Airservices Australia Quarterly Report to Industry December 2008

Transcription

1 Airservices Australia Quarterly Report to Industry December 2008

2 Airservices Australia Quarterly Report to Industry December 2008

3 Introduction This second quarterly report continues our commitment to report our performance and future activities to our customers and industry partners. Key themes of the report: Collective agreement negotiations ATC performance Environmental initiatives Financial performance Workforce planning and training Major projects Services to regional and general aviation customers. Key events in 2009: March Avalon International Airshow March ATC Global, Amsterdam June Waypoint, Canberra June Civil Air Navigation Services Organisation AGM, San Diego, USA 3-6 August Aviation Outlook Summit, Sydney 30 Septemper 2 October Regional Aviation Association of Australia Convention, Coolum 6-8 October Safe Skies Conference, Canberra November Australian Airports Association Convention, Sydney Quarterly Report to Industry December

4 Collective agreement negotiations Overview Airservices Australia is currently negotiating collective agreements with our unions and staff. Air traffic controllers Unfortunately, the negotiations with Civil Air, representing our air traffic control staff, have not progressed. The new collective agreements cover our non-management staff in three core areas of business activity: Corporate and Technical Assets Services, Air Traffic Control and Aviation Rescue and Fire Fighting. We are subject to the Australian Government Employment Bargaining Framework and Supporting Guidance in negotiations. The framework includes negotiation guidelines for workplace relations, remuneration, funding and staffing policy. Our aim is to reach an agreement that provides a fair and reasonable outcome in wages and conditions, with salary increases being offered on the basis of productivity improvements. As we earn our revenue from the aviation industry, the current and forecast cost pressures on the industry will be a key consideration in the negotiations. On a positive note, we have reached in-principle agreement with the United Firefighters Union and this collective agreement will be finalised and submitted to our fire fighting staff shortly. The Board and management are steadfast in the belief that now is the time to make a change for the better. Civil Air has given no substantive ground on the two fundamental issues of unlimited sick leave and restrictive rostering. These two issues contribute significantly to making the current system highly susceptible to the ongoing campaign of covert industrial action we have seen in recent months. In addition the difficulty of delivering a 24/7 service is compounded by an inherited system of 32 separate rostering committees, one for each of our current sector groups, and 144 separate sector-specific endorsements. Our ATC reform program will result in one rostering function and just 7 endorsements in three operational service delivery environments. Unless we resolve this now, sick leave and rostering will continue to manifest itself as a choke hold on achieving real improvement and efficiency in the delivery of air traffic control services to our customers. Much of the public commentary on service interruptions has focused on the union claim about staff shortages. This is not correct. Overall we have about the right number of air traffic controllers they are however not efficiently deployed. Separately, we have recognised the need to continue with our increased training in order to meet the problem of an ageing workforce and action to address this is now well in hand. Just prior to Christmas, the Australian Industrial Relations Commission handed down a determination on an application by Airservices to clarify some issues related to the ability to schedule reasonable overtime. This determination will assist our air traffic managers to better manage short notice sick leave and some incidences of refusal to cover work rosters which have resulted in service interruptions. We are committed to seeking a resolution of a collective agreement with our air traffic controllers while at the same time seeking long overdue reform of the air traffic group and we will continue to provide regular updates to our airline and airport stakeholders. 2 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

5 ATC performance Collective Agreement Collective Agreement Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Figure 1 Number of service interruptions by month The performance of our ATC group has been impacted throughout 2008 by service interruptions which are clearly linked to the collective agreement negotiations. Airservices regrets the disruptions to our airline customers and the travelling public. ATC workforce facts As an average across the group, air traffic controllers are taking annual leave, working on average relatively modest amounts of overtime and continuing to take about the same number of sick days as in previous years, as the following indicates: Airservices Australia has a national operational requirement of 893 air traffic controllers and at the end of December there were 935 operational and non-operational controllers employed. There are currently 56 air traffic trainees in the Airservices Learning Academy with more than 100 to be trained in The average air traffic controller was paid $125,000 in 2008, and this figure does not include payments for overtime and allowances. From October 2007 to the end of December 2008 there have been over 200 service interruptions. The average number of unplanned absence days per air traffic controller is 15 per annum. The average number of overtime shifts worked by the average air traffic controller is 1.1 shifts per month (8 hours). Average annualised leave taken per air traffic controller is 5.3 weeks. During air traffic controllers left our organisation to work overseas while 25 experienced controllers, the majority of whom are ex-pats returning to Australia, have joined us. 4 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

