1. PARLIAMENTARYPORTFOLIOCOMMITTEEONTRANSPORT 6 APRIL 2005 CAPE TOWN

2. Regulatory Framework Staff Profile Strategic Intent Budget 2005 / 2006 PRESENTATION CONTENT

3. Regulatory Framework

4. International Treaty Obligations International Civil Aviation Organization Standards And Recommended Practices Minister of Transport Responsible Aviation Acts HOW AVIATION IS REGULATED

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

6. AVIATION ACTS Aviation Acts Aviation Acts Regulations (CARS & CATS) Security Regulations (NASP) Levies Act Allows for implementation of charges

7. 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

8. WHERE DOES THE CAA DO IT? CAA Regulates & Licenses Airports Runways, Lights, Signage, Obstructions, etc., Airspace Air Traffic Units, Design Instrument Approaches, Calibration Aircraft Airworthiness, Certification, Maintenance Organizations Aeronautical Information Services AIC’s, AIP, Notams

9. WHERE DOES THE CAA DO IT? CAA Regulates and Licenses Personnel Personnel Pilots, Flight Engineers, Cabin Crew, Maintainance Engineers, Air Traffic Controllers Operations Operator Safety Standards, Management Systems Security Security Screening at Airports, Dangerous Goods, National, Local and Operator Security Plans, National Security Plan

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

11. Mechanisms Examination and testing to verify compliance with standardsExamination and testing to verify compliance with standards Suspension of an Aviation License pending other actionSuspension of an Aviation License pending other action Withdrawal / Cancellation of Aviation LicenseWithdrawal / Cancellation of Aviation License FineFine Criminal chargesCriminal charges ENFORCEMENT

12. 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

13. 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

14. AIRCRAFT REGISTER VS ACCIDENT RATE

15. ACCIDENTS BY SECTOR

16. Staff Profile

17. STAFF PROFILE APRIL 2005

18. STAFF PROFILE: 2005 / 1998

19. GENDER PROFILE: 2005 / 1998

20. STAFF PLANNING – 2005 / 2006 DepartmentCurrentVacanciesNewTotal Company Secretary3003 CEO Office97420 Security18112049 Occurrence Investigations163019 Infrastructure347344 Corporate Services46141171 Safety Operations1421517174 TOTAL2685755380

21. Strategic Intent

22. THE VISION OF THE CAA Excellence in aviation safety, security and industry development

23. 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

24. 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

25. 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

26. Budget 2005 / 2006

27. FINANCIAL PROJECTIONS: 1998 - 2008

28. Capacity building to achieve strategic intent 1.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 FOCUS OF THE 2005/2006 BUDGET

29. 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

30. 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 TARGETED RETENTION

31. 20042005200620072008 Staff Costs58,95m76,59m95,96m131,95m142,50m Operational Costs 27,01m27,56m29,49m31,56m33,76m Depreciation7,71m8,01m12,44m14,83m18,93m Strategic Projects 1m TOTAL93,67m112,18m138,90m179,34m195,20m % Increase21 %20 %24 %29 %9 % Funding Model97,05m104,80m113,20m122,25m132,04m Variance+3,38m-7,38m-25,70m-57,09m-63,16m TOTAL EXPENSES

32. 20042005200620072008 Staff Costs58,95m76,59m95,96m131,95m142,50m % of Total63 %68 %69 %73 % Operational Costs 27,01m27,56m29,49m31,56m33,76m Depreciation7,71m8,01m12,44m14,83m18,93m Strategic Projects 1m TOTAL93,67m112,181m138,90m131,94m142,50m Funding Model 97,05m104,80m113,20m122,25m132,04m Variance+3,38m-7,38m-25,70m-9,69m-10,46 Net variance49,85m TOTAL EXPENSES

