Office of the Chief Executive GPO Box 367 CANBERRA ACT 2601 Phone: (02) 6268 4182 Fax: (02) 6268 5685 ABN 59 698 720 886 CEO UPDATE REPORT TO INDUSTRY MARCH QUARTER 2011 OVERVIEW This quarter we made progress against our major capital works program and against our Services Charter. An update is attached to this letter. ASSETS Sydney: The new Instrument Landing System (ILS) on runway 16R at Sydney airport was commissioned on 25 March 2011. Perth: Demolition works took place at Perth airport in March to remove the old Perth fire station and control tower, making way for improved access along the taxiway to the domestic terminal. Major construction: Visible progress has been made on our national towers program: o The tower shaft for the new tower in Adelaide has been constructed and slipform concrete walls have been poured to form the shell of the cabin. o The tower shaft and internal stairwell has been completed for the new tower in Melbourne, and o In March, a 25 tonne cabin was fitted to the top of the Rockhampton tower shaft. Flooding in Rockhampton in January prevented access to the site for some weeks, however final construction of the new tower remains on course for completion in early July 2011. PEOPLE Last month Airservices welcomed Peter Ward to the role of General Manager People and Change. Peter is a human resources professional with over 30 years experience in cultural change and organisational development.
ENVIRONMENT Airservices program to improve the handling of aircraft noise issues continues. Changes to our noise inquiry unit in line with the recommendations outlined in the report by the Aircraft Noise Ombudsman have commenced. Last month we participated in further industry working groups which are improving both the type of information provided to the community and the overall approach to noise management being taken by industry. SAFETY Papua New Guinea Two aviation safety projects were completed last month. The first was an improved dual feed communications link with our counterpart, Air Services Limited (PNGASL). The link is used to transmit data relating to flights crossing the airspace boundary shared by Australia and PNG. Air traffic controllers in both countries can now securely co-ordinate flight movements and exchange data over both satellite and under-sea fibre-optic cable links. Secondly, Airservices formally handed over 11 surplus aviation rescue and fire fighting vehicles to PNG's National Airport's Corporation (NAC) at a ceremony at Nadzab Airport (Lae). PRICING Our new Long Term Pricing Agreement has been submitted to the Australian Competition and Consumer Commission (ACCC) and is currently undergoing public consultation. Yours sincerely Greg Russell Chief Executive Officer 20 May 2011
Services Charter 2010-11 Quarterly Progress Report March 2011 Services Charter 2010-11 - Quarterly Progress Report - March 2011 1
About this report Welcome to the second Quarterly Report on progress against the Airservices Services Charter. The Charter was developed in consultation with key stakeholders to provide a vehicle for us to report performance results to the aviation industry. It provides a basis for common understanding and agreement of current and future service delivery requirements and allows our performance to be effectively measured. Our performance measures are described in qualitative and quantitative terms. Implementation The charter has been implemented as a work in progress. It will require annual review to reflect changes in industry requirements, advances in technology and market impacts. We will consult with the Pricing Consultative Committee (PCC), comprised of representatives from the major domestic and regional carriers, international airlines and associations, and general aviation, before July 2011 to conduct a formal review of the appropriateness of the metrics incorporated in this charter. Greg Russell Chief Executive Officer Airservices Australia 09 May 2011 Services Charter 2010-11 - Quarterly Progress Report - March 2011 3
