PARLIAMENTARY

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PARLIAMENTARY PORTFOLIO COMMITTEE ON TRANSPORT 6
APRIL 2005 CAPE TOWN
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PRESENTATION CONTENT

• Regulatory Framework
• Staff Profile
• Strategic Intent
• Budget 2005 / 2006

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Regulatory Framework
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HOW AVIATION IS REGULATED
International Treaty Obligations International
Civil Aviation Organization Standards And
Recommended Practices Minister of Transport
Responsible Aviation Acts
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AVIATION ACTS

• Civil Aviation Act
• No. 74 of 1962
• Civil Aviation Offences Act
• No. 10 of 1972
• Convention on International
• Recognition of Rights in Aircraft Act
• No. 59 of 1993

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AVIATION ACTS

• Aviation Acts
• Regulations (CARS CATS)
• Security Regulations (NASP)
• Levies Act
• Allows for implementation of charges

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WHAT DOES THE CAA DO?
Regulate aviation safety and security Oversee
development of the aviation industry Ensure
compliance with aviation legislation Promote
aviation safety and security Investigate and
report Accidents and Incidents
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WHERE DOES THE CAA DO IT?
CAA Regulates Licenses Airports Runways,
Lights, Signage, Obstructions, etc., Airspace Ai
r Traffic Units, Design Instrument Approaches,
Calibration Aircraft Airworthiness,
Certification, Maintenance Organizations Aeronaut
ical Information Services AICs, AIP, Notams
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WHERE DOES THE CAA DO IT?
CAA Regulates and Licenses Personnel Pilots,
Flight Engineers, Cabin Crew, Maintainance
Engineers, Air Traffic Controllers Operations Ope
rator Safety Standards, Management Systems
Security Screening at Airports, Dangerous
Goods, National, Local and Operator Security
Plans, National Security Plan
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COMPLIANCE PHILOSOPHY

• SAFETY CO-OPERATIVE VENTURE
• Not Solely through Policing
• Requires Commitment and Responsibility by ALL
• Voluntary Compliance by Stakeholders
• CAA WILL ENSURE COMPLIANCE Through
• Surveillance, encouragement and promotion
• Enforcement

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ENFORCEMENT

• Mechanisms
• Examination and testing to verify compliance with
  standards
• Suspension of an Aviation License pending other
  action
• Withdrawal / Cancellation of Aviation License
• Fine
• Criminal charges

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ICAO AUDITS
1997 Many findings pertaining to Regulatory
Framework and its implementation 1999
Improved situation and findings pertaining to
skills and levels of staff 2000
Recommendations made regarding further Regulatory
development and implementation 2007 Next audit
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MAJOR DEVELOPMENTS

• Establishment of a Security Department
• International co-operation to harmonize
  Regulations
• Improved regulatory framework
• Significant reduction in accidents
• Staff transformation
• Self-funded, achieved targeted retention
• Increased levels and standards of safety and
  security oversight

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AIRCRAFT REGISTER VS ACCIDENT RATE
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ACCIDENTS BY SECTOR
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Staff Profile
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STAFF PROFILE APRIL 2005
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STAFF PROFILE 2005 / 1998
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GENDER PROFILE 2005 / 1998
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STAFF PLANNING 2005 / 2006
Department Current Vacancies New Total
Company Secretary 3 0 0 3
CEO Office 9 7 4 20
Security 18 11 20 49
Occurrence Investigations 16 3 0 19
Infrastructure 34 7 3 44
Corporate Services 46 14 11 71
Safety Operations 142 15 17 174

TOTAL 268 57 55 380
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Strategic Intent
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THE VISION OF THE CAA
Excellence in aviation safety, security and
industry development
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THE MISSION OF THE CAA

• Ethical enforcement of the regulatory standards
  through partnership and consistent with global
  best practice
• Harmonisation of regional standards
• Facilitating transformation of the aviation
  industry
• Creation of a knowledge-based, customer focused
  organisation
• Function within a sustainable business model

