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Airservices Australia Annual Report 1997-1998

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A I R S E R V I C E S A U S T R A L I A A N N U A L R E P O R T 1 9 9 7 - 1 9 9 8 A N N U A L R E P O R T i (c) Commonwealth of Australia 1998 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 permission from Airservices Australia. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Corporate and Industry Affairs, Airservices Australia, GPO BOX 367, Canberra City, ACT 2601. Telephone: (02) 6268 4111 Fax: (02) 6268 5688. Produced by Corporate and Industry Affairs, Airservices Australia Printed by Goanna Print A N N U A L R E P O R T i i C o n t e n t s S e c t i o n P a g e L e t t e r of transmittal v I n t r o d u c t i o n 1 Chairman’s year in review 2 C o r p o r a t e o v e r v i e w 3 Report from the Chief Executive 5 Financial p e r f o r m a n c e 8 S t a f f resources and statutory information 1 0 S t a f f by category table 1 4 C o r p o r a t e s t r u c t u r e 1 6 Report of operations 1 7 Objective 1 “Stakeholders” 1 7 Objective 2 “Competitiveness” 2 5 Objective 3 “Business development” 3 1 Objective 4 “Safety and environment” 3 3 Objective 5 “Staff” 3 7 Objective 6 “Globalisation” 4 0 B u s i n e s s o u t l o o k 4 3 L i s t of publications 4 5 Compliance i n d e x 4 9 A p p e n d i c e s 5 1 Appendix 1—Project summaries 5 1 Appendix 2—Ministerial directive 6 5 Appendix 3—Airservices Board 7 1 Appendix 4—Board biographies 7 2 Appendix 5—Glossary 7 4 General i n d e x 7 6 Financial s t a t e m e n t s 8 5 A N N U A L R E P O R T i i i A i rs e rvices Au s t ra l i a Mission “ To provide a safe, efficient and effe c t ive air tra ffic system” A N N U A L R E P O R T i v Letter of tra n s m i t t a l Date 15 September 1998 The Hon Mark Vaile MP Minister for Transport and Regional Development Parliament House CANBERRA ACT 2600 Dear Minister I have pleasure in submitting to you the Airservices Australia Annual Report for the period 1 July 1997 to 30 June 1998. The report of operations and financial statements have been prepared in accordance with the Air Services Act 1995, division 2 of Part XI of the Audit Act 1901 and division 2 of Part 3 of the Commonwealth Authorities and Companies Act, except for compliance with paragraph 1(a) of Schedule 1 to the CAC Act exempted under the Audit (Transitional and Miscellaneous) Regulations, 18 December 1997. Yours sincerely William H Pollard Chief Executive A N N U A L R E P O R T v A N N U A L R E P O R T v i I n t ro d u c t i o n Annual Report compliance implications regarding the application of the Commonwealth Authorities and Companies Act 1997, but The Airservices Australia Annual Report 1997-98 none for Airservices’ ownership or governance. complies with the requirements of the Air Services Act 1995 and the Guidelines for the Content, Preparation and Airservices is responsible for the provision of safe and Presentation of Annual Reports by Statutory Authorities, efficient air traffic services in the Australian Flight November 1982 and is in accordance with division 2 of Information Region (FIR), which covers 11% of the Part 3 of the Commonwealth Authorities and Companies earth’s surface. Specific responsibilities include Act (CAC) 1997, except for compliance with paragraph airspace management, air traffic flow management, 1(a) of Schedule 1 to the Act, exempted under Part 4 of traffic and flight information, navigation services, the Audit (Transitional and Miscellaneous) Regulations, search and rescue alerting, aeronautical information 18 December 1997, “Application of Commonwealth and rescue and firefighting services. Authorities and Companies Act 1997”. Directorship and staff The Report of Operations contains the performance report and is structured around the corporate Airservices is governed by a Board appointed by the objectives of the Airservices Australia Corporate Plan responsible Federal Government Minister. The Board July 1997 - June 2002. It does not refer to Airservices’ members are responsible for determining Airservices’ individual operational and support divisions except to objectives, strategies and policies, and ensuring that indicate the contribution of specific divisions to the functions are performed in a proper, efficient and objectives where necessary. effective manner. During 1997-98 the business structure comprised of Powers, functions three operational divisions, four support divisions and and objects two specialist advisory units, which report to the Chief Airservices Australia (hereafter called Airservices) was