2018–19 Annual Report Publication details Digital access Published by Airservices Australia Online access is available at www.airservicesaustralia.com/ © Airservices Australia 2019 publications/corporate-publications PUB 001—Airservices Australia Annual Report 2018–19 Publication contact Enquiries concerning reproduction rights ISSN 1325-2755 (hard copy/print) should be addressed to: ISSN 2207-5925 (online) Enterprise Analysis and Reporting Manager ABN 59 698 720 886 Airservices Australia GPO Box 367 This report was presented for tabling in both Canberra City ACT 2601 Houses of Parliament of the Commonwealth of Australia. Telephone (02) 6268 4374 Email: EnterpriseReporting2@ This work is copyright. Apart from any use as AirservicesAustralia.com permitted under the Copyright Act 1968, no part Web: www.airservicesaustralia.com may be reproduced by any process without prior written permission from Airservices Australia. Publication acknowledgements Graphic design—Impress Design Print publication—Instant Colour Press Contents Letter of transmittal 5 Chairman’s report 6 2018–19 Contents Chief Executive Officer’s report 8 3 Airservices year in review 10 Corporate overview 14 Our performance 20 Performance criterion – Safety 22 Performance criterion – Industry Outcomes 24 Performance criterion – Business Operations Efficiency 26 Performance criterion – Organisational Capability 28 Performance criterion – Financial Stewardship 30 Financial Statements 38 Appendices 96 Appendix A: Board memberships, meetings and committees 97 Appendix B: Ministerial expectations 104 Appendix C: Environmental management and performance 110 Appendix D: Our equity and diversity approach 118 Appendix E: Work Health and Safety 126 Appendix F: Governance and accountability 128 Appendix G: Airservices Remuneration Report 2018–19 134 Appendix H: Aircraft Noise Ombudsman Annual Report 2018–19 144 Appendix I: Compliance index 164 Acronyms 166 Index 167 Letter of transmittal The Hon Michael McCormack MP Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development 2018–19 Letter transmittal of Parliament House CANBERRA ACT 2600 5 Dear Deputy Prime Minister Chairman GPO Box 367, Canberra ACT 2601 25 Constitution Avenue, Canberra ACT 2601 Airservices Annual Report 2018–19 t 02 6268 4959 www.airservicesaustralia.com On behalf of the Board of Airservices Australia, I am pleased to submit to you theABN 59 Airservices 698 720 886 Australia Annual Report for the financial year 2018–19 as required under section 46 of the The Hon Michael McCormack MP Public Governance,Deputy Prime Performance Minister and and Accountability Act 2013 (PGPA Act). Minister for Infrastructure, Transport and Regional Development During 2018–19Parliament we Housewere accountable to the Australian Parliament and to the Australian CANBERRA ACT 2600 Government through your portfolio as the Minister for Infrastructure, Transport and Regional Development. The Board, as the accountable authority of Airservices Australia, is responsibleDear for Deputypreparing Prime Ministerand submitting this report to you. It was endorsed at our meeting on 24 SeptemberAirservices 2019. Annual Report 2018–19 The report hasOn behalf been of the prepared Board of Airservices in accordance Australia, I amwith pleased the torequirements submit to you the ofAirservices the Air Australia Services Act 1995, the PGPAAnnual Act,Report the for the Public financial Governance, year 2018–19 as requiredPerformance under section and 46 Accountabilityof the Public Governance, Rule 2014 (PGPA Rule),Performance and other and Accountabilityrelevant legislation. Act 2013 (PGPA Act). During 2018–19 we were accountable to the Australian Parliament and to the Australian Government This report throughoutlines your the portfolio achievements as the Minister for and Infrastructure, milestones Transport met and by Regional Airservices, Development. and The includes a Board, as the accountable authority of Airservices Australia, is responsible for preparing and submitting review of operationsthis report to you.and It financialwas endorsed statements at our meeting onfor 24 the September year 2019.ending 30 June 2019. The performanceThe report statement has been prepared has inbeen accordance prepared with the to requirements demonstrate of the Air our Services performance Act 1995, the over the PGPA Act, the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule), and other 2018–19 periodrelevant against legislation. the Airservices 2018–19 Corporate Plan. It reports against our key performance measures and initiatives articulated within the Plan. The appropriateness of the This report outlines the achievements and milestones met by Airservices, and includes a