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Airservices Australia—Report for 2013-14


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14-105 Corporate Communication

Airservices Australia Annual Report 2013-14

AnnualReport 13-14

Airservices Annual Report 2013-14 II

For all enquiries contact Manager Corporate Communication Airservices Australia

Address Alan Woods Building 25 Constitution Avenue Canberra ACT 2600 Australia.

Mail GPO Box 367 Canberra ACT 2601 Australia

Phone +61 2 6268 4111 1300 301 120

Fax + 61 2 6268 5693

ABN-59 698 720 886

Email info@airservicesaustralia.com

Website www.airservicesaustralia.com

© Airservices Australia 2014

This work is copyright. Apart from any use as permitted under the Copyright Act 196 8, no part may be reproduced by any process without prior written permission from Airservices Australia. Requests and inquiries concerning reproduction rights should be addressed to:

ISSN 1327-6980

Web address of this report: www.airservicesaustralia.com/publications/corporate-publications

Produced by Airservices Australia Edited and indexed by Morris Walker

Airservices Annual Report 2013-14 III

Contents

Letter of transmittal 01

Chair’s report 02

Chief Executive Officer’s report 04

Who we are 08

Corporate overview 14

Principal activities 15

Enabling legislation, objectives and functions 17

Annual reporting requirements and responsible Minister 17

Corporate structure 18

Corporate governance 19

Management and accountability 22

Operational results 23

2013-14 financial results 23

Ministerial directions 24

Significant changes in the state of affairs during the financial year 25

Developments since the end of the financial year 25

Report on performance 30

Maximising safety performance 31

High performing organisation 39

Core operational and business excellence 46

Financial statements 54

Appendices 1 12

Appendix 1: Board memberships, meetings and committees 11 3

Appendix 2: Statement of Expectations 11 9

Appendix 3: Statement of Intent 12 5

Appendix 4: Statutory and administrative information 13 0

Appendix 5: Staff equity and diversity progress report 13 7

Appendix 6: Workforce plan progress report 14 7

Appendix 7: Environmental sustainability report 15 2

Appendix 8: Airservices stakeholders and industry partners 15 4

Appendix 9: Noise Complaints and Information Service data 16 1

Appendix 10: Aircraft Noise Ombudsman Annual Report 16 2

Glossary 18 6

Compliance index 18 7

Index 18 9

Airservices Annual Report 2013-14 IV

Airservices Annual Report 2013-14 01

Letter of transmittal

Chair

GPO Box 367, Canberra ACT 2601 25 Constitution Avenue, Canberra ACT 2601

t 02 6268 4859 f 02 6268 5686

www.airservicesaustralia.com

ABN 59 698 720 886

The Hon Warren Truss MP Deputy Prime Minister Minister for Infrastructure and Regional Development Parliament House

Canberra ACT 2600

Dear Deputy Prime Minister

Airservices Annual Report 2013-14

On behalf of the Board of Airservices Australia, I am pleased to submit to you the Airservices Australia Annual Report for the financial year 2013-14.

The report has been prepared in accordance with the requirements of the Air Services Act 1995, Commonwealth Authorities and Companies Act 1997 and relevant Finance Minister’s Orders.

The report outlines the achievements and milestones met by Airservices, and includes a review of operations and financial statements for the year ending 30 June 2014.

Yours sincerely

Air Chief Marshal Angus Houston AC, AFC (Ret’d) Chair

Airservices Annual Report 2013-14 02

Chair’s report

I am pleased to present the Airservices annual report for 2013-14, my third as Chair of the Board.

This year has been a difficult one for the global community. Recent air tragedies have brought us together, as never before, with a shared grief for those who have lost loved ones.

I was humbled to be asked by the Prime Minister to be his Special Envoy, to lead the effort in the Ukraine following the downing of MH17. I felt it was a natural extension of my responsibilities as the head of the agency leading the search for Malaysia’s MH370.

I sincerely hope the next few months will bring some relief and comfort to those who have lost loved ones and to the aviation industry as we try to comprehend and learn from these terrible tragedies.

Safety is our number one priority, and Australia continues to have one of the lowest loss of separation occurrence rates attributable to civilian air traffic control in the world. To ensure we maintain this reputation, a safety task force was established to review and implement a range of new safety initiatives. The Board and I are of the clear view that our ongoing efforts to improve safety at every opportunity are vital in supporting the aviation industry.

People drive safety through their everyday actions and this is evident throughout Airservices by our impressive safety record. Our new Work Health

Airservices Annual Report 2013-14 03

and Safety strategy is reinforcing the principles of ‘safety by design’ and delivering initiatives that are improving outcomes with a focus on wellbeing at work, and it is pleasing to see that this year our statistics show that we have had a reduction in dangerous workplace incidents.

Airservices focus is to provide industry with the certainty and incentive to plan and invest for the long term. We are doing this through the provision of the latest in technology, improving airport capacity and assisting airlines in reducing costs.

International movements continue to grow with the number of arrivals increasing by 6.7 per cent compared with 2012-13, and this significant ongoing growth is forecast for the years ahead. While our customers are dealing with difficult market conditions, they have remained positive about our initiatives to improve efficiency. We have also continued to demonstrate to Government our ability to deliver both savings to industry and lower the administrative costs of service delivery.

I am pleased with the progress made in collaboration with Defence in evaluating tenders for Australia’s future single air traffic management system, OneSKY Australia. Airservices has a clear strategy for the smooth delivery of this project, and has brought together a highly experienced and capable project team which is on track. In support of this, it is vital that we deliver the right workforce for the future, both in terms of numbers and capability, and I am confident that we will be able to do so.

In 2013-14 we increased the number of our aviation rescue fire fighting trainees and delivered an increased number of air traffic control recruit courses so that we will have the right people with the right capabilities to meet the future requirements for our business delivery and the aviation industry as a whole.

The achievements and results contained in this report are a result of the outstanding performance of our people. I am proud to lead people who are genuinely committed to improving both Airservices and Australian aviation. I thank and commend our people for their ongoing efforts and it is a pleasure to serve them as Chair of the Board.

I would also like to acknowledge Dr Warren Mundy who resigned from the Airservices Board in October 2013, after more than five years of committed service to the organisation, with over four of those as Deputy Chair. The term of David Burden also ended in May 2014, and I want to thank him for his dedication to Airservices over the past five years.

Air Chief Marshal Angus Houston AC, AFC (Ret’d) Chair

Airservices Annual Report 2013-14 04

Chief Executive Officer’s re port

This year has been an important year for Airservices. As we all know the aviation industry is growing and changing and we have to be ready to meet those changes. We have already achieved tangible improvements in our systems, services and practices and planning for delivery of a single civil-military harmonised air traffic management system is well underway.

I know we understand what we need to achieve and as an organisation we also understand our strategic goals to get us there. The challenge is for us to be in a position to manage the forecast growth of air traffic movement in Australia of as much as 60 per cent by 2030.

This growth will place significant demand on Airservices capability and services. Over the past year we have committed our time and resources to better use technology and streamline our systems to improve service delivery and to prepare for the ongoing challenges presented by aviation growth. I am confident that Airservices can meet these future challenges.

The Melbourne - Sydney - Brisbane triangle of airspace is comparable to any high density airspace in the world including the busiest in either Europe or the United States. The Sydney to Melbourne city pair was consistently listed over the past year as the second busiest flight corridor in the world. In October, we saw our busiest day in Sydney since the Sydney Olympics in 2000, only just short of our busiest day ever, and in December we achieved a record for the busiest hour and day at Brisbane Airport.

Safety remains Airservices number one priority and will continue to be a key focus of my leadership. Despite our exceptional safety record, we must always guard against complacency, and I commissioned a task force in October, Skysafe, to examine the safety of our systems and look at how we can further strengthen the safety of the services we provide. This work has included the

Airservices Annual Report 2013-14 05

potential for improvements in conflict detection, the way in which air routes are structured and options to better support air traffic controllers so that safety continues to underpin all our actions.

We made positive progress during the year with the OneSKY Australia programme, which will deliver the next generation air traffic control system in collaboration with the Department of Defence. The significance of OneSKY cannot be overestimated. By replacing the current ageing air traffic management platform that was commissioned in the late 1990s, OneSKY will meet higher customer expectations such as enhanced navigation and communication capability, readily adaptable to global changes in aircraft technology and safety performance.

The anticipated delivery of OneSKY has driven a commitment during 2013-14 to examine the way we do business and the way we support our people. To support our transformation, we commenced the culture journey ‘Our people, our future.’ This culture journey will support our effort to put the customer at the heart of everything we do, increase collaboration and ensure we work as one team, and invest in our people.

I am pleased that despite the challenging market conditions faced by our customers, they have remained positive about the programs and systems that Airservices has delivered to improve airspace and airport capacity and smooth demand across the country. I want to ensure we continue to enhance our stakeholder engagement and build on this momentum, with a genuine customer focus and increase in our efforts toward working in partnership. This includes actively working with aviation industry partners on initiatives to help contain costs.

The expansion of the Metron-Harmony ground delay system saw positive results for the industry during 2013-14, minimising airborne holding,

which assists with fuel savings and associated emissions, enhances safety and reduces traffic congestion. Our Airport Capacity Enhancement programme also delivered benefits in reduced runway occupancy times. At Brisbane alone, these initiatives saw airborne delays during the morning and evening peak periods drop by 35 per cent and runway occupancy times decrease to 41 seconds, making it one of the world’s best-performing airports for single runway operations.

This year we also celebrated the 10th anniversary of the first use of Flextracks in Australian airspace. Flextracks are another clear example of our support for our customers as we assist in improving their flight times, reducing operating costs and delivering environmental benefits for all. There are now approximately 31 flights each day using 17 Flextracks between Australia and airports in Asia and the Middle East.

Airservices capital investment of more than $186 million during the reporting period included a commitment to using the latest technology to safely and efficiently manage the movement of aircraft. We commissioned two new air traffic control towers at Adelaide and Melbourne, both operating fully digital systems that integrate flight and operational data along with surveillance and voice communications. In addition, we commissioned a number of radars across the country. In May, we implemented our Ground Based Augmentation System, ‘SmartPath’, at Sydney Airport. This is an important investment in technology that provides increased safety and efficiency to industry by improving the accuracy of aircraft positioning.

Increased demand on the network from resources sector traffic, an increase in tourism and the growth of new low cost carriers has triggered additional requirements for Airservices aviation rescue fire fighting service during the reporting period. In response, we have delivered

Airservices Annual Report 2013-14 06

a service upgrade from category 6 to category 7 at Port Hedland and are investing over $80 million to establish new services at Gladstone in Queensland, Newman in Western Australia and at Coffs Harbour and Ballina in New South Wales.

We continued to expand our efforts during 2013-14 to minimise the environmental impact of aircraft operations and our environmental footprint and we have worked closely with the community, industry and government to deliver better environmental outcomes. We implemented our Aircraft Noise Management Strategy in November and commenced a $25 million, five -year noise and flight path monitoring programme. We also trialled a modified flight path in Western Australia to improve aircraft noise impact for more than 4000 residents.

The year ahead looks exciting, as we move closer to transitioning to OneSKY. We will also build on the strong work we have undertaken this year in assisting airports and airlines in realising greater capacity and delivering more reliable services that enable fuel and emission savings.

My congratulations to everyone across our organisation on the outstanding results of 2013-14 and I know we will continue to contribute to the ongoing success of Airservices and a more responsible and sustainable future for the Australian aviation industry.

Margaret Staib Chief Executive Officer

Airservices Annual Report 2013-14 07

01WHO WE ARE

Airservices Annual Report 2013-14 09

01 Who we are

Who we are

The primary role of Airservices is to provide air navigation and aviation rescue fire fighting services for our customers, aviation industry and the community.

Our commitment to safety is paramount. We are also committed to improving our efficiency, meeting aviation capacity demands and minimising the environmental impact of our operations (including those that impact the community). We place the customer at the heart of everything we do and understand and respond to their changing needs while to continuing to hold safety as our highest priority.

We do this through our work with our customers, industry and government partners and by seeking outcomes for a more responsible and sustainable future for the Australian aviation industry.

Our position within the Australian aviation industry provides us with a unique, whole-of-industry perspective. We have a primary role in connecting many of the elements of the industry and are well placed to help improve the industry for our customers.

We provide information vital to measuring and improving performance across the entire industry and provide the link between airlines, airports, air traffic management, navigation services and systems.

Our aim is to assist in connecting the Australian aviation industry to allow airspace users to enjoy the benefits of safe, efficient and more cost-e ffective aircraft movements.

Our role

Every year, Airservices manages more than four million aircraft movements carrying over 90 million passengers and provides air navigation services across 11 per cent of the world’s airspace.

We have two major operating centres in Melbourne and Brisbane and a head office in Canberra. We operate 29 air traffic control towers and four terminal control units at international and regional airports and provide aviation rescue fire fighting services at 22 of Australia’s busiest airports.

Our mission

To provide safe, secure, efficient and environmentally responsible services to the aviation industry.

Our vision

Connecting the Australian aviation industry to deliver world’s best industry performance.

Airservices Annual Report 2013-14 10

Our values

Excellence—we work to make everyone successful by engaging with others, delivering on our commitments and always looking for the best possible outcome.

Inclusion—we foster a welcoming, diverse and professional workplace where everyone is able to contribute to or understand the decisions that affect them in an open and transparent way.

Cohesion—we work together to connect our organisation and our industry by actively engaging with others, drawing on experience and sharing knowledge and information.

Initiative—we make a difference by identifying innovative solutions and seeking to continuously improve.

Courage—we do what is right and speak up. We challenge ourselves, others and the status quo.

Our goals

ƒ Provide safe and efficient aviation services.

ƒ Support our customers, industry and stakeholders.

ƒ Future-proof the aviation industry.

ƒ Engage our people.

ƒ Deliver the latest technology.

ƒ Improve noise outcomes for the community.

2013-14 highlights

Improving safety

ƒ Established Operation Skysafe, a special taskforce to review the way air routes are structured to find ways to better support air traffic controllers and improve safety outcomes for our customers and the aviation industry.

ƒ Implemented a Surveillance Advisory Service for Sunshine Coast and Alice Springs airports, and a radar approach service for Mackay Airport.

ƒ Led delivery of an international Runway Safety Program with industry partners.

ƒ Reviewed airspace to improve air traffic safety and efficiency including consultation for the Adelaide and Brisbane Basins.

ƒ Our fire fighters responded to more than 7200 emergency calls, including more than 3760 first aid calls.

ƒ Our fire fighters attended 36 requests to provide mutual aid to state and territory emergency services, most notably large-s cale response to the Hazelwood coal mine fire near the Victorian town of Morwell.

ƒ Invested more than $80 million in planning and construction of new aviation rescue fire fighting services to provide safe air traffic operations for our customers.

ƒ Commissioned 10 new ultra-large fire rescue vehicles for aviation rescue fire fighting ope rations.

ƒ Our aviation rescue fire fighting service attended more than 170 events nationally as part of our ultra-large fire vehicle community awareness safety programme.

ƒ Commissioned new radar at Round Mountain and Mount Bobbara in New South Wales as part of the Enroute Radar Replacement project.

Airservices Annual Report 2013-14 11

ƒ Signed a memorandum of cooperation and exchange of safety information with I ndonesia.

Connecting aviation

ƒ Leading the development of OneSKY Australia—a harmonised civil-military air traffic management system.

ƒ Managed more than four million flights carrying more than 90 million passengers.

ƒ Handled more than 769 000 flights from Australia’s four major airports—Sydney, Melbourne, Perth and Brisbane.

ƒ Supported CASA through the delivery of a nation-wide awareness campaign to the aviation industry in support of the Automatic Dependant Surveillance-Broadcast (ADS-B) m andate.

ƒ Commissioned new air traffic control towers at Adelaide and Melbourne airports.

ƒ Upgraded aviation rescue fire fighting services at regional and international airports including Adelaide, Brisbane, Launceston, Mackay and P erth.

Supporting customers

ƒ Delivered a capital works programme of $186.5 milli on.

ƒ Commissioned SmartPath, a ground-based augmentation landing system at Sydney Airport—the first of its type in the Asia-Pacific and southern hemisphere.

ƒ Reduced airborne holding times at Melbourne A irport by implementing the Metron-Harmony ground delay system, following successful implementation at Sydney, Perth and Br isbane.

ƒ Implemented Airport Capacity Enhancement (ACE) programmes at Melbourne and Perth airports and worked with the Air Traffic Management planning group at Sydney Airport to reduce runway occupancy times.

ƒ Decreased runway occupancy times at Brisbane Airport to 41 seconds, making it one of the world’s best-performing airports for single runway operations.

ƒ Commenced the Navigation Rationalisation Project to remove navigation aids no longer required by the industry.

ƒ Invested more than $100 000 in sponsorships to support aviation industry initiatives.

ƒ Provided 18 scholarships to assist recipients to obtain their flight qualifications enabling them to undertake a career in aviation.

Our environment

ƒ Celebrated the 10th anniversary of Flextracks in Australian airspace, which saves fuel and reduces carbon dioxide (CO2) emissions for our customers.

ƒ Assisted airlines reduce CO2 emissions by an estimated 19 000 tonnes by establishing the Arabian Sea Indian Ocean User Preferred R oute.

ƒ Commenced a $25 million, five-year programme to undertake both short and long-term noise and flight path monitoring.

ƒ Reduced aircraft noise for more than 4000 residents in Perth, Western Australia.

ƒ Launched a website (www.aircraftnoise. com.au) on aircraft noise in conjunction with the Australian Airports Association to provide easy-to-understand information to the community on aircraft noise and its impacts.

Our people

ƒ Commenced the ‘Our people, our future’ culture programme to support our efforts to be a more customer centric business.

ƒ Implemented strategies, which resulted in 80 per cent staff engagement as reflected in our 2014 employee pulse survey.

ƒ Achieved re-accreditation for Airservices as a Registered Training Organisation.

Airservices Annual Report 2013-14 12

ƒ Our Learning Academy was named one of three finalists in the Victorian Training Awards 2014 “Employer of the Year” category.

ƒ Recruited and trained 118 new aviation rescue fire fighters.

ƒ Introduced a new advanced driver-training programme for aviation rescue fire fighters.

ƒ Increased the number of recruitment courses for air traffic controllers in preparation for increased demand on our services.

ƒ Delivered 397 operational training courses to 1606 staff.

ƒ Implemented a skills framework to help identify future information communication technology skill requirements.

Our engagement

ƒ Received the IHS Jane’s Award for service provision to the aviation industry together with industry partners.

ƒ Presented our approach for determining air traffic controller staffing levels to the United States National Academy of Sciences as part of an international benchmarking exercise.

ƒ Surveyed stakeholders on their satisfaction with Airservices, and achieved 92 per cent rating of satisfied or very satisfied.

ƒ Reviewed Papua New Guinea Air Services Limited’s maintenance and engineering capability and worked with them to develop a long-term enhancement programme.

ƒ Committed to continue to provide upper airspace management throughout the Nauru and Solomon Islands Flight Information Regions and to work collaboratively to improve capability.

ƒ Commissioned the Australian Super Hornet communications project in collaboration with the Department of Defence.

ƒ Assisted the Department of Defence in the provision of air traffic control approach services at RAAF Base Richmond.

Airservices Annual Report 2013-14 13

02CORPORATE OVERVIEW

Airservices Annual Report 2013-14 15

02 Corporate overview

Principal activities

Airservices is a Commonwealth Statutory Authority, established by the Air Services Act 1995. Our primary role is to provide air navigation and aviation rescue fire fighting services, which are regulated by the Civil Aviation Safety Authority (CASA).

Our air traffic control services are delivered according to Civil Aviation Safety Regulations Part 171 and Part 172 and underscored by a performance-based air traffic management framework that is aligned to International Civil Aviation Organization standards (ICAO). They are designed to enhance performance in delivering safety, environmental management, capacity, flight efficiency and cost effectiveness. We operate under a number of Acts and more information on these is available at www.airservicesaustralia.com/ acts-and-regulations

Our organisation is responsible for providing safe, secure, efficient and environmentally responsible air traffic management and related services in the Australian Flight Information Region. We also provide, under contract with the governments of Solomon Islands and Nauru, air traffic management in the upper airspace of the Honiara and Nauru flight information regions.

We provide air traffic navigation and surveillance for more than 11 per cent of the world’s surface. This includes the Australian flight information region (see figure 1) and the international airspace over the Pacific and Indian oceans.

We are well equipped to respond to aircraft incidents and emergencies at facilities at major airports with aviation rescue fire fighting services delivered according to Civil Aviation Safety Regulation Part 139H.

We continue to engage our stakeholders through regular participation in Community Aviation Consultation Groups as well as attending industry

FIGURE 1 Australian Flight Information Region

Brisbane

Melbourne

APPROX 5000 mn

Airservices Annual Report 2013-14 16

02 Corporate overview

forums and briefings to develop a common understanding on current and future service delivery requirements.

As the aviation industry continues to grow, there is an increasing need to promote environmentally responsible services and manage the impact of aircraft noise and emissions on the community. We work closely with the community, aviation industry and government to minimise the environmental effects of aircraft operations as well as our own environmental footprint.

Ongoing performance monitoring is also an essential part of our commitment to continually improve our services to our customers and stakeholders.

We deliver:

ƒ en route and terminal air traffic services

ƒ aeronautical data services, such as charts and departure and approach procedures

ƒ management of airspace usage

ƒ tower services at 29 airports

ƒ aviation rescue fire fighting services at 22 of Australia’s international and domestic airports

ƒ noise complaint and information services

ƒ management of Australia’s national air navigation infrastructure.

We manage more than four million flights each year and maintain an asset base valued at more than $1 billion, including 1079 facilities at 743 sites. A list of major air traffic control and aviation rescue fire fighting facilities is available at www.airservicesaustralia.com/about/our-facilities

Airservices Annual Report 2013-14 17

02 Corporate overview

Our customers and stakeholders include airlines, the general aviation industry (including sport and recreational flyers), the travelling public, Australian military, airport owners and operators, and the Australian Government.

We are a world leader in the adoption of advanced communication technology, navigation and surveillance systems. We work closely with Australian Government organisations, particularly those concerned with aviation safety, regulation and search and rescue. These include the Department of Infrastructure and Regional Development, Department of Defence, Department of Finance, Civil Aviation Safety Authority, Australian Transport Safety Bureau, Australian Maritime Safety Authority and Bureau of Meteorology.

We also work closely with the International Civil Aviation Organization (ICAO), the Civil Air Navigation Services Organisation (CANSO) and the International Air Transport Association (IATA) as well as other air navigation service providers. We share information and advances in aviation technology and contribute to improving Australian and global aviation safety standards.

Airservices is committed to its corporate responsibility of assisting the aviation industry in its efforts to reduce the effect of aviation on the environment. This includes developing and maintaining international partnerships that aim to reduce aircraft fuel burn and greenhouse gas emissions.

Enabling legislation, objectives and functions

Airservices operates under the Air Services Act 1995 and the Commonwealth Authorities and Companies Act 1997, which will be superseded by the Public Governance, Performance and Accountability Act 2013 from 1 July 2014.

Under the Air Services Act 1995 we:

ƒ must regard the safety of air navigation as our most important consideration

ƒ provide facilities for the safe navigation of aircraft within Australian administered airspace

ƒ promote and foster civil aviation in Australia and overseas

ƒ provide air traffic services, aviation rescue fire fighting services, aeronautical information, radio navigation and telecommunications services

ƒ cooperate with the Australian Transport Safety Bureau (ATSB) in investigating aircraft accidents and incidents

ƒ help protect the environment from effects associated with the operation of Commonwealth jurisdiction aircraft or other aircraft within and outside Australia’s airspace

ƒ adhere to regulations associated with the operation of Commonwealth jurisdiction aircraft

ƒ undertake functions as required under the Air Navigation Act 1920 and the Aviation Transport Security Act 2004

ƒ provide other services and facilities to maintain or improve the skills of our employees.

In our day-to-day activities we adhere to, and are empowered by, a range of other legislation. More information on those legislative requirements is available at www.airservicesaustralia.com/ acts-and-regulations

Annual reporting requirements and responsible Minister

Airservices is accountable to the Australian Parliament and to the Australian Government through the Minister for Infrastructure and Regional Development, the Hon Warren Truss MP. The Airservices Board is required by

Airservices Annual Report 2013-14 18

02 Corporate overview

legislation to provide an annual report for tabling in Parliament. This report has been prepared in accordance with the Air Services Act 1995, the Commonwealth Authorities and Companies Act 1997 and the Finance Minister’s Orders.

Corporate structure

Due to the growth in aviation, and so we can meet our future challenges and ensure we deliver efficient and reliable services to our customers, a number of structural changes were introduced in 2013-14.

The Safety and Assurance, and Environment business groups were combined to create a single group under one Executive General Manager. This new group, Safety, Environment and Assurance, allows one business group to work across safety and environmental issues. The Information Communication Technology group was also consolidated into the Projects and Engineering group, over sighted by one Executive General Manager. This allows one team to work on both the technology and engineering aspects of the organisation.

In June 2014, Airservices appointed Mairi Barton as Executive General Manager Corporate and Industry Affairs.

Airservices now operates through the following eight business groups and a single division (see Figure 2), managed by Executive General Managers and a General Manager respectively.

Airservices business groups are:

ƒ Air Traffic Control

ƒ Aviation Rescue Fire Fighting

ƒ Corporate and Industry Affairs

ƒ Finance and Corporate

ƒ Future Service Delivery

ƒ People and Culture

ƒ Projects and Engineering

ƒ Safety, Environment and Assurance

Division:

ƒ Learning Academy

Learning Academy

People and Culture

MINISTER

Infrastructure and Transport

Chair and Board of Directors

Aircraft Noise Ombudsman

Board committees

Chief Executive Officer

Aviation Rescue Fire Fighting

Corporate and Industry Affairs

Projects and Engineering

Safety, Environment and Assurance

Air Traffic Control

Finance and Corporate Future Service Delivery

FIGURE 2 Airservices Australia business structure at 30 June 2014

Airservices Annual Report 2013-14 19

02 Corporate overview

The Airservices Executive Committee is made up of the Chief Executive Officer, Executive General Managers representing the business groups, and a General Manager representing the Learning Academy. This committee is responsible for formulating strategies and policies for Board c onsideration.

At 30 June 2014, Airservices employed 4475 staff across Australia.

The Airservices workforce includes specialists in air traffic control, aviation rescue fire fighting, engineering, technical services, information technology, human resource management, communications, legal services, security, safety, environment, financial management and administration. More information on staffing is available in Appendix 5.

Corporate governance

Airservices is governed by a Board appointed by the Minister for Infrastructure and Regional Development, the Hon Warren Truss MP. The Board is committed to best practice in corporate governance and regularly reviews its corporate governance arrangements.

The Board

The Airservices Board consists of a Chair, Chief Executive Officer and as of 30 June 2014, five Board members. Board members other than the CEO are appointed by the Minister.

The Board is accountable for deciding the objectives, strategies and policies to be followed by Airservices and for ensuring that it fulfills its statutory functions in a proper, efficient and effective manner.

The Board delegates responsibility for managing the organisation to the CEO and conducts regular evaluations of its own performance and the performance of its committees. Further information on Board membership is available in Appendix 1.

Board committees

The Board has four committees. Any Board member may attend committee meetings.

The Audit and Risk Committee helps monitor and maintain Airservices risk management system and internal controls, including an extensive audit programme. The committee assures the

TABLE 1 Airservices Executive Committee as of 30 June 2014

Margaret Staib Chief Executive Officer

Greg Hood Executive General Manager Air Traffic Control

Michelle Bennetts Executive General Manager Aviation Rescue Fire Fighting

Mairi Barton Executive General Manager Corporate and Industry Affairs

Andrew Clark Chief Financial Officer, and Executive General Manager Finance and Corporate

Jason Harfield Executive General Manager Future Service Delivery

Andrew Boyd Executive General Manager People and Culture

Mark Rodwell Executive General Manager Projects and Engineering

Dr Rob Weaver Executive General Manager Safety, Environment and Assurance

Linda Spurr General Manager Learning Academy

Airservices Annual Report 2013-14 20

02 Corporate overview

objectivity and reliability of financial reports, helps the Board ensure an effective system of risk management and internal control is maintained, and that Airservices and its members comply with all relevant legislative and other government o bligations.

This includes obligations under the Commonwealth Authorities and Companies Act 1997 and going forward under the Public Governance, Performance and Accountability Act 2013. Membership consists of up to four members. The Board Chair is an ex officio member of the committee.

The Safety Committee helps ensure that Airservices is compliant with all safety-related legislation, government and Board policies, and meets its operational safety and workplace health and safety obligations. The committee also monitors organisational preparedness to counter security threats. Its membership consists of up to four members as well as the Board Chair and CEO, both of whom are ex officio members of the c ommittee.

The Environment Committee helps ensure that Airservices is compliant with all environment-related legislation, as well as Government and Board policies, and that Airservices is meeting its environmental responsibilities. Membership consists of up to four members, the Board Chair and CEO, both of whom are ex officio members of the committee.

The Remuneration and Human Resources Committee recommends remuneration for the CEO and the CEO’s direct reports, and reviews CEO performance and succession. The committee also considers human resource issues as required. Membership consists of three members, the Board Chair and CEO both of whom are ex officio members of the committee.

Meeting attendance and membership information for each Board committee is detailed in Appendix 1 .

Ethical standards

Airservices issues Board-endorsed policies, Management Instructions and other procedures to inform employees, contractors and consultants about required ethical standards. As a condition of employment or engagement with Airservices, all employees, contractors and consultants must comply with Airservices Code of Conduct and Code of Conduct Management Instruction. The Code of Conduct Management Instruction includes principles to guide behaviour and describes how issues such as conflict of interest should be addressed.

In January, Airservices, in line with Government requirements, undertook to be part of the Public Interest Disclosure Act 2013. We are committed to ensuring the highest standards of ethical behaviour and fully support individuals who report wrongdoing or suspected wrongdoing within the o rganisation.

Airservices Ethics Hotline is also available to employees, contractors, consultants and other external parties for confidential reporting of an alleged breach of Airservices Code of Conduct or Code of Conduct Management Instruction. Disclosures received via the Ethics Hotline are reported to the CEO as well as the Ethics and Fraud Committee who oversight action taken in response to a disclosure.

The Ethics and Fraud Committee also oversights implementation of the Ethics and Fraud Framework including promotion of better practice, Ethics and Fraud Control Plan maintenance and reporting of framework activities and ethical and fraud matters impacting Airservices to the CEO and Board Audit and Risk Committee. The chair and three other members of the Ethics and Fraud Committee are also an Authorised Officer for the purposes of the Public Interest Disclosure Act 2013.

Airservices Annual Report 2013-14 21

02 Corporate overview

Risk management

We are committed to best-practice risk management and regard this as integral to effective corporate governance. Our risk management policy is supported by the Board-endorsed Risk Management Framework, which sets out the requirements for risk management throughout Airservices.

All managers are accountable for identifying and managing risks within their areas of responsibility. They must ensure that they are kept informed of how those risks are being managed and report them to the CEO.

The CEO reports regularly to the Board (and relevant Board committees), Executive General Managers and relevant General Managers on initiatives to maintain and improve the organisation’s risk management system.