6 Environment initiatives ASPIRE As part of establishing a baseline for air traffic management performance and carbon emissions, Asia and South Pacific Initiative to Reduce Emissions (ASPIRE) partners have now undertaken a series of three flights to demonstrate and measure gate-to-gate emissions and fuel savings by taking maximum advantage of existing efficiency procedures. The first demonstration flight took place during September and was coordinated by Airways New Zealand and Air New Zealand with assistance from the United States Federal Aviation Administration (FAA). Airservices managed the second flight and worked with Qantas and the FAA to minimise fuel burn and emissions from the Qantas A380 on its inaugural return flight from Los Angeles to Melbourne. Every phase of the flight was monitored, demonstrating the capability of air navigation services and airlines to use fuel optimisation initiatives to reduce the impact of aviation in the Asia and South Pacific region. The third demonstration flight was undertaken on 14 November by United Airlines and the FAA between Sydney and San Francisco by a Boeing aircraft. Airservices managed the first phase of the flight from departure through Australian airspace. Flight data is now being processed and analysed from all three ASPIRE flights. In addition to ongoing development work on the initiative, Airservices will report formally on progress and outcomes in an ASPIRE annual report to be produced in the first half of WEBTRAK Airservices efficiency agenda ALOFT The Air Traffic Management Long range Optimal Flow Tool (ALOFT) aims to reduce fuel burn for early morning arrivals into Sydney by adjusting the cruising speeds of aircraft en-route. With the change to daylight saving and the introduction of the new scheduling season the number of flights that are scheduled to arrive in Sydney between 0600 and 0700 decreases to an average of 15. Therefore, the benefits of ALOFT are not substantial and it is not run. Delays were monitored for a period of six weeks after the change over to ensure that what historically is the case actually occurred. We will resume using ALOFT when daylight saving ceases. The table below shows the average delay absorbed during the non-daylight saving year: Figure 2 ALOFT performance KG fuel saved = 901,950 Savings = $1,064,301 Emission = 2,705,850 CO2 Legend 1 min of day = 50kg 1 min of delay = $59 1 kg fuel = 3 kg CO In December, Airservices and the Federal Minister for Infrastructure, Transport, Regional Development and Local Government launched a new public information website called Webtrak. The site provides residents living around eight of the nation s busiest airports access to near real time information of aircraft movements and the noise emissions of each aircraft April Delay identified May June July Aug Sept-Oct Overall Delay absorbed Communities around these airports can also see the proximity of flights to their homes via the new section on Airservices website WebTrak features flight path information from incoming and outgoing aircraft as well as the noise data captured from monitors strategically located in the communities surrounding the airports. WebTrak is part of the world s largest, nationwide integrated Noise and Flight Path Monitoring System which represents an investment of $20 million for Airservices. 6 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

