SOUTH AFRICAN CIVIL AVIATION AUTHORITY STRATEGIC PLAN

SOUTH AFRICAN CIVIL AVIATION AUTHORITY

STRATEGIC PLAN 2012/13 - 17

TABLE OF CONTENTS FOREWORD BY CHAIRPERSON 3 FOREWORD BY DIRECTOR OF CIVIL AVIATION

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OFFICIAL SIGN-OFF 5 PART A: STRATEGIC OVERVIEW 7 1. Situational analysis 7 External Factors 7 2. Legislative and other mandates 15 3. Vision 16 4. Mission 16 5. Values 16 6. Strategic Outcome-Oriented Goals 17 PART B: STRATEGIC OBJECTIVES 19 1. STRATEGIC OBJECTIVES 19 Programme One: Financial Sustainability

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Programme Two: Corporate Governance

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Programme Three: Industry Development and Transformation

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Programme Four: Aviation Safety and Security

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Programme Five: Organisational Capability, Capacity and Culture

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2. RISK MANAGEMENT 24 3. RESOURCE CONSIDERATION 25 PART C: LINKS TO OTHER PLANS

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TURNAROUND STRATEGY 27 CRITICAL SUCCESS FACTORS 29

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FOREWORD BY CHAIRPERSON It is a great pleasure for me to present this Strategic Plan on behalf the South African Civil Aviation Authority. The process of crafting the strategy was inclusive and took into consideration the views and ideas of my colleagues in the Board and the entire Management team of the Authority. We sought to define a strategy for SACAA that is implementable and achievable, taking into account our current industry forces and our internal dynamics. The process yielded a new strategic focus for the organization that provides for a step change in performance. The new vision of the organization, places emphasis on being a “model” regulator, which means striving for excellence will become the “SACAA-Way”. This strategic direction is fully aligned with our legislative mandate as well as our stakeholder’s expectations. Whilst building a capable and capacitated organisation in order to deliver on the mandate is given particular attention, the needs of the industry, global advances in aviation, the role our country must play in promoting aviation safety and security within the SADC region and transformation of the local industry form the crux of the strategy. SACAA exists to ensure that South African skies are safe; accidents in the general aviation sector remain a concern that the strategy will precisely address. Over the next five years, delivery on the following Strategic Goals will ensure that SACCA successfully enhances safety and security of the South African aviation industry: A. To develop, optimize and manage revenue streams and financial management systems. B. Demonstrate that the principles of corporate governance are underpinning the work of every SACAA team member and every SACAA service. C. Influence the breadth and pace of the industry development and transformation agenda. D. Build a continuously improving safety and security (operations, aircraft, aviation security and infrastructure) environment. E. Build a resilient organization with adequate capacity, capabilities and a high performance culture. In addition, during the planning period, we will embark on a turnaround programme that seeks to ensure that SACCA posseses the fundamentals required for organisational sustainability and delivery on mandate.

Yours in Aviation Safety

Phindile Riba Chairperson of the Board

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FOREWORD BY DIRECTOR OF CIVIL AVIATION It is indeed a great privilege to submit the Strategic Plan of the South African Civil Aviation Authority, which is formulated a few months after the newly appointed SACAA Board took office. The appointment of the Board will go a long way in providing stability to the organisation. This strategy outlines SACAA’s contribution to delivery of our Government’s National Outcomes. Specifically, the goals set in this Strategic Plan are aligned to the priorities and deliverables of the Department of Transport as contained in the Department’s Strategic Plan. The key elements emanating from this Strategic Plan include ensuring that the organisation is financially sound; putting our customers at the heart of our business; and enhancing the safety of South African skies. This Strategic Plan provides a compass that will provide direction for the SACAA leadership as they steer the organisation towards a quantum leap in performance. As we embark on a journey to implement the strategy, we will ensure that all the key organisational enablers are in place to promote a high-performance culture. The immediate challenge is to get the organisation’s financial wellbeing into a desirable state. For example, the process of implementing an increase in passenger safety fees needs to be fast tracked, inter alia. The separation of the accident investigation function, through the creation of the Aviation Safety Investigation Board will enable the SACAA to focus on its core mandate of promoting and maintaining a safe, secure and sustainable civil aviation environment. SACAA’s role of enhancing safety and security in compliance with ICAO Protocols and SARPs will be attained through commitment and dedication of SACAA staff. Ultimately, the ambition of ensuring safe and secure South African skies will be feasible and achievable.

Yours sincerely,

Zakhele Thwala Acting Director of Civil Aviation

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OFFICIAL SIGN-OFF It is hereby certified that this Strategic Plan: • Was developed by the management of the South African Civil Aviation Authority under the guidance of the SACAA Board; • Has been approved and endorsed by the Board; • Takes into account all the relevant policies, legislation and other mandates for which SACAA is responsible; and • Accurately reflects the strategic outcome-oriented goals and objectives which SACAA will endeavour to achieve over the period 2012 to 2017.

Phindile Riba Zakhele Thwala Chairperson of the Board Acting Director of Civil Aviation

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PART A:

STRATEGIC OVERVIEW

PART A: STRATEGIC OVERVIEW In considering the trends impacting on the South African Civil Aviation Authority, a number of perspectives were considered, namely, Global trends, African industry dynamics, South African industry trends, and internal organisational challenges. The strategic planning process for the five-year period commencing in 2012/13, was aimed at addressing the impact of these forces to provide the foundation for building a sustainable organisation and a springboard for success into the future.

