Civil Aviation Authority Annual Report as presented to the Parliamentary Portfolio Committee on Transport 2 November 2005 Cape Town

Index Chairman’s report CEO’s report Corporate Governance Operational Review: Air Safety Operations Air Safety Infrastructure Aviation Security Occurrence Investigation Corporate Services Organizational Challenges Annual Financial Statements at 31 March 2005

Chairman’s Report The CAA was established as an independent regulatory authority to promote, regulate and enforce civil aviation safety and security in SA; More emphasis was placed during 2005 on enhancing and increasing operational efficiency in order to improve oversight activities coupled with an ongoing programme of capacity building and skills deepening; Through harmonization and co-operation in the region, the CAA can contribute to achieving the universal goal of safer skies in AFI region and the rest of the world; CAA has worked hard to encourage voluntary compliance from the industry and will continue to show transparency, accountability and responsibility; The CAA is continuously searching for best practices that can be implemented to improve operational efficiency and service delivery; A new Board was appointed on 1 May 2005.

CEO’s Report Increase in oversight activities and staff complement; Industry important partner in helping CAA to achieve mandate, need to manage the relationships to produce effective partnerships in future; The industry functions well within a well-regulated environment and has matured to conform to standards set by ICAO and with most of CARS and CATS published by CAA; As a regulatory authority, we want to avoid reaching a state of complacency by continually looking for best practices; Wish to thank outgoing Board for strategic leadership and welcome new Board.

Corporate Governance Public Finance Management Act Performance Agreement with Department of Transport Board of Directors Finance and Audit Committee Human Resource and Remuneration Committee Safety Committee

Air Safety Operations Flight Operations surveillance activities increased by 20%; Airworthiness division continued to liaise with the industry on airworthiness issues; Airworthiness surveillance activities increased by more than 60%; The Certification division amended Manufacturing Regulations to meet global standards; The persistent backlog pertaining to the certification of unfinalized aircraft modifications was substantially reduced.

Air Safety Operations (continued) A total of 3 728 aviation personnel licenses were issued; In an ongoing effort to improve the levels of customer service, the turnaround time for the issuing of licenses was reduced from 1 hour to 30 minutes; An audit was done on foreign and local CPL licenses to verify compliance with examination and license requirements; An external medical appeal panel was established to research appeal cases and advise the Commissioner. This resulted in the finalization of appeal cases that had, in some instances, been outstanding for over a year; The CAA sponsored the 52nd International Conference for Aviation and Space Medicine which was held at Sun City.

Air Safety Infrastructure All 136 licensed aerodromes were inspected; Emergency Management Systems were established at 8 airports; Each of the 19 Air Traffic Service Units was inspected twice during the year; 1 354 incident reports were processed and forwarded to the Occurrence Investigations Department for further action; All Aeronautical Information was published as scheduled; 156 flight inspections were performed in both SA and the SADC region.

Aviation Security The appointment of the Chief of Civil Aviation Security by the Minister of Transport was finalised, as required by the Civil Aviation Safety Regulations of 1981; The National Aviation Safety / Security Plan (NASP) was approved by the Minister of Transport and promulgated in November 2004; All oversight activities as planned for the year were successfully completed and there was constant liaison and educational campaigns with all stakeholders on aviation security issues; The CAA is now represented in the African Civil Aviation Commission (AFCAC) in the AVSEC Panel of Auditors.

Occurrence Investigations 217 accident reports were completed and 197 safety recommendations were generated from these reports and disseminated to the industry; 1 545 incidents were received and follow-ups were made on all serious accidents; There has been an increase in reported incidents over the past 10 years; 34 Safety Promotion Workshops and Presentations were conducted with general aviation, particularly with the aero clubs; Through CAHRS, a total of 104 reports were received and 54 of these were investigated and closed; Aviation awareness programmes were introduced and implemented to expose PDIs to careers in aviation.

Corporate Services In order to fast track employment equity within the CAA, a learnership programme was introduced in the form of trainee employees and bursary students; The CAA was a proud recipient of an award from the Department of Trade and Industry for promoting and creating employment; A new financial system was implemented on 1 April 2004 that ensured the overall improvement in the internal control environment.

