aircraft currently on the South African Aircraft Register, in order to conduct oversight in accordance with Conventions on International Civil Aviation, to which South Africa is a signatory. These skills have traditionally been the domain of white males and are also in great demand word-wide as is evidenced on the section on International Benchmarking. Recruitment and internal training efforts are actively geared to address these imbalances wherever possible in accordance with the requirements of the Employment Equity Act. To this end, 6.5% of payroll has been allocated for training of employees, which is more than double the national average.Technology PlanSACAA is in the process of developing the full Technology Plan. The current plan will be revised once this exercise has been completed. Part of the Systems intended to be procured in the next financial year is the Executive Dashboard, Safety Management System, Surveillance System and a Quality Management System.

Executive Summary (cont’d)



SACAA Organisational Structure as at Oct 2008

77

Strengths, Weakness, Opportunity and Threats Analysis

STRENGTHS ( SCORECARD)1. Compliant with ICAO standards CAAIm1.12. Category 1 FAA IASA assessment CAAIm1.23. Comprehensive technical training programme CAAL4.14. Committed and competent work force CAAL85. Autonomous Agency, independently funded 6. Sustained ISO 9001 compliance (7 years) CAAI6.17. Healthy Financial Position CAAF

OPPORTUNITIES ( SCORECARD)1. Knowledge and skills sharing with the rest of Africa2. Transfer of skills and knowledge from inspectors nearing retirement age

through mentorship programmes CAAL3.13. Improve teamwork across diverse cultures CAAL14. Planning process and efficiency improvements CAAL5.1 5. Recently concluded internal survey highlights factors that can be addressed

in order to improve the organization CAAL8.1

WEAKNESS ( SCORECARD)1. Statistics gathering process inadequate CAAI4.1 2. Inadequate financial controls CAAF3.13. Lack of an integrated information technology CAAI4.1 4. Inadequate strategy on General Aviation sector CAAC2.2 5. Misalignment of remuneration and reward system CAAL6.16. Bureaucratic approvals process CAAI7.17. Lack of representivity in accordance with

demographics of country in certain depts.8. Revenue model not updated since inception

THREATS ( SCORECARD) 1. Worldwide demand for pilots affecting attraction and retention of flight

inspectors CAAC2.22. Scarcity of black and female pilots in the industry affects employment equity

objectives CAAL2.1

Organisational Overview – SWOT Analysis

In order to comprehend SACAA’s strengths, weaknesses, opportunities and threats, a table is presented below. Most of the weaknesses and threats have been addressed through the Balanced Scorecard as referenced in the table. Management believes in such a coordinated approach in eliminating these threats and weaknesses. Much still needs to be done in the pursuit of maximizing current strengths and opportunities.



In the recent International Civil Aviation Organization audit results, SACAA performed well above international standards in the technical areas. Although there are challenges in the areas of Technical Personnel Qualification & Training, Surveillance Obligations, and Resolution of Safety Concerns. The international aviation community seems to be experiencing greater challenges in the same areas. These results make the 2012 vision of being the best regulator a serious possibility.

SAFETY OVERSIGHT AUDIT RESULTS UNDERTHE COMPREHENSI VE SYSTEM AAPROACH

State : South Africa Audit Period 5 to 16 July

Level of Implementation of the Critical Elements of a Safety Oversight System

CRITICAL ELEMENT

1 = Not Implemented

10 = Fully Implemented

¢ = State’s Level of Implementation

£ = Global Average

01 02 03 04 05 06 07 08 09 10

Primary Aviation Legislation £ £ £ £ £ £ £ £ ¢ £

Specific Operating Regulations £ £ £ £ £ £ £ £ ¢ £

State Civil Aviation System and Safety Oversight Functions £ £ £ £ £ £ £ £ ¢ £

Technical Personnel Qualification and Training £ £ £ £ £ £ £ ¢ £ £

Technical Guidance, Tools and the provision of Safety Critical Information £ £ £ £ £ £ £ £ ¢ £

Licensing, Certification, Authorisation and Approval Obligations £ £ £ £ £ £ £ £ ¢ £

Surveillance Obligations £ £ £ £ £ £ £ ¢ £ £

Resolution of Safety Concerns £ £ £ £ £ £ £ ¢ £ £

Organisational Overview – International Benchmarking

99

Primary Aviation

Legislation

Specific Operating

Regulations

CAA Structure and Safety Oversight Functions

Qualified Technical Personnel

Technical Guidance Material

Licensing and Certification Obligations

Continued Surveillance Obligations

Resolution of Safety Issues

Status at July 07 25% 31% 28% 30% 32% 7% 13% 17%

Status at March 08 21% 28% 18% 10% 31% 6% 12% 17%

Expected status at Dec 08 17% 4% 0% 0% 2% 0% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% N

on-C

ompl

ianc

e

ICAO CORRECTIVE ACTION PLAN IMPLEMENTATION

Organisational Overview – Level of Compliance

Despite current ICAO compliance status on the eight critical elements, a lot still needs to be accomplished to realize the new vision of being the best regulator. The table below indicates significant improvement within a year in areas of Qualified Technical Personnel and CAA Structure & Safety Oversight Functions. However areas such as Primary Aviation Legislation have a long lead time as they are dependent on parliamentary procedures that have similar time frames, this cycle could extend to 18 months.

1010

Organisational Overview – Accident Category

A review of the March 2008 Incident Category indicates various causes of incidents and accidents in the general aviation sector. Most of the recent accidents reported in the media belong to this category. In a view to reduce these Incidents and Accidents by 50% in 2012, the Authority has gathered industry role players through the General Aviation Safety Initiative (GASI) to suggest ways to drastically improve the country’s safety record. This requires a fresh outlook of challenges by the industry, to be implemented by the same industry. South Africa still maintains a good record within the scheduled category.

CATEGORIES OF INCIDENTS APRIL 07- MARCH 08

0

100

200

300

400

500

600

700

800

AirspaceViolations

Bird Strikes Go Around Other Procedures TCAS TechnicalAircraft

Weather AbortedTake Off

INCIDENT CATEGORY

NUM

BER

OF IN

CIDE

NTS Airspace Violations

Bird StrikesGo AroundOtherProceduresTCASTechnical AircraftWeatherAborted Take Off



Organisational Overview – Industry Environment

Technical skills, namely pilots and maintenance engineers, are in great demand by countries from the East and Middle East. Serious concerns regarding the exodus of these skills have been raised in various fora including the media.

