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ANNUAL

PERFORMANCE PLAN 2017/18

1CAA ANNUAL PERFORMANCE PLAN 2017/18

Contents

1. Abbreviations 2

General Information 3

2. Foreword by Minister 4

1. Foreword by the Chairperson 5

4. DCA Operational Overview 7

5. OfficialSign-off 12

6. LegislativeandOtherMandates 13

6.1 TheAct 13

6.2 ICAOCriticalElements 13

7. StrategyDevelopmentProcess 14

8. SituationalAnalysis 15

8.1 SWOTAnalysis 16

8.2 PESTLEAnalysis 17

Organisational Overview 19

9.1 SouthAfricanAviationLandscape 20

9.2 OrganisationalStructure 21

9.3 EmployeeDemographics 22

9.4 Culture,EthicsandValues 23

10. Risk 24

Strategy 26

11.1 CoreIdeology 27

11.2 SACAARegulatoryPrinciples 28

11.3 StrategyAlignment 30

12. StrategyDeliverableTables 31

MTEF Expenditure 42

Annexure A 45

2 CAA ANNUAL PERFORMANCE PLAN 2017/18

ACSA AirportsCompanySouthAfrica

AEP AviationEnvironmentalProtection

AIID AccidentandIncidentInvestigationDivision

AI AviationInfrastructure

APP AnnualPerformancePlan

ASO AviationSafetyOperations

ATNS AirTraffic&NavigationServices

AvMed AviationMedicine

AvSec AviationSecurity

B-BBEE Broad-BasedBlackEconomicEmpowerment

CAP CorrectiveActionPlan

CA Act CivilAviationAct

C-FARP Cross-FunctionalAccidentReductionPlan

CNS CommunicationNavigationSurveillance

CRM CustomerRelationshipManagement

DCA DirectorofCivilAviation

DOD DepartmentofDefence

DSSL DepartmentofSafety,SecurityandLiaison

DoT DepartmentofTransport

EBS EnterpriseBusinessSystem

ERDMS ElectronicRecordsandDocumentsManagementSystem

EXCO ExecutiveManagementCommittee

FN ForeignNationals

GDP GrossDomesticProduct

HR HumanResources

HRC HumanResourceCommittee

HDI HistoricallyDisadvantagedIndividuals

IASA InternationalAviationSafetyAssessment

ICAO InternationalCivilAviationOrganization

ICCS ICAOCo-ordinationandComplianceSection

ICT InformationandCommunicationTechnology

IT InformationTechnology

MP MemberofParliament

MSP MasterSurveillancePlan

MTEF MediumTermExpenditureFramework

NASP NationalAviationSecurityProgramme

NATS NationalAviationTransformationStrategy

N/A NotApplicable

NDP NationalDevelopmentPlan

NGP NationalGrowthPath

NTCA Non-TypeCertifiedAircraft

OSR OrganisationalStructureReview

PESTLE Political,Economic,Social,Technological,Legal&Environmental

PFMA PublicFinanceManagementAct

PSC PassengerSafetyCharge

RPAS RemotelyPilotedAircraftSystems

SACAA SouthAfricanCivilAviationAuthority

UN UnitedNations

USAP UniversalSecurityAuditProgramme

USOAP UniversalSafetyOversightAuditProgramme

SONA StateoftheNationAddress

SWOT Strengths,Weaknesses,Opportunities,Threats

1. Abbreviations

GENERAL INFORMATION


2. Foreword by Minister

AviationisasignificantcontributortotheSouthAfricanGrossDomesticProduct(GDP)withatotalof38.6millionpassengerstransportedthroughACSAairportsinSouthAfricain2015/16.Thissectorisofvitalimportance,since10.6million(2015/16)internationaltravellersprovideaseriousboostforthetourismindustry.

Inadministeringoversight to theaviation industry,national imperatives fromvariousgovernmentplanssuchas theNationalDevelopmentPlan(NDP), theNewGrowthPath,the9PointPlan,theDoTOutcomesandgovernmentprioritiesinformtheSACAAcoreideologyandorganisationalgoals.InotethattherevisedstrategyisalignedtotheabovenationalimperativesandcontinuedDepartmentofTransport(DoT)engagements.

InlinewiththePresident’sStateoftheNationAddressof09February2017,theSACAAisremindedthatasagovernmententity,theRegulatorhasadevelopmentalresponsibilitytopursueandthisdoesnotnecessarilyinvolveaprofitandlossagenda.TheSACAAisthereforeurgedtoensurethatitsprogrammesaregearedtowardsachievingradicaleconomictransformationinsupportofgovernment’spriorities.Thiscanbeachievedbyfocusingattentiononempoweringyouth,womenandpeoplelivingwithdisabilitiesinamorefocuseddrive.ItbecomesnecessarythereforetobuildcapacityinordertomeettheobjectivesofadevelopmentalState.ThePresidenturgedallgovernmententitiestoensurethatasdeliveryarmsoftheState;theypresideoverviableandefficiententities.

Agreaternationalchallenge lies in thependingInternationalCivilAviationOrganization(ICAO)auditscheduledforthefirstsemesterof2017.Allresourcesmustbeappliedtoachieveacleanauditinthiscoremandatearea,andtothisendmydoor remainsopentoensureSouthAfrica’soptimumperformance.TheMinistryalsoviewsthependingauditasanopportunityfortheSACAA,onbehalfoftheSouthAfrica,toachieveitsvision-tobe“Rankedamongthetop10civilaviationauthoritiesgloballyby2020”.Forthisratingtomaterialisetheorganisation’sdirectresponsibilitiesandthecountry’scompliancemustbeaudited,withafavourableoutcome.

Thisrevisedstrategyushersathirdyearofdeliveryontheoriginal2015/16to2019/20strategywhosedeliverableswerefullymet.Itisimportanttomaintainhighperformancestandards in termsofstrategyperformanceasconsistentlydemonstratedinthepastthreeyears.

Italsogivesmegreatpleasuretonotethefollowingmilestonesachievedinthesecondyearofstrategicdelivery,andIwould like tocongratulate theSACAABoardandManagementonthefollowing:

• AvailingtheDirectorofCivilAviationto serve as the Chair of the ICAO SecurityPanelforthesecondtermin2016;

• Forfouryearsinarowacleanauditas pronounced by the Auditor-General;

• Meeting all the performanceobjectives for the2015/16AnnualPerformancePlan;and

• MaintainingtheAuditor-Generalfindingsatfour,amongstothers.

Inconclusion,ItakethisopportunitytoexpressmygratitudetotheBoardandManagementforasterlingperformanceonthesecondyearofstrategydelivery,andurgethatadditionaleffortbeapplied.

As theExecutiveAuthority, Iherewithendorse theSACAA2017/18AnnualPerformancePlan(APP)andcommittosupportingitandensuringitsimplementation.

Minister ED Peters, MPMinister of TransportExecutiveAuthoritySACAA10March2017


3. Foreword by the Chairperson

ItisapleasureonceagaintopresentthethirdAnnualPerformancePlan2017/18(APP)oftheoriginal2015/16to2019/20strategythatmapsthecivilaviationregulatorytrajectoryasmandatedbytheCivilAviationAct,2009(ActNo.13of2009),andincompliancewiththeChicagoConventiononcivilaviation,whilefactoringthelocalcontext.

Thismandatecanbesummedupasfollows:

TheAuthoritywasestablishedto-

• Controlandregulatecivilaviationsafetyandsecurity• OverseetheimplementationandcompliancewiththeNationalAviation

SecurityProgramme(NASP)• Overseethefunctioninganddevelopmentofthecivilaviationindustry• Promotecivilaviationsafetyandsecurity• DevelopanyregulationsthatarerequiredintermsofthisAct• MonitorandensurecompliancewiththisActandtheChicagoConvention

IncompliancewiththeNationalTreasuryguidelinesonthedevelopmentofStrategiesandAnnualPerformancePlansforSchedule3AentitiestheorganisationcommencedwithasituationalanalysiscomprisingSWOT,PESTLEandstakeholderanalysestoensurerelevance.Theendresultwasaslightadjustmentoforganisationalgoals,andasignificantadjustmentofobjectivesandtargets.Thesechangesaremeanttoescalatethepaceofservicedelivery,andthelatestgoalsarelistedbelow:

1. Regulatetheaviationindustryeffectivelyandefficiently2. Increaseaccessibilityofregulatoryservices3. Securefinancialsustainability4. Acceleratetransformation5. Driveorganisationalefficiencyandeffectiveness6. Improvecommunicationandstakeholdermanagement7. Significantlyimproveclientserviceexperience

WithregardstoregulatingsafetyandsecurityinthecivilaviationindustrythroughtheCivilAviationActandICAOcriticalelements,theInternationalCivilAviationOrganizationwillbeauditingSouthAfricaduringthefirstquarterof2017/18.

Withthis inmind,preparationstowardsthisexercisearereceivinghighpriority.AfavourableoutcomewillimprovetheState’slevelofEffectiveImplementation(EI)score,resultingintheAuthoritybeingastepclosertothevisionwhilepavingawayforlocalandregionalaviationsafetyandsecuritydevelopment.To this end a state of readiness independent peer assessmentwasconductedbyICAO’sEasternandSouthernAfricanofficefromNairobithroughaRegionalOversight Safety Team(ROST)mission.AROSTmission determines aState’srateofcompliancewithICAO’sStandardsandRecommendedPractices(SARPs)andisconducted

It is SACAA’s firm belief that for the strategy to be effectively implemented, a structure

consisting of stakeholders with strong leadership needs to be in place.


byqualifiedICAOauditors.AreportwouldthereforegiveaStateagoodideaastohowtheywouldfareinarealaudit.ItwouldpointoutareasofdeficiencythatneedtobeaddressedbytheStatepriortothemainaudit.Finally,acomprehensivereviewofobjectiveswithinthisgoalispoisedtowardsseparatingtheauthorityheadandshouldersabovemany.

ThetransformationgoalhasbeenadjustedtofocusonthoseaspectswithinthejurisdictionandinfluenceoftheAuthority.ThedraftNationalAviationTransformationStrategywassubmittedtotheDoT,andSACAAwillfurtherco-participatewiththeshareholderandotherentitiesinpursuitofsectortransformation.ItisSACAA’sfirmbeliefthatforthestrategytobeeffectivelyimplemented,astructureconsistingofstakeholderswithstrongleadershipneedstobeinplace.ItisworthmentioningthattheSACAA’stransformationprogrammeisadvancinginpursuitofredressingtheimbalancesofthepastwherethissectorremainsuntransformed.EffortstointensifythisprogrammeshallcontinuewithanincreaseintheintakeofbursarystudentsfundedbySACAA.

Thefirsttwoyearsfocusedondeliverablesthatsoughttoimprovethelegislativeenvironment,withparticularemphasisonproposinglegislativeamendmentstotheCivilAviationAct,ActNo.13of2009,totheDepartmentofTransport.Suchinitiativeshavebeencompleted,hencetheabsenceofthisgoalintherevisedstrategy.

Fourgoalsremainedthesame;howeverafinalgoalthatseekstoincreaseaccesstoregulatoryserviceshasbeenintroduced.ThiswilladdressSACAA’snationalfootprint,guidedbythenumberofcustomersandstakeholders,while takingadvantageofthee-commercebenefits.

TheDepartmentofTransportestablishedtheSACAAtoperformcivilaviationsafetyandsecurityoversightfunctionsonbehalfoftheState,andinthisspiritourvisionremainstobe“Ranked among the top 10 civil aviation authorities globally by 2020” andinpursuanceofregulatoryexcellenceandgoodpractice,theSACAA

hasembarkedonaprocessofdevelopingregulatoryprinciplesaspartofitscoreideology.Thevision,mission,valuesandbrandpromiseremainsunchanged.

Iconcludebycongratulatingthemanagementandstaffonanothersuperbyeardemonstratedbymanyaccoladesreceived,includingobtainingtheAuditor-General’scleanauditaward for the fourthyear insuccessionandtheBestPerformingInstitutionawardattheNationalTransportAwardsforthethirdyearinarow.

Thesuperbgovernanceenvironment isonlypossible throughthesignificantcontributionofallstakeholders,withspecialappreciationextendedforthesupportandleadershipoftheHonourableMinister,MsDipuoPetersandtheDeputyMinister,MsSindisiweChikunga.ThecollaborationandassistancefromtheDepartmentofTransportCivilAviationbranchandthewholetransportsectorisinvaluable.TheguidanceandfeedbackconstantlyprovidedbythePortfolioCommitteeonTransportalsoaddsvaluetotheworkoftheAuthority.

Inparticular, Iwould like to recogniseandappreciate thecooperationandcontributionofmyfellowBoardmembers forgivingstrategicdirectionto theAuthority.ManagementhascontinuouslyshownresponsivenessandcommitmentindeliveringonthestrategyandIurgethemtocontinueonthispath.

Mr Smunda MokoenaChairperson:SACAABoard8March2017


4. DCA Operational Overview

Ascanoftheorganisation’sperformanceduringtheperiodofthefirsttwoAnnualPerformancePlans(APP)emanatingfromtheoriginal2015/16–2019/20Strategyindicatesthattheorganisationhasconsistentlyraisedthebar intermsofthedeliverablesaccomplished.ThecurrentrevisedstrategyandAPPdemonstratestheendlesspursuittowardsexcellencebytheSACAA,andIhavemuchappreciationfortheenablingenvironmentaffordedbytheBoardandtheMinisterofTransport.