External Factors Global Trends Aviation provides a powerful impetus for global economic development. A healthy and growing national air transport system provides access to global markets, enables movement of goods & people, and allows social and cultural exchange amongst nations. Moreover, the aviation industry has a meaningful contribution to the global economy, according to the Oxford Economics Publication - Aviation, the Real World Wide Web, the industry: • Constitutes an estimated US$ 3,560 billion (8%) of the global GDP from a turnover of approximately US$ 1 trillion; • Moves over 1.5 billion passengers and 30 million tonnes of freight across the globe annually; • Is a big contributor to tourism, a major engine of economic growth, particularly in developing countries - over 40% of international tourists now travel by air; and • Generates over 32 million jobs globally, through direct, indirect, induced and catalytic impacts. During the past financial year, the industry had to contend with mixed fortunes namely, enduring recovery of the global economy following a double dip recession; demand diminution as a result of a number of tragic natural disasters suffered in various parts of the globe; and pressure on industry margins as a result of political unrest, leading to fuel price increases. That said the industry’s outlook is positive, ICAO’s 20-year forecasts for aviation estimated that the number of commercially operated aircraft would jump from about 62,000 in 2011 to some 152,000 in 2030. During the same period, the number of aircraft movements should jump from 26 million to about 52 million, annually. IATA reported that in 2011, the aviation industry profit margins would continue to be squeezed although there has been some recovery in the outlook for profitability in the 12 months ahead. There was a sharp decline in industry confidence, driven by expectations of further escalation in fuel prices and demand shocks due to events in the Middle East, North Africa and Japan. While fuel prices remain high, expectations of further sharp increases have dissipated and traffic demand remains strong, helping to drive the pick up in sentiment on future profitability.

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While both cargo and passenger demand continued to improve during the second quarter of 2011, the trend is flattening due to weakening demand-supply conditions and concerns that markets may not bear further fare/rate increases.

Safety and security in this industry is by far, the most important factor for success and sustainability. Civil aviation authorities provide the mechanism by which nations ensure the safety of their skies through safety and security regulation. When a regulator cannot keep pace with the industry it oversees, aviation safety will be compromised. Thus, civil aviation authorities need to ensure that they have the necessary human, financial and technological resources required to ensure effective oversight for a rapidly evolving industry. Challenges faced by some States with regards to a secure, safe and orderly growth of civil aviation cannot be met in isolation, which has resulted in emergence of regional fora and organisations to drive attainment of safety and security imperatives. Environmentally sustainable aviation is gaining momentum. For example The 17th session of the Conference of Parties (COP) guided by United Nations Framework Convention on Climate Change (UNFCCC), will be held in Durban in November 2011. COP17 seeks to advance, in a balanced fashion, the implementation of the Convention and the Kyoto Protocol, the Bali Action Plan, agreed at COP 13 in 2007, and the Cancun Agreements, reached at COP 16 last December. The framework and guidelines flowing from COP17 will oblige signatory nations to implement programmes to meet global climate change initiatives, as they pertain to civil aviation.

African Industry Dynamics African aviation industry has achieved good growth rates in the past decade. Air travel is essential to the African continent to drive economic growth, job creation and tourism. However, to exploit aviation’s full potential in the region, all role players must ensure that it is secure, safe and sustainable. According to studies conducted by Africa Infrastructure Intercontinental, air traffic in on the continent relies heavily on the three major hubs of Johannesburg, Nairobi, and Addis Ababa. These countries act as gateways to the continent, with Johannesburg carrying the greatest traffic. Source: Africa Infrastructure Country Diagnostic - Challenges to Growth in Africa’s Air Transport Industry

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Africa has a fragmented and inadequate road infrastructure that limits the continent’s ability to connect via land transportation. Air travel and transportation is a logical solution to circumvent this challenge. Further investment is required for infrastructure development and improvement of safety and security. The continent still suffers from poor safety ratings; according to IATA, Africa had an accident rating of 7.41 in 2010, demonstrating a 25% improvement compared to 2009 but still more than 12 times the world average. Although there has been steady progress, a lot remains to be done. Whilst African carriers that completed IATA Operational Safety Audits (IOSA) boasted safety record 46% better than non-IOSA members, no single country can celebrate it’s achievements if the same cannot be said of the continent as a whole. Poor safety statistics hurt the continent as a whole. Unfortunately, there is no single solution to the African safety issue because there is a multitude of issues to contend with. For example, heightening demands for environmental protection, lack of a safety culture, lack of resources, a growing skills gap, poor infrastructure, and inadequate safety oversight capacity must be addressed concurrently. In addition, implementation of safety management system by carriers and regulators needs to gain momentum to fully utilise the capabilities of the system. Africa needs a united approach in addressing it’s safety and security challenges, the regional aviation safety and security programme currently being debated in SADC requires strong leadership and commitment from all African nations to make a noticeable impact towards implementation of a single coherent safety strategy for the continent. Progress has been made towards this ideal, for example, the Co-operative Development of Operational Safety and Continuing Airworthiness Program (COSCAP) is such an initiative. COSCAP aims to “enhance the safety and efficiency of air transport through the establishment of self sustaining sub regional corporative entities providing technical services in safety oversight to member states”. In addition, workgroups have begun work on harmonisation of regulation in the SADC region, which would bring great benefits in promoting aviation safety in the region.