A recent research by the SACAA revealed that there is a healthy distribution of professional pilots (ATP’s and Com’s) throughout the industry. Meanwhile such results are positive for the country, more needs to be done to retain such scarce skills. The attached schedules shows a healthy distribution of pilots in the industry from an age perspective.The current healthy distribution of the

ages of professional Pilots throughout the industry has to be compared with the entrants of the industry. The same recent research by the Authority revealed a high number of entrants in the industry between the ages of 21 and 29 as tabulated in the adjacent Commercial Pilots table. This means that there is growing interest in the industry to supply future Pilot needs of the country.

It must be stressed that although the situation is encouraging, more needs to be done to counter any possible massive exodus in future. A further breakdown of Commercial Pilot holders according to race and gender would give valuable insight of the industry.



SEVEN TOP RISKS

RISK DESRIPTION INHERENT RISK

LEVEL

RESIDUAL RISK

LEVEL

MITIGATING ACTIONS PER BALANCED SCORECARD

1 Qualified audit report resulting in reputational risk and reporting to SCOPA

20 16 CEO, Address Audit findings, CAAL7.1, CFO

2 Inadequate financial controls and procurement processes resulting in inefficiency, possibility for fraud and non compliance with legislation

20 16 CFO, Address Audit findings, CAAF3.1

3 SACAA non-adherence to all aviation legislation, including misinterpretation, this may result in compromise of aviation safety and security

20 12 GM AS, Implement Guidance Service, CAAC6.1

4 Inadequate examination and licensing integrity, resulting in the compromise of aviation safety and security, and legal/reputation risk exposure.

20 12 CEO, improve Safety & Security CAAC2.1

5 Inadequate human capital managem ent including attraction, retention, development and succession planning

20 12 GM HR, improve Rewards System CAAL6.1

6 Inadequate performance managem ent and measurement systems resulting in failure to achieve milestones and improve SACAA HR efficiency and effectiveness

20 12 GM HR, Robust Performance Management System CAAL5.1

7 Non-compliance to ICAO Annexes and SARPS and FAA requirements.

20 10 CEO, improve Compliance to International Standards CAAC5.1

Organisational Overview – Risk

In late 2008 the following Top 7 Risks were identified with the assistance of the internal auditors. These were initially scored at a potential 20, however after considering mitigating factors these were later scored lower as indicated in the table. At the point of identification, management had already assigned responsible persons to address these risks as tabulated in the Balanced Scorecard.



The strategic development and roll out process is expected to follow the tabulated sequence. Ideally the strategic session should have included the new inputs from the Board. Management used existing mandate and prior Board Objectives in developing the current Strategic Plan. It is expected that the current Board will provide input to the current strategy and adjustments incorporated in the final Strategic Plan. It is anticipated that the next Strategic Plan will be handled better after having cleared teething problems.

Strategy - Development

SACAA

Organisational Scorecard

DOT

Performance Agreement

Divisional

Scorecards

All Staff

Performance Scorecards

SACAA

Strategic Session

Historical Background

The SACAA has in the past developed a number of strategic plans. All of these plans lacked the Balanced Scorecard that ensures delivery of key performance areas. This situation meant that although there were noble objectives accomplished in a less structured environment, an era has come where a more coordinated effort has to be applied to improve service delivery, efficiencies, development of the organization and drastic reduction of accidents.

The current Strategic Plan offers a structured approach in pursuit of achieving organizational goals.

Strategic Process

In a strategic session in June 2008, the Executive Management of SACAA developed a new vision in cognizance of the milestones covered and the challenges that lay ahead. This process was administered by an external consultant in order to ensure objectivity and progress. The exercise culminated in the development of the Strategic Map and the organization's Balanced Scorecard.

Subsequently divisional scorecards have been developed in line with the organization's and consequently the executive management scorecards adjusted. This process is being cascaded to employees and for the first time the employee’s performance to the organization's are being synchronised.

Strategic Approach

The approach in compiling the 2009 -2012 Strategic Plan is that it had to be concise and yet articulate in its goals. As a result the technical department’s oversight activities and capacity are a significant feature. This approach does not compromise overall organization delivery as the Balanced Scorecard is designed specifically to harness technical and administrative roles.

The Strategic Plan includes oversight activities and capacity, however supporting detailed divisional plans exist separate from it.



HISTORIC OBJECTIVES

1 Set civil aviation safety and security standards and regulate industry compliance in accordance with International Civil Aviation Organization (ICAO) standards and global best practice.

2 Facilitate aviation industry functioning, development and growth by participating in joint forum, making safety and security recommendations and promoting safety and security through campaigns and information dissemination.

3 Build effective organization systems and processes in order to ensure financial stability, good corporate governance and performance excellence that meet or exceed government and industry expectations

4 Ensuring growing customer satisfaction by creating a knowledge-based and customer-focused organization

5 Attract, develop and retain skilled human capital

Strategy – Five Previous Objectives

The Current SACAA Board was appointed in May 2008. The previous Board was appointed in April 2005 and in late 2006 developed the tabulated objectives and consequently the 2007/8 and 2008/9 strategic plans were based on these objectives.

A revised strategic session of the SACAA Executive Committee in July 2008 developed the vision, “to be a world leader”. From this vision customer deliverables as indicated in the following Strategic Map were mapped out. These deliverables were then grouped in basic four logical areas giving rise to the following new strategic objectives.

The major difference of the new objectives is that there are much clearer and concise. This has resulted in the reorganization of the second and fourth objectives, the rest remain the same in content. Customer satisfaction is no longer a separate deliverable, it is the output of meeting key performance objectives. The adjacent first two objectives have been combined to “Improving aviation safety.” Finally, in spirit the four new objectives have not departed from the original ones, but these have been better organized to allow for adherence to new statutory reporting requirements and better accountability on the Balanced Scorecard.