WhiletheSACAAisaSchedule3Aorganisation,integratedthinking,atleastintheapproachtowardsdoingbusiness, isbeginningto influencehowbusiness

isdone,albeitstillatanembryoniclevel.Aspartofcontinuousimprovement,particularlyingovernance,SACAAhasrecognisedthebenefitofanintegratedthinkingapproach.Althoughitisnotarequirementatthisstage,SACAAhas takenadecision to implement thisapproachaspartof itsstrategicthinkingprocessandreporting.TheIntegratedThinkingapproach led theorganisationtoclassify itsgoalsandactivitieswithinthefollowingsixintegratedcapitals:

SACAA’s organisational goals – alignment to Integrated Framework

Intergrated Framework SACAA organisational goals

Intellectualcapital Safetyandsecurity

Manufacturedcapital Accesstoregulatoryservices

Financialcapital Organisationalsustainability

Socialandrelationshipcapital Socialandrelationship

Humancapital Humancapital

Naturalcapital Aviationenvironmentalprotection

Thesevenstrategicgoalsarethereforecategorisedwithintheabovebroadclassificationstailor-madeaccordingtoSACAA’sneeds,withgame-changingoperationsdiscussedinthesubsequentparagraphsandthesymmetrybetweenthevariousstrategypillarsanddeliverablesdisplayed:


OrganisationalGoal7:Acceleratetransformation

OrganisationalGoal1:Regulateaviationindustryeffectivelyandefficiently

OrganisationalGoal2:Increaseaccesstoregulatoryservices

OrganisationalGoal3:Securefinancialsustainability

OrganisationalGoal5:Significantlyimproveclientserviceexperience

OrganisationalGoal6:Driveorganisationalefficiencyandeffectiveness

OrganisationalGoal4:Improvecommunicationandstakeholdermanagement

SACAA Strategy2017/18–2021/22

Outcome:Smartapproachinmaintaininghighperformance

levelsinatransformedorganisation

Outcome:Effective,efficientandtechnologicallysoundoversightsystems

Outcome:Nationalfootprintthatbestservicesstakeholdersand

customers

Outcome:Sustainableorganisation

Outcome:AEPRegulationsforinternationalaircarrierssubmittedtothe

DepartmentofTransport(DoT)

Outcome:Improvedcustomerandstakeholderengagement

Objective:EnsurecompliancewithTransportSectorCodes

Objective:Achieveastep-changeinregulatingAviation

SafetyandSecurity

Objective:Establishanoptimumdistributionofofficepresence

nationwide

Objective:Diversifyandexpandsourcesofrevenue

Objective:Intensifyenvironmentaloversightthroughthe

MasterSurveillancePlan(MSP)

Objective:ReviseandimplementCFARPandalignwith

internationalbestpractice

Objective:Establishaplatformtomanagesecurityrisk

Objective:Establishaplatformtomanagesafetyrisk

Objective:Ensureeffectiveindustryoversight

Objective:EnsurecompliancewithTransportSectorCodes

Objective:Driveaperformanceculture

Objective:OptimiseICTtechnicalsystem

SafetyandSecurity(IntellectualCapital)

HumanCapital

SocialandRelationship(SocialandRelationship

Capital)

AccesstoRegulatoryServices

(ManufacturedCapital)

OrganisationalSustainability

(FinancialCapital)

NaturalCapital(AviationEnvironmentalProtection)


Safety and Security AviationSafetyandSecurityistheorganisation’scoreresponsibility,andtothisendtherevisedstrategyhasimplementedgame-changinginterventionsintroducedunderthefollowingheadings:

• Internationalobligations• Improvingthequalityofthelicencee• Managingsafetyrisk• ReducingtheAccidentRate(C-FARP)• IntegratedSystems(EBS).

AsamemberofICAOandsignatorytotheChicagoConvention,SouthAfricaisobligatedtoregulateaviationsafetyandsecurity in linewithsetcriteria foundinvariousAnnexes issuedbyICAO.Fromasafetyperspective,SouthAfricahasbeenconsistentlyseekingtoimproveitscompliancelevelsassetoutintheICAOComplianceChecklists(CCs)andProtocolQuestions(PQs).PursuanttoitsContinuousMonitoringApproach(CMA),ICAOwillbeconductingasafetyauditfromthe8th to the 18thofMayin2017.Tothisend,preparationsareunderwaytoensureafavourableoutcomefromtheanticipatedUniversalSafetyOversightAuditProgramme(USOAP).EveryeffortisbeingmadetoensurethatSouthAfricaperformsexcellently intheauditandthatnoSignificantSafetyConcern(SSC)orMandatoryInformationRequest(MIR) isattracted.SACAAmaintainsthattocontinuouslyimprovecompliancelevels,internalreviewsthrough“internalsafetycomplianceauditors”totesttheveracityoftheCorrectiveActionPlan(CAP)progressisimportant,ifitistoachieveitstarget.Whilethereisnoauditdatesetforthesecurity-relatedUniversalSecurityAuditProgramme(USAP),aUSAPreadinessplanwillbeimplementedin2017/18andimplementedgoingforward.

ImprovingthecompetenceandqualityoftheLicenceholder isanotherareaoffocusfortherevisedStrategyandAPP,andshouldhavepositivespin-offsonsafetystatistics.Firstly,theorganisationwillseektoextendexaminationstotherestoftheAnnex1licences;thisisintendedtoimprovequalityassuranceintheinterestofaviationsafety.Secondly,theorganisationissettodevelopastrategyin2017/18toevaluateandintroducepracticalcompetencyassessmentsoftargetedpersonnelwithinthelicensingvaluechain.Anexampleofintendedresults,amongstmany,couldbetheprocurementofasimulatorbytheregulatortocheck instrumentflightproceduresandthepracticalityofairspaceconstructionandboundaries.Thissimulatorcouldbeloadedwithactualweatherconditionsprevalentduringan

aircraftaccidentandtheflightcouldberecreatedtogainabetterunderstandingoftheHumanFactorconditionsthatthepilotfacedatthetime.HumanfactorsarelistedasthesinglebiggestcausalfactorforaccidentsinSA.Suchatoolcouldalsobeusedinenforcementcasestore-assesspilots,incaseswherecertainPart141schoolsdeliveraquestionableproductandtheneedmayarisetosamplesomeofthestudentsfromsuchaschool.

The2015/16to2019/20revisedstrategyseekstoimproveindustrysafetyandsecurityriskmanagementbyimprovingthequalityandstructureofinputdata,andwherepossibleconsolidatingitinsteadofusingdisparatesystems.Partoftheequationwouldbetointroducesmartreportingmethodologiesthataremeanttopredictandpreventoccurrences,pivotingfromimproveddataquality.Allthisispossibleifa“dataminingportal”isusedthatdrawsfromvariousreportingtoolsinexistence,includingtheACSAPalladiumsystemforhazardreportingandtheATNSMORdatabaseforairspaceviolations,includinginfringements.TheEBSsystemisanopportunitytocreatesuchatoolandcanevenaffordaccessbyotherstateentitiessuchasACSAandATNSinordertoexpandtheirSMSsystemstobemorecomprehensive.

Reducingaircraftaccidentshasalwaysbeenanorganisational focus;howeverthishasheightenedsincethedevelopmentofthefirstCross-FunctionalAccidentReductionPlan(CFARP)threeyearsago.Arevisionofthesamestrategyin2015/16ledtothedevelopmentofathree-yearaccidentreductioncoursethatisbasedonactualaccidentdata.Amajoralignment,goingintothefuture,willbethereportingofaccidentsaccordingtoindustryactivity,sinceanumericalincreaseordecreaseismute,untilitisreportedagainstthevolumeoflocalairtraffic.

Effectiveoversightmustbesupportedbysmartsystems;tothisendanumberofElectronicBusinessSystem(EBS)moduleshavebeenrolledout,anditisanticipatedthattheprojectwillbecompleted in2018/19.Fromthispoint integrationwithexternalsystemswillbepossible,withreal-timedataflowingbetweenSACAAanditsstakeholders,usheringinthepossibilityofviewingthesafetyandsecuritystateoftheindustryattheclickofabutton,ofcoursewithintheambitofmajorroleplayers.Acentraliseddatabaseisamustinorderforchallengesinoneareatobepickedupfromanotheroversightarea,enablingrisk-basedauditsthatarepreventativeandnotreactionary.

There isnodoubtthattherehasbeenacontinuous improvementwithintheoversightinfrastructure,andthiswascomplimentedbytheimplementationoftheorganisationalredesigninthepreviousyear.Surveillanceauditswillbeconducted


in linewiththeapprovedSafetyandSecurityOversightPolicyandthe impactwillbevisible intheschedulingoftheMasterSurveillancePlan.ThisalignmentdemonstratesevenmorethecommitmentoftheAuthoritytocontinuouslyimproveitssafetyandsecuritysystemandICAOcompliancestatus.

Access to Regulatory Services TheSACAA’sregulatoryenvironmentdictatesaconstantreviewofitsaccessibilitytoendusersspreadaroundthecountry,havinghadCapeTownasanextensionoftheMidrandheadofficeformorethanfiveyearsnow.ThependingleaseexpiryhasnecessitatedtheheadofficetoconsideritsstrategicpositioninginimprovingaccesstotheGautengresidentsandthosethatuseair travel inpursuitof itsservices.Afurtherreviewofphysicalofficeexpansionwithinthenationalfootprintisnecessary,andwillbedeterminedbyadecentralisationmodeltobefinalisedin2017/18.ThemodelwillconsiderservicedemandsalongwithamatrixforimprovingITinfrastructureandservicestofacilitateE-Commerce,reducingtheneedtotravelfromremoteplacesforsimpletransactions.

ThefootprintoftheAuthoritynationallytakesintoaccountthefactthatthemainaimofthisprojectistoincreaseaccessibilityoftheSACAAservicestothestakeholdersasopposedtosavingcostsandthisisinlinewiththeprinciplesoftheNationalDevelopmentPlanandtheDoToutcomes.

Organisational SustainabilityMuchofthecriticalworkforachievingorganisationalsustainabilitywillbeachievedduring2016/17throughtheestablishmentofafinancialmodel that issettointroducenewincomestreamsbyimplementingthe‘userpays’principleforSACAAservices.Highontheagendawillbereviewingtariffsleviedtothesecurityindustryingeneral,giventheriseofoversightdemandsinthisarea,particularlyincargosecurity.Chiefamongthesedeliverablesisreviewingthefundingmodelprinciples,withspecific interest in levelsofPassengerSafetyCharge(PSC)subsidisation.Effectiverevenuecollection,possiblyatpassengertransactionpoint,wouldbeideal,andthismayprovideopportunitiesforthejointcollectionoflevieswithotherindustrypartners.Intenseconsultationswithvariousstakeholderswill follow in2017/18goingforward,andwillhavetonavigatethroughvariouschallengessuchasthestateoftheeconomyandahighlyprescriptiveenvironmentwithregardtotheaccumulationanduseofsurplusfunds.

AspartofitsMediumTermExpenditureFrameworkbudgetandEstimateofNationalExpenditure,theSACAAhasimplementedanumberofcostcontainmentmeasuresinlinewithNationalTreasurycostcontainmentobjectives.Acostcontainmentplanwillalsobedevelopedforthe2017/18financialyear,whichwillspecificallyidentifysomeofthecostcontainmentmeasurestobetakentoimprovecost-efficiencies,theeffectivenessofsupplychainmanagementprocessesandprocedures,theeliminationofwastefulexpenditureaswellastoensurethatvalueformoneyisachievedinthedeliveryofprogrammesandservices.Thesewillbeincludedintheoperationalplansoftheorganisation.

Social and RelationshipImproved stakeholder engagementand client services still remainamajororganisationalpriority,stemmingfromvariousindustrystakeholderengagements.Fromacustomerperspective,processeswerereviewedduring2015/16andculminatedinthefullimplementationoftheOrganisationalDesignReviewproject.Unlesstheseeffortsarecoupledwithacustomer-centricattitudebyemployees,theyremaininvain.Thisisthereasonwhyachangemanagementprogrammedesignedto inculcateacustomer-centricculture, isplannedfor2017/18goingforward.Thiseffortisdesignedtocontinuouslytraintheemployeeonhowtodealwithcustomers,complimentedbyimprovedsystemsandprocesses.Thiswillhavetobecoupledwithanintegratedapproachindoingbusinessandreporting,inordertomaximisestakeholdervalue.

Fromastakeholdermanagementperspective,SACAAdevelopedarevisedstrategyinthe2016/17financialyearthatwillbeimplementedduringthenextthreeyears.Thestrategywill,amongstothers,befocusedanddedicatedtoourmostcriticalandvulnerablestakeholders.Demystifyingaviationthroughincreasedawarenessfromaservicesandbrandingpointofview,aresomeoutcomesthatareforeseen.TheRegulatorhasmadeprogress in increasing itscapacitytoensureamoreconcertedefforttowardsimprovingstakeholderrelationswithallitsstakeholdersintheshortterm.

Human CapitalTheBoardhasapprovedathree-yearHumanResourcesstrategywhichhasbeendevelopedtoensurethealignmentofHumanResourceinitiativeswiththeorganisationalobjectivesandthelong-termvisionandmandateoftheorganisation.


TheHumanResourcesstrategywillensurethedevelopmentandimplementationofpolicies,processesandsystemsthatarenotonlyimportanttotheachievementofthecompanyvision,butalsotooptimisetheabilitytorecruit,develop,retainandrewardtalentcommensuratewiththeSACAA’scomplexenvironment.

TheSACAAdependsonitsemployeestoexecuteitsmandate,andtodeliveronitsobjectives.TheHumanResourcesstrategyseekstocreateanenvironmentwhereinitsemployeeswillhaveanexcitingandfulfillingexperience,toenabletheachievementof thisobjective.TheSACAA’sHumanResourcesstrategy isunderpinnedbythefollowingkeystrategicthemes:

• EstablishSACAA’sorganisationalculture• Formaliseleadershipdevelopmentagenda• Enhanceskillscapacity• Improveemployeecommunicationandengagement• Enhancetalentmanagement• Implementcompetitivedifferentiatedrewardphilosophy• ImproveHRservicedelivery• Transformation• Improveemployeehealthandwellness.

