AnnualReport 14–15 For all enquiries contact Manager Corporate Communication Airservices Australia Address Alan Woods Building 25 Constitution Avenue Canberra ACT 2600 Australia Mail GPO Box 367 Canberra ACT 2601 Australia Phone +61 2 6268 4111 1300 301 120 Fax + 61 2 6268 5693 Email [email protected] Website www.airservicesaustralia.com ABN 59 698 720 886 © Airservices Australia 2015 This work is copyright. Apart from any use as permitted 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: Manager, Corporate Communication Airservices Australia GPO Box 367 Canberra City ACT 2601 Telephone (02) 6268 4867 Fax (02) 6268 5688 Web address of this report: www.airservicesaustralia.com/publications/corporate-publications ISSN 1327-6980 (Print) ISSN 2205-2887 (Online) Produced by Airservices Australia Edited and indexed by Morris Walker II Airservices Annual Report 2014–15 Contents Letter of transmittal 01 Chair’s report 02 Chief Executive Officer’s report 04 Who we are 08 Corporate overview 12 Principal activities 13 Enabling legislation, objectives and functions 15 Annual reporting requirements and responsible Minister 15 Corporate structure 16 Corporate governance 16 Management and accountability 20 Our financial performance 21 Ministerial directions 24 Significant changes outside of the financial year 25 Report on performance 32 Maximising safety performance 33 High-performing organisation 40 Core operational and business excellence 47 Financial statements 58 Appendices 110 Appendix 1: Board memberships, meetings and committees 111 Appendix 2: Statement of Expectations 117 Appendix 3: Statement of Intent 123 Appendix 4: Statutory and administrative information 128 Appendix 5: Staff equity and diversity progress report 135 Appendix 6: Workforce plan progress report 145 Appendix 7: Environmental sustainability report 149 Appendix 8: Our stakeholders and industry partners 152 Appendix 9: Noise Complaints and Information Service data 157 Appendix 10: Aircraft Noise Ombudsman Annual Report 158 Glossary 179 Compliance index 180 Index 182 Airservices Annual Report 2014–15 III IV Airservices Annual Report 2014–15 Letter of transmittal Chair GPO Box 367, Canberra ACT 2601 25 Constitution Avenue, Canberra ACT 2601 t 02 6268 4859 f 02 6268 5686 www.airservicesaustralia.com ABN 59 698 720 886 The Hon. Warren Truss MP Deputy Prime Minister Minister for Infrastructure and Regional Development Parliament House Canberra ACT 2600 Dear Deputy Prime Minister Airservices Annual Report 2014–15 On behalf of the Board of Airservices Australia, I am pleased to submit to you the Airservices Australia Annual Report for the financial year 2014–15. The report has been prepared in accordance with the requirements of the Air Services Act 1995 and the Public Governance, Performance and Accountability Act 2013 which requires Airservices to provide an annual report for tabling in Parliament. The report outlines the achievements and milestones met by Airservices, and includes a review of operations and financial statements for the year ending 30 June 2015. Yours sincerely Air Chief Marshal Angus Houston AK, AFC (Ret’d) Chair Airservices Australia 30 September 2015 Airservices Annual Report 2014–15 01 Chair’s report I am pleased to present the Airservices Annual Report 2014–15. This year has been a challenging and rewarding year, both for me personally and for the aviation industry. I was delighted to be reappointed as the Chair of Airservices Board for a further two years. This is an important time for the organisation, and I look forward to continuing the work of the past three years. Airservices, like the broader aviation industry, is managing through a time of transformation. The transformation we are undertaking is built on the cornerstone of safety first as we continue to deliver one of the best air traffic management safety systems world wide. Following the tragic disappearance of Malaysian Airlines MH370, global attention focused on aircraft tracking. In response to this, the Board and I were very pleased that Airservices was instrumental in developing and leading an aircraft tracking initiative in collaboration with our major customers—Qantas, Virgin Australia and global satellite provider Inmarsat—to closely monitor flights in oceanic areas. Australia has now become one of the first countries in the world to undertake to more closely track all suitably equipped flights in its oceanic airspace following the expansion of the trial. Our air traffic controllers are now able to monitor international aircraft flying in our airspace every 14 minutes. This reporting interval can be further reduced to one minute in case of an emergency or if the aircraft deviates from its assigned route. Data from our work will be used to inform ongoing international efforts to develop global standards and comprehensive solutions for future aircraft tracking. 