ATNS Strategy 06/07 Presented to the Parliamentary Portfolio Committee Ms Wrenelle Stander

1. ATNS Strategy 06/07 Presented to the Parliamentary Portfolio Committee Ms Wrenelle Stander Chief Executive Officer 15 March 2006

2. Vision, mission, imperatives • Vision • Be the preferred supplier of air traffic, navigational • and associated services to the African continent and • Surrounding regions. • Mission • To provide safe, orderly, expeditious and efficient air • traffic, navigational and associated services. • Strategic imperatives • Continuous improvement of our safety performance • Become an employer of choice • Become a performance based service provider • Maintain long term financial sustainability • Position ATNS to secure a continued role in the • changing global air traffic management system

3. Continuous improvement of our safety performance(Peter Marais - Executive Manager ATM/cns)

4. Corporate Management ATCO’s Support Staff Engineering Staff Communications Maintenance Surveillance Information Operating Navaids People ATS SYSTEM Technology Procedures Desired endstate: Continuous safety performance

5. ATNS Safety Management System Safety Monitoring Continuous improvement of safety performance Safety Policy Safety Assessment Safety Auditing Safety Promotion Supporting organisational requirements Safety Culture Management Philosophy

6. Becoming an employer of choice Dumisani Majozi Executive Manager Strategic Human Resources

7. Desired endstate Awareness of external factors Develop ATNS Culture Morale & Motivation Stakeholders Energy Pride Mobility of skill Stretch Passion Accountability Resilience Legislation Lean organisation Bottom Line Driven Leadership Empowerment Commitment High Performance Transformation War for Talent Recruitment Employee Development HR Systems Employer of Choice Performance Management Reward & Recognition Employee Relations Retention

8. Retaining our people our biggest strategic challenge • Priority to: • Leadership development • Revamped remuneration policy • Principles: • Salary structure (all inclusive) • Position relative to market • Post and during employment benefits • Correction of anomalies • Revamped performance management system • Clear performance targets with linked, regular • incentives • Honest, holistic performance management

9. Current and future initiatives • Revamped recruitment • Revamp recruitment methods and offering • Increased career awareness • Employment Equity • Hase se Bokhutlo • Development of a brand and culture of • ATNS’ers • Revamped Training academy • Course development unit • Systems and equipment • Facilities • Capacity

10. Service Delivery Strategy (Boni Dibate – Executive Manager Service Delivery)

11. Desired end-state • Safe and secure use of airspace • Optimal use of airspace • Appropriate staffing mix • Capacity ahead of demand • Meet reasonable customer requirements with industry norms

12. Safety • Reduce the safety ratio to 2.5 incidents per • 100 000 movements • Implement the company safety management system • Improve capacity to analyse all factors • contributing to high incident rate • Continue our benchmarking with global partners • Implement ongoing safety campaigns • Promote and facilitate a performance culture

13. Performance driven service delivery • Optimum utilization of available airspace • Increase runway throughput (FAJS 72, FACT 40, FADN 36) • Staff planning and empowerment programme • Implement capex Plan in line with strategy • Ensure system capability and availability • Meet client needs and manage expectations where necessary • Manage any service delivery risks proactively

14. Maintaining long term financial sustainability (Mohammed Mayat - Executive Manager Finance)

15. Desired end-state • Financial health • Regulatory compliance • - Permission • - Statutory compliance • Sound administrative systems

16. Position ATNS to secure a continued role in the changing global air traffic management system: Africa strategy (Joe Musandiwa)

17. Desired end state • Safer corridors • Reduced costs • Implementation of “AFI Plan”

18. ..current ATNS initiatives aim to: • Establish ATNS’s people as a world class, service orientated air navigation service provider; • Enable regional service provision; • Achieve increases in capacity and safety through the introduction of new technologies e.g satellite; and • Develop people in aviation management and the technical skills.

19. ..our vision – to connect Cape to Cairo - how are we doing?