Strategy – Strategic Objectives

Accelerate Transformation and Promote a Value Based Organisation

Improve Corporate Governance, Financial Sustainability and Empowerment

Comply with Legislation and International Civil Aviation Standards and Recommended Practices (SARPS)

Attract , Develop and Retain Skilled Human Capital

New Strategic Objectives from the Strategic Mapping Process

Improve Internal Systems and Processes

Increase assistance to improve Africa’s Civil Aviation Capacity

Improve Stakeholder Relations

STRATEGIC MAP DISCUSSION

Strategic Impact

The impact of the 2009/10 strategy is the current vision of the organization, that is to be a credible and dynamic world class civil aviation regulator. This vision will be achieved by maximum possible compliance with ICAO, maintaining FAA Category 1 status and reducing the general aviation fatality rate by 50%.

Strategic Map Development

In the development of the strategic map in June 2008, management had to outline deliverables that would have to be accomplished in order to realise the new vision.

The first segment was dedicated to actions that need to be taken in order to satisfy customers and consequently achieve the vision. The customers referred to in this section are targeted external stake holders of the organization. These customers include DoT, Pilots, AMOs, ATOs, Aircraft Owners, Airlines, Media etc

The second segment of the Strategic Map focuses on the internal processes that make it possible to deliver on the stake holders referred to in the first paragraph. Without a concerted effort towards these processes, it is almost impossible to deliver a good service externally.

The third segment covers developmental imperatives where issues of employee capacity building and morale are addressed in order to effect changes in the internal processes and provide a good service to the external stake holders.

The financial aspect is the final category of the organization that is necessary to realize the vision.

All the four elements are critical in realising the vision hence they form the four main objectives of the Balanced Scorecard.



PRIORITY Aviation Safety and Security

Objective 1 Comply with Legislation and International Civil Aviation Standards and Recommended Practices (SARPS)

Performance Indicator Level of Implementation by the Country and the SACAA of the Critical Elements of a Safety Oversight System

Critical Issues • Primary Aviation Legislation

• Specific Operating Regulations

• State Civil Aviation System and Safety Oversight Functions

• Technical Personnel Qualification and Training

• Technical Guidance, Tools and the provision of Safety Critical Information

• Licensing, Certification, Authorisation and Approval Obligations

• Surveillance Obligations

• Resolution of Safety Concerns

1717

Strategy – Goals and Key Performance Areas


PRIORITY Transformation and Growth

Objective 2 Accelerate Transformation and Promote a Value Based Organisation

Performance Indicator Level of Implementation of the Requirements of the Employment Equity Actand the BBBEE Charter of the Aerospace Sector

Critical Issues • Identification of programmes that will achieve accelerated transformation without impacting safety

• Implementation of succession planning

• Ensure skills development

1818




Objective 3 Improve Corporate Governance, Financial Sustainability and Empowerment

Performance Indicator Adherence to PFMA, unqualified financial audits, performance against budget, BEE spend

Critical Issues • Establishment of own internal audit capability

• Supply chain management

• Robust monthly financial reports including procurement issues

• Quarterly reports to Auditor General

• Review Revenue Model

1919



PRIORITY Aviation Safety and Security, Transformation and Growth

Objective 4 Attract , Develop and Retain Skilled Human Capital

Performance Indicators Staff Turnover, Results of Internal Climate Survey,

Critical Issues • Competitive Remuneration Structures

• Favourable Working Environment

• Commitment by Management to Training Development

• Creation of a Managerial Development Programme

• Staff Morale

2020



PRIORITY Corporate Governance

Objective 5 Improve Internal Systems and Processes

Performance Indicator Consolidated Performance Contracts – Balanced Scorecards, Progress on integration of IT systems

Critical Issues • Robust performance management system in place

• Establishment of regional offices

• Migration of CPL and ATP exams to modern IT systems

• Eliminate possibility of Exam and Licensing Fraud

• Implementation of an Electronic Records and Data Management System

2121




Objective 6 Increase assistance to improve Africa’s Civil Aviation Capacity

Performance Indicators Number of AFI workgroups participated in; Assistance given to other countries; jet accident rate in Africa, excluding South Africa

Critical Issues • Harmonisation of Regional Aviation Regulations (COSCAP projects)

• Recruit and train additional capacity to assist other countries with implementing ICAO Corrective Action Plans – budget considerations

• Support for Common Upper Airspace Control Centre for SADC and EAC

2222




Objective 7 Improve Stakeholder Relations

Performance Indicator Results of Customer Satisfaction Surveys, Compliments vs. Complaints

Critical Issues • Qualified and Experienced Inspectorate

• Well trained staff

• Promote Culture of Excellence in Service Delivery

• Performance Management of underachievers

2323



Impa

ctC

usto

mer

Inte

rnal

pr

oces

ses

Lear

ning

and

gro

wth

Fina

ncia

l

To be a world leader

Improve service

Improve safety and

security

Improve access to and dissemination of information

Improve quality

Improve compliance to international

standards

Implement guidance service

Improve brand image

Promote industry growth

Improve efficiency

Improve consistency

Continue with external process

alignment

Improve data analysisprocess

Improve communica-tion process

Improve quality

management

Improve internal

processes

Improve certification

process

Maintain current income

Review charge

structure

Improve financial controls

Improve revenue

collection

Manage cost to budget

Improve productivity

Ensure theright staff

Implement succession planning

Ensure skills development

Implement a robust

performance management

system

Improve rewards system

Improve governance

Improve supply chainmanagement

Improvestaff morale

Improve I.C.T.

Complianceto BBBEE

requirements

Implement client solution

process

Strategy – Development Map

To be a Credible World Class

Regulator



Performance Management – Balanced Scorecard

IMPROVE SAFET Y ASO

AS

ASI

Avsec

Risk & Com

Fi nance

Legal

HR

Key Performance Areas Key Performance Indicators Accountable

Improve Service Customer satisfaction survey Compliance x x x x x

Customer complaints x x x x x

Improve Safety and Security

Audit findings CEO/Comm x x x x

Progress against plan for safety campaign CEO/Comm x

Progress against safety improvements CEO/Comm x x x x x

Improve Access and dissemination of information

Progress against plan Compliance x

Number of Hits on the Website Compliance x

Improve Quality Customer Satisfaction Survey Compliance x x x x x x x x

Customer Compliments Compliance x x x x x x x x

Improve Compliance to International Standards

Adherence to ICAO standards CEO/Comm x X x x x x

Implement Guidance Service

Progress Against Plan Air Safety

Improve brand Image Top Mind Awareness (55) Exec (CEO)

Number of Customer Queries Exec (CEO)

Promote Industry Growth

Industry Growth Passengers/Tonnage CFO/Comm x x x x

Improving Safety is a major objective of the SACAA and directly deals with the mandate of the organization. The accountable persons in this important deliverable are indicated below, however the technical departments in conjunction with campaigns from communications contribute significantly to this cause.