review of performanceoperations statement and financial was statementsreviewed for by the Airservicesyear ending 30 JuneBoard 2019. Audit and Risk Committee at its meeting on 3 September 2019. The performance statement has been prepared to demonstrate our performance over the 2018–19 period against the Airservices 2018–19 Corporate Plan. It reports against our key performance In the Board’smeasures opinion, and initiatives the annual articulated performance within the Plan. Thestatements appropriateness are of based the performance on properly statement maintained records, accuratelywas reviewed reflect by Airservices the Boardperformance Audit and Risk of Committeethe entity, at itsand meeting comply on 3 September with subsection 2019. 39(2) of the PGPA ActIn the and Board’s section opinion, 16F the annual of the performance PGPA Rule. statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act and Yours sincerelysection 16F of the PGPA Rule. John WeberYours sincerely Chairman 24 September 2019 John Weber Chairman 24 September 2019 Chairman’s report Annual Report 2018–19 This has been a remarkable year for global aviation. As the trusted partner for keeping 11 per cent of 6 the world’s skies safe, Airservices is rising to the challenge of leading Australia’s aviation industry in an era of technological advancement. In 2018–19, we saw very tangible evidence of the changes we have been anticipating for some time with the launch of a commercial drone delivery business in our nation’s capital, Canberra, and the announcement of a trial of the world’s first aerial taxi service in Melbourne from 2020. Meanwhile, air traffic and passenger movements of traditional aviation services continued to increase over the previous Our program of work to integrate new reporting period. and emerging airspace users with existing participants is well underway. We are Amidst such significant change, the Airservices striving to create a safe and efficient aviation mandate remains constant. We are charged ecosystem for all airspace users, which we with ensuring the safe, regular and efficient use believe will underpin the economic and social of airspace for all users through the provision prosperity of our nation. of services that are valued by the industry. This requires us to deliver our services to a We do this while maintaining a focus on standard of excellence while also investing to internal efficiency and commerciality. deliver new and enhanced service offerings Since transforming our operations in 2016 we to anticipate and keep pace with change. have been able to achieve annual cost savings year‑on‑year, culminating in our announcement OneSKY, the world’s first harmonised civil on 1 July 2019 of a 2 per cent reduction in and military air traffic management system, airways service charges for our customers. remains the centrepiece of this investment We are also returning funds to benefit the program. In partnership with Defence, wider Australian community, in the form of OneSKY is building our capacity to manage increasing our annual dividend payment from future air traffic growth, meet national security 30 to 60 percent of net profit after tax, to our imperatives and integrate new aviation shareholder, the Australian Government. technologies. The program positions Australia as a world‑leader in the delivery of innovative aviation technology. Meanwhile, we continue to deliver the $1.2 billion capital investment program that will facilitate the safe and efficient growth 2018–19 report Chairman’s of Australia’s aviation industry. “ Amidst such significant 7 Finally, we recognise the important role we change, Airservices have to play in minimising the impact of aircraft operations on the environment and community. mandate remains Each and every one of Australia’s airports constant. We are charged has a critical role to play in connecting the local community with global markets, creating with ensuring the safe, local employment and enhancing the overall prosperity of the surrounding region. We remain regular and efficient use focused on helping to enable these benefits of airspace for all users while also delivering positive environmental outcomes for all stakeholders. through the provision The 2018–19 Annual Report demonstrates of services that are Airservices is well‑positioned to deliver safe and valued by the industry.” efficient services today, while delivering the full potential of a very different, high‑tech tomorrow for Australia’s aviation industry. JOHN WEBER Chairman Chief Executive Officer’s report Annual Report 2018–19 At Airservices, we are proud of our long‑standing record of keeping Australian aviation safe, 8 and 2018–19 was no exception. Over the course