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 consideration 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 organisation.

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 on Climate Change (UNFCCC), will be held in Durban in Novem- ber 2011. COP17 seeks to advance, in a balanced fashion, the implementation of the Convention and the Kyoto Protocol, the Bali Action Plan, agreed at COP 13 in 2007, and the Cancun Agreements, reached at COP 16 last December. The framework and guidelines flowing from COP17 will oblige signatory nations to implement programmes to meet global climate change initiatives, as they pertain to civil aviation.

African Industry Dynamics

African aviation industry has achieved good growth rates in the past decade. Air travel is essential to the African continent to drive economic growth, job creation and tourism. However, to exploit aviation’s full po- tential in the region, all role players must ensure that it is secure, safe and sustainable.

According to studies conducted by Africa Infrastructure Intercontinental, air traffic in on the continent relies heavily on the three major hubs of Johan- nesburg, Nairobi, and Addis Ababa. These countries act as gateways to the continent, with Johannesburg carrying the greatest traffic.

Source: Africa Infrastructure Country Diagnostic - Challenges to Growth in Africa’s Air Transport Industry

8 Africa has a fragmented and inadequate road infrastructure that limits the continent’s ability to connect via land transportation. Air travel and transportation is a logical solution to circumvent this challenge. Further investment is required for infrastructure development and improvement of safety and security.

The continent still suffers from poor safety ratings; according to IATA, Africa had an accident rating of 7.41 in 2010, dem- onstrating a 25% improvement compared to 2009 but still more than 12 times the world average. Although there has been steady progress, a lot remains to be done. Whilst African carriers that completed IATA Operational Safety Audits (IOSA) boasted safety record 46% better than non-IOSA members, no single country can celebrate it’s achievements if the same cannot be said of the continent as a whole. Poor safety statistics hurt the continent as a whole.

Unfortunately, there is no single solution to the African safety issue because there is a multitude of issues to contend with. For example, heightening demands for environmental protection, lack of a safety culture, lack of resources, a growing skills gap, poor infrastructure, and inadequate safety oversight capacity must be addressed concurrently. In addition, implementation of safety management system by carriers and regulators needs to gain momentum to fully utilise the capabilities of the system.

Africa needs a united approach in addressing it’s safety and security challenges, the regional aviation safety and security programme currently being debated in SADC requires strong leadership and commitment from all African nations to make a noticeable impact towards implementation of a single coherent safety strategy for the continent.

Progress has been made towards this ideal, for example, the Co-operative Development of Operational Safety and Con- tinuing Airworthiness Program (COSCAP) is such an initiative. COSCAP aims to “enhance the safety and efficiency of air transport through the establishment of self sustaining sub regional corporative entities providing technical services in safety oversight to member states”. In addition, workgroups have begun work on harmonisation of regulation in the SADC region, which would bring great benefits in promoting aviation safety in the region.

South African Industry Trends

Aviation industry activity in the country is vigorous, with two new airlines launched since last year, Velvet Sky and Santaco Airline. Sustained economic growth and a growing middle class are maintaining the positive outlook for the local industry.

Seven major domestic airlines operate in South Africa. These include the full-service carriers South African Airways, British Airways the low-cost carriers kulula.com, Mango and 1 time, and the smaller regional carriers such as SA Express. A number of smaller charter airline companies also operate in this market. The recent growth in passenger numbers and aircraft activity can be attributed to the price war that has ensued in this industry over the past few years, the increase in disposable income and aggressive marketing efforts undertaken by the Low Cost Carriers (Kulula, Mango, 1time and recently, Velvet Sky). However, should airport charges increase drastically the market may shrink my as much as 70% as low cost travel becomes unaffordable to the emerging market.

South Africa has experienced an increase in total departing passengers for 2010 - 2011, with year-on-year traffic show- ing a positive increase of six percent compared to the previous year. This improvement in traffic is attributable to the global economic recovery and the 2010 FIFA World Cup.

Source: ACSA Annual Report 2011

9 According to Airports Company South Africa traffic volumes for the South African airport network are projected to grow by 5% to 8% in the number of passengers and in aircraft movement. With developed markets struggling under debt crisis, tourists are making emerging markets their holiday destination.

The positive outlook for the local industry further challenges SACAA to ensure that it has the necessary capacity and capabilities needed to match the growing industry.

Furthermore the National Department of Transport in its 2010-13 Strategic Plan, has outlined at least three National Out- comes that SACAA contributes to in order to advance the development of the transport sector in South Africa, namely:

• Outcome2: A transport sector that is safe and secure; • Outcome 5: Increased contribution to job creation; and • Outcome 6: Increased contribution of transport to environmental protection.

The SACAA needs to consider the external environment and adequately plan for mitigating any risks it poses to its functions. During the planning process, factors affecting the organisation from an external perspective were reviewed and impact on the organisation explored.