South African Industry Trends Aviation industry activity in the country is vigorous, with two new airlines launched since last year, Velvet Sky and Santaco Airline. Sustained economic growth and a growing middle class are maintaining the positive outlook for the local industry. Seven major domestic airlines operate in South Africa. These include the full-service carriers South African Airways, British Airways the low-cost carriers kulula.com, Mango and 1 time, and the smaller regional carriers such as SA Express. A number of smaller charter airline companies also operate in this market. The recent growth in passenger numbers and aircraft activity can be attributed to the price war that has ensued in this industry over the past few years, the increase in disposable income and aggressive marketing efforts undertaken by the Low Cost Carriers (Kulula, Mango, 1time and recently, Velvet Sky). However, should airport charges increase drastically the market may shrink my as much as 70% as low cost travel becomes unaffordable to the emerging market. South Africa has experienced an increase in total departing passengers for 2010 - 2011, with year-on-year traffic showing a positive increase of six percent compared to the previous year. This improvement in traffic is attributable to the global economic recovery and the 2010 FIFA World Cup.

Source: ACSA Annual Report 2011 9

According to Airports Company South Africa traffic volumes for the South African airport network are projected to grow by 5% to 8% in the number of passengers and in aircraft movement. With developed markets struggling under debt crisis, tourists are making emerging markets their holiday destination. The positive outlook for the local industry further challenges SACAA to ensure that it has the necessary capacity and capabilities needed to match the growing industry. Furthermore the National Department of Transport in its 2010-13 Strategic Plan, has outlined at least three National Outcomes that SACAA contributes to in order to advance the development of the transport sector in South Africa, namely: • Outcome2: • Outcome 5: • Outcome 6:

A transport sector that is safe and secure; Increased contribution to job creation; and Increased contribution of transport to environmental protection.

The SACAA needs to consider the external environment and adequately plan for mitigating any risks it poses to its functions. During the planning process, factors affecting the organisation from an external perspective were reviewed and impact on the organisation explored.

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PESTLE ANALYSIS

PESTLE ANALYSIS

In seeking a comprehensive understanding of the organisation’s challenges, an analysis of key external influences was undertaken. Importantly, the impact of these factors on SACAA was evaluated. The tables In seeking a comprehensive understanding of the organisation’s challenges, an analysis of key external influences was below highlight the key factors and impact thereof. undertaken. Importantly, the impact of these factors on SACAA was evaluated. The tables below highlight the key factors and impact thereof. +: Positive, -: Negative, 0: Neutral +: Positive, -: Negative, 0: Neutral

Political Factors

Revisions and amendments to economic development strategies such as the millennium goals (2014), the New Growth Path and IPAP2

Impact on SACAA’s Business

Impact

Emphasis on the creation of decent employment;

+

Transformation and development of the industry including regulatory advocacy to encourage new entrants into the industry;

+

Requirement to encourage and facilitate research and development in the local aviation and aerospace industry; and

-

Regional harmony and integration.

+ Change in policy due to the possible review of organs of state and the outcome(s) from the ANC conference 2012

Developments in Arab states and Europe

Possible mandate & scope change or and perhaps a split in functions.

0

Impact on oil price will put pressure on industry margins and SACAA’s revenue streams; and

-

Reduced tourism into Europe and increase in Africa as a destination could be positive for SACAA’s revenue.

+

Inclusion of South Africa in BRICS and the rapid growth of the Chinese and Indian economies

SACAA must explore cooperation opportunities in the sphere of aviation industry developments and expand awareness of being the gateway into Africa.

+

Government call to keep aviation charges down

Put pressure to SACAA’s revenue streams.

-

Economic Factors


Double dip recession and the EURO debt crisis

Reduced air travel traffic and thus a reduction in revenue.

Increase in competition in domestic markets and entrants of new players

Increase in safety audits; Increased demand for aviation skills and other SACAA resources; and Impact on revenue streams.

Impact

0 +

Increasing oil prices result in an increase in cost of air travel

Decrease in revenue

-

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Social Factors


Labour union strikes

Negative impact of aviation industry activity.

-

High illiteracy and unemployment levels, and high levels of poverty

Pressure for creation of jobs to address high demand for skills in industry, to maintain a healthy pipeline.

+

Slow transformation of the industry

Inability to meet Transport Charter requirements.

-

Increase in revenue due to an increase in passenger numbers;

+

Increase in recreational aviation and demand for better regulations and safety reporting.

0

Growing middle class and related demand for air travel

Technological Factors


Rapid advances in aircraft and aerospace technology

New developments and technologies will require different skill sets within SACAA; Anticipate new technologies such as the unmanned aircraft systems as they require safety and security oversight; and Introduce new regulations and guidelines applicable to new technologies.

Glass-cockpit syndrome

Loss of practical skills.

Legal (and Regulatory) Factors


The Act is in conflict with a number of key pieces of legislation – such as the Constitution; PFMA; and Statutes governing ATNS, ACSA, Air Licencing Council and Economic Regulator.