7 Terminal area review program The Terminal Area Forum was formed in 2007 with the aim to take a clean sheet approach to terminal area design. The forum involves Airservices specialists working with airline representatives to improve operations in and around terminal airspace. The renamed National Terminal Area Forum met in Sydney in December 2008 where it was agreed that the following issues will be focused on in 2009: documentation amendment to include newly introduced speed profile changes endorsed by the larger domestic carriers modelling Sydney crossing height requirement together with a proposal for a long term approach to the design of terminal airspace a review of route design associated with consolidation of terrestrial NAVAIDs a trial of the enhanced use of Maestro safety case preparation to amend wake turbulence standards to align with ICAO preparation for the implementation of stage one of the integrated data exchange (InDex), a program designed to improve collaborative decision-making with our airline customers. Western Australia Route Review Project (WARRP) For the past several years we have been working with industry to review the Western Australian route structure and associated airspace to increase safety and efficiency by implementing a fixed route structure and optimising use of modern aircraft capabilities. With the introduction of new route procedures and over 50 airspace changes, the project has delivered more efficient departure and arrival procedures from Perth airport, which has experienced significant growth in recent years related to fly in/fly out mining industry contracts. Sydney s Runway End Safety Area project update Works on Sydney Airport Corporation Limited s (SACL) Runway End Safety Area (RESA) project are on schedule with several key milestones already achieved. Project works commenced on 15 October with the cessation of aircraft operations, the installation of a temporary jet blast barrier and the start of piling for the new perimeter road structure and earthworks at the northern end of the south western suburbs ocean outfall sewer which runs through the airport. Airservices in conjunction with SACL has developed a number of traffic management options to assist in reducing the impact of the works on community and industry. These include the introduction of Mode 15 as a noise sharing option during off-peak periods when conditions permit: Runway 34L arrivals and long haul jet departures; and Runway 34R departures except non-jet to the west, northwest and south. In the period 23 October to 30 November, Mode 15 was used for 64.8 hours out of a possible 629 hours (excludes curfew period), or 10.3%. It was used on 23 days of the available 39. Movements during Mode 15 periods were 2,239, which is 7.0% of the total non-curfew movements of 31,983. An important safety issue is the cross-wind component while using parallel runways during certain days. The Airservices National Operations Centre, in conjunction with the Bureau of Meteorology, has introduced a new service advising airlines of expected cross-wind conditions at Sydney. The changes were implemented on 20 November and feedback from industry has been positive. 8 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

8 Financial performance Capital expenditure Key developments in the quarter include: ADS-B Program: Five new ADS-B ground stations were commissioned in Western Australia and are now providing services to ADS-B equipped aircraft. This brings the number of ADS-B stations at the end of December to 16 with the remainder of the initial program of 28 to be rolled out during Another 15 stations, including one on Lord Howe Island, have recently been added to the installation program. The number of aircraft approved to receive the services continues to grow, with more than 670 aircraft now involved. Qantas new airbus A380 recently joined the program. Navigational Aid Replacement Project (NAVEX): Non Directional Beacons at Kununurra and Kowanyama, and the Doppler VHF Omni Range (DVOR) at Rockhampton and Gove, were commissioned in August. The program is ongoing. Instrument Landing System (ILS) Replacement: The Sydney Runway 25 Distance Measuring Equipment (DME) and the Sydney Runway 07 ILS were commissioned in August, ahead of schedule and budget. This now completes the ILS program which has involved the replacement of 14 ILS installations throughout Australia during the past several years. The new Mount Somerville radar at Coolangatta commenced operations prior to Christmas as part of the AMSTARP project to replace 11 primary and secondary radars at major airports. Recently the Darwin SSR radar was added to the program and is expected to be installed before the 2009 wet season. As at the end of December 2008 capital expenditure year to date was $72m. Long Term Pricing Agreement (LTPA) Airservices Australia s current pricing arrangements were established during 2004 and 2005, setting the level of prices for each service through to the end of December Under the current Long Term Pricing Agreement (LTPA), the last price change was on 1 July This was a decrease in enroute prices and some small increases in terminal navigation and aviation rescue and fire fighting (ARFF) charges. These changes were the last in the life of the existing agreement. Our prices are now effectively held constant for 18 months. As we announced at our Waypoint Conference in 2008, we rebated $26.3m back to industry ($24.4m due to continued high levels of activity and $1.9m for ARFF services affected by the deferral of regulatory changes). This means that, to date, over the life of the agreement we will have rebated back to industry approximately $50m. The current prices and the price path were established after lengthy industry consultation and review by the Australian Competition and Consumer Commission (ACCC). The new Long Term Pricing Agreement will establish a price path for enroute, terminal navigation and aviation rescue and fire fighting services that will be fixed through to As the first stage of the process, we have written to all of our customers, airports and State and Federal government departments seeking feedback on our Price Structure Options Discussion Paper. We have also held public consultation forums in capital cities, Cairns, Singapore and the Gulf. Formal submissions on the discussion paper have been received from a range of airlines, airport operators, and industry groups. Initial feedback has included positive recognition of the early commencement of the process and endorsement of Airservices consultative approach to issues raised by the plan. Airservices will continue to work closely with all relevant stakeholders as we develop a draft pricing proposal. 10 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

