ATNS presentation Parliamentary Portfolio Committee 16 May 2007

ATNS presentation Parliamentary Portfolio Committee 16 May 2007

presentation outline Q Q about ATNS strategic review 2006/7 ATNS and Africa strategy 2007/8 Q Q Q safety people service delivery financial sustainability positioning

about ATNS Parliamentary Portfolio Committee May 2007

. . quick facts about ATNS Full service Service on contract Total employees Operational ATS staff Total airspace Aircraft movements Capacity FAJS 9 airports 12 airports 789 394 22 000 km 2 645 000 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 Q continuous improvement of our safety performance Q become an employer of choice Q become a performance based service provider Q maintain long term financial sustainability Q position ATNS to secure a continued role in the changing global air traffic management system.

Phases Of Flight Taxiing Take-off Climbing Overflying Cruising Climbing Descending Controlled Airspace Control Zone Control Areas Airways Control Areas Terminal/ Approach Control Aerodrome Control AFIS Descending Holding Letdown Overflying Contol Areas En-Route Sectors Area Control Reporting Points VOR/DME NDB Control Zone Terminal/ Approach Control VOR/DME ILS NDB VOR/DME Communication Landing Taxiing Aerodrome NDB VOR/DME Control VOR/DME Air - Ground - Air Radio & Data Link Navigation ILS NDB VOR/DME & NDB Surveillance Primary Secondary Radar Visual En Route Radar Cover Primary and Secondary ILS NDB VOR/DME Primary Secondary Radar Visual

strategic review 06/07 Parliamentary Portfolio Committee May 2007

. . revenue grown by 15. 5% on average p. a. over the last 5 years Average annual growth rate *As at Mar 07 – To be finalised

…while costs have increased by 13% p. a. over the last 5 years *As at Mar 07 – To be finalised Average annual growth rate

…resulting in profit after tax increasing by 28% p. a. over the last 5 years. . *As at Mar 07 – To be finalised

Tariff increases increased revenue has led us to adequately compensate for capital employed. . . 10. 2% 10. 8% 22. 0% 12. 55% 0. 0% Permission *As at Mar 07 – to be finalised ** IFRS adjusted

CAPEX spend has increased by 18% on average p. a. over the last 5 years

equipment availability has decreased due to equipment upgrades and obsolescence… Target Surv Target Comms Surveillance -Planned downtime - Radar replacememnt programme - Damage to radar Navigation -Replacement of NDBs with VORs Communications -Telkom cable theft and cable damage -Installing domestic VSAT 2005/06 Target Nav

…however is approaching target. . 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. . . Target 2 s

…despite a 3% growth in total air traffic movements annually over the last 5 years *FC includes Mar 2007 projection 5% ave annual increase in traffic growth over the last 2 years

. . licensed ATC staff complement has increased 10. 4% over the last 12 months…

…and retention of air traffic controllers has improved since 2005/2006… * From May 2003 to March 2004

…this has contributed to a plateauing of the incident rate… Target 2. 5

…leaving us 7% short of our Human Capital target… 7. 3% short 18% short

. . HCP a 5 year rolling target. .

. . delivering on our ee targets - we are 3% short of our EE target Target = 51%

staffing improving – however still our major strategic risk… Demand growth Global poaching Continued key staff shortage s Continued recruiting challenge Potential high risk to core operations

ATNS and Africa 06/07 Parliament May 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 ventures with 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

progress? new SADC VSAT network August 2007 SADC VSAT Q Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda Q To be upgraded to meet existing future demands: GNSS, VHF and ATN Q Facilitates 2 million data calls per annum Q Implementation of upgrade underway Q Launch date 13 September 2007 AFISNET Q Interconnected with ASECNA, Afisnet network – connecting SADC with 16 West African states

progress? new North East African network September 2007 NAFISAT Q Satellite network to be installed in North East Africa Q Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen Q IATA and ATNS jointly selected as the service provider Q Equipment acquisition for SADC VSATII and Nafisat systems being done jointly Q Implementation of the system underway Q Launch date 18 October 2007

increased training for our African partners…

… 76% of our external participants were from African countries

A glimpse into the future. . 07/08 and beyond. . Parliament May 2007

ATNS strategic imperatives Q continuous improvement of our safety performance Q become an employer of choice Q retention of core critical skills: atc’s and engineers Q transformation Q become a performance based service provider Q maintain long term financial sustainability Q position ATNS to secure a continued role in the changing global air traffic management system.

. . safety. . Parliament May 2007

. . improve safety ratio. . Q reduce safety ratio to 2. 5 incidents per 100 000 movements; Q 2. 5 global target Q improve the safety management system; Q increase safety awareness Q instill just culture Q standards maintenance and standards oversight Q international best practice audit – international peer review

. . initiate and finalise long range strategic planning. . • 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

. . enhance systems for and oversee risk, security and quality. . . • 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

. . people. . Parliament May 2007

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

. . achieve training excellence… • 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.

. . enhance hr structure … • 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 leadership and management skills… • 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

. . back to basics in SHR… • 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

. . back to basics in SHR… • 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… Parliament May 2007

. . capacity ahead of demand. . • capacity ahead of demand • increase aircraft movements: • • • 5. 4% growth per annum in traffic envisaged going forward 2007/08 – 2011/12 from 56 movements per hour to 60 at FAJS from 28 movements per hour to 30 at FADN

. . our service. . • minimal ATC related delays • equipment availability to exceed ICAO and other targets: • 56 s delay per delayed flight • • • 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

. . 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

…positioning. . Parliament May 2007

new SADC VSAT network to be commissioned August 2007 SADC VSAT Q Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda Q To be upgraded to meet existing future demands: GNSS, VHF and ATN Q Facilitates 2 million data calls per annum AFISNET Q Interconnected with ASECNA, Afisnet network – connecting SADC with 16 West African states

new North East African network to be commissioned September 2007 NAFISAT Q Satellite network to be installed in North East Africa Q Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen Q IATA and ATNS jointly selected as the service provider Q Equipment acquisition for SADC VSATII and Nafisat systems being done jointly Q Tenders issued

. . 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. . Parliament May 2007

Revenue is forecasted to grow by 11% over the next 5 years Average annual growth rate

…while costs are forecast to increase by 11. 7% annually over the next 5 years… *As at Mar 07 – To be finalised Average annual growth rate

…resulting in a forecast profit growth of 8% annually over the next 5 years… Average annual growth rate

…back up… Parliament May 2007

VSAT and ATA external continue to make up the bulk of our non-core revenue Non-core % of core: *As at Mar 07 – To be finalised 5. 4% 4. 7% 4. 9%

the quality of our NEW intakes has improved…

. . . 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 Aerodrome Control Course 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…

…despite the size of pool recruitment levels have increased… *Excluding AIM trainees Note: 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… Ab-inito 35 weeks ATSA ± 12 weeks ATC training 31 – 52 weeks 3 – 6 years ATC 1 - 3 years PATC

…despite this training lead time - 67% of our controllers have more than 3 years experience… Source: Experience calculated based on course dates and not validations