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THE STRATEGIC INTENT

• Develop a framework for leadership in the
  formulation of international regulatory standards
• Create a Financial model that supports a going
  concern
• Develop and implement a comprehensive HR strategy
  in line with the needs of the business
• 4. Establish a regulatory framework that supports
  development and transformation of the Civil
  Aviation industry

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THE STRATEGIC INTENT

• Proactive oversight and enforcement to ensure
  aviation safety and security
• A culture of sound corporate governance
• Develop and implement a comprehensive knowledge
  management system
• Facilitate the establishment of an independent
  Accident and Incident Investigation organization

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Budget 2005 / 2006
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FINANCIAL PROJECTIONS 1998 - 2008
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FOCUS OF THE 2005/2006 BUDGET

• Capacity building to achieve strategic intent
• Anticipated growth in aviation industry
• Alignment of human resources with growth
• Increase in technical expertise
• SA Registered Pilots increased
• Average of 500 per year
• Aircraft register increased
• - Register 2002 7,927
• - Register 2003 8,403
• - Register 2004 8,822
• Average increase per year 445
• Aircraft Maintenance Organizations increased
• Average of 35 per year
• Mortgage transactions increased
• - From 394 in 2002 to 654 in 2004

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FOCUS OF THE 2005/2006 BUDGET

• Capacity building to achieve strategic intent
  (continued)
• Increase in support services
• Establishment of a client service centre
• - Average of 100 clients more per day
• 2. Adherence to ICAO requirements
• Training and development
• 3. Narrow oversight gaps
• Ad hoc / unexpected inspections
• Increased enforcement activities
• Avmed insourcing of designated services
• Testing standards and curriculum development
• Cargo (new) and dangerous goods

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TARGETED RETENTION
Existing funding model 2003 Planned retention
14.8m, Actual retention 1.1m 2004 Planned
retention - 13.7m, Actual retention -
14.80m 2005 Planned retention - 12.2m,
Actual retention 13.70m 2006 Planned
retention - 10.4m, Actual retention -
12.20m 2007 Planned retention - 8.1m,
Actual retention - 8.00m
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TOTAL EXPENSES
2004 2005 2006 2007 2008

Staff Costs 58,95m 76,59m 95,96m 131,95m 142,50m
Operational Costs 27,01m 27,56m 29,49m 31,56m 33,76m
Depreciation 7,71m 8,01m 12,44m 14,83m 18,93m
Strategic Projects 1m 1m
TOTAL 93,67m 112,18m 138,90m 179,34m 195,20m
Increase 21 20 24 29 9
Funding Model 97,05m 104,80m 113,20m 122,25m 132,04m
Variance 3,38m -7,38m -25,70m -57,09m -63,16m
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TOTAL EXPENSES
2004 2005 2006 2007 2008
Staff Costs 58,95m 76,59m 95,96m 131,95m 142,50m
of Total 63 68 69 73 73
Operational Costs 27,01m 27,56m 29,49m 31,56m 33,76m
Depreciation 7,71m 8,01m 12,44m 14,83m 18,93m
Strategic Projects 1m 1m
TOTAL 93,67m 112,181m 138,90m 131,94m 142,50m

Funding Model 97,05m 104,80m 113,20m 122,25m 132,04m
Variance 3,38m -7,38m -25,70m -9,69m -10,46
Net variance 49,85m
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TOTAL EXPENSES
2004 2005 2006 2007 2008

Staff Costs 58,95m 76,59m 95,96m 131,95m 142,50m
Operational Costs 27,01m 27,56m 29,49m 31,56m 33,76m
Depreciation 7,71m 8,01m 12,44m 14,83m 18,93m
Strategic Projects 1m 1m
TOTAL 93,67m 112,18m 138,90m 179,34m 195,20m
Increase 21 20 24 29 9
Funding Model 97,05m 104,80m 113,20m 122,25m 132,04m
Variance 3,38m -7,38m -25,70m -57,09m -63,16m
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TOTAL EXPENSES
2004 2005 2006 2007 2008
Staff Costs 58,95m 76,59m 95,96m 131,95m 142,50m
of Total 63 68 69 73 73
Operational Costs 27,01m 27,56m 29,49m 31,56m 33,76m
Depreciation 7,71m 8,01m 12,44m 14,83m 18,93m
Strategic Projects 1m 1m
TOTAL 93,67m 112,181m 138,90m 131,94m 142,50m