Natural CapitalTheInternationalCivilAviationOrganizations(ICAO)hassetanaspirationalgoalofkeepingnetcarbonemissionsfrominternationalaviationatthesamelevelfrom2020(CarbonNeutralGrowth2020orCNG2020).TheStatethroughtheDepartmentofTransportsupportsICAO’sworkandhasestablishedastrategicoutcomeforitssectorof‘increasingthecontributionoftransporttoenvironmentalprotection’.ICAOalsomandatesitsmemberStatestosubmitStateActionPlans(SAPs),aplanningandreportingtoolthatcommunicatesinformationtoICAOonthemeasuresthatStatesareusingtoaddresscarbondioxide(CO2)emissionsfrominternationalaviation.SouthAfricarecentlysubmitteditsfirstStateActionPlan(SAP)toICAOandisexpectedtoreviewitevery3years.Insupportofthe

DoTenvironmentaloutcome,theSACAAwillensurethatregulatorymeasuresaretakentoaddressCO2emissions.TheAuthority isreviewingitsregulatoryenvironmentinthisregardandwillensurethatsufficientoversightisconductedonallrelevantsectorsoftheindustry.Continuingfromthe2016/17financialyeartarget,theAuthoritywillcontinuetoconductAviationEnvironmentalProtectionoversightthroughachievingthetargetssetforthe2017/18financialyearintheMasterSurveillancePlan.

ConclusionMayI take thisopportunity toextendmyheart-feltgratitudeto theSACAAExecutiveandemployeesfortheprioryear’sperformance,andIimploreallofustocontinueontheprogressmadeinordertoattainthe2020vision,tobe“Rankedamongstthetop10civilaviationauthoritiesgloballyby2020”.

Theconsistentsupportandresponsive leadershipprovidedbytheBoard, theMinistry,inparticulartheMinisterofTransport,MsDipuoPetersMPandtheDeputyMinister,MsSindisiweChikungaMP,duringthepasttwoAPPdeliverableperiodsisevidentintheexcellentperformanceoftheAuthority.TheDepartmentofTransport’sCivilAviationbranchisesteemedfortheirconsistentcooperationandsupportintheexecutionofourmandate.ForthistheSACAAfamilyisimmenselygrateful.

P.P.

Ms Poppy KhozaDirectorofCivilAviation8March2017


5. Official Sign-off

ItisherebycertifiedthatthisAnnualPerformancePlan:

• WasdevelopedbytheExecutiveandstaffoftheSouthAfricanCivilAviationAuthorityundertheguidanceoftheBoardandinconsultationwiththeDepartmentof Transport.

• Takesintoaccountalltherelevantpolicies,legislationandothermandatesforwhichSACAAisresponsible.• Accuratelyreflectsthestrategicoutcome-orientedgoalsandobjectiveswhichtheSACAAwillendeavourtoachieveovertheperiod2015/16to2019/20.• Has been approved by the Board.

Ms Phindiwe Gwebu Mr Asruf SeedatExecutive:CorporateServices Executive:Finance8March2017 8March2017

P.P.

Ms Poppy Khoza Mr Smunda Mokoena DirectorofCivilAviation ChairpersonoftheBoard8March2017 8March2017

Ms Dipuo Peters, MPExecutiveAuthority10March2017


6. Legislative and Other Mandates

6.1 The ActTheSouthAfricanCivilAviationAuthority(SACAA)isanagencyoftheDepartmentofTransport(DoT),establishedon01October1998,followingtheenactmentofthenowrepealedSouthAfricanCivilAviationAuthorityAct,1998(ActNo.40of1998).ThisActwasreplacedbytheCivilAviationAct,2009(ActNo.13of2009),whichcameintoeffecton31March2010.

AsoutlinedinthePublicFinanceManagementAct(PFMA),1999(ActNo.1of1999)(asamendedbyActNo.29of1999),theSACAAisaSchedule3Apublicentity.ThePFMAandtheCivilAviationActdesignatetheSACAABoardastheorganisation’sAccountingAuthority,whilsttheMinisterofTransportistheExecutiveAuthority.

TheCivilAviationActprovidesfortheestablishmentofastand-aloneauthority,mandatedwithcontrolling,promoting,regulating,supporting,developing,enforcingandcontinuouslyimprovinglevelsofsafetyandsecuritythroughoutthecivilaviationindustry.TheaboveisachievedbycomplyingwiththeStandardsandRecommendedPractices(SARPs)oftheInternationalCivilAviationOrganization(ICAO),whilstconsideringthelocalcontext.

6.2 ICAO Critical ElementsICAOContractingStates, intheirefforttoestablishandimplementaneffectivesafetyandsecurityoversightsystem,needtoconsiderthecriticalelementsforsafetyandsecurityoversight(CE).Criticalelementsareessentiallythesafetyandsecuritydefencetoolsofasafetyandsecurityoversightsystemandarerequiredfortheeffectiveimplementationofsafetyandsecurityrelatedpolicyandassociatedprocedures.StatesareexpectedtoimplementthesafetyandsecurityoversightcriticalelementsinawaythatassumesthesharedresponsibilityoftheStateandtheaviationcommunity.

Criticalelementsofasafetyandsecurityoversightsystemencompassthewholespectrumofcivilaviationactivities.TheeffectiveimplementationoftheCEsisanindicationofaState’scapabilityregardingsafetyandsecurityoversight.

Thefollowingdiagramdemonstratestheregulatoryareasdepictedunderthedifferentcriticalelements.CriticalElements(CE)1to5pertaintotheestablishmentofthesafetyandsecuritysystems,whileCE6to8addresstheeffectiveimplementationofsuchsystemsbytheindustry.

EightCriticalSecurityElements EightCriticalSafetyElements

AviationSecurityLegislation

Appropriate Authority

Programmes andRegulations

PersonnelQualifications

and Training

Certificationand Approval Obligations

ResolutionofSecurityConcerns

QualityControlObligations

ResolutionofSafetyConcerns

Certificationand Approval Obligations

TechnicalPersonnel

QualificationsandTraining

SpecificOperatingRegulations

PrimaryAviation Legislation StateCivil

AviationSystem andSafetyOversight

Functions

TechnicalGuidance,

Tools and the ProvisionofSafetyCriticalInformation

SurveillanceObligations

ESTABLISH

IMPLEMENT

CE 1CE 3

CE 5

CE 7

CE 8

CE 6

CE

4

CE 2

Guidance, Tools and

Info

Diagram 3: ICAO Safety and Security Critical Elements


7. Strategy Development Process

TheSACAA2017/18to2021/22RevisedStrategytookintoaccounthistoricaldatafromtheoriginalstrategyalongwiththeNationalDevelopmentPlan(NDP)andthe9PointPlaninconsideringitsrevisedoutcomes.TheendresultwasthegoaladjustmentarticulatedintheChairman’soverview,andup-scaledinterventions

highlightedintheDCAOperationalOverview.ItcanbeconcludedthattheSACAAStrategyprocessisinformedbyandadherestogovernancerequirementsstipulatedinthePublicFinanceandManagementAct(PFMA).

SituationalanalysisBoardandManagement

strategysessionIndustryandstaffengagement

Strategydevelopment

DoTOutcomes• NationalGrowthPath

(NGP)• InputsSONAspeech

outcomes

NationalDevelopmentPlan(NDP)inputs

Webbasedsurvey(IndustryandStaff)

FocusgroupDiscussion(IndustryandStaff) PESTLEanalysis

SACAAStrategyDevelopmentProcess

Diagram 4 – Strategy Development Process


8. Situational Analysis

The2017/18to2021/22strategicreviewincludedaSWOTandPESTLEAnalysisdemonstratedbythetablesbelow.Theoutcomeofthisexerciseensuredthatthe2017/18activitiesaddressthefactorsunearthedthroughthisprocesse.g.

thecontinued implementationoftherevenuemodeltoreducerelianceonthePassengerSafetyChargeandincreasingaccessibilityoftheSACAAservicetoallstakeholders,amongstothers.

SACAA 2017/18 to 2021/22 SWOT Analysis TableOrganisationalGoals

SWOTElements

Strengths Weaknesses Opportunities Threats1 Securefinancial

sustainabilityInternationalbenchmarkedmodelunderdevelopment

Over-relianceonthePassengerSafetyCharge

Includediversifiedrevenuestreams Legislativerestrictiononbudgetingforsurpluswithinvolatileenvironment

Strongfinancialposition Noproperlegalframeworkforcollectingchargedrevenue

Couldfactorcargotariffcharge SACAAmaydemiseifnotsustainable

In-depthhistoricaldatatoinformanewmodel

Financialmodelnotoptimisedtocontinuousoversight(CE-7)

Considerchargingforcurrentservicesrendered for free

Financialmodelhighlysusceptibletoendemics,terrorandnaturaldisastersthataffectpassengertravel

2 IncreaseaccesstoSACAAservices

Willingnessofstafftorelocate Lackofregionalofficerepresentation DecentralisationcouldImprovecontactwithindustry

Possiblecollusionwithcustomerswithemployeessituatedundervarioussatelliteoffices

Lessonsfromcurrentdecentralisationpilotprojectmayinformwayforward

Historicpilotprojectestablishedwithoutanindepthstudy

CouldintroduceE-commercetobenefitthosefromremoteplaces

CurrenteconomicandlabourconditionsandstateagenciesmaydelaydecentralisationMinister'ssupportfordecentralisation Mayrequirestrongmanagersatsatellite

offices,needtobestilldevelopedAdecentralisationstudycoulddisclosetheappropriatemixbetweentechnologyimprovementandspreadofoffices

EBSrolloutmayfacilitatetradingthroughtheinternet

Inaccessibleofficescouldcontributetolackofindustrystimulation

Valuablelessonscouldbelearntfromother CAAs

Table1: The following is a SWOT Analysis for the organisation, juxtaposed to relevant goals that address them

8.1 SWOT Analysis


SACAA 2017/18 to 2021/22 SWOT Analysis TableOrganisationalGoals

SWOTElements

Strengths Weaknesses Opportunities Threats3 Regulate

aviationindustryeffectivelyandefficiently

TheStrategytoincludeindustryactivityinaccidentsreportsisbeingrolledout

Accidentreportingisnotlinkedtoindustryactivity

Scopetoimprovethestandardofthelicencee

ICAOcontinuousmonitoringapproachmayissueaSSCatanytime

EBSrolloutisimprovingITinfrastructureanddatacleansing

Disparatedatabasesystemsusedtoreportandmonitorindustrysafety&securityinput

IntegrationofsafetyandsecuritydatabasethroughEBS

DeficienciesinthequalitycontrolsystembySACAAmayresultinissuinglicencestoundeservingrecipients

Qualifiedandexperiencedinspectorate Someareasindicatesub-optimalinspectorconduct

Couldintegratesystemswithimportantendusersinordertoobtainreal-timedata

Cyber-crimecouldhamperexternalEBSintegration

Maturingtriedandtestedoversightmethodologies

Failuretorolloutpreventativeinterventionsduetolackofcredibleindustrydata

Significantamountofdocumentsstoredinhardcopy

GoodinternationalreputationInsufficientaviationsecurityoversightonforeignoperators

CommercialisationofNTCAenvironment

4 Acceleratetransformation

SACAAisatransformedorganisation Uncertaintyintheimplementationofnewtransportcodes

Coulddevelopacomprehensivestrategyalignedtonewsectorcodes

IndustryluringSACAAemployeesresultinginstaffattrition

StrongpresenceofHDIwomanintopmanagement

Lackofapropersupplierdevelopmentprogramme

UnclearleadershipontheNationalAviationTransformationStrategy

Inadequatebusinessresourcestosupporttheindustry.

5 Drive organisationalefficiencyandeffectiveness

Strongperformanceprocess WeakperformanceITsystem ProcureaneffectiveperformancemanagementITsystem

Possiblelabourdisputesatcriticaltimesfortheorganisation

HRPoliciesrecentlyreviewedforeffectivenessandapplicability

HRProceduresneedtobedevelopedorupdated

EnsuringthatallHRpoliciesareaccompaniedbyeffectiveprocedures

Skilledandknowledgeablestaff LackofastructuredprogrammetodeveloptechnicalpersonneltoManagers

Establishaleadershipdevelopmentprogramme

Ahigh-performinginstitution Sub-optimalretentionstrategy EstablisheffectiveemployeeretentioninterventionsScopeforimprovingtalentmanagement

6 Improvecommunicationandstakeholdermanagement

Organisationalcommunicationabilitiesadmiredbypeers

Budgetaryconstraintsincommunicatingtogeneralpublic

Developmentofaneffectivestrategythatappropriatelysegmentsstakeholderswiththeappropriatemessagesandfrequencyidentified

FraudulentactivitiesbyindustrymayaffectRSAsafetyreputation

Employeessecretlyprovidingsensitiveinformationtothemedia

Increasedhumancapacitytomanagestakeholders

Lackoftargetedstrategiesforkeystakeholders

Greatercollaborationwithstakeholdersonsafetyinterventions

Falsereports/claimsabouttheAuthorityescalatedtointernationalstructuresbycertainindustrystakeholderscancausereputationaldamagetotheAuthority

7 Significantlyimproveclientserviceexperience

Customerprocessesoptimised Lackofcustomer-centricemployeebehaviour

Engageinchangemanagementtoimprovecustomer-centricity

CollusionbetweenindustryandtheinspectorateNewstructurepoisedforservicedelivery

EffectiveWhistle-blowingpolicy


8.2 PESTLE AnalysisPESTLEAnalysistabulatedbelowservesasanadditionalsourceforstrategyinput.AreasmarkedingreenhaveapositiveimpactonSACAA,whereasthoseshadedinredarenegative.

