SOUTH AFRICAN CIVIL AVIATION AUTHORITY (SACAA)

1. SOUTH AFRICAN CIVIL AVIATION AUTHORITY (SACAA) A presentation to the Portfolio CommitteeTuesday, 6 May 2008 Budget and Strategic Plan Briefing Captain Colin Jordaan Chief Executive Officer: SACAA & Commissioner for Civil Aviation

2. The purpose of this presentation is to give an overview of the strategic direction of the SACAA. 1. PURPOSE

3. 2. ORGANISATIONAL OVERVIEW(Vision and Mission) • Our Vision • “Regulatory EXCELLENCE in aviation safety and security”. • Our Mission • The SACAA is a player in the international arena that seeks to promote and maintain safe and secure civil aviation environment in SA, by regulating and overseeing the functioning of the industry in an efficient, cost- effective, sustainable and customer friendly manner.

4. 3. MATTERS FROM PREVIOUS MEETING The following four major issues were highlighted in the Portfolio Committee on Transport held on 17 March 2007

5. 3. ACTIONS TAKEN PREVIOUS MEETING MATTERS (Cont) Lack of Technical Capacity • New Technical Qualified CEO Appointed in December 2007 • 3 Flight Operations Experts contracted from ICAO for skills transfer • 2 Additional Experts budgeted for in 2008/9 in other technical departments • All Air Worthiness Inspectors Appointed • Flight Operations Inspectors 85% staffed, to fully recruit within 60 days The Role of CEO and that of Commissioner as Stipulated in the regulations • Positions consolidated in current draft bill consolidating Aviation Acts High Level of Vacancies • 55 specialists recruited and appointed since the beginning of the year

6. 3. ACTIONS TAKEN PREVIOUS MEETING MATTERS (Cont) Equity Performance – Gender and Race While SACAA strives for better equity figures, the current figures are encouraging considering the historical background of the industry

7. 3. ACTIONS TAKEN PREVIOUS MEETING MATTERS (Cont) Equity Performance - Employee Profile

8. 3. ACTIONS TAKEN PREVIOUS MEETING MATTERS (Cont) GAUTENG vs. CAA DEMOGRAPHICS Even though there are challenges, SACCA is not far out of line with Gauteng stats.

9. 4. FROM THEN TO NOW -ICAO FINDINGS SACAA is well below the international average of non complaint findings, and the adoption of the current regulation changes will further reduce findings considerably.

10. 4. FROM THEN TO NOW -FAA FINDINGS

11. 4. FROM THEN TO NOW -FAA FINDINGS Excellent progress has been achieved in closing the FAA findings and no complications are anticipated during the pending follow up visit planned by the FAA in June 2008

12. 5. Challenges and Interventions The SACAA experienced challenges in the following three major areas. 5.1 International Regulatory Compliance Includes major findings by the International Civil Aviation Organization (ICAO) and the Federal Aviation Administration (FAA) 5.2 Industry Oversight Challenges Challenges encountered in the oversight of local and international operators, regulation of different sectors, application of technology in order to enhance aviation safety 5.3 Civil Aviation Regulations Finalisation and implementation of outstanding regulations as well as revamping of the promulgation process.

13. International Regulatory Compliance Speedy resolution of all FAA and ICAO audit findings; Accelerated implementation of both FAA & ICAO Corrective Action Plans (CAP); Implementation of ICAO-compliant Technical Guidance Material (TGM) for the SA Civil Aviation Industry; Implementation of Safety Management Systems within the industry as required by ICAO; Separation of the Air Safety Investigation Unit from the CAA 5.1 - Challenge

14. International Regulatory Compliance Ministerial Task Team and CAA Project team formed and is functioning to ensure speedy resolution of audit findings Corrective Action Plans for both FAA and ICAO audit findings are monitored tracked on a 2 weekly basis Implementation of TGM and SMS to be addressed through industry training and workshops; Independence of Air Safety Investigations to be addressed through amendments to regulations (Draft Bill Aviation Act 2008) 5.1 - Interventions

15. Oversight Issues Roles and functions of the Commissioner and CEO of SACAA to be clearly defined; Oversight of the Non Type Certified Aircraft (NTCA) sector remains a big challenge for the SACAA; Adequate oversight of numerous SA operators and organizations based in foreign countries 5.2 - Challenge

16. Oversight Issues (continued) Oversight of foreign operators coming into the country; Enforcement action against non-compliant industry players; Compulsory registration of all airstrips in the country 5.2 - Challenge

17. The following graph indicates accidents statistics which is one of the indicators of oversight performance. The graph will further indicate a general decrease in accidents during the 2007/8 year with the exception of Gauteng. This situation is attributed to the increase in air traffic movement in Gauteng. Current statistics are not based on accidents / incidents per 1000 flights because many general aviation flight do not file flight plans. This will be addressed in the current year. 5.2 CHALLENGE – OVERSIGHT IMPACT

