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Airservices Australia Annual Report 2000 - 2001 Has Been Prepared in Accordance with Those Requirements and the Finance Minister’S Orders

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Airservices Australia Annual Report 2000 - 2001 Has Been Prepared in Accordance with Those Requirements and the Finance Minister’S Orders Safety Service Staff ANNUAL REPORT 2000 – 2001 AIRSERVICES AUSTRALIA AIRSERVICES AUSTRALIA ANNUAL REPORT 2000 – 2001 Airservices Australia ANNUAL REPORT 2001 i © Commonwealth of Australia 2001 ISSN –1327-6980 This work is copyright. Apart from any use under the Copyright Act 1968 no part may be reproduced by any process without prior written permission from Airservices Australia. Requests and inquiries concerning reproduction rights should be addressed to the: Manager, Corporate Communication, Airservices Australia, GPO Box 367, Canberra City, ACT 2601. Telephone: (02) 6268 4111; Fax: (02) 6268 5688. Produced by Finance & Corporate Services Group and Marketing. Printed by Robey Pty Ltd. Airservices Australia ANNUAL REPORT 2001 ii Table of Contents Letter of transmittal . v Introduction . 1 Annual reporting requirements . 1 Powers and functions. 1 Directorship and governance. 2 Responsible Minister . 3 Structure . 3 Chairman’s year in review . 5 Corporate profile . 7 Report from the Chief Executive. 8 Year’s highlights. 10 The Corporate Scorecard . 13 Operational performance . 13 Financial Performance . 17 Vision and Corporate Objectives. 19 Report of Operations . 21 Key result area: Safety . 21 Key result area: Environment. 22 Key result area: Operational excellence. 24 Key result area: Customers and markets. 26 Key result area: Employees . 28 Key result area: Owner . 29 Financial Statements . 31 Appendices. 63 Appendix 1 – Board . 64 Appendix 2 – Board biographies . 67 Appendix 3 – 2000-01 Project summaries . 70 Appendix 4 – Ministerial Directions and Charter Letter . 75 Appendix 5 – Staff resources and statutory information . 94 Appendix 6 – Judicial decisions and reviews by outside bodies . 108 Appendix 7 – Indemnities and insurance premiums for officers . 109 Appendix 8 – Noise complaints (telephoned) . 110 Appendix 9 – Standards of Service Charter. 111 Appendix 10 – Glossary of terms. 114 Appendix 11 – Compliance Index. 117 General Index . 118 Airservices Australia ANNUAL REPORT 2001 iii Airservices Australia ANNUAL REPORT 2001 iv LETTER OF TRANSMITTAL 19 September 2001 The Hon John Anderson MP Deputy Prime Minister and Minister for Transport and Regional Services Parliament House CANBERRA ACT 2600 Dear Minister The Airservices Australia Board of Directors hereby submits to you the Airservices Australia Annual Report for the period 1 July 2000 to 30 June 2001. The Report of Operations and financial statements have been prepared in accordance with the Air Services Act 1995 and the provisions of the Commonwealth Authorities and Companies Act (CAC) 1997. Financial performance during the year was extremely strong, reflecting the benefits from the reform initia- tives pursued by Airservices in recent years. However, as we finalise this Annual Report, a number of important factors affecting the health of the aviation industry are emerging. The placement into voluntary administration of the Ansett group of companies, combined with the terrorist events in the United States are significant. While the situation is still unfolding, clearly it will adversely impact Airservices’ revenue base, and therefore financial performance, in the coming year. Yours sincerely JOHN PC FORSYTH Chairman Airservices Australia ANNUAL REPORT 2001 v Airservices Australia ANNUAL REPORT 2001 vi INTRODUCTION Annual reporting requirements Airservices Australia is required by the Air Services Act 1995 and section 9 of the Commonwealth Authorities and Companies Act (CAC) 1997 to provide an annual report for tabling in the Parliament. The Airservices Australia Annual Report 2000 - 2001 has been prepared in accordance with those requirements and the Finance Minister’s Orders. Powers and functions Airservices Australia was established on 6 July 1995 as a Government Business Enterprise (GBE), under the Air Services Act 1995, with reporting and accountability arrangements set out in the Commonwealth Authorities and Companies Act (CAC) 1997. In 1997, Airservices’ status was amended to that of a Commercial Authority, which had some minor impli- cations regarding the application of the CAC Act, but minimal impact on the organisation’s ownership or governance. Airservices’ specific responsibilities include airspace management, air traffic flow management, air traffic control, traffic and flight information, navigation services, aeronautical information, search and rescue (SAR) alerting, and rescue and fire fighting in accordance with the Chicago Convention on International Civil Aviation. Under the Air Services Act 1995 (as amended), the organisation is responsible for performing the follow- ing