2525

IMPROVE INTERNAL PROCESSESASO

AS

ASI

Avsec

Risk & Com

Fi nance

Legal

HR

Key Performance Areas Key Performance Indicators Accountable

Improve Efficiency Deadlines Missed Compliance x x x x x x x x

Number of Errors Compliance x x x x x x x x

Improve Consistency Compliance to Master Surveillance Plan ASO/Comm x x x x

Internal Audit Findings Compliance x x x x x

Continue With External Process Allignment

Progress Against Plan Compliance

Improve Data Analysis Progress Against Plan Compliance

Internal Customer Survey Compliance

Improve Communication Internal Customer Survey Exec/CEO x x x x x x x x

Improve Quality Management

Progress Against Plan Compliance

Non Conformances to Standard Compliance x x x x x x x x

Improve Internal Processes

Progress Against Plan CFO

Improve Certification Processes

Progress Against Plan Air Safety x

Improve Chain Supply Number of Deadlines Missed CFO x

Management of Cost CFO x

Performance Management - Balanced ScorecardRisk and Compliance is a significant role player in improving internal processes through its Quality Assurance Department. This department verifies management assertions on compliance against approved plans through audits to ensure achievement of objectives. All thedepartments are affected and responsible for some aspect of this objective.

2626

ATTRACT AND RETAIN HUMAN CAPITALASO

AS

ASI

Avsec

Risk & Com

Fi nance

Legal

HR

Key Performance Areas

Key Performance Indicators Accountable

Ensure the Right Personnel

Number of Resignation within the first 6 Months HR x x x x x x x x

Staff Turnover HR x x x x x x x x

Number of Staff that Achieve Performance Standard HR x x x x x x x x

Compliance to BBBEE Requirements

% Compliance CEO/Comm x x

Implement Succession Planning

All Critical Posts Backed UP HR x x x x x x x x

Ensure Skills Development

Progress Against WSP HR x x x x x x x x

Implement a Robust Performance Management

Progress Against Plan HR

Number of Performance Review On time HR x x x x x x x x

Improve Rewards System

Progress Against Plan HR

Staff Satisfaction Survey HR x x x x x x x x

Improve Governance External Audit Qualification CEO x x

Improve Staff Morale Climate Study Results CEO/Comm x x x x x x x x

Progress Against Previous Survey Corrections CEO/Comm x x x x x x x x

Absenteeism Numbers CEO/Comm x x x x x x x x

Disciplinary Hearings Non Performance CEO/Comm x x x x x x x x

Improve I.C.T Progress Against Plan CFO x x

Internal Customer Survey CFO x x

Attracting and Retaining Human Capital is a major responsibility of Human Resources although it affects all departments as indicated by the scorecard

Performance Management - Balanced Scorecard

2727

ENSURE FINANCIAL VIABILITY AND GOOD GOVERNANCEASO

AS

ASI

Avsec

Risk & Com

Fi nance

Legal

HR

Key Performance

Areas

Key Performance Indicators Accountable

Maintain Current Income

Actual Income Vs Target CFO x x x x

Progress Against Fine System Legal

Review Income Structure

Progress Against Plan Legal

Improve Financial Controls

Internal Audit Findings CFO x x x x x x x x

Improve Revenue Collection

Actual Revenue Collected Against Target CFO x x x x x x

Manage Cost to Budget

Actual Expenditure Vs Budget CFO x x x x x x x x

Improve Productivity

Cost per Employee CEO/Comm x x x x x x x x

Performance Management – Balanced Scorecard

Ensuring financial viability is a responsibility of Finance although Legal may assist in Ministerial submissions seeking approval to increase tariffs.



AVSEC Continued

This is regulated under Part 121, 135, 127 and 141 where the division performs oversight on operators and relevant training institutions. Another important function of the AvSec department is the direct oversight on airlines and airports in order to prevent unlawful acts of interference. Also new to the stable is General Aviation section intended to regulate the general aviation sector.

Another recent introduction to the stable is Part 108 pertaining to the regulation of air cargo operators. The effective date of implementation is 1 February 2009. The initial phase of application by prospective air cargo operators to become Regulated Agents and Known Consignors has commenced.

Another function of the division is the training and certification of personnel. The department administers Part 109 which deals with Avsec Training including the approval and or accreditation of training organizations.

Certification of personnel in the aviation security industry is regulated under Part 110

Air Safety Infrastructure (ASI)

The ASI division performs various safety oversight functions in the Aviation Infrastructure. One of the main duties is to license Aerodromes under nine regions. In addition, the division issues annual licenses to commercial airports after having successfully concluded oversight duties. Communications, Navigations and Surveillance oversight is also performed on designated airports of the country. ATSU approvals and Surveillance duties are also performed under the Air Traffic Services.

Other Departments

The Technical Departments are supported by the Finance Department, Legal, Human Resources, Risk and Compliance and Strategy and Communications.

Oversight – Technical Departments

TECHNICAL DEPARTMENTS

The SACAA performs its oversight duties through four technical divisions namely Air Safety Operations, Aircraft Safety, Air Safety Infrastructure and Aviation Security. This section will discuss human resources capacity in line with surveillance requirements within these technical divisions. First, a summary of each of the technical divisions’ activities is given.

Air Safety Operations (ASO)

The ASO division performs oversight on scheduled fixed wing aircraft under part 121 and 135. Helicopters and Flight Schools are administered under Part 127 and 141. Testing Standards within the ASO division administers Pilot exams for both the entry level Commercial Pilots and the more advanced ATPs.

Another important function of ASO is the Flight Inspection Unit (FIU) that calibrates navigation equipment. As additional service to the airlines and DFE’s, AvMed department of ASO, regulates the medical aspect of these institutions.