Grey areas amongst various entities; and Ambiguity with respect to accountability and co-ordination of mandate. Possibility of a single DoT regulator would change the role and constitution of SACAA

Impact

Impact

+ + + Impact

-

-

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Environmental Factors Climate change (drastic change in weather patterns) and natural disasters Emissions regulations

COP17 resolutions


Impact

Reduced air travel traffic and thus a reduction in revenue; and

-

Climate change and natural disasters (i.e. volcanic eruptions, earthquakes) may put pressure on the aviation industry and general air travel.

-

SACAA may have to impose restrictions on ‘older’ aircraft; and

+

Increase in aviation charges possibly resulting in fewer passengers.

-

Implementation of COP17 commitments on the implementation of the Convention and the Kyoto Protocol, the Bali Action Plan, agreed at COP 13 in 2007

+

In conclusion, the findings from PESTLE opportunitiesinin following areas: In conclusion, the findings from PESTLEanalysis analysisreveal reveal opportunities thethe following areas: • • • • • • •

Establishment of a robust model that is able sustain the SACAA mandate through economic cycles; • Establishment of a revenue robust revenue model that istoable to sustain the SACAA mandate through Robust economic management information and risk management capabilities; cycles; Strengthening efforts in promoting and and investing in aviation skills development to enable the growth of the • Robust management information risk management capabilities; industry; • Strengthening efforts in promoting and investing in aviation skills development to enable the Deliverygrowth against the industry; role that the organisation must play in promoting and developing harmornised civil of the aviation activities and civil safetymust and play security within theand SADC region; harmornised • Delivery againstpromoting the role that theaviation organisation in promoting developing Deliverycivil against environmental as conducting industry awareness campaigns on scheduled aviation activities andobligations promoting such civil aviation safety and security within the SADC region; emissions deadlines, regulations and the impact thereof; • Delivery against environmental obligations such as conducting industry awareness campaigns on Strengthening the emissions legislationdeadlines, for optimal operationand of the and scheduled regulations theSACAA; impact thereof; • Strengthening forand optimal operation of thetoSACAA; Engaging stakeholdersthe in legislation a proactive meaningful manner advanceand the growth of the industry. • Engaging stakeholders in a proactive and meaningful manner to advance the growth of the industry.

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Organisational Perspective

Organisational Perspective

South Africa as a signatory to the Chicago Convention of 1944, is a member of the International Civil Aviation Organization (ICAO), and thereby bound by the 8 ICAO Annexes and Standards & South Africa as a signatory to the Chicago Convention of 1944, is a member of the International Civil Aviation OrganizaRecommended (SARPs) contained process Practices included(SARPs) a review of the tion (ICAO), andPractices thereby bound by the 8 ICAO therein. AnnexesThe andstrategic Standardsplanning & Recommended contained business to strategic identify planning areas for improvement build ofantheaviation able to fulfil itstofunction therein. The process included atoreview businessregulator to identify that areasis for improvement build an within the aviation industry value chain. aviation regulator that is able to fulfil its function within the aviation industry value chain.

SWOT ANALYSIS STRENGTHS    

 

South Africa has a Cat1 Status in terms of the 8 critical ICAO elements. Visible industry enforcement and improved scope and depth of inspections Regional & International participation to promote aviation safety ICAO recognition for SA leading role in Avmed in Africa as a centre of excellence Universal Safety Oversight Programme (USOAP) Audit was above world average in all 8 Safety Critical areas. Safety programmes and regulations in place to ensure the successful implementation of industry Safety Management System (SMS).

WEAKNESS      

Lack of integrated IT infrastructure to coordinate and analyze oversight outcomes. Lack of rigorous performance management and productivity measurement. Poor information management capabilities Sub-optimal revenue model Sub-optimal human resources management processes Substandard inspectorate knowledge on legal matters

OPPORTUNITIES      

Leadership in regional aviation safety oversight integration Creation of National Aviation Academy to address transformation Strengthening of legal framework to enable industry innovation and growth Inclusion of cargo fees in the revenue model Implementation integrated aviation safety management system Effective stakeholder engagement

THREATS    



IT security (Inherent risk) Skills drain in technical sectors African safety record. SACAA Act is not aligned to other key pieces of legislation and leaves grey areas in terms of roles of other Transport agencies Stakeholder engagement and industry co-ordination

In order for SACAA to effectively discharge it’s mandate, a strategy that addresses the external and organisational chalIn order for SACAA to effectively discharge it’s mandate, a strategy that addresses the external and lenges outlines above was developed. organisational challenges outlines above was developed.

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ACTING DCA SIGNATURE

Aviation Medicine

Aircraft Airworthiness

NAME IN BLOCK LETTERS

Z.G THWALA

Flight Operations Standards

Aircraft Certification

Projects

DATE

Aviation Personnel Standards

General Manager: Air Safety Operations

General Manager: Aircraft Safety

Executive Manager: DCA Office

Accident & Incident Investigation

Executive Manager: Accident & Incident Investigation (Vacant)

Safety Advisory Committee

Senior Management Structure 07 October 2011

BOARD CHAIRPERSON SIGNATURE

NAME IN BLOCK LETTERS

Information Technology

Information Management Airports & Airlines

Facilities & Procurement

Client Services, Licensing & Examinations Dangerous Goods & Cargo Aerodromes & Facilities

Flight Inspection Unit

Finance

Risk Quality & Compliance

Training and Certification

General Manager: Finance

Air Navigation Service

General Manager: Risk & Compliance

General Manager: Aviation Security

Executive Manager: Legal

CAA BOARD

Chief Audit Executive: Internal Audit

Minister of Transport

General Manager: Air Safety Infrastructure

Corporate Communications & Marketing

Director of Civil Aviation (DCA) (Vacant)*

The management structure of SACAA as of the 31st March 2011 is outlined below.