functions: • providing facilities to permit safe navigation of aircraft within Australian-administered airspace; • promoting and fostering civil aviation in Australia; • providing the following services, for the purpose of giving effect to the Chicago Convention or otherwise for purposes relating to the safety, regularity or efficiency of air navigation: (i) air traffic services, (ii) an aeronautical information service, (iii) rescue and fire fighting services, (iv) aeronautical radio navigation service, (v) an aeronautical telecommunications service; • co-operating with the Australian Transport Safety Bureau (ATSB) in relation to the investigation of aircraft accidents and incidents; Airservices Australia ANNUAL REPORT 2001 1 • performing activities to protect the environment from the effects of, and the effects associated with, the operation of Commonwealth jurisdiction aircraft; • performing any functions prescribed by the regulations in relation to the effects of, and effects associ- ated with, the operation of Commonwealth jurisdiction aircraft; • performing any functions conferred under the Air Navigation Act 1920; • performing any other functions prescribed by the regulations; • providing consultancy and management services relating to any of the above matters; and • Airservices may provide its services and facilities both within and outside Australian territory. Directorship and governance Airservices Australia is wholly owned by the Australian Government and is governed by a Board of Directors appointed by the Minister for Transport and Regional Services. The Board is responsible for deciding the objectives, strategies and policies to be followed by Airservices. The Board ensures that Airservices performs its functions in a proper, effective and safe manner, and del- egates responsibility for the management of the Corporation to the Chief Executive Officer (CEO) who is also a Director of the Board. The Board has four committees to increase its effectiveness. Members of each committee are shown in the Directors’ meetings table in Appendix 1. Each committee functions in accordance with a charter approved and reviewed annually by the full Board. They are as follows: • The Audit Committee comprises three non-executive directors who meet at least four times a year. The Board Chairman is an ex-officio member of the Committee. The Committee advises the Board on all aspects of internal and external audit and the adequacy of compliance, controls and financial reporting. • The Safety and Environment Committee consists of four non-executive directors. The Board Chairman and CEO are ex-officio members of this committee. Meeting monthly, prior to each full Board meeting, the Committee reports to the Board on the management of the organisation’s safety and environmental responsibilities. • The Remuneration Committee comprises the Board Chairman, as Committee Chairman, a Board member and the CEO. The Committee meets at least twice a year. The Committee conducts annual reviews of Executive Director remuneration (including the CEO) and provides guidance to the CEO on the remuneration of Executive Committee members. In addition, the Committee develops recommen- dations to the Board on CEO succession and has the responsibility for monitoring the establishment of succession plans for members of the Executive. • The Olympic Security Committee comprises a Board member, the CEO and the General Manager, Organisational Development. The Committee was established to review security arrangements in the lead up to the Sydney 2000 Olympic Games. Airservices Australia ANNUAL REPORT 2001 2 Business Risk Management A Corporate Strategic Business Risk Profile which provides a consolidated view of the business risks con- fronting Airservices was compiled in June 2001. This represents the final outcome of several integrated business risk assessments and evaluations conducted across all Business Groups. The Corporate Business Risk Framework adopted for this purpose is based on the Australian/New Zealand Standard 4360:1999 Risk Management, suitably modified to include Control Self-Assessment practices as an integral part of the process. The effective management of all business risk outcomes is achieved through a centralised net- worked database system, with monitoring of the process the responsibility of the Corporate Audit function. To achieve optimum value from the process, business risk management is directly linked to the annual strategic planning processes. Responsible Minister Airservices reports to the Deputy Prime Minister and Minister for Transport and Regional Services, The Hon John Anderson MP. Structure The business structure, which came into effect from 1 March 2001, is shown on page 4. The structure is based on the concept of three market oriented business groups, each with distinct business portfolios (containing business or profit centres) – Air Traffic Management, Airport Services
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