9 Workforce planning and training For the past three years Airservices has developed detailed enterprise-wide workforce plans which have clearly identified our challenges in recruiting and training a new generation of employees and reinforced the importance of an organisation-wide training program. Air Traffic Control (ATC) As at 30 December 2008 Airservices had 935 Air Traffic Controllers and this is expected to further improve in the next few months with the increase of trainees currently in the Airservices Learning Academy. There are a number of ab initio and experienced courses involving 100 trainees scheduled throughout As part of the ATC Reform program we have made more progress toward improving rostering and staff deployment. Aviation Rescue & Fire Fighting (ARFF) During Q3 2008, 20 new fire service recruits graduated while 12 fire fighters were awarded their Diploma in Public Safety making them eligible for future Fire Commander positions. More than 70 additional recruits are expected to complete their training and graduate during During this quarter management accountability for ARFF training was transferred from Brisbane to the Airservices Learning Academy, situated in Melbourne. The change also involved a $7m investment in a new hot-fire training facility at the Country Fire Authority training grounds at Fiskville, Victoria. Technical and Asset Services (TAS) Regional Technical Training Program A new program has been established to train the skilled workers needed to maintain our national airways system and address the issue of an ageing technical workforce. We are likely to see a significant number of retirements from this area of our business in coming years. Major projects TINR The Telecommunications Infrastructure Network Replacement (TINR) Project is a complex, Australia-wide program to modernise our communications backbone and provide greater capability for our airground-air, surveillance and inter-centre communications services used for Air Traffic Management and for corporate data systems. The scope of works includes design, detailed planning, integration, testing and transition to service at some 238 individual locations around the country. The TINR project will see much of Airservices current communications infrastructure replaced with modern digital communications equipment that can support newer technologies such as ADS-B. The project has experienced a number of delays but is now firmly on track. A Critical Design Review (CDR) of the proposed System Design Specification (SDS) for the network that is to be built was recently completed. The next significant phase of the project, Sub-System Acceptance Testing (SSAT), is due to start in January Pre-positioning preparations are underway in 83 sites, along with roll out of the terrestrial component of the network. Many of the new satellite dish installations for the satellite component of the network are also underway. The TINR pilot bearer network will be complete by March Completion of roll out is targeted ahead of April National rollout of new ARFF trucks In November three new Mk8 Rosenbauer fire trucks in new high visibility colours were commissioned at Canberra International Airport. A Mk8 carries approximately 10, 000 litres of water and foam and can empty its tank in less than two minutes. The commissioning is part of a nationwide roll out of 76 new firefighting vehicles to be introduced into Australia s airports in the next five years. Four of the new Mk8s are already in operation in Darwin. The $2.8 million program based in Wagga Wagga in regional NSW will deliver trade-specific curriculum and training in a strategic partnership between Airservices, Wagga Wagga City Council, the Regional Development Board and the Riverina Institute of TAFE. When the program is fully functional, over 50 students each year will be trained for the next five years. They will gain hands on experience in electronics, diploma qualifications in radio communications and the maintenance of radars and other ground based navigation aids and guaranteed employment with the organisation upon the successful completion of their studies. 12 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