20. ..Southern and West African ATCC’s interconnected SADC VSAT Interconnects 13 SADC air traffic control centres, as well as Burundi and Rwanda To be upgraded to meet existing future demands: GNSS, VHF and ATN Facilitates 2 million data calls per annum AFISNET Interconnected with ASECNA, Afisnet network – connecting SADC with 16 West African states

21. ..connecting North African states – shortly NAFISAT Satellite network to be installed in North East Africa Connecting Djibouti, Egypt, Ethiopia, Kenya, Saudi Arabia, Somalia, Sudan, Tanzania, Uganda and Yemen IATA and ATNS jointly selected as the service provider Equipment acquisition for SADC VSATII and Nafisat systems being done jointly Tenders issues

22. ..and the Middle East – not soon MIDSAT Feasibility study complete No further plans at this time

23. .. introduction of new technologies GNSS • Design of RNAV (GNSS) procedures • IATA project -37 airports: SADC states, Cape Verde, Kenya, Uganda) • UN project - 10 airports - DRC • Implementation of RNAV (GNSS) procedures • Project GROMMET –evaluation and validation of RNAV (GNSS) procedures • Undertaking SBAS trials using EGNOS – validation of SBAS augmentation • FAA project - WGS 84 surveys

24. ..introduction of new technologies • RVSM • Introduction of RVSM • Functional hazard assessment completed • Pre-implementation safety case underway - being driven by RVSM implementation task team (includes ATNS) • AFI Regional Monitoring Agency (ARMA) – hosted by ATNS • Contracted out the height monitoring service – Arinc

25. ATNS Budget 2006/07 Presented to the Parliamentary Portfolio Committee Ms Agnes Mlambo Management Accountant 15 March 2006

26. Assumptions

27. Revenue 06/07

28. Revenue Continue …

29. Tariff Revenue • Over recovery in the current financial year. • 0% Increase in tariff revenue 06/07. • Zero Rating < 5001kg except JIA 06/07. • 4.8% Volume Growth.

30. Technical Maintenance Revenue • R1.6m contract with ACSA for the maintenance of their ILS. • R0.4m – spares. • New ILS have been purchased by ACSA. • Less spares will be required.

31. VSAT Revenue • Agreement – cost incurred is recovered plus 10% commission. • Over recovery in the current year. • 3.5% movement growth in 06/07. • $1 tariff reduction in short, medium and long distance.

32. RVSM • ATNS is the regional monitoring agency for Africa. • Responsible for conducting and managing height monitoring trials. • Airlines paid a monthly fee to cover the implementation cost. Ended Oct 05. • Future operational cost to be recovered through tariff revenue. • R1m Collision Risk Assessment cost will be recovered from IATA. • Cost (R1m) is included in professional fees.

33. Sundry Income • Bloemfontein and East London will provide a 24 hour service. • In the current year services after normal working hours was provided at a fee. • The fee received is approx. R 700k. • Hence the negative 28.8% variance.

34. Expenses 06/07

35. Salaries and Related Cost

36. Staff Compliment

37. ATM/cns – Staff Compliment • Building additional competencies to improve: • Research • Planning • Oversight of the cns environment

38. ATA – Staff Compliment • Optimize utilization of training tools. • Review and update training modules. • Contribute in increasing the number of qualified ATC’s for operational requirements.

39. Service Delivery • Additional air traffic service staff. • Additional intake of trainees. • Supply of air traffic service staff 10% ahead of demand. • New positions have been created to improve performance.

40. Telecommunications • 7% increase - Additional staff. • R2.6m – Satellite transmission – NAFISAT and VSAT II. • R0.6m – WAN upgrade to cater for the increase in traffic.

41. Contract Services • Average 6% increase for cleaning, gardening, freight and contract staff. • R2m- Height monitoring. • R2.4m ATDI training provided by IATA (R2.8m in revenue).

42. Marketing

43. Average ROCE Current Permission

44. Statistics

45. ATNS Indicators for 2006/2007 • Capex - R225.8m • Opex - R416.9 • BEE Targets - Capex (35% of discretionary spend) - Opex (35% of discretionary spend) • Social responsibility (R100 000) • Training and Development - R21.1m including internal training • Job Creation (R4.4m) - Bursaries : 40 ATC bursaries - Learnership: 6 Engineering learnerships • Employment Equity Targets 49% Black and 51% White

46. ATNS Indicators for 2006/2007