02 Airservices Annual Report 2014–15 This has also been a year where Airservices At Airservices, we understand the pressures continued its important investment in capital facing our customers and the aviation industry works, and increased our focus on delivering in general. As we commence work on the value for our customers. 2016–2021 Long Term Pricing Agreement, these pressures will be taken into account, as will the Today we face the challenges of a truly balance between affordable charges and cost interconnected world, rapid advances in recovery for crucial infrastructure development to technology and increased aircraft traffic meet our regulatory requirements and maintain growth. Now, more than ever, there is pressure the highest standard of aviation safety. on infrastructure and service providers like Airservices to deliver increasing value for our All of our accomplishments would not be customers in terms of operational efficiency and possible without our people who are genuinely cost reduction. invested in delivering the best outcomes possible for the organisation, our customers and The Board and I also took great pride in our stakeholders. announcing at Avalon Airshow on 27 February, that Thales Australia had been chosen to It has been a pleasure to serve as the Chair commence work with Airservices and the Royal of the Airservices Board and to lead a team of Australian Air Force to develop OneSKY Australia. professional staff who are committed to delivering for our customers and keeping Australia flying OneSKY is a critical transformation of our air safely. I look forward to my next two years in traffic management in our aviation history. We the role. are rebuilding the infrastructure of our skies to ensure Australia will have the most advanced and integrated air traffic control system in the world. In 2015, we celebrate our 20th year as an organisation, following the division of the former Air Chief Marshal Sir Angus Houston Civil Aviation Authority into Airservices and the AK, AFC (Ret’d) Civil Aviation Safety Authority in 1995. During this Chair 20 year period we have seen significant change within the industry, from improved aircraft that are quieter and more fuel efficient, to the latest satellite technology, and of course a substantial increase in passenger movements around the world. Airservices has been at the forefront of significant advancement in our air traffic management over the past two decades. The next 20 years look just as exciting and these will be underpinned by our delivery of OneSKY. Airservices Annual Report 2014–15 03 Chief Executive Officer’s report Australia depends on aviation to link its people with each other and to the rest of the globe, and during the past year we have continued to perform our role – providing safe, secure and efficient air navigation and aviation rescue fire fighting services, with passion and precision, underpinning a range of business, trade and tourism activities for the aviation industry, the community and the nation. Aviation is an enabling industry contributing directly and indirectly to Australia’s economic prosperity, and during the 2014–15 financial year, our services helped to deliver approximately 90 million passengers flying on more than four million flights safely and securely to their destinations. The past year has been one of great progress for the aviation industry generally, and in particular for us as we undergo the transformation of our business, and break new ground as we continue to deliver services to the industry. In February, we reached a fundamental milestone, with Thales Australia chosen to commence advanced work with Airservices and the Department of Defence to replace the civilian and military air traffic control systems. This replacement of our core operational air traffic management system with one harmonised system is being delivered as part of the OneSKY Australia Program, and will ensure that Australia has the most advanced and integrated air traffic control system in the world, allowing us to provide operational efficiency improvements for future growth and ensure we are meeting the demands of our customers and delivering them value for money. Notably, we have just reached our 20th anniversary, and it is interesting to reflect on the evolution of aviation, the technology we use and how air travel has increased during the past two decades. 04 Airservices Annual Report 2014–15 Our air traffic flow management (ATFM) program I am also proud that we are playing a role