10 ATLAS Transition to ADS-B and GNSS A Joint Consultation Paper was issued in July 2007 which detailed how the transition to satellite technology for navigation and surveillance in Australia might be implemented. The paper included proposed transition timeframes, future coverage, funding arrangements (including a proposed subsidy for light aircraft owners) and regulatory changes. Since its release and following stakeholder responses, Airservices, CASA and the Department of Infrastructure have been working closely with industry to refine the concept. Good progress has been made with many technical issues resolved. However, further discussion with stakeholders identified a number of significant issues that were unable to be resolved, especially within the increasingly tight timeframes required for either radar replacement or equipping the wider Australian fleet with ADS-B avionics. These issues, considered in detail, included the increasing scope (and costs) associated with the cross-industry subsidy for avionics; potential taxation implications for subsidy recipients; uncertainty created by global financial turmoil; and the effect on Airservices dividend and associated budgetary considerations of the Federal Government. Airservices will proceed with the replacement of enroute radars and navaids necessary to ensure the integrity of Australia s air traffic control system and CASA will be moving shortly to implement a regulatory mandate for ADS-B in upper airspace from December The decision to proceed with the more gradual introduction of satellite-based technology is more closely aligned with developments in North America and Europe. Separately, Airservices will be seeking to increase voluntary equipage with ADS-B avionics through a number of initiatives to be announced shortly. GBAS and GRAS In 2006 Airservices, together with US technology giant Honeywell, established a program to develop and commercialise two GNSS augmentation solutions Ground-based Regional Augmentation System (GRAS) and Ground Based Augmentation System (GBAS). Both systems are designed to augment GPS signals to provide aircraft with very precise positioning guidance, both horizontal and vertical, which is especially critical during the approach and landing phase of flight. GRAS uses a distributed network of very high frequency broadcast stations to provide navigation guidance at regional airports which lack navigation infrastructure. Airservices has decided not to proceed with further GRAS development following a recent project review which identified some technical limitations, the emergence of cheaper alternative technologies and the prohibitive ultimate cost to regional customers. Airservices continues to work with Honeywell to deploy a Category-I GBAS. This is the world s first satellite precision navigation solution to receive certification from the US Federal Aviation Administration (FAA), which is expected in the first quarter of Qantas has flown over 1,500 GLS approaches using a trial system in Sydney which will be replaced by a certified GBAS by mid The GBAS is expected to replace the instrument landing systems at major airports, allowing aircraft to fly highly precise and smooth approach paths. It can guide up 48 approaches simultaneously, supporting both ILS overlays and complex offset or curved approaches. The GBAS will be a critical component of Australia s next-generation air traffic management infrastructure to reduce fuel burn, noise footprint and airport delays. In December 2008, the Port Authority of New York and New Jersey entered an estimated $USD2.5m contract with Honeywell for the supply, installation and maintenance of a GBAS system at Newark International Airport, a major US air transport hub. The authority is entering a memorandum of agreement with the FAA and Continental Airlines to conduct demonstration tests of the GBAS technology. Continental will equip 15 aircraft with GLS equipment and train pilots to use the system. Services to regional and general aviation customers Unicom trials Airservices has operated unicom trials at Dubbo and Wagga Wagga since December 2007 and in September/October 2008 added Port Macquarie, Olympic Dam and Hervey Bay to the program. These locations were selected for the trials following airspace risk assessments. The objective of the trials is to be able to provide more graduated risk mitigation at regional aerodromes. Currently risk mitigation consists of self-separation of aircraft at non-towered aerodromes or the establishment of a tower at some regional locations. Airservices believes that more graduated and effective risk mitigation measures should be available in a continually changing risk environment. The unicom services concept is not a replacement for Directed Traffic Information (DTI) in Class G airspace and involves unicom station operators providing: advisory traffic information in the immediate terminal airspace and movement area meteorological information emergency services alerting other aerodrome information as requested by pilots, which could include runway surface conditions or availability of fuel services. The service is provided on the existing CTAF/R frequency and the operating hours of the trial are generally determined by Regular Public Transport schedules. During the trial period, Airservices has funded the costs of establishing and operating the unicom service. Airservices will shortly assess the trial and report results to both CASA and industry. General Aviation survey Airservices would like to take this opportunity to thank all those who participated in the General Aviation (GA) Survey that was conducted between January and April We would also like to thank the Aircraft Owners and Pilots Association (AOPA) for its support of this initiative. The feedback has been assessed during the intervening months and will be used constructively to improve our services to the GA community. The survey was designed to examine a range of services including air traffic control and the provision of aeronautical information. The effectiveness of these services in meeting the needs of our GA customers was also analysed. More than 600 survey forms were received. Analysis of the data indicated that the majority of respondents had been flying for at least 10 years and fly at least weekly. Most respondents considered that the level of service provided by Airservices was good (60%) or excellent (21%). In spite of this level of endorsement, opportunities for improvement were identified. This has resulted in 17 recommendations which are detailed on our website, The recommendations include: Review software options to provide a more user friendly interface for flight plan lodgement. Review software to provide pilots with the option of obtaining briefing reports, especially weather, in plain English. Explore the viability of providing a tailored NOTAM service to only provide NOTAMs relevant to the planned activity. Update the Flying Around website to include larger and clearer charts. Review the colour and readability of roads and freeways on VTC to ensure that they are accurate and clearly differentiated. 14 Quarterly Report to Industry December 2008 Quarterly Report to Industry December