Strategic direction

To meet the challenges of increasing capacity and complexity, the Airservices 2020 vision is to leverage our unique position to drive the optimisation of the performance of the aviation i ndustry.

The Airservices corporate strategy outlines the organisation’s three strategic themes and the core outcomes that support delivery of our vision.

The core outcomes are arranged under the three strategic themes of:

ƒ maximising safety performance

ƒ high performing organisation

ƒ core operational and business excellence.

We produce our annual Corporate Plan in accordance with the Air Services Act 1995 and the Commonwealth Authorities and Companies Act 1997.

The themes and core outcomes that are detailed in the plan inform key corporate initiatives and aim to meet the Government’s requirements as outlined in the Minister for Infrastructure and Regional Development’s Statement of Expectations (Appendix 2).

Core outcomes are also designed to meet customer expectations, deliver process improvements and efficiencies, and enhance the development of our people and systems.

The relationship between the Statement of Expectations, our Board’s Statement of Intent and specific initiatives is included at Appendix 2 and Appendix 3.

Detailed descriptions of the themes and the core outcomes are included in the Report on Performance section of this annual report.

Adverse effect of non-commercial commitments

No non-commercial commitments were recorded during 2013-14.

MANAGEMENT AND ACCOUNTABILITY

03

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03 Management and accountability

Operational results

Airservices delivers on the expectations of our customers, the Government and other stakeholders to maximise our performance within the Australian aviation industry by:

ƒ maintaining safety as the highest priority for our people and services

ƒ delivering safe, efficient and effective operations

ƒ maintaining a financially viable and sustainable organisation

ƒ minimising the environmental impact of aircraft operations

ƒ fostering civil aviation

ƒ developing services that support the overall efficiency of the industry.

During the financial year, our business groups and division aimed to meet three strategic priorities:

ƒ maximising safety performance

ƒ high performing organisation

ƒ core operational and business excellence.

Key performance indicators on our achievements within these three strategic priorities are available at table 3.

2013-14 financial results

Operating profit after tax was $21.3 million. A final dividend for 2012-13 of $10 million was paid in February 2014. An interim dividend for 2013-14 of $6 million was paid in June 2014.

The after-tax return on average equity was 3.9 per cent, which was 2.2 per cent below target.

During the year, Airservices invested $186.5 million in its capital expenditure programme.

Income

Total income for the year increased by 6.9 per cent to $1 billion, compared to $955 million in the previous year. Gross airways revenue grew by 5.1 per cent across the year. Net airways revenue was $978.5 million after industry rebates of $4.1 million. The rebates will be credited to customers in the first half of 2014-15.

Expenses

Overall expenses increased by 11.2 per cent to $994 million. Employee costs increased by $78.9 million, due to salary increases and increases in staff numbers associated with delivering the capital works program and increased delivery of regional services.

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03 Management and accountability

Ministerial directions

1996—Aircraft noise complaints

In 2013-14, Airservices implemented an Aircraft Noise Management Strategy, with the objective of achieving world’s best practice in noise management. This Strategy is supported by Airservices Commitment to Aircraft Noise Management, which informs the community and aviation industry on how we intend to collaboratively address the impact of aircraft noise. Our Aircraft Noise Management Roadmap tracks progress on the implementation of noise management initiatives.

Our dedicated Noise Complaints and Information Service (NCIS) provides information to the community on aviation activities and helps resolve noise complaints. Airservices also attends airport community consultation forums and meetings to inform the community on Airservices activities and aircraft noise issues.

The Aircraft Noise Ombudsman also conducts independent reviews of Airservices management of aircraft noise-related activities, including the handling of complaints or enquiries made to Airservices about aircraft noise, community consultation processes related to aircraft noise, and the presentation and distribution of aircraft noise-related information.

1997—Sydney Long Term Operating Plan

Airservices continues to provide air traffic management in Sydney under the provision of the Long Term Operating Plan, which seeks to provide a safe and efficient air traffic environment while minimising noise as much as possible for surrounding suburbs.

Airservices closely monitors and reports on its operations through its website and the Sydney Airport Consultative Forum.

1999—Responsibilities in relation to the environmental effects of aircraft

We continue to promote high quality environmental practices for aircraft operations and work closely with airlines and airports to achieve this. The introduction of new technologies will deliver benefits in safety and efficiency, as well as savings in fuel, emissions and travel time. We provide noise and flight path monitoring systems, and our NCIS provides information to the public on noise issues. During 2013-14, a number of new information sources were developed and are available at www.airservicesaustralia.com/ publications/noise-reports

These include an Aircraft Noise Management Strategy, fact sheets, noise information reports and airport profiles. Airservices and the Australian

TABLE 2 Ministerial directions still current from previous fi nancial years.

Calendar year Date of issue Subject

1996 29 May Handling of aircraft noise complaints at Sydney and other federal airports.

1997 30 July Progressive implementation of the Sydney Long Term Operating Plan.

1999 3 May Responsibilities in relation to the environmental eff ects of aircraft.

2004 31 August Provision of approach radar services at specifi c airports.

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03 Management and accountability

Airports Association (AAA) also launched in November 2013 a new aircraft noise website www.aircraftnoise.com.au

2004—Provision of approach radar services at specific airports

Airservices continues to provide radar approach services using surveillance at identified regional airports to facilitate safe and efficient growth of aviation within Australia.

Regional Approach Services (RAPPS) involves a phased introduction of regional air traffic services using surveillance across seven locations: Hobart, Launceston, Rockhampton, Mackay, Hamilton Island, Sunshine Coast and Alice Springs.

Significant changes in the state of affairs during the financial year

Under transitional arrangements, a number of duties under the Work Health and Safety Regulations 2011 came into effect on 1 January 2013. The impact of these changes on our organisation has been reviewed, with necessary changes implemented to ensure legal compliance and training provided to staff.

Our Aviation Security Identification Card (ASIC) programme was rewritten in 2014 as required under the Aviation Transport Security Act 2004 and the Aviation Transport Security Regulations 2005.

Developments since the end of the financial year

Changes to legislation

From 1 July 2014, the Public Governance, Performance and Accountability (PGPA) Act 2013 commenced. The PGPA replaces the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997.

New Board members

Mr David Marchant AM was appointed to the Airservices Board for three years. His term commences on 21 July 2014 and will end on 20 July 2017. Mr Marchant formerly was Managing Director of Lend Lease Engineering and Infrastructure Services and a former CEO of the Australian Rail Track Corporation and Director and Chair of the Australian Railway Association. He also served as a Director of the Rail Industry Safety and Standards Board.

Mr Tim Rothwell has been appointed to the Airservices Board for three years. His term commences on 21 July 2014 and will end on 20 July 2017. Mr Rothwell held the role of Chief Financial Officer for Brisbane Airport Corporation for almost 20 years until 2013.

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03 Management and accountability

TABLE 3 Key performance indicators against our Corporate Plan 2013-2018

Performance measure Purpose and definition 2013-14 target 2013-14

actual

Three-year average per year

Maximising safety performance

Air Traffic Service (ATS) attributed en route Loss of Separation (LoS)* rate.

ATS attributed number of en route LoS* occurrences per 100 000 flight hours.

0* 1.48 1 1.41

ATS attributed terminal area LoS* rate. ATS attributed number of terminal area LoS* per 100 000 movements

(12-month moving average).

0* 1.36 2 1.73

ATS attributed tower LoS* rate. ATS attributed number of tower LoS* per 100 000 movements (12-month

moving average excluding General Aviation Aerodrome Procedures (GAAP) towers).

0* 0.57 3 0.53

ATS attributed runway incursions.

Number of International Civil Aviation Organization (ICAO) Class A or B Airservices ATS attributable runway incursions.

0 1 4 0.67

Aircraft in critical proximity.

Number of instances where an evasive movement was required to avoid a collision.

0 2 5 New KPI

cannot be calculated.

Lost-time injury frequency rate.

Where a lost-time injury is defined as an occurrence that resulted in a fatality, permanent disability or time lost from work of one day/shift or more.

0 3 6 New KPI

cannot be calculated.

WHS incident rate. Occurrences per 100 staff per month. <0.20 0.53 7 0.65

* Loss of Separation (LoS) is a breach in the prescribed minimum distance between an aircraft and another aircraft or object. To proactively improve safety and seek a downward trend in occurrences, Airservices has adopted an aspirational target of zero LoS attributed to air traffic services.

1. ATS attributed en route LoS rate is a result of 26 occurrences. Of the 26, five are currently under review or awaiting investigation.

2. ATS attributed terminal LoS rate is a result of 18 occurrences. Of the 18, four are currently under review or awaiting investigation.

3. ATS attributed tower LoS rate is a result of 17 occurrences. Of the 17, two are currently under review or awaiting investigation.

4. The reported occurrence was also categorised as an Aircraft in Critical Proximity and related to a departing aircraft being cleared for take-off when another aircraft had been cleared to operate in an area that encompassed the upwind runway threshold of the runway being used by the departing aircraft.

5. In this reporting period, one of the occurrences related to a departing aircraft being cleared for take-off when another aircraft had been cleared to operate in an area that encompassed the take-off path of the departing aircraft. A second occurrence was the result of an arriving aircraft being re-cleared to a runway and coming in close proximity to another aircraft on approach to an adjacent runway.

6. There has been a marginal increase in this rate over the reporting period. We continue to deliver our Wellness at Work workshops as a preventative measure and the Injury Management System (IMS), which incorporates early intervention, is also becoming well established within the organisation.

7. The WHS Incident rate has increased, however, in the same period the number of serious injuries decreased to zero.

Airservices Annual Report 2013-14 27

03 Management and accountability

Performance measure Purpose and definition 2013-14 target 2013-14

actual

Three-year average per year

Safety Management System (SMS) maturity benchmark.

External assessment of the maturity of Airservices SMS against Civil Air Navigation Services Organisation (CANSO) Standard of Excellence in SMS.

2013-14 top industry quartile

Achieved 8 New KPI cannot be calculated.

High performing organisation

Employee survey—values focused. Engagement score expressed as a percentage of satisfaction and specific

values-related results.

75.00% N/A 9 76.00%

Increased diversity. Increases in the number of women in non-traditional roles and participation of Indigenous Australians and people with disability.

Percentage increase -0.62% 10 2.20%

Employee initiated separation.

Number of employee initiated separations per year as a percentage of Airservices workforce.

<5.00% 2.70% 3.71%

Succession management and career development. Career ratio-transfers and promotions per year as a percentage of permanent

senior management vacancies.

80.00% 43.24% 11 New KPI

cannot be calculated.

8. Airservices achieved its target to be in the top industry quartile and the Safety Management System was assessed as being the second most mature of over 40 air navigation service providers tested.

9. Airservices undertakes the employee engagement survey once every two years. The next survey is scheduled for 2014-15. Our 2012-13 survey result was 77 per cent. We conducted a short form pulse survey of employee engagement during the third quarter 2014 with an improved result of 80 per cent.

10. A Diversity Council endorsed program of initiatives continues to be implemented, with progress reviewed by the Council on a quarterly basis. From 2011-12 to 2013-14, representation of women in operational roles has increased from 239 females to 283 females. Representation of Indigenous people has risen from 31 to 41 Indigenous staff. Representation of people from culturally and linguistically diverse backgrounds has decreased to 298 staff from 300 along with people with a disability from 58 to 52 staff.

11. As part of our ongoing management and leadership capability development, leadership enhancement development commenced with the Executive team and is being cascaded through to the Senior Leadership Team, following a 360 degree feedback evaluation process.

Airservices Annual Report 2013-14 28

03 Management and accountability

Performance measure Purpose and definition 2013-14 target 2013-14

actual

Three-year average per year

Training demand. Number of qualifications issued against accredited training (ARFF). 175 263 New KPI

cannot be calculated.

Training demand. Number of Air Traffic Services (ATS) recruits endorsed (ATC). 80 60 12 New KPI

cannot be calculated.

Core operational and business excellence

Capital project delivery. Percentage of projects delivered on time and within budget. > 90.00% 83.00% New KPI

cannot be calculated.

ATS availability. Hours of ATS availability as a

percentage of total hours of coverage. >99.90% 99.82% 99.92%

Aircraft holding. Ground holding as a percentage of total of aircraft holding at Sydney, Melbourne and Brisbane.

60.00% 45.32% 13 51.80%

ATS attributable delays. Total number of ATS attributable flight delay events (where the delay is greater than 10 minutes, and demand is less than airport capacity).

<7 per quarter

(10 at an average of 2.50 per quarter)

Average of 5.10 per quarter

Runway capacity improvement.

Percentage increase in maximum hourly runway movement capacity through new ATS initiatives at major aerodromes (excluding movement capped aerodromes),

≥ 3.00% N/A Cannot be

calculated.

Runway capacity achieved.

Percentage of maximum runway movement capacity delivered during peak periods.

>95.00% 101.94% 14 99.79%

Aviation Rescue Fire Fighting operational preparedness.

Percentage of time resources were available to meet required capacity according to the regulated service category for the aerodrome.

99.90% >99.89% 99.79%

Noise complaints and information service (NCIS) compliance.

NCIS compliance to prescribed response times for complaints and enquiries.

≥95.00% 99.00% 94.00%

12. An internal air traffic controller Endorsement Rate Taskforce was formed in March 2014 to proactively manage an identified shortfall in the intake of external recruits and endorsed air traffic control numbers for the 2013-14 financial year.

13. Sydney and Melbourne airborne delay figures are not available. Both airports have been excluded from the results.

14. The result for 2013-14 exceeded the maximum calculated capacity.

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03 Management and accountability

Performance measure Purpose and definition 2013-14 target 2013-14

actual

Three-year average per year

Community Aviation Consultation participation.

Airservices participation at community aviation consultation group meetings. ≥90.00% 100.00% New KPI

cannot be calculated.

Noise improvements investigated. Number of noise improvement proposals investigated.

25 per year 41 New KPI

cannot be calculated.

Noise improvements delivered. Number of changes expected to deliver an improved noise outcome for

the community.

Percentage increase 14 (133.00% increase

from 2012-13) 15

New KPI cannot be calculated.

Noise information. Aircraft noise information and complaint reports made available to the community and industry.

Reports for 11 identified locations every quarter.

44 New KPI

cannot be calculated.

Stakeholder satisfaction. Percentage of key stakeholders across international and domestic airlines, airports, Government agencies and key industry bodies who are satisfied to very satisfied with their relationship with Airservices and with the organisation’s service delivery.

>80.00% 92.00% 91.00%

15. In 2012-13 six noise improvements were delivered but not reported.

04REPORT ON PERFORMANCE

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04 Report on performance

Maximising safety performance

The safety and integrity of Australia’s air navigation system, along with the wellbeing of our people, are Airservices most important considerations. Airservices safety performance is reliant on the delivery of safe and resilient aviation services and effective industry and regional collaboration to reduce risk. The safety of all who use and contribute to the delivery of these services is integral to Airservices safety performance.

When considering maximising safety performance, there are three core outcomes that should be achieved.

ƒ Increased public and stakeholder confidence in aviation safety. Measurable improvement in the level of public and stakeholder confidence in Airservices and its safety performance through targeted and measured safety promotions, communications, community engagement and alignment.

ƒ Improved safety of our people- an organisation Work Health and Safety (WHS) plan and training programme that delivers measurable safety improvements making Airservices a safer place to work.

ƒ Improved cross-industry safety performance enhancing internal and external safety performance through the delivery of air traffic management and aviation rescue fire fighting services.

Continuously improving safety

Our focus on improving safety at regional aerodromes for the public and aircraft owners and operators continued in 2013-14 through the delivery of new services including an enhanced surveillance advisory service for Sunshine Coast and Alice Springs airports.

The introduction of approach services continued and Airservices has implemented the following surveillance arrangements for regional airports:

ƒ an Enhanced Surveillance Advisory Service for Sunshine Coast Airport on 30 November 2013, Alice Springs Airport on 5 December 2013

ƒ Mackay received an enhanced approach and surveillance advisory service in February 2014

ƒ the combined en route console for Rockhampton and Mackay airports was implimented on 30 January 2014.

We also undertook traffic growth risk assessments for Albury, Alice Springs, Broome, Coffs Harbour, Hamilton Island, Karratha and Tamworth airports.

Airservices chaired the Australian Runway Safety Group and commenced a significant runway safety programme with our industry partners. This included an initiative by ICAO and CANSO to improve runway safety globally. The group established local runway safety teams at 28 major and regional airports, and undertook a

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04 Report on performance

comprehensive industry awareness campaign. The Runway Safety Group will enable Airservices to deliver best-practice responses to safety threats that arise during everyday operations.

Airservices also sponsored the Australian International Pilots Association to conduct an airline liaison representative course in Perth. This course was designed to inform pilots on airport operations and enable them to assist airports with their safety and operational enhancement programmes. A total of 23 people participated in the course from major airports, general aviation, major and regional airlines, the Royal Australian Air Force and Civil Aviation Safety Authority.

Community and stakeholder engagement

Airservices is committed to being a sustainable business leader within the aviation industry. We have a number of stakeholder groups and industry partners we work collaboratively with and regularly participate in forums and industry consultation to lead activity within the aviation industry. We work to increase public awareness and stakeholder confidence in our organisation to deliver services and to engage with industry partners and stakeholders.

In 2013-14 we participated in the following major stakeholder and industry forums:

ƒ Australian Airports Association annual conference

ƒ Airport Community Aviation Consultation Groups (CACG) at 21 airports

ƒ Airspace Protection Task Force

ƒ Australian Strategic Air Traffic Management Group

ƒ Civil Air Navigation Services Organisation meetings

ƒ International Civil Aviation Organization meetings

ƒ Industry Noise Forums

ƒ National Airports Safeguarding Advisory Group

ƒ Pricing Consultative Committee

ƒ Qantas Air Traffic Management Performance Group

ƒ Regional Airspace and Procedures Advisory Committee

ƒ Regional Aviation Association of Australia- annual conference

ƒ Waypoint—our annual industry conference.

Additionally, our aviation rescue fire fighting service represented Airservices at more than 170 community events nationally as part of our community awareness safety programme.

A more detailed list of our industry partners, stakeholders and industry forums is available at Appendix 8.

Sustaining leadership

We undertake the following engagement activities in our role as a responsible corporate leader.

Employees—we engage with our employees through a range of different methods including staff newsletters, CEO Direct email, staff magazine, Azimuth, AvNet, our intranet site, employee surveys, corporate emails, executive presentations, internal staff meetings and training and development.

Stakeholders—we engage with our stakeholders through regular briefings, attendance at monthly, bi-monthly and annual meetings and conferences, corporate publications and the Airservices website.

Government—our ongoing engagement with Commonwealth, state and local governments is coordinated through the Corporate and Industry Affairs business group.

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04 Report on performance

IN PROFILE

Operation Skysafe Australian Transport Safety Bureau research shows Australia has one of the lowest losses of separation occurrence rates attributable to civilian air traffic control in the world.

However, to ensure that the level of our safety performance is further enhanced, Airservices established a safety taskforce, Operation Skysafe, in October 2013.

The taskforce is examining Loss of Separation events to assess the quality of existing risk controls and assurance activities. The taskforce will focus on four areas: best use of airspace, technology, people and training.

The taskforce is examining the potential for system improvements for conflict detection, reviewing the way air routes are structured, and looking at additional options to better support air traffic controllers, including additional ongoing training.

An early recommendation by the taskforce was to examine all single air routes, where aircraft travel to and from a destination on the same route but at different altitudes. The taskforce will review all single routes and assess which routes need to be duplicated so that aircraft can travel on parallel routes, avoiding the possibility of a conflict.

The first route to be examined was between Melbourne and Cairns. Work is now underway to duplicate this route, and this is expected to be completed by November 2014.

Operation Skysafe will complete its work in September 2014 and will make recommendations in the areas of airspace management, safety features within existing air traffic management systems and training of operational s taff.

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04 Report on performance

Community—we provide information to the community and incorporate community feedback into our planning, decision-making and implementation processes through regular attendance at Airport Community Aviation Consultation Group meetings. Airservices is not a formal member of these groups, but is invited to attend to provide information and contribute to di scussions.

Stakeholder engagement

From 12 December 2013, CASA required all aircraft flying at and above 29 000 feet to be ADS-B compliant and from 6 February 2014, all newly registered Instrument Flight Rules aircraft to be ADS-B capable.

Airservices has continued its engagement with industry throughout the year to promote ADS-B fitment to Australia’s major airlines and operators, including international and regional airlines. To date, 99 per cent of aircraft flying at or above 29 000 feet have been fitted with ADS-B technology and 69 per cent of Australian registered business jets were compliant as of 30 June 2014.

Our consultation continued on navigational aid and surveillance service outages associated with equipment upgrades and replacement. We also held a collaborative decision-making forum with industry in July 2013 to discuss meteorological forecasts that impact daily airport traffic rates.

We upgraded our website to make it more accessible to industry and the community. This included the development of a new online newsroom to allow journalists easier access to Airservices media activity including media releases, notifications, video and images. The newsroom went live in June 2014.

During 2013-14, Airservices hosted several major f orums.

The Air Traffic Services and Airline Safety Forum provided an opportunity to engage with airline partners through discussions and presentations on the theme, ‘analysis to action’. The focus was on capability and risk analysis, and was attended by representatives from more than 20 airlines.

Airservices and the Australian Airports Association (AAA) jointly arranged the fourth annual industry Noise Forum on 6 February 2014. Discussions were held with industry partners as part of the forum to develop and produce better noise outcomes for communities. We also hosted our annual industry forum, Waypoint, in November 2013.

In February 2014 we co-hosted the second Demand and Capacity Forum with Brisbane Airport Corporation. The forum’s objective was to follow up on initiatives designed to improve airport and airline efficiencies.

Airservices launched its Aircraft Noise Management Strategy in November. This will inform the community on our commitment to minimising and, where possible, reducing the impact of aircraft noise with a view to achieving world’s best practice in aircraft noise ma nagement.

This strategy will be implemented through our Airservices Commitment to Aircraft Noise Management document and Airservices Aircraft Noise Management Roadmap.

Airservices, as a Registered Training Organisation,

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04 Report on performance

maintains regular engagement with industry on matters of education and training, particularly within the Vocational Education Training sector. Such engagement involves industry skills councils, other education providers and enterprise registered training organisations, including Defence.

Safety collaboration within the Pacific region

Arabian Sea Indian Ocean Coordination Group

In November 2013, Airservices hosted the eighth annual meeting of the Arabian Sea Indian Ocean ATS Coordination Group in Melbourne, which was combined with the fourth Indian Ocean Strategic Partnership to Reduce Emissions annual conference.

The conference brought together air navigation service providers from Central and South East Asia, the Middle East and Africa to discuss best practice air traffic management.

Indonesia

We continued to deliver safety and capacity-building programmes to air navigation services providers in our region through ongoing support and direct provision of services. In 2013-14, there was a renewed focus by Australia and Indonesia on safety collaboration and airspace boundary coordination with an agreement to share ADS-B surveillance data.

Sharing this information will be important to reduce the risk associated with breakdowns of coordination and loss of separation, enabling air traffic control to have a clearer picture of air traffic on or near our shared airspace boundary with Indonesia.

We continued our support for the Indonesia Transport Safety Assistance Package, an

Australian Government funded initiative designed to improve the safety of transport within Indonesia. We provided support for the transition to a single air navigation services provider, AirNav Indonesia, by facilitating corporate planning workshops and supporting the establishment of a one and a five-year corporate plan for the organisation. We also delivered training to staff in the Makassar air traffic services centre on boundary coordination issues.

We continue to explore options for a trial of automatic data messaging with the Jakarta air traffic services centre and signed a memorandum of cooperation on safety, plus a letter of agreement on the exchange of safety information, with AirNav Indonesia in Jakarta in July.

Papua New Guinea

Airservices participated in the 10th South West Pacific Safety Forum in Papua New Guinea in November 2013. We provided input on maintaining and improving the safety and services of civil aviation in the region as well as responding to the changing needs of the aviation industry. Other participating countries included Fiji, Nauru and Solomon Islands. During the forum, new Terms of Reference were signed and workshops on safety-related topics were held.

Papua New Guinea Air Services Limited (PNGASL) agreed to ADS-B data sharing within the next two years, following the introduction of its new ADS-B equipment.

We also conducted a review of PNGASL’s maintenance and engineering capability during the year. Working with PNGASL we developed an improvement plan and conducted training on project safety practices. Assistance was also provided to boost Papua New Guinea’s aeronautical information services capability. The review will also determine PNGASL’s future capability needs and support its infrastructure modernisation programme.

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04 Report on performance

Nauru

We continued our commitment to improving safety in the Pacific by renewing arrangements for the provision of upper airspace management services in the Nauru Flight Information Region for the next 10 years.

Solomon Islands

A five-year agreement was signed with Solomon Islands in early 2014 to renew the arrangement for the provision of upper air space management in the Honiara (Solomon Islands) Flight Information Region. Under the agreement, Airservices will assist Solomon Islands develop its capability to deliver lower level airspace services.

Timor-Leste and Vanuatu

We upgraded telecommunication networks for Timor-Leste and Vanuatu. This upgrade enables new International Civil Aviation Organization (ICAO) flight plan formatting, reduces compliance problems for Airservices and fulfills commitments to these countries and the ICAO regional office.

Recognition internationally

Airservices continued its close cooperation and support of international air navigation service providers throughout the year. This culminated in Airservices, along with Air Traffic and Navigation Services of South Africa and the Airports Authority of India, being awarded the IHS Jane’s Award for service provision to the aviation industry. IHS Jane’s is a highly respected global information company and publisher of the international magazine Airport Review. The award was for establishing a User Preferred Route geographic zone in the Indian Ocean.

Air navigation service providers across the world face a number of common issues, including challenges in estimating future demand

for air traffic controllers and constraints on controller sc heduling.

In July 2013, the Committee of the United States National Academy of Sciences invited Airservices to present our approach for determining air traffic controller staffing. This invitation recognised our international standing in air traffic operations, particularly air traffic controller staffing, workforce planning and training, levels. This information was used as part of an international benchmarking e xercise.

Airservices represented Australia at the ICAO global tracking meeting, as part of the Australian Government delegation in May 2014.

Taking care of our people

In late 2013-14 Airservices launched its new Work Health and Safety strategy, Safe and Well. The strategy aims to support each business group in establishing and implementing a work health and safety management plan, and assists in building activity to embed health and safety in all that we do.

The following three objectives were identified:

ƒ Safe design and effective risk management—a safe work practice forum was held with staff on work design and addressed barriers to health and safety. Workshops also generated ideas on how to improve work, health and safety outcomes.

ƒ System and risk control reviews for hazardous work—our performance monitoring has developed through better assurance programmes and lead indicators for performance management. We implemented an action plan in a high-risk work area to address the impact of body stress injury, delivering safe design and risk management principles to equipment procurement, work practices and skills training.

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04 Report on performance

ƒ Worker well-being—during the year we launched an online health portal which provides access to mental health resources for managers and staff. We also established executive management health checks.

In May 2014 we held our National Day of Safety. The day was themed around well-being and First Care (early intervention and injury management). We continue to develop resources and education initiatives for early intervention and commenced management wellness at work coaching programmes, helping to identify managers at risk.

Safety training is a major priority for Airservices and we have undertaken crisis management exercises with staff at Cairns, Sydney, Melbourne, Adelaide, Brisbane and Perth. Our new WHS strategy also aims to support business areas to reduce their lost time due to injury, with a particular focus on aviation rescue fire fighters.

As part of our injury reduction and recovery programme we appointed a staff member to oversee the actions designed to reduce the incidence and severity of lost time injuries within our Aviation Rescue Fire Fighting (ARFF) business group.

Managing safety and security

Airservices has formalised its Aviation Security Identification Card (ASIC) issuing processes with airports to ensure tighter security controls and enable information sharing between national aviation security stakeholders.

This process will now better inform Airservices on how we meet our regulatory requirements. It will also help create a positive security culture by providing agreed and documented policies, and procedures for Airservices as an ASIC issuing body.

A key focus for Airservices this year was raising the awareness of information security across the organisation and providing staff with a series of

Australian Signals Directorate-approved security videos to better inform them of the need for information security.

We developed an information security strategy to align Airservices security protocols with Australian Government objectives described in the Protective Security Policy Framework and Information Security Manual.

To ensure continuous improvement in our safety management systems, we implemented a normal operations safety survey during the year at more than 100 radar tower operations to assess safety procedures and practices.

We also reviewed our approach to safety training including redeveloping courses, and launched an updated safety-training requirement. We simplified our safety management system documentation and tools and launched a training plan. We conducted a pilot course in investigator training and this is now being refined before being rolled out across the organisation.

Our revised safety training courses—SMART, SMARTER and Leading Safety—are now being implemented and receiving positive feedback from staff. To date, 21 per cent of the organisation has completed training in SMART or SMARTER with 10 per cent of leaders having completed Leading Safety. These rates are on track for the

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04 Report on performance

December 2016 completion date for all Airservices employees.

Secure communication

In line with our increased focus on combating information security and cyber incidents, our security team implemented a security incident system to enable early detection of suspicious or abnormal activity on the Airservices network.

This system collects information from various sources to identify and analyse patterns rapidly allowing immediate awareness of potential issues. The system has significantly decreased the time required for security personnel to gather information during investigations and can detect abnormal behaviour, such as multiple incorrect password attempts.

The security system has also been upgraded at the Alan Woods Building in Canberra to ensure business continuity in the event of an emergency.

Predictive tools and frameworks

The Operational Data and Analysis Suite (ODAS) was implemented during the year to provide a single source of information designed to improve the ability of Airservices to undertake complex operational analysis. ODAS can provide flight, sector and route information to report on air traffic control workloads, emissions, fuel burn, airspace operational risk and usage.

For example, a single set of flight information for all Australian aircraft movements, in real time, will be used as the basis for all future analysis. This will improve the speed and accuracy of our analysis and help develop skills and capability.

ODAS will be the basis for future initiatives, which are expected to produce ongoing major benefits and outcomes for Airservices and the aviation industry.

A flight plan safety alert was implemented into the Upper Airspace East air traffic control sector in December 2013. Upper airspace controllers will use this tool to automate flight path conflict detection between aircraft and to provide early notification about present or possible aircraft conflicts.

Operational airspace design

Airservices completed several airspace reviews during the year to investigate air traffic safety and efficiency. This included consultation for the Adelaide and Brisbane Basin airspace and also work on the Darwin traffic management plan.

Airservices obligations and compliance

Airservices launched a new Corporate Integrated Reporting and Risk Information System (CIRRIS) module in September for obligation and compliance management. This module is a fully integrated system for managing legal and regulatory obligations and risks within Airservices.

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04 Report on performance

The achievement of Airservices vision is dependent on its people, leadership and culture. To achieve this objective, Airservices needs to attract and retain talented people; build a flexible, empowered and engaged workforce; and develop inspiring, values-based leadership.

When considering the theme of high performing organisation, there are four core outcomes that should be achieved.

ƒ Our people are engaged and valued—a diverse workforce that is enthusiastic about its work and the future of the organisation’s shared vision. This is reflected in continual improvement, both in respect to the work being undertaken and in the interactions across the organisation.

ƒ A culture of service and delivery both internally and externally—a fully developed and embedded service delivery philosophy that clearly supports the role we all play in delivering services both internally and externally.