33. 20042005200620072008 Staff Costs58,95m76,59m95,96m131,95m142,50m Operational Costs 27,01m27,56m29,49m31,56m33,76m Depreciation7,71m8,01m12,44m14,83m18,93m Strategic Projects 1m TOTAL93,67m112,18m138,90m179,34m195,20m % Increase21 %20 %24 %29 %9 % Funding Model97,05m104,80m113,20m122,25m132,04m Variance+3,38m-7,38m-25,70m-57,09m-63,16m TOTAL EXPENSES

34. 20042005200620072008 Staff Costs58,95m76,59m95,96m131,95m142,50m % of Total63 %68 %69 %73 % Operational Costs 27,01m27,56m29,49m31,56m33,76m Depreciation7,71m8,01m12,44m14,83m18,93m Strategic Projects 1m TOTAL93,67m112,181m138,90m131,94m142,50m Funding Model97,05m104,80m113,20m122,25m132,04m Variance+3,38m-7,38m-25,70m-9,69m-10,46 Net variance49,85m TOTAL EXPENSES

35. 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

36. TOTAL REVENUE 20042005200620072008 TOTAL119,45 m132.51 m146,90 m188,42 m200,82 m Total increase60 %11 % 28 %7 % User Fees26 %27 %28 %25 %26 % Safety Charge63 %59 %57 %62 %61 % Fuel Levy4 % 3 %2 % Interest and Other 2 %5 %8 %7 % Accidents 5 % 4 %

37. USER FEES 20042005200620072008 Revenue31,076 m36,926 m41,726 m47,151 m52,809 m Total increase17 %18 %13 % 12 % Price increase 12 %11 % 10 % Volume increase 5 %7 %2 % Funding Model 33 m37.2 m41.3 m46 m50 m Variance - 2 m- 0.3 m+ 0.4 m+ 1.1 m + 2.8 m

38. USER FEES 20042005200620072008 Revenue31,076 m36,926 m41,726 m47,151 m52,809 m Total increase17 %18 %13 % 12 % Price increase 12 %11 % 10 % Volume increase 5 %7 %2 % Funding Model 33 m37.2 m41.3 m46 m50 m Variance - 2 m- 0.3 m+ 0.4 m+ 1.1 m + 2.8 m

39. PASSENGER SAFETY CHARGE 20042005200620072008 Revenue74,89 m78,39 m82,31 m117,60 m123,48 m Total increase100 %4,67 %5 % 42.86 %5 % Price increase R3R0 R3R0 Number of pax 12,197m12,768m13,406m13,410m14,080m Volume increase 5 %4,67 %5 % Funding Model 74 m77,7 m81.58 m85.66 m89.94 m Variance + 0.89 m+ 0.69 m+ 0.72 m+ 31.9 m + 33.53 m

40. PASSENGER SAFETY CHARGE 20042005200620072008 Revenue74,89 m78,39 m82,31 m117,60 m123,48 m Total increase100 %4,67 %5 % 42.86 %5 % Price increase R3R0 R3R0 Number of pax 12,197m12,768m13,406m13,410m14,080m Volume increase 5 %4,67 %5 % Funding Model 74 m77,7 m81.58 m85.66 m89.94 m Variance + 0.89 m+ 0.69 m+ 0.72 m+ 31.9 m + 33.53 m

41. BUDGET 2005 / 2006 20042005200620072008 REVENUE119,45132,51146,90188,42200,81 - User Fees31,0736,9241,7247,1552,80 - Safety Charge74,8978,3982,31117,60123,48 - Fuel Levy4,554,454,544,594,64 - Accidents5,686,026,57,037,5 - Other3,126,7011,8012,0412,29 EXPENSES93,66112,18138,90179,34195,20 - Staff Costs58,9476,5995,96131,94142,50 - Operational27,0127,5629,4931,5633,76 - Depreciation7,718,0112,4414,8318,93 - Strategic--1,0 - SURPLUS25,7820,338,009,085,61

42. Regulatory framework of CAA, Staff developments, comprehensive strategic intent supported by a sustainable financial model, Further increase in overall aviation safety and security outcomes IN CONCLUSION…

43. QUESTION TIME