Organisational Structure

DATE

Human Resources, Training and Development

Executive Manager Human Resources

Company Secretary

2. LEGISLATIVE AND OTHER MANDATES The South African Civil Aviation Authority was established on the 1st October 1998 following the enactment of the South African Civil Aviation Authority Act. The South African Civil Aviation Authority is an agency of the Department of Transport. The Act provides for the establishment of a stand-alone authority mandated with promoting, regulating, supporting, enforcing and continuously improving levels of safety and security throughout the civil aviation industry. The above is to be achieved by complying with the International Civil Aviation Authority (ICAO) Standards and Recommended Practices (SARPs) whilst considering the local context. This mandate relates to aviation safety and security oversight of airspace, airports, aircraft, operations and personnel. In discharging the mandate, SACAA’s role encompases: • Regulation - Developing and promoting appropriate, clear and concise regulatory requirements, and technical aviation safety and security standards; - Formulating and approving supporting regulations and technical standards through a consultative process with the aviation industry in terms of section 156 of this Act; and - Overseeing and regulating the flight inspection of navigational aids to aviation. • Aviation Security, Aircraft Safety and Air Safety - Developing effective enforcement strategies to ensure compliance with aviation safety and security standards; - Conducting regular reviews of the system of civil aviation safety and security - The enhancement of aviation security by the development and dissemination of progressive administrative and technical practices, promoting their use by security services, airport administrators and air service operators; - Reviewing and ensuring the adequacy of security programs and associated documentation produced by airports, air service operators and cargo operations, monitoring their implementation to ensure continuing effectiveness and incorporation of amendments as required; - Conducting comprehensive aviation industry surveillance, including assessment of safety and security related decisions taken by industry management at all levels for their impact on aviation safety and security; - Monitoring, implementing and enforcing the National Aviation Security Program (NASP); - Conducting regular and timely assessment of international safety and security developments; and - The formulating of a national aviation disaster plan. • Stakeholder Management - Encouraging a greater acceptance by the aviation industry of its obligation to maintain high standards of aviation safety and security, through: • comprehensive safety and security education and training programs; • accurate and timely aviation safety and security advice; & • fostering an awareness in industry management, and within the community generally, of the importance of aviation safety and security and compliance with relevant legislation. - Promoting communication with all interested parties on aviation safety and security issues; and - Issuing certificates, licenses, registrations and permits.

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3. VISION To be a model enabler ensuring sustainability in a safe, secure, and environmentally complaint aviation industry To be a model enabler of a safe, secure and sustainable aviation environment and industry To be a model enabler ensuring sustainability in a safe, secure and environmentally friendly aviation industry

4. MISSION To oversee and regulate civil aviation safety and security, inline with international standards; To foster an environmentally friendly aviation industry; To minimize the impact of the aviation industry on the environment; and To promote transformation and development of the industry in a sustainable manner.

5. VALUES VALUES Commitment

Integrity

Customer Focused

Collaboration

Accountability

BEHAVIOURAL ATTRIBUTES Demonstrate a genuine shared vision of the organization, through our high quality performance and service that we deliver to our stakeholders consistently. Maintaining high ethical standards and approaching issues professionally without any bias and in a transparent manner that solicits trust amongst all our stakeholders. Ensure that each of our Customers will receive high quality Customer Service and an experience of our organisation that will exceed their expectations on each and every interaction. Recognize that through partnerships with various stakeholders, we will create new opportunities, building mutually beneficial relationships, whilst generating better decisions for SACAA. We are answerable to successes and failures of our actions and seek not to unduly apportion blame to others.

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6. Strategic Outcome-Oriented Goals Goals 6. Strategic Outcome-Oriented

In response to the industry dynamics and strategic challenges outlined in the Situational Analysis above, the strategic focus for SACAA during the 2012/13 – 17 planning period will be maintaining delivery on In response the industry dynamics and strategic challenges in the Situational Analysis above,&the strategic mandate whilst todriving organisational sustainability, from aoutlined financial, organisational capability capacity focus for SACAA during the 2012/13 – 17 planning period will be maintaining delivery on mandate whilst driving as well as corporate governance perspectives. In addition, this strategy proposes a turnaround programme organisational sustainability, from a financial, organisational capability & capacity as well as corporate governance that seeks to renew the organisation, through targeted, high impact initiatives. perspectives. In addition, this strategy proposes a turnaround programme that seeks to renew the organisation,

through targeted, highaimpact initiatives. The table below outlines summary of strategic goals for 2012/13 – 17 as well as the strategic objectives that would be key in driving each. These strategic goals inform the programmes of the South African Civil The table belowfor outlines a summary of strategic goals for 2012/13 – 17 as well as the strategic objectives that Aviation Authority the afore-mentioned planning period. would be key in driving each. These strategic goals inform the programmes of the South African Civil Aviation Authority for the afore-mentioned planning period.

DoT Outcomes

Strategic Goal

Organizational enabler for effective strategy execution

To develop, optimize and manage SACAA’s revenue streams and financial management systems.