ƒ A high-performance team—an organisation where all employees share a core set of values, work collaboratively, have clearly defined roles and are supported by systems that identify, develop and retain talent.

ƒ Strong and effective leadership—leaders, at all levels, who live the values, working collaboratively to deliver the organisation’s vision. A leadership team that is diverse, bringing together experience across the business and new knowledge.

Creating an effective workplace

Consultation on workforce needs continued with senior managers across our business groups during 2013-14. Planning was undertaken at both the business group and corporate level on workforce supply and demand, workforce gaps, critical roles and strategic human resource development.

We have made significant progress in identifying key retention risks within the business through the development of our Workforce Plan 2013-2020, which will enable us to more effectively adopt specific strategies to reduce these risks in the future.

We are progressing well against each of our workforce strategies and in planning and mitigating the risks identified in our Workforce Plan 2013-2020. We are developing strategies to reduce turnover of short tenures, retain mature-age workers, present and encourage participation in leadership courses, and in planning for succession.

Diversifying our workforce

We recognise and value diversity, and we are committed to increasing the representation of Indigenous Australians, women, people with disability and people from culturally and linguistically-diverse (CALD) backgrounds within our organisation. We are also committed to

High performing organisation

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IN PROFILE

A stronger organisation Aviation in Australia is facing unprecedented challenges over the next decade and air traffic movements are expected to grow by as much as 60 per cent by 2030. This growth will place increased demand on Airservices.

We are committed to improving service delivery and preparing for the challenges presented by this aviation growth. Our goal is to deliver improved services while remaining true to our vision and mission—connecting the Australian aviation industry to deliver world-best industry performance by providing safe, secure, efficient and environmentally responsible services.

To enable Airservices to meet the increased demand on our services we are delivering a $1 bi llion dollar capital expenditure programme and are procuring and transitioning to OneSKY Australia, a civil-military harmonised air navigation system. To make this transition effectively and efficiently, we need to ensure that we have the people in

place with the right skills and capabilities as we move our business focus to being more customer-centric.

To support this, we are developing a stronger and fit-for-purpose culture. This has commenced with the implementation of the ‘Our people, our future’ culture programme, which is a core element of our transformation to a customer focused o rganisation.

The culture programme aims to place the customer at the heart of everything Airservices does. This will mean increasing our collaboration within the organisation as well as with stakeholders and ensuring that

we work as one team. The flow-on benefits of this will improve the way we work with our customers and allow us to invest in our people while continuing to maintain safety as our highest p riority.

While ‘Our people, our future’ will take some time to implement, Airservices is committed to investing in our people to develop their capabilities and knowledge to foster a workplace where people are valued, supported and encouraged to do their best.

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providing flexible working arrangements and supporting our mature-aged workforce.

As part of this commitment, we participated in the Chief Executive Women’s Group and started a programme of ‘Women in Airservices forums. More information on our performance in this area is outlined in Appendix 5.

Training our people

We are an enterprise Registered Training Organisation and provide nationally accredited training qualifications for our employees. We are committed to ensuring our people are well trained and fully equipped to deliver the high level of service expected of the organisation, and to progress their careers.

In November 2013, Airservices achieved Registered Training Organisation reaccreditation for the maximum five-year term. Our dedicated Learning Academy delivered in excess of 740 courses to more than 4000 staff.

Our Learning Academy was confirmed as one of three finalists in the 2014 Victorian Training Awards in the category of ‘Employer of the Year’. The winner will be announced on 26 September 2014.

In 2013-14, Airservices approved a new framework for mandatory training. The framework will involve assessing and validating current, non-accredited corporate training, identifying future requirements and defining the roles, accountabilities, processes and systems to support this training.

We are developing a new education and training strategy to establish a governance framework and guiding principles for the design, development and delivery of education and training. This will be an important tool for reviewing all of our non-accredited and non-op erational programmes.

We also designed, created and implemented a safety training programme along with a leadership strategy framework to ensure learning outcomes are achieved and fit with Airservices new culture programme ‘Our people, our future’.

We have implemented improvements in our recruitment processes and are developing a greater understanding of the capabilities required in the trainees we need to attract to the business both as air traffic controllers and aviation rescue fire fighters. Throughout 2013-14, we continued to benchmark our performance against international industry standards to measure and identify process efficiencies for air traffic control and aviation rescue fire fighting accredited c ourses.

Providing for a skilled w orkforce

In support of this regional growth and to maintain safety standards, Airservices Learning Academy graduated 118 recruits through five recruit courses these were in Certificate II in Public Safety (Firefighting and Emergency Operations)— compared to 68 recruits in 2012-13. We are also increasing our efforts in the area of recruitment activity to attract more staff to the organisation.

We delivered 21 air traffic control recruit courses in 2013-14, representing a 31 per cent increase. Our Learning Academy also held seven graduation ceremonies during 2013-14.

Airservices completed the transition of five qualifications (Certificate II through to Advanced Diploma) from the Public Safety Training Package (PUA00) to the new PUA12 Training Package on 12 March 2014. In addition, in collaboration with Defence and the Transport Logistics Industry Skills Council the Diploma of Aviation (Air Traffic Control) has been reviewed and redrafted with endorsement scheduled for December 2014.

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Technical training

Our technical trainee course is customised to the core needs of Airservices in communications, navigation and surveillance. Graduates work at various locations around Australia and play a crucial role in helping to maintain safety-critical aviation equipment including instrument landing systems, radars and other air navigation aids.

We have a collaborative arrangement with Riverina Institute of TAFE NSW to deliver accredited training against our technical trainee programme, complimented by Airservices training and field placements.

During the reporting period 13 trainees graduated from the Riverina Institute of TAFE in Wagga Wagga. Six of these graduated with a Diploma of Engineering in Electronics and Communications, and seven with a Diploma in Electrical Engineering. Our 2014 technical trainees and graduates commenced in February 2014 and our 2013 participants transitioned to their permanent roles within the organisation.

Front-li ne training

In 2013-14, Airservices committed to establishing an agreed training programme for all air traffic controllers, aviation rescue fire fighters and technical and engineering recruits. This

training will be adapted to our business requirements and will be managed through a defined framework. A total of 397 courses were

delivered during the year to 1606 participants.

We also began transitioning to full en route practical simulation training in our Learning Academy’s Eurocat simulator from mid-F ebruary 2014. The Eurocat simulator increases the reliability and complexity of our training and delivers a more sophisticated instruction and training scenario.

The ARFF business group introduced new advanced driver training to improve the knowledge and skills of driving aviation rescue fire fighting vehicles under emergency response conditions.

This course covers a number of areas including the vehicle-operating environment, systems of vehicle control, driving vehicles under emergency conditions, vehicle observation techniques and emergency hazard avoidance. To date we have delivered 36 courses to 360 aviation rescue fire fighters.

We used our state-of-the-art Hot Fire Training Ground for training ARFF recruits for 48 weeks during 2013-14, with four weeks set aside for planned maintenance.

Effective workplace

The first stage of our Integrated Management System (IMS) has been commissioned. It will deliver a consistent and secure process, and the ability to address compliance risks. Stage two will include development of improved processes for our Projects and Engineering, and Safety, Environment and Assurance groups.

The IMS will be extended to our Finance and Corporate, and People and Culture groups.

Our Services Charter has received endorsement by the Pricing Consultative Committee. Through the Services Charter we are able to agree on service delivery standards that enable our performance to be measured and reported.

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Airservices Board and Executive endorsed the employee and union engagement and consultation strategy for business initiatives, including Future Service Delivery implementation.

We have continued to engage and consult with unions throughout the year on award modernisation and commenced a review of existing employee conduct-related incident reporting mechanisms to develop improved policies and procedures.

Our employee relation’s strategy was brought in line with our business strategy and has progressed, with an Airservices award application submitted to the Fair Work Commission in December 2013. This is part of the Australian Public Service award modernisation application.

This led to the Airservices Corporate Enterprise Agreement being approved by the Commission and taking effect on 4 September 2013. We also successfully negotiated the Air Traffic Control Line Manager Enterprise Agreement following an agreement with Civil Air. The agreement received endorsement by the Fair Work Commission and was implemented in May 2014.

Our people

The CEO chairs the Diversity Council to oversee implementation of our Diversity Strategy within each business group. This strategy is in line with our Workforce Plan 2013-2020.

The council also oversaw delivery of the first Reconciliation Action Plan Progress Report to Reconciliation Australia in March 2 014. A Gender Action Plan was also developed and endorsed by the Diversity Council in April 2014. A key aspect of the plan is a commitment to increase the number of women in leadership roles and a greater number of women in operational and non-traditional roles.

In December 2013, we provided information to staff on the new anti-bullying policy and

procedures to advise them ahead of changes to the Fair Work Act. This information was provided on our intranet and by face-to-face meetings with staff.

We have implemented a Skills Framework for the Information Age, an internationally recognised framework that enables the identification of information communication technology (ICT) skills and levels of competency. This initiative supports the Airservices Workforce Planning Job Family Framework and will enable the identification of ICT skill levels and gaps in capability to improve succession planning and facilitate staff development.

Ethics and fraud

Key policy, procedures and plans are reviewed as part of ongoing implementation and improvement of the Ethics and Fraud Framework. The Code of Conduct, Code of Conduct Management Instruction, Code of Conduct Investigation Procedure, Fraud Control Policy, Ethics and Fraud Control Plan and Ethics Hotline procedure were reviewed and updated, as were the terms of reference for the Ethics and Fraud Committee, which meets quarterly to review ethics and fraud related matters.

Planning our workforce

Airservices Workforce Plan 2013-2020 includes a profile of our workforce, the key workforce challenges and risks we expect to occur over the next six years as well as the strategies we are implementing to mitigate these.

The main focus for the past year has been to:

ƒ review and improve our enterprise-wide approach to workforce planning in response

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04 Report on performance

to OneSKY Australia to improve the consistency of information supporting the workforce forecasts

ƒ clarify the accountabilities between stakeholders and increase the awareness of and participation in workforce planning activities within Airservices

ƒ continue the development and implementation of workforce management strategies to mitigate potential risks.

Existing workforce strategies cover a range of risks including a loss of knowledge associated with potential retirements and increasing the mobility of our workforce in key areas. More information on our current strategies and activities related to them is in Appendix 6.

For example, in the air traffic control group we are working towards trialling retention strategies in the Sydney Basin operating area, while within our Project and Engineering group we are implementing more detailed succession planning and commencing a mentoring programme to ensure staff development and knowledge transfer. We also continue to invest in preparing our future leaders with more than 100 employees attending leadership programmes in the past year.

Celebrating our staff

Airservices celebrated the International Day of the Air Traffic Controller in October 2013 and recognised four of our air traffic controllers for going ‘above and beyond’ in their duties as controllers. The four controllers were provided with the opportunity to visit international air traffic control providers to further their training.

We also recognised the efforts of nine of our aviation rescue fire fighters as part of International Firefighters’ Day. An ARFF crew based at Townsville was named crew of the year, recognising their professionalism, initiative, team-work and community involvement throughout the year. The crew received the

St Florian award, named after the patron Saint of fire fighters, which recognises and honours the sacrifices that fire fighters make as they dedicate their lives to supporting the community.

We also celebrated the excellence of our staff through the Chairman’s Award for Professional Excellence. The award acknowledges employees who have made an exceptional contribution beyond their normal duties to their work and to the organisation.

Leadership development

Leadership capability is a major focus for our business. Recently we held leadership programmes for high performing teams within the organisation as well as in-depth leadership evaluation for our senior leadership team.

We continue to seek ways to develop staff to deliver the leadership capability required and have reviewed our leadership development strategy, resulting in the implementation of a range of measures to enhance management and leadership capability. This will ensure we identify the required capability and prioritise learning outcomes in line with Airservices culture p rogramme.

We also held ‘Step up to management’ courses for staff and facilitated attendance for staff at leadership forums, and strategic leadership team events. An ARFF leadership programme was also successfully delivered to our senior aviation rescue fire fighters to assist them in exercising consistent management decisions in support of our business.

Military collaboration

Airservices and the Department of Defence began examining broader harmonisation initiatives under the direction of the Australian Civil-Military Air Traffic Management Committee (AC-MAC).

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04 Report on performance

The committee will support the two organisation’s efforts to improve efficiency and effectiveness, productivity and operations, and support implementation of the single national air traffic management system, OneSKY Australia.

We also commissioned Australian Super Hornet communications in collaboration with Defence

and undertook site surveys to establish a new ARFF facility in Townsville. We provided air traffic control approach services at Royal Australian Air Force (RAAF) Base Richmond and put in place support arrangements at a number of locations, as required, under the direction of AC-MA C.

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Core operational and business excellence

Airservices performance is focused on enhancing safety, improving capacity, cost-effectiveness and realising environmental benefits, while meeting our customer’s current needs and creating new value for industry. The delivery of agreed priorities in an efficient, effective and predictable manner is essential to the financial viability and sustainability of the organisation.

When considering the theme of core operational and business excellence, there are four core outcomes that should be achieved.

ƒ Industry requirements understood and exceeded in delivering services—a Services Charter that clearly articulates industry and stakeholder requirements and expectations, with measurable targets that drive organisational performance.

ƒ Increased service and environmental efficiency within our organisation — measurable improvements in efficiency and quality through fit-for-purpose systems, processes and behaviours that meet internal and external customer requirements.

ƒ Improved effectiveness and efficiency of our services—embedded systems and processes that deliver service availability, which exceeds internal and external requirements in the medium term.

ƒ An integrated and harmonised service— an operational platform and service that recognises the cross-industry linked nature and input of all airspace system users.

Future air traffic management

Airservices and Defence are collaborating on the OneSKY Australia initiative to deliver a single air navigation system that addresses the growing demands of aviation traffic within Australia and across its international boundaries.

By replacing the current ageing air traffic management platform that was commissioned in the late 1990s, OneSKY Australia will meet higher customer expectations such as enhanced navigation and communication capability, be readily adaptable to global changes in aircraft technology, maximise safety performance and enhance our business excellence.

The tender for OneSKY Australia closed on 30 October 2013 and evaluation commenced in November 2013. Tender evaluation is continuing and we are currently preparing for contract ne gotiations.

Supporting regional development

Airservices is investing more than $80 million in new ARFF stations at Coffs Harbour and Ballina in New South Wales, Gladstone in Queensland and Newman in Western Australia. This investment also includes construction of a permanent station at Port Hedland and a new station facility at Hamilton I sland.

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IN PROFILE

Industry collaboration Airservices is working closely with its industry partners to deliver significant improvements to aviation through runway efficiency and reduced airborne holding times.

These benefits are realised through two initiatives, the Metron-Harmony ground delay system and the Airport Capacity Enhancement (ACE) programme.

Airservices first introduced Metron-Harmony at Sydney Airport in March 2012 and has since implemented the system at Perth, Brisbane and Melbourne airports. The system helps minimise airborne holding, saves fuel and associated emissions, enhances safety and reduces air traffic congestion.

In Brisbane when the Metron-Harmony ground delay system was introduced, airborne delays during the morning and evening peak periods dropped by 35 per cent. In addition to the Metron-Harmony ground delay system, Airservices collaborated with airports and industry stakeholders to introduce the ACE program at Brisbane, Melbourne, Perth and a programme to standardise terminal area arrival speeds in Sydney to assist the ACE programme.

ACE commenced in February 2011 and has now evolved into a national programme to improve runway efficiency. Initiatives such as standard aircraft approach speeds and educating pilots to vacate the runway using preferred exit taxiways as soon as possible after arrival are critical steps towards establishing safe and efficient runway operations.

An example of the success of these initiatives can be seen at Brisbane Airport, where the average time that arriving planes spent on the runway reduced by 11 per cent following the introduction of ACE. This is a level of performance that is better than the benchmark provided by Gatwick Airport in the United Kingdom, the world’s most efficient single-runway airport.

Airservices first priority is safety and both the Metron-Harmony ground delay system and ACE have delivered measures that improve overall safety by ensuring smooth and planned operations for airports and airlines.

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Construction of Gladstone and Newman fire stations is on schedule and the facilities are expected to be commissioned in August 2014. Interim measures at these locations were implemented in March.

Construction of Coffs Harbour and Ballina fire stations is to be completed by the end of 2014, with commissioning to take place in early 2015.

We upgraded the aviation rescue fire fighting categories at Launceston, Adelaide, Mackay, Brisbane and Perth airports due to the increase in the number of passengers and larger aircraft. This has required infrastructure works to be undertaken at some locations to meet increased service requirements.

The introduction of these services has required further upgrade or acquisition of Airservices equipment and assets, including the purchase of new fire vehicles to be delivered during 2014.

Airport Capacity Enhancement ( ACE)

ACE was implemented at Brisbane, Perth and Melbourne airports in response to work conducted by each airport’s ACE management team and steering group. A programme to standardise terminal area arrival speeds in Sydney was also introduced on 29 May 2014 to assist the ACE programme. More information is available on page 47.

The terms of reference for the cross-industry Sydney Airport Air Traffic Management Strategic Planning Group were agreed at the inaugural meeting held in September 2013, in an effort to speed up the delivery of a strategic plan to improve operational efficiencies at Sydney Airport.

Decision making for industry

Airservices continued to develop demand and capacity management capabilities to build on improvements resulting from the Air Traffic Flow Management (ATFM) project, a component of our collaborative decision-making programme.

Airborne and ground holding demand and capacity is currently addressed by Airservices as part of the Metron-Harmony system in conjunction with ACE.

The ATFM team has developed a long-range concept to display Metron-Harmony traffic flow at air traffic control consoles, enabling controllers to issue those displayed times directly to the aircraft.

In February 2014, we completed a meteorological collaborative decision-making trial in Sydney and Brisbane, and in March 2014 we implemented a departures manager position for Perth Airport to manage the early morning peak period.

Melbourne, Sydney, Brisbane and Perth airports are currently reviewing our concept of operations and the Metron-Harmony software for those airports has been upgraded.

To support these systems, a preferred provider was identified for corporate systems. The successful tenderer was contracted in December 2013 and once network connectivity has been established, capabilities will be systematically relocated. This process will continue throughout 2014-15 and will allow for growth, as well as providing disaster recovery and business continuity security.

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Managing aircraft noise

In May 2014, we signed a $25 million, five-year contract with Bruel & Kjaer, an environmental noise management firm, as part of our ongoing commitment to the environment and aircraft noise management.

The contract includes noise and flight path monitoring as well as ongoing development of the web-based, noise information tool, WebTrak, for use by members of the public. This information will assist in determining the contribution aircraft noise makes to the overall noise to which a community is exposed and can assist government and local authorities with their planning.

Airservices has finalised its Aircraft Noise Management Strategy which will be implemented as part of the Airservices Commitment to Aircraft Noise Management and the Airservices Aircraft Noise Management Roadmap.

We launched our Commitment to Aircraft Noise Management at the Airservices industry conference, Waypoint, in November 2013, and together with the Australian Airports Association unveiled a new website dedicated to explaining aircraft noise www.aircraftnoise.com.au

As part of our commitment to ongoing collaboration with industry and stakeholders on noise improvement opportunities, we co-h osted the fourth industry Noise Forum in Canberra in February 2014, with the AAA. The annual forum brings together stakeholders in an effort to improve noise outcomes for communities.

We assessed the noise modelling capabilities of the United States Federal Aviation Authority’s Aviation Environmental Design Tool and used this information to upgrade both our Airport Noise and Operations Monitoring System, and Continuous Descent Operations reporting capability.

Following a recommendation by the Aircraft Noise Ombudsman (ANO), in August 2013, Airservices commenced a 12-month trial of a modified flight path over Perth to reduce the impact of aircraft noise on more than 4000 residents.

Prior to the trial commencing we consulted with the local community through a series of public information sessions and held information sessions with local government, the Perth Airport CACG and the Perth Airport Aircraft Noise Management Consultative Committee. We undertook an extensive public awareness campaign to advise residents of the modified flight path and provided times and locations of community forums aimed at explaining the changes.

Protecting the environment

Airservices celebrated the 10th anniversary of the first use of Flextracks in Australian airspace on 1 December 2013. A Flextrack is designed to enable an aircraft to change from a fixed route and use winds to its advantage by avoiding strong headwinds. By doing this, an aircraft can improve flight time, deliver environmental benefits as well as reduce its operating costs.

Emirates, by using a Flextrack, is estimated to have saved over 3800 tonnes of fuel and reduced CO2 emissions by more than 12 000 tonnes. Airservices employs 17 Flextracks between Australia and airports in Asia and the Middle East, which are used by an average of 31 flights each day.

As a founding partner of INSPIRE, Airservices prepared and published the first INSPIRE 2013 Annual Report. This report publicises INSPIRE’s environmental initiatives, goals, progress and performance to the global aviation community and public.

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Our environmental footprint

Airservices is working to reduce its exposure to environmental risks and improve its energy, waste and water consumption. We are also implementing initiatives to improve noise outcomes, procedures to help better investigate environmental incidents (including those related to aircraft noise) and benchmarking our resource management performance against similar o rganisations.

We are focused on improving environmental accountability, our capacity to manage environmental issues and our understanding of our energy and water use to assist in setting targets and reducing unnecessary waste.

To establish these targets we have introduced a pilot programme at Canberra and Gold Coast airport facilities that includes installing energy efficient lighting, low-flow water devices and solar power. This programme will also seek to improve our existing heating, ventilation and air conditioning systems. The results will help us plan for other Airservices facilities and determine our future requirements.

At our Learning Academy’s Hot Fire Training Ground, stage two of the water recycling plant was formally commissioned in June 2014. This will enable recycling

of water used during training and some rain water runoff. This will mean that reliance on town water is reduced,

improving the

environmental footprint and overall cost efficiency of training.

We established a cross-functional aviation emissions working group to assess the accuracy and reliability of our existing emissions models. We have reduced aircraft noise and emissions and identified further areas to improve air traffic management through further reducing aircraft emissions and noise impacts.

We have also been analysing aircraft emissions to improve reporting on the difference between actual emissions and the lowest possible emissions for a particular flight. This will provide information to airlines that will lead to significant fuel savings and environmental benefits to the c ommunity.

During the year the Alan Woods Building in Canberra was provided with the secure UniFLOW Follow Me printing solution as part of the refurbishment of our headquarters. This capability has reduced paper usage and increased the security of printed information.

Procurement management

Airservices is constantly seeking to achieve best practice in supplier management. We are a member of the Department of Finance’s ICT Goods and Services Panel which has increased our buying power, reduced contract negotiation time, and provided access to vendors previously not available to Airservices.

During the year, we commenced our property operations and facility management commercial strategy, and continue to make progress in this area with a number of procurement activities already completed.

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Management of supply

Airservices continues to develop its Supplier Relationship Management (SRM) programme to help coordinate planning and development and increase cooperation with key suppliers.

SRM encourages suppliers to understand the requirements of key accounts within Airservices and to become more responsive, cost effective and streamlined.

We have been working on legislative changes stemming from the implementation of the Public Governance, Performance and Accountability (PGPA) Act 2013. This Act will replace the existing Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997. Airservices and other agencies formed a working group to ensure the interests of Government business entities were represented during development of the Act’s rules.

We have also implemented a new legal, regulatory and financial compliance framework within CIRRIS. This involves mapping Commonwealth and state legislation to relevant areas within Airservices, a process which was previously conducted manually with data collected and put into a database for storing and reporting. The process has now become automated and paperless through CIRRIS, which allows greater transparency and ease of reference for managers to check compliance.

Information communication technology

Our Business Systems team continues to work on reforming its business model through a number of projects, which will enable us to make more informed decisions on our technology investments. Part of this reform will include an upgrade to our desktop IT systems.

A skills framework has also been developed which will enable us to create and sustain a future-ready workforce, and consolidate our technology requirements. We have set the direction for our information communication technology strategies and principles including signing a contract to house our business systems and commissioning 90 virtual servers to reduce our power, cooling and hardware costs.

We are ensuring that our ICT security is compliant with the wider Australian Government objectives described in the Protective Security Policy Framework and Information Security Manual. We have also been working to raise staff awareness on the risks associated with information security and how to deal with them, both at work and at home.

We continue to improve our corporate systems, particularly SAP (Corporation of Systems Applications and Products in data processing) and the enterprise data warehouse. This work has already delivered a saving of 13 terabytes of storage.

During the reporting period a governance framework was implemented to improve compliance with ICT contracts.

Airport planning

Airservices engages with all airports to provide advice from subject matter experts in our business groups during the development of airport master and development plans. Airservices has also developed an internal process to ensure the accountability and integrity of any advice provided during airport planning activity. We also finalised 21 airport community management plans during the reporting period.

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Improving project delivery

Airsevices is undertaking a multi-million dollar upgrade programme to ensure the continued delivery of safe and efficient movement of air traffic.

We commissioned two new air traffic control towers during the year—Adelaide was officially opened on 23 August, and Melbourne on 14 March. Both towers operate a fully digital system that integrates flight and operational data, surveillance and voice communications into a single design.

Other projects completed included the Metron-Harmony traffic flow software upgrade for Perth departures and the final tower display installed at Sydney.

As part of the navigation extension project, runway distance measuring equipment was commissioned at both Sydney and Canberra airports and the Cocos Island Doppler VHF Omni Directional Range radar was commissioned in September 2013. We will be progressively installing navigation aids at locations with increased traffic levels to improve safety or as a specific regulatory requirement.

We installed two new ADS-B ground stations at Point Lookout in New South Wales and Mount Hardgrave in Queensland. These ground stations will provide a backup to radar surveillance in the region and enhance high-level coverage for air traffic from Lord Howe Island to Sydney and Brisbane.

Brisbane en route radar and the Round Mountain radar were commissioned in August 2013, as part of the En Route Radar Replacement Project along with the West Beach transportable radar. The Cecil Park radar was commissioned to provide improved surveillance coverage of the Sydney basin and a replacement radar was commissioned at Mount Bobbara in New South

Wales to provide secondary radar surveillance of aircraft operating in the area.

Additional conflict safety net alerting was also deployed into the Brisbane upper airspace air traffic control sector. We re-commissioned a category three instrument landing system at Melbourne and a category two instrument landing system at Sydney Airport to assist aircraft landing in poor weather conditions.

During the year we also completed the Perth Control Tower Life Extension program, making it the fifth tower to be completed.

We continue to investigate enhanced services for regional areas by trialling video link technology to explore more flexible tower services through our Remote Tower Technology project.

We are now planning the next stage of our National Towers project, which will involve design and construction of new towers, and the demolition of redundant facilities. The project will also introduce a blueprint for a nationwide programme centred on a standardised approach to tower construction.

A combined regional approach service was also commissioned from Brisbane Air Traffic Services Centre for the Rockhampton and Mackay airports under the Approach Services for Regional Airports project.

We have also commenced decommissioning navigation aids no longer required under our Navigation Rationalisation Project with the first of these decommissioned at Bordertown in South Australia, Giles in Western Australia and Mansfield in Victoria.

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Aligning technology with our service—delivery

In May 2014, we commissioned SmartPath, a ground based augmentation radar system at Sydney Airport and the first of its type in the Southern Hemisphere and Asia-Pacific.

This system will provide an approach capability that can guide suitably-equip ped aircraft to within one metre of the runway centre line on every approach in low or poor visibility conditions. SmartPath is capable of handling up to 26 simultaneous instrument approaches within a 42 kilometre radius of the airport.

We are also currently planning for a sustainable workforce, as well as a long-term vision for air traffic control and aviation rescue fire fighting regarding facilities and vehicles. Our plan now incorporates all aspects of information, communications and technology and recognises the future introduction of OneSKY A ustralia.

Efficient property management

A property services plan has been established to enable project teams to improve maintenance of our infrastructure projects.

Airservices is currently assessing our facilities at Brisbane, Melbourne and Cairns airports, and will soon commence at Sydney, Adelaide, Canberra and Gold Coast airports. These assessments will enable us to implement a programme of asset maintenance. We developed management plans for grounds maintenance and pest control at all of our sites and an acquisition strategy for trade services has also been approved.

A management and remediation plan has also been developed for all sites containing hazardous materials and in the near future we will release to industry a statement of requirements for our national trade waste management and monitoring a greement.

05FINANCIAL STATEMENTS

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05 Financial Statements for the year ended 30 June 2014

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05 Financial Statements for the year ended 30 June 2014

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05 Financial Statements for the year ended 30 June 2014

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05 Financial Statements for the year ended 30 June 2014

Airservices Australia STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2014

2

2014

2013

Restated1

Notes $'000 $'000

CONTINUING OPERATIONS INCOME Airways revenues 978,451 928,202

Finance income 3 8,613 2,145

Other business revenue 25,943 21,626

Miscellaneous income 3,454 3,169

Reversal of previous asset write-down 4,378 -

TOTAL INCOME 1,020,839 955,142

EXPENSES Employee benefits 3 654,015 575,149

Suppliers 186,908 170,925

Depreciation 14 94,193 84,796

Amortisation 15 24,154 29,732

Finance costs 3 20,560 15,934

Write-down and impairment of assets 3 12,515 15,366

Net loss on disposal of non-current assets and assets held for sale 3 1,628 1,866

TOTAL EXPENSES 993,973 893,768

PROFIT BEFORE INCOME TAX 26,866 61,374

Income tax expense 4 5,543 15,890

PROFIT AFTER INCOME TAX 21,323 45,484

OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss Gain on revaluation of land, buildings and plant & equipment 21 20,897 5,864

Actuarial gains on defined benefit fund 21 66,024 178,079

Income tax on items that will not be reclassified to profit or loss (26,076) (55,183)

Items that may be reclassified subsequently to profit or loss Foreign exchange hedge 21 1,487 2,037

Income tax on items that may be reclassified to profit or loss 21 (446) (611)

TOTAL OTHER COMPREHENSIVE INCOME NET OF TAX 61,886 130,186

TOTAL COMPREHENSIVE INCOME 83,209 175,670

Attributable to the Australian Government 83,209 175,670

83,209 175,670

1

2013 results have been restated following the adoption of AASB 119 Employee Benefits (see Note 1(o) for more information).

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05 Financial Statements for the year ended 30 June 2014

Airservices Australia STATEMENT OF FINANCIAL POSITION as at 30 June 2014

3

2014

2013

Restated1

Notes $'000 $'000

CURRENT ASSETS Cash and cash equivalents 8 80,488 57,243

Trade and other receivables 9 117,884 112,253

Prepayments 8,296 8,252

Inventories 1,338 1,315

Assets classified as held for sale 10 110 100

Other current financial asset 11 556 6,866

Other current assets 12 1,231 1,252

TOTAL CURRENT ASSETS 209,903 187,281

NON-CURRENT ASSETS Land and buildings 14 337,850 286,907

Infrastructure, plant and equipment 14 756,956 736,097

Deferred tax assets 13 23,600 45,534

Intangible assets 15 104,380 88,663

Defined benefit fund asset 19 (b) 33,298 -

Other non-current financial assets 16 15,987 2,350

TOTAL NON-CURRENT ASSETS 1,272,071 1,159,551

TOTAL ASSETS 1,481,974 1,346,832

CURRENT LIABILITIES Trade and other payables 17 (a) 96,264 95,884

Provisions 17 (a) 231,620 212,438

Borrowings 18 (a) 19,913 224,337

Other current financial liabilities 18 (b) 565 -

TOTAL CURRENT LIABILITIES 348,362 532,659

NON-CURRENT LIABILITIES Provisions 17 (b) 64,006 62,128

Borrowings 18 (a) 470,570 198,872

Defined benefit fund liability 19 (b) - 27,816

Other non-current financial liabilities 20 (a) 3,804 -

Other non-current liabilities 20 (b) 8,400 6,170

TOTAL NON-CURRENT LIABILITIES 546,780 294,986

TOTAL LIABILITIES 895,142 827,645

NET ASSETS 586,832 519,187

EQUITY Contributed equity 222,190 222,190

Reserves 21 (a) 108,153 93,500

Retained earnings 21 (b) 256,489 203,497

TOTAL EQUITY 586,832 519,187

1

2013 results have been restated following the adoption of AASB 119 Employee Benefits (see Note 1(o) for more information).