Table 2: PESTLE Analysis

Possible impact on SACAA’s businessImpact – positive +, negative -, neutral 0 Impact Action/performance

Political factorsImplementationoftheNationalImperatives SACAAPerformancetobealignedwithnationaldevelopment

goalsSACAAobjectiveswerealignedtoNDP,DoTOutcomes,and9PointPlan

A call byNational Treasury to keepaviation chargeseconomicalandmonitortariffescalation

ConstraintsareplacedonSACAAtomaintaincost-to-revenueratios

TheRevisedrevenuemodel,developedin2016/17,thatindicatesfuturetariffadjustmentsinlinewithorganisationalneeds

ThepossibilityofterroristattacksinSouthAfrica ThismayreduceaviationactivityandaffectPSCrevenue SACAAhasnodirectcontroloverpossibleterrorattacks

Economic factorsThefluctuatingoilpricesmaycausevariationtothecostoftravelandthereforeaffectPSCstability

Revenuesecurity isaseriousfactoras74%ofSACAAincomeisdependentonPSC,thatmaybeaffectedbyoilpricevolatility

Newdiversifiedfinancialmodelisduetobeapprovedin2016/17

Zero%GDPforecastmayaffectpassengeractivity SACAArevenuemaydecreaseasaconsequence

Increasinggovernmentbudgetdeficit Apossiblecreditratingdowngradeislikelytoaffectflightaffordability

Discountedairtravelisincreasingpassengeractivitybutmaynotbesustainableinthelongrun

Morerevenuecollected,thoughnotsustainable

Stabilityofthenationalcarrier Short-tomedium-termpotentialreductioninPSC SACAAhasnocontroloveranotherexternalbusiness

InabilitytoresolveaSignificantSafetyConcernaftertheICAOaudit

Reputationaldamageandeconomiclossduetopotentialairlinesfailingtoflytointernationaldestinationsduetoresultantembargo

ICAOpreparationgroupsandexpeditingtheclosureofprotocolquestionsandcompliancechecklists


Possible impact on SACAA’s businessImpact – positive +, negative -, neutral 0 Impact Action/performance

Social factorsIndustrialaction Thesehaveanegativeimpactonaviationindustry

activity2016/17HumanResourcesstrategymitigatestherisk

Highunemployment,inequalityandpovertylevels CostlyaviationentrancebarriersinhibitrapidindustrytransformationandlimitHDIemploymentopportunities

Industry-widetransformationstrategythatmitigatesagainstcostbarriersisbeingimplemented

Slowindustrytransformation ThiscausesaninabilitytomeettheTransportCharterrequirements

Growingmiddleclassandtheirdemandforairtravel Therewillbeanincreaseinrecreationalaviationanddemandforbetterregulationsandsafetyreporting 0 MonitorthegrowthofNTCAanditsrespectiveimpacton

aviation safety

Technological factors

Rapidadvanceinaircraft,airportandoverallaerospacetechnology

NewdevelopmentsandtechnologieswillrequiredifferentskillsetswithinSACAA

RPASregulationsarefullyimplemented

Thereislikelytobecannibalisationwithintheindustryasunmannedsystemsreplaceaircraft,particularlyintheaerialsurveillancespace.

0

Legal (and regulatory) factors

RegulationreviewsandRevisionofpermissionsgranted. Adversereactionsfromaffectedparties 0 ConductjointSACAAandindustryregulationreviewsandengagements

TheamendmentoftheCAAct Regulatorychanges,revisionstosomebusinessoperations

ExpediteamendmentprocessthroughtheShareholder

Environmental factors

Emissionsregulations SACAAenvironmentalregulationswererevisedin2015/16andaredeemedadequate 0 Nofurtheraction


ORGANISATIONAL OVERVIEW


9. Organisational Overview

9.1 South African Aviation LandscapeTheSouthAfricanCivilAviationAuthority(SACAA)isagovernmentSchedule3Aentityestablishedtoprovideoversightofcivilaviation,andismanagedinaccordancewiththeInternationalCivilAviationOrganization(ICAO)prescripts,aUnitedNationsspecialisedagency.

ThetablebelowhighlightsvariousaviationassociationsinSouthAfrica,supportedbyICAOwhichstandardisescivilaviationfunctions,providingguidancetotheDepartmentofTransport,responsiblefortheenablinglegislationandpolicydirection.TheSACAAfurtherdevelopsregulationsalignedtotheenablingActandimplementsthem.

ThereareareasofcollaborationbetweentheSACAA,theDepartmentofDefence(DOD)andtheDepartmentofPoliceandthismakesthemstakeholdersintheSACAAstrategy.Eventhoughthetwodepartmentsdonothavejurisdictionovercivilaviationmatters,theycontributeinjointcommitteesthatseektofostersafetyandsecurityoftheskies.Therearemanyothergovernmentdepartmentswithvaryingdegreesofimpactorcollaborationinthecivilaviationsafetyandsecuritysystem,howevertheyarenotelevatedinthisdiagrammaticrepresentationbelowe.g.theDepartmentofCommunications,theDepartmentofEnvironmentalAffairs,etc.

PilotLicences(About32,000)

• AirlineTransportPilotLicence(ATPL)1,500hours–(FixedWing/Helicopters)

• CommercialPilotLicence(CPL)200hours(FixedWing/Helicopters)

• PrivatePilotsLicence(PPL)–(FixedWing/Helicopters)

• NationalPilotLicence(NPL)25to35hoursdependingontype

• ScheduledAirlinesAssociation• AirlinePilotAssociation• Non-ScheduledAirlines• AirlineMaintenance

Organisations• VintageAirlines

• AssociationofAviationTrainingOrganisation

• AirportsandAerodromesAssociationofSA

• AssociationofAviationMaintenanceOrganisation

• TheHelicopterAssociationofSA• Airside Operators• SAAerospaceTradersandAllied

Industries• AssociationofNon-Scheduled

Operators

• AirshowSouthAfrica• BalloonandAirshipFederationofSA• ExperimentaalAircraftAssociation• HomebuildersAssociationofSA• MicrolightabdLightSportAeroplane

AssociationofSA• ParachutingAssociationofSA• SAGyroplaneAssociation• SAHangandParaglidingAssociation• SAModelAircraftAssociation• SAPowerFlyingAssociation• SoaringSocietyofSA• SportAerobaticClubofSA• TransformationandDevelopment

Airlines(About200) CommercialAviation(About5,800Aircraft)

CommercialAviationAssociation(CAASA)

TypeCertifiedAircraftOwners

Sportsandrecreation(About6,500Aircraft)

RecreationAviationAdministration–SA(RAASA)

InternationalCivilAviationOrganisation(ICAO)

DepartmentofSafetyandSecurityLiaison

LocalContext

Int.

DepartmentofDefence

SAPoliceService SAAirforce

DepartmentofTransport

SouthAfricanCivilAviationAuthority

SouthAfricaisasignatorytotheChicagoconventionandasaresultSACAAsubscribestotheICAO*CriticalSafetyandSecurityElements

Diagram 5: The South African Aviation Landscape

Aviation Landscape


9.2 Organisational StructureThediagrambelowistheSACAAapprovedorganisationalstructure,anendresultofadetailedOrganisationalStructureReview(OSR)processconcludedduringthe2015/16financialyear.Theprocesstookintoaccountindustryinputandcompounded

itwithdepartmentalprocessreviews inordertooptimiseservicedelivery.Thestaffingprocessisanongoingprocesswhichisgainingmomentum,especiallyinthelightoftheupcomingaudit.

Aviation Safety

OperationsFinance Human

ResourcesAviation

InfrastructureAviation Security

LegalandAviation

Compliance

Corporate Services

BoardofDirectors

Minister of Transport

AuditandRiskCommittee

CompanySecretary

DirectorofCivilAviation

AccidentandIncidentInvestigations

ChiefAuditExecutive

FlightInspectionUnit

Minister of Transport DivisionstaskedwithIndependentMandates

BoardandBoardCommitteePositionsperformaGovernanceandBoardsupportrole

MembersoftheSACAA’sExecutiveManagementCommittee

Directfunctionalreporting Administrativereporting

SACAA High level structure


9.3 Employee Demographics

Table 3: SACAA employment demographics that indicate a transformed entity.

EMPLOYMENT EQUITY REPORT AS AT END DECEMBER 2016Occupational

levelMale Female ForeignNationals Total Comments

African Coloured Indian White African Coloured Indian White Male FemaleTarget

Current

Target

Current

Target

Current

Target

Current

Target

Current

Target

Current

Target

Current

Target

Current

Target

Current

Target

Current

Targets

Current

Variance

Topmanagement 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0

Seniormanagement 4 4 0 0 1 1 1 1 3 3 0 0 1 1 0 0 0 0 0 0 10 10 0

Professionallyqualifiedandexperiencedspecialistsandmid-management

41 27 6 2 4 3 12 11 34 25 3 2 2 1 6 4 0 2 1 2 109 79 30 VarianceisduetotheManagementandSpecialistsvacanciesthatneedtobefilled

Skilledtechnicalandacademicallyqualifiedworkers,juniormanagement,supervisors,foremenandsuperintendents

111 105 21 7 12 13 35 34 101 81 17 9 5 5 19 20 0 1 0 0 321 275 46 VarianceisduetoInspectoratelevelvacanciesthatareintheprocessofbeingfilled.

Semi-skilledanddiscretionarydecisionmaking

13 9 0 0 0 0 0 0 43 38 3 1 2 3 2 2 0 0 0 0 63 53 10 ThevarianceisduetovacanciesinthesupportdivisionssuchasAdministrationOfficers,Clerks

Unskilledanddefineddecisionmaking

0 0 0 0 0 0 0 0 2 2 0 0 0 0 0 0 0 0 0 0 2 2 0

TOTAL 169 145 27 9 17 17 48 46 184 150 23 12 10 10 27 26 0 3 1 2 506 420 86


9.4 Culture, Ethics and ValuesResearchshowsthatculturedistinguishesorganisations.Moreandmoreemployeeslookfororganisationswithaculturethatwillfittheirownbeliefsandpreferences.SACAAalreadyhasagoodreputationfortheexecutionofitsstrategyandmandatetoensurethatSACAAcontinuestoattracttalentthatwillaligntoitsvaluesandbeliefsystem;itsculturemustbeclearlydefinedandunderstoodbyallemployees.

TheHumanResourcesStrategy,whichisacoredeliverableoftheOrganisationalStrategyandAnnualPerformancePlan,outlinesthetabulatedstepstobeachievedintheadjacentdiagram.Withinthethreeyearsofdeliverytheorganisationwilldefineitsculture,reviewthecurrentoneandanalysegaps.ThisgapwillbeaddressedbyaCultureManagementPlan(CMP)thatwillincludecommunicatingthenewculture.ContinuousreviewofthecultureplanwilltakeplaceandtheCMPamendedaccordingly.

Theethical thermometerdisclosesaneedtoworkshopemployees,particularlyinspectors,withaviewofinculcatinggoodconductcommensuratewithafitandproperperson.Tothisendannualworkshopswillbeheldinpursuitoftheaboveobject,withthe2017/18financialyearearmarkedforthepreparationofahandbookasthebasisofengagement.

Throughouttheyearsvalueshavebeendisplayedinstrategicplansandcorporatematerialwithverylittleactiontakentocontinuouslyengagetheemployeesinthismatter.Alongwiththeabovecultureandethicalengagements,valueswillalsofeatureprominently.

DevelopCultureManagementPlan

IdentifytheCurrentCulture

MonitorImplementationofDesiredCultureandUpdate/RefinetheCultureManagementPlan

IdentifyandAnalyseSignificantGapsBetweenDesiredandCurrentCulture

DefinetheCultureNeededtoSupportLong-TermSuccess(“DesiredCulture”)

Communicatethe“New”CultureandtheStepsBeingTakentoManageit


10. Risk

ThetablebelowhighlightsthecurrentSACAARiskRegisteranddemonstratesthatresidualriskismaintainedmoreorlessatamoderatelevel.

SACAA STRATEGIC RISK REGISTER – DECEMBER 2016

Risk No.

Risk Description Strategic Objective Evaluation before Considering Current Control

Strategies

Key Management Controls in Place Evaluation after Considering Current Control Strategies

Impact Likeli-hood

Inherent Risk Level

Impact Likeli-hood

Residual Risk

Level1 Inadequate

andineffectiveaviationsafety&securitymeasures

Achieveastep-changeinRegulatingAviationSafetyandSecurity

5 5 25 InternalAudits,Continuousmonitoringandvalidationsystems,ISOaccredited,Participationininternationalforums,Enforcement,ESAFTechassistancemissions(ROSTs),EstablishedICAOComplianceSection(ICS),Fullytrained/experiencedICAOCompliancespecialists,trainedtoICAOauditorlevel,ImplementMasterSurveillancePlan(MSP),EstablishmentofseparatesafetyandsecurityBoardcommittees,PerformanceAgreementbetweentheMinister,BoardandDCA,BoardTechnicalTraining

5 4 20

2 CatastrophicICTsystemsfailure

OptimiseICTtechnicalsystem

4 5 20 ICTGovernanceFramework,ProjectManagementFramework,ITProgrammanagerappointed(CIO),ICTSteeringCommittee,InternalAudit,Assurance,DisasterRecoveryPlanandBusinessContinuityManagement(BCM),MonthlyEXCOreporting,QuarterlyreportingtoARC,SLAwithserviceproviders,EXCOapprovalonscopechanges,EBSImplementationaccordingtoProjectPlan,ICTStrategy,Implementautomationandmonitoringtools,SecurityMonitoring(dataintegrity),BusinessContinuityTestingandmonitoring

4 5 20

3 Limitedandineffectiveaviationsafety&securityoversight(dualreportingoftheDCA)


5 5 25 Twoseparatefunctionalsafetyandsecuritycommittees,PerformanceAgreementbetweentheMinister,BoardandDCA,BoardTechnicalTraining

5 3 15

4 UnethicalBehaviour


5 5 25 HRadministrationofdeclarationsprocess,CAActSection98,DeclarationofInterestPolicy,DeclarationofInterestCommittee,AnnualDeclarationsconducted,Hotline(WhistleBlowers),InternalAudits,:ConflictofInterestPolicy(approvedbyBoard)

5 3 15

ExtremeRisk 17 to 25

HighRisk 10to16

ModerateRisk 5 to 9

LowRisk 1 to 4


SACAA STRATEGIC RISK REGISTER – DECEMBER 2016

Risk No.