Summary of results ATM performance indicators Three out of four air traffic services safety measures were within our target range for the March quarter. While it is pleasing to see the terminal area Breakdown of Separation rate target return to a level below target, this quarter we did not to meet our target en route Breakdown of Separation rate (1.37 against a target of 1.25 per 100,000 flight hours). This was due to five unrelated incidents which are not systemic. This KPI will be closely monitored in coming quarters. Air navigation services availability was 100 per cent across all service delivery environments. This report also sees the inclusion of reporting against three new KPIs. The first is aircraft holding, as measured by the percentage reduction in total airborne holding delay. Although the target reduction of 10 per cent in Q3 was not achieved (in fact a 22 per cent increase occured), this was largely due to essential runway works in Melbourne restricting movements to single runway operations for much of the reporting period. This factor was beyond Airservices control. We are continuing to work with industry to address the impact of aircraft noise. We have begun planning changes to the operations of our Noise Enquiry Unit to meet the recommendations contained in the first report of the Aircraft Noise Ombudsman. We also facilitated the first meeting of the cross-industry aircraft noise working group with representatives from airports, airlines, the Department of Infrastructure and Transport, Aircraft Noise Ombudsman and Airservices. The forum will reconvene in June 2011. ARRF performance indicators Our aviation rescue and fire fighting (ARFF) services again exceeded our target for operational preparedness, with a 99.94 per cent response (target 98 per cent). ARFF also recorded a 99 per cent response rate to aircraft incidents within three minutes which did not meet our target of 100 per cent. A single incident in which the response time was not met has been reviewed and procedures revised to ensure future compliance in similar situations. The other two are Noise Enquiry Unit compliance to prescribed response times for complaints and enquiries and our implementation of continuous descent arrivals (CDA). CDA is reliant on implementation of our Required Navigation Performance Authorisation Required (RNP-AR) project. This project has been delayed until 2013, so we do not expect to meet this KPI in this financial year. 4 Services Charter 2010-11 - Quarterly Progress Report - March 2011
Development and reporting of KPIs Our Services Charter establishes performance measurement metrics and identifies how we will report performance outcomes, generally against agreed targets. In some cases, no KPI target has been set. Current performance results are reported with the aim of analysing the data to establish a target for these KPIs over the life of the charter. Some measures are also considered trial indicators to allow time for proper monitoring, feedback and assessment of potentially more appropriate targets. KPIs still under development are: ATS induced delay capacity improvement noise abatement ALOFT delay absorption CO 2 emissions operational architecture - design efficiencies flexible routes. KPIs at a glance Total KPIs in Services Charter 22 KPIs reported against in this report 15 KPIs under development 7 KPIs on target 9 KPIs requiring attention 3 KPIs without targets 3 Program of capital works and initiatives milestones This quarter we have commenced reporting directly against the major projects and initiatives outlined in our Services Charter. While we have more than 80 active projects underway and a planned expenditure of $900m over five years, this report contains those projects on which we have made particular commitments to our customers under the Services Charter For more detail on any of these projects and their expected benefits, please refer to the Services Charter which can be found on our website. Many of our projects are progressing well, and reaching key milestones. For example, we are continuing to replace ageing instrument landing systems and putting new fire vehicles into service. In addition, our program of new tower construction continues with good progress being made in Melbourne, Adelaide, Rockhampton and Broome. On those projects where slippage has occurred, performance is being closely monitored and a plan for rectification put in place. In some cases this involves contract re-negotiations with equipment and technology suppliers and liaison with key stakeholders such as airports and airlines. More information is provided in the list of capital works in this document. Capital works at a glance Total in Services Charter 19 Projects on target 9 Projects requiring action 8 Projects completed 2 Services Charter 2010-11 - Quarterly Progress Report - March 2011 5