PESTLE ANALYSIS

In seeking a comprehensivePESTLE understanding ANALYSIS of the organisation’s challenges, an analysis of key external influences was undertaken. Importantly, the impact of these factors on SACAA was evaluated. The tables In seeking a comprehensive understanding of the organisation’s challenges, an analysis of key external influences was below highlight the key factors and impact thereof. undertaken. Importantly, the impact of these factors on SACAA was evaluated. The tables below highlight the key factors and impact thereof. +: Positive, -: Negative, 0: Neutral +: Positive, -: Negative, 0: Neutral

Political Factors Impact on SACAA’s Business Impact Emphasis on the creation of decent employment; + Transformation and development of the industry including regulatory advocacy to encourage new entrants into the Revisions and amendments to industry; + economic development strategies such as the Requirement to encourage and facilitate research and millennium goals (2014), the development in the local aviation and aerospace industry; New Growth Path and IPAP2 and - Regional harmony and integration. +

Change in policy due to the possible review of organs of Possible mandate & scope change or and perhaps a split in state and the outcome(s) from functions. 0 the ANC conference 2012

Impact on oil price will put pressure on industry margins - and SACAA’s revenue streams; and Developments in Arab states and Europe Reduced tourism into Europe and increase in Africa as a destination could be positive for SACAA’s revenue. +

Inclusion of South Africa in SACAA must explore cooperation opportunities in the BRICS and the rapid growth of sphere of aviation industry developments and expand the Chinese and Indian + awareness of being the gateway into Africa. economies Government call to keep Put pressure to SACAA’s revenue streams. aviation charges down -

Economic Factors Impact on SACAA’s Business Impact Double dip recession and the Reduced air travel traffic and thus a reduction in revenue. EURO debt crisis -

Increase in safety audits; 0 Increase in competition in Increased demand for aviation skills and other SACAA domestic markets and entrants resources; and - of new players Impact on revenue streams. + Increasing oil prices result in Decrease in revenue an increase in cost of air travel -

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Social Factors Impact on SACAA’s Business Impact Labour union strikes Negative impact of aviation industry activity. - High illiteracy and Pressure for creation of jobs to address high demand for unemployment levels, and high skills in industry, to maintain a healthy pipeline. + levels of poverty Slow transformation of the Inability to meet Transport Charter requirements. industry -

Increase in revenue due to an increase in passenger + Growing middle class and numbers; related demand for air travel Increase in recreational aviation and demand for better 0 regulations and safety reporting.

Technological Factors Impact on SACAA’s Business Impact

New developments and technologies will require different + skill sets within SACAA; Rapid advances in aircraft and Anticipate new technologies such as the unmanned aircraft + aerospace technology systems as they require safety and security oversight; and Introduce new regulations and guidelines applicable to new technologies. +

Glass-cockpit syndrome Loss of practical skills. -

Legal (and Regulatory) Impact on SACAA’s Business Impact Factors

The Act is in conflict with a Grey areas amongst various entities; and number of key pieces of - legislation – such as the Constitution; PFMA; and Ambiguity with respect to accountability and co-ordination Statutes governing ATNS, of mandate. - ACSA, Air Licencing Council and Economic Regulator. Possibility of a single DoT regulator would change the role and constitution of SACAA -

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Environmental Factors Impact on SACAA’s Business Impact Reduced air travel traffic and thus a reduction in revenue; Climate change (drastic and - change in weather patterns) Climate change and natural disasters (i.e. volcanic and natural disasters eruptions, earthquakes) may put pressure on the aviation

industry and general air travel. - Emissions regulations SACAA may have to impose restrictions on ‘older’ aircraft; and + Increase in aviation charges possibly resulting in fewer passengers. - COP17 resolutions Implementation of COP17 commitments on the implementation of the Convention and the Kyoto Protocol, the Bali Action Plan, agreed at COP 13 in 2007 +

In conclusion,In conclusion, the fin thedings findings from from PESTLE PESTLE analysis analysis reveal reveal opportunitiesopportunities in in the the following following areas: areas:

• Establish• Establishmentment of a robust of a revenuerobust revenue model thatmodel is ablethat isto able sustain to sus thetain SACAA the SACAA mandate mandate through through economic cycles; • Robust economicmanagement cycles; information and risk management capabilities; • Strengthening• Robust managementefforts in promoting information and andinvesting risk management in aviation skillscapabilities; development to enable the growth of the industry• Strengthening; efforts in promoting and investing in aviation skills development to enable the • Delivery growth against of thethe industry;role that the organisation must play in promoting and developing harmornised civil aviation• Delivery activities against and promoting the role that civil the aviation organisation safety must and playsecurity in promoting within the and SADC developing region; harmornised • Delivery civil against aviation environmental activities and obligations promoting suchcivil aviationas conducting safety andindustry security awareness within the campaigns SADC region; on scheduled emissions• Delivery deadlines, against regulations environmental and the obligations impact thereof; such as conducting industry awareness campaigns on • Strengthening scheduled the emissionslegislation deadlines, for optimal regulations operation and of the the SACAA; impact thereof; and • Engaging• Strengthening stakeholders the in legislationa proactive for and optimal meaningful operation manner of the to S advanceACAA; and the growth of the industry. • Engaging stakeholders in a proactive and meaningful manner to advance the growth of the industry.