Funding Model 97,05m 104,80m 113,20m 122,25m 132,04m
Variance 3,38m -7,38m -25,70m -9,69m -10,46
Net variance 49,85m
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MAJOR CAPITAL ITEMS

• 2005/2006
• ACAS/TCASII Aircraft R0,50 m
• Furniture and fittings R1,5 m
• Office equipment and Client Service Centre R1
  m
• IT systems R5,5 m
• TOTAL CAPITAL SPEND R8,5 M

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TOTAL REVENUE
2004 2005 2006 2007 2008
TOTAL 119,45 m 132.51 m 146,90 m 188,42 m 200,82 m
Total increase 60 11 11 28 7

User Fees 26 27 28 25 26
Safety Charge 63 59 57 62 61
Fuel Levy 4 4 3 2 2
Interest and Other 2 5 8 7 7
Accidents 5 5 4 4 4
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USER FEES
2004 2005 2006 2007 2008
Revenue 31,076 m 36,926 m 41,726 m 47,151 m 52,809 m
Total increase 17 18 13 13 12
Price increase 12 11 11 11 10
Volume increase 5 7 2 2 2
Funding Model 33 m 37.2 m 41.3 m 46 m 50 m
Variance - 2 m - 0.3 m 0.4 m 1.1 m 2.8 m
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USER FEES
2004 2005 2006 2007 2008
Revenue 31,076 m 36,926 m 41,726 m 47,151 m 52,809 m
Total increase 17 18 13 13 12
Price increase 12 11 11 11 10
Volume increase 5 7 2 2 2
Funding Model 33 m 37.2 m 41.3 m 46 m 50 m
Variance - 2 m - 0.3 m 0.4 m 1.1 m 2.8 m
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PASSENGER SAFETY CHARGE
2004 2005 2006 2007 2008
Revenue 74,89 m 78,39 m 82,31 m 117,60 m 123,48 m
Total increase 100 4,67 5 42.86 5
Price increase R3 R0 R0 R3 R0
Number of pax 12,197m 12,768m 13,406m 13,410m 14,080m
Volume increase 5 4,67 5 5 5
Funding Model 74 m 77,7 m 81.58 m 85.66 m 89.94 m
Variance 0.89 m 0.69 m 0.72 m 31.9 m 33.53 m
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PASSENGER SAFETY CHARGE
2004 2005 2006 2007 2008
Revenue 74,89 m 78,39 m 82,31 m 117,60 m 123,48 m
Total increase 100 4,67 5 42.86 5
Price increase R3 R0 R0 R3 R0
Number of pax 12,197m 12,768m 13,406m 13,410m 14,080m
Volume increase 5 4,67 5 5 5
Funding Model 74 m 77,7 m 81.58 m 85.66 m 89.94 m
Variance 0.89 m 0.69 m 0.72 m 31.9 m 33.53 m
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BUDGET 2005 / 2006
2004 2005 2006 2007 2008

REVENUE 119,45 132,51 146,90 188,42 200,81
- User Fees 31,07 36,92 41,72 47,15 52,80
- Safety Charge 74,89 78,39 82,31 117,60 123,48
- Fuel Levy 4,55 4,45 4,54 4,59 4,64
- Accidents 5,68 6,02 6,5 7,03 7,5
- Other 3,12 6,70 11,80 12,04 12,29

EXPENSES 93,66 112,18 138,90 179,34 195,20
- Staff Costs 58,94 76,59 95,96 131,94 142,50
- Operational 27,01 27,56 29,49 31,56 33,76
- Depreciation 7,71 8,01 12,44 14,83 18,93
- Strategic - - 1,0 1,0 -

SURPLUS 25,78 20,33 8,00 9,08 5,61
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IN CONCLUSION
Regulatory framework of CAA, Staff developments,
comprehensive strategic intent supported by a
sustainable financial model, Further increase in
overall aviation safety and security outcomes
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QUESTION TIME