Demonstrate that the principles of corporate governance are underpinning the work of every SACAA team member and every SACAA service.

Strategic Objectives  

Optimized revenue streams Enhanced financial management processes, systems and controls



Attain zero external audit findings Well-managed / mitigated internal risks Corporate reporting in line with applicable statutes and regulations. Equitable and successfully implemented BBBEE plan Harmonized industry development and transformation initiatives

  

Outcome 5: Increased contribution to job creation

Outcome 2: A transport sector that is safe and secure & Outcome 6: Increased contribution of transport to environmental protection.

Influence the breadth and pace of the industry development and transformation agenda.



 Build a continuously improving safety and security (operations, aircraft, aviation security, infrastructure) environment.

 


Build a resilient organisational capacity, capability with a high performance culture

 

Continuously review regulations for alignment, application, relevance and benchmarking Establish a safety and security systems audit capacity Become an employer of choice Establish a high performance culture Establish an stable but flexible organizational structure

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PART B:

STRATEGIC OBJECTIVES

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Board Approval by 30 Sep 2012 Treasury Endorsement of by 15 Dec 2013 No repeat SCM findings and 10% reduction in total findings by 31 Mar 2013 No significant FM findings and 10% reduction in total findings by 31 Mar 2013

LINK/DEPENDENCIES

Enhanced financial management processes, systems and controls

Optimised revenue streams

EXCO approval of plan by 31 Mar 2012

No repeat AG SCM audit findings by 31 Mar 2012

No repeat FM AG audit findings by 31 Mar 2012

Performance against Revenue Model Roll-out Plan

Number of AG SCM noncompliance findings

Number of significant financial management (FM) AG findings

Efficient mix of revenue streams

Best Practice SCM processes

Efficient Financial management processes

Within 10% of Implementation Plan by 31 Mar 2015 No repeat SCM findings and 10% reduction in total findings by 31 Mar 2015 No significant FM findings and 10% reduction in total findings by 31 Mar 2015

No repeat SCM findings and 10% reduction in total findings by 31 Mar 2014 No significant FM findings and 10% reduction in total findings by 31 Mar 2014

TARGET(S) 14/15

Within 10% of Implementation Plan by 31 Mar 2014

STRATEGIC GOAL 1: To develop, optimise and manage revenue streams and financial management systems. OUTCOME: Financial viability and sustainability STRATEGIC Baseline OUTPUTS INDICATORS OBJECTIVES (2011/12) 12/13 13/14

Programme One: Financial Sustainability

1.

PART B: STRATEGIC OBJECTIVES

< 3 significant FM AG findings per annum

< 3 significant AG SCM findings per annum

Completion of Implementation by 30 Jun 2016

15/16

<3 significant FM AG findings per annum

< 3 significant AG SCM findings per annum

Report on the Review of Model by 31 Mar 2017

16/17

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LINK/DEPENDENCIES

Corporate reporting

Well-managed risks & internal controls

Accurate and relevant annual corporate performance reporting

Effective Internal Audit and Risk Management

AG Audit Opinion

Number of Internal Audit findings

No repeat significant findings & 10% Reduction in total findings by 31 Mar 2013




Unqualified AG audit report for 31 Mar 2013

Number of 11/12 audit findings by Internal Audit set baseline at 31 Mar 2012 Unqualified Performance AG audit report for 31 Mar 2012




STRATEGIC GOAL 2: Demonstrate that the principles of corporate governance are underpinning the work of every SACAA team member and every SACAA service. OUTCOME: Compliance to legislative requirements; adherence to internal controls; acknowledged for sustainability achievements and corporate social entrepreneurship. TARGET(S) STRATEGIC Baseline OUTPUTS INDICATORS OBJECTIVES (2011/12) 12/13 13/14 14/15 15/16

Programme Two: Corporate Governance


16/17


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LINK/DEPENDENCIES

Development initiatives are harmonised with relevant stakeholders

Equitable and successfully implemented BBBEE plan

80% participation on ICAO initiatives in AFI region 80% participation on ICAO initiatives in SADC region

Base line being participation for year ending 31 March 2012

DoT Outcome 5: Increased contribution to job creation

Level of participation

Level of participation

Stakeholder survey

Improved Stakeholder relationships Increased participation inAFI region initiatives Established regional (SADC) corporation oversight capacity

Achievement of Public Sector Employment Equity targets Survey conducted on stakeholders by 31 Mar 2012 Base line being participation for year ending 31 March 2012

Achievement of Public Sector Employment Equity targets

Implemented EE Plan Survey conducted by 31 August

BBBEE Verification by 31 March 2012

Achievement of Public Sector BBBEE targets

3 yr BBBEE strategy implemented

Performance against Public Sector BBBEE targets by Mar 2013 Achievement of Public Sector Employment Equity targets



80% participation on ICAO initiatives in SADC region

80% participation on ICAO initiatives in AFI region

2% rating Improvement



2% rating improvement%

STRATEGIC GOAL 3: Influence the breadth and pace of the industry development and transformation agenda. OUTCOME: Acknowledged as model of good practice in the aviation industry in the areas of development and transformation. TARGET(S) STRATEGIC Baseline OUTPUTS INDICATORS OBJECTIVES (2011/12) 12/13 13/14 14/15