Aircraft Safety (AS)

The AS division’s major role is to license air craft and perform oversight activities on Aircraft Maintenance Organizations or similar institutions. Other active departments within the division are Certification, Management and Standards Development and Certification Engineering. The division is poised to introduce Defect Reporting & Technical Agreements and Aviation Environment Protection.

The AS division provides technical assistance to the ASO division in performing its oversight role in order to issue AOCs. This coordinated effort is important in order to provide comprehensive oversight on DFEs.

Aviation Security (AVSEC)

The AVSEC department provides security oversight in various areas. One of the important functions is to ensure safe transportation of dangerous goods.



CAPACITY OF INSPECTORSOperations Inspectors

Current Inspector

Complement

Number of AOCs* and

ATOs**/DFE

Targeted Inspector

Complement 2010

Targeted Inspector

Compliment 2011

Targeted Inspector

Compliment 2012

Part 121 20 55* 22 25 25

Part 135 14 142* 15 17 17

Part 127 6 67* 6 7 7

Part 64 7 43 8 9 9

TSO Officers 9 130 10 12 12

Part 141 5 237** 6 7 7

FIU 2 0 3 3 3

Avmed 2 0 3 3 3

TOTAL 65 73 83 83

Oversight – Air Safety Operations

The Oversight capacity of the Flight Inspection Unit is at 65 Inspectors with the total number rising to 73 in 2009 and stabilizing at 83. This steady increase is attributable to the projected increase in activity resulting in proportionate increase in oversight capacity. While there has been aggressive recruitment, the employee turnover in this area is quite high due to the global demand for the Inspector skills/Pilot skills. This situation has been worsened by the slow recruitment cycle due to uncontrollable circumstances. The current Inspector figures indicate that more stringent measures need to be implemented to retain skills within SACAA.




Oversight Plan Oversight Assumptions

The Air Safety Operations (ASO) Division performs oversight on all of the 10 ATOs tabulated in the oversight plan. The SACAA intends to conduct a minimum of 1 audit per annum on all DFEs & DEs that are performing Designated Examiner duties at the relevant Airlines/ATOs. The attached summary Surveillance plan captures a high level scenario with detailed plans available at the division.

*DFE - Designated Flight Examiner (Pilots) - designated by the Commissioner (SACAA) in terms of Section 5 (4)(b) of the Aviation Act & CARs Part 61.36

**DE - Designated Examiner (Cabin) - designated by the Commissioner (SACAA) in terms of Section 5 (4)(b) of the Aviation Act & CARs Part 64.01.09

1. Plan based on number of DFEs and DEs as per information received from Aviation Personnel Standards as at 9 October 2008

2. Subsequent attrition/new appointments of DFEs and DEs will be incorporated into this plan accordingly

3. Oversight of South African Airways DFEs are planned during the Airline's Primary Pilot Recurrent assessment period (Jan - June)

4. To ensure that all DFE and DE oversights are completed timeously before 31 December 2009, no DFE or DE oversights are planned for December 2009. This will allow for timeous processing of the renewal applications of all DFEs and DEs. However should there be any oversights not conducted by end November, these outstanding oversights will be conducted in December 2009.



NAME OF AIRLINE

April May June July Aug Sept Oct Nov Dec Jan Feb March

TOTAL

2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010

DFE

DE

DFE

DE

DFE

DE

DFE

DE DFE D

E

DFE

DE

DFE

DE

DFE

DE

DFE

DE

DFE

DE

DFE

DE

DFE

DE

1 TimeDFE 1 1 1 1 1 5

DE 1 1

AirlinkDFE 1 1 1 1 4

DE 1 1

ComairDFE 2 1 1 3 2 2 2 2 1 16

DE 1 1 1 1 4

Global Aviation

DFE 1 1 2

DE 1 1

South African Airways

DFE 12 12 11 7 13 13 68

DE 1 1 1 3

SaafairDFE 1 2 2 1 1 1 8

DE 1 1

SA ExpressDFE 1 3 2 2 2 1 1 1 1 14

DE 1 1 1 3

Star Air Cargo

DFE 1 1 2

DE 0

Stars AwayDFE 1 1

DE 0

Tulca/MangoDFE 1 2 1 1 2 7

DE 0

TOTAL 14 1 13 2 14 1 11 2 11 1 9 2 9 1 9 1 0 0 9 1 14 1 14 1 141


3232

CAPACITY OF INSPECTORS

Operations Inspectors Current Inspector

Complement

Number of AMO/

Manufacturing Organisations

Inspector Complement

2010


2011


2012

Large Aircraft (Part 121) Inspectors 11 55 12 14 14

Small Aircraft (Part 135) Inspectors 16 121 17 20 20

Rotorcraft (Part 127) Inspectors 6 46 6 7 7

NTCA 4 19 5 5 5

Manufacturing Inspectors 7 7 7 7 7

Certification Engineers 7 - 11 13 13

Aircraft Registrations 11 0 13 13 13

Defect Reporting 0 - 2 2 2

Environmental Protection 0 2 2 2 2

Unmanned Aircraft 1 - 3 3 3

TOTAL 63 250 78 86 86

Oversight – Aircraft Safety

The Aircraft Safety department is the most capacitated division in SACAA as a result of an aggressive recruitment drive initiated late last year coupled with much lower employee turnover rates. Notably new areas requiring Inspectors have been planned for next year including the following FIFA World Cup year. It is expected that the demand for these Inspectors will stabilize after the mentioned global event. The future Inspector requirements are depended on oversight including affordability. There are 63 current Inspectors rising to 78 in March 2010 and finally stabilizing to 86.



The surveillance function of the Aircraft Safety division is made up of four major departments as indicated below. Tabulated below are types of institutions to be visited per month, detailed names and dates are available at the division.

The current Surveillance Plan has been compiled based on the current institutions, this plan will be adjusted by additional institutions that will be registered.