Airservices Annual Report 2013-14 60

05 Financial Statements for the year ended 30 June 2014

Airservices Australia STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2014

4

Retained earnings

Asset revaluation

reserve

Foreign exchange hedge reserve

Total reserves

Contributed equity

Total equity

2014

2013 Restated

2014

2013

2014

2013

2014

2013

2014

2013

2014

2013

Restated

1

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Opening balance

203,497

52,826

94,324

91,292

(824)

(2,250)

93,500

89,042

222,190

222,190

519,187

364,058

Comprehensive income Defined benefits actuarial gains (net of tax)

46,217

124,655

-

-

-

-

-

-

-

46,217

124,655

Net revaluation (net of tax)

-

-

14,628

4,105

1,041

1,426

15,669

5,531

-

-

15,669

5,531

Profit for the period

21,323

45,484

-

-

-

-

-

-

-

-

21,323

45,484

Total comprehensive income

67,540

170,139

14,628

4,105

1,041

1,426

15,669

5,531

-

-

83,209

175,670

Transactions with owners Returns on capital: Dividends

(16,000)

(21,000)

-

-

-

-

-

-

-

-

(16,000)

(21,000)

Transfers between equity components Revaluation reserve - disposals

1,452

1,532

-

-

-

-

-

-

-

-

1,452

1,532

Revaluation reserve - disposals (net of tax)

-

-

(1,016)

(1,073)

-

-

(1,016)

(1,073)

-

-

(1,016)

(1,073)

Closing balance

256,489

203,497

107,936

94,324

217

(824)

108,153

93,500

222,190

222,190

586,832

519,187

1 2013 results have been restated following the adoption of AASB 119 Employee Benefits (see Note 1(o) for more information).

Airservices Annual Report 2013-14 61

05 Financial Statements for the year ended 30 June 2014

Airservices Australia CASH FLOW STATEMENT for the year ended 30 June 2014

5

2014 2013

Notes $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers (inclusive of GST) 1,102,160 1,027,465

Income tax refund 1,660 12,898

Payments to suppliers and employees (inclusive of GST) (904,221) (827,688)

Borrowing costs (22,818) (15,666)

Income tax paid (13,337) (18,924)

Interest received 4,369 1,815

Net cash flows from operating activities 32 167,813 179,900

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of infrastructure, plant and equipment 471 2,456

Purchase of infrastructure, plant & equipment and intangibles (199,039) (187,872)

Net cash flows used in investing activities (198,568) (185,416)

CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (16,000) (21,000)

Repayments of borrowings (225,000) -

Proceeds from borrowings 295,000 20,000

Net cash flows from / (used in) financing activities 54,000 (1,000)

Net increase / (decrease) in cash and cash equivalents 23,245 (6,516)

Cash and cash equivalents at the beginning of the reporting period 57,243 63,759

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 8 80,488 57,243

Airservices Annual Report 2013-14 62

05 Financial Statements for the year ended 30 June 2014

Airservices Australia SCHEDULE OF COMMITMENTS as at 30 June 2014

6

2014 2013

BY TYPE $'000 $'000

CAPITAL COMMITMENTS Infrastructure, plant and equipment 84,981 108,779

TOTAL CAPITAL COMMITMENTS 84,981 108,779

OTHER COMMITMENTS Operating leases 186,941 177,594

Other commitments 1 320,592 294,329

TOTAL OTHER COMMITMENTS 507,533 471,923

COMMITMENTS RECEIVABLE Other commitments receivable 2 (99,444) (66,749)

GST recoverable on commitments (47,159) (46,564)

TOTAL COMMITMENTS RECEIVABLE (146,603) (113,313)

TOTAL NET COMMITMENTS BY TYPE 445,911 467,389

BY MATURITY CAPITAL COMMITMENTS Within one year 73,358 96,284

After one year but no more than five years 11,623 11,662

More than five years - 833

TOTAL CAPITAL COMMITMENTS 84,981 108,779

OPERATING LEASES Within one year 16,063 14,666

After one year but no more than five years 65,352 55,553

More than five years 105,526 107,375

TOTAL OPERATING LEASES 186,941 177,594

OTHER COMMITMENTS Within one year 83,528 70,244

After one year but no more than five years 182,764 129,659

More than five years 54,300 94,426

TOTAL OTHER COMMITMENTS 320,592 294,329

COMMITMENTS RECEIVABLE Within one year (31,067) (24,720)

After one year but no more than five years (72,931) (43,199)

More than five years (42,605) (45,394)

TOTAL COMMITMENTS RECEIVABLE (146,603) (113,313)

TOTAL NET COMMITMENTS BY MATURITY 445,911 467,389

1

These commitments primarily comprise contracts for services including flight inspection services and airways technical equipment support contracts.

2

These relate to contracts associated with other business revenue.

NB: Commitments are GST inclusive where relevant.

Operating leases are effectively non-cancellable and comprise:

Leases for office accommodation Airservices leases are subject to differing review mechanisms which can include fixed increases, CPI or market review.

Airservices Annual Report 2013-14 63

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

7

Note 1  Summary of significant accounting policies ....................................................................................... 8 

Note 2  Significant accounting estimates and assumptions ......................................................................... 17 

Note 3  Profit from continuing operations ..................................................................................................... 18 

Note 4  Income tax ....................................................................................................................................... 19 

Note 5  Fair value measurement .................................................................................................................. 20 

Note 6  Dividends ......................................................................................................................................... 22 

Note 7  Events after the reporting period ..................................................................................................... 23 

Note 8  Current assets - Cash and cash equivalents .................................................................................. 23 

Note 9  Current assets - Trade and other receivables ................................................................................ 24 

Note 10  Assets classified as held for sale ..................................................................................................... 25 

Note 11  Other current financial assets .......................................................................................................... 25 

Note 12  Current assets - Other ..................................................................................................................... 25 

Note 13  Non-current assets - Deferred tax assets ....................................................................................... 26 

Note 14  Non-current assets - Infrastructure, plant and equipment .............................................................. 27 

Note 15  Non-current assets - Intangible assets ........................................................................................... 30 

Note 16  Non-current assets - Other financial assets .................................................................................... 31 

Note 17  Provisions and payables .................................................................................................................. 32 

Note 18  Borrowings and other current financial liabilities ............................................................................. 35 

Note 19  Defined benefit fund asset / (liability) ............................................................................................... 35 

Note 20  Non-current liabilities - Other ........................................................................................................... 39 

Note 21  Reserves and retained earnings ...................................................................................................... 39 

Note 22  Contingencies .................................................................................................................................. 40 

Note 23  Standby arrangements and unused credit facilities ......................................................................... 40 

Note 24  Remuneration of auditors ................................................................................................................ 41 

Note 25  Remuneration of directors ............................................................................................................... 41 

Note 26  Senior executive remuneration ........................................................................................................ 42 

Note 27  Related party transactions ............................................................................................................... 47 

Note 28  Financial instruments ....................................................................................................................... 49 

Note 29  Monies held on behalf of third parties .............................................................................................. 54 

Note 30  Economic dependency .................................................................................................................... 54 

Note 31  Cross-border financing arrangement ............................................................................................... 54 

Note 32  Notes to the statement of cash flows ............................................................................................... 55 

Airservices Annual Report 2013-14 64

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

8

Note 1 Summary of significant accounting policies

Set out below are the principal accounting policies adopted in the preparation of the financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. All amounts are shown in thousands of dollars and are expressed in Australian dollars, unless disclosure of the full amount is specifically required.

(a) Basis of preparation

The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies (CAC) Act 1997 and are general purpose financial statements for the year ended 30 June 2014. The financial statements were authorised for issue in accordance with a resolution of the Board of Directors on 28 August 2014.

Airservices is an Australian Government owned for-profit entity. The financial statements have been prepared on a going concern basis, in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) and Finance Minister's Orders (FMOs) made under the CAC Act 1997. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Historical cost convention These financial statements have been prepared on an accrual basis and under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through profit and loss, and certain classes of property, plant and equipment.

Critical accounting estimates The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying Airservices accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 2.

(b) Statement of compliance

Compliance with IFRS The financial statements comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

Adoption of new Australian Accounting Standard requirements No accounting standard has been adopted earlier than the application date as stated in the standard. Airservices has adopted the following changes to accounting standards as of 1 July 2013:

Reference Title Nature of change in accounting policy and adjustments to financial statements

AASB 10, 11 & 12 Consolidated Financial Statements, Joint

Arrangements, and Disclosure of Interests in Other Entities

AASB 10 introduces changes to the principal of control, with a greater focus on which party has power over an entity’s activities rather than the previous requirements which looked at which party has the majority of the risks and rewards. The control principle is applied to joint arrangements in AASB 11. AASB 12 combines the disclosure requirements for an entity’s interests in subsidiaries, joint arrangements, and structured entities into one standard.

Airservices does not have the right or exposure to variable returns, or an ability to influence payments through its involvement in the four special purpose entities which are involved in the US cross-border financing arrangement in relation to equipment associated with The Australian Advanced Air Traffic System (TAAATS) and radar systems (refer Note 31). Accordingly, Airservices does not have control over these entities under AASB 10 and as a result they are no longer consolidated in the financial statements. AASB 13 Fair Value

Measurement

AASB 13 explains how to measure fair value and aims to enhance fair value disclosures. The new standard requires a number of new disclosures for assets and liabilities carried at fair value. These are contained in the relevant notes that the assets and liabilities measured using fair value are included. Additional disclosures regarding the fair value hierarchy are contained in Note 5. AASB 119 Employee Benefits AASB 119 introduces changes to the accounting for employee benefits, including defined

benefit liabilities/assets and the classification of short-term and long-term employee benefits.

Airservices has adopted this standard retrospectively in the current period in accordance with the transitional provisions set out in the revised standard. Accordingly, the opening statement of financial position of the earliest comparative period presented (1 July 2012), the statement of comprehensive income, and statement of changes in equity comparative figures have been adjusted to reflect the changes. The change to comparatives is outlined in Note 1(o) below.

Airservices Annual Report 2013-14 65

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

9

Reference Title Nature of change in accounting policy and adjustments to financial statements

AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities

AASB 2012-2 amends AASB 7 Financial Instruments: Disclosures to require disclosure of information that will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity's recognised financial assets and recognised financial liabilities, on the entity's financial position.

The accounting policy for offsetting financial instruments is included in Note 1(t) below.

All other new or revised standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect, and are not expected to have a future material effect, on the entity’s financial statements.

Future Australian Accounting Standard requirements The following new standards, revised standards, interpretations and amending standards were issued prior to the signing of the statements by the Chair, Chief Executive Officer and Chief Financial Officer and are expected to have a material impact on Airservices for future reporting periods.

Reference Title Summary Application

date of standard

Application date for Airservices

AASB 9 Financial Instruments The revised AASB 9 addresses the classification and measurement of financial assets and financial liabilities. The standard has the potential to reduce profit and loss volatility by allowing hedge accounting for net positions and groups of financial instruments. Currently Airservices does not apply hedge accounting to its interest rate swap portfolio and movements in the portfolio's fair value are recorded in the Statement of Comprehensive Income.

The standard is not applicable until 1 July 2018 and Airservices is yet to assess its full impact.

1 Jan 2018 1 Jul 2018

All other new or revised standards and/or interpretations that were issued prior to the sign-off date and are applicable to future reporting periods are not expected to have a future material effect on the entity’s financial statements.

(c) Foreign currency translation

Functional and presentation currency Items included in the financial statements of Airservices are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The financial statements are presented in Australian dollars, which is Airservices functional and presentation currency.

Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income, except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation.

Translation differences on financial assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets such as equities classified as available-for-sale financial assets are included in the fair value reserve in equity.

(d) Revenue recognition

Rendering of services Revenue is recognised when services are rendered for both airways and other business revenue. The prices charged for regulated services are in accordance with the agreements negotiated with customers and endorsed by the Australian Competition and Consumer Commission (ACCC). Underpinning this agreement are risk sharing provisions which compensate parties where either airways activity volumes exceed or do not achieve agreed levels, costs vary due to regulatory change, or capital expenditure levels vary substantially from agreed investment levels.

Airservices Annual Report 2013-14 66

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

10

Interest income Interest income is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. The effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in finance income in the statement of comprehensive income.

(e) Property, plant and equipment

Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Cost and valuation Property, plant and equipment are measured at cost or at fair value, less, where applicable, accumulated depreciation and any accumulated impairment losses.

Assets purchased by Airservices are initially recorded at cost and represent costs directly attributable to the acquisition. Labour and direct overheads incurred in installation are capitalised and added to the cost. Assets constructed by Airservices are initially recognised at the cost of materials, labour, direct overheads and borrowing costs incurred on qualifying assets.

All costs associated with repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Revaluations Following initial recognition at cost, property, plant and equipment are carried at a re-valued amount which is the fair value at the date of the revaluation. Independent valuations are performed with sufficient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at the reporting date. Revaluations are conducted by an independent qualified valuer.

Any revaluation surplus is credited to the asset revaluation reserve included in the equity section of the Statement of Financial Position unless it reverses a revaluation decrease of the same asset previously recognised in the Statement of Comprehensive Income, in which case the increase is recognised in profit or loss. Any revaluation deficit is recognised in the Statement of Comprehensive Income, except that a decrease offsetting a previous surplus for the same asset is

debited directly to the asset revaluation reserve to the extent of the credit balance existing in the revaluation reserve for that asset. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the re-valued amount of the asset. The revaluation surplus is accounted for net of deferred tax in the asset revaluation reserve.

Upon disposal, any revaluation reserve relating to the particular asset being sold is transferred to retained earnings.

Derecognition and disposal An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising from de-recognition, calculated as the difference between net disposal proceeds and carrying value, is included in the Statement of Comprehensive Income in the year the asset is derecognised.

Impairment of non-financial assets The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable, and, as a minimum, at least annually. All assets were assessed for impairment as at 30 June 2014.

For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which it belongs. If any impairment indication exists, and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount.

The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and the value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a market determined risk adjusted discount rate. Any impairment losses are recognised immediately in the Statement of Comprehensive Income. Non-financial assets that suffer impairment are reviewed for possible reversal of the impairment at each reporting date.

Airservices Annual Report 2013-14 67

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

11

Leases Operating lease payments where the lessor effectively retains substantially all of the risks and benefits of ownership of leased assets are included in the determination of the operating profit in equal instalments over the lease term, unless another systematic basis is more appropriate. Any rent free periods are accounted for as per UIG 115 Operating Leases - Incentives.

Leases of fixed assets where substantially all the risks and benefits incidental to ownership of the asset, but not legal ownership, are transferred to Airservices are classified as finance leases. Any finance leases identified are capitalised at the inception of the lease at the lower of the present value of minimum lease payments, including any guaranteed residual values, and fair value. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are accounted for as an expense.

Depreciation Depreciable property, plant and equipment are written-off to their estimated residual values over their estimated useful lives to Airservices, using in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2014 2013

Buildings (eg: control towers, fire stations, commercial property) 10-40 years 10-40 years

Plant and equipment (eg: airways technical equipment, fire vehicles) 3-20 years 3-20 years

Spares Asset-specific spare parts (repairable spares) have been treated as plant and equipment and depreciated over the useful life of the parent asset to which they are related.

(f) Intangible assets

Intangible assets acquired separately are initially measured at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and impairment losses. Where amortisation is charged on assets with finite lives, this expense is taken to the Statement of Comprehensive Income. Software is amortised on a straight-line basis over 3-10 years.

Research costs associated with in-house developed intangible assets are expensed as incurred. Costs incurred on development projects (relating to the design and testing of new improved products) are recognised as intangible assets when it is probable that the project will be a success considering its commercial and technical feasibility and its cost can be measured reliably. The carrying value of development costs is reviewed for impairment annually or more frequently if there is evidence to suggest that the carrying value may not be recoverable. All intangibles were assessed for indicators of impairment as at 30 June 2014.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying value of the asset as at the date of derecognition and are recognised in the Statement of Comprehensive Income.

(g) Decommissioning and site rehabilitation

Where Airservices has an obligation to incur site rehabilitation costs and the requirements outlined below in section (n) Provisions, have been met, the estimated cost to 'make good' the site has been recorded as a provision.

The net present value of the obligation is measured using the 10 year Government bond rate at 30 June each year.

(h) Inventories

Inventories consist of retail and publication material held for sale to the aviation industry, and consumable spares used for operational equipment. Inventories are valued at the lower of cost and net realisable value, using the weighted average unit cost method. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Airservices Annual Report 2013-14 68

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

12

(i) Dividends

A liability for a dividend is not recognised until such time that it is approved by the Board.

(j) Cash and cash equivalents

Cash is recognised at its nominal amount. Cash in the Statement of Financial Position comprises cash at bank and in hand and deposits at call which are readily convertible to cash on hand. For the purposes of the cash flow statement, cash includes cash and cash equivalents net of outstanding bank overdrafts.

(k) Income tax

The income tax expense for the year is the tax payable on the current year’s taxable income based on the notional income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences only if it is probable that future taxable amounts will be available to utilise those temporary differences.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the Statement of Comprehensive Income.

(l) Goods and Services Tax (GST)

Revenues, expenses and non-current assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included with other receivables or payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST component of cash flows arising from investing or financing activities which are recoverable from, or payable to, the Australian Taxation Office, are presented as operating cash flows.

Commitments and contingencies are disclosed GST inclusive.

(m) Recoverable amount of non-current assets

All assets are subjected to impairment tests at each reporting date. Where an indicator of impairment exists, a formal estimate of the recoverable amount is made. Where the carrying amount exceeds the recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for each asset, unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash flows that are largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash generating unit to which the asset belongs.

In assessing value in use, the estimated future cash flows are discounted to their present value using a market-determined risk adjusted discount rate.

Airservices Annual Report 2013-14 69

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

13

(n) Provisions

Provisions are recognised when Airservices has a present obligation (legal or constructive) as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. Where the effect of the time value of money is material, the obligation is measured using a discount rate which reflects current market assessments and the risks specific to the liability. Increases in the provision due to the passage of time (unwinding of the discount) are then recognised as expense.

On-costs associated with recreation leave and long service leave are classified as separate provisions from employee benefits, in accordance with section 43.3 of the FMOs.

(o) Employee benefits

Salaries, wages and termination benefits Liabilities for short term employee benefits and termination benefits expected to be wholly settled within twelve months of the end of the reporting period are measured at their nominal amounts. Liabilities for salary and wages are recognised, and are measured as the amount unpaid at the reporting date at pay rates which will be applicable when paid, in respect of employees’ services up to that date.

Recreation leave The provision for recreation leave is not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. Accordingly, this provision is measured as a long-term benefit by calculating the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

Long service leave and early retirement benefits Employee benefit provisions for long service leave and early retirement benefits are assessed by qualified actuaries on an annual basis. Various actuarial assumptions are required when determining Airservices obligations, and these are discussed at Note 2 and Note 19.

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date, using the projected unit credit method. A liability for early retirement benefit is recognised within the provision for separations and redundancies in accordance with the applicable Group Collective Agreement and is measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

Superannuation Contributions are made predominantly to AvSuper (sponsored by Airservices) and Commonwealth Superannuation Administration (ComSuper) which administers the Commonwealth Superannuation Scheme (CSS) and Public Sector Superannuation (PSS) funds. AvSuper has a defined benefit section and an accumulation section within its fund. Contributions to the AvSuper defined benefit fund are made in accordance with advice received from the fund’s actuary. Contributions to accumulation funds are in accordance with the organisation’s Collective Agreement(s) and other employee contracts, having regard to legislative requirements. Contributions to ComSuper for the PSS and CSS funds are in accordance with actuarial reports as notified by the Department of Finance.

Contributions to all funds except the AvSuper defined benefit fund are recognised as an expense as they become payable. With respect to the AvSuper defined benefit fund, the current service cost and the net interest on the net defined benefit liability (asset) is recognised in the profit before income tax, whereas actuarial gains and losses are recorded in other comprehensive income.

Airservices Annual Report 2013-14 70

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

14

A liability or asset in respect of the AvSuper defined benefit superannuation plan is recognised in the Statement of Financial Position, and is measured as the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using the interpolation between the yield on government bonds that have terms approximating to the terms of the related obligation. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

Change in accounting policy for defined benefit fund As a result of AASB 119 Employee Benefits (2011), Airservices has changed its accounting policy with respect to accounting for the AvSuper defined benefit fund.

Previously, the net of current service costs, interest costs and the expected return on fund assets was recognised in the profit before income tax, and actuarial gains and losses were recorded in other comprehensive income. The defined benefit liability or asset was measured as the present value of the defined benefit obligation at the reporting date plus unrecognised actuarial gains (less unrecognised actuarial losses) less the fair value of the superannuation fund’s assets

at that date and any unrecognised past service cost Applying the new policy as outlined above, the interest cost and expected return on plan assets are replaced with a net interest amount, which is calculated by applying the discount rate to the net defined benefit liability (asset).

In addition, the standard clarifies that a gross of tax discount rate should be used when measuring the defined benefit obligation, as opposed to the net of tax discount rate that was previously applied.

Airservices has applied the revised standard retrospectively in accordance with the transitional provision of the standard. Consequently, the restated comparative figures have been presented below.

Statement of Comprehensive Income Reported Change in Restated

2013 Policy 2013

$'000 $'000 $'000

Expenses Employee benefits 549,925 25,224 575,149

Total expenses 868,544 25,224 893,768

Profit before income tax 86,598 (25,224) 61,374

Income tax expense 23,457 (7,567) 15,890

Profit after income tax 63,141 (17,657) 45,484

Other comprehensive income Actuarial gains/(losses) on Defined Benefits Fund 147,789 30,290 178,079

Income tax on items that will not be reclassified to profit or loss (46,096) (9,087) (55,183)

Total Other Comprehensive Income Net of Tax 108,983 21,203 130,186

Total comprehensive income 172,124 3,546 175,670

Reported Change in Restated

Statement of financial position 2013 Policy 2013

$'000 $'000 $'000

Non-current assets Deferred tax asset 53,321 (7,787) 45,534

Total non-current assets 1,167,338 (7,787) 1,159,551

Defined benefit fund liability 53,773 (25,957) 27,816

Total non-current liabilities 320,943 (25,957) 294,986

Net assets 501,017 18,170 519,187

Retained earnings 185,327 18,170 203,497

Total equity 501,017 18,170 519,187

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(p) Assets classified as held for sale

Assets classified as held for sale are stated at the lower of their carrying amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.

An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of sale of the

asset is recognised at the date of de-recognition.

Assets are not depreciated or amortised while they are classified as held for sale. Assets classified as held for sale are presented separately from the other assets in the Statement of Financial Position.

(q) Working capital

Airservices current liabilities exceed current assets as at the end of the current reporting period, mainly as a result of employee benefit disclosure requirements of the accounting standards. Notwithstanding that deficiency, the Directors remain confident that Airservices will be able to meet its debts as and when they fall due, including employee long service and recreation leave which will be funded out of operating revenues in the normal course of business rather than out of current assets at year-end.

Excluding the employee benefit provisions expected to be taken greater than 12 months from the working capital analysis has current assets at approximately ninety six percent of current liabilities. This shortfall is expected to be met by the continuation of positive operating cashflows. In addition, management has committed funding facilities (which include standby facilities of $230m - refer Note 23) to ensure the organisation can address both expected and unexpected short term liquidity requirements.

(r) Investments and other financial assets

Airservices classifies its financial assets in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates this designation at the end of the reporting period.

Financial assets at fair value through profit or loss Financial assets are classified as financial assets at fair value through profit or loss where the financial assets: a) have been acquired principally for the purpose of selling in the near future; b) are derivatives that are not designated and effective as a hedging instrument; or

c) are parts of an identified portfolio of financial instruments that the entity manages together and has a recent actual pattern of short-term profit-taking.

Assets in this category are classified as current assets. Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Held-to-maturity investments Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that Airservices has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. Airservices did not have any available-for-sale financial assets for the year ended 30 June 2014.

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(s) Financial liabilities

Financial liabilities within the scope of AASB 139 are classified as financial liabilities at fair value through profit or loss, derivatives designated as hedging instruments in an effective hedge, or other financial liabilities, as appropriate.

Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Derivative financial instruments and hedge accounting Airservices uses derivative financial instruments, such as forward currency contracts and interest rate swaps to hedge its foreign currency risks and interest rate risks, respectively. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognised in other comprehensive income.

Other financial liabilities Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

(t) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

(u) Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

(v) Borrowing costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed.

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Note 2 Significant accounting estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

AvSuper defined benefit plan Various actuarial assumptions are required when determining Airservices obligations under the AvSuper defined benefit plan. The assumptions relied on for the period to 30 June 2014 are discussed in Note 19.

Long Service Leave and Early Retirement Benefits Various actuarial assumptions are required when determining the Airservices obligations for long service leave and the early retirement benefit scheme. The assumptions relied on for the period to 30 June 2014 are based on collective agreements that were applicable during the year. These include a 5.0% provision for salary and incremental increases, including promotional effects, staff turnover rates ranging from 2% to 19% (depending on period of service), and average long service leave taken of 0.19 months per annum. The Discount Rate is derived from a yield curve based on interpolation of Commonwealth Government Bonds based on the durations to reflect the estimated mean term of the liabilities, they are as follows:   

Liability Mean term Government Bonds Discount Rate

Long Service Leave 7.3 years 5 year and 10 year 3.4% p.a

Early Retirement Benefit 5.7 years 5 year and 10 year 3.2% p.a

Recoverable amount of non-current financial assets The estimated future cash flows for value in use calculations include an assumed risk adjusted discount rate of 18.0%, an average USD/AUD exchange rate of 0.94, and expected sales over the next ten years.

Other provisions An estimate of expected future costs has been used to establish the provision for the assessment, management and containment of possible contaminated Aviation Rescue and Fire Fighting (ARFF) training sites, the removal of underground fuel storage tanks and asbestos affected sites, and the remediation and restoration of leased property sites as discussed in Note 17(c).

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Note 3 Profit from continuing operations Profit from continuing operations before income tax is arrived at after including the following items of revenue and expenditure:

2014

2013

Restated

Revenue $'000 $'000

Finance income Deposits 3,340 1,105

Cash at bank 666 438

Interest rate swap fair value gain 4,223 354

Other 384 248

Total finance income 8,613 2,145

Expenses Employee benefits Wages and salaries 418,748 376,338

Superannuation (defined contribution funds) 43,543 34,608

Leave and other entitlements 150,013 120,816

Separation and redundancies 7,846 4,112

Employee benefits (excluding defined benefit superannuation expense) 620,150 535,874

Net defined benefit superannuation expense recognised in employee benefits Current service cost 33,576 33,960

Net interest expense 289 5,315

Defined benefit superannuation expense 33,865 39,275

Total employee benefits 654,015 575,149

Finance costs Loans 18,828 14,815

Other 1,732 1,119

Total finance costs 20,560 15,934

Write-down and impairment of assets Net write-down of infrastructure, plant and equipment - 7,017

Impairment of navigation augmentation system receivable 1,308 4,243

Impairment of infrastructure, plant and equipment 10,726 3,302

Impairment of intangible assets 481 804

Total write-down and impairment of assets 12,515 15,366

Impaired loss on trade and other receivables Movement in allowance for impairment (receivables) (811) (276)

Bad debts written off 1,618 287

Total bad and doubtful debt expense 807 11

Operating lease charges 23,715 21,983

Gain/(loss) from sales/(write-off) of non-current assets Proceeds from disposal of non-current assets 471 2,456

Written-down value of disposed non-current assets (451) (2,481)

Net gain / (loss) from sale of non-current assets 20 (25)

Written down value of scrapped assets (1,648) (1,841)

Net loss from disposal of non-current assets (1,628) (1,866)

No related party amounts are disclosed separately for revenue and expense transactions above as they are immaterial.

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Note 4 Income tax

2014 2013

$'000 $'000

(a) Income tax expense Current tax 9,153 10,852

Deferred tax (3,610) 5,038

Income tax expense attributable to profit from continuing operations 5,543 15,890

(b) Reconciliation of income tax expense to prima facie tax payable

Profit from continuing operations before income tax expense 26,866 61,374

Prima facie income tax expense at 30% 8,060 18,412

Tax effect of amounts which are not deductible/assessable in calculating taxable income: Non-deductible legal costs 10 120

Other non-deductible/(assessable) expenditure 1,123 (3,487)

Prior year over provision of tax (4,937) (387)

Unrealised losses on revaluation of assets to fair value 1,287 1,232

Income tax expense 5,543 15,890

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Note 5 Fair value measurement

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability.

Note 5A: Fair value measurements

Fair value measurements at 30 June 2014 by hierarchy for assets and liabilities Fair value measurements at the end of the reporting period using

Fair value

Level 1 inputs

Level 2 inputs

Level 3 inputs

$'000 $'000 $'000 $'000

Non-financial assets Land 47,690 - 47,690 -

Buildings 290,160 - 200 289,960

Plant and equipment 555,367 - - 555,367

Total non-financial assets at fair value 893,217 - 47,890 845,327

Financial assets Forward exchange contracts 311 - 311 -

Interest rate swaps 14,396 - 14,396 -

Other financial assets 1,836 - - 1,836

Total financial assets at fair value 16,543 - 14,707 1,836

Total fair value measurements of assets 909,760 - 62,597 847,163

Financial liabilities Interest rate swaps 4,369 - 4,369 -

Airservices engages external, independent and qualified valuers to determine the fair value of Airservices property plant and equipment on an annual basis.

Highest and best use is the same as current use. There were no transfers between levels 1 and 2 during the year.