Performance measurement ATM performance indicators Key performance indicator Methodology Target Jul 10 Jun 11 Safety ATS attributed en route BoS rate ATS attributed number of en route breakdowns of separation per 100,000 flight hours (12-month moving average). ATS attributed terminal area (TMA) BoS rate ATS attributed tower BoS rate ATS attributed runway incursions Cost-effectiveness ATS attributable flight delays (total) Capacity Air navigation services availability % of declared runway capacity achieved Mean time between outages ATS attributed number of terminal area breakdowns of separation per 100,000 movements (12-month moving average). ATS attributed number of tower breakdowns of separation per 100,000 movements (12-month moving average). Number of ICAO Class A or B Airservices ATS attributable runway incursions. Number of total ATS attributable flight delay events (where delay is greater than 10 minutes) per quarter for: whole of system Sydney Melbourne Brisbane Perth. Hours of service availability (normal operations, not restricted access such as non-provision of notified service) as a % of total hours of coverage for: whole of system East Coast Services Regional Services Upper Airspace Services. % of declared peak runway capacity achieved when demand is greater than runway capacity for: Sydney Melbourne Brisbane Perth. Mean time between outages for: radar Instrument Landing System Air-ground-air VHF Q3 Actual <1.25 1.37 <1.50 1.44 <1.50 0.58 0 1 0 Current trends will be reported and analysed to establish a target for these KPIs over the next 12 months. 99.90% 99.90% 99.90% 99.90% Current trends will be reported and analysed to establish a target for these KPIs over the next 12 months. >9000 hours >1000 hours >9000 hours 0 0 0 0 0 100% 100% 100% 100% 97.16% 96.22% 96.24% 2 > 23 000 > 3000 > 45 000 N/A N/A 1. The target was readjusted downwards from <3 to zero in Q3. 2. Data not available for Perth at present. 6 Services Charter 2010-11 - Quarterly Progress Report - March 2011
Key performance indicator Methodology Target Jul 10 Jun 11 Flight efficiency/environment noise Q3 Actual Noise complaints Number of annual complainants per 100,000 movements. 2% reduction 15.9% 3 Consultation on noise issues Number of procedural changes implemented without consultation in accordance with Airservices Communication and Consultation Protocol (excluding those implemented to address immediate safety issues). 0 0 NEU response time Noise Enquiry Unit compliance with prescribed response times for complaints and enquiries. 95% compliance 97.8% Flight efficiency emissons Aircraft holding Percentage reduction in total airborne holding delay. 10% reduction 22% increase Continuous descent arrival Percentage of Required Navigation Performance (RNP) approaches provided for RNP capable flights at those aerodromes where RNP has been implemented after community consultation in accordance with Airservices Communication and Consultation Protocol. 55% provision 0 N/A 4 ARFF performance indicators Key performance indicator Methodology Target Jul 10 Jun 11 ARFF availability % ARFF operational preparedness Percentage of time ARFF resources were available to meet required capacity according to regulated ARFF service category (level) for the aerodrome. ARFF response % ARFF responsiveness Percentage of total responses to aircraft incidents on the aerodrome movement area within three minutes. Q2 Actual 98% 99.94% 100% 99.00% 3. As this KPI is calculated against annual flight movements, individual quarterly results will fluctuate significantly, trending down during the financial year. 4. Airservices is currently reviewing its Performance Based Navigation and Required Navigation Performance implementation plans, both of which are enablers for Continuous Descent Arrivals. Services Charter 2010-11 - Quarterly Progress Report - March 2011 7
Program of capital works and initiatives milestones Project name Navigation Sydney Ground Based Augmentation System (GBAS) trial Implementation of a satellite-based precision approach and landing system. Instrument Landing System (ILS) 2 Replacement of the remaining seven ageing ILSs Navigation Aid Life Extension Project Stage 2A (NAVEX 2A) Supplementary renewal program to replace ageing backup network Non- Directional Beacons ensuring continued service provision. ARFF Fire Vehicle Replacement Project Stage 4 Acquisition of 37 fire vehicles to replace part of the ageing vehicle fleet and additional vehicles to support A380 operations and category upgrades Learning Academy Hot Fire Training Ground Establishment of a new state-of-the-art centralised training facility for the Learning Academy in Melbourne Surveillance Advanced Surface Movement Guidance and Control System (A-SMGCS) Implementation of an air traffic surveillance systems that enables aircraft and vehicles in the airport surface to be accurately tracked in all viability conditions Australian Mode S Terminal Area Radar (AMSTAR) Project Replacement