SUMMARY AIR SAFETY OVERSIGHT PLAN

Month Aircraft Maintenance Organizations (AMO’s) Manufacturing Organizations

Part 121 Part 135 Part 127 NTCA MPT

Apr 2009 4 9 5 2 4

May 2009 3 13 2 0 3

May 2009 4 9 4 1 2

Jun 2009 6 7 6 2 3

Jul 2009 5 10 3 2 2

Aug 2009 4 8 4 1 1

Sep 2009 3 11 3 1 3

Oct 2009 6 10 3 3 2

Nov 2009 4 8 3 2 3

Dec 2009 6 7 1 2 3

Jan 2010 3 12 4 0 4

Feb 2010 4 9 3 1 2

Mar 2010 3 8 5 2 1

TOTAL 55 121 46 19 33

Oversight – Aircraft Safety




Inspectors (Exclude Admin and Managerial)

Current Inspector

Complement

Number of Aerodromes*, ATSU’s**, heli-

stops***


2010


2011


2012

Aerodromes-licensed and approved

10 134*59***

13 13 13

Aerodromes -registered

0 1200* 2 4 4

Communication,Navigation, Sur-veillance,Fre-quency mgmt.

3 67 NDB, 26 VOR, 39ILS, 30 Comm fcility inspections.

4 5 5

Air Traffic Services 3 22** 4 4 4

AIS 4 Collection, verification, dissemination of

aeronautical information, Notam Summaries,

oversee Briefing office.

4 4 4

Proc. Design & Cartography 8 Procedure Design, Approval, Obstacle

assessments, Scoping Reports

7 8 8

TOTAL 28 34 38 38

Oversight – Air Safety Infrastructure

The steady growth of Inspector numbers is determined by the passenger activity growth. Aerodromes Registered is notably a new section within this division. 28 is the current Inspector compliment rising to 34 in March 2010 and stabilizing at 38 in 2011 and 2012.



AERODROME OVERSIGHT

PROVINCENUMBER OF

AERODROMESSURVEILLANCE

DATE

Gauteng 18 May

Free State 10 June

Western Cape 7 July

Mpumalanga/Limpopo 26 August

Kwa Zulu Natal 19 September

Nothern Cape 19 October

Eastern Cape 15 November

Karoo 11 December

North West 15 January

TOTAL 140

NON DESIGNATED AIRPORTS SUBJECT LICENSE RENEWAL INSPECTIONS

Grand Central

Virginia

Sabi-Sabi

Rand Plettenberg Bay East Gate Wonderboom Ulundi

DESIGNATED AIRPORTS’S AERODROMES SUBJECT TO OVERSIGHT

Mafikeng

Pietermaritzburg

Polokwane

Umtata Durban Phalaborwa

Upington Kimberley Mala-Mala

Pilanesburg Cape Town KMIA

Margate East London Lanseria

O.R. Tambo Port Elizabeth Richards Bay

George Bloemfontein


3636

The Surveillance of the 2009/10 Aerodrome Infrastructure has been segmented to nine regions. Full months have

been designated to perform oversight duties in each region. While nine months have been set aside for surveillance of

Aerodrome infrastructure, certification of commercial airports will take place concurrently

The following designated and non designated airports are subjects of annual license renewal process.

The 2009/10 Surveillance Plan has allocated dates to perform oversight activities on these aerodromes as indicated in the next page.


COMMUNICATION, NAVIGATION, SURVEILLANCE OVERSIGHT 2009/10

0123456789

April

MayJu

ne July

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

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Janu

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Februa

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h

No.

Of A

udits

LICENSING OVERSIGHT OCCURRENCE 2009/10

0

1

2

3

4

5

6

April

May June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

ber

Decem

ber

Janu

ary

Februa

ryMarc

h

No.

Of A

udits

AIR TRAFFIC SERVICES INSPECTION OVERSIGHT 2009/10

0123456789

April

May June Ju

ly

Augus

t

Septem

ber

Octobe

r

Novem

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Decem

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Janu

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Februa

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udits


SURVEILLANCE ACTIVITIES

The Air Safety Infrastructure has developed surveillance plans for the three departments. These plans indicate various dates for auditing various institutions, however for confidentiality purposes the monthly activities of such oversight duties have been tabulated and the names of specific institutions and dates withheld.




Operations Inspectors CurrentInspector

Complement

Number ofOperators per

Category

Targeted Inspector

2009/2010

TargetInspector

2010 / 2011

Target Inspector2011 / 2012

Airlines, Airports (121, 139, NASP)

4 57 Airlines, 20 Airports

4 4 4

General Aviation 2 Promulgation process,current on

database 272 for 10Designated Airports

3 4 4

Avsec Training Section(109) 2 Promulgationprocess

3 3 3

Certification of Personnel (110)

2 Promulgationprocess

3 4 4

Dangerous Goods (121, 135, 127, 141,139, and 92)

7 215Operators

8 9 9

Air Cargo Security (108) 5 PromulgationProcess

6 7 7

TOTAL 22 27 31 31

Oversight – Aviation Security

A number of the Aviation Security (AvSec) division departments are undergoing a promulgation process. Some of the personnel needed to assist in these new functions have already been recruited in the current year. While more Inspectors have been requested than budgeted for, inspector numbers have been apportioned based on activity increase and recent appointments amongst others. Financial affordability is another factor considered in the budgeting of Inspector numbers. 22 is the current Inspector complement rising to 27 and stabilizing at 31 in 2011 and 2012.



OVERSIGHT ACTIVITIES

PERIOD DANGEROUS GOODS

CARGO TRAINING CERTIFICATION AIRPORTS & AIRLINES

GENERAL AVIATION

TOTAL per MONTH

Apr 2009 67 48 8 16 28 20 187

May 2009 68 39 8 16 54 25 210

Jun 2009 58 31 8 16 44 45 202

Jul 2009 53 28 8 16 21 50 176

Aug 2009 51 40 8 16 34 50 199

Sep 2009 84 37 8 16 25 45 215

Oct 2009 80 27 8 16 49 45 225

Nov 2009 60 49 8 16 34 50 217

Dec 2009 33 - 8 16 40 25 122

Jan 2010 27 25 8 16 37 40 153

Feb 2010 50 45 8 16 31 55 205

Mar 2010 68 36 8 16 32 50 210

TOTAL 699 405 96 192 429 500 2321

The (AVSEC)’s oversight plan is summarized below. While the number of oversight activities in the six departments are indicated, detailed names and audit dates are kept by departmental personnel for confidentiality’s sake. The oversight plan will be adjusted by any increase or decrease of institutions to be audited.