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Note 5B: Valuation technique and inputs for Level 2 and Level 3 fair value measurements

Level 2 or 3

Fair Value $000

Valuation technique Inputs used

Range (weighted average)

Non-financial assets

Land Level 2 47,690

Market Comparables Sales prices of comparable land Land Size

N/A

Buildings Level 2 200

Capitalised Income Approach Price per square metre Market rate of interest

N/A

Buildings Level 3 289,960

Depreciated Replacement Cost

Construction cost per metre height - Control Towers 1

$250,000 - $420,454 ($306,145)

Category - Fire Stations 2 $1,689,000 - $9,370,000 ($4,222,000)

Construction cost per square metre - other Buildings 1

$450 - $3,500 ($2,975)

Plant and equipment

Level 3 555,367 Depreciated Replacement Cost Historical capitalised costs

Future planning cost estimates 3

1 - 4%

(2%)

Financial assets Forward exchange contracts Level 2 311

Adjusted Discounted Cash flows Current foreign exchange market rates

N/A

Interest rate swaps Level 2 14,396 Adjusted Discounted Cash flows Current market interest rates N/A

Other financial assets Level 3 1,836

Discounted Cash flows

Discount rate 4

USD foreign exchange rates

18% 0.94

Financial liabilities

Interest rate swaps Level 2 4,369 Adjusted Discounted Cash flows Current market interest rates N/A

1

The higher the construction cost, the higher the fair value 2 The higher the fire station category, the higher the fair value 3

The higher the industry cost index, the higher the fair value 4 The higher the discount rate, the lower the fair value

Valuation techniques used to determine level 2 and level 3 fair values Land The fair value of freehold land assets have been derived using the direct comparison approach whereby the evidence derived from the analysis of recent sales of similar properties is used to establish the value of the subject property (level 2 inputs). In this regard, sales evidence has been collected as close to the date of valuation as possible and compared to the subject property on the basis of quality, age, condition and size of improvements, location, land area and shape. The sales were then analysed on a sales price per square metre of land area and adjusted accordingly to reflect any character differences between the subject and the comparable sales data.

Buildings Non-specialised building assets where the asset can be identified as having the capability to be compared to open market conditions have been valued using the capitalised income approach whereby a yield is applied to the property’s income (actual or assumed) to assess its value. The yield applied to the potential rental return from the property is based on an analysis of sales and or leasing data and has been calculated by dividing the rental return from comparable sales against its sale price.

Specialised buildings and site improvements have been valued on the basis of Depreciated Replacement Cost. This has been determined by first establishing the estimated cost to replace with an equivalent new asset less depreciation for their physical, functional and economic obsolescence.

Most building assets possess an alternate use potential, however, that potential can only be realised if the underlying conditions of the land permit an alternate use. In most instances the land lease agreements Airservices has entered into preclude using the land and the building assets upon the land in any other way than to provide the specialised services specifically related to Airservices. Where the land lease conditions preclude Airservices from partaking in otherwise normal market activities, the building assets were valued as a specialised asset.

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Plant and Equipment In general plant and equipment assets are typical at each airport and only vary subject to the capacity of the airport. The assets include navigational aids, en route surveillance systems, on airport infrastructure and fire and rescue vehicles. These represent a specialised group of assets integrated to perform the control, monitoring and safety requirement of air and ground movement of commercial aircraft and airport support vehicles within Australia. As such, these assets have been valued based on Depreciated Replacement Cost.

Note 5C: Reconciliation for recurring Level 3 fair value measurements

There have been no transfers between levels.

Recurring Level 3 fair value measurements - reconciliation for assets Non-financial assets

Buildings Plant and equipment Total

2014 2014 2014

$'000 $'000 $'000

Opening balance 238,951 525,328 764,279

Total gains/(losses) recognised in net cost of services 4,893 (545) 4,348

Total gains/(losses) recognised in other comprehensive income 12,978 8,005 20,983 Purchases - 222 222

Commissioned 54,975 99,687 154,662

Disposals (961) (1,138) (2,099)

Depreciation (20,876) (73,317) (94,193)

Transfer to intangibles - (2,875) (2,875)

Closing balance 289,960 555,367 845,327

Other financial assets

2014

$'000

Opening balance 2,784

Change in sales projection (1,308)

Movement in discounted cash flow terms 360

Closing balance 1,836

Note 6 Dividends

(a) Dividends paid An interim dividend for the year ending 30 June 2014 of $6.0m (2013: $10.0m) was paid on the 17 June 2014. A final dividend of $10.0m for the year ended 30 June 2013 was paid on 28 February 2014 (2013: $11.0m final dividend for the year ending 30 June 2012).

(b) Franking credits Franking credits available for subsequent financial years based on a tax rate of 30% (30 June 2013: 30%) are $297.6m (30 June 2013: $285.9m).

The above amounts represent the balance of the franking account as at the end of the financial year.

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Note 7 Events after the reporting period

No events have occurred after the Statement of Financial Position date that should be brought to account or disclosed in the 2013-14 financial statements.

Note 8 Current assets - Cash and cash equivalents

2014 2013

$'000 $'000

Cash at bank and in hand 23,288 10,243

Deposit at call 57,200 47,000

80,488 57,243

(a) Cash at bank and in hand Cash at bank has a floating interest rate of 2.70% (30 June 2013: 2.95%) for balances up to $25m. For balances greater than $25m the interest rate is 2.50%. Cash in hand is non-interest bearing.

(b) Deposits at call The deposits at call have a floating interest rate of 2.50% (30 June 2013: 2.75%). These 11am cash deposits are rolled over on a daily basis.

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Note 9 Current assets - Trade and other receivables 2014 2013

$'000 $'000

Loans and receivables Trade receivables (a) 111,377 109,815

Provision for impairment of receivables (b) (1,510) (2,321)

109,867 107,494

Other receivables 631 453

Accrued revenue and interest 4,154 3,597

Income tax receivable 3,232 709

Total current receivables 117,884 112,253

(a) Ageing analysis of trade receivables 2014 2013

$'000 $'000

Current 85,484 83,125

Overdue by: 1 to 30 days 21,492 22,664

31 to 60 days 1,017 522

61 to 90 days 315 307

90 + days 3,069 3,197

Total 111,377 109,815

(b) Reconciliation for the provision for impairment of receivables 2014 2013

$'000 $'000

Opening balance 2,321 2,597

Decrease recognised in net profit (811) (276)

Closing balance 1,510 2,321

The provision for impairment of receivables is aged as follows:

2014 2013

$'000 $'000

Current 46 39

Overdue by: 1 to 30 days 55 46

31 to 60 days 56 13

61 to 90 days 48 13

90 + days 1,305 2,210

Total 1,510 2,321

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Note 10 Assets classified as held for sale

Three land assets and a residential property have been identified as surplus to the requirements of Airservices and have been classified as assets held for sale. Their disposals are expected to be completed within the 2014 -15 financial year. The carrying amount of the assets amounted to $0.110m (30 June 2013: $0.100m).

Note 11 Other current financial assets

2014 2013

$'000 $'000

Forward exchange contracts 311 628

Interest rate swaps - 5,804

Navigation and augmentation systems receivable 245 434

Total other current financial assets 556 6,866

The navigation and augmentation systems receivable represents the current portion of the royalty stream which Airservices is entitled to receive from the sale and use of these technologies. Refer Note 16 for non-current portion. Refer to Note 5 for basis of fair value measurement.

Note 12 Current assets - Other

2014 2013

$'000 $'000

Lease incentive - Current 1,231 1,252

This represents the current portion of the straight-lining adjustments associated with operating leases on office accommodation.

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Note 13 Non-current assets - Deferred tax assets

2014 2013

$'000 $'000

The balance comprises temporary differences attributable to:

Amounts recognised in the statement of comprehensive income Depreciation for accounting purposes (16,720) (6,359)

Allowance for impairment 817 696

Employee benefits 62,302 52,803

Provision for revenue to be returned to customers 1,219 2,044

Provision for legal costs 180 90

Other provisions 4,765 5,933

Accruals 5,283 (971)

57,846 54,236

Amounts recognised directly in equity Foreign exchange hedge reserve (93) (188)

Revaluation of land, buildings, plant and equipment (46,258) (40,425)

Defined benefit liability 12,105 31,911

(34,246) (8,702)

Net deferred tax assets 23,600 45,534

Movements: Opening balance at 1 July 45,534 105,148

Charged to the statement of comprehensive income 3,610 (5,038)

Credited to equity (25,544) (54,576)

Closing balance at 30 June 23,600 45,534

Tax losses Airservices has capital losses of $9.0m (30 June 2013: $9.5m) that are available indefinitely for offset against future capital gains. Deferred tax assets have not been recognised in respect of these losses as management has evaluated and concluded that it is not probable future capital gains will be available against which the Airservices can utilise these losses in the foreseeable future.

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Note 14

Non-current assets - Infrastructure, plant and equipment

Land

Buildings

Total land and buildings

Plant and equipment

Assets under construction

Total

$’000

$’000

$’000

$’000

$’000

$’000

As at 1 July 2013 Gross book value

47,956

250,129

298,085

588,594

210,769

1,097,448

Accumulated depreciation and impairment

-

(11,178)

(11,178)

(63,266)

-

(74,444)

Net book value 1 July 2013

47,956

238,951

286,907

525,328

210,769

1,023,004

Additions

-

-

-

222

193,685

193,907

Revaluations

(256)

18,071

17,815

7,460

-

25,275

Impairments recognised

-

-

-

-

(10,726)

(10,726)

Commissioned assets under construction

-

54,975

54,975

99,687

(154,662)

-

Assets under construction commissioned as software (refer to note 15)

-

-

-

-

(37,477)

(37,477)

Depreciation expense

-

(20,876)

(20,876)

(73,317)

-

(94,193)

Transferred to intangibles

-

-

-

(2,875)

-

(2,875)

Disposals

-

(961)

(961)

(1,138)

-

(2,099)

Transferred to assets held for sale

(10)

-

(10)

-

-

(10)

Net book value 30 June 2014

47,690

290,160

337,850

555,367

201,589

1,094,806

Net book value as of 30 June 2014 represented by: Gross book value

47,690

303,865

351,555

634,610

201,589

1,187,754

Accumulated depreciation and impairment

-

(13,705)

(13,705)

(79,243)

-

(92,948)

47,690

290,160

337,850

555,367

201,589

1,094,806

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Land

Buildings

Total land and buildings

Plant and equipment

Assets under construction

Total

$’000

$’000

$’000

$’000

$’000

$’000

As at 1 July 2012 Gross book value

48,080

187,546

235,626

536,052

267,310

1,038,988

Accumulated depreciation and impairment

-

(9,125)

(9,125)

(53,905)

-

(63,030)

Net book value 1 July 2012

48,080

178,421

226,501

482,147

267,310

975,958

Additions

-

9

9

(112)

191,789

191,686

Revaluations

256

4,279

4,535

(5,688)

-

(1,153)

Impairments recognised

(350)

(256)

(606)

(1,920)

(776)

(3,302)

Commissioned assets under construction

75,093

75,093

121,329

(196,422)

-

Assets under construction commissioned as software (refer to note 15)

-

-

-

-

(51,132)

(51,132)

Depreciation expense

-

(18,545)

(18,545)

(66,251)

-

(84,796)

Transferred from intangibles

-

-

-

8

-

8

Disposals

(30)

(50)

(80)

(4,185)

-

(4,265)

Net book value 30 June 2013

47,956

238,951

286,907

525,328

210,769

1,023,004

Net book value as of 30 June 2013 represented by: Gross book value

47,956

250,129

298,085

588,594

210,769

1,097,448

Accumulated depreciation and impairment

-

(11,178)

(11,178)

(63,266)

-

(74,444)

47,956

238,951

286,907

525,328

210,769

1,023,004

Airservices Annual Report 2013-14 85

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29

(a) Revaluation of land, buildings, plant and equipment The valuation basis for land, buildings, plant and equipment is fair value as outlined in Note 5.

Airservices engaged accredited valuers Aon Valuation Services to value its land, buildings, plant and equipment (the valuers were also used for the previous year). The reversal of prior year revaluation decreases (for the same asset), were recognised by crediting the statement of comprehensive income. In all other cases, the revaluation surplus net of deferred income taxes was credited to the asset revaluation reserve. The effective date of the revaluation was 30 June 2014.

(b) Impairment In line with accounting standards, management has performed an impairment review of both existing assets and assets under construction. Principally, the review has focused on future use of existing assets, and changes in technology and business system requirements.

(c) Carrying amounts that would have been recognised if land, plant and equipment were measured using the cost model:

2014 2013

$'000 $'000

Land At cost 2,271 2,271

2,271 2,271

Buildings At cost 388,853 339,445

Accumulated depreciation (162,125) (150,222)

Net book amount 226,728 189,223

Plant and Equipment At cost 1,095,379 1,034,217

Accumulated depreciation (521,390) (481,524)

Net book amount 573,989 552,693

(d) Borrowing Costs

The amount of borrowing costs capitalised during the year ended 30 June 2014 was $6.0m (2013: $6.0m). As Airservices borrows money generally to fund both operating and capital expenditure, the weighted average cost of borrowings of 5.04% (2013: 5.24%) was used as the capitalisation rate.

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30

Note 15

Non-current assets - Intangible assets

2014

2013

Internally developed software

Other intangible assets

Total intangible assets

Internally developed software

Other intangible assets

Total intangible assets

$’000

$’000

$’000

$’000

$’000

$’000

As at 1 July Gross book value

208,413

65,732

274,145

169,667

58,471

228,138

Accumulated amortisation and impairment

(136,310)

(49,172)

(185,482)

(119,458)

(40,588)

(160,046)

Net book value 1 July

72,103

16,560

88,663

50,209

17,883

68,092

Additions

-

-

-

-

40

40

Transferred from assets under construction

34,250

3,227

37,477

43,053

8,079

51,132

Impairments recognised

-

(481)

(481)

(800)

(4)

(804)

Amortisation expense

(16,133)

(8,021)

(24,154)

(20,343)

(9,389)

(29,732)

Transferred from / (to) property, plant and equipment

2,875

-

2,875

-

(8)

(8)

Disposals

-

-

-

(16)

(41)

(57)

Net book value 30 June

93,095

11,285

104,380

72,103

16,560

88,663

Net book value as of 30 June represented by: Gross book value

245,364

67,988

313,352

208,413

65,732

274,145

Accumulated amortisation and impairment

(152,269)

(56,703)

(208,972)

(136,310)

(49,172)

(185,482)

93,095

11,285

104,380

72,103

16,560

88,663

Airservices Annual Report 2013-14 87

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Note 16 Non-current assets - Other financial assets

2014 2013

$'000 $'000

Interest rate swaps 14,396 -

Navigation and augmentation systems receivable 1 1,591 2,350

Total Non-current assets - other financial assets 15,987 2,350

1

This represents the non-current portion of the royalty stream which Airservices is entitled to receive from the sale and use of

these technologies. Refer Note 11 for current portion. Refer to Note 5 for basis of fair value measurement.

Airservices Annual Report 2013-14 88

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32

Note 17 Provisions and payables

2014 2013

$'000 $'000

(a) Current payables and provisions

Current payables Suppliers Trade payables 15,415 16,072

Employees Salaries and wages 18,378 16,110

Superannuation 3,655 3,033

Revenue received in advance 1,627 1,832

Interest payable 2,603 2,134

Accrued payroll tax 4,074 3,532

Net goods and services tax payable 12,813 12,741

Group tax payable 5,959 5,439

Other accrued expenses 31,740 34,991

Total current payables 96,264 95,884

Current provisions Employee benefits Recreation leave 1 61,624 55,960

Long service leave 2 143,172 130,040

Separations and redundancies 2,491 955

On-costs associated with employee benefits 12,463 11,374

Workers compensation 417 434

Revenue to be returned to customers 4,062 6,815

ARFF decontamination 4,153 3,625

Litigation and legal costs 600 300

Other 1,459 450

Makegood on leasehold assets 1,179 2,485

Total current provisions 231,620 212,438

Total current provisions and payables 327,884 308,322

(b) Non-current provisions

Employee benefits Long service leave 32,237 26,138

Separations and redundancies 15,318 17,309

On-costs associated with employee benefits 1,917 1,567

ARFF decontamination 4,594 7,519

Makegood on leasehold assets 7,359 6,584

Workers compensation 2,581 3,011

Total non-current provisions 64,006 62,128

1

Recreation leave expected to be settled within 12 months from the reporting date is $50.5m, and greater than 12 months is $11.1m.

2

Long service leave expected to be settled within 12 months from the reporting date is $24.7m, and greater than 12 months is $118.5m.

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(c) Description of provision

Employee benefits:

• Workers compensation These provisions represent Airservices' self insured liability for workers compensation prior to 1 July 1989, which is calculated annually by an independent actuary.

• Separations and redundancies This includes $15.3m (30 June 2013: $17.3m) in early retirement benefits which have been elected to be taken by employees as a lump sum on retirement, and $2.5m (30 June 2013: $1.0m) relating to redundancy provisions in relation to the restructuring of the organisation.

Revenue to be returned to customers In accordance with the long term pricing agreement a $4.1m (30 June 2013: $6.8m) revenue rebate provision has been recorded relating to the deferral of new ARFF services which were anticipated to be introduced this year.

ARFF decontamination The provision relates to the assessment, management and containment of possible contaminated ARFF training sites as outlined in the Environmental Management Plan (EMP) as discussed in note 22.

Litigation and legal costs This provision includes the settlement and legal costs of Airservices on ongoing matters which commenced prior to 30 June 2014.

Makegood on leasehold assets The provision relates to the decommissioning and restoration of leased property sites.

Other The provision includes the removal and decommissioning of underground fuel storage tanks and asbestos affected sites.

Airservices Annual Report 2013-14 90

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34

2014 2013

$'000 $'000

(d) Movements in provisions (excluding employee benefits)

(i) Revenue to be returned to customers (Current) Carrying amount at start of period 6,815 2,330

Additional provisions recognised 4,062 6,815

Credit notes issued (6,790) (2,316)

Rebate not returned to customers (25) (14)

Carrying amount at end of period 4,062 6,815

(ii) ARFF decontamination (Current/Non-current) Carrying amount at start of period 11,144 12,585

Adjustment to provision (20) (121)

Payments (2,377) (1,320)

Carrying amount at end of period 8,747 11,144

(iii) Litigation and legal costs (Current) Carrying amount at start of period 300 1,900

Adjustment to provision 600 (93)

Payments (300) (1,507)

Carrying amount at end of period 600 300

(iv) Decommissioning and restoration (Makegood - Current/Non-current) Carrying amount at start of period 9,069 9,403

Additional provisions recognised 177 135

Payments (708) (469)

Carrying amount at end of period 8,538 9,069

(v) Other (Current) Carrying amount at start of period 450 169

Additional provisions recognised 1,199 281

Payments (190) -

Carrying amount at end of period 1,459 450

Airservices Annual Report 2013-14 91

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Note 18 Borrowings and other current financial liabilities

2014 2013

$'000 $'000

(a) Unsecured - Bank loans

Current 1 19,913 224,337

Non-current 2 470,570 198,872

Total borrowings 490,483 423,209

1

This represents amounts issued under a $300m commercial paper program in two separate tranches on 10 April 2014, and

28 April 2014.

2

This represents a $200m Medium Term Note (MTN) tranche that was issued on 2 November 2011 and will mature on 15

November 2016 and a $275m MTN tranche that was issued on 28 November 2013 and will mature on 19 November 2020.

(b) Other current financial liabilities Interest rate swaps 565 -

Total Other current financial liabilities 565 -

Note 19 Defined benefit fund asset / (liability)

(a) Superannuation plan

Airservices is the principal sponsor of the superannuation fund, AvSuper. The plan has a defined benefit scheme and an accumulation section. The defined benefit section provides benefits based on the length of service and final average salary. The accumulation section receives fixed contributions in accordance with the Superannuation Guarantee Administration Act requirements and Airservices’ legal constructive obligations are limited to these contributions and member benefits reflect these contributions and the funds market performance.

The following sections (b) to (j) set out details relating only to the defined benefits section of the Plan.

2014

2013

Restated

$'000 $'000

(b) Benefit asset / liability

The amounts recognised in the statement of financial position are determined as follows:

Present value of the defined benefit obligation (900,189) (857,257)

Fair value of defined benefit plan assets 933,487 829,441

Net benefit asset / (liability) - non-current 33,298 (27,816)

(c) Categories of plan assets

The major categories of plan assets are as follows:

Cash 106,954 74,330

Equity instruments 569,548 549,471

Debt instruments 160,912 96,739

Other assets 96,073 108,901

933,487 829,441

Airservices Annual Report 2013-14 92

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(d) Reconciliations

2014

2013

Restated

$'000 $'000

Reconciliation of the present value of defined benefit obligation: Balance at the beginning of the year 857,257 901,107

Current service cost 33,576 33,960

Contribution by members 12,013 12,113

Interest cost 31,849 26,516

Remeasurements Effect of changes in financial assumptions (11,336) (71,755)

Effect of experience adjustments 19,990 (5,843)

Benefits paid (43,160) (38,841)

Balance at the end of the year 900,189 857,257

2014

2013

Restated

$'000 $'000

Reconciliation of the fair value of plan assets: Balance at the beginning of the year 829,441 704,581

Interest income 31,560 21,201

Remeasurements Return on plan assets (excluding interest income) 74,679 100,481

Contribution by Airservices 28,954 29,906

Contribution by members 12,013 12,113

Benefits paid (43,160) (38,841)

Balance at the end of the year 933,487 829,441

(e) Net amount recognised in the Statement of Comprehensive Income

The amounts recognised in the Statement of Comprehensive Income are as follows:

2014

2013

Restated

$'000 $'000

i Defined benefit cost recognised in profit or loss Current service cost 33,576 33,960

Interest on the net defined benefit liability 289 5,315

Total included in employee benefits expense 33,865 39,275

ii Remeasurements (recognised in other comprehensive income) Effect of changes in financial assumptions (11,335) (71,755)

Effect of experience adjustments 19,990 (5,843)

Return on plan assets (excluding interest income) (74,679) (100,481)

Total remeasurements included in OCI (66,024) (178,079)

iii Total defined benefit cost recognised in the statement of comprehensive income (32,159) (138,804)

Actual return on plan assets 103,962 137,715

Airservices Annual Report 2013-14 93

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(f) Principal actuarial assumptions

The principal actuarial assumptions used (expressed as weighted averages) were as follows:

2014 2013

% %

Discount rate 3.90 3.80

Future salary increases 5.00 5.00

The economic assumptions used by the actuary to make the funding arrangements were: • a discount rate of 3.9% p.a. derived by interpolation between the yield on 10 year and 15 year Australian Government Bonds at 30 June 2014 where the interpolation is based on the estimated mean term of each bond.

• the salary increase rate is the long term expected rate including a full allowance for promotional increases.

(g) Sensitivity analysis

A sensitivity analysis for the key actuarial assumptions, holding other assumptions constant, and their potential impact on the defined benefit obligation (as set out in section (a)) are shown below.

Increase Decrease

2014 $'000 $'000

Discount rate (0.5% movement) (54,534) 59,211

Future salary increases (0.5% movement) 55,706 (51,902)

(h) Maturity profile

The following payments are expected to be made in the future years out of the defined benefit plan obligation.

2014 2013

$'000 $'000

Undiscounted Benefit Payments 1 year or less 46,000 73,000

2 to 5 years 231,000 298,000

5 to 10 years 303,000 309,000

Greater than 10 years 1,657,000 1,123,000

Total expected payments 2,237,000 1,803,000

The average duration of the defined benefit plan obligation at the end of the reporting period is 11 years (2013: 11 years).

Airservices Annual Report 2013-14 94

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38

(i) Employer contributions

Employer contribution rates are reviewed with each actuarial investigation of the Plan undertaken for the Trustee. An actuarial investigation of the Plan is made each year and the last such assessment was made as at 1 July 2013.

Employer contributions for Airservices to the defined benefit section of AvSuper are currently:

• 16.5% of gross salary for Air Traffic Controllers (2012-13: 16.5%);

• 16.5% of gross salary for other employees (2012-13: 16.5%); and

• 3% for those employees who remain members of the Commonwealth Superannuation Scheme (CSS) (2012-13: 3%).

The employer has decided to make additional contributions to the Plan, if required, in June each year, after considering the advice of the actuary and the Trustee.

The objectives in setting the contribution rate are to ensure:

i. the benefit entitlements of members and other beneficiaries are fully funded by the time they become payable; and

ii. there is a low probability that the assets are insufficient to meet the minimum benefit liabilities of the Fund should it terminate.

To achieve the first objective, the actuary has adopted a method of funding benefits known as the Attained Age Normal funding method. This funding method seeks to have benefits funded by means of a total contribution which is expected to be a constant percentage of member's salaries over their remaining working lifetimes. To achieve the second objective, the actuary undertakes scenario testing of the short term financial position of the Plan.

Employer contributions expected to be paid by Airservices for the year ending 30 June 2015 amount to approximately $30.1m, not including any additional contributions required.

(j) Net Financial position of the plan

In accordance with AAS 25 Financial Reporting by Superannuation Plans, the Plan's net financial position is determined as the difference between the present value of the accrued benefits and the net market value of Plan assets. This was determined as at the date of the most recent financial report of AvSuper (30 June 2013), when a surplus of $178.9m was reported. Last year in these financial statements Airservices recognised a defined benefit liability of $53.8m at 30 June 2013 (restated to $27.8m in this year’s comparatives, following the changes in AASB 119). The difference between the amounts is due to the different accounting treatment of the net financial position for the employer under AASB 119, and the Plan under AAS 25.

At 30 June 2014 these financial statements disclose a defined benefit asset of $33.3m. AvSuper's net financial position for the Plan under AAS 25 will not be available until after these financial statements have been signed.

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Note 20 Non-current liabilities - Other

2014 2013

$'000 $'000

(a) Other non-current financial liabilities Interest rate swaps 3,804 -

(b) Non-current liabilities - Other Lease liability - Non-current 8,400 6,170

This represents the non-current portion of the straight-lining adjustments associated with operating leases on office accommodation.

Note 21 Reserves and retained earnings

2014 2013

$'000 $'000

(a) Reserves

Asset revaluation reserve 107,936 94,324

Foreign exchange hedge reserve 217 (824)

108,153 93,500

Movements:

Asset revaluation reserve Opening balance 94,324 91,292

Net revaluation 20,897 5,864

Income tax effect on net revaluation (6,269) (1,759)

Revaluation reserve - disposals (1,016) (1,073)

107,936 94,324

Foreign exchange hedge reserve Opening balance (824) (2,250)

Net revaluation 1,487 2,037

Income tax effect on net revaluation (446) (611)

217 (824)

(b) Retained earnings

Movements in retained earnings were as follows:

2014

2013

Restated

$'000 $'000

Opening balance 203,497 52,826

Net profit after tax for the year 21,323 45,484

Dividend paid (16,000) (21,000)

Defined benefit fund movements direct to equity 66,024 178,079

Income tax effect on the defined benefit fund movements (19,807) (53,424)

Revaluation reserve - disposals 1,452 1,532

256,489 203,497

Airservices Annual Report 2013-14 96

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40

Note 22 Contingencies

(a) Contingent Liabilities Airservices had contingent liabilities at 30 June 2014 in respect of:

Legal Claim Airservices is aware of litigation in three jurisdictions in relation to the provision of its services. At this stage it is not possible to estimate the amounts of any eventual payments that may be required in relation to this matter.

Airservices has been notified of a claim from a supplier in relation to the early termination of the supplier’s contract. It is not possible to estimate the amount of any eventual payment in relation to this claim.

Aviation Rescue & Fire Fighting (ARFF) potential contaminated site management Airservices has identified a number of sites around the country that have been potentially contaminated with chemicals that were contained in fire fighting foams. The foams containing these chemicals were widely used internationally and were used by Airservices from 1980. The identified contaminants do not breakdown in the natural environment.

Testing and assessment of the fire training grounds commenced in 2008-09 with some additional site assessments conducted in the years following. The focus during the 2014 financial year has been on completing more detailed site assessments at three locations, developing environmental management plans for contamination at these locations,

undertaking research and development investigations into contaminated waste treatment options and development of investigation trigger levels to address the absence of regulated thresholds for these contaminants. This work will continue for the next few years.

To facilitate this process and other activity related to this issue, a sum of $8.7m has been provided for at 30 June 2014 (refer to Note 17). It is not possible to quantify any potential remediation costs at this time.

Note 23 Standby arrangements and unused credit facilities

2014 2013

$'000 $'000

Bank overdraft 5,000 5,000

Total credit facilities 5,000 5,000

Unused credit facilities 5,000 5,000

Loan facilities Commercial paper (only expires if cancelled) 300,000 300,000

Medium term note program 750,000 400,000

Committed standby facilities 230,000 230,000

Uncommitted 11am borrowing 60,000 60,000

Total loan facilities 1,340,000 990,000

Amount utilised (495,000) (425,000)

Unused loan facilities 845,000 565,000

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41

Note 24 Remuneration of auditors

2014 2013

$ $

Auditing services provided by the Australian National Audit Office 270,000 270,000

Audit services for Airservices are provided by the Australian National Audit Office and are subcontracted to Crowe Horwath. No other services were provided by Crowe Horwath.

Note 25 Remuneration of directors

2014 2013

The number of non-executive directors of the entity included in these figures are shown below in the relevant remuneration bands: No. No.

$0 - $29,999 1 1

$30,000 - $59,999 5 4

$60,000 - $89,999 1 3

$120,000 - $149,999 1 1

Total 8 9

$ $

Total remuneration received or due and receivable by directors of the entity 514,214 554,459

The remuneration of the Chief Executive Officer (who was an Executive Director during the year) is disclosed with the remuneration of senior executives and is not included in Director's remuneration.

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Note 26 Senior executive remuneration

(a) Senior executive remuneration expense for the reporting period

2014 2013

$'000 $'000

Short-term employee benefits: Salary 3,132 2,208

Performance bonus 778 495

Total short-term employee benefits 3,910 2,703

Post-employment benefits: Superannuation (post-employment benefits) 358 313

Total post-employment benefits 358 313

Other long-term benefits: Recreation leave accrued 19 68

Long service leave 149 119

Total other long-term benefits 168 187

Termination benefits 655 -

Total 5,091 3,203

Notes:

Note 26 (a) was prepared on an accruals basis so the performance bonus disclosed above differ from the cash 'Bonus paid' in Note 26 (b).

Note 26 (a) excludes acting arrangements and part-year service where remuneration expensed for a senior executive was less than $195,000.

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43

(b) Average annual reportable remunera

tion paid to substantive senior executives during the reporting period

2014

Average annual reportable remuneration

1

Senior

Executives

Reportable

salary

2

Contributed

superannuation

3

Reportable allowances

4

Bonus paid

5

Total

No.

$

$

$

$

$

Total remuneration (includi

ng part-time arrangements):

$195,000 to $224,999

1

138,737

13,503

-

56,840

209,080

$225,000 to $254,999

1

209,570

21,779

-

-

231,349

$285,000 to $314,999

1

250,752

26,509

-

12,367

289,628

$315,000 to $344,999

1

224,729

26,052

-

69,493

320,274

$345,000 to $374,999

2

289,198

27,163

-

49,758

366,119

$465,000 to $494,999

1

352,097

33,111

-

93,229

478,437

$495,000 to $524,999

3

348,936

46,211

-

111,602

506,749

$525,000 to $554,999

1

430,398

44,407

-

62,373

537,178

Total

11

2013

Average annual reportable remuneration

1

Senior

Executives

Reportable

salary

2

Contributed

superannuation

3

Reportable allowances

4

Bonus paid

5

Total

No.

