South African Civil Aviation Authority Portfolio Committee on Transport 16 October 2014

1. South African Civil Aviation AuthorityPortfolio Committee on Transport16 October 2014 Ms Poppy Khoza Director of Civil Aviation

2. CONTENTS • SACAA Overview • SACAA Business • South Africa’s Safety Performance • Accident and Fatality Statistics • Industry Transformation • SACAA Transformation • Revenue Sources • Financial Sustainability • AG Audited Organisational Performance • Audit Trends • Organizational Challenges and Interventions

3. SACAA MANDATE Mandate (Contemporary Translation) “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.” • Objects of Civil Aviation Authority Act No 13, 2009 • Control and regulate civil aviation safety and security • Oversee the implementation and compliance with the National Aviation Security Program • Oversee the functioning and development of the civil aviation industry; • Promote civil aviation safety and security • Develop any regulations that are required in terms of this Act; and • Monitor and ensure compliance with this Act and the Convention

4. SACAA BUSINESS: Safety Oversight System • The International Civil Aviation Organisation (ICAO) completed an ICAO Validation Mission ICVM in July 2013 based on the 2007 audit, with no Significant Safety Concerns (SSC) raised. • At present SACAA has submitted about 50% of compliance evidence on the current ICAO Corrective Action Plan (CAP) to ICAO. More work on regulations continues. • Please note that AIG was not audited and we await ICAO to notify us on the planned date.

5. SACAA BUSINESS: Security Oversight System • Performance on ICAO 8 Critical Elements continues to gain traction. • Validated by the June 2013 US Transport Security Administration audit, a positive outcome was achieved after Delta Airlines and South African Airways were audited. • This position was recently validated in June 2014, with the same positive outcome.

6. SA’s SAFETY PERFORMANCE Legend • South Africa • World average. Note • AIID is yet to be audited, hence the reflected underperformance Source: ICAO 2013 Audit Report

7. ACCIDENT and FATALITY STATISTICS Source: SACAA 2014 Annual Report • General accident statistics have been on the decline since 2008, however 2013 was a concern, hence the development of the Cross Functional Accident Reduction Plan (CFARP). This amongst others have had a positive impact for the six months ending June 2014, with 19 fatalities compared to 23 • the previous year.

8. INDUSTRY TRANSFORMATION Africans, Indians and Coloured’sconstitute 8% excluding cabin crew. There are efforts underway to correct the situation under the guidance of the Ministry.

9. SACAA TRANSFORMATION • We are below target due to a slow down in the recruitment of personnel pending organisational structure review • As we fill vacancies our targets will improve

10. ORGANISATIONAL PERFORMANCE2013/14

11. There were 17 performance deliverables for the year ending March 2014, and a revised 15 out of 16 deliverables were achieved, translating to 94% performance

12. FINANCIAL PERFORMANCE2013/14

13. REVENUE SOURCES • The Passenger Safety Charge (PSC) constitutes 70% of all income. • This is currently levied at R16.39 per departing passenger from local airports according to a set criteria

14. FINANCIAL SUSTAINABILITY • Tapering growth in passenger numbers compared to the SACAA budgeted 1.8% increase • Experienced a delay in the approval of the Passenger Safety Charge • The above scenario has had a negative impact on organisational Revenue as at June 2014 of R15.2 million. • The PSC has since been approved & adjusted to R16.39 with claw back from the 2012/2013 overcollection Passenger Numbers ‘000 Source: SACAA 2014 Annual Report

15. STATEMENT OF FINANCIAL PERFORMANCE With the approved R16.39 Passenger Safety Charge (PSC) increase, SACAA is forecasting a break-even for the year ending March 2015.

16. STATEMENT OF FINANCIAL POSITION The Statement of Financial Position highlights a decrease in cash and a corresponding increase in Property Plant & Equipment and Intangible Assets, due to the implementation of the EBS project.

17. AUDIT TRENDS • Consistent decline in audit findings over the past 5 years, • 2013/14 will be the second year in a row the organisation receives the Auditor General Clean Audit Award.

18. ACHIEVEMENTS Organisational: • AG Clean Audit (award received on 8 October 2014 – 2 years in succession) • 94% overall organisational performance (audited) • EBS Tender – efficiencies • Executive Appointments Technical: • Upgrading of the exam system • Successful ICVM Audit • Successful TSA Audit • CFARP • US TSA & EU ACC3 - Recognition • Successful hosting of Safety Seminar • Vice Chairman of ICAO – 2nd year • MSP (95%)

19. ACHIEVEMENTS Cont… Co-operation & Regional Assistance: • Partnership with Universities on Avmed • Regional Assistance (Malawi, Botswana, etc.) • Preparation of AvmedAfrican Aerospace Medicine Conference Transformation: • Bursary Awards – PDIs • BBBEE Level 2 (from 4 to 2in two years) • Career Awareness (JAAP 193 HDI Schools Visited in nine Provinces)

20. ORGANISATIONAL CHALLENGES • Stagnation of passenger numbers – impact on revenue • Establishment of the independence of the Accident and Incident investigation Division (AIID) (International Civil Aviation Organisation - ICAO Audit) • Un-manned Aerial Systems (UAS) • Civil Aviation Act not Aligned to Public Finance and Management Act (PFMA) - pending • Silo Systems and manual processes • Transformation of Industry INTERVENTIONS • Diversification and maximisation of existing revenue streams • AIID Memorandum of Understanding (MOU) signed with Department of Transport, engagement on cost implications • Development of Regulations in progress - March 2015 • DoT to fast-track the amendment of the Act • Organisational Design and Enterprise Business System (EBS) roll-out to address silos. • Development of an Industry-wide Transformation Strategy

21. Thank You