Programme Three: Industry Development and Transformation



2% rating improvement%

15/16




1% rating improvement

16/17

Performance against Public Sector BBBEE targets Mar 2017 Achievement of Public Sector Employment Equity targets

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LINKS

Regulate, Promote and Oversee Civil Aviation Safety and Security

Progresses against Business Process Optimisation Plan

Progress against MIS roll out plan

Variance to plan taking into account industry movement

Progress against Plan

Progress against Aviation Environmental Protection (AEP) program Board approved Environmental Protection Plan by March 2012 Baseline established 31 March 2012 Board Approved IT Strategy and Plan by 31 March 2012 Board approved business process optimisation plan 31 December 2011

10% variance against plan by 31 Mar 2013


Development of Environmental regulations by 31 March 2013 10% variance against plan by 31 Mar 2013


n/a



n/a

CARs and CATS aligned to New SACAA Act by 31 March 2014

All findings closed

DoT Outcome 2: A transport sector that is safe and secure Dot Outcome 6: Increased contribution of transport to environmental protection

Optimised business systems and processes

Alignment with Conference of Parties 17 /DoT Guidelines on environment Annual Audits conducted according to MSP Established Management Information System (MIS)

Managed aviation impact on the environment

EAP Framework Approved by 31 March 2012

SACAA Act amendements submitted by 31 March 2012

Submission of SACAA Act amendments to DoT by 31 March 2012

Reduced exemptions

Compliance to ICAO

Board Approved AEP Framework by 31 March 2012

10 Variance Progress against plan

Approved Corrective Action Plan by Board by 31 Dec 2011

Progress against Corrective Action Plan

ICAO Universal Security Audit Program findings resolved

n/a

n/a



n/a

n/a

n/a

At least 5% improvement on enforcement statistics based on historical data (Annually)



Establishment of Enforcement base line statistics by 31 March 2012

Improved General Aviation oversight capacity

MSP Informed by industry risk profiling 31 Mar 2015


Industry profiling implemented by 31 Sept 2013

All MSP standardised by 31 March 2012

Standardised risk based Master Surveillance Plan (MSP) Reduced in number of accidents per annum

Established independent AIID advisory committee by 31 Mar 2012

Safety Advisory Board recommendations implemented

80% of implementable Safety Recommendations implemented by 31 Mar 2015



n/a

n/a



n/a

n/a

n/a




STRATEGIC GOAL 4: Build a continuously improving safety and security (operations, aircraft, aviation security, and infrastructure) environment. OUTCOME: International acknowledgement for consistent high performance in safety and security. TARGET(S) STRATEGIC Baseline OUTPUTS INDICATORS OBJECTIVES (2011/12) 12/13 13/14 14/15 15/16

Programme Four: Aviation Safety and Security

n/a

n/a



n/a

n/a

n/a


MSP Informed by industry risk profiling 31 March 2017


16/17

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LINKS

Establish an organisational structure that enables delivery of strategy

Establish a high performance culture

Become an employer of choice


10% variance against Development plan by 31 Mar 2014


Board Approved Workforce Skills Development Plan by 31 March 2012

Training and development in line with the business strategy

Capable workforce

n/a

Implementation of new structure by 31 March 2013

Board Approved Organisational Structure by 31 September 2012

Deploy right roles at the right time

Optimal organisational capacity


10% variance against plan by 31 Mar 2013 10% variance against plan by 31 Mar 2014


Improve 2 positions on previous year’s rating by 31 March 2014 20% of red issues addressed by 31 March 2014 5% reduction YoY by 31 March 2014

13/14



12/13

Implementation of plan by 31 March 2013

Board approved succession implementation plan by 31 March 2012 FAC approved Compensation plan by 31 March 2012

Baseline set on 31 March 2012

Culture Survey Rating by 31 March 2012

First result of Employer of Choice Survey Rating by 31 March 2010

Baseline (2011/12)

Board Approved Performance Management System by 31 March 2012

Clear and well understood performance deliverables and rating process

Appropriate reward structure

Effective Performance Management System

Effective Talent Management

Annual staff turnover rate

Reduction in staff turnover Progress against succession implementation plan

Employee Culture Survey Rating

Employer of choice rating

In top 50 of the annual Employer of Choice Survey

Conducive organisational culture

INDICATORS

OUTPUTS


n/a





TARGET(S) 14/15

STRATEGIC GOAL 5: Build resilient organisational capability and capacity that embrases a high-performance culture. OUTCOME: Adequately resourced organisation for strategy implementation

Programme Five: Organisational Capability, Capacity and Culture


n/a




15/16



n/a




16/17


RISK MANAGEMENT 2. RISK MANAGEMENT

table below outlines thekey key risks risks that of each of the above and The The table below outlines a alistlistofofthe that may mayaffect affectthe therealisation realisation of each of Programmes the Programmes mitigation plans for the respective risks: above and mitigation plans for the respective risks:

NUMBER

1

2

3

4

5

Risk  Financial sustainability of SACAA compromised as a result of volatile revenue streams  Poor management of fraud  Inadequate financial management processes, systems and controls  Breakdown of internal processes and controls  Qualified performance audit opinion  Delayed transformation of the aviation sector  Deterioration of Safety and Security levels in AFI & SADC  Deterioration of national aviation safety and security levels  Exemptions may become the norm rather than the exception  Non- Compliance with International environmental & sustainability initiatives  Reputational risk due to decisions based on incorrect statistics  Organization will not have the right skills at the right place at the right time for effective execution of strategy

Mitigating Action  Implementation of a new revenue model that is not reliant on a single income stream  Regular internal audits, monitoring and evaluation  Strengthening financial management systems  Implementation of improved business processes and systems  Implementation of integrated information management systems  Implementation of corrective action plans  Development and implementation of BBBEE plans that address transformational imperatives  Increased participation regional safety and security oversight and in AFI and SADC region  Implementation of Safety Advisory Board Recommendations  Enforcement of regulations  Effective oversight processes  Implementation of COP /DoT guidelines  Improved risk based oversight in General Aviation 

Implement initiatives geared towards delivering a capacitated, capable organisation.