Risk Description Strategic Objective Evaluation before Considering Current Control

Strategies

Key Management Controls in Place Evaluation after Considering Current Control Strategies

Impact Likeli-hood

Inherent Risk Level

Impact Likeli-hood

Residual Risk

Level5 DecreasedICAO

EItobelowICAO2017targetscoreof60%


5 5 25 Preparationfor2017ICAOAudit,ICAOTaskTeam,ICAOActivitySchedule,Legislation/Regulation,Policies/Procedures,RegulatoryAudit,TechnicalGuidanceProcedure,ASECCommittee,MonthlyICAOReadinessEXCOReports,ComplianceSectionfullyoperationaltomonitorcompliancetoICAOSARPs,ImplementMasterSurveillancePlan(MSP)

5 3 15

6 InadequateskillsinsomeTechnicalDivisions


5 5 20 ScareSkillsallowance,TalentManagementFramework/SuccessionPlanning,SalaryandGradingBenchmarking,StaffEngagementSurvey,ApprovedSkillsPlan,RemunerationStrategyandPolicy

5 3 15

7 Misalignedsafetyandsecurityinterventions causingacceleratedaccidentrates

ReviseandimplementtheC-FARPandalignto international best practice

5 5 25 ApprovedrevisedCFARPStrategy,Regulations,CFARPquarterlyreportsreconciledwithprevailingsafetydata,MonthlyEXCO&QuarterlyASECreports,ConsultationswithindustryonthedevelopmentofCFARP,IndustryinputsincorporatedintoCFARPasapprovedbyBoard,CompareAircraftaccidentstoactiveaircraftsontheAircraftRegister.CFARPwasrevisedandaquarterlyreportofactionstakenwasreportedtoEXCO.BytheendofQuarter1about20%ofthedeliverablesonCFARPwereachieved,TwoEMPICmoduleswentliveduringthequarteri.e.AvMedandFLC.ImplementtheMSP,SafetySeminarandSafetyCampaign’s,CFARPquarterlydeliverables,ASOCFARPreportsaresubmittedonamonthlyandquarterlybasis

5 3 15

8 LackofasustainablefundingModel

Diversifyandexpandsourcesofrevenue

4 5 20 Revenuemodelusedasaguidelinefortariffincreases,Keypoliciesandproceduresinplace,MinimumcashreservesapprovedbyBoard&NationalTreasury,AnnualTariffIncreases,CostContainmentmeasuresinplace,ActualExpendituremanagedagainstbudgetandvariancesinvestigatedmonthly,:Regularrevenuestreamaudits

4 3 12

9 LackofadequateoversightcoverageandlimitedaccessibilitytoSACAAoffices

Establishanoptimumdistributionofofficepresencenationwide

3 4 12 CapeTownRegionalOffice 3 4 12

10 Lackofbuy-in by internal andexternalstakeholders

Increasestakeholderengagement

4 4 16 2016to2019:StakeholderManagementStrategicPlanimplemented,Periodicinternal&externalstakeholderengagement,BoardparticipationindevelopmentandapprovalofAPP,PeriodicShareholdermeetings(CAAStrategy),RegularmeetingswithDoTOversightDepartment,ExistingIndustryForums(Quarterly),On-goingCommunicationwithinCAAemployees,EmployeeandLabourEngagementPlan(standingmeeting),RecognitionAgreementwithLabour

3 3 9

11 LackofcompliancetotheBBBEENewCodes

EnsurecompliancetoTransportSectorCodes

3 5 15 BBEECommitteeinplace(monitorContracts),IdentifiedthegapsbetweentheOldandNewCodes,Internshipprogram,BursaryProgram,EmploymentEquityPlanandPolicy,Employmentequitycommittee,CSIProgram,SkillsPlan

3 3 9

STRATEGY


11. Strategy

11.1 Core Ideology

Mission

Toregulatecivilaviationsafetyandsecurityinsupportofthesustainabledevelopmentoftheaviationindustry.

Vision

There-confirmedvision isasfollows–RankedamongtheTop10civilaviationauthoritiesgloballyby2020.

Brand Promise

Thefollowingbrandpromiseismaintained–keepingyousafeinthesky.ThisiswhatemployeesmusthaveinmindinconductingSACAAbusiness,thatis,thattheyarecontributingtokeepingpeoplesafeinthesky.Theoutcomeofemployeeconductthroughexemplifiedvaluesmustgiveasenseofsafety intheskiestoconsumersofSACAAservices.

Values

SACAAvaluesremainedthesameandareexplainedbelow:

SACAA Values

Good is never good enough

Integrity Service Excellence

Teamwork and Partnering

Alwaysgivingyourbest effort and

seekingtoimprovethequalityoftheserviceoffering

Maintainhighethicalstandards and approachissues

professionally with integrity,withoutany bias and in a transparentmannerthatengenders

trsustaongstallourstakeholders

Servicedeliveryaheadofcustomerexpectation,

strivingtoalwaysexceedcustomerexpectation

Workingwithothersandtakingjointaccountabilityfortheendresult


11.2 SACAA Regulatory PrinciplesTheSouthAfricanaviationsystem isan importantandstrategicassetof thegovernmentofSouthAfricadueto itsability toprovidesafe,coordinatedairtransportconnectivitytotradepartners,andtotheglobalcommunity.Asuccessfulaviationregulatorymodelisthereforeahighprioritytowardssecuringthedeliveryofsafetyandsecuritystandardsandrecommendedpractices(SARPS)asdefinedbytheInternationalCivilAviationOrganisation(ICAO).TheSACAAisapublicentitydeliveringaviationregulationandcontinuouslystrivingtoreview,assessandenhanceitsoversightmandateinordertoachievegovernmentaloutcomesandaddvaluetotheaviationcommunityglobally.Inimplementingbestpracticeregulatory responsibilities, theSACAAhasrecentlyadopted theRegulatoryPrinciplesbelowtoguideitswork,andlivebywhenmakinganyregulatoryoradministrativedecisions.

Regulationsmaywidelybedefinedasanygovernmentmeasureorinterventionthatseekstochangethebehaviourof individualsorgroups. Itseekstogivepeoplerightsorrestricttheirbehaviour.TheSACAAhasaresponsibilitytoensurethatregulationsarenecessary,fair,effective,andaffordableandenjoyabroaddegreeofpublicconfidence.Toachieve this, theSACAAwillensure thatanypolicyinterventionanditsadministrativedecisionsmeetthefollowingprinciples:

• Consistency• Transparency• Accountability• Proportionality• TargetedRegulations• AdherencetotheRuleofLaw.

Theseprinciplesshallbeused formeasuringand improving thequalityofSACAA’Sregulations,administrativedecisionsandenforcementactionandtheyareelaborateduponbelow:

ConsistencyRulesandstandardsmustbealignedandimplemented

fairly.TheSACAAwillensurethat:Consistency

• ItsregulationsareconsistentwiththoseofotherstateentitiesandwithICAOStandardsandRecommendedpractices.

• Newregulations takeaccountofotherexistingorproposedregulations,

whetherofdomesticorinternationalorigin.• Regulationsarepredictableinordertogivereasonablestabilityandcertainty

tothosebeingregulated.• Enforcementagenciesworktogethertoapplyregulationsconsistentlyacross

thecountry.• Theapplicableregulationsareappliedconsistentlyandfairlywhentaking

administrativedecision.

Transparency Regulationsshouldbeopen,simpleanduser-friendly

• Policyobjectives,includingtheneedforregulation,shouldbeclearlydefinedandeffectivelycommunicatedtoallinterestedparties.

• Effectiveconsultationmust takeplacebeforeproposalsareapproved, toensurethatstakeholders’viewsandexpertisearetakenintoaccount.

• Stakeholdersshouldbegivensufficientinformationandtimetorespondtoconsultations.

• Regulationsshouldbeclearandsimple.• Thosebeingregulatedshouldbemadeawareoftheirobligations,withlaw

andbestpracticeclearlydistinguished.• Thosebeingregulatedshouldbegiventhetimeandsupporttocomply.Our

TechnicalStandardsshouldsupplyexamplesofmethodsofcompliance.• Theconsequencesofnon-complianceshouldbemadeclear.

AccountabilityBeabletojustifydecisionsandbesubjecttopublic

scrutiny

• Regulatoryproposalswillbepublishedandallthosethatareaffectedwillbeconsultedbeforedecisionsaretaken.

• Alladministrativeactionswillbecommunicatedclearly.

• Beforemakingdecisions that could adversely affect the rights of anystakeholder, theaffectedpersonwillbeaffordedanopportunity tomakerepresentations.Theaffectedpartywillbegivenreasonsonhowandwhyfinaldecisionshavebeenreached.


• TheSACAAwillestablishclearstandardsandcriteriaagainstwhichtheycanbejudged.

• Onceanadministrativedecisionhasbeentaken,theaffectedpersonwillbeadvisedofinternalappealprocesses.

• TheSACAAwillhaveawell-publicised,accessible,fairandeffectivecomplaintsandappealsprocedure,underpinnedbyclearlinesofaccountability.

ProportionalityIntervenewhennecessary.Remediesshouldbeappropriatetotheriskposedandcostsidentifiedandminimised.

• TheSACAApolicysolutionswillbeproportionatetotheperceivedproblemorriskandjustifythecompliancecostsimposed.

• Alltheoptionsforachievingpolicyobjectiveswillbeconsidered–notjustprescriptiveregulation.TheSACAAwillconsiderotheralternativeswhichmaybemoreeffectiveandcheapertoapply.

• Regulationcanhaveadisproportionateimpactonsmallbusinesses,whichaccountformostbusinesses.Theimpactonsmallandbigorganisationsshallbetakenintoaccountwhendevelopingregulations.

• ICAOstandardsshallbetransposedinlinewithICAOrequirementsunlesswehavefiledthedifference.

• Enforcementactionswillbeproportionate to theriskposed;andwewillconsiderremedialeducationalandnon-punitiveapproaches,ratherthanapunitiveapproachwherepossible.

• Whentakingadministrativedecisionswewillendeavourtofindsolutionsthatarelesscostlyandquickwithoutcompromisingaviationsafetyandsecurity.

TargetedRegulations

Regulationandadministrativedecisionswill focusontheproblemandminimiseside-effects.

• TheSACAAregulationswillfocusontheproblemandwewillavoidascattergunapproach.

• Whereappropriate,ourregulationswilladoptanoutcomes-basedapproach,withthosebeingregulated,givenflexibilityindecidinghowtomeetclear,unambiguoustargets.

• Whenimplementingregulationsandtakingadministrativedecisions,guidanceandsupportwillbeadaptedtotheneedsofdifferentaffectedgroups.

• Regulationsandadministrativedecisionswillbesystematically reviewedtotestwhethertheyarestillnecessaryandeffective.Ifnot, theywillbemodifiedoreliminated.

AdherencetotheRuleofLaw

Inlinewiththeruleoflawouradministrativedecisionswillbeunderpinnedbyuniversalprinciplesoffairness,moralityandjusticethattranscendshumanlegalsystems.

• TheSACAAisacreatureofstatuteandassuchitsofficialsareaccountableunderthelawwhenconductingtheiradministrativefunctions.

• Wewillensurethatourlegislationandlegalprinciplesareclear,publicised,stableandjust.

• Inapplyingthe legislationweadministerwewillprotect the fundamentalindividualrights,aviationsafetyandsecurityandhumanrights.

• Wewillensurethattheprocessbywhichthelegislationisenacted,administeredandenforcedwillbeaccessible,fairandefficient.

• Wewillensure thatouradministrativedecisionsaredelivered timelybycompetent,ethicalandobjectiveindividuals.


Alignment of Organisational Goals to National Imperatives

National Development Plan DoT Outcomes Organisational Goals1 BuildingSaferCommunities Anefficientandintegratedtransportinfrastructurenetwork

forsocialandeconomicdevelopmentRegulatetheaviationindustryeffectivelyandefficiently.

2 TransitiontoLowCarbonEconomy Increasedcontributionoftransporttoenvironmentalprotection

3 TransformingSocietyandUnitingtheCountry Increasedcontributiontojobcreation Acceleratetransformation

4 ReformingthePublicService Anefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopment

Increaseaccessibilitytoregulatoryservices

Securefinancialsustainability

Driveorganisationalefficiencyandeffectiveness

Improvecommunicationandstakeholdermanagement

Significantlyimproveclientservices’experience

11.3 Strategy Alignment Inrevisingthestrategyanddevelopingthe2017/18AnnualPerformancePlan,theSACAAensuredalignmenttoandsupportoftheNationalDevelopmentPlanandDoTOutcomes.CognisancewasalsogiveninrelationtothenationalprioritiesasarticulatedinvariousgovernmentplatformssuchastheStateoftheNation

AddressbythePresidentoftheRepublicandthe9-PointPlan.EventhoughnotalltheaspectsoftheseinterventionsapplytotheSACAAenvironment,ongoingprogressreportsaresharedwiththeshareholderwhereapplicable.

Adopted Strategic Objectives

Aftersatisfyingtheaboveprocesses,theAuthorityarrivedatthebelowStrategicObjectives,whicharepositioningtheorganisationtoachievethegame-changingtargetsassetoutinthesubsequentannualandquarterlytables.