$

$

$

$

$

Total remuneration (includi

ng part-time arrangements):

Less than $195,000

2

86,615

9,594

-

30,932

127,141

$255,000 to $284,999

1

209,761

24,224

-

42,750

276,735

$315,000 to $344,999

2

273,209

28,920

-

15,686

317,815

$345,000 to $374,999

2

251,062

43,052

-

70,897

365,011

$405,000 to $434,999

1

299,250

32,639

-

83,416

415,305

$465,000 to $494,999

1

320,799

76,483

-

97,553

494,835

$495,000 to $524,999

1

354,886

38,369

-

105,685

498,940

Total

10

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44

1 This table reports substantive

senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2 'Reportable Salary' includes the following: (a) gross payments (less any bonuses paid, which are s

eparated out and disclosed in the 'bonus paid' column);

(b) reportable fringe benefits (at the net amount prior to 'grossing up’ to account for tax benefits); and

(c) salary sacrificed superannuation. 3 The 'contributed superannuation' amount is the

average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period.

4 'Reportable allowances' are the average actual

allowances paid as per the 'total allowances' line on individuals' payment summaries.

5 'Bonus paid' represents average

actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to

various factors such as individuals commencing with

or leaving the entity during the financial year.

6 Various salary sacrifice arrangements were

available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the

'reportable salary' column.

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45

(c) Other highly paid staff

2014

Average annual reportable remuneration

1

Other highly paid staff

Reportable

salary

2

Contributed

superannuation

3

Reportable allowances

4

Bonus paid

5

Total

No.

$

$

$

$

$

Total reportable remuneration (including part time arrangements): $195,000 to $224,999

415

181,851

26,412

14

2,846

211,123

$225,000 to $254,999

316

203,989

31,553

22

2,428

237,992

$255,000 to $284,999

145

227,698

35,822

49

3,372

266,941

$285,000 to $314,999

31

250,094

38,283

349

7,263

295,989

$315,000 to $344,999

1

247,470

23,432

-

46,338

317,240

$345,000 to $374,999

3

314,217

21,246

-

14,341

349,804

$375,000 to $404,999

2

349,685

33,814

4,751

-

388,250

$405,000 to $434,999

5

380,420

37,589

110

-

418,119

$435,000 to $464,999

2

410,525

31,424

-

8,720

450,669

$495,000 to $524,999

1

454,037

42,785

-

-

496,822

$525,000 to $554,999

1

516,410

29,397

-

-

545,807

Total

922

2013

Average annual reportable remuneration

1

Other highly paid

staff

Reportable

salary

2

Contributed

superannuation

3

Reportable allowances

4

Bonus paid

5

Total

No.

$

$

$

$

$

Total reportable remuneration (including part time arrangements): $195,000 to $224,999

427

180,423

28,084

21

2,309

210,837

$225,000 to $254,999

270

202,843

32,873

35

1,824

237,575

$255,000 to $284,999

95

221,466

38,627

34

5,747

265,874

$285,000 to $314,999

16

246,419

38,459

110

9,844

294,832

$315,000 to $344,999

2

298,062

30,665

-

-

328,727

$345,000 to $374,999

8

319,069

29,998

399

4,646

354,112

$375,000 to $404,999

2

359,620

28,580

-

-

388,200

$405,000 to $434,999

1

363,153

20,005

-

25,780

408,938

$435,000 to $464,999

1

430,383

24,438

-

-

454,821

$495,000 to $524,999

1

452,588

42,927

-

-

495,515

Total

823

Airservices Annual Report 2013-14 102

05 Notes to Financial Statements for the year ended 30 June 2014

Airservices Australia NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

46

1 This table reports staff:

a) who were employed by the entity during the reporting period;

b) whose reportable remuneration was $195,000 or more for the financial period; and

c) were not required to be disclosed in

Tables A, B or director disclosures.

Each row is an averaged figure based on

headcount for individuals in the band.

2 ‘Reportable Salary' includes the following:

(a) gross payments (less any bonuses paid, which are separated out

and disclosed in the 'bonus paid' column), which includes early retirement benefits which have been elected to be taken as a

lump sum as described in note 17(c);

(b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits); and

(c) salary sacrificed superannuation. 3 The 'contributed superannuation' amount is t

he average actual superannuation contributions paid to staff in that reportable remuneration band during the reporting period. Note that these balances reflect

the age profile of the organisation's employees and that a signifi

cant number of employees included are part of the AvSuper Defined Benefit Scheme.

4 Reportable allowances' are the average act

ual allowances paid as per the 'total allowances' line on individuals' payment summaries.

5 'Bonus paid' represents average

actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to

various factors such as individuals commencing with

or leaving the entity during the financial year.

6 Various salary sacrifice arrangements were available to other

highly paid staff including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the

'reportable salary' column.

Airservices Annual Report 2013-14 103

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Note 27 Related party transactions

(a) Directors The names of persons who were Directors of Airservices during the financial year and up to the date of signing these financial statements are as follows:

Status Commenced Finished

Chairman

Angus Houston On-going Current

Deputy Chairman

Warren Mundy On-going 31 October 2013

Tony Mathews 21 July 2014 Current

Directors

Samantha Betzien On-going Current

David Burden On-going 31 May 2014

Annette Kimmitt On-going Current

Paul Lucas On-going Current

Tony Mathews On-going Current

Fiona Balfour On-going Current

Tim Rothwell 21 July 2014 Current

David Marchant 21 July 2014 Current

Chief Executive Officer

Margaret Staib On-going Current

Mark Rodwell Acting 3 May 2014 8 May 2014

23 June 2014 7 July 2014

(b) Executives The names of persons who were Executives of Airservices during the financial year (excluding the CEO, included above) and up to the date of signing these financial statements are as follows:

Executives Title Commenced Finished

Stephen Angus Executive GM Safety & Assurance On-going 28 February 2014

Mairi Barton Executive GM Corporate and Industry Affairs 16 June 2014 Current

Michelle Bennetts Executive GM Aviation Rescue & Fire Fighting On-going Current

Andrew Boyd Executive GM People and Culture On-going Current

Andrew Clark Chief Financial Officer On-going Current

Jason Harfield Executive GM Future Service Delivery On-going Current

Greg Hood Executive GM Air Traffic Control 1 July 2013 Current

Unni Mennon Executive GM Corporate and Industry Affairs On-going 6 December 2013

Mark Rodwell Executive GM Projects & Engineering On-going Current

Robert Weaver Executive GM Safety, Environment & Assurance On-going Current

Elissa Keenan A/ Executive GM Corporate and Industry Affairs 7 December 2013 15 June 2014 Gordon Dunsford Chief Information Officer 29 July 2013 27 March 2014

Airservices Annual Report 2013-14 104

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(c) Transactions with related parties

Certain director-related entities have transactions with Airservices that occur within normal customer or supplier relationships on terms and conditions no more favourable than those which it is reasonable to expect Airservices would have adopted if dealing with the director-related entity at arm’s length in similar circumstances. These transactions

include the following entities and have been described below where the transactions are considered likely to be of interest to users of these financial statements:

 Airservices received legal services from Minter Ellison amounting to $553,487 for the period 1 July 2013 to 30 June 2014 during which time Samantha Betzien was both a director of Airservices and a partner with Minter Ellison.

 Airservices received professional services from Ernst and Young amounting to $415,407 for the period 1 July 2013 to 30 June 2014 during which time Annette Kimmitt was both a director of Airservices and a partner with Ernst and Young.

 Airservices has contributed employer superannuation payments and administration fees to the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS) of $8,204,112 for the period 1 July 2013 to 30 June 2014. Margaret Staib was appointed as a director of the Commonwealth Superannuation Corporation from 2 May 2014. The Commonwealth Superannuation Corporation acts as the trustee for both the CSS and PSS.

 To the extent permitted by law, Airservices provides indemnities to its directors and officers to complement the insurance arrangements that it has in place.

Airservices Annual Report 2013-14 105

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Note 28 Financial instruments

Airservices has exposure to credit risk, liquidity risk, market risk and foreign exchange risk arising from its operations and use of financial instruments. Airservices uses financial instruments to manage these risks within a framework consisting of a comprehensive set of risk management policies. These risks are managed centrally and speculative trading is strictly prohibited.

(a) Fair value measurements

The fair values of foreign currency Forward Exchange Contracts (FECs) and Interest Rate Swaps (IRSs) are calculated using a credit adjusted discounted cash-flow methodology (fair values for 2013 were not credit adjusted). FEC and IRS contracted rates are compared to current market rates to calculate future cash flows which are then discounted to arrive at a present value.

Airservices measures the fair value of its derivative assets and liabilities on a net basis. As at 30 June 2014, when netting is applied to the FEC portfolio, currency derivative assets of $0.3 million are reduced by zero to the net amount of $0.3 million (30 June 2013: currency derivative assets of $0.7 million are reduced by $0.1 million to the net amount of $0.6 million). When netting is applied to the IRS portfolio, interest rate swap assets of $14.9 million are reduced by $4.9 million to the net amount of $10.0 million (30 June 2013: interest rate swap assets of $11.3 million are reduced by $5.5 million to the net amount of $5.8 million).

Medium Term Note and Commercial Paper fair values reflect the price that an existing investor is prepared to receive if they were to sell their investment in the secondary market. These prices are provided by independent secondary market traders.

Other financial assets represent the royalty stream which Airservices is entitled to receive from the sale and use of airways navigation systems. The asset is valued at fair value through profit and loss by applying a discounted cash flow methodology. The significant level 3 inputs to this valuation are the sales forecast, discount rate and foreign exchange rate.

Refer to Note 5 for fair value measurement basis of these instruments.

Carrying Fair Carrying Fair

amount value amount value

2014 2014 2013 2013

$'000 $'000 $'000 $'000

Assets Forward exchange contracts 311 311 628 628

Cash and cash equivalents 80,488 80,488 57,243 57,243

Receivables 117,884 117,884 112,253 112,253

Interest rate swaps 10,027 10,027 5,804 5,804

Other financial assets 1,836 1,836 2,784 2,784

Total assets 210,546 210,546 178,712 178,712

Liabilities Medium Term Notes 470,570 502,184 348,633 364,998

Trade and other payables 96,264 96,264 95,884 95,884

Commercial Paper 19,913 19,892 74,576 74,617

Total liabilities 586,747 618,340 519,093 535,499

Airservices Annual Report 2013-14 106

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(b) Financial risk

Airservices' financial risk management policy identifies the risks faced by the organisation. It sets the risk limits, identifies the controls and determines the process for monitoring and adhering to limits. The policy is designed to add value without adding to the overall risks of the organisation.

The financial risk management policy and systems are reviewed regularly to reflect changes in market practices and Airservices' activities. Internal audit undertakes ad hoc reviews of financial risk management policy, controls and procedures, the results of which are reported to the Board Audit and Risk Committee.

Airservices uses financial instruments to manage its financial risks. The central Treasury unit identifies and evaluates the financial risks in close co-operation with other Airservices units and seeks to minimise potential adverse effects on the financial performance.

As a result of the nature of Airservices' business and internal policies dealing with the management of financial risk, Airservices’ exposure to credit, liquidity and market risk is considered to be low.

(c) Credit risk

Credit risk represents the risk that one party to a transaction will fail to discharge an obligation and cause the other party to suffer a financial loss. Airservices invests money and enters into financial derivative contracts with authorised counterparties whose long term credit rating is at, or above, A- (Standard and Poor's) or A3 (Moody's). The maximum credit limit for each approved counterparty is currently $70 million. Counterparty credit exposure is assessed using the principles of the Australian Prudential Regulatory Authority 'Current Exposure Method'.

Airservices is exposed to credit risk arising from potential default of debtors. This is equal to the total amount of trade and other receivables (2014: $117.9m and 2013: $112.3m). Airservices has assessed the risk of the default on payment and has allocated $1.5m in 2014 (2013: $2.3m) as an allowance for impairment.

Airservices trades only with recognised, creditworthy third parties, and as such collateral is not requested nor is it Airservices' policy to securitise its trade and other receivables.

Credit risk of financial instruments not past due or individually determined as impaired.

Not past due nor impaired Not past due

nor impaired Past due or impaired Past due or

impaired

2014 2013 2014 2013

$'000 $'000 $'000 $'000

Loans and receivables 85,438 83,086 25,939 26,729

Total 85,438 83,086 25,939 26,729

Airservices is also exposed to credit risk arising from the cross-border financing arrangement as detailed in note 31.

Airservices Annual Report 2013-14 107

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(d) Liquidity risk

Liquidity risk management is concerned with ensuring there are sufficient funds available to meet financial commitments in a timely manner whilst also planning for unforeseen events which may reduce cash inflows and cause pressure on liquidity.

The primary objectives of short term liquidity risk management are to ensure sufficient funds are available to meet daily cash requirements, whilst ensuring that cash surpluses in low interest bearing accounts are minimised.

The primary objective of long term liquidity risk management is to ensure that funding (i.e. debt) facilities are in place to meet future long term funding requirements.

Average Floating 1 year or 1 to 5 More Non-

interest interest less years than interest Total

rate rate 5 years bearing

2014 % $'000 $'000 $'000 $'000 $'000 $'000

Financial liabilities

Non-derivative Trade and other payables - - - - - 96,264 96,264

Commercial paper 2.75 20,000 - - - - 20,000

Medium term notes 5.29 - 24,063 268,750 294,594 - 587,407

Derivative Interest rate swaps 1 - - (5,753) (23,010) (4,646) - (33,409)

Interest rate swaps 2 - - 3,003 6,006 485 - 9,494

Net financial liabilities 20,000 21,313 251,746 290,433 96,264 679,756

1 weighted average interest rates at 30 June were pay float at 2.72% and receive fixed at 4.48%. 2 weighted average interest rates at 30 June were pay fixed at 4.03% and receive float at 2.71%.

Average Floating 1 year or 1 to 5 More Non-

interest interest less years than interest Total

rate rate 5 years bearing

2013 % $'000 $'000 $'000 $'000 $'000 $'000

Financial liabilities

Non-derivative Trade and other payables - - - - - 95,884 95,884

Commercial paper 2.87 75,000 - - - - 75,000

Medium term notes 5.70 - 169,250 227,500 - - 396,750

Derivative Interest rate swaps (3) - (3,308) (13,230) - - (16,538)

Interest rate swaps (4) - - 2,583 5,166 - - 7,749

Net financial liabilities 75,000 168,525 219,436 - 95,884 558,845

3 weighted average interest rates at 30 June were pay float at 3.61% and receive fixed at 5.08%. 4 weighted average interest rates at 30 June were pay fixed at 5.27% and receive float at 3.63%.

Airservices Annual Report 2013-14 108

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(e) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. The following table is a sensitivity analysis of the market risk that Airservices is exposed to through the use of foreign exchange and interest rate derivatives as well as investments and borrowings.

Interest rate sensitivity analysis is calculated on a 'reasonably possible' basis with reference to the key drivers of interest rates, market expectations and historical data. In analysing interest rate sensitivities Airservices has adopted to vary actual interest rates by +/- 0.60%.

Airservices has adopted a simplified approach to calculate market risk sensitivities for foreign exchange contracts. A standard sensitivity variable of 11.5% has been applied to all currencies. Airservices acknowledges that it is necessary to monitor annual movements in currencies to ensure the relevance of using a single constant rate.

Effect of positive Effect of negative

2014 movement movement

Change in

Carrying risk Profit Profit

amount variable and loss Equity and loss Equity

$'000 +/-% $'000 $'000 $'000 $'000

Currency risk Buy EUROs 2,762 11.50 - (316) - 398

Interest rate risk Cash and cash equivalents 80,488 0.60 483 - (483) -

Medium term notes 470,570 - - - - -

Interest rate swaps 552,500 0.60 (4,393) - 4,586 -

Commercial paper 19,913 0.60 (120) - 120 -

Effect of positive Effect of negative

2013 movement movement

Change in

Carrying risk Profit Profit

amount variable and loss Equity and loss Equity

$'000 +/-% $'000 $'000 $'000 $'000

Currency risk Buy EUROs 11,793 15.70 - (1,660) - 2,276

Buy US Dollars 231 15.70 (31) - 43

Interest rate risk Cash and cash equivalents 57,243 1.20 687 - (687) -

Medium term notes 348,633 - - - - -

Interest rate swaps 382,500 1.20 (1,640) - 1,688 -

Commercial paper 74,576 1.20 (900) - 900 -

Airservices Annual Report 2013-14 109

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(f) Forward exchange contracts

Airservices uses Forward Exchange Contracts (FECs) to hedge foreign currency exchange rate risk arising from committed transactions primarily relating to capital expenditure program undertakings. Airservices accounts for all of its FECs as Cash Flow Hedges. Airservices policy is to achieve 100% hedge effectiveness. All foreign currency exposures have a greater than 95% certainty of occurring as all exposures are committed.

The effectiveness test is on a FEC rate to market rate comparison. Prospective testing is on a critical terms basis with the retrospective test based on an effectiveness ratio of 80-125%. Gains or losses are recognised on the hedging instrument (i.e. the FEC) and hedged item (i.e. the committed foreign exchange exposure) with any ineffectiveness recognised in the statement of comprehensive income.

At balance date, the details of outstanding contracts are (Australian dollar equivalents):

Buy EUROs Sell Australian Dollars

Average Exchange Rate

2014 2013 2014 2013

$'000 $'000 EURO/$1 EURO/$1

Maturity 3 months or less 2,392 3,527 0.7670 0.7010

Greater than 3 months but less than 1 year 370 5,136 0.7624 0.7459

Greater than 1 year - 3,130 - 0.7665

Buy US Dollars Sell Australian Dollars

Average Exchange Rate

2014 2013 2014 2013

$'000 $'000 US/$1 US/$1

Maturity 3 months or less - 231 - 0.9289

(g) Capital management

Airservices is a price regulated government-owned statutory authority providing air navigation services. Pricing for Airservices core airways services is subject to the price notification provisions of the Competition & Consumer Act 2010 and any increase in prices must be notified to the Australian Competition and Consumer Commission (ACCC) for its review.

Airservices sets its prices with airlines and other customers using a five-year Long Term Pricing Agreement (LTPA). Endorsed by the ACCC the agreement allows pricing to recover all reasonably incurred costs (including a return on capital employed) relating to the delivery of services. The current Long Term Pricing Agreement was established in October 2011. It provides price certainty for customers through to June 2016 and a price path with annual changes on 1 July each year, incorporating nominal price increases of 3.3% for the five year period, translating to real price reductions of 11.4% over the next five years.

Airservices' target was to achieve a return on equity after tax for 2014 of 6.1%; during the year ended 30 June 2014 the return was 3.9% (30 June 2013: 10.5%).

Airservices' practice has been to provide for and pay a dividend to Government in two instalments.

There were no changes to Airservices approach to capital management during the year.

Airservices Annual Report 2013-14 110

05 Notes to Financial Statements for the year ended 30 June 2014

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54

Note 29 Monies held on behalf of third parties

Airservices has been contracted by the Solomon Islands Civil Aviation Authority and the Republic of Nauru to provide airspace management and accounts receivable services. The contracts require Airservices to retain cash received and to remit funds at a later date to the Solomon Islands and Nauru Governments as required under the respective agreements. At balance date, the money held on behalf of third parties totalled $0.499m (2013: $0.473m) for the Solomon Islands and $0.065m (2013: $0.045m) for Nauru.

Note 30 Economic dependency

Airservices is dependent on airline activity in the Australian aviation industry, of which the Qantas Group is the dominant operator. Of the airways revenue earned during the year, 30% (2013: 29%) related to the Qantas Group excluding the Jetstar Group and 11% (2013: 11%) related to the Jetstar Group.

Note 31 Cross-border financing arrangement

During 2003 and 2004, Airservices completed cross-border financing arrangements in relation to equipment associated with The Australian Advanced Air Traffic System (TAAATS) and radar systems. The arrangements were initially for periods out to 2026, but now only relate to periods out to 2022.

Airservices has provided certain guarantees and indemnities to various participants in the transaction. If certain events occur, Airservices could be liable to make substantial payments under the lease guarantees and indemnities. In December 2012, Airservices negotiated an early termination of two of its cross-border financing arrangements. These terminations significantly reduced the value of the guarantees and indemnities provided to participants involved in the transactions. The future underlying exposure against which these guarantees and indemnities have been provided are up to a maximum of US$293m (30 June 2013: US$376m).

Airservices actively monitors and manages its exposures under the transaction in order to mitigate any material risk factors affecting this transaction on an ongoing basis.

Expert external advisors consider that, unless exceptional circumstances arise, Airservices would not be required to make a significant payment under these guarantees and indemnities.

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55

Note 32 Notes to the statement of cash flows

2014 2013

$'000 $'000

Reconciliation of cash and cash equivalents For the purposes of the Cash Flow Statement, cash and cash equivalents comprise the following at 30 June: Cash advances and cash on call 80,488 57,243

Total cash and cash equivalents 80,488 57,243

Reconciliation of net profit after income tax to net cash flows from operations

Net profit after income tax 21,323 45,484

Adjustments for: Depreciation expense 94,193 84,796

Amortisation expense 24,154 29,732

Impairment recognised 11,207 4,106

Reversal of previous asset write-downs (4,378) 7,017

Net loss on sale/write-off of non-current assets 1,628 1,866

Fair value adjustments to derivatives (2,960) (1,616)

Prepayments & accruals relating to plant and equipment 4,581 (4,377)

AvSuper defined benefit contributions movement (after tax) 4,911 1,802

Change in assets (Increase)/decrease in gross receivables (2,033) (23,102)

(Increase)/decrease in inventories (23) (113)

(Increase)/decrease in prepayments (44) (1,365)

(Increase)/decrease in income tax receivable (2,523) 12,394

(Increase)/decrease in other assets 1,438 1,839

(Increase)/decrease in deferred tax (3,610) 5,037

Change in liabilities Increase/(decrease) in employee benefits 29,268 1,392

Increase/(decrease) in allowance for impairment (811) (276)

Increase/(decrease) in legal provisions 300 (1,600)

Increase/(decrease) in other liabilities 723 4,196

Increase/(decrease) in other provisions (1,918) (1,494)

Increase/(decrease) in creditors and accruals (4,860) 9,697

Increase/(decrease) in revenue to be returned to customers provision (2,753) 4,485 Net cash flow from operating activities 167,813 179,900

06APPENDICES

Airservices Annual Report 2013-14 113

06 Appendices

Appendix 1: Board memberships, meetings and committees

Members of the Board and their terms of appointment The Airservices Board Members for the period 1 July 2013 to 30 June 2014 were as follows.

Air Chief Marshal Angus Houston AC, AFC, (Ret’d)

Chair

Air Chief Marshal Angus Houston AC, AFC (Ret’d) retired as Chief of the Australian Defence Force after 41 years of service in the military in July 2011. Angus was appointed in July 2014 as the Prime Minister’s Special Envoy to lead Australia’s efforts to help recover, identify and repatriate Australians killed in the Malaysia Airlines MH17 crash. Angus also leads the Joint Agency Coordination Centre coordinating the Australian Government’s support for the search into missing Malaysia Airlines flight MH370.

Angus is also Chair of Airservices Australia, the Council for the Order of Australia, the Defence South Australia Advisory Board and the Canberra Symphony Orchestra. He is a Board Member of the Lowy Institute for International Policy, the Australian Cancer Research Foundation, the Anzac Centenary Public Fund Board and GreaterGood Canberra. In addition, he is patron of numerous charitable organisations.

Angus was the Chief of the Defence Force from 4 July 2005 until 4 July 2011. Prior to that he was Chief of Air Force for four years. Angus was Chair of the Anzac Centenary Advisory Board from July 2011 until March 2014. The Board provided strategic advice to the Government on the national program for the Anzac Centenary 2014 - 2018. In 2012, Angus led the Expert Panel on Asylum Seekers.

Angus is married to Liz and they have three sons and two grandchildren. In 2011, he was named the Australian Father of the Year and in 2012, the ACT Australian of the Year.

Tony Mathews

Chair Board Safety Committee

Tony Mathews was appointed to the Board on 4 June 2012 and is Chair of the Safety Committee. Mr Mathews was reappointed to the Airservices Board for a further three years until September 2017 and has been appointed as the Deputy Chair for the same period.

He has over 40 years experience in the aviation industry including extensive work in regional aviation as a chief pilot and general manager, and is a qualified airline transport and commercial pilot.

He is Chair of the Board of Advice, Mildura Private Hospital, a Director of the Mildura District Hospital Fund, RCP Finance Limited and Deputy Chair Lower Murray Water.

He has held managerial positions with Qantas Regional Airlines, served as Chair and a Board member of the Mildura Cooperative Fruit Company, Chair of the Murray Campaign Committee and Mildura Murray Outback Tourism, President and Board member of the Regional Aviation Association of Australia, a Board member of the Chances for Children Committee and a Board member of the First Mildura Irrigation Trust.

Airservices Annual Report 2013-14 114

06 Appendices

Paul Lucas B.Econ, LLB, MBA, M.U.R.P, CMILT, FAICD

Chair Board Environment Committee

The Hon. Paul Lucas was appointed to the Board on 4 June 2012 and is Chair of the Environment Committee. His current term expires on 3 June 2015.

Mr Lucas has 10 years experience in private legal practice, followed by more than 15 years in the Queensland Government including ministerial responsibilities in infrastructure, planning and state aviation matters.

Mr Lucas has served in numerous ministerial capacities including Deputy Premier, Minister for Infrastructure and Planning, Minister for Transport and Main Roads, Attorney-General and Minister for Local Government, Minister for Health, and Minister for Innovation and Information Economy.

Mr Lucas has Bachelor’s Degrees in Economics and Law and Master’s Degrees in Business Administration, and in Urban and Regional Planning. He is a Chartered Member of the Institute of Logistics and Transport, and a Fellow of the Australian Institute of Company Directors.

Annette Kimmitt BBus (Acc), FCA, AICD

Chair Board Audit and Risk Committee

Annette Kimmitt was appointed to the Board on 6 June 2012 and is the Chair of the Audit and Risk Committee. Her current term expires on 5 June 2015.

Ms Kimmitt is Ernst & Young Asia-Pacific Accounts Leader, Global Middle Market Leader and a member of the firm’s Asia-Pacific Operating Executive. She leads the firm’s Asia- Pacific markets functions, including Business Development/Pursuits, Knowledge and Partner Learning, Strategic Growth Markets and Markets Operations.

In addition to her role at Ernst & Young, Ms Kimmitt is a Director of the Melbourne Business School and Mt Eliza Graduate School of Business and Government.

In 2013, Ms Kimmitt co-founded, SCALe Investors, Australia’s first seed capital organisation focused on equipping women with the education and deal flow opportunities to have the confidence to invest in high-growth, female-led businesses at an early stage of their development.

Ms Kimmitt’s executive career has included a range of senior roles with Ernst & Young and with the International Accounting Standards Board. She was previously Ernst & Young’s Melbourne Office Managing Partner and leader of its Victorian Government Practice. Ms Kimmitt was formerly a director of the United Nations Principles for Social Investment and is a former Victorian Chair of the Institute of Chartered Accou ntants.

Airservices Annual Report 2013-14 115

06 Appendices

Samantha Betzien was appointed to the Board on 4 June 2012. She is Chair of the Remuneration and Human Resources Committee and a member of the Safety Committee. Her current term expires on 3 June 2015.

Ms Betzien is a partner in the Human Resources and Industrial Relations team at the Brisbane office of Minter Ellison. She also performs the management roll of staff partner at Minter Ellison, Queensland. She has 16 years experience providing legal advice on all aspects of employment and industrial relations and work health and safety including to major employers in the transport, aviation, energy and resources and construction sectors. Her clients include a number of Queensland Government owned corporations.

She is a member of the Australian Institute of Company Directors and the Industrial Relations Society of Queensland and is listed in the AFR’s Best Lawyers 2014 and Doyle’s Guide in the areas of employment and occupational health and safety.

Fiona Balfour was appointed to the Board on 3 June 2013, and is a member of the Audit and Risk Committee and the Remuneration and Human Resources Committee. Her current term expires on 2 June 2016.

Ms Balfour has over 35 years experience across aviation, information and telecommunication services, financial services, distribution and logistics, and governance. She has been an advisor to Medibank Private Limited and was previously CIO at Telstra Corporation Limited. Ms Balfour also spent 14 years with Qantas Airways Limited during which time she held various positions including Chief Information Officer and Executive General Manager, Qantas Business Services.

Ms Balfour has been a non-executive director since 2002 and currently sits on the Boards of Metcash Limited, Salmat Limited and TAL (Dai-ich i Life) Australia Pty Limited. She is Councillor and Treasurer of Knox Grammar School. Ms Balfour is a former director of SITA SC (Geneva), the National Breast Cancer Foundation and former Chair of the St James Kings Street Conservation Appeal.

Fiona Balfour BA (Hons) Grad.DipIM MBA FAICD Fellow of The University, Monash University.

Samantha Betzien BA, LLB (Hons) MAICD

Chair Board Remuneration and Human Resources Committee

Airservices Annual Report 2013-14 116

06 Appendices

Margaret Staib is the CEO of Airservices and is leading Airservices through significant investment and transformation to meet the challenges and opportunities of a rapidly-growing aviation sector.

Prior to joining Airservices in October 2012 Ms Staib had a distinguished career over three decades in the Royal Australian Air Force. Her RAAF career culminated in her appointment as Commander Joint Logistics in January 2010.

Recognised for leadership, Ms Staib was an Australian Capital Territory finalist for the Community and Government sector in the Telstra Business Women’s Awards and was selected as one of the AFR ‘100 Women of Influence’ in 2012.

Her contribution and leadership in the field of Australian Defence Force aviation inventory management was recognised when Ms Staib was awarded the Conspicuous Service Cross in January 2010.

She was recognised with the United States Meritorious Service Medal for her service during a posting in 2000 with the US Air Force at the Pentagon. In January 2009, Ms Staib was appointed as a member of the Military Division of the Order of Australia.

Ms Staib is a director of the Commonwealth Superannuation Corporation and a member of the Defence Force Reserves, holding the rank of Air Vice-Marshal. She has a Bachelor of Business Studies, Master of Business Logistics, and Master of Arts in Strategic Studies. She is a Certified Practicing Logistician and a Fellow of the Chartered Institute of Logistics and Transport.

Dr Warren Mundy was appointed to the Board on 3 June 2008 and as Deputy Chair on 3 June 2009. He resigned from the Board on 31 October 2013. He was the inaugural Chair of the Board Environment Committee.

Dr Mundy is a Commissioner on the Productivity Commission and has worked for over two decades in the infrastructure sector in roles covering management, planning and development, economic and environmental regulation and commercial negotiation of access agreements. For a number of years he was the principal regulatory and economic adviser to the Australian Council for Infrastructure Development. He has held senior executive roles in the airports industry in both Australia and Europe and has worked for McKinsey and Company, the Reserve Bank of Australia and the Western Australian Treasury Corporation.

Dr Mundy is a Fellow of the Royal Aeronautical Society and the Australian Institute of Company Directors. He is also an Adjunct Professor in the School of Aviation at the University of New South Wales and a member of the University’s Aviation Industry Advisory Committee. He became a director of the Sydney Desalination Plant in February 2014.

Dr Mundy was a member of the Joint New South Wales—Commonwealth Government Steering Group overseeing the development of the Aviation Strategic Plan for Sydney and has been Director of VicForests, the Airport Operators Association of the United Kingdom, and James Watt College of Higher and Further Education in Scotland.