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OrganisationalOrganisational Perspective Perspective South Africa as a signatory to the Chicago Convention of 1944, is a member of the International Civil Aviation Organization (ICAO), and thereby bound by the 8 ICAO Annexes and Standards & South Africa as a signatory to the Chicago Convention of 1944, is a member of the International Civil Aviation Organiza- Recommendedtion (ICAO), and Practicesthereby bound (SARPs) by thecontained 8 ICAO therein.Annexes Theand strategic Standards planning & Recommended process Practicesincluded (SARPs) a review contained of the businesstherein. The to strategicidentify planningareas for process improvement included ato review build ofan the avi businessation regulator to identify thatareas is forable improvement to fulfil its to function build an withinaviation the regulator aviation that industry is able to value fulfil chain.its function within the aviation industry value chain. SWOT ANALYSIS

STRENGTHS OPPORTUNITIES

. South Africa has a Cat1 Status in terms of the 8 critical . Leadership in regional aviation safety oversight ICAO elements. integration . Visible industry enforcement and improved scope and . Creation of National Aviation Academy to address depth of inspections transformation . Regional & International participation to promote . Strengthening of legal framework to enable industry aviation safety innovation and growth . ICAO recognition for SA leading role in Avmed in . Inclusion of cargo fees in the revenue model Africa as a centre of excellence . Implementation integrated aviation safety management . Universal Safety Oversight Programme (USOAP) Audit system was above world average in all 8 Safety Critical . Effective stakeholder engagement areas. . Safety programmes and regulations in place to ensure the successful implementation of industry Safety Management System (SMS). WEAKNESS THREATS

. Lack of integrated IT infrastructure to coordinate and . IT security (Inherent risk) analyze oversight outcomes. . Skills drain in technical sectors . Lack of rigorous performance management and . African safety record. productivity measurement. . SACAA Act is not aligned to other key pieces of . Poor information management capabilities legislation and leaves grey areas in terms of roles of . Sub-optimal revenue model other Transport agencies . Sub-optimal human resources management processes . Stakeholder engagement and industry co-ordination . Substandard inspectorate knowledge on legal matters

In orderorder for for SACAA SACAA to effectively to effectively discharge discharge it’s mandate, it’s mandate,a strategy thata strategyaddresses that the externaladdresses and organisationalthe external andchal- lenges outlines above was developed. organisational challenges outlines above was developed.

14 Organisational Structure

The management structure of SACAA as of the 31st March 2011 is outlined below.

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D A T E T r a i n g d D e v l o p m n t H u m a n R e s o r c

H u m a n R e s o r c , E x e c u t i v M a n g r C o m p a n y S e c r t a y : &

F i n a c e F i n a c e C A B O R D N A M E I F a c i l t e s I n f o r m a t i T e c h n o l g y P r o c u e m n t G e n r a l M g B L O C K E T R S

I n t e r a l A u d i & C h i e f A u d t E x c v :

I n f o r m a t i L i c e n s g C o m p l i a n c e M a n g e m t E x a m i n t o s R i s k Q u a l t y &

C l i e n t S r v c s , G e n r a l M g : R i s k & C o m p l a n c e S I G N A T U R E B O A R D C H I P E S N

& M i n s t e r o f T a p

L e g a l C a r g o C e r t i f c a o n T r a i n g d ) A v i a t o n S e c u r y A i r p o t s & l n e G e n r a l M g : E x e c u t i v M a n g r : D a n g e r o u s G d ( D C A ( V a c n t ) * & A v i a t o n D i r e c t o f C v l

U n i t

S e r v i c

F a c i l t e s A i r S a f e t y n f r a s t u c e I A i r N a v g t o n A e r o d m s F l i g h t I n s p e c o

G e n r a l M g : M a r k e t i n g C o r p a t e C o m u n i c a t s & :

2 0 1

D A T E S t a n d r s A i r S a f e t y S t a n d r s

O p e r a t i o n s F l i g h t O p e r a o n s A v i a t o n M e d c G e n r a l M g A v i a t o n P e r s l V a c n t )

& I n c i d e t & I n c i d e t

C o m i t e I n v e s t i g a o N A M E I G T H W A L S a f e t y A d v i s o r A i r c a f t A i r c a f t S e n i o r M a g m t . A c i d e n t A c i d e n t E x e c u t i v M a n g r : Z I n v e s t i g a o ( C e r t i f c a o n A i r w o t h n e s A i r c a f t S e y B L O C K E T R S G e n r a l M g : S t r u c e 0 7 O o b Organisational Structure

The management structure of SACAA as the 31st March 2011 is outlined below. P r o j e c t s S I G N A T U R E A C T I N G D D C A O f i c e E x e c u t i v M a n g r :

15 2. LEGISLATIVE AND OTHER MANDATES

The South African Civil Aviation Authority was established on the 1st October 1998 following the enactment of the South African Civil Aviation Authority Act. The South African Civil Aviation Authority is an agency of the Department of Trans- port. The Act provides for the establishment of a stand-alone authority mandated with promoting, regulating, supporting, enforcing and continuously improving levels of safety and security throughout the civil aviation industry. The above is to be achieved by complying with the International Civil Aviation Authority (ICAO) Standards and Recommended Practices (SARPs) whilst considering the local context. This mandate relates to aviation safety and security oversight of airspace, airports, aircraft, operations and personnel. In discharging the mandate, SACAA’s role encompases:

• Regulation - Developing and promoting appropriate, clear and concise regulatory requirements, and technical aviation safety and security standards; - Formulating and approving supporting regulations and technical standards through a consultative process with the aviation industry in terms of section 156 of this Act; and - Overseeing and regulating the flight inspection of navigational aids to aviation.