11 Major Technology Projects Highlights for Quarter Estimated Implementation Project Name Description Dates Status Future Milestones National Traffic Management and Enhanced Crisis Response National Operations Centre (NOC) Navigation Implementation of pre-departure tools to optimise air traffic flow management Q Implementation of a traffic flow management tool has commenced, that will provide demand capacity reporting on all Australian airports. Navigation Aid Life Extension (NAVEX) Instrument landing System (ILS) Replacement Sydney Ground Based Augmentation System (GBAS) trial Renewal of VOR and NDB ground based navigation aids to ensure continued service provision. Infrastructure renewal to ensure continued service provision. GBAS provides more reliable Precision Approach CAT-I guidance. The trial at Sydney will be used to assist with certification and approval of GBAS/GLS operations. Aviation Rescue and Fire Fighting (ARFF) Q The VORs at Proserpine, Rockhampton, Gove, Newman, Darwin and Townsville have all been commissioned. NDBs at Kununurra, Kowanyama, Cairns, Groote Eylandt, Hooker Creek, Maningrida, Newman, Karratha and Derby have also been commissioned. Q Sydney 07 ILS was commissioned in August 2008, which completes the current program of 14 sites. Q A developmental GBAS at Sydney airport is radiating signals. Approved aircraft may conduct GLS Approaches under a visual clearance. The NDB at Moomba is scheduled for commissioning in Q Launceston VOR is scheduled for commissioning in Q Airservices intends to upgrade the trial equipment with the next generation and await expected FAA certification prior to commissioning. Timeframes will be dependant on FAA certification and CASA approval. Fire Vehicle Replacement Project Stage 3 Perth New Fire Station Maroochydore New Fire Station Acquisition of Rosenbauer International Mk 8 Ultra large fire vehicles, to ensure ARFF services are maintained in accordance with regulatory requirements. Replacement purpose-built Fire Station at Perth to support aviation rescue and fire fighting services in accordance with regulatory requirements Provide permanent purpose-built Fire Station at Sunshine Coast Airport to support aviation rescue and fire fighting services in accordance with regulatory requirements. Q Ten vehicles have been delivered. Three vehicles are undergoing acceptance testing and the remaining vehicles are enroute to Australia. Q Contract negotiations are nearing completion. Q Lease negotiations continue with Sunshine Coast Airport. Completion of the delivery of the current order of vehicles is scheduled for Q However a rolling five year program involving the replacement of 10 vehicles per year is now underway. Fire Station construction expected to commence in Q Construction expected to commence in Q Project Name Description Surveillance Estimated Implementation Dates Status Future Milestones ADS-B Upper Airspace Airport Surface Movement Guidance & Control System (ASMGCS) Australian Mode S Terminal Area Radar (AMSTAR) Wide Area Multilateration (WAM) - Sydney Wide Area Multilateration Tasmania Enroute Radar Life Extension Installation of ADS-B ground stations at 28 locations across Australia to support surveillance services based on this technology. This project was recently extended to include additional ADS-B ground stations at all 11 enroute radar locations, and 3 Defence radar locations. Lord Howe Island will also receive an ADS-B ground station enabling surveillance in the Tasman Sea. Enables surveillance on the airport surface at Sydney, Brisbane and Melbourne. This will enhance safety through improved situational awareness and automated safety net alerts. The system includes a primary radar, a multilateration system and system display. Replacement of aging primary and secondary radars in busy terminal areas. The new radars will deliver improved efficiency through the use of Mode S processing. This provides better tracking and improved information to controllers, supporting enhanced controller/ pilot communications. Provides enhanced surveillance and display capabilities to replace the existing electronic scan precision runway monitor (PRM). In addition to supporting independent parallel runway operations in IFR conditions, the WAM will also provide backup to ADS-B surveillance in the Sydney basin. Provides surveillance in defined areas over Tasmania for aircraft equipped with ATC transponders. Also provides ADS-B coverage over almost all of Tasmania and into Bass Strait. Remedial work on 11 enroute radars to ensure continued viability of coverage. Q Five sites have been commissioned in WA. These sites were Newman, Meekatharra, Leonora, Telfer and Caiguna. Q Installation at Sydney has been completed and optimisation has commenced. The project has been expanded to include Perth airport, changing the estimated project completion date to Q Q Coolangatta Terminal Approach Radar (Mt Somerville) has been commissioned and transportable radar has been installed in Melbourne. Q Central processing equipment has been installed at Sydney airport. Installation of antenna equipment has commenced at a number sites within the Sydney basin. Q Commissioning and safety activities continue to confirm the WAM system for operational use. Q Life extension work on radars at Hahn Tableland, Mt. Alma, Swampy Ridge and Tabletop has been successfully completed. Melbourne commissioning scheduled for Q1 2009, with Sydney commissioning scheduled for Q The transportable radar in Melbourne is expected to be commissioned in Q1 2009, with installation of the new Melbourne Terminal Approach Radar to immediately follow. PRM display and sensor/antenna equipment installation scheduled for completion Q CASA approval to use WAM for separation of aircraft anticipated in Q Dependent on CASA approval, commissioning for WAM in Tasmania scheduled for Q A further two sites are scheduled for completion Q Quarterly Report to Industry December 2008 Quarterly Report to Industry December