1. Achieveastep-changeinregulatingAviationSafetyandSecurity

2. AchievetheMasterSurveillancePlan(MSP)Targets

3. ReviseandimplementC-FARPandaligntointernationalbestpractice

4. Establishaplatformtomanagesafetyrisk

5. Establishaplatformtomanagesecurityrisk

6. Establishanoptimumdistributionofofficepresencenationwide

7. Diversifyandexpandsourcesofrevenue

8. Establishacultureofprudentfinancialmanagement

9. Increasestakeholderengagement

10. Improvecustomers’experience

11. Driveaperformanceculture

12. OptimiseICTtechnicalsystem

13. EnsurecompliancetoTransportSectorCodes.

Table 4: Alignment of Organisational Goals to National Imperatives


12. Strategy Deliverable TablesSACAA revised strategy – annual targets Table A

Integrated category

Outcome Strategic objective

Performance indicators

Annual target 2016/17





OrganisationalGoal1:Regulateaviationindustryeffectivelyandefficiently

NDP:BuildingSaferCommunities DoTOutcome:Anefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopment

SafetyandSecurity

Effective,efficientandtechnologicallysoundoversightsystems

Achieveastep-changeinregulatingAviationSafetyandSecurity

ICAOAuditwithnosafetysignificantconcern

DevelopandimplementCAPtoclosefindingsintimeforthePre-ICAOAssessmentAuditin2016/17financialyear,andfinalauditin2017/18

AuditoutcomewithnoSignificantSafetyConcern

ImplementSACAAspecificCAPaccordingtomilestones



CorrectiveActionPlan(CAP)approvedbyEXCO

DevelopCorrectiveActionPlan(CAP)

EXCOapprovedICAOUSAP-CMAReadinessandimplementationplan

N/A DevelopandimplementanICAOUSAP-CMAreadiness plan

ConductapeerassessmentonthestateofICAOUSAP-CMAstateof readiness

Develop and implementSACAAspecificICAOUSAP-CMACAP

Develop and implementSACAAspecificICAOUSAP-CMACAP

AllexaminationsforissuingAnnex1licencesconductedbySACAAasperEXCOapprovedplan

N/A DevelopandimplementprojectplantoextendexaminationstoallAnnex1licences

ImplementapprovedprojectplantoextendAnnex1examinationsaccordingtomilestones

CompleteprojecttoextendexaminationstoallAnnex1licencesbyMarch2020

N/A

EXCOapprovedBenchmarkingReport

N/A Conductbenchmarkingfortheintroductionofpracticalcompetencyassessmentsoftargetedpersonnel in the licensingvaluechain

Developastrategytointroducepracticalcompetencyassessmentsoftargetedpersonnelinthelicensingvaluechain

Implementpracticalcompetencyassessmentstrategyaccordingtomilestones

Implementpracticalcompetencyassessmentstrategyaccordingtomilestones

ReviseandimplementC-FARPandalignto international bestpractice

Cross-FunctionalAccidentReductionPlan(C-FARP)implementedaccordingtomilestonesandreportedquarterly

Achieveaminimumof33%ofC-FARPdeliverables and report quarterly

ReviseC-FARPandachieve90%ofannualdeliverables.

ReviseC-FARPandachieve90%ofannualdeliverables.

ConductC-FARPimpactassessmentandreviseplan for approval by EXCOandimplement

ImplementrevisedC-FARPaccordingtoEXCOapprovedroll-outPlan

Establishaplatformtomanagesafetyrisk

Industrysafetydatagathered,analysed,andreportedinaccordancetoEXCOapprovedframework

N/A Developaframeworkforindustryinputanddata analysis on safety managementsystems

Implementapprovedframeworkaccordingtomilestonesforindustryinputand data analysis on safety managementsystems

Reviewframeworkaccordingtomilestonesforindustryinputanddataanalysisonsafetymanagementsystems

Implementapprovedframeworkaccordingtomilestonesforindustryinputand data analysis on safety managementsystems

Establishaplatformtomanagesecurityrisk

Industrysecuritydatagathered,analysed,andreportedinaccordancetoEXCOapprovedframework

N/A Developaframeworkforindustryinputanddataanalysisonsecurityinformationsystems

Implementapprovedframeworkaccordingtomilestonesforindustryinput&dataanalysisonsecurityinformationsystems

Reviewframeworkaccordingtomilestonesforindustryinput&dataanalysisonsecurityinformationsystems

Implementapprovedframeworkaccordingtomilestonesforindustryinput&dataanalysisonsecurityinformationsystems


SACAA revised strategy – annual targets Table AOrganisationalGoal1:Regulateaviationindustryeffectivelyandefficiently


Surveillance and audits conducted according to plan

Budgeted 2016/17 financial year

Annual planned departmental surveillance activities






Aviation Infrastructure(AI)

AirTrafficServices 55 58 57 60 60 60

AerodromeLicenceInspections 130 131 130 130 130 130

AerodromeSurveillance 19 14 20 21 21 21

CNS 51 53 53 55 55 55

AviationEnvironmentalProtection

8 12 12 12 12 12

Total (Achieve a minimum 95% of AI targets) 255(8) 268 264 270 270 266

Aviation Security(AS)

Airports and Airlines 213 249 255 261 267 273

RegulatedAgentsandKnownConsignors

362 377 377 392 392 392

DangerousGoodsSafetyOversight

404 420 420 437 437 437

TrainingOrganisations 123 130 131 132 132 133

Total (Achieve a minimum 95% of AvSec targets) 1,102 1,176 1,183 1,222 1,228 1,235

Aviation SafetyOperations (ASO)

AirMaintenanceOrganisation 454 416 416 416 416 416

ManufacturingOrganisation 46 23 23 23 23 23

AirOperatorCertificateHolders 697 342 342 342 342 342

AviationTrainingOrganisations 458 315 315 315 315 315

Total (Achieve a minimum 95% of ASO targets) 1,655 1,096 1,096 1,096 1,096 1,096

Integrated Category

Outcome Strategic Objective

Performance Indicators

Annual Target 2016/17





OrganisationalGoal2:Increaseaccesstoregulatoryservices

NDP:Reformingthepublicservice DoTOutcome:Anefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopment

AccesstoRegulatoryServices

Nationalfootprint that bestservicesstakeholdersandcustomers


SACAAdecentralisationinaccordancetoBoardapproved plan

N/A DevelopabusinesscasefordecentralisationofSACAAservices

Implementdecentralisationplanaccordingtomilestones




SACAA revised strategy – annual targets Table A

Integrated Category

Outcome Strategic Objective

Performance Indicators

Annual Target 2016/17







OrganisationalSustainability

Sustainableorganisation

Diversify andexpandsourcesofrevenue

Progressreportonimplementationoffundingmodel

Board approval of revisedfundingmodelandcommenceimplementation

ImplementBoardapprovedFundingmodelprojectplanandreportprogressquarterlytoEXCO



Fundingmodelfullyimplemented

Sustainableorganisation

Establishacultureofprudentfinancialmanagement

EXCOapprovedCostContainmentPlan

N/A Develop and implementanannualCostContainmentPlanasperNationalTreasuryInstruction

ReviseandimplementanannualCostContainmentPlanasperNationalTreasuryInstruction

ReviseandimplementanannualCostContainmentPlanasperNationalTreasuryInstruction

DevelopandimplementanannualCostContainmentPlanasperNationalTreasuryInstruction



SocialandRelationship

Demystifyaviation to the public

Increasestakeholderengagement

Achieveaminimum85%ofStakeholderManagementannualdeliverables

ReviseandimplementBoard-approvedStakeholderManagementPlan

ImplementStakeholderManagementPlanandachieve90%ofannualtargets

ImplementStakeholderManagementPlanandachieve90%ofannualtargets

RevisetheStakeholderManagementPlanandimplementaccordingtosetmilestones

ImplementrevisedStakeholderManagementPlanaccordingtosetmilestones



SocialandRelationship

Improvedstakeholderengagement

Improvecustomerexperience

Changemanagementprogrammetoinculcateacustomer-centricculturerolledoutintermsofEXCOapprovedprogramme

N/A Develop and implementachangemanagementprogrammetoinculcateacustomer-centricculture

Embedcustomer-centriccultureasperchangemanagementprogram.ProduceAnnualIndependentAssessmentReport

Embedcustomer-centriccultureasperchangemanagementprogramme.ProduceAnnualIndependentAssessmentReport

Reviewandimplementannualprogrammetoinculcateacustomer-centricculture


SACAA revised strategy – annual targets Table AOrganisationalGoal6:Driveorganisationalefficiencyandeffectiveness


HumanCapital

Smartapproachinmaintaininghighperformancelevels in a transformedorganisation

Drive a performanceculture

Achieveaminimum85%ofHRstrategyannualdeliverables

Developa3-yearcomprehensiveHRstrategyalignedtoHRcompetenciestoenhancetalentmanagementforapprovalbyHRCandimplement.

ImplementBoard-approvedHRstrategyinaccordancewithroll-outplanmilestones


ReviseHRStrategyforapprovalbyHRCandimplement



MigrationfromdisparatesystemstointegratedsafetyandsecuritysystemthroughtherolloutoftheElectronicBusinessSystem(EBS)project

Achieveaminimumof80%ofSACAAFitICTplan deliverables

Achieveaminimumof80%ofplannedEBStechnicalsystemimplementationforEXCOreportingandapprovalquarterly

Achieve80%ofEBSProjectplanandreporttoEXCOquarterly

Achievefullsign-offforEBSproject

DevelopandimplementanERDMSprojectplan


NDP:Transformingsocietyandunitingthecountry DoT:IncreasedcontributiontoJobCreationHumanCapital

Smartapproachinmaintaininghighperformancelevels in a transformedorganisation

Ensurecomplianceto Transport SectorCodes

B-BBEEcertificationlevelprogressioninline with approved B-BBEEPlan.ReadinessplanfornewTransportsectorcodes

MaintainB-BBEELevel2basedonexistingcodesorLevel6based on the new sectorcodes

DevelopaB-BBEEplanalignedtothenewTransportPublicSectorcodesforapprovalbyEXCO

ImplementEXCOapprovedB-BBEEplanalignedtonewsectorcodes

ImplementapprovedB-BBEEplanandachieveLevel6ratingbasedonnewsectorcodes

ReviewB-BBEEtransformationplan


SACAA revised strategy – quarterly targets Table B

Strategic objective

Audited actual performance Annual targets 2016/17

Annual targets 2017/18

Indicator 2017/18 Quarterly targets

Year 3 Year 2 Year 1 Quarter 1 Quarter 2 Quarter 3 Quarter 4OrganisationalGoal1:Regulateaviationindustryeffectivelyandefficiently

OrganisationalGoalEstimatedCost:R345m


Achieveastep-changeinregulatingAviationSafetyandSecurity

N/A 2013ICAOICVMAuditwith no significantfindings

Performanceaccordingto ICAO CorrectiveActionPlan(CAP)

Develop and implementCAPtoclosefindingsintimeforthePre-ICAOAssessmentAuditin2016/17financialyear,andfinalauditin2017/18

AuditoutcomewithnoSignificantSafetyConcern(SSC)

NosignificantSafetyConcern(SSC)asanauditoutcome

UniversalSafetyOversightAuditProgramme(USOAP)-CMAauditconductedby ICAO

Submitcommentson draft ICAO AuditReportforEXCOapprovalandsubmissiontoDoT

FinalReportfromICAOwithnoSSC

N/A

DevelopCorrectiveActionPlan(CAP)to be approved by EXCOandsubmittedto DoT

ApprovedCAPbyEXCOandsubmissiontoDoT

N/A DevelopUSOAP-CMACAPandpresenttoEXCOforapprovalandsubmitto DoT

N/A FinalCAPapprovedbyEXCO

N/A N/A N/A N/A Develop and implementanICAOUSAP-CMAreadiness plan

EXCO-approvedICAOUSAP-CMAReadinessandimplementationplan

DevelopaUSAP-CMAreadiness plan to be approvedbyEXCO

ImplementUSAP-CMA readiness planaccordingtomilestonesandreporttoEXCO

ImplementUSAP-CMA readiness planaccordingtomilestonesandreporttoEXCO

USAP-CMAstateof readiness report approvedbyEXCO

N/A N/A N/A N/A Develop and implementprojectplantoextendexaminationstoallAnnex1licences

EXCOapprovedprojectplan

N/A ScopeofoutstandingAnnex1examinationsapprovedbyEXCO

EXCOapprovedprojectplantoextendexaminationstoallAnnex1licences

ImplementprojectaccordingtomilestonesandreporttoEXCO

N/A N/A N/A N/A Conductbenchmarkingfortheintroductionofpracticalcompetencyassessmentsoftargetedpersonnelinthelicensingvaluechain


N/A EXCOapprovedbenchmarkingTORforintroducingpracticalcompetencyassessments

CommencebenchmarkingandprovideprogressreporttoEXCO

EXCOapprovalofthefinalisedbenchmarkingreport

ReviseandimplementCFARPandaligntointernational bestpractice

N/A N/A Approved Cross-FunctionalAccidentReductionPlan(CFARP)implemented

Achieveaminimumof33%ofCFARPdeliverables and reportquarterly

ReviseCFARPandachieveaminimumof90%ofCFARPannualdeliverablesandreportquarterlytoEXCO

90%oftheannualCFARPdeliverablesachievedandreportedtoEXCOquarterly

ReviseCFARPandsolicitapprovalfromEXCO

ImplementrevisedCFARPaccordingtoEXCOapprovedroll-outmilestonesandreporttoEXCO




N/A N/A N/A N/A Developaframeworkforindustryinputand data analysis on safetymanagementsystems

FrameworkapprovedbyEXCO

Developdraftframeworkforindustryinputanddata analysis on safety managementsystems.PresenttoEXCO.

ConductindustryinputworkshopsonDraftFramework.ReporttoEXCO

ReviseinitialdraftwithindustryinputsanddevelopfinalframeworkforEXCOapproval

FrameworkapprovalbyEXCO


SACAA revised strategy – quarterly targets Table BEstablishaplatformtomanagesecurityrisk

N/A N/A N/A N/A Develop a frameworkforindustryinputanddata analysis on securityinformationsystems

FrameworkapprovedbyEXCO

Develop draft frameworkforindustryinputanddata analysis on securityinformationsystems

Conductindustryworkshopsondraftframework

Reviseinitialdraft with industryinputsanddevelopfinalframeworkforEXCOapproval

FrameworkapprovalbyEXCO

Aviation Security Master Surveillance And Audit Plan

Reporting period

Annual target 2017/18 2017/18 quarterly targets

Quarter 1 Quarter 2 Quarter 3 Quarter 4Airports and Airlines Quarterly 249 63 65 60 61

RegulatedAgentsandKnownConsignors 377 94 94 94 95

DangerousGoodsSafetyOversight 420 103 103 103 111

TrainingOrganisations 130 33 32 33 32

Total - Minimum 95% of annual target 1,176 293 294 290 299

Aviation Infrastructure Master Surveillance And Audit Plan

Reporting period

Annual target 2017/18 2017/18 quarterly targets

Quarter 1 Quarter 2 Quarter 3 Quarter 4AirTrafficServices Quarterly 58 18 13 15 12

AerodromeLicenceInspections 131 30 45 30 26

AerodromeSurveillance 14 4 0 5 5

CNS 53 15 15 10 13

AviationEnvironmentalProtection 12 3 4 2 3

Total - Minimum 95% of annual target 268 70 77 62 59

Aviation Safety Operation Master Surveillance And Audit Plan

Reporting period

Annual target 2017/18 2017/18 Quarterly targets

Quarter 1 Quarter 2 Quarter 3 Quarter 4AirMaintenanceOrganisation Quarterly 416 104 104 104 104

ManufacturingOrganisation 23 5 6 6 6

AirOperatorCertificateHolders 342 84 86 86 86

AviationTrainingOrganisation 315 78 79 79 79

Total - Minimum 95% of annual target 1,096 271 275 275 275



Strategic objective

Audited actual performance Annual targets 2016/17

Annual targets 2017/18


Year 3 Year 2 Year 1 Quarter 1 Quarter 2 Quarter 3 Quarter 4OrganisationalGoal2:Increaseaccesstoregulatoryservices

OrganisationalgoalestimatedcostR8.9m

NDP:Reformingthepublicservice DoT:AnefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopmentEstablishanoptimumdistributionofofficepresencenationwide

N/A N/A N/A N/A Develop a businesscasefordecentralisationofSACAAservicesforapprovalbyEXCO

EXCOapproveddecentralisationbusinesscase

N/A DevelopbusinesscaseandsubmitprogressreporttoEXCO

DraftBusinessCasesubmittedtoEXCOforcomments.