25

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Financial resources that are required for implementation of the strategy are depicted in the table below.

Successful implementation of the strategy is dependent on the resources the organisation will have at its disposal, including financial, personnel, infrastructure, etc. Furthermore, SACAA is committed to addressing all internal factors, which may directly or indirectly impact it’s ability to meet it’s set targets, such as technology, people and processes.

3. RESOURCE CONSIDERATION

PART C:

LINKS TO OTHER PLANS

PART C: LINKS TO OTHER PLANS

PART C: LINKS TO OTHER PLANS

TURNAROUND STRATEGY

“Business as usual” would notTURNAROUND be adequate toSTRATEGY address the strategic challenges SACAA faces as outlined in the situational analysis above. The Board and EXCO are aligned in the view that SACAA needs to drive a holistic turnaround programme with expedience. The turnaround would address the fundamentals required “Business as usual” would not be adequate to address the strategic challenges SACAA faces as outlined in the situfor organisational sustainability and discharging its mandate. The organisation has in the past paid more ational analysis above. The Board and EXCO are aligned in the view that SACAA needs to drive a holistic turnattention to its core operational delivery, evident in the exceptional levels of compliance with ICAO around programme with expedience. The turnaround would address the fundamentals required for organisational standards, with little effort being made to build the organisation that must maintain and sustain these sustainability and discharging its mandate. The organisation has in the past paid more attention to its core operaachievements. Monitoring ongoing delivery of SACAA’s core mandate is outlined in the programmes in tional delivery, evident in the exceptional levels of compliance with ICAO standards, with little effort being made to Part B, above. build the organisation that must maintain and sustain these achievements. Monitoring ongoing delivery of SACAA’s coreturnaround mandate isprogramme outlined in the programmes in Part above. The is aimed at building theB,foundation for organisational sustainability. The Board will manage the turnaround programme through its subcommittees, with sponsorship by Chairs of relevant The turnaroundto programme is aimed at building the foundation for organisational sustainability. The Board will subcommittees ensure strategic leadership. manage the turnaround programme through its subcommittees, with sponsorship by Chairs of relevant subcommittees to ensure strategic leadership. Turnaround Pillars

Turnaround Pillars

Organisational Renewal and Capacity Building

Revenue Model Enhance-ment

Industry Transforma-tion & Development

Operating Model Redesign

Customer Service Delivery

Stakeholder Engagement, Marketing and Communication

Strategic Initiatives for each of the pillars will be driven by the organisation in the coming fiscal, to provide traction and maintain momentum for the turnaround.

Strategic Initiatives for each of the pillars will be driven by the organisation in the coming fiscal, to provide traction and maintain momentum for the turnaround.

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SACAA STRATEGIC PLAN 2012/13 – 2016/17

25 | P a g e

Turnaround Pillar

Strategic Initiatives

Organisational Renewal and Capacity Building

1.Drive culture change in line with the organisation’s values and required behaviours, mobilisation and communication. 2. Map capacity and capability requirements and develop and deploy a plan for fulfillment.

Revenue Model Enhancement

3. Revise and implement revenue model to optimise & expand revenue streams. 4. Review pricing strategy for all SACAA’s products and services informed by a robust activity-based costing model. 5. Develop and deploy the financial system’s management & controls improvement strategy and plan. 6. Develop and implement a cost containment plan.

Industry Transformation and Development

7. Develop and implement industry transformation strategy with clear initiatives including, harmonising efforts with relevant government departments and stakeholders, raising awareness of opportunities within the aviation sector, promote the aviation charter (aviation sub-charters) and development of Aviation Academy.

Operating Model Redesign

8. Design operating model to enable deployment of strategy and drive operational efficiency.

Customer Service Delivery

9. Develop and deploy strategy for optimal customer service approach. 10. Develop a customer service charter to drive a customercentric approach in the organization.

Stakeholder Engagement and involvement

11. Establish and implement a stakeholder management strategy (map stakeholder matrix, understand stakeholder expectations, develop mutually beneficial plans to meet expectations and agree a stakeholder engagement process with clearly defined accountabilities). 12. Create cohesiveness and common goals for the aviation industry. 13. Strengthen existing legislation.

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CRITICAL SUCCESS FACTORS To ensure success of the turnaround programme, a number of prerequisites must be in place, such as: • • • •

Cohesive turnaround aspiration agreed and bought-into by all relevant stakeholders; Adequate resources, financial, human, etc; A change management process to take the organisation along; and Implementation programme management discipline to ensure delivery of the turnaround according to agreed timelines.

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SOUTH AFRICAN CIVIL AVIATION AUTHORITY STRATEGIC PLAN

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