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Strategic Plan 2012/13 - 17 Table of Contents

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Strategic Plan 2012/13 - 17 Table of Contents SOUTH AFRICAN CIVIL AVIATION AUTHORITY STRATEGIC PLAN 2012/13 - 17 TABLE OF CONTENTS FOREWORD BY CHAIRPERSON 3 FOREWORD BY DIRECTOR OF CIVIL AVIATION 4 OFFICIAL SIGN-OFF 5 PART A: STRATEGIC OVERVIEW 7 1. Situational analysis 7 External Factors 7 2. Legislative and other mandates 15 3. Vision 16 4. Mission 16 5. Values 16 6. Strategic Outcome-Oriented Goals 17 PART B: STRATEGIC OBJECTIVES 19 1. STRATEGIC OBJECTIVES 19 Programme One: Financial Sustainability 19 Programme Two: Corporate Governance 20 Programme Three: Industry Development and Transformation 21 Programme Four: Aviation Safety and Security 22 Programme Five: Organisational Capability, Capacity and Culture 23 2. RISK MANAGEMENT 24 3. RESOURCE CONSIDERATION 25 PART C: LINKS TO OTHER PLANS 27 TURNAROUND STRATEGY 27 CRITICAL SUCCESS FACTORS 29 2 FOREWORD BY CHAIRPERSON It is a great pleasure for me to present this Strategic Plan on behalf the South African Civil Aviation Authority. The process of crafting the strategy was inclusive and took into consider- ation the views and ideas of my colleagues in the Board and the entire Management team of the Authority. We sought to define a strategy for SACAA that is implementable and achievable, taking into account our current industry forces and our internal dynamics. The process yielded a new strategic focus for the organization that provides for a step change in performance. The new vision of the organization, places emphasis on being a “model” regulator, which means striving for excellence will become the “SACAA-Way”. This strategic direction is fully aligned with our legislative mandate as well as our stakeholder’s expectations. Whilst building a capable and capacitated organisation in order to deliver on the mandate is given particular attention, the needs of the industry, global advances in aviation, the role our country must play in promoting aviation safety and security within the SADC region and transformation of the local industry form the crux of the strategy. SACAA exists to ensure that South African skies are safe; accidents in the general aviation sector remain a concern that the strategy will precisely address. Over the next five years, delivery on the following Strategic Goals will ensure that SACCA successfully enhances safety and security of the South African aviation industry: A. To develop, optimize and manage revenue streams and financial management systems. B. Demonstrate that the principles of corporate governance are underpinning the work of every SACAA team member and every SACAA service. C. Influence the breadth and pace of the industry development and transformation agenda. D. Build a continuously improving safety and security (operations, aircraft, aviation security and infrastructure) environment. E. Build a resilient organization with adequate capacity, capabilities and a high performance culture. In addition, during the planning period, we will embark on a turnaround programme that seeks to ensure that SACCA posseses the fundamentals required for organisational sustainability and delivery on mandate. Yours in Aviation Safety Phindile Riba Chairperson of the Board 3 FOREWORD BY DIRECTOR OF CIVIL AVIATION It is indeed a great privilege to submit the Strategic Plan of the South African Civil Aviation Authority, which is formulated a few months after the newly appointed SACAA Board took office. The appointment of the Board will go a long way in providing stability to the organisa- tion. This strategy outlines SACAA’s contribution to delivery of our Government’s National Out- comes. Specifically, the goals set in this Strategic Plan are aligned to the priorities and deliv- erables of the Department of Transport as contained in the Department’s Strategic Plan. The key elements emanating from this Strategic Plan include ensuring that the organisation is financially sound; putting our customers at the heart of our business; and enhancing the safety of South African skies. This Strategic Plan provides a compass that will provide direction for the SACAA leadership as they steer the organisation towards a quantum leap in performance. As we embark on a journey to implement the strategy, we will ensure that all the key organisational enablers are in place to promote a high-performance culture. The immediate challenge is to get the organisation’s financial wellbeing into a desirable state. For example, the process of implementing an increase in passenger safety fees needs to be fast tracked, inter alia. The separation of the accident investigation function, through the creation of the Aviation Safety Investigation Board will enable the SACAA to focus on its core mandate of promoting and maintaining a safe, secure and sustainable