DecentralisationbusinesscasesubmittedtoEXCOfor approval


Organisationalgoalestimatedcost:R72m

NDP:Reformingthepublicservice DoT:AnefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopmentDiversify andexpandsourcesofrevenue

N/A Updated fundingmodelapproved by Board

Approved financialmodeldevelopmentprojectplan

Board approval of revised fundingmodelandcommenceimplementation

ImplementBoard-approvedFundingmodelprojectplan and report progressquarterlytoEXCO

ProgressReportonimplementationofFundingModel

ProgressreporttoEXCOontheFundingmodelimplementation





N/A N/A N/A N/A Develop and implementanannualCost-ContainmentPlanasperNationalTreasuryInstruction

EXCOapprovedCost-ContainmentPlan

DevelopaCost-Containmentplanfor approval by EXCO

ImplementCost-ContainmentPlanandreportquarterlytoEXCO





NDP:Reformingthepublicservice DoT:AnefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopmentIncreasestakeholderengagement

N/A Board approved StakeholderManagementPlan

OrganisationDesign–diagnosticcustomerconcernsmapped

ReviseandimplementBoard approved StakeholderManagementPlan

ImplementStakeholderManagementPlanandachieve90%ofannualtargetsset

Achieve90%ofannualsettargets

ImplementStakeholderManagementPlanaccordingtosetmilestonesandreporttoEXCO






Strategic objective

Audited actual performance Estimated performance

2016/17



Year 3 Year 2 Year 1 Quarter 1 Quarter 2 Quarter 3 Quarter 4



NDP:Reformingthepublicservice DoT:AnefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopmentImprovecustomerexperience

N/A N/A N/A N/A Develop and implementachangemanagementprogrammetoinculcateacustomer-centricculture

ChangemanagementprogrammetobeapprovedbyEXCO

DevelopchangemanagementprogrammeandsubmitprogressreporttoEXCO

ImplementapprovedchangemanagementprogrammemilestonesandreportprogresstoEXCO



OrganisationalGoal6:Driveorganisationalefficiencyandeffectiveness


NDP:Reformingthepublicservice DoT:AnefficientandintegratedtransportinfrastructurenetworkforsocialandeconomicdevelopmentDrive a performanceculture

N/A N/A N/A Developa3-yearcomprehensiveHRstrategyalignedtoHRcompetenciestoenhancetalentmanagementforapprovalbyHRCandimplement.

ImplementBoard-approvedHRstrategyinaccordancetoroll-outplanmilestones

Achieve85%ofHRstrategydeliverables

ImplementHRstrategyaccordingto approved milestonesandreporttoHRC





N/A Approved EnterpriseBusinessSystemTender

ImplementITSystemsstrategy

Achieveaminimumof80%ofSACAAFitICTplan deliverables

Achieveaminimumof80%ofplannedICTEBStechnicalsystemimplementation

Board-approvedEBSprojectplan

ImplementEBSrolloutaccordingto approved milestonesandreportprogresstoEXCO






NDP:Transformingsocietyandunitingthecountry DoT:IncreasedcontributiontoJobCreationEnsurecomplianceto Transport SectorCodes

AchievedBBBEELevel3

AchievedBBBEELevel 2 Certification

AchievedBBBEELevel 2 Certification

MaintainBBBEELevel 2 based on existingcodesorLevel 6 based on thenewsectorcodes

DevelopaB-BBEEplanalignedtothe new Transport PublicSectorcodesforapprovalbyEXCO.

B-BBEEplanapprovedbyEXCO

BBBEECommitteetrainingonnewTransportSectorCodes

DevelopaB-BBEEplan approved by EXCO

ImplementapprovedB-BBEEplanaccordingtomilestonesandreporttoEXCO

ImplementapprovedB-BBEEplanaccordingtomilestonesandreporttoEXCO


Technical indicators Table C

Indicator Indicator title

Short definition

Purpose/ Importance

Source collection

data

Method of calculation

Data limitation

Type of indicator

Calculation type

Reporting cycle

New indicator

Desired Purpose

1. RegulateaviationindustryeffectivelyandefficientlyNoSignificantSafetyConcern(SSC)asanauditoutcomeoftheICAOAudit

ICAO safety Audit

SafetyassessmentauditconductedbyICAO

Haseconomicimportancetoairlineindustryasitmaycauselimitationoftrade

ICAOauditreport

N/A None Qualitative N/A Annual No Improvementofeffectiveimplementation

ApprovedCAPbyEXCO

USOAPAuditCAP

SafetyAssessmentauditanddevelopmentofrelevantCAP

Haseconomicimportanceto airline industryasitmaycauselimitationoftrade

EXCOApprovedCAP

N/A None Qualitative N/A Annual No Improvementofeffectiveimplementation

ReportingagainstEXCOapprovedICAOUSAP-CMACAPtobeapproved by EXCO

USAPAudit Securityreadiness for externalaudit

ContinuousclosureofICAO safety compliancegap

ICCSCAPReport

N/A None Qualitative N/A Quarterly No Growth in effectiveimplementation

EXCOapprovedprojectplantoextendexaminationsonAnnex1licences

Licensingassurance

SACAAexaminingallAnnex1licences

ContinuousclosureofICAOsecuritycompliancegap

ICCSCAPReport

None None Qualitative N/A Quarterly No Growth in effectiveimplementation


Practicalcompetencyassessment

QualityassuranceprocessthatallowsSACAAtorandomlytestlicenceespractically

Improvequalityassurancelicencees

EXCOresolution

None None Qualitative N/A Quarterly Yes SACAAtodirectlytestlicenceespracticallyonselectbasis

CFARPdeliverables achievedaccordingtoannualplan

CFARPimplementation

%ImplementationofCFARPdeliverables

Address the accidentrate

EXCOreportandresolution

None None Qualitative N/A Quarterly Yes Safetyinterventions alignedtoaccidentstatistics

2016 /17 Technical Indicator Per Division – Table C




Short definition

Purpose/ Importance

Source collection

data


Data limitation

Type of indicator

Calculation type

Reporting cycle

New indicator

Desired Purpose

Frameworkorindustryinputanddata analysis on safetyinformationsystemsapprovedby Board

Safetydatainputand report Framework

Frameworkthatspecifiessafety data inputandreportingprotocols

Determinesetstandards for safety data collectionandreporting

Board resolution

None None Qualitative N/A Quarterly Yes Qualitysafetydata available instantly and usedtopredicttrends

Frameworkorindustryinputanddata analysis on securityinformationsystemsapprovedby Board

Safetydatainputand report Framework

Frameworkthatspecifiessafety data inputandreportingprotocols

Determinesetstandards for securitydatacollectionandreporting

Board resolution

None None Qualitative N/A Quarterly Yes Qualitysecuritydata available instantly and usedtopredicttrends

AreaofOversight 2017/18AnnualTarget

Sourcecollectiondata


Data limitation

Type of indicator

Calculationtype

Reportingcycle

Newindicator

Desired Purpose

AvSec Airports and Airlines 249 DCAQuarterlyReport

Addition Applications Quantitative Cumulative Quarterly No Oversight

RegulatedAgentsandKnownConsignors

377

DangerousGoodsSafetyOversight

420

TrainingOrganisations 130

AI AirTrafficServices 57

AerodromeLicenceInspections 130

AerodromeSurveillance 20

CNS 53

ASO AviationEnvironmentalProtection 12

AircraftMaintenanceOrganisation 416

ManufacturingOrganisation 23

AirOperatorCertificateHolders 342

AviationTrainingOrganisation 315

2. IncreaseaccesstoregulatoryservicesExcoapproveddecentralisationbusinesscase

Decentralisationmodel

Definingfuturedecentralisationlandscape

Informsofficedecentralisation

Boardresolution N/A None Qualitative N/A Quarterly Yes Improvedaccesstoregulatoryservices




Short definition

Purpose/ Importance

Source collection

data


Data limitation

Type of indicator

Calculation type

Reporting cycle

New indicator

Desired Purpose

3. SecurefinancialsustainabilityProgressreportonimplementationoffundingmodel

Fundingmodelimplementation

Implementationoffundingmodel

Reducesrelianceonsingleincomestream

Board resolution

N/A None Qualitative N/A Quarterly No Balancedincomestreams

EXCOapprovedCost-ContainmentPlan

Cost-Containmentplan implementation

Roll-outofapproved plan

Ensuresexpensesremainwithinbudget

NTInstruction Addition None Quantitative Cumulative Quarterly Yes Increasedsavings

4. ImprovecommunicationandstakeholdermanagementAchieve90%ofBoard-approvedStakeholderManagementPlanannualsettargets

StakeholderManagementPlan

Improvestakeholdermanagement

Businessthatmeetsstakeholderneeds

Board resolution

None None Qualitative N/A Quarterly Yes Improvedstakeholdersatisfaction

5. Significantlyimproveclientserviceexperience

Changemanagementprogrammetoinculcateacustomer-centriccultureto be approved by EXCO

ChangeManagementProgrammeimplementation

Embeddingcustomercentric-culture

Improveorganisationalcustomer-centricity

EXCOresolution None None Qualitative N/A Quarterly Yes Improvedcustomersatisfaction

6. DriveorganisationalefficiencyandeffectivenessAchieve85%ofHRstrategydeliverables

HRStrategyImplementation

Delivery of the HRStrategy

Improveorganisationaleffectiveness

HRCresolution None None Qualitative N/A Quarterly Yes Maintaineffectivetalent pipeline

Board-approvedEBSprojectplan

EBSImplementation

ExpeditingintegrationofITSystems

EnsuretimeousEBSimplementation

Boardresolution None None Qualitative N/A Quarterly Yes Expeditesystemsintegration

7. AcceleratetransformationB-BBEEplanapprovedbyEXCO

BBBEEPlan Strategyto adhere to revised transport codes

Adherenceandalignmentto proposed transport codes

EXCOresolution

Prescribedbysectorcodes

Codes not promulgatedyet

Qualitative N/A Quarterly Yes Transformation

MTEFEXPENDITURE


Actual 2014/15 %

Actual 2015/16 %

ENE budget 2016/17 %

FCST 2016/17 %

MTEF budget

2017/18 %

MTEF budget

2018/19 %

MTEF budget

2019/20 %

Total revenue

463,007,845 100.0%

538,377,249 100.0%

573,330,631 100.0%

599,447,221 100.0%

650,765,304 100.0%

703,363,875 100.0%

758,039,643 100.0%User fees 74,332,529 16.1% 83,895,315 15.6% 95,376,357 16.6% 94,900,916 15.8% 101,539,371 15.6% 109,599,821 15.6% 118,097,989 15.6%Safetycharges 333,818,523 72.1% 401,011,281 74.5% 423,929,353 73.9% 447,133,176 74.6% 492,478,508 75.7% 534,683,850 76.0% 578,691,660 76.3%Fuellevy 23,494,139 5.1% 21,107,971 3.9% 25,624,397 4.5% 25,319,418 4.2% 27,283,408 4.2% 29,300,619 4.2% 31,526,752 4.2%NDoT 17,916,000 3.9% 18,740,000 3.5% 19,733,619 3.4% 19,733,619 3.3% 20,720,719 3.2% 21,824,222 3.1% 23,046,378 3.0%Otherincome 13,446,654 2.9% 13,622,683 2.5% 8,666,905 1.5% 12,360,091 2.1% 8,743,298 1.3% 7,955,363 1.1% 6,676,863 0.9%

Less: Staff-related costs (318,243,638) 71.4% (341,278,497) 72.3% (411,185,930) 73.0% (407,242,808) 73.0% (476,390,377) 72.9% (513,277,873) 71.5% (547,981,662) 71.5%Grossremuneration (293,160,681) 65.7% (313,355,867) 66.4% (372,988,526) 66.2% (371,090,808) 66.6% (434,697,433) 66.5% (468,748,861) 65.3% (500,616,467) 65.3%Training (10,618,583) 2.4% (11,099,740) 2.4% (19,272,635) 3.4% (18,874,540) 3.4% (21,220,281) 3.2% (22,848,462) 3.2% (24,470,535) 3.2%Otherstaffcost (9,282,857) 2.1% (9,781,306) 2.1% (11,635,564) 2.1% (11,149,424) 2.0% (12,902,688) 2.0% (13,663,947) 1.9% (14,429,128) 1.9%Temporarystaff (3,368,189) 0.8% (4,086,339) 0.9% (4,532,191) 0.8% (3,148,536) 0.6% (4,405,745) 0.7% (4,665,684) 0.6% (4,926,963) 0.6%Boardrenumeration (1,813,328) 0.4% (2,955,246) 0.6% (2,757,014) 0.5% (2,979,500) 0.5% (3,164,229) 0.5% (3,350,919) 0.5% (3,538,570) 0.5%