Executive (see corporate structure on page 16). established on 6 July 1995 as a Government Business Approximately 4350 staff are employed Australia-wide. Enterprise under the Air Services Act 1995 w i t h The workforce is composed of stream specialists in air reporting and accountability arrangements in traffic control, rescue and firefighting, engineering and accordance with the Commonwealth Authorities and is supported by management and administrative staff. Companies Act 1997. Staff numbers for 1997-98 appear in the table on In 1997, Airservices’ status was amended to that of a page 14. Commercial Authority, which had some minor A N N U A L R E P O R T 1. C h a i rm a n’s year in rev i ew This time last year I reported that this financial year occurred prior to the formation of Airservices and would be immensely challenging, with an ambitious provisions for major organisational restructuring program of change and structural realignment, which currently taking place which, when completed, will would embark upon the Board and management’s position Airservices to meet future challenges as a shared vision for the future of Airservices Australia. highly competitive service provider. Full details of the financial position are reported in detail in the I am delighted and pleased to report that Airservices is following pages. indeed an organisation which is becoming increasingly regarded as a world leader; that continues Given the difficult economic conditions, the to improve its responsiveness to the needs of clients achievements of Airservices this financial year are and the shareholder; and is maintaining a leading impressive by any measure. edge in the provision of professional services in a business environment for the benefit of the aviation Airservices has started transitioning to the world’s first sector. fully integrated air traffic system known as The Australian Advanced Air Traffic System. When 1997Ð98 provided the most challenging and difficult completed after a phased introduction across Australia trading environment in recent times with depressed aviation activity trends resulting from major economic by late 1999, Australia will be the first country in the downturns in Asia and flow-on effects from these world to have this type of technology on such a scale, events. Despite this environment, Airservices pursued delivering the increases in safety, efficiency and planned restructuring activities, new charging effectiveness promised at the start of the project. With initiatives and technology implementation. The successful pre-commissioning of Stage 1 in Cairns in underlying business remained sound despite those June 1998, Airservices is further advanced in the external and internal pressures. Airservices’ operating provision of this new technology than nearly any profit before abnormal items and taxation for the year nation. ended 30 June 1998 was $32.7m after meeting Community Service Obligations such as the On 1 July 1998 Airservices will introduce location- development of the Long Term Operating Plan for specific charging for terminal navigation services after Sydney Airport, provision of noise inquiry functions, extensive consultation with customers and the noise and flight path monitoring systems, and transfer Australian Government. This will complete the second of aviation search and rescue functions, totalling a phase of our financial restructuring, which is designed direct cost of $6.2m. This profit compared with to be more customer focused and in keeping with $35.9m for the year ended 30 June 1997. The user-pays principles. A significant component of this operating profit was reduced by abnormal costs move was the Government’s agreement to remove the totalling $80.7m resulting in an operating loss after inequitable financial burden of the Excise Tax on abnormal items and taxation of $33.0m. The abnormal Aviation Gasoline, thereby saving General Aviation costs largely arose from a combination of events which $17m per annum. A N N U A L R E P O R T 2. A program of Business Transformation commenced commitment, which has made the many achievements and a critical analysis of each section of the businesses listed in the following pages possible. The integration was completed. We are now moving to a vital stage of of experience, skills and knowledge of all players has this process with new structures, processes and been a significant component of Airservices’ progress businesses to be established in the first half of next as a world leader in air traffic service provision.
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