civil aviation environment. SACAA’s role of enhancing safety and security in compliance with ICAO Protocols and SARPs will be attained through commitment and dedication of SACAA staff. Ultimately, the ambition of ensuring safe and secure South African skies will be feasible and achievable. Yours sincerely, Zakhele Thwala Acting Director of Civil Aviation 4 OFFICIAL SIGN-OFF It is hereby certified that this Strategic Plan: • Was developed by the management of the South African Civil Aviation Authority under the guidance of the SACAA Board; • Has been approved and endorsed by the Board; • Takes into account all the relevant policies, legislation and other mandates for which SACAA is responsible; and • Accurately reflects the strategic outcome-oriented goals and objectives which SACAA will endeavour to achieve over the period 2012 to 2017. Phindile Riba Zakhele Thwala Chairperson of the Board Acting Director of Civil Aviation 5 PART A: STRATEGIC OVERVIEW PART A: STRATEGIC OVERVIEW In considering the trends impacting on the South African Civil Aviation Authority, a number of perspectives were considered, namely, Global trends, African industry dynamics, South African industry trends, and internal organisational challenges. The strategic planning process for the five-year period commencing in 2012/13, was aimed at addressing the impact of these forces to provide the foundation for building a sustainable organisation and a springboard for success into the future. External Factors Global Trends Aviation provides a powerful impetus for global economic development. A healthy and growing national air transport system provides access to global markets, enables movement of goods & people, and allows social and cultural exchange amongst nations. Moreover, the aviation industry has a meaningful contribution to the global economy, according to the Oxford Economics Publication - Aviation, the Real World Wide Web, the industry: • Constitutes an estimated US$ 3,560 billion (8%) of the global GDP from a turnover of approximately US$ 1 trillion; • Moves over 1.5 billion passengers and 30 million tonnes of freight across the globe annually; • Is a big contributor to tourism, a major engine of economic growth, particularly in developing countries - over 40% of international tourists now travel by air; and • Generates over 32 million jobs globally, through direct, indirect, induced and catalytic impacts. During the past financial year, the industry had to contend with mixed fortunes namely, enduring recovery of the global economy following a double dip recession; demand diminution as a result of a number of tragic natural disasters suffered in various parts of the globe; and pressure on industry margins as a result of political unrest, leading to fuel price increases. That said the industry’s outlook is positive, ICAO’s 20-year forecasts for aviation estimated that the number of commercially operated aircraft would jump from about 62,000 in 2011 to some 152,000 in 2030. During the same period, the number of aircraft movements should jump from 26 million to about 52 million, annually. IATA reported that in 2011, the aviation industry profit margins would continue to be squeezed although there has been some recovery in the outlook for profitability in the 12 months ahead. There was a sharp decline in industry confidence, driven by expectations of further escalation in fuel prices and demand shocks due to events in the Middle East, North Africa and Japan. While fuel prices remain high, expectations of further sharp increases have dissipated and traffic demand remains strong, helping to drive the pick up in sentiment on future profitability. 7 While both cargo and passenger demand continued to improve during the second quarter of 2011, the trend is flattening due to weakening demand-supply conditions and concerns that markets may not bear further fare/rate increases. Safety and security in this industry is by far, the most important factor for success and sustainability. Civil aviation authorities provide the mechanism by which nations ensure the safety of their skies through safety and security regulation. When a regulator cannot keep pace with the industry it oversees, aviation safety will be compromised. Thus, civil aviation authorities need to ensure that they have the necessary human, financial and technological resources required to ensure effective oversight for a rapidly evolving industry. Challenges faced by some States with regards to a secure, safe and orderly growth of civil aviation cannot be met in isolation, which has resulted in emergence of regional fora and organisations to drive attainment of safety and security imperatives. Environmentally sustainable aviation is gaining momentum. For example The 17th session of the Conference of Parties (COP) guided by United Nations Framework Convention
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