of ageing primary and secondary radars in busy terminal areas En route Radar Replacement Replacement of en route radars to ensure continuity of core en route radar separation services. Wide Area Multilateration Sydney Providing enhanced surveillance and display capabilities to replace the existing electronic scan precision runway monitor (PRM) at Sydney Airport Infrastructure National Towers Program New Towers Stage 1 Renewal/relocation of ageing air traffic control tower buildings National Towers Program New Tower Technology Design and implementation of a new, integrated, scalable and standardised suite of Air Traffic Control Tower technology National Towers Program Life Extension Upgrades Upgrading of ageing air traffic control tower buildings Telecommunications Infrastructure Network Replacement (TINR) Provision of a new digital telecommunications network to support current and future infrastructure Baseline completion date (fy) * Forecast completion date (fy) ** Dec 2011 Dec 2011 Jun 2013 Jun 2013 Dec 2011 Dec 2011 Dec 2013 Dec 2013 Mar 2012 Mar 2012 Mar 2011 Jun 2011 1 Mar 2011 Mar 2013 2 Sep 2010 TBC 3 Dec 2010 Jun 2011 4 Mar 2012 Mar 2012 Mar 2012 Mar 2012 Rolling program (multiple towers) Various Dec 2010 Sep 2010 Completed 1. The project team is working to improve completion dates with Site Acceptance Testing in Brisbane planned for November 2011. 2. Project performance over the last six months has improved significantly with the delivery of West Beach (Adelaide), Darwin, and Cecil Park (Sydney) Terminal Area Radars into operational service. 3. Awaiting information 4. The forecast completion date has been delayed to June 2011 due to the need for more time to resolve technical issues encoutered during Site Acceptance Testing. 8 Services Charter 2010-11 - Quarterly Progress Report - March 2011
Project name VHF System Upgrade (VHF SUP) Replacement of equipment used for VHF air-ground-air services Wire braced tower replacements ITRP Replacement of all wire-braced towers at 32 sites. ATM Required Navigation Performance (RNP-AR) Implementation of Terminal Area RNP Authorisation Required Procedures at eight airports User Preferred Routes (UPR) Implementation of system to allow aircraft to fly the most efficient route rather than pre-determined routes set by ATC. Mercury Project Development and implementation of a new and enhanced aeronautical information system. Business IT Safety management data system upgrade Implementation of an application to integrate all safety management data systems in use. Baseline completion date (fy) * Forecast completion date (fy) ** Dec 2010 Dec 2010 Completed Jun 2011 Dec 2011 5 Sep 2011 Dec 2012 6 UAS East Mar 2011 Expansion across UAS Dec 2011 Optimisation Dec 2012 UAS East Jun 2011 Expansion across UAS Dec 2011 Optimisation Dec 2012 7 Dec 2011 Dec 2011 Mar 2011 Dec 2012 8 * Baseline completion date is the target completion date as per Airservices Services Charter 2010-11. ** Forecast completion date is a revised target completion date. 5. Two more towers (Ceduna and Carnarvon) have now been added to the project s scope, resulting in a revised completion date of December 2011. The project is otherwise on track. 6. The RNP project is behind schedule as a result of ongoing environmental assessments for Brisbane, Melbourne and Gold Coast procedures. 7. The project is currently scheduled to deliver interim UPRs (Melbourne to Auckland) in June 2011. However, a dependency on a number of other projects mean that the project may not meet the scheduled completion date of December 2012. 8. The project is currently in the planning stage. Business case approval was achieved in April 2011. Services Charter 2010-11 - Quarterly Progress Report - March 2011 9
Glossary ALOFT AMSTAR ARFF A-SMGCS ATM ATS BOS GA GBAS ICAO ILS KPI NAVEX PCC PRM RNP-AR TiNR TMA UPR VHF Air traffic management long range optimal flow tool Australian Mode S Terminal Area Radar Aviation Rescue and Fire Fighting Advanced Surface Movement Guidance and Control System Air Traffic Management Air Traffic Services Breakdown of Separation General Aviation Ground-Based Augmentation System International Civil Aviation Organization Instrument Landing System Key Performance Indicator Navigation Aid Life Extension Project Pricing Consultative Committee Precision Runway Monitor Required Navigation Performance Authorisation Required Telecommunications Infrastructure Network Replacement Terminal Movement Area User Preferred Routes Very High Frequency 10 Services Charter 2010-11 - Quarterly Progress Report - March 2011
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