• Aviation Security, Aircraft Safety and Air Safety - Developing effective enforcement strategies to ensure compliance with aviation safety and security standards; - Conducting regular reviews of the system of civil aviation safety and security - The enhancement of aviation security by the development and dissemination of progressive administrative and technical practices, promoting their use by security services, airport administrators and air service operators; - Reviewing and ensuring the adequacy of security programs and associated documentation produced by airports, air service operators and cargo operations, monitoring their implementation to ensure continuing effectiveness and incorporation of amendments as required; - Conducting comprehensive aviation industry surveillance, including assessment of safety and security related decisions taken by industry management at all levels for their impact on aviation safety and security; - Monitoring, implementing and enforcing the National Aviation Security Program (NASP); - Conducting regular and timely assessment of international safety and security developments; and - The formulating of a national aviation disaster plan.

• Stakeholder Management - Encouraging a greater acceptance by the aviation industry of its obligation to maintain high standards of aviation safety and security, through: • comprehensive safety and security education and training programs; • accurate and timely aviation safety and security advice; & • fostering an awareness in industry management, and within the community generally, of the importance of aviation safety and security and compliance with relevant legislation. - Promoting communication with all interested parties on aviation safety and security issues; and - Issuing certificates, licenses, registrations and permits.

16 3. VISION

To be a model enabler ensuring sustainability in a safe, secure, and environmentally complaint aviation industry To be a model enabler of a safe, secure and sustainable aviation environment and industry To be a model enabler ensuring sustainability in a safe, secure and environmentally friendly aviation industry

4. MISSION

To oversee and regulate civil aviation safety and security, inline with international standards; To foster an environmentally friendly aviation industry; To minimize the impact of the aviation industry on the environment; and To promote transformation and development of the industry in a sustainable manner.

5. VALUES

VALUES BEHAVIOURAL ATTRIBUTES Demonstrate a genuine shared vision of the organization, through our high quality Commitment performance and service that we deliver to our stakeholders consistently.

Maintaining high ethical standards and approaching issues professionally without Integrity any bias and in a transparent manner that solicits trust amongst all our stakeholders.

Ensure that each of our Customers will receive high quality Customer Service and an experience of our organisation that will exceed their expectations on each and Customer Focused every interaction.

Recognize that through partnerships with various stakeholders, we will create new opportunities, building mutually beneficial relationships, whilst generating better Collaboration decisions for SACAA.

We are answerable to successes and failures of our actions and seek not to unduly Accountability apportion blame to others.

6.6. StrategicStrategic Outcome Outcome-Oriented-Oriented Goals Goals In response to the industry dynamics and strategic challenges outlined in the Situational Analysis above, the strategic focus for SACAA during the 2012/13 – 17 planning period will be maintaining delivery on mandateIn response whilst todriving the industry organisational dynamics and sustainability, strategic challenges from a outlined financial, in the organisational Situational Analysis capability above, & the capacity strategic as wellfocus as for corporate SACAA duringgovernance the 2012/13 perspectives. – 17 planning In addition, period thiswill bestrategy maintaining proposes delivery a turnaround on mandate programme whilst driving that seeksorganisational to renew sustainability, the organisation, from a tfinancial,hrough targeted, organisational high impactcapability initiatives. & capacity as well as corporate governance perspectives. In addition, this strategy proposes a turnaround programme that seeks to renew the organisation, The tablethrough below targeted, outlines high aimpact summary initiatives. of strategic goals for 2012/13 – 17 as well as the strategic objectives that would be key in driving each. These strategic goals inform the programmes of the South African Civil AviationThe tableAuthority below for outlines the afore a summary-mentioned of strategic planning goals period. for 2012/13 – 17 as well as the strategic objectives that would be key in driving each. These strategic goals inform the programmes of the South African Civil Aviation Authority for the afore-mentioned planning period.

DoT Outcomes Strategic Goal Strategic Objectives

. Optimized revenue streams . Enhanced financial To develop, optimize and management processes, Organizational enabler for manage SACAA’s revenue systems and controls effective strategy execution streams and financial management systems.