Less: Non-staff costs (127,676,427) 28.6% (130,640,708) 27.7% (152,072,495) 27.0% (150,303,924) 27.0% (176,922,443) 27.1% (204,674,528) 28.5% (218,816,272) 28.5%Premises (25,346,612) 5.7% (29,022,320) 6.1% (30,631,983) 5.4% (30,596,085) 5.5% (33,489,066) 5.1% (42,714,173) 5.9% (46,339,034) 6.0%Communication (8,227,548) 1.8% (6,479,524) 1.4% (9,186,325) 1.6% (8,460,950) 1.5% (8,985,529) 1.4% (9,515,675) 1.3% (10,048,553) 1.3%Otheroperatingcosts (16,080,421) 3.6% (18,154,974) 3.8% (18,870,509) 3.4% (19,620,506) 3.5% (29,100,860) 4.5% (34,486,705) 4.8% (37,306,715) 4.9%Publicrelations (7,809,492) 1.8% (9,821,910) 2.1% (10,945,053) 1.9% (12,446,004) 2.2% (13,217,656) 2.0% (13,997,498) 1.9% (14,781,358) 1.9%Travelcosts–international (8,020,183) 1.8% (9,710,395) 2.1% (10,849,286) 1.9% (10,206,746) 1.8% (10,839,564) 1.7% (11,479,098) 1.6% (12,121,928) 1.6%Travelcosts–domestic (9,816,365) 2.2% (12,289,515) 2.6% (13,998,854) 2.5% (14,519,114) 2.6% (15,419,299) 2.4% (16,329,038) 2.3% (17,243,464) 2.2%Travelcosts–land (3,488,014) 0.8% (2,997,813) 0.6% (3,964,104) 0.7% (3,346,878) 0.6% (3,554,384) 0.5% (3,764,093) 0.5% (3,974,882) 0.5%Repairsandmaintenance (8,129,751) 1.8% (9,705,396) 2.1% (10,237,726) 1.8% (16,364,204) 2.9% (11,776,785) 1.8% (7,656,895) 1.1% (8,083,737) 1.1%Professionalfees (23,160,490) 5.2% (21,168,726) 4.5% (25,697,906) 4.6% (21,608,531) 3.9% (24,706,255) 3.8% (26,163,924) 3.6% (27,629,104) 3.6%Financecosts (8,630,255) 1.9% (1,688,724) 0.4% (4,022,202) 0.7% (812,737) 0.1% (6,704,127) 1.0% (12,457,051) 1.7% (12,307,238) 1.6%Depreciation (8,967,296) 2.0% (9,601,411) 2.0% (13,668,547) 2.4% (12,322,171) 2.2% (19,128,919) 2.9% (26,110,378) 3.6% (28,980,260) 3.8%

Total expenses (445,920,065) 100.0% (471,919,205) 100.0% (563,258,426) 100.0% (557,546,732) 100.0% (653,312,820) 100.0% (717,952,401) 100.0% (766,797,934) 100.0%

Surplus/(Deficit) 17,087,780 66,458,044 10,072,205 41,900,489 (2,547,516) (14,588,526) (8,758,291)

9. Medium-Term Expenditure FrameworkFinancial performance


Budget on accrual basis

2017/18 Annual Performance

Plan

MTEF budget amount aligned to goals Total Five-year Strategy cost budget

aligned to MTEF2018/19 2019/20 2020/21 2021/22

Regulate aviation industry effectively and efficiently 345,188,016 374,184,365 396,514,591 418,719,408 442,167,695 1,976,774,076

Directorate 47,799,764 52,224,135 55,167,205 58,256,568 61,518,936 274,966,608

AviationSecurity 34,324,307 36,740,489 39,217,965 41,414,171 43,733,365 195,430,297

FlightOperations 166,619,149 179,453,400 191,024,636 201,722,016 213,018,449 951,837,651

AviationInfrastructure 35,304,140 37,802,648 40,365,912 42,626,403 45,013,482 201,112,586

LegalandCompliance 32,994,759 35,183,412 37,413,550 39,508,709 41,721,197 186,821,627

AccidentandIncidentInvestigations 18,501,192 19,819,082 21,172,018 22,357,651 23,609,680 105,459,623

FlightInspection 30,864,986 35,809,660 36,623,840 38,674,775 40,840,562 182,813,822

TrainingAdjustment (21,220,281) (22,848,462) (24,470,535) (25,840,885) (27,287,975) (121,668,139)

Increase access to regulatory services 8,928,699 9,602,218 10,303,088 10,880,061 11,489,344 51,203,410

DecentralisedAccess 8,928,699 9,602,218 10,303,088 10,880,061 11,489,344 51,203,410

Financial sustainability 72,244,997 85,186,206 92,463,943 97,641,924 103,109,871 450,646,941

NetFinance 72,244,997 85,186,206 92,463,943 97,641,924 103,109,871 450,646,941

Improve communication and stakeholder management 21,010,528 22,490,130 24,007,316 25,351,726 26,771,422 119,631,122

Communication 21,010,528 22,490,130 24,007,316 25,351,726 26,771,422 119,631,122

Significantly improve client service experience 910,000 963,690 1,017,657 1,074,645 1,134,826 5,100,818

Improvementofcustomerexperience 910,000 963,690 1,017,657 1,074,645 1,134,826 5,100,818

Drive organisational efficiency and effectiveness 180,723,677 199,045,473 213,857,617 225,833,644 238,480,328 1,057,940,739

ICT 42,724,671 51,317,317 56,152,022 59,296,535 62,617,141 272,107,686

HumanResources 93,175,794 99,891,016 106,792,884 112,773,286 119,088,590 531,721,570

Governance 7,608,125 8,105,821 8,612,177 9,094,459 9,603,749 43,024,330

Assurance 8,506,805 9,113,656 9,736,736 10,281,994 10,857,785 48,496,975

AviationDevelopmentandInternationalRelations 18,301,442 19,487,849 20,693,681 21,852,527 23,076,269 103,411,768

QualityAssuranceandSafetyRisk(QR) 10,406,841 11,129,813 11,870,117 12,534,843 13,236,794 59,178,408

Transformation 24,306,903 26,480,319 28,633,722 30,237,210 31,930,494 141,588,648

TransformationVerification 100,000 110,000 120,000 126,720 133,816 590,536

Bursaries 2,986,622 3,521,857 4,043,187 4,269,605 4,508,703 19,329,973

OrganisationalTraining 21,220,281 22,848,462 24,470,535 25,840,885 27,287,975 121,668,139

Total MTEF budget 653,312,820 717,952,401 766,797,934 809,738,618 855,083,981 3,802,885,753

MTEF strategy reconciliation

ThetablehighlightsorganisationalgoalsreconciledwiththefiveyearMTEFestimates.Forthe2017/18financialyearitwillcosttheSACAAR646milliontofunditsoperationsincludingthestrategicAPPelements,withR3.7billionbeingforecastedoverafiveyearperiod.Thefirsttwogoalsspeakdirectlytotheorganisationalmandatethatwillconstitute54%oftotalexpenditureoverthenextfiveyears.


ANNEXURE A


Annexure A: Second Draft App 2017/18 Amendments

Description Amendment RationaleOrganisationalOverview CriticalElementsintroductoryparagraph ToprovidecontextanddescriptionofCriticalElements

SWOTAnalysisIncreaseaccesstoRegulatory services

Old:IncreaseaccesstoRegulatoryservices

New:IncreaseaccesstoSACAAservices

Regulatoryservicesarealreadyavailableandaccessibleintheindustry.ThegoalistoincreasetheSACAAsatelliteofficetoachieveanationalfootprint.

Regulateaviationindustryeffectivelyandefficiently.

(Threats)Old:ICAOcontinuousmonitoringapproachmayissueaMIRatanytimeNew: ICAOcontinuousmonitoringapproachmayissueaSSCatanytime

TheMIRisalowerlevel,andhasnoconsequencesfortheorganisation.Itrequiresactionwithinspecifiedtimelinesandcanberectified.AnSSCissignificantandhasgraveconcernfortheorganisationadverselyaffectingtheentireindustry.SSCsmaybeidentifiedbyaUSOAPCMAactivityteamduringtheconductofaUSOAPCMAon-siteactivityorbyICAOatanystagethroughoutthecontinuousmonitoringprocess.

Regulateaviationindustryeffectivelyandefficiently.

(Threats)Old:AbsenceofaqualityassurancesystembySACAAmayresultinissuinglicencestoundeservingrecipients

New:AbsenceofaqualitycontrolsystembySACAAmayresultinissuinglicencestoundeservingrecipients

Thechallengesfacedresultfrominadequatequalitycontrol.Qualityassuranceevaluateswhetherqualitycontrolisworking.Inthiscase,thequalitycontrolisinadequate.

PESTLEAnalysisEconomicFactors Old:Zero%GDPforecast

New:LowGDPforecastTheGDPforecasthasbeenrevisedandSACAAiscurrentlybudgetingusingthe1.0%GDPforecast.

SocialFactors:

Growingmiddleclassandtheirdemandforairtravel

Old:therewillbeanincreaseinrecreationalaviationanddemandformoreregulations

New:Anticipatedincreaseintravelastheeconomicactivityisimproved

Recreationalaviationrequiressignificantinvestmentandfunds.Agrowingmiddleclasshaveotherpriorities.Agrowingmiddleclassstimulatetheeconomicactivitythroughspendingandsincethisisaparallelincreasewithurbanization,itimprovesthepopulation’spropensitytotravelandincreaseairtravelingeneral.

STRATEGYRegulatoryPrinciples None included before NewlydevelopedandBoardapprovedRegulatoryprinciples.Regulatoryprinciplestoguide

SACAAinitsworkandtolivebywhenmakingregulatoryoradministrativedecisions.


Description Amendment RationaleAPP2017/18TargetsStrategic Objective: Achieve a step-change in regulating Aviation Safety and Security

Additional annual target:

Develop Corrective Action Plan (CAP)

TheimportantaspectoftheauditforSouthAfricaisfortheStatetomaintainhighlevelsofcomplianceandensurethataSignificantSafetyConcern(SSC)isavoided.Additionally,oncethefinalreporthasbeenissued,theStateisrequiretodevelopaCAPtocloseallgaps.

ReviseandimplementCFARPandaligntointernationalbestpractice

2017/18 Annual target Old: Achieveaminimumof33%ofC-FARPdeliverablesandreportquarterly

New:Achieveaminimumcumulative90%ofCFARPannualdeliverablesandreportquarterly

Theannualtargetandindicatormeasurementswereamendedfrom33%to90%annualdeliverablestobeachieved.

SurveillanceandauditsconductedaccordingtoPlan

All2017/18MSPtargetsrevised TheMSPtargetsarerevisedasaresultofthenewSafetyOversightPolicyeffective01January2017

Organisationalsustainability New Strategic Objective:


2017/18 Target: DevelopandimplementanannualCostContainmentPlanasperNationalTreasuryInstruction

NewtargetasperNationalTreasuryinstructiontohavecostcontainmenttargetsintheAPP.

SocialandRelationship Old:ImplementStakeholderManagementPlanandachieve85%ofannualtargets

New:ImplementStakeholderManagementPlanandachieve90%ofannualtargets

Increasedthe(%)percentageofsuccessfulimplementationfrom85%to90%

Improvecustomerservices Old:Reviewandimplementannualprogramtoinculcateacustomercentricculture

New:Embedcustomer-centriccultureasperchangemanagementprogram.ProduceAnnualIndependentAssessmentReport

Thechangemanagementprogrammustbeaffordedtimetobeembeddedintheorganisationasnewbehaviourtakestimetoform.Inthelastquarteranindependentassessmentwillbeconductedtoascertaincustomerservicelevelprogressintheorganisationfrompreviousbaselinewhichwillbesetbeforethebeginningofchangemanagementprogramme.

HumanCapital Old:DevelopaBBBEEstrategytoalignwithnewTransportSectorcodes

New:DevelopBBBEEPlanalignedtothenewTransportPublicSectorcodesforapprovalbyEXCO

SACAAcurrentlyhasBBBEEplanwhichmustberevisedtoaligntonewsectorcodes.


2017/18 Quarterly Target Amendments

Description Amendment RationaleAchieveastep-changeinregulatingAviationSafetyandSecurity

NewAnnualtargetDevelopCorrectiveActionPlan(CAP)

Quarterlytargetsbeginin3rdquarterwhenfinalreportwillbepublished.CAPwillbedevelopedinthirdquarterandimplementedfrom4thquarter.

ReviseandimplementCFARPandaligntointernationalbestpractice

1st quarter target:Old:Achieve25%ofC-FARPPlandeliverables.ReportprogressatEXCO

New:ReviseCFARPandsolicitEXCOapproval

TheCFARPrequiresrevisiontoalignwithinternationalbestpractice.


3rd quarter target:Old:ImplementapprovedframeworkaccordingtomilestonesandreporttoEXCO.

New:ReviseinitialdraftwithindustryinputsanddevelopfinalframeworkforEXCOapproval

EXCOisapprovingtheframeworkinorderfortheteamtogatherindustryinput.Toperformconsultationsandgatherindustryinputwilltakeatleastthreemonths(bestpractices).Itisnotrealistictoimplementtheapprovedframeworkuntilconsultationhasbeenconcluded.Theimplementationcancommencein2018/19.


4th quarter target:Old: Implement approved framework according to milestones and report to EXCO.

New: Revise initial draft with industry inputs and develop final framework for EXCO approval

EXCO is approving the framework in order for the team to gather industry input. To perform consultations and gather industry input will take at least three months (best practices). It is not realistic to implement the approved framework until consultation has been concluded. The implementation can commence in 2018/19.

MasterSurveillancePlan All quarterly targets revised AllquarterlytargetsrevisedinalignmentwithnewapprovedSafetyOversightPolicy


All quarter targets revised Revisionbasedonthesourcingofaserviceprovidertodevelopabusinesscasefordecentralizationproject.

FinancialSustainability Old:DevelopandimplementEXCOapprovedfinancialmodelrolloutplan

New:Implementrevisedfundingmodelandachieve95%ofdeliverables

ThetargetwasrevisedtoensureSMARTtargetsetting

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Physical Address: Ikhaya Lokundiza 1, 16 Treur Close,

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Postal Address: Private Bag X 73, Halfway House, 1685

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