Margaret Staib, AM, CSC BBus, MBusLog, MA(Strategic Studies)

Chief Executive Officer Airservices Australia

Former Directors

Warren Mundy BSc (Hons, UNSW) DipEc (Syd) PhD (Cantab) GradCertAppFin (Macq.) MEnvLaw (ANU) FRAeS FAICD

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David Burden BSc (Mathematics) Bristol University, FRAeS

David Burden was appointed to the Board on 1 June 2009 and his term expired on 31 May 2014.

Mr Burden received a First in Special Honours Mathematics from the University of Bristol, and worked in operations research consulting in the United Kingdom, France and Canada for a subsidiary of Paribas.

After 10 years in technology venture capital, he served as a senior advisor to the Canadian Prime Minister’s National Advisory Board on Science and Technology. Subsequently, he was the Chief Information Officer of Air Canada in Montreal.

In 1994 Mr Burden joined Qantas Airways Limited as Group Executive General Manager of Technology and Services, with responsibility for information technology, purchasing, property and fuel services.

In 2002 he was appointed to the Board of Directors of Royal Mail Group Plc, the UK postal service, as an Executive Director with responsibility for information technology, postal automation, engineering services and procurement. He retired from Royal Mail in 2007.

Benefits and interests in contracts with Airservices Australia

Details of members benefits and interests in contracts with Airservices are set out in notes 25 and 27 of the financial statements.

Members and officers indemnities and insurance

In 2013-14, Airservices held a members and officers liability insurance policy. It is a condition of this policy that the nature of the limits of liability, the liability indemnified and the premium payable is not disclosed to third parties except to the extent that:

ƒ Airservices is required to do so by law

ƒ the insurer consents in writing to such di sclosure.

Details on meetings of the Board, Board committees and members attendance at committee meetings are provided in table 4.

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Meetings of the Board, Board committees and members attendance

TABLE 4 Meetings of the Board, Board committees and members attendance 2013-14

Board Safety Audit Remuneration Environment

Meetings convened 11 7 3 6 5

Angus Houston a 11 6 3 5 5

Annette Kimmitt e 8 3* 3 1* 1*

Sam Betzien f 10 4 1* 5 0*

Tony Mathews g 7 7 0* 0* 0*

Paul Lucas h 10 3* 0* 1* 5

Fiona Balfour 9 1* 2 4 0*

Margaret Staib i 11 6 3 6 5

David Burden d 9 5 1* 1* 4

Warren Mundy bc 3 2 1 2 1

a - Chair of the Board

b - Deputy Chair of the Board until 31 Oct 2013

c - Resigned 31 Oct 2013

d - Term expired 31 May 2014

e - Chair of the Audit and Risk Committee

f - Chair of the Remuneration and Human Resources Committee

g - Chair of the Safety Committee

h - Chair of the Environment Committee

i - CEO and ex officio member of all Board Committees (excluding the Board Audit and Risk Committee)

* - not a committee member during relevant period.

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Appendix 2: Statement of Expectations

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Appendix 3: Statement of Intent

The Airservices Board’s Statement of Intent responds to the Statement of Expectations, July 2013 to June 2015, received from the Minister and states Airservices formal commitment to meeting the expectations of the Minister.

Statement of Expectations Statement of Intent 2013-14 initiatives

1. Stakeholder Engagement

Undertake effective consultation with the community, industry and Government on the development and implementation of significant changes by Airservices to air traffic and aviation rescue and fire fighting services.

Airservices will consult with key stakeholders in Government and industry and participate in relevant community, industry and Government forums to support the integrity of operations and whole-of-industry safety outcomes.

1.3 Improve awareness and confidence in Airservices safety performance.

2.2 Update the Services Charter.

3.5 Implement a new aircraft noise management strategy.

2. Government Aviation Policy

Perform its functions in a manner that supports Government policy, specifically the following three aviation goals:

ƒ safety remains the highest priority

ƒ a responsible approach to managing the environmental impacts of aviation

ƒ a coordinated approach to airport planning and investment.

Airservices will ensure that safety system enhancements and infrastructure replacement programs optimise safety benefits. Airservices will meet or exceed safety and performance benchmarks established in the Corporate Plan. In addition, Airservices will develop initiatives to improve the environmental performance of operations.

Airservices will focus on connecting the component parts of the Australian aviation industry to enable the best business outcomes for individual participants.

Airservices will create and deliver new value to the industry through innovation and the delivery of new services, products and technology particularly with respect to ground surveillance at airports and air traffic flow management.

1.1 Optimise localised airspace design to enhance operational safety and efficiency.

1.2 Improve safety at regional aerodromes through the delivery of new services (Surveillance Arrangement For Regional Airports - SAFRA).

1.4 Collaborate locally and internationally to support the integrity of our operations and whole-of-industry safety outcomes.

1.7 Enhance our safety management system (SMS) and safety culture.

2.1 Improve the alignment of key systems, processes and accountabilities through an integrated management system (IMS).

3.2 Deliver new regional ARFF services.

3.6 Improve environmental measurement, modelling and reporting.

3.7 Improve the environmental management system and reduce energy, water and waste footprint.

3.14 Enhance the efficiency and effectiveness of property management.

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Statement of Expectations Statement of Intent 2013-14 initiatives

3. Implementing relevant Government Air Traffic Initiatives

Continue to implement Government air traffic management and other airspace policy initiatives (in conjunction with the Department, the Australian Transport safety Bureau (ATSB), the Civil Aviation Safety Authority (CASA) and the Department of Defence).

Airservices will continue to work cooperatively with the Department and Government agencies through the Aviation Policy Group and other forums to implement relevant air traffic management and other airspace policy initiatives.

3.1 Implement a harmonised core ATM system in collaboration with the Department of Defence.

3.5 Implement a new aircraft noise management strategy.

4. Provision of Information, Assistance or Advice

Engage constructively in processes where it can provide information, assistance or advice for policy formulation, implementation and regulation undertaken by Government agencies, both within and outside my portfolio

In line with the Government’s policy, Airservices will coordinate and foster aviation industry relationships.

Airservices will continue to participate in cross-agency forums and provide technical advice to assist with policy formulation in areas such as safety, airspace policy, airport planning and aviation environmental impacts.

1.3 Improve awareness and confidence in Airservices safety performance.

1.5 Enhance operational analysis through development of predictive tools and reporting frameworks.

2.2 Update the Services Charter.

5. Environmental Responsibilities

Assist in implementing the Government’s environmental initiatives in relation to climate change and aircraft noise management, including:

ƒ supporting the ongoing role of the independent Aircraft Noise Ombudsman (ANO) and implementation of agreed recommendations made by the ANO

ƒ the appropriate resourcing of the Noise Complaints Unit to continue to improve the flow and quality of information to noise affected communities

ƒ continuing the annual update of a detailed environment work plan which outlines Airservices initiatives in managing, monitoring and reporting on the environmental effects of aircraft

ƒ the ongoing commitment to the Sydney Airport Long Term Operating Plan

ƒ the wider use of Required Navigation Performance (RNP) approaches, as appropriate, at Australian airports to enhance safety and efficiency, reduce emissions, and minimise noise impacts, following consultation with community and industry stakeholders.

Airservices will continue to develop air traffic management and aviation rescue and fire fighting initiatives to improve the environmental performance of operations.

Airservices will implement an Environment Strategy with an action plan with particular emphasis on the management of aircraft noise and its impact on affected communities. Specifically, Airservices will:

ƒ consult with the community on aircraft noise issues ƒ enhance management of the Noise Complaints Information Service to

enable improved complaints handling ƒ maintain an independent Aircraft Noise Ombudsman’s Office ƒ implement the recommendations of the

Aircraft Noise Ombudsman.

Airservices will focus on implementing a range of new systems and tools across the core air traffic management suite that support optimal operations, including performance based navigation, to improve capacity, enhance safety, improve cost effectiveness, realise environmental benefits and meet customer needs.

1.5 Enhance operational analysis through development of predictive tools and reporting frameworks.

3.3 Develop and implement demand and capacity management capabilities.

3.4 Improve capacity management through Airport Capacity Enhancement (ACE).

3.5 Implement a new aircraft noise management strategy.

3.6 Improve environmental measurement, modelling and reporting.

3.7 Improve the environmental management system and reduce energy, water and waste footprint.

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Statement of Expectations Statement of Intent 2013-14 initiatives

6. Airport Planning

Contribute to a coordinated approach to airport planning including appropriate participation in, and providing information to, planning coordination forums, community aviation consultation groups, and the National Aviation Safeguarding Advisory Group.

Airservices will continue participation in the National Aviation Safeguarding Advisory Group and other relevant forums and maintain a high level of stakeholder and community satisfaction.

3.5 Implement a new aircraft noise management strategy.

3.11 Improve alignment in airport planning outcomes.

7. Air Traffic Management Policy

Support the Government’s Air Traffic Management (ATM) Policy through the development and implementation of an ATM Services and Facilities Plan.

Airservices will develop and implement an ATM Services and National Facilities Plan that delivers long-term tangible improvements in safety, capacity management, flexibility and resource efficiency.

Airservices will review service requirements in key traffic growth areas such as Western Australia.

3.3 Develop and implement demand and capacity management capabilities.

3.4 Improve capacity management through Airport Capacity Enhancement (ACE).

3.11 Improve alignment in airport planning outcomes.

8. Provision of Aviation Rescue and Fire Fighting Services (ARFFS)

Provide a clearly defined Aviation Rescue and Fire Fighting Services (ARFFS) for civil operations at civil and joint-user airports that meet the establishment criteria in the Civil Aviation Safety Regulations 1998, and continue to develop and implement Memorandum of Agreements with State and Territory fire authorities.

Airservices Aviation Rescue and Fire Fighting (ARFF) service will continue to operate in line with relevant Civil Aviation Safety Regulations and in cooperation with State and Territory fire authorities.

Airservices will continue to pursue outcomes based operating regulations for ARFF and establish Memoranda of Agreement as to roles and responsibilities established with State and Territory fire authorities for all airport locations.

1.2 Improve safety at regional aerodromes through the delivery of new services (Surveillance Arrangements For Regional Airports - SAFRA)

3.2 Deliver new regional ARFF services.

9. Joint Civil and Military Aviation Harmonisation

Progress the implementation of agreed joint civil and military aviation harmonisation initiatives with the Department of Defence including Airservices acting as the lead agency on the future joint air traffic control system project.

Airservices act as lead agency with the Australian Department of Defence to harmonise civil and military air traffic management operations to improve operational efficiency and cost effectively manage increasingly complex civil-military airspace integration requirements.

2.11 Collaborate with the Department of Defence to identify and progress opportunities for harmonisation under Australian Civil-Military ATM Committee (AC-MAC).

3.1 Implement a harmonised core ATM system in collaboration with the Department of Defence.

10. Future Investment in Technology and Infrastructure

Continue investment in future infrastructure upgrades and replacement programs as demonstrated in a detailed capital expenditure program, including enhanced air traffic and surveillance services at regional airports.

Airservices will work collaboratively across the industry to anticipate, understand and plan for future needs.

Airservices will develop a long-term plan for the replacement of the core air traffic management system to deliver operational flexibility and robust business continuity while meeting capacity growth and increasing flexibility.

3.12 Improve project delivery.

3.14 Enhance the efficiency and effectiveness of property management.

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Statement of Expectations Statement of Intent 2013-14 initiatives

11. Sustainable Workforce Planning

Commit to a strong focus on human resource issues, including publication of an annual update of the Airservices Australia Workforce Plan, and the development and implementation of proactive recruitment, training and retention policies.

Airservices will attract and retain talent, deliver a flexible, empowered and engaged workforce that is supported by strong leadership.

Airservices will develop leaders who are focussed on guiding and motivating the organisation’s workforce to deliver future outcomes and will create opportunities for individuals to develop and excel and to ensure the workforce as a whole is ready to take on challenges of the future.

Airservices will provide an annual Workforce Plan update, with specific emphasis on increasing workforce diversity, and developing a values based culture that does not tolerate bullying and harassment.

1.6 Improve Workplace Health and Safety culture and outcomes.

2.3 Reform the forward training program.

2.4 Review the end-to-end training model (ATC and ARFF).

2.5 Improve operational training program for ARFF, ATC and Projects and Engineering (P&E).

2.6 Enhance and execute the Airservices Diversity Strategy.

2.7 Align employee relations strategy to business strategy.

2.8 Develop and implement an ethics and fraud strategy

2.9 Refine and improve the workforce model.

2.10 Enhance and implement management and leadership capability.

3.13 Align future technology acquisition and deployment with service plans.

12. Asia-Pacific Regional Aviation Safety Continue to support the Government’s aviation safety initiatives in the Asia-Pacific region.

Airservices will collaborate internationally with neighbouring partners and support the Australian Government’s aviation safety initiatives in the Asia Pacific region to improve the safety outcomes for the industry across the region.

In particular, Airservices will assist air navigation service providers in Indonesia and Papua New Guinea to build air traffic service capability to facilitate increased safety, harmonisation and integration of air traffic management with Australia’s adjoining airspace.

1.4 Collaborate locally and internationally to support the integrity of our operations and whole-of-industry safety outcomes.

2.12 Collaborate with the Department of Defence to identify and progress opportunities for harmonisation under Australian Civil-Military ATM Committee (AC-M AC).

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Statement of Expectations Statement of Intent 2013-14 initiatives

13. Public Sector Professionalism and Accountability

Adhere to values and a code of conduct that maintains high standards of professionalism, customer service, probity, reporting, accountability and transparency, consistent with the Government’s aim of excellence in the public sector.

Airservices will continue to maintain a high level of compliance with relevant legislative requirements, policy and guidelines and will provide regular reporting to industry with performance KPIs embedded in the Service Charter. This will be supported by a comprehensive internal audit program.

Airservices will maintain integrated management systems that support and promote excellence.

2.1 Improve the alignment of key systems, processes and accountabilities through a integrated management system (IMS).

2.3 Reform the forward training program.

2.6 Enhance and execute the Airservices Diversity Strategy.

2.7 Align employee relations strategy to business strategy.

2.8 Develop and implement an ethics and fraud strategy.

2.9 Refine and improve the workforce model.

2.10 Enhance and implement management and leadership capability.

3.8 Optimise acquisition of goods and services through supplier category management (SCM).

3.9 Enhance supplier performance through implementation of a supplier relationship management (SRM) framework.

3.10 Implement the information communication technology (ICT) business reform program.

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Appendix 4: Statutory and administrative information

Work Health and Safety—executive commitment

This year a new phase of strategic activity commenced under the ‘Safe and Well’ Work Health and Safety Strategy 2013-2018. The strategy aims to embed health and safety in all that we do. It supports the corporate objective to maximise safety performance and addresses one of our key priorities, ‘people first’.

‘Safe and Well’ strategy objectives are to:

ƒ get it right—through safe design and effective risk management

ƒ be fit and well—through health risk management and worker well-being

ƒ first care—through early intervention and injury management.

Collaborative action plans are on track and designed to enable management and worker participation to manage Work Health and Safety (WHS) risk and address identified issues for how work is performed. Each business group is supported by specialist services to establish and implement WHS management plans aligned to strategic objectives and their individual risk profile.

Consultation and health and safety committees

The Airservices peak consultative forum, the National Health and Safety Committee, met four times throughout the year. Two meetings were held in Perth and Sydney and these were open to all local staff and health and safety representatives. Four formal local health and safety committees also exist and meetings are held on location every three months. There are also a number of less formal forums throughout various business groups that

discuss local issues and involve both worker and management representation.

Education

The following education initiatives were undertaken during the year to ensure WHS principles remain embedded in our day-to-day activities:

ƒ our online WHS induction package was completed by 97.1 per cent of employees

ƒ training for 575 employees was undertaken on new hazard and occurrence reporting application Corporate Integrated Reporting and Risk Information System (CIRRIS)

ƒ an online asbestos awareness package was completed by 97.7 per cent of employees

ƒ safety training programs were re-launched covering topics such as managing WHS risks for contractors and projects, and enhancing the skills for site supervisors. Wellness at work information sessions were also conducted for managers

ƒ online courses were refreshed on topics including body stress prevention, drug and alcohol management, chemical safety, fatigue management and safe driving.

Safety Assist Visits

Safety Assist Visits help managers, team leaders and supervisors implement WHS requirements and monitor conformance.

There were 58 visits between January 2013 and May 2014, and from these 580 actions were identified across the business. Local managers rectified 72 per cent of these within the agreed timeframes. 10 per cent of actions were still in progress and 15 per cent of the remaining actions were systems issues that were elevated to the relevant business group’s Executive General

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Manager for action. Three per cent have been elevated as formal actions for management in CIRRIS.

Legislative change to occupational health and safety

A number of duties under the Work Health and Safety Regulations 2011 came into effect on 1 January 2012 with applicable transitional provisions. The impact of these changes on our organisation has been reviewed and the necessary changes implemented and assurance systems refreshed to monitor legal compliance.

Work health and safety incidents

Our required reporting to Comcare complied with the Work Health and Safety Act 2011 (Cth). Table 5 compares performance over the past five financial years.

Workers compensation premium

The Comcare premium for the financial year to date was 0.99 per cent of full time equivalent salary (in 2012-13 it was 0.89 per cent).

Comcare investigations and notices

Comcare conducted one liaison visit and one formal investigation, and issued one section 155 notice during the year. The investigation was in response to an incident at the Canberra facilities management services depot in which a worker fell and broke their wrist.

The section 155 notice required Airservices to provide further information about the consultative and risk management process used to address the concerns of workers at one of our Sydney facilities.

TABLE 5 Work Health and Safety incidents 2009-10 to 2013-14

Incident category 2009-10 2010-11 2011-12 2012-13 2013-14

Workplace fatality 1 0 31 0 0

Serious injury or illness2 16 6 4 6 6

Incapacity with more than one week of lost time3 10 21 18 NR NR

Dangerous incidents2 35 34 22 16 11

1 Relates to deaths of members of the public due to vehicle accident.

2 Notification definition change occurred in WHS laws from 1 January 2012.

3 NR = not reportable. This category is no longer required for Comcare reporting.

TABLE 6 Corporate Plan performance measures for 2013-14

Performance measure

Purpose and definition

Performance standard

Rate at 30 June 2013 Rate at 30 June 2014

WHS incident rate Occurrences per 100 staff per month

< 0.2 0.71 0.53

Serious personal injury rate Number of medically treated injuries per one

million hours worked

0 0.77 0.75

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Provisional improvement notices

Health and Safety representatives raised three provisional improvement notices. Two were raised in July 2013, one at our Melbourne Learning Academy aviation rescue fire fighting school and the other at Adelaide’s aviation rescue fire fighting station. The third was raised at the Perth air traffic control tower in January 2014. All were resolved within the agreed timeframe.

Aviation security

Airservices maintains a transport security program, and also adheres to an Aviation Security Identification Card (ASIC) programme. These describe the security measures and procedures that we use to minimise the risk of unlawful interference with aviation and major security threats against critical air traffic, navigation aids, telecommunications and surveillance and emergency response facilities. The program was updated during the year as required under the Aviation Transport Security Act 2004 and the Aviation Transport Security Regulations 2005.

Protective security

Our personnel, physical, and security governance arrangements that have an effect on all of our organisation’s operations and facilities. For facilities and functions not subject to the requirements of the Act and Regulations, Airservices applies standards consistent with the Australian Government’s Protective Security Policy Framework using a risk-based, outcomes approach.

We participate in various Government and industry security forums, including the Trusted Information Sharing Network for operators of critical infrastructure, as well as local airport security committees and associated airport security consultative working groups.

Fraud control

Fraud control arrangements comprise of prevention; detection; response; and monitoring, evaluation and reporting activities and are articulated in the Fraud Control Policy and supporting Ethics and Fraud Control Plan and Ethics and Fraud Framework. Fraud risks are subject to quarterly review with a comprehensive review occurring bi-annually or earlier in response to a substantial change in structure, operations or functions which did not occur during the year. All reasonable measures were undertaken to minimise the incidence of fraud and to investigate and recover the proceeds of fraud against Airservices.

Resilience

We collaborated with the Attorney-General’s Department, the Office of Transport Security, various Commonwealth and State Law enforcement agencies, and operators of critical infrastructure on activities to support the Critical Infrastructure Resilience Strategy.

This strategy describes the Australian Government’s approach to enhancing the resilience of our critical infrastructure to all hazards that may impact operations. It encourages and enables critical infrastructure organisations, through a range of initiatives and activities, to better manage both foreseeable and unforeseen or unexpected risks to their critical infrastructure assets, supply chains and networks.

We participated in several state and federal based resilience exercises and information sharing forums to improve the ability of critical infrastructure operators to plan and respond to hazards that may impact our operations. We also conduct annual internal resilience exercises for our Executive, senior managers and subject matter experts, are all involved in the response to abnormal operations.

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Privacy

The Privacy Act 1988 requires our organisation to maintain a privacy policy in accordance with Australian Privacy Principle 1.3, including the following details:

ƒ the kinds of personal information that the organisation collects and holds

ƒ how the organisation collects and holds personal information

ƒ the purposes for which the organisation collects, holds, uses and discloses personal information

ƒ how an individual may access their personal information that is held by Airservices and seek the correction of such information

ƒ how an individual may complain about a breach of the Australian Privacy Principles, or a registered Australian Privacy Principles code (if any) that binds Airservices, and how Airservices will deal with such a complaint

ƒ whether Airservices is likely to disclose personal information to overseas recipients

ƒ if Airservices is likely to disclose personal information to overseas recipients, the countries in which such recipients are likely to be located if it’s practical to specify this in the policy.

Our Privacy Policy is available at www.airservicesaustralia.com/ terms-copyright-privacy

During 2013-14, the Privacy Commissioner did not undertake any investigations under section 40 of the Privacy Act in relation to Airservices.

Freedom of information

Australian Government agencies subject to the Freedom of Information Act 1982 are required to publish information as part of the Information Publication Scheme. This requirement is in Part II of the Act and has replaced the former

requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the Information Publication Scheme requirements.

This information is available at www.airservicesaustralia.com/about/ information-publication-scheme

Powers and functions Airservices legislative framework, powers and functions are set out in the corporate overview section of this report.

Procedures and initial point of contact Under the Freedom of Information Act, the CEO or authorised officers may grant or refuse access to any document held by Airservices. Within Airservices, the Office of Legal Counsel makes initial decisions about access and fees. A request under the Freedom of Information Act must be in writing and state an address to which notices can be sent. Applicants may have to pay administrative charges to process a request. Rates are prescribed by the Act and Regulations.

The address for lodging Freedom of Information requests is:

Freedom of Information and Inquiries Coordinator

Office of Legal Counsel Airservices Australia GPO Box 367 Canberra ACT 2601 Telephone: 02 6268 5108 Fax: 02 6268 5148 Email: foi@airservicesaustralia.com

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Freedom of Information activity in 2013-14

Table 7 shows Airservices Freedom Of Information activity for 2013-14.

TABLE 7 Freedom of information activity for 2013-14

Activity in 2013-14 Numbers

Requests

New requests received 32

Total requests handled 36

Total requests completed at 30 June 2014

33

Outstanding at 30 June 2014 3

Action on requests

Access in full 17

Access in part 11

Access refused 4

Access transferred in full 0

Request withdrawn 1

Response times (excluding withdrawn)

0-30 days 29

31-60 days 3

61-90 days 0

90+ days 0

Internal review

Requests received 3

Decision affirmed 2

Decision amended 1

Commonwealth Ombudsman activity

During 2013-14, Airservices received no formal requests for information from the Office of the Commonwealth Ombudsman.

Aircraft Noise Ombudsman activity

During 2013-14, Airservices received 14 formal requests for information from the Aircraft Noise Ombudsman and closed 26 requests including a number of longstanding requests.

Consultative arrangements

We welcome comment from other organisations and the public on our policies and practices.

We maintain several methods for consultation, including airport community aviation consultation groups and other forums, our website, the NCIS, telephone enquiry services, industry and pilot briefings and locally advertised public meetings.

Airservices representatives attend community aviation consultation groups to provide information on our activities. These meetings are conducted at federally leased airports and similar community forums at some non-federal airports.

During the year our representatives attended 76 Community Aviation Consultation Groups along with community noise forums and airport technical noise forums.

The fourth annual Industry Noise Forum was held in Canberra in February 2014. This event is jointly arranged by Airservices and the Australian Airports Association and brings together industry parties to help improve noise outcomes for communities.

Airservices is also a member of various Australian and international aviation and peak industry bodies. A detailed list of stakeholders and

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forums we participated in during 2013-14 is at Appendix 8.

Categories of documents held by Airservices

Documents in the categories listed below are held by our organisation as paper records or on optical, audio or digital media.

Legal and ministerial: legislation affecting the organisation; taxation working documents; treasury records; insurance files; ministerial briefing papers and correspondence; policy advice, instructions and working papers; legal records, documents, instruments, precedents and advice; freedom of information activity records.

Financial: planning and pricing records; airways charges collection data; financial statements; working papers, reporting documentation and records.

Commercial: corporate property files; policy documents and records; service charter documentation; general correspondence; media reports, responses and releases; tenders, bids and submissions; original contract documents; contracts, agreements and memorandums of association; contract precedent information.

Management and governance: board charter; board submissions, minutes and records; management meeting submissions; corporate and strategic plans; business management documents; business plans; cases and reports; service agreements.

Internal procedures: financial and resource management records; internal operating procedures; policy and procedures manuals and instructions; procurement guidelines; budget reports; general ledger records; project financial data; approvals, briefs, plans, designs and commissioning reports; project management policies, manuals, processes and procedures;

project records including schedules, contracts and financial records; project documentation; working party and committee reports; statistical information; information technology policy, procedures, specifications, instructions, manuals, standards, reports, maintenance and asset records; back-up tapes; quality management records.

Employees: workplace agreements; procedural manuals; employee and personnel management records; service and employment agreements; workplace health and safety records; equity and diversity records; internal staff publications; training and assessment records.

Technical: the Integrated Aeronautical Information Package containing the Aeronautical Information Publication; amendments; supplements; Notices to Airmen and aeronautical information circulars; communication systems handbooks; airways engineering instructions; drawings, reports, configuration documents and policy documents; operational policy and procedures manuals; communications, surveillance, navigation, testing and maintenance systems and engineering documents; specifications, instructions, manuals, standards, procedures, reports, maintenance records, plans and asset records; documentation of radar tapes and analyses; data communications operations manuals, maps, charts and research, and investigation records; statistics of airport operations; curriculum, syllabus, courseware and assessment records.

Environment: standards and procedures; records of assessment under Air Navigation (Aircraft Noise) Regulations; Australian noise exposure forecasts; exposure concepts, indices and related documents; noise and flight path monitoring system reports; reports on environmental assessments; records of telephone enquiries and aircraft noise complaints.

Airspace: airspace change proposals and associated data; change assessment guidelines;

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procedures, standards and manuals; records in support of decisions; audit, monitoring and review procedures; plans and findings; consultation material; website subscription and stakeholder records.

Air traffic control: separation policy, guidelines, standards, instructions, agreements and manuals; training records, standards, curriculum, syllabus, courseware and assessment records; procedure development records; air traffic control and air traffic service daily logs and journals; audio tapes and personnel operational records; navigational maps and charts; aircraft movement data, operational documents and aeronautical charts for pilot navigation and flight planning; pilot education material; aeronautical information publications and operational charts and plates, including en route information and world aeronautical charts.

Safety: airport emergency planning documentation; safety standards procedures and documents; audit reports and records, including on safety cases; aviation accident, incident and investigation records; national operation standards; safety and surveillance system records; policies and manuals.

Aviation rescue fire fighting: operational, engineering, quality assurance and safety management procedures and instructions; documents and procedures on recruitment, occupational health and safety, environment, hazardous materials and fire safety; aviation fire fighting manual; curriculum, syllabus, courseware and assessment records; aviation rescue fire fighting systems training and instruction manuals; incident and investigation records.

Superannuation: our employer superannuation arrangements comply with the requirements of the Superannuation Benefits (Supervisory Mechanisms) Act 1990 as prescribed by the Minister for Finance in Determination No.1 of 1994 made under that Act.

Employees are generally defined benefit or defined contribution members of the AvSuper fund. AvSuper’s trustee, AvSuper Pty Ltd, holds a public offer Registrable Superannuation Entity (RSE) licence (L0000147). The AvSuper defined benefit scheme was closed to new members in 2002.

We are a Commonwealth Superannuation Scheme (CSS) approved authority under the Superannuation Approved Authority Declaration (1995). Approximately 169 employees are defined benefit members of the CSS, which is administered by the Commonwealth Superannuation Corporation (RSE licence L0001397).

The CSS was closed to new members on 1 July 1990. Except for members of the CSS and some non-collective agreement employment instruments, employees are able to select an eligible choice fund other than AvSuper to receive employer contributions.

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Appendix 5: Staff equity and diversity progress report

Background

As a Commonwealth authority employer, Airservices is bound by the:

ƒ Equal Employment Opportunity (Commonwealth Authorities) Act 1987

ƒ Human Rights Commission Act 1986

ƒ Racial Discrimination Act 1975

ƒ Sex Discrimination Act 1984

ƒ Disability Discrimination Act 1992

ƒ Age Discrimination Act 2004.

This report to the Minister for Infrastructure and Regional Development is made under Section 9(2) of the Equal Employment Opportunity (Commonwealth Authorities) Act 1987 (EEO Act 1987). The Act requires Airservices to report on the employment of women and people in designated groups—people with disability, Indigenous Australians and people from culturally and linguistically diverse backgrounds (CALD).

Reporting obligations

The EEO Act 1987 requires Airservices to undertake the following actions as part of its equity and diversity program.

Informing employees - s. 6(a) Employees are informed about Airservices equity and diversity initiatives through staff induction, the intranet (AvNet), executive briefings, Airservices staff magazine Azimuth and individual business group newsletters. Each year, diversity progress is detailed in our annual report and published on AvNet. Policies, procedures and information on fairness and diversity are accessible to employees on AvNet and updated information on diversity initiatives and amendments to policies and procedures is published through a range of internal communications.

Conferring responsibility - s. 6(b) Overall accountability for the National Equity and Diversity Program has been conferred to the CEO and Executive Committee. The People and Culture business group is responsible for oversight and continuous review of the programme. Individual business groups are responsible for implementing programme strategies within their areas.

All employees have a responsibility to ensure their behaviour is compliant with the code of conduct which sets the standard for treating staff with fairness, equity and justice at all times.

Consultation with trade unions - s. 6(c) Airservices consults with each trade union that represents its employees. These are:

ƒ Professionals Australia

ƒ the Communications, Electrical and Plumbing Union

ƒ Civil Air

ƒ the Community and Public Sector Union

ƒ United Firefighters Union.

Airservices meets with the National Consultative Council twice a year to discuss relevant organisational and employee issues. The council is comprised of representatives from each trade union and members of the Airservices Executive Committee.

Consultations with employees - s. 6(d) In 2013-14, Airservices continued with CEO and Executive visits and video conferences at metropolitan and regional sites to discuss current initiatives and address any areas of employee concern. The visits provide employees, particularly those in regional locations, with the opportunity to communicate directly with the Executive Committee.

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Collection of statistics - s. 6(e) The EEO Act 1987 requires Airservices to collect and record statistics and related information about its employees, including the number and types of jobs undertaken by employees of either gender, and employees in designated groups.