. Attain zero external audit Demonstrate that the principles of findings corporate governance are . Well-managed / mitigated Organizational enabler for underpinning the work of every internal risks effective strategy execution SACAA team member and every . Corporate reporting in line SACAA service. with applicable statutes and regulations. . Equitable and successfully implemented BBBEE plan

Influence the breadth and pace of . Harmonized industry Outcome 5: Increased the industry development and development and contribution to job creation transformation agenda. transformation initiatives

. Continuously review Outcome 2: A transport regulations for alignment, sector that is safe and secure Build a continuously improving application, relevance and & safety and security (operations, benchmarking Outcome 6: Increased aircraft, aviation security, . Establish a safety and contribution of transport to infrastructure) environment. security systems audit environmental protection. capacity . Become an employer of choice Build a resilient organisational . Establish a high performance Organizational enabler for capacity, capability with a high culture effective strategy execution performance culture . Establish an stable but flexible organizational structure

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16/17 Report on the on the Report Review of 31 by Model 2017 Mar < 3 significant AGSCM findings per annum < 3 significant AGfindings annum per

AG AG 15/16 Completion of of Completion Implementation Jun 30 by 2016 < 3 significant AGSCM findings per annum < 3 significant FM findings per annum

findings repeat repeat 14/15

TARGET(S) Within 10% of Implementation 31 by Plan 2015 Mar No No significant FM 10% and reduction findings total Mar 31 by 2015 SCM findings SCM findings 10% and in reduction findings total Mar 31 by 2015

0% of findings 13/14

Within 1 Implementation 31 by Plan 2014 Mar No repeat SCM findings 10% and in reduction findings total Mar 31 by 2014 No significant FM and 10% 10% and in reduction findings total Mar 31 by 2014

findings

12/13 Board Board by Approval 2012 30 Sep Treasury Endorsement by 15of Dec 2013 No repeat SCM findings 10% and in reduction findings total Mar 31 by 2013 No significant FM and 10% 10% and in reduction findings total Mar 31 by 2013

AG AG

FM Baseline (2011/12) EXCO approval of of EXCO approval Mar 31 by plan 2012 AG SCMNo repeat auditfindings by 31 Mar 2012 No repeat auditfindings by 31 Mar 2012

out out -

dings

INDICATORS Number of AG AG of Number Performance Performance Revenue against Roll Model SCM non - compliance findings Number of significant financial management (FM) AGfin Plan STRATEGIC OBJECTIVES STRATEGIC

SCM

1. Programme One: Financial Sustainability OUTPUTS processes Efficient mix of of mix Efficient streams revenue Practice Best Efficient Financial management processes PART B: STRATEGIC OBJECTIVES B: STRATEGIC PART

To develop, optimise and manage revenue streams and financial management systems. and andfinancial manage streams revenue optimise develop, To

: Financial viability and sustainability

STRATEGIC OBJECTIVES STRATEGIC GOAL 1: OUTCOME Optimised revenue streams financial Enhanced management processes, systems and controls LINK/DEPENDENCIES

16/17 No repeat No repeat significant findings & 10% in Reduction findings total Mar 31 by 2017 Unqualified AGaudit 31 for report 2012 Mar

16 15/16 No repeat No repeat significant findings & 10% in Reduction findings total Mar 31 by 2016 Unqualified AGaudit 31 for report 20 Mar

ings ings 14/15 TARGET(S) No repeat No repeat significant findings & 10% in Reduction total find Mar 31 by 2015 Unqualified AGaudit 31 for report 2015 Mar

13/14 No repeat No repeat significant findings & 10% in Reduction findings total Mar 31 by 2014 Unqualified AGaudit 31 for report 2014 Mar

12/13 No repeat No repeat significant findings & 10% in Reduction findings total Mar 31 by 2013 Unqualified AGaudit 31 for report 2013 Mar

e underpinning the work of every SACAA member every team of work the underpinning e

Baseline (2011/12) Number of 11/12 Number of auditfindings by l AuditInterna set Mar 31 at baseline 2012 Unqualified AGPerformance 31 for report audit 2012 Mar

INDICATORS Number of Audit Internal findings AGAudit Opinion

rting OUTPUTS Effective Internal Internal Effective Risk and Audit Management and Accurate annual relevant corporate performance repo

Programme Two: Corporate Governance Programme Two:

Demonstrate that the principles of corporate governance ar governance corporate of principles the that Demonstrate

: Compliance to legislative requirements; adherence to internal controls; acknowledged for sustainability achievements and achievements sustainability for acknowledged controls; internal to adherence requirements; legislative to Compliance : BJECTIVES managed risks managed risks STRATEGIC O - STRATEGIC GOAL 2: SACAAand every service. OUTCOME entrepreneurship. social corporate Well controls & internal reporting Corporate LINK/DEPENDENCIES

oyment 16/17 Performance Performance Achievement 1% rating 1% rating improvement Public against BBBEE Sector Mar targets 2017 Sector Public of Empl Equity targets 80% on participation ICAO initiatives in AFI region 80% on participation ICAO initiatives SADCin region

15/16 Performan of Achievement 2% rating 2% rating improvement% 80% on participation ICAO initiatives SADCin region Public against BBBEE Sector Mar by targets 2016 Sector Public Employment Equity targets 80% on participation ICAO initiatives in AFI region

ng 14/15 TARGET(S) Performance Performance of Achievement 80% on participation ICAO initiatives SADCin region 2% rati improvement% Public against BBBEE Sector Mar by targets 2015 Sector Public Employment Equity targets 80% on participation ICAO initiatives in AFI region

