Briefing to the Portfolio Committee on Transport on Civil Aviation programme

1. Briefing to the Portfolio Committee on Transport on Civil Aviation programme 05 March 2013 SMC / 1

2. Presentation outline • Purpose • Policy and Legislative Context • Role of DOT and Agencies • Contribution of Civil Aviation • Key policy and strategic issues from National Development Plan • Achievements • Challenges • Strategic interventions for consideration • Role of PCOT • Way-forward and time frames

3. Purpose • Brief the Portfolio Committee on Transport (PCOT) on Civil Aviation programme; • Solicit inputs and advise from PCOT regarding Civil Aviation for South Africa;

4. Policy and Legislative Context Policy: • National White Paper on Transport Policy. Legislation: • Aviation Act No 74 of 1962. • International Air Services Act No 60 of 1993. • Air Services Act No 115 of 1990. • South African Civil Aviation Act No 40 of 1998. • Carriage By Air Act No 17 of 1946. • Airport Company Act No 44 of 1993. • Ait Traffic and Navigation Services Company Act No 45 of 1993. • Civil Aviation Offences Act No 10 of 1972 • Airlift Strategy.

5. Role of DOT & Agencies in Aviation • The role of the Department of Transport in civil aviation is one of principal enabler and regulator. • The purpose of the Branch: Civil Aviation therefore is: to facilitate the development of an economically viable air transport industry that is safe, secure, efficient, environmentally friendly and compliant with international standards through regulation and investigation and to oversee aviation public entities.

6. Role of DOT & Agencies in Aviation cont… • Civil aviation Agencies sharing the responsibilities include: the Civil Aviation Authority of South Africa (SACAA), Airports Company South Africa (ACSA) and Air Traffic Navigation Services (ATNS), Regulating Committee (RC) International Air Services Council (IASC) andAir Services Licensing Council (ASLC).

7. Role of DOT & Agencies in Aviation cont... • SACAA: responsible for overseeing national aviation safety and security .ICAO USAOP • ATNS: responsible for air traffic control in approximately 10% of the world’s airspace. Services extend to provision of aeronautical information used for flight planning purposes, search and rescue coordination activities and maintenance of navigation infrastructure.

8. Role of DOT & Agencies cont… • ACSA: main objective of the Company is acquisition, establishment, development, provision, maintenance, management, control and operation of any airport of facility or service and any other lawful activity. • Regulating Committee: oversee the economic regulation of ACSA to restrain ACSA from abusing its monopoly position, without placing undue restrictions on its commercial activities.

9. Role of DOT & Agencies cont… • IASC: adjudicates and considers applications for international air services to and from RSA. • ASLC: adjudicates and considers applications for operation of domestic air services.

10. Contribution of civil aviation • Generates income and employment through global commerce and tourism (passenger/tourist facilitation, mail & freight services, commercial operators, airports, air navigation etc.). • Well-managed civil aviation infrastructure and efficiently-run, competitive airlines bring down transport and communication costs, promote cultural activity, create jobs thereby, eradicating poverty and inequality.

11. Key Policy and Strategic issues from National Development Plan • National Development Plan (NDP) advocates for a capable and developmental state • A need to align the below aviation policy and legislation framework with NDP: • Review and implementation of the Yamoussoukro Declaration and Decision; • Finalisation and implementation of the National Airports Development Plan (NADP); • Review the Regulatory Framework for ACSA and ATNS; • Finalisation of the Aviation policy; • Development of the Environmental Policy; and • Review of the Airlift Strategy.

12. Achievements • Managed to liberalise air services arrangements with seven (7) states and concluded YD Compliant Bilateral Air Services Agreements with Burkina Faso, Mali and Namibia. • ACSA won the contract to upgrade the airport in Brazil. • South Africa awarded category 1 by ICAO which is the highest category in aviation. • ATNS has concluded agreements with SADC states to provide air traffic and navigation services. • Review of Airlift Strategy: Consultation with government and Aviation Industry stakeholders finalized.In the process of preparing submission to Cabinet. • Draft White Paper (DWP):Internal workshop held on the where further amendments and inputs have to be incorporated.Further consultation with Aviation industry stakeholders to be held before submission to Minister. • National Development Plan: Various key challenges were identified during consultations, which will require further investigation. Possibility of commissioning of formal research as well as the development of prediction models.

13. Challenges • Challenging world economic environment and fuel price volatility. Impact reflected in lower passenger growth than expected (currently no growth year on year of 2012 vs2011. • Availability of airports that develop operational efficiency models to minimize the cost of doing business (Aerotropolis Cities). • Continuous demise of low cost carriers in South Africa since deregulation of airline industry • Closure and liquidation of various low cost airlines such as Velvet Sky, Nationwide Airlines to mention but a few has dented the credibility of low cost carriers

14. Challenges • Increasing international connectivity and reducing travel time by making air transport the preferred mode of travel. • Achieving maximum economic activity at airports location (Provincial and Municipal) • . Proliferation of airports/ airstrips in Gauteng unknown. DOT to investigate. • Legislation (licensed and non licensed). • New regulation and enforcement. • Safety implications • BEE and transformation, training, placing etc. (JAAP, ACSA, SACAA, ATNS and IASC). • Develping a model for Low Cost Air Carriers.

15. Challenges • Low cost Airlines and full service airlines operate in the same environment and are exposed to the same cost drivers. • Increasing international connectivity and reducing travel time by making air transport the preferred mode of travel. • Achieving maximum economic activity at airports location (Provincial and Municipal). • Proliferation of airports/ airstrips in Gauteng unknown. DOT to investigate. • Legislation (licensed and non licensed). New regulation and enforcement. Safety implications • BEE and transformation, training, placing etc. (JAAP, ACSA, SACAA, ATNS and IASC).

16. Strategic interventions for consideration • A review of policy and legislation framework governing Aviation in the country to align with the National Development Plan (NDP) is imperative • Consider policy to cater for low cost airlines and the provision of access of such services to the poor. • Unlock the benefits of Aviation and create space for a new model of low cost airlines • State intervention in the management of secondary airports is required. • Accelerate skills development initiatives

17. Role of PCOT • Provide inputs and advise on the ideal Aviation for model for South Africa • Engage other key role players on Aviation matters

18. Way forward and time frames • Revision of the Airlift Strategy – approval in 2013/14 • Review regulatory framework for ACSA and ATNS – Implementation 2014/15 • Incorporate the reviewed regulatory framework into the Permission Application Process – Implementation 2014/15 • National Civil Aviation Policy Reviewed – Cabinet Approval 2014/15 • Approved National Airports Development Plan – Cabinet Approval 2014/15 • Re-election to the ICAO Council at 38 Assembly – November 2013 • Oversee the Aviation Safety and Security Audit April and May 2013 • Amendment of the Civil Aviation Act – 2013/14 • Signed MoU on the coordination of Search and Rescue services by SADC Member States – 2014/15 • SADC Regional Search and Rescue Plan – 2014

19. THANK YOU