New employees at Airservices are invited to provide their equity and diversity information when they commence employment. All employees are encouraged to update and maintain their own equity and diversity data within our Human Resource Information System. The provision of this data is voluntary due to privacy considerations.

The last Airservices Employee Opinion Survey was conducted in March 2013 and a pulse survey focusing on employee engagement was conducted during March and April 2014. The information gathered through the employee opinion and pulse survey will be used to guide and develop staff engagement.

Consideration of policies, examination of practices - s. 6(f) Airservices promotes a workplace that is free from discrimination by providing practices and policies that improve equity and diversity.

Every year our people systems, policies and procedures are reviewed and revised to reflect changes in the organisation or in the external environment, including legislative changes. Our people systems governing documents were updated in January 2014, to reflect the changes in legislation relating to bullying and harassment. This includes our Code of Conduct, the Code of Conduct Management Instruction, Code of Conduct Investigation Procedure, the Performance Improvement Procedure and the Process Review Procedure.

We also monitor the impact of legal decisions around anti-discrimination legislation.

Setting objectives and selecting indicators - s. 6(g) Airservices is committed to building the capability of its workforce and accessing the broader labour market. Initiatives relating to attraction, recruitment, development and advancement support the inclusion of diverse and previously under-represented groups.

During 2013-14, the Airservices Executive Diversity Council chaired by the CEO, met regularly to guide the delivery of diversity programmes and initiatives across the organisation. The meetings were held quarterly with the CEO attending three of those meetings.

The Diversity Council oversees the implementation of the Workforce Diversity Strategy 2012-2016. This was developed to recognise the value of diversity and provide a clear and coherent framework to integrate diversity into the organisation’s culture, programmes and services.

The strategy incorporates diversity groups identified as having lower than average workforce participation rates in Airservices.

These are Indigenous Australians, women, people with disability, people from culturally and linguistically diverse backgrounds.

An action plan to identify priorities and develop initiatives relating to attraction, recruitment, development, advancement and creation of an appropriate work environment, will be developed over the life of the strategy.

During 2013-14 our Reconciliation Action Plan 2012-2016 was progressed and a Gender Diversity Action Plan developed. Both documents guide activities to increase diversity and inclusion in these two areas. These action plans provide a framework to assist each business group to develop its own initiatives to improve diversity.

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Monitoring and evaluation - s. 6(h) The Workforce Diversity Strategy allocates responsibilities and sets performance indicators so objectives and strategies can be monitored.

The strategy is reviewed annually to ensure effectiveness and results are set against milestones and are presented to Airservices Diversity Council on a quarterly basis.

Workforce data about trends in the employment of women and the designated groups form the basis for monitoring and evaluating the strategy.

Summary of progress

We aim to create a work environment where all employees are supported and differences are embraced. We are committed to increasing the representation of Indigenous Australians, women, people with disability and people from cultural and linguistically diverse backgrounds, together with providing flexible working arrangements and supporting Airservices mature-aged workforce.

The Workplace Diversity Strategy 2012-2016 clearly articulates our diversity priorities. It provides a framework to successfully manage workplace diversity to enhance the capability of employees and better deliver on Airservices purpose to provide safe, secure, efficient and environmentally responsible services to the aviation industry.

Women Airservices is developing strategies to attract, recruit and develop our female employees. A Gender Diversity Action Plan has been published to focus on increasing the representation of women in senior leadership and operational roles.

Airservices is committed to improving the experiences of women using parental leave provisions and the action plan helps support employees and managers by focusing on flexible work practices and building a more

inclusive workplace that values women and their contribution to Airservices.

To date, 10 senior women have been sponsored by their business groups to attend the Women’s Leadership Program run by Chief Executive Women. This is a 12-month networking development course to support continued career progression. It demonstrates Airservices commitment to improving the gender equity in its senior leadership team.

The Women in Airservices forums were launched in June 2014, and held events in three major centres which were attended by approximately 200 employees. This initiative enables staff to network and discuss the challenges and opportunities for women at all levels within Airservices.

Indigenous Australians Airservices is reducing the gap in employment levels between the wider Australian population and Indigenous Australians. The Airservices Reconciliation Action Plan 2012-2016 forms part of the Workforce Diversity Strategy.

During the past year Airservices has focused on building the foundations of sustainable employment. Following the establishment of a new Reconciliation Action Plan reference group and the development of a plan framework, we can now deliver other targets identified in the Airservices Reconciliation Action Plan 2012-2016.

We have reviewed the methods used to attract Indigenous Australians to employment opportunities as air traffic controllers and aviation rescue fire fighters. Our bulk recruitment activities are now advertised throughout Indigenous media including the Koori Mail and the National Indigenous Times.

We continue to build strong and respectful relationships with Indigenous communities throughout Australia. One example is the relationship formed with remote Indigenous

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communities in Western Australia where we worked closely with Traditional Owners to decommission navigation equipment on traditional land.

Cultural awareness training is also being planned for all staff to continue building on our relationship with Indigenous Australians.

Employees from CALD backgrounds Airservices encourages and supports employees from CALD backgrounds. For example, a calendar of important diversity celebrations has been developed which highlights key days that are then celebrated through internal and external events promoted through AvNet, Azimuth newsletter and CEO Direct communications.

We have designated multi-purpose faith rooms in our major centres including Canberra, Brisbane, Melbourne, Perth and Adelaide to support employees who wish to observe religious practices while at work. In smaller centres such facilities will be made available as needed.

Employees with disability We recognise the skills and talents of people with disability and are committed to removing barriers to their participation in the workforce.

A number of programs have been implemented to improve workforce participation rates, including those to increase the skills of staff and managers in accommodating disability in the workplace. A specialist personnel company has been engaged to liaise with employees with disability and to ensure they have the support they need to excel in the workplace. This service also provides guidance to managers and staff ensuring they work and communicate effectively. This programme is currently being considered for expansion with other disability employment service providers.

Mature-aged workers Enhancing the contribution and job satisfaction of mature-aged employees is a priority and is being

achieved through succession management and knowledge transfer.

Airservices maintains strong connections with its retired workforce through our alumni network. Through this we are able to tap into the specialist skills of ex-employees, connect aviation enthusiasts, create knowledge sharing opportunities and build an extended community of expertise. To date there are 305 registered alumni members and regular events are held to maintain and build this network.

A large percentage of Airservices employees over the age of 50 remain in defined benefit superannuation funds such as the CSS, PSS and AvSuper Defined. Transition to retirement arrangements have been structured with AvSuper to facilitate ongoing employment once a member’s defined benefits reach a maximum level. These arrangements allow Airservices to continue to employ people beyond their nominal retirement age.

Strategic achievements

The Airservices Workforce Plan 2013-2020 and the Workforce Diversity Strategy 2012-2016, encourage diversity across four key strategic areas:

ƒ attraction

ƒ recruitment

ƒ development and advancement

ƒ creating an inclusive work environment.

These four areas represent opportunities for Airservices to remove barriers for applicants, develop current employees and ensure the organisation is culturally aware and inclusive.

Attract Airservices continued targeted advertising campaigns to attract candidates to roles across the business, with a focus on under-represented

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demographic groups in operational roles such as air traffic control and aviation rescue fire fighting.

The number of applications from women and Indigenous Australians continued to remain significantly higher than historical trends. A focus for the next 12 months will be further refinement of these strategies to continue to improve candidate pools.

Recruit Airservices reviewed the recruitment process for air traffic controllers and aviation rescue fire fighters. As well as improving performance efficiencies, the reviews examined the extent to which barriers to diversity have been redressed. Revised processes have been implemented and will be monitored over the coming year.

The training programme provided to selection panel members was also revised and matters such as the organisation’s diversity strategy and awareness of possible impediments (such as selection panel member unconscious biases) have been reinforced.

Development and advancement The Management Essentials leadership programmes in 2013-14 continued to include compulsory modules on fairness and diversity. Other leadership development programmes are based on living our corporate value of ‘inclusion’. There is a strong emphasis on understanding and respecting difference, as well as learning from peers with different backgrounds and from different generations.

A needs analysis for an organisation-wide cultural awareness training package has been completed with delivery of this to progress over the next financial year.

For new employees, Airservices Corporate Induction Program provides information on policies and procedures relating to fairness and diversity.

Creating an appropriate work environment, policies, procedures and information Airservices is committed to ensuring that all employees are treated fairly in the workplace, and that our work environment recognises and values diversity.

The Workforce Diversity Strategy 2012-2016 will enable action plans to be developed to address specific issues relating to diversity groups. More general initiatives are also being implemented to encourage and support a stronger culture of diversity. This includes conducting an ongoing review of our recruitment and people processes, conducting cultural awareness training, researching and promoting flexible work arrangements, and developing a communication strategy to encourage understanding and support for diversity.

The goals of our current diversity initiatives are in line with the Airservices ‘Our people, our future culture programme, which builds upon previous work done around the corporate values of excellence, cohesion, inclusion, initiative and courage. The programme aims to encourage staff behaviour that builds trust and supports the development of a stronger, more inclusive culture across the organisation.

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Equity and diversity statistics for 2013-14

Enquiries and complaints The number of complaints and enquiries regarding fairness and diversity for the reporting period are shown in Table 8. The statistics show that the total number of formal complaints has decreased.

Diversity profile

The Airservices diversity profile has remained relatively stable over the past five financial years, although there has been a slight decrease in employees from CALD backgrounds as outlined in Table 9 and Table 10. The number of employees with disability and Indigenous employees has remained relatively stable during the reporting year.

TABLE 8 Equity and diversity enquiries and complaints 2006 to 2014

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Employee numbers

2996 3130 3237 3462 3853 3991 4204 4475

Ethics Hotline enquiries 1 35 10 1 4 6 6 3 3

Ethics Hotline disclosures 2 6 3 0 1 4 4 17 21

Formal complaints

5 3 10 6 16 18 55 3 35 3

9 4 3 4

1. These relate to all enquiries received through the Ethics Hotline, which may include equity and diversity.

2. These relate to all formal disclosures received through the Ethics Hotline which may include equity and diversity.

3. These complaints were made via the Fair Treatment Review System in the first instance.

4. These relate to complaints reported via the Process Review Procedure in the first instance where an individual believes that an Airservices system, policy, or procedure has been applied incorrectly. It also includes any complaints that are escalated to the Grievance Board.

TABLE 9 Representation of designated groups among permanent staff 2006 to 2014

Designated Groups*

2006-07 % 2007-08 %

2008-09 % 2009-10 %

2010-11 % 2011- 12 %

2012-13 % 2013- 14 %

Indigenous Australians*

1.3 1.2 1.1 1.0 0.9 0.9 0.9 0.9

People with disability

1.6 1.5 1.6 1.6 1.5 1.4 1.3 1.2

People from a culturally or linguistically diverse background

4.3 4.9 5.6 6.3 7. 5 8.0 7.1 6.7

*Note that disclosure is voluntary and not all staff provide equity and diversity data for these groups.

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Gender

At 30 June 2014, women made up 19.3 per cent of Airservices total workforce (863 women). The percentage of women in the workforce has decreased by 0.2 per cent since last financial year, down from 19.5 per cent. Table 11 shows the breakdown of gender by job classification. The number of women in management roles increased by 0.96 per cent since the last reporting period and includes four women senior executives out of a total of 10.

Indigenous Australians

As outlined in Tables 9 and 10 the percentage of Indigenous Australian employees has remained relatively stable, although actual numbers increased from 37 to 41 during 2013-14. This includes new employees as well as existing employees who have chosen to identify themselves as Indigenous Australians as a result of the increased activity under the Airservices Reconciliation Action Plan. This may not reflect the actual number of Indigenous employees

TABLE 10 Employment of permanent staff in designated groups by job classification

Indigenous employees

CALD background Employees with disability

Job family

Total June 2013 Total June 2014

Total June 2013 Total June 2014

Total June 2013 Total June 2014

Air traffic controller 8 8 37 37 12 11

Air traffic controller (trainee) 0 0 5 3 2 0

Air traffic support specialist 3 2 7 9 2 2

Clerical administration 5 4 121 111 18 16

Executive manager 0 0 0 0 0 0

Fire fighter 7 13 12 13 2 2

Fire officer 6 5 2 1 1 1

Flight data coordinator 1 1 1 1 0 0

Flight information service officer 1 3 2 8 0 0

Flight service officer 0 0 0 0 0 0

Professional 0 0 8 8 1 1

Senior manager 0 0 11 12 0 1

Senior technical officer 0 0 0 0 0 0

Team leader 0 0 2 4 1 1

Technical manager 0 0 0 0 0 0

Technical officer 5 5 53 52 12 11

Technology professional 1 0 39 39 2 3

Trades and target generator officer

0 0 2 2 3 3

Total 37 41 302 300 56 52

Percentage of workforce 0.9 0.9 7.1 6.7 1.3 1.2

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as some in this group choose not to identify themselves as Indigenous Australians.

People with disability

Table 10 and Figure 3 show a small decrease in employees reporting a disability over the year. It should be noted that legislated safety standards preclude those with a certain disability from holding some positions, for example air traffic controllers and aviation rescue fire fighters.

CALD

Figure 3 shows that at 30 June 2014 there were 300 identified people from CALD backgrounds employed by Airservices, which represents 6.7 per cent of the total workforce.

FIGURE 3 Headcount by designated group 2011-2014

Indigenous Disability

Number of employees

CALD

0

50

100

150

200

250

300

350

2013/14 2012/13 2011/12

298

288

300

31

302

37

58 56

41

52

TABLE 11 Gender by job classification as at 30 June 2014

Job family % Female Female Male

Air traffic control 11.62 125 951

Air traffic control trainee 19.15 27 114

Air traffic support 20.11 38 151

Aviation fire fighter 2.69 18 651

Clerical administration 51.42 471 460

Executive manager 40.00 4 6

Fire officer 1.09 2 182

Flight data coordinator 24.14 7 22

Flight information service officer 17.35 17 81

Professional 18.42 14 62

Senior manager 28.42 83 212

Team leader 11.59 8 61

Technical officer 5.05 20 376

Technology professional 11.06 26 209

Target generator officer 0.00 0 2

Trades 4.00 3 72

Total 863 3612

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Mature-aged employees

Airservices relies on mature-aged employees (45 years and over) whom in 2013-14 represented 45 per cent of the ongoing workforce. Implications of an ageing workforce are being addressed through initiatives including succession planning, workforce planning, knowledge and skills transfer, part-time working arrangements, and phased retirement plans. Additionally, employees approaching retirement age are provided with information on the superannuation benefits of deferred retirement.

Work life balance

At 30 June 2014, there were 225 employees working in part-time roles at Airservices, or five per cent of the workforce. This number has increased since last financial year when there were 195 part-time employees.

TABLE 12 Airservices employee age profile at 30 June 2014

Age range

Number of employees Percentage of employees

Under 25 182 4.07

25-34 1045 23.35

35-44 1234 27.58

45-54 1250 27.93

55-64 686 15.33

65+ 78 1.74

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TABLE 13 Number of staff, by classification and state, at 30 June 2014

Job role State

ACT NSW NT QLD SA TAS VIC WA

Air traffic control 12 151 6 406 56 12 352 81

Air traffic control trainee 1 2 0 24 0 0 111 3

Air traffic support 3 9 0 53 0 0 120 4

Aviation fire fighter 17 73 61 218 37 38 112 113

Clerical administration 523 37 1 164 1 0 193 12

Executive manager 10 0 0 0 0 0 0 0

Fire officer 8 20 16 61 11 10 30 28

Flight data Coordinator 0 0 0 15 0 0 14 0

Flight information service officer 40 0 0 56 0 0 2 0

Professional 17 1 0 28 0 0 29 1

Senior manager 183 9 1 44 2 0 44 9

Team leader 27 7 1 16 3 1 10 4

Technical officer 19 81 12 135 19 5 98 27

Technology professional 87 4 0 67 4 0 69 4

Target generator officer 0 0 0 2 0 0 0 0

Trades 5 11 1 20 8 0 20 10

TOTAL 952 405 99 1309 141 66 1204 296

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Appendix 6: Workforce plan progress report

The Workforce Plan 2013-2020 includes a profile of Airservices workforce, the key challenges and risks we expect to occur over the next six years, as well as strategies Airservices is implementing to manage these risks.

Consistent with the Ministerial Statement of Expectations, Airservices is required to provide an annual update on implementation of the plan.

This Appendix provides an update on the activity undertaken in 2013-14.

In the past 12 months, the emphasis of workforce planning has been to make changes to how workforce planning activity is conducted in support of OneSKY Australia—a single national air traffic management system—and continued development and implementation of workforce strategies.

Supporting OneSKY Australia

In support of transition to OneSKY Australia we have reviewed and improved our approach to enterprise workforce planning resulting in the following changes:

ƒ Enterprise-wide resource planning has been established to improve the accuracy and consistency of our workforce forecasts as OneSKY planning continues. This will enable us to better understand and predict where our workforce capacity and capability gaps may be and where future issues may arise.

ƒ Planned workforce accountabilities between our human resource function and the business groups have been updated. Clearer accountabilities and agreed milestones are resulting in more consistent workforce planning across the business. This will result in a more detailed level of accuracy in forecasting workforce demand and supply.

ƒ Accountabilities of senior managers within each business group have been developed, focusing on the coordination of group resource planning and detailed resource forecasts. This specific focus in the business groups will increase the awareness and participation of workforce planning activities within Airservices, as we transition to OneSKY.

ƒ We are implementing a flexible workforce model over the next 12 months that incorporates the impact of OneSKY and longer term workforce planning.

Development and implementation of strategies

In the plan, a number of key workforce risks and associated strategies were identified.

The initiatives and activities that have taken place in the past year are summarised here. It should be noted that in many cases workforce strategies and the assessment of their effectiveness will have long lead times.

Workforce risk and mitigation strategies are outlined in Table 1. Where possible, comments on the effectiveness or current trends of our strategies have been provided. For most initiatives, we will continue to monitor and track our progress to assess their effectiveness.

Along with these initiatives, we have also undertaken the following activities:

ƒ Designed, developed and implemented a Job Family Framework. This will be used to group similar positions together that have related skills, tasks and knowledge. It will form the basis for integrated management of job skills in the future.

ƒ Established a standardised set of job roles, competencies and capabilities, and clarified

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our understanding of current and future workforce needs.

ƒ Consolidated and evaluated our critical roles to help make sure we prioritise our mitigation strategies and focus on those roles that are hardest to fill, core to our business, or have long lead times to competency.

ƒ Implemented the Skills Framework for the Information Age in our Business Systems group (formerly the ICT business group). This describes the typical roles in information technology and the types and levels of skills required to fulfil them. This complements activity in determining workforce capability and helps determine the critical roles required by Business Systems in the future.

ƒ Developed a visual management system that provides a network view of all air traffic control roster groups and shows the future workforce demand and supply requirements of each roster group. This builds on previous models and provides greater understanding of cross-functional requirements for air traffic control (terminal control areas, tower and en route) and supports longer term planning within our Learning Academy.

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TABLE 14 Airservices Workforce Risks, Strategies and Activities

Risk Strategy Activities

Ageing workforce, knowledge loss through retirement.

ƒ Accommodate individual preferences and improve work-life balance through flexible working practices, job sharing, phased retirement, casual hours, part-time hours.

ƒ Develop mentoring programs to transfer knowledge from potential retirees to identified successors.

ƒ Maintain focus on entry-level recruitment to balance the ageing demographic.

ƒ Monitoring of casual and part-time employees continues to indicate a positive trend, with around five per cent of the workforce employed with flexible conditions.

ƒ A 12-month trial was undertaken in the Sydney basin to promote existing flexible working arrangements and improve information for air traffic control employees and managers.

ƒ Mentoring programmes continue in the Projects and Engineering and the Air Traffic Control groups.

ƒ Entry-level recruitment efforts are ongoing, resulting in more than 200 newly qualified starters across 20 locations to support Aviation Rescue Fire Fighting, Air Traffic Control and Projects and Engineering business groups.

ƒ Improved training outcomes are being achieved through technology investment by Airservices Learning Academy. This includes the tower simulator and tablet trial programme for new trainees. The aim is to increase realism, reduce the time to certification and use the relevant technology to aid classroom learning. The trial program is underway and expected to be completed in 2015. The impact of the trial is being monitored and will be assessed on completion.

Increased workforce mobility demand internally.

ƒ Develop fit for purpose secondment and mobility policies.

ƒ Develop employment conditions to facilitate mobility, particularly to remote geographic locations.

ƒ More than 50 secondments are in progress, providing subject matter expertise where needed and giving individuals broader exposure to Airservices business. Centralised monitoring implemented to track the effectiveness of this initiative.

ƒ Secondment guidelines have been updated to increase awareness of available career development opportunities for air traffic controllers.

ƒ Flexible employment opportunities are being implemented for aviation rescue fire fighters to support remote station staffing requirements, including Gladstone in Queensland and Newman in Western Australia.

ƒ Own-time-own-expense relocation has been enabled 16 aviation rescue fire fighters across six locations to meet station demands.

ƒ The first phase of the Job Family Framework— Workforce Capability Project is being implemented, to enable future identification and analysis of workforce skills.

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Risk Strategy Activities

Long tenure potential wave of impending staff retirements.

ƒ Continue to implement succession planning and talent management.

ƒ Continue to build leadership capability.

ƒ Management positions will be rotated in a number of business groups. This will provide development opportunities and ensure we identify talent and future leaders to develop a wider understanding of the business.

ƒ Capacity and fast track officer training is being increased in the Aviation Rescue Fire Fighting group to provide future leaders in regional locations.

ƒ Succession planning was extended in Projects and Engineering to include all employees over 55 years of age.

ƒ Capability training is being implemented for aviation rescue fire fighters through leadership and skills coaching programmes. These programmes have been designed to ensure a consistent understanding of organisational goals and objectives, provide opportunities for future leaders in an appropriate context, and ensure suitable coaching is available.

Turnover of short tenure, less than three years.

ƒ Monitor and review career development plans matching individual goals with development opportunities.

ƒ Data for turnover of short tenure employees continues to show retention is improving and turnover is decreasing. Improved approaches to staff management and recruitment practices have contributed to this outcome.

Diversity profile. ƒ Continue to build a diverse workforce through the employment of:

- Indigenous staff

- women

- people with disability

- CALD backgrounds.

ƒ Progress continues against the current Workplace Diversity Strategy (see Appendix 5).

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Risk Strategy Activities

Competitive market for specialist skills.

ƒ Establish an organisational brand for current and prospective employees - an Employee Value Proposition. An Employee Value Proposition is both tangible and intangible rewards that an organisation offers current and prospective employees including remuneration, benefits, working environment and culture.

ƒ Develop marketing and engagement strategies to access a wider range of candidates.

ƒ Adopt recruitment strategies that reflect current labour market conditions with a focus on flexible working arrangements.

ƒ Research has been undertaken on potential service providers to develop and implement the Employee Value Proposition.

ƒ Recruitment process reviews have been undertaken for operational intakes and recommendations have been implemented.

ƒ An external expert review has been undertaken on aviation rescue fire fighting physical requirements.

ƒ Eligibility criteria have been increased for the air traffic control application process to improve intake and diversity.

ƒ A cross-functional taskforce has been established to enhance recruitment and training outcomes for entry-level air traffic controller programmes.

ƒ Our success rates under these initiatives are being monitored to assess their effectiveness.

ƒ Planning of lead times for notification of recruitment activities reviewed to increase the time available to tailor recruitment campaigns.

ƒ The graduate recruitment cycle will be brought forward to improve opportunities to source the best talent available in the graduate market.

Government and regulatory changes.

ƒ Review the current recruitment processes to ensure they are consistent with the changing external environment.

ƒ Airservices recruitment practices have been adjusted and all non-operational recruitment has been deferred unless approved by the CEO.

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Appendix 7: Environmental sustainability report

This section is presented in accordance with the requirements of section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

How Airservices applies ecologically sustainable development principles

Airservices develops and implements policies and programmes that protect and conserve the

natural environment and contribute to ecologically sustainable development.

The table below sets out how the organisation applies the principles of ecologically sustainable development.

Principles Activities

Integration principle. Decision making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations.

ƒ Undertaking environmental impact assessments for changes to aircraft operations (in accordance with the Environment Protection and Biodiversity Conservation Act 1999 requirements) to minimise noise impacts associated with flights paths on communities.

ƒ Continuing to examine ways to reduce Airservices environmental footprint and that of the aviation industry.

ƒ Providing efficient routing options for our customers.

ƒ Implementing Required Navigation Performance procedures.

ƒ Participating in international initiatives to reduce emissions including the:

- Asia and South Pacific Initiative to Reduce Emissions (ASPIRE)

- Indian Ocean Strategic Partnership to Reduce Emissions (INSPIRE).

ƒ Enhancing WebTrak, which provides public access to information about aircraft noise and operations around eight of Australia’s busiest airports.

Precautionary principle. If there are threats of serious or irreversible environmental damage, lack of full scientific certainty should not be used as a reason for postponing measures to prevent environmental degradation.

ƒ Implementing an environment management plan for potential issues arising from the use of fire fighting foams containing fluorosurfactants at aviation rescue fire fighting training grounds.

ƒ Continuing involvement in the CANSO environment working group.

ƒ Implementing pre-departure tactical air traffic management.

ƒ Implementing the Metron-Harmony traffic flow tool to reduce airborne holding at Sydney, Brisbane, Perth and Melbourne airports.

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Principles Activities

Intergenerational principle. The present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced, for the benefi t of future generations.

ƒ Training staff on environmental issues, the environmental management system, risk management and staff accountabilities.

ƒ Promoting environmental awareness and initiatives (including Earth Hour and Greenfleet Tree Planting Day).

ƒ Ensuring the organisation’s environmental management system is in line with ISO 14001 (the international standard for environmental management systems) and maintaining ISO14001 certification at two sites.

ƒ Supporting the preservation of Australia’s aviation history through the Civil Aviation Museum and Civil Aviation Historical Society

ƒ Ensuring that the impacts of Airservices executive fleet and aviation rescue fire fighting vehicle operations are offset by membership of Greenfleet (trees are planted as carbon offsets).

ƒ Improving the system for ongoing monitoring of our greenhouse gas emissions and energy consumption and production to enable reporting in accordance with National Greenhouse and Energy Reporting Act 2007 requirements for 2013-14.

ƒ Assessing of potential heritage values of aviation rescue fire fighting stations, towers and navigation aids.

Biodiversity principle. The conservation of biological diversity and ecological integrity should be a fundamental consideration in decision making.

ƒ Undertaking environmental impact assessments in accordance with Environment Protection and Biodiversity Conservation Act 1999 requirements in support of new and changing internal business processes for projects, property and operational procedures.

Environmental Performance of Operations

The Airservices Environment Action Plan Update 2013-14 tracks our environmental performance against the Environment Strategy 2011-2016. The Board Environment Committee monitors the following aspects of its environmental performance:

Services-Aircraft emissions, aircraft noise and community engagement, aviation rescue fire fighting services.

Infrastructure-Infrastructure footprint, biodiversity, heritage and climate adaptation, pollution and contamination.

People and processes-Environmentally focused workforce, innovation, management and measurement.

In addition, Airservices environmental management system provides a framework for achieving sound environmental outcomes and ensuring the organisation meets its associated legislative and regulatory obligations. The system includes policy requirements and detailed procedures, and highlights that all staff are responsible for environmental management and managers are accountable for managing environmental risks and performance in their areas of responsibility.

This system is also in line with the international standard ISO 14001 and certified for ground-based operations at two sites—Gold Coast Airport and Gellibrand Hill Radar.

We review and update the system regularly to ensure it is fit for purpose, in line with best practice wherever practical, and effectively manages Airservices environmental aspects and risks.

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Appendix 8: Airservices stakeholders and industry partners

Airservices provides safe, environmentally responsible and efficient air traffic management and related aviation services.

We engaged with the following key organisations and participated in a series of major forums throughout 2013-14.

Government departments and regulators

Australian Competition and Consumer Commission

Australian Maritime Safety Authority

Aircraft Noise Ombudsman

Australian Skills Quality Authority

Australian Transport Safety Bureau

Bureau of Meteorology

Civil Aviation Safety Authority

Council of Australian Government Industry and Skills Council

Department of Industry

Department of Infrastructure and Regional Development

Department of Environment

Department of Defence

Defence Materiel Organisation

Department of Finance

Ministry of Communication and Aviation-Solomon Islands Government

Minister of Transport Civil Aviation-The Republic of Nauru

Rural and Regional Affairs and Transport Senate Committee

Industry organisations

Aerial Agricultural Association of Australia

Australian Airports Association

Australian Business Aircraft Association

Australasian Fire and Emergency Service Authorities Council

Airport Development Committee

Australian and International Pilots Association

Aircraft Owners and Pilots Association of Australia

Airspace Protection Task Force

Australian Strategic Air Traffic Management Group

Board of Airline Representatives of Australia

Industry and Skills Council Advisory Committee

National Airports Safeguarding Advisory Group

Pricing Consultative Committee

Regional Airspace and Procedures Advisory Committee

Regional Aviation Association of Australia

Airservices Annual Report 2013-14 155

06 Appendices

International organisations

Abu Dhabi Department of Transport

Abu Dhabi Airports Company

AEROTHAI-State Enterprise under the Ministry of Transport

Aeronautical Radio of Thailand Ltd

Agence pour la Sécurité de la Navigation Aérienne en Afrique

Airports Council International

Airports Fiji Limited

Air Traffic Management Bureau of Civil Aviation Administration of China

Airways NZ

Asia and South Pacific Initiative to Reduce Emissions

Aircraft Rescue and Fire Fighting Working Group

Airports Authority of India

Airports Vanuatu Ltd

Civil Aviation Authority of Singapore

Civil Air Navigation Services Organisation

Colombo-Airport and Aviation Services (Sri Lanka) Ltd

Department of Civil Aviation of Mauritius

Dubai Air Navigation Services

Eurocontrol

Federal Aviation Administration

ICAO Somalia

Indonesia-Air Nav

International Airline Transport Association

International Aviation Fire Protection Association

International Civil Aviation Organization

Indian Ocean Strategic Partnership to Reduce Emissions

Japan Civil Aviation Bureau

Kenya Civil Aviation Authority

Maldives-Maldives Airports Company Limited and Maldives Civil Aviation Authority

Mauritius-Department of Civil Aviation

Papua New Guinea Airservices Limited

Public Authority for Civil Aviation, Sultanate of Oman

UAE-General Civil Aviation Authority

Uganda-Air Navigation Services Civil Aviation Authority

UK NATS

University of Texas

Seychelles Civil Aviation Authority

South Africa-Air Traffic and Navigation Services

Timor-Leste Civil Aviation Department

Employee associations

Civil Air Australia

Community and Public Sector Union

Electrical Trade Union

Professionals Australia

United Firefighters Union of Australia

Airservices Annual Report 2013-14 156

06 Appendices

Airports Airservices interacts with the following airports because they are federally leased airports or have Airservices equipment or services

Adelaide

Albury

Alice Springs

Archerfield

Avalon

Ayers Rock

Ballina

Bankstown

Brisbane

Broome

Cairns

Camden

Canberra

Coffs Harbour

Darwin

Essendon

Gladstone