13/14 articipationon Performance Performance of Achievement 80% on participation ICAO initiatives SADCin region Public against BBBEE Sector Mar by targets 2014 Sector Public Employment Equity targets 80% p ICAO initiatives in AFI region 2% rating 2% rating Improvement

nt of of nt 12/13

Achieveme 80% on participation ICAO initiatives SADCin region Performance Performance Public against BBBEE Sector Mar by targets 2013 Sector Public Employment Equity targets Survey by conducted 31 August 80% on participation ICAO initiatives in AFI region

Baseline (2011/12) Achievement of of Achievement Base line being being line Base participationfor 31 ending year 2012 March BBBEE Verification by 2012 31 March Sector Public Employment Equity targets Survey on conducted by stakeholders 31 Mar 2012 being line Base participationfor 31 ending year 2012 March

INDICATORS Level of of Level participation Achievement of of Achievement Sector Public Employment Equity targets of Level participation Achievement of of Achievement Sector Public BBBEE targets Stakeholder survey

AFIregion OUTPUTS 3 yr BBBEE 3 yr strategy implemented EE Implemented Plan Improved Stakeholder relationships Increased participation in initiatives Established regional (SADC) corporation oversight capacity creation job to contribution Increased DoT Outcome 5:

. agenda and transformation development industry the of and pace breadth the Influence

Programme Three: Industry Development and Transformation try in the areas of development and transformation. development of areas the in try indus aviation the in good practice of model as Acknowledged : STRATEGIC OBJECTIVES

STRATEGIC GOAL 3: OUTCOME and Equitable successfully BBBEE implemented plan Development initiatives are with harmonised relevant stakeholders LINK/DEPENDENCIES

ar ly)

16/17

At least 5% on improvement enforcement statistics on historical based (Annual data 10% variance against against 10% variance 31 M by plan 2017 80% of 80% of implementable Safety Recommendations 31 by implemented Mar 2017 MSP Informed by by MSP Informed industry risk profiling 2017 31 March n/a n/a 10% variance against against 10% variance 31 Mar by plan 2017 n/a n/a n/a

ble Safety

15/16

At least 5% on improvement enforcement statistics on historical based (Annually) data 10% variance against against 10% variance 31 Mar by plan 2016 80% of 80% of implementa Recommendations 31 by implemented Mar 2016 MSP Informed by by MSP Informed industry risk profiling 31 Mar 2016 n/a n/a 10% variance against against 10% variance 31 Mar by plan 2016 n/a n/a n/a

14/15 TARGET(S)

At least 5% on improvement enforcement on based statistics data historical (Annually) n/a n/a 10% variance 31 by plan against Mar 2015 80% of 80% of implementable Safety Recommendations 31 by implemented Mar 2015 10% variance 31 by plan against Mar 2015 n/a n/a MSP Informed by by MSP Informed industry risk 31 Mar profiling 2015 n/a

) 13/14

At least 5% on improvement enforcement on based statistics data historical (Annually n/a n/a 10% variance 31 by plan aga inst Mar 2014 CARs and CATS New to aligned SACAA 31 by Act March 2014 All findings closed findings All 10% variance 31 by plan against Mar 2014 80% of 80% of implementable Safety Recommendations 31 by implemented Mar 2014 10% variance 31 by plan against Mar 2014 MSP Informed by by MSP Informed industry risk 31 Mar profiling 2014 by 31 by

12/13

At least 5% on improvement enforcement on based statistics data historical (Annually) Industry profiling profiling Industry implemented 2013 Sept EAP Framework by 31Approved March 2012 10% variance by 31 p lan against Mar 2013 10% variance 31 by plan against Mar 2013 10 Variance 10 Variance against Progress plan Act SACAA amendements 31 by submitted March 2012 80% of 80% of implementable Safety Recommendations 31 by implemented Mar 2013 Development of Environmental 31 by regulations March 2013 10% variance 31 by plan against Mar 2013

afety and security (operations, aircraft, aviation security, and infrastructure) environment. environment. and infrastructure) security, aviation aircraft, (operations, and security afety ironmental ironmental Baselin (2011/12) Establishment of of Establishment base Enforcement line statistics by 2012 31 March Established Established AIID independent advisory by 31 committee Mar 2012 All MSP by standardised 2012 31 March Approved Board AEP Framework 31 March by 2012 approved Board Env by Plan Protection March 2012 Baseline 31 established March 2012 Approved Board and Strategy IT 31 by Plan March 2012 approved Board business process plan optimisation 31 December 2011 Approved Approved Action Corrective by Board by Plan 2011 31 Dec of Submission Act SACAA to amendments 31 March DoT by 2012

uously improving s improving uously Progress against against Progress Variance to plan plan to Variance INDICATORS Reduced in in Reduced number of per accidents annum Progress against against Progress Action Corrective Plan Reduced ex emptions against Progress Plan plan out MIS roll Progresses against against Progresses Business Process Optimisation Plan Progress against against Progress Aviation Environmental (AEP) Protection program account into taking movement industry