DESIGNATED AIRPORTS SUBJECT TO SECURITY OVERSIGHT

Mafikeng

Pietermaritzburg

Polokwane Umtata Durban Phalaborwa

Upington Kimberley Mala-Mala Pilanesburg Cape Town KMIA

Margate East London Lanseria O.R. Tambo Port Elizabeth Richards Bay

George Bloemfontein

Oversight – Aviation Security

Avsec will be performing oversight duties on the following designated air ports.



Overview - Human Resources



SACAA has a current employee complement of 386 made up of 63% Africans, 4% Coloureds, 5% Indians and 28% Whites. The Coloured and Indian segments are more or less in line with national demographics. While the Demographics are much closer to broad population representivity than any other organisation in the Aviation Industry in South Africa, segments that differ significantly are Africans being 16% below the national demographic benchmark, and the White segment being 19% above. What is also evident in the attached table is that Black Female Manager numbers including Black Female Professionals numbers need to be improved. Future recruitment will take this situation into account.

Training

The South African Civil Aviation Authority is an organization heavily reliant on human capital due to the nature of the business. As a result, training is a significant component in the normal business operations of the organization.

Part of the significant training costs are based on training of technical personnel in order to adhere to minimum standards required by international organizations like ICAO. In other cases, the industry does not offer formal training in a specific area hence an ICAO or IATA qualification may be sought in order to skill the new recruits as in the case of Aviation Security.

Flight Operations Inspectors very often have to receive conversion and recurrent training offshore, typically in Europe or the USA due to the non-availability of simulators for certain aircraft types being operated on the South Africa Aircraft Register and therefore account for the bulk of the training costs.

The following table indicates the summary training costs budgeted 31 March 2010. Thereafter individual technical training is tabulated indicating the various courses to be undertaken.

DEPARTMENT AMOUNT

Aviation Security R1,919,650

Aviation Safety Infrastructure R1,191,900

Air Safety Operations R6,502,450

Aircraft Safety R1,733,000

Support Structures R1,618,568

Total R12,965,568



Number of employees

to be trained per course

Intervention Institution Amount Required

3 Advanced Safety Management Systems Aviation Training Academy R 60,000

23 Airworthiness Auditors Course Bureau Veritas Quality Int. R 230,000

1 Airworthiness Conferences/Seminars To be advised R 300,000

1 Assessor Training Sector Education & Training Agenc R 100,000

1 Aviation Law in an African Context IATA R 20,000

3 Beech Baron Aircraft Type Systems NAC Tech Training Academy R 30,000

4 Composites Course SAAT R 20,000

4 Customer Services DMT Seminars R 8,000

1 Diploma (Civil Aviation Management) Singapore Aviation Academy R 40,000

2 Human Factors in Aviation IATA R 40,000

3 Lead Auditor Course A C& T R 255,000

1 Management advancement Programme Wits Business School R 40,000

4 Managing Aviation Policy & Regulation IATA R 100,000

2 Managing the Safety Oversight Function IATA R 40,000

2 Practical Aircraft Maintenance 43 Air School: Port Alfred R 100,000

4 Rotax Engine Course Aviation Engines R 20,000

61 R 1,733,000

Training – Aircraft Safety

Attached is the Aircraft Safety training budget for the current year. During the budget submissions a higher figure was submitted, however, subsequent discussion with the General Manager indicate that the R1,7m total budget will be ideal. A revised schedule reconciling with the attached total has been requested and will be available during the budget discussion with the Board.

It is important to attach this schedule in order to give an idea of the type of courses that are being enrolled by inspectors. Some of the significant courses will be undertaken when new inspectors are recruited. An accurate employee turnover figure can not be determined at this stage in order to inform the impact of natural attrition on training. This is largely due to a major Inspector component that was employed within the last seven months.



Number of employees in

SectionSection

CORE TRAINING & MAINTENANCE OF

PROFICIENCY

DEVELOPMENTAL TRAINING

TOTAL AMOUNT

6 ASO SENIOR MANAGEMENT R 279,500 R655,000 R934,500

12 ADMINISTRATION OFFICERS R 0 R126,000 R126,000

23 FLIGHT OPERATIONS - PART 121 R 918,300 R 400,800 R1,319,100

6 FLIGHT OPERATIONS - PART 127 R 274,500 R243,400 R517,900

13 FLIGHT OPERATIONS - PART 135 R 1,053,300 R350,400 R1,403,700

7 FLIGHT OPERATIONS - PART 64 R 68,450 R 251,400 R319,850

7 AVIATION PERSONNEL STANDARDS - PART 141 R346,500 R78,000 R424,500

14 AVIATION PERSONNEL STANDARDS - TESTING STANDARDS R 396,500 R197,500 R594,000

10 OPERATIONS PLANNING & ADMINISTRATION R0 R357,100 R357,100

4 AVIATION MEDICINE R 91,500 R29,500 R121,000

7 PART TIME INDEPENDENT CONTRACTORS R 334,800 R50,000 R384,800

102 R3,763,350 R2,739,100 R6,502,450

Training – Air Safety Operations

The Air Safety Operations training budget accounts for approximately half of the total training budget, due to the high cost of flying training. Fifty eight percent of the budget is required to provide core training and maintenance of proficiency. Airline Transport pilots and Commercial Pilots with Instrument Ratings are required to undergo proficiency checks every 6 months and license renewals flight tests every 12 months.



Training – Air Safety Infrastructure

This Air Safety Infrastructure training budget has been compiled on Zero Based model. Training of existing employees including that of new employees has been taken into account.



Number of employees to be trained per

courseIntervention Institution Amount Required

10 Airline Security Operations IATA R 400,000

10 Airport Security Operations IATA R 440,000

8 Basic Aviation Security Course IATA R 104,000

3 Instructors Certification ICAO R 54,000

7 Management of Aviation Security IATA R 105,000

4 Managing Aviation Security risk IATA R 126,400

15 National Inspectors ICAO R 281,250

5 Report Writing Skills TBN R 25,000

10 Screener Certification Workshop ICAO R 150,000

2 Security Crisis Management IATA R 30,000

2 Security Quality Control IATA 30,000

3 Senior Aviation Security Management IATA R 150,000

1 Senior Management of Civil Aviation Security IATA R 24,000

6 Air Cargo Security IATA R 90,000

92 R 1,919,650

Training – Aviation Security

The 31 March 2010 training budget was compiled with the input of the General Manager.