12 Project Name Description Infrastructure National Towers Program New Towers Stage 1 National Towers Program New Tower Technology National Towers Program Towers Refurbishment Renewal/relocation of aging air traffic control tower buildings. Design and implementation of a new, integrated, scalable and standardised suite of Air Traffic Control Tower technology. In the long term this will reduce training requirements and enable standardised equipment related procedures. Refurbishment of air traffic control towers to meet future demands for tower service provision. Telecommunications Infrastructure Network Replacement (TINR) VHF system upgrade (VHFSUP) Lord Howe Island ATC Infrastructure Provision of a new digital telecommunications network to support current and future infrastructure. Will reduce costs and reliance on satellite communication. Replacement of equipment used for VHF air-ground-air services. Uses modern digital technology, improving the reliability and performance of communication. Provision of new NDB and relocation of existing DME equipment to improve service reliability and safety. Estimated Implementation Dates Status Future Milestones Q Negotiations continue with airport owners to agree sites at each location. Location specific detailed tower design work has commenced. Q New Technology tender evaluation is nearing completion. Requests for EOI for construction to be issued Q Melbourne Tower is the first tower scheduled for construction. Contract scheduled to be in place by Q Q Works are being programmed. Current maintenance activities are continuing. Q Design activity has been progressed and installation of pilot communications infrastructure is underway. The roll out of the program is to commence in Q with Avalon Tower. The program will trigger refurbishment projects and/or other works at other selected tower locations. Pilot rollout is expected to be complete in Q with optimised rollout to remaining sites following. Q sites out of a total of some 130 now commissioned on new VHF equipment. Installation of remaining sites is progressing steadily, with a further 40 sites planned for commissioning by Q Q Civil construction works have commenced. Civil construction works expected to be complete in Q New NDB and DME expected to be commissioned in Q

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