Corporate Services (continued) Amendments were made to the Aircraft Passenger Safety Charge Regulations which resulted in a major improvement in the collection of this charge on scheduled departing passengers; A helpdesk system was implemented to better monitor, control, evaluate and improve the services of the IT division; The IT division embarked on a major security project in order to improve and effectively manage the systems and controls in the IT environment; Over 200 desktops, laptops, printers and scanners were donated to SAGDA, which is a non-profit organization.

Corporate Services (continued) Turnaround time in terms of application processing was reduced from 2 hours to 45 minutes, a vast improvement which has been greatly appreciated by clients; The CAA’s total expenditure in terms of percentage on BEE for the past financial year amounted to 68.9% .

Organizational Challenges Improvement of relations with the aviation industry; Skills deepening of staff to enhance the safety oversight functions; To increase oversight functions to match industry growth; To facilitate the development and transformation of the industry; To reduce the accident and incident rate in SA; To speed up the finalization of key regulations; To ensure industry readiness for 2010.

Civil Aviation Authority Annual Financial Statements at 31 March 2005 2 November 2005 Cape Town

INCOME STATEMENT AT 31 MARCH 2005

INCOME STATEMENT AT 31 MARCH 2005

ANALYSIS OF REVENUE: 1998 - 2005

ANALYSIS OF REVENUE 31 MARCH 2005 2004 Aircraft Passenger Safety Charge 80, 50 m 74,89 m User Fees 36,37 m 31,07 m Accidents & Incidents 6,02 m 5,68 m Fuel Levy 2,17 m 4,66 m Sundry 0,33 m 0,07 m Total 125,47 m 116, 40 m Other Income received during 2005 (R2,937 m): - SARS refund related to 2004 dispute - Bad debts recovered

ANALYSIS OF REVENUE (Continued) 2005 2004 2003 Aircraft Passenger Safety Charge 6.14 per scheduled departing passenger 3.51 per scheduled departing passenger User Fees Second Increase (average = 11 %) First Increase (average = 10 %) No increase Fuel Levy 1.32 c per litre Note: - No increases in User Fees and Fuel Levies from 1 April 2005 - Reduction in Passenger Safety Charge, 1 Dec 2005 from R6.14 to R6

ANALYSIS OF REVENUE (Continued) Major growth areas: User Fees: SA Registered Pilots increase on average with 500 per year Registered aircraft increase on average with 445 per year Aircraft Maintenance Organizations increase on average with 35 per year Mortgage transactions increase on average with 130 per year Passenger Charge: Passenger volumes increased from anticipated growth of 5 % to 8 % between 2004 and 2005 2002 2003 2004 2005 Passenger Volumes 10,115 m 10,452 m 12,197 m 13,120 m % Growth 4 % 17 % 8 %

INCOME STATEMENT AT 31 MARCH 2005

STAFF PROFILE AT 31 MARCH 2005 Total Staff = 273

STAFF PROFILE: 1998 - 2005

GENDER PROFILE: 1998 - 2005

CHANGES IN STAFF PROFILE: 1998 - 2005

TRAINING AND DEVELOPMENT: 2005 Occupational Group Average cost per person Number of Employees Trained Total Costs % Management R28 353 13 R 368 590 16% Professional and Technical R27 347 66 R1,804 934 80% Support Staff R2 767 30 R 83 020 4% Total 109 R2,256,544

BALANCE SHEET AT 31 MARCH 2005

BALANCE SHEET AT 31 MARCH 2005

NON-CURRENT ASSETS: EQUIPMENT

BALANCE SHEET AT 31 MARCH 2005

POST BALANCE SHEET EVENTS Deregistered for VAT as from 1 April 2005: - Expenses will increase with R7,063 m due to Input VAT not claimable; - Decrease in Safety Charge from R7 to R6 from 1 Dec 05: 1,148 passengers per month x 0.14 cents loss over 4 months = R0.643 m (2006 financial year) R2,025 m (2007 financial year)

STATEMENT OF CHANGES IN EQUITY

CASH FLOW STATEMENT AT 31 MARCH 2005

CASH FLOW STATEMENT AT 31 MARCH 2005

NOTES TO THE CASH FLOW STATEMENT AT 31 MARCH 2005

NOTES TO THE CASH FLOW STATEMENT AT 31 MARCH 2005

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