The training budget is inline with current inspector numbers including additional inspectors to be recruited as a result of the expected 8% increase in passenger activity.



Financial – Notes to 3 Year Budget

3 year Budget Income Statement (Years 1 to 3)General: Operating Costs increase by 17% 2008/09 FY to 2009/10 FY, driven by the additional staff required for oversight in the approved employment plan. In the following two years, costs increases are in line with projected inflation.Notes to the Statement:1. User fees have been increased by 10% per annum2. The Safety Charge has been increased by multiplying the projected passenger numbers received

from ACSA by the Projected Safety Charge which is R12.00 in Year 1, R12.00 in Year 2 and R13.30 in Year 3. Increased passenger activity in year 2 is due to the hosting of the 2010 FIFA World Cup by South Africa, hence no need to increase the Safety Charge. Approval will have to be obtained from the DoT and Treasury for these increased charges.

3. The General Aviation Fuel Levy has been increased by 10% per annum4. The Dept of Transport Income ceases in Year 2 when the Aviation Safety Investigation Board

becomes totally independent5. Salaries have been increased by 11% per annum and provision made for additional inspectors

and support staff being employed6. Training has been set at 6.5% of Payroll per annum7. Office rentals and maintenance has been increased by the projected annual rental increase of

12% per annum8. Communication (which includes mailing printing and mailing of official documents to all aircrew

and maintenance personnel has been increased by 13% per annum. All expenditure in the Non Staff Category not noted has been increased by 13% per annum

9. Public Relations Expenditure in Year 1 has been adjusted for once-off expensed in 2008 and inflated by 13% in years 2 and 3.

10. Depreciation has been increased by 25% per annum to allow for new CapEx write-off11. International Consultancy fees have been terminated in years 2 and 3 as the ICAO expert work

should have been completed



Financial – 3 Year Budgeted Income Statement



INFORMATION TECHNOLOGY

An exercise to consolidate different activities in various application programs is currently underway. It is expected that finally a system that will include an efficient Master Surveillance Plan, Safety Management System, Quality Assurance, Management Dash Board will be implemented during the 2010 financial year. Such a system will streamline database management systems to facilitate efficient use of technology and resources.

The following slides will indicate the current foot print, road map and the expected outcome. At the time of preparation of this road map, the already mentioned complex systems had not been taken into account as the ideal systems architecture had not been determined.



Current Current I.T. I.T. InfrastructureInfrastructure


IT Infrastructure Road MapIT Infrastructure Road MapHardwareHardware

BackBack--OfficeOffice

Business ApplicatioBusiness Applicationn

Integrated Business Systems LayerIntegrated Business Systems Layer

••Intrusion Prevention Systems for IT Security Intrusion Prevention Systems for IT Security ••Storage Area Network Devices for Disaster RecoveryStorage Area Network Devices for Disaster Recovery••IT Lab for testing systems IT Lab for testing systems

••Operating System, Operating System, Win XP Win XP and Vista, Ms Office 2007and Vista, Ms Office 2007

Office SuiteOffice Suite••Fax to Mail, Mail to Cellphone, Unified Modified Language, Fax to Mail, Mail to Cellphone, Unified Modified Language, ••Microsoft OCS, Microsoft OCS, .Net.Net Compatibility PlatformCompatibility Platform

••AvMedAvMed SoftwareSoftware••Customizing Certification for Customizing Certification for AvAv--SecSec••Business Process Management MethodologyBusiness Process Management Methodology••Enterprise Resource PlanningEnterprise Resource Planning••Customer Relationship ManagementCustomer Relationship Management••EDRMS (EDRMS (SharePointSharePoint, DMS and Workflow process, DMS and Workflow process••Systems Centre Operations ManagerSystems Centre Operations Manager

Hardware requirements will Hardware requirements will depend on future technology, depend on future technology, user and system requirementsuser and system requirements

Training on operating system for Training on operating system for Vista, Office and applications will Vista, Office and applications will be arranged in conjunction with be arranged in conjunction with Human resources Human resources

••Top Layer for all Business ApplicationsTop Layer for all Business Applications••Able to retrieve information through Business Intelligence/DashboardAble to retrieve information through Business Intelligence/Dashboard

Database UpgradeDatabase Upgrade



Customer Relationship Management

Enterprise Resource Planning

ERDMS (Sharepoint, Document Management Software and Workflow process)

Business Intelligence / Dashboards

Business Applications

BACK-OFFICE

Hardware

Local Area NetworkUpgrading Wide Area

Network(ATNS / ISP)

Least Cost Routing

MS Projects

Photo Shop

Internet Explorer Butterworths

ATP

Visio Framemaker

Adobe ProfLexis Nexis Corel Draw

Operating Systems

XP

Microsoft Suite and Other Services

Radical EccairsABC CAA Projects Surveillance AMOCAA

Website ExaminationsLicensing

AircraftRegistry

ATC

In-Magic

Servers Desktop Laptops Printers Scanners Router NTU PABX (VOIP)

Blue Coat(ITS)

UPS (BC)

TAPES (DR) Switch

VIP

Environmental Monitoring

Auto CAD

AvantextWinscribe

Transponder Code

AccidentIncident

SAN Device

Visual Source Safe

UML

Business Integrated Systems Layer

WSUSS System Management Server

Systems Centre Operations Manager

Mail to Cellphone

Fax To Mail

Av-Med

Win Server 2003

Win Server 2008

Vista.Net Compatibility

SQL 2008SQL2005

Business Process Management Methodology

SQL2005SQL 2008

IPS

Av-Sec

Microsoft Office 2007

Ms OCS

BPMM (SOA) SQL 2008

Anti-Virus (IT Security)

Pan Ops Bentley

IT Lab

Upgrade Upgrade //ImplementationImplementation

Upgrade Upgrade NewNewVersion / ModelVersion / Model

5252

Planned Planned I.T. I.T. InfrastructureInfrastructure

IMPLEMENTATION OF STRATEGY

The Balanced Scorecard Performance Management System is the implementation tool

for the Strategy of the SACAA



caa strategic plan 2009-2012

Documents