18. 5.2 CHALLENGE - ACCIDENTS GRAPH

19. 5.2. Interventions to address challenges Oversight Issues Draft bill has been submitted for public comment addressing the roles of the CEO and Commissioner. New NTCA Strategy has been developed to re-organize the oversight of NTCA sector; SA operators based in foreign countries: Enhanced oversight by the SACAA where local authorities do not have oversight capability and entering into Memoranda of Understanding (MOUs) to transfer regulatory responsibilities (article 83 bis); Foreign operators coming into SA: Enhanced ramp aircraft inspections and closer scrutiny of aircraft documentation;

20. 5.2. Challenge Oversight Issues (continued) Industry readiness for the implementation of the Global Navigation Satellite System (GNSS); Improving the quality, depth and scope of our industry surveillance programme; Lowering the aircraft accident and incident rate in SA and improving safety standards; Apply appropriate enforcement action against non-compliantindustry players, such as suspensions, penalties and laying of criminal charges;

21. 5.2. Interventions to address challenges Oversight Issues (continued) Amendments to current CARS and CATS to ensure registration of all airstrips in the country; Conduct industry education and readiness workshops for the implementation of SMS and GNSS; Resolution of safety concerns emanating from aircraft accidents and incidents; Recruitment and training of key technical personnel to enhance industry surveillance programme and improve safety standards.

22. 5.3. Challenge Civil Aviation Regulations Finalization of all outstanding regulations and technical standards; Revamping of CARCOM processes to ensure speedy promulgation of regulations; Speedy implementation of Part 108 (Security Regulations) without compromising aviation security.

23. 5.3. Interventions to address challenges Civil Aviation Regulations Identify and draft all outstanding CARS and CATS; Streamline the regulations development processes to ensure speedy promulgation of civil aviation regulations by chairing CarCom self and more frequent meetings; Conduct industry workshops to ensure smooth implementation of Part 108 and solicit industry support and commitment. Aviation Security Managers Forum.

24. 6. ORGANISATION OVERVIEW(Key Drivers of Strategy) • The following are the Authority’s Objectives according to the SACAA Act: • Oversee functioning & development of the civil aviation industry; • Specifically, to control, regulate & promote civil aviation safety & security. • ICAO Critical Elements determine the international requirements for the functioning of SACAA (8 critical elements shown on graph);

25. 6. ORGANISATION OVERVIEW(Key Drivers of Strategy Cont..) • DOT Performance Agreement defines the specific performance contract between the Government and the SACAA for a period of time; • SACAA Board strategy is designed to meet all of these requirements (5 Strategic Themes);

26. 6.ORGANISATION OVERVIEW(5 Strategic Objectives) ICAO CONVENTION & STANDARDS SA CAA ACT & AVIATION ACTS DOT PERFORMANCE AGREEMENT SA CAA ORGANISATIONAL STRATEGY 3. Effective Systems & Processes 4. Growing Customer Satis-faction 1. Civil Aviation Compliance 2. Aviation Industry Functioning & Growth 5. Human Capital • The Board has identified five strategic objectives based on the SACAA’s mandate. • These take into account the requirements laid down by ICAO, South African legislation and the Department of Transport 10

27. 7. STRATEGIC KPA’s and KPI’s (2008)

28. FY 07/08 Year 1 Year 2 Year 3 R(m) R(m) R(m) R(m) Revenue 201 267 311 360 Total Expenses (210) (281) (301) (329) Interest Income 5 4 5 5 Net Income (4) (10) 15 36 9. FINANCIALS

29. The following material Three Year Financial Plan figures discussed in the interest of clarity. Revenue There was a significant safety charge increase in FY07/08 as a result of a R4 per passenger ticket increase implemented 1 Jan 08. These charges have been constant for many years. Staff Costs Staff Costs increased drastically from Jan 08 to Year 1 as result of the recruitment drive gathering momentum in the last quarter of the March 08 and the first quarter of Year 1. Therefore FY08/09 staff costs includes a much higher staff complement at a technical level. There is a global shortage of pilot and technical skills with high demand. Operating Costs The rest of the operational costs have increased as a result of anticipated enforcement action in addition to inflation related increases as well as increased flying activity. 9. FINANCIALS (NOTES)

30. The SACAA is currently undertaking feasibility studies to procure a site that may be developed soon after 2010 before the current lease expires in five years. Current leases are costing the SACAA R13.5 m per year for the two separate buildings currently occupied. Maintenance costs account for a further R3,4m The two separate sites are inherently causing an administrative burden. Space is becoming a problem even before the recruitment is completed. The ideal site should be next to an airport for logistical purposes and to provide hangarage for the CAA calibration aircraft. Current and future short-term reserves are expected to finance the building. 10. FUTURE DEVELOPMENT

31. SOUTH AFRICAN CIVIL AVIATION AUTHORITY (SACAA) A presentation to the Portfolio CommitteeTuesday, 6 May 2008 Budget and Strategic Plan Briefing Captain Colin Jordaan Chief Executive Officer: SACAA & Commissioner for Civil Aviation