Build a contin Build versight

OUTPUTS Improved General General Improved Safety Advisory Safety Board recommendations implemented Standardised risk risk Standardised Master based Plan Surveillance (MSP) Aviation o capacity ICAO Universal Security Audit Program findings resolved to Compliance ICAO Managed aviation on the impact environment Alignment with Conference Parties of 17 /DoT Guidelines on environment Audits Annual according conducted MSP to Established Management System Information (MIS) business Optimised systems and processes and secure safe is that sector A transport 2: Outcome DoT protection environmental to transport of contribution Increased 6: Outcome Dot Programme Four: Aviation Safety and Security Programme Four: Aviation

: International acknowledgement for consistent high performance in safety and security. safety in performance high consistent for acknowledgement International :

S Regulate, Regulate, STRATEGIC OBJECTIVES STRATEGIC GOAL 4: OUTCOME and Promote Oversee Civil Aviation and Safety Security LINK

23 1

ariance ariance 16/17

31 March 31 March Improve 2 Improve on positions previous year’s 31 by rating March 2017 35% of red issues 3 by addressed March 2017 YoY 5% reduction by 2017 10% variance by plan against 31 Mar 2017 10% variance against Development 31 Mar by plan 2017 10% v by plan against 31 Mar 2017 10% variance by plan against 31 Mar 2017 n/a

15/16

Improve 2 Improve on positions previous year’s 31 by rating March 2016 30% of red issues 31 by addressed March 2016 YoY 5% reduction 31 March by 2016 10% variance by plan against 31 Mar 2016 10% variance against Development 31 Mar by plan 2016 10% variance by plan against 31 Mar 2016 10% variance by plan against 31 Mar 2016 n/a

. 14/15

TARGET(S) Improve 2 Improve on positions previous year’s 31 by rating March 2015 25% of red issues 31 by addressed March 2015 YoY 5% reduction 31 March by 2015 10% variance by plan against 31 Mar 2015 10% variance against Development 31 Mar by plan 2015 10% variance by plan against 31 Mar 2015 10% variance by plan against 31 Mar 2015 n/a

n by ance 2014

13/14

performance culture performance - 10% variance by plan against 31 Mar 2014 Improve 2 Improve on positions previous year’s 31 by rating March 20% of red issues 31 by addressed March 2014 YoY 5% reduction 31 March by 2014 10% variance by plan against 31 Mar 2014 10% vari against Development 31 Mar by plan 2014 10% variance pla against 31 Mar 2014 n/a

2013 12/13 Improve 2 Improve on positions previous year’s 31 by rating March 2013 10% of red issues 31 by addressed March 2013 YoY 5% reduction 31 March by 2013 10% variance by plan against 31 Mar 2013 10% variance by plan against 31 Mar of Implementation by new structure 2013 31 March 10% variance against Development 31 Mar by plan 2013 Implementation of of Implementation 31 March by plan 2013 that embrases a high embrases that

2012 Survey Rating Rating Survey Baseline (2011/12) Board approved approved Board succession plan implementation 31 March 2012 by FAC approved plan Compensation 31 March 2012 by Approved Board Organisational 31 by Structure September Culture Culture 31 March 2012 by on 31 set Baseline March 2012 Approved Board Performance Management System 31 March 2012 by Approved Board Workforce Skills Development by Plan 2012 31 March First result of Choice of Employer 31 by Rating Survey March 2010

ting

rightroles at

rables and and rables

lear and well and well lear raining and and raining INDICATORS Deploy the right time Appropriate reward reward Appropriate structure Employee Culture Culture Employee Survey Ra turnover staff Annual rate T line in development business the with strategy C understood performance delive process rating Employer of choice choice of Employer rating Progress against against Progress succession plan implementation

Build resilient organisational capability and capacity capability organisational resilient Build 50 of the the 50 of

: OUTPUTS 5 Conducive culture organisational staff in Reduction turnover Performance Effective Management System workforce Capable annual Employer of of Employer annual Choice Survey In top Effective Talent Management Optimal organisational capacity Programme Five: Organisational Capability, Capacity and Culture Programme Five: Organisational Capability,

: Adequately resourced organisation for strategy implementation strategy for organisation resourced Adequately :

that enables enables that

S STRATEGIC OBJECTIVES STRATEGIC GOAL OUTCOME Become an employer choice of a high Establish culture performance an Establish organisational structure LINK delivery of strategy

RISK MANAGEMENT 2. RISK MANAGEMENT The Thetable table below below outlines outlines a alist list of of the the key key risksrisks thatthat maymay affect affect the the realisation realisation of eachof each of the of Programmesthe Programmes above and abovemitigation and mitigation plans for plans the respective for the risks:respective risks:

NUMBER Risk Mitigating Action

. Financial sustainability of SACAA . Implementation of a new revenue model compromised as a result of volatile that is not reliant on a single income revenue streams stream 1 . Poor management of fraud . Regular internal audits, monitoring and . Inadequate financial management evaluation processes, systems and controls . Strengthening financial management systems . Breakdown of internal processes and . Implementation of improved business controls processes and systems 2 . Qualified performance audit opinion . Implementation of integrated information management systems . Implementation of corrective action plans . Delayed transformation of the aviation . Development and implementation of BBBEE sector plans that address transformational . Deterioration of Safety and Security levels imperatives 3 in AFI & SADC . Increased participation regional safety and security oversight and in AFI and SADC region . Deterioration of national aviation safety . Implementation of Safety Advisory Board and security levels Recommendations . Exemptions may become the norm rather . Enforcement of regulations than the exception . Effective oversight processes 4 . Non- Compliance with International . Implementation of COP /DoT guidelines environmental & sustainability initiatives . Improved risk based oversight in General . Reputational risk due to decisions based Aviation on incorrect statistics . Organization will not have the right skills . Implement initiatives geared towards 5 at the right place at the right time for delivering a capacitated, capable effective execution of strategy organisation.

23 | Page SACAA STRATEGIC PLAN 2012/13 – 2016/17 - RESOURCE CONSIDERATION 3. Successful implementation of the strategy is dependent on the resources the organisation will have at its disposal, in disposal, its at have will the organisation the resources on dependent is strategy of the implementation Successful cluding financial, personnel, infrastructure, etc. Furthermore, SACAA is committed to addressing all internal factors, people and processes. set targets, such as technology, ability to meet it’s which may directly or indirectly impact it’s Financial resources that are required for implementation of the strategy depicted in table below.

26 PART C: LINKS TO OTHER PLANS

PART C: LINKS TO OTHER PLANS PART C: LINKS TO OTHER PLANS TURNAROUND STRATEGY “Business as usual” would notTURNAROUND be adequate to STRATEGY address the strategic challenges SACAA faces as outlined in the situational analysis above. The Board and EXCO are aligned in the view that SACAA needs to drive a holistic turnaround programme with expedience. The turnaround would address the fundamentals required “Business as usual” would not be adequate to address the strategic challenges SACAA faces as outlined in the situ- for organisational sustainability and discharging its mandate. The organisation has in the past paid more ational analysis above. The Board and EXCO are aligned in the view that SACAA needs to drive a holistic turn- attention to its core operational delivery, evident in the exceptional levels of compliance with ICAO around programme with expedience. The turnaround would address the fundamentals required for organisational standards, with little effort being made to build the organisation that must maintain and sustain these sustainability and discharging its mandate. The organisation has in the past paid more attention to its core opera- achievements. Monitoring ongoing delivery of SACAA’s core mandate is outlined in the programmes in tional delivery, evident in the exceptional levels of compliance with ICAO standards, with little effort being made to Part B, above. build the organisation that must maintain and sustain these achievements. Monitoring ongoing delivery of SACAA’s Thecore turnaround mandate is programme outlined in theis aimed programmes at building in Part the B, foundation above. for organisational sustainability. The Board will manage the turnaround programme through its subcommittees, with sponsorship by Chairs of relevant subcommitteesThe turnaround to programmeensure strategic is aimed leadership. at building the foundation for organisational sustainability. The Board will manage the turnaround programme through its subcommittees, with sponsorship by Chairs of relevant subcommittees to ensure strategic leadership. Turnaround Pillars Turnaround Pillars

Organisational Renewal and Capacity Building

Industry Revenue Model Transforma-tion Operating Customer Enhance-ment & Develop- Model Redesign Service Delivery ment

Stakeholder Engagement, Marketing and Communication

Strategic Initiatives for each of the pillars will be driven by the organisation in the coming fiscal, to provide traction and maintain momentum for the turnaround.

28 25 | Page SACAA STRATEGIC PLAN 2012/13 – 2016/17 Turnaround Pillar Strategic Initiatives Organisational Renewal and Capacity Building 1.Drive culture change in line with the organisation’s values and required behaviours, mobilisation and communication.

2. Map capacity and capability requirements and develop and deploy a plan for fulfillment.

Revenue Model Enhancement 3. Revise and implement revenue model to optimise & expand revenue streams.

4. Review pricing strategy for all SACAA’s products and services informed by a robust activity-based costing model.

5. Develop and deploy the financial system’s management & controls improvement strategy and plan.

6. Develop and implement a cost containment plan.

Turnaround Pillars Industry Transformation and Development 7. Develop and implement industry transformation strategy with clear initiatives including, harmonising efforts with relevant government departments and stakeholders, raising awareness of opportunities within the aviation sector, promote the aviation charter (aviation sub-charters) and development of Aviation Academy.

Operating Model Redesign 8. Design operating model to enable deployment of strategy and drive operational efficiency. Customer Service Delivery 9. Develop and deploy strategy for optimal customer service approach.

10. Develop a customer service charter to drive a customer- centric approach in the organization.

Stakeholder Engagement and involvement 11. Establish and implement a stakeholder management strategy (map stakeholder matrix, understand stakeholder expectations, develop mutually beneficial plans to meet expectations and agree a stakeholder engagement process with clearly defined accountabilities).

12. Create cohesiveness and common goals for the aviation industry.

13. Strengthen existing legislation.

29 CRITICAL SUCCESS FACTORS

To ensure success of the turnaround programme, a number of prerequisites must be in place, such as:

• Cohesive turnaround aspiration agreed and bought-into by all relevant stakeholders; • Adequate resources, financial, human, etc; • A change management process to take the organisation along; and • Implementation programme management discipline to ensure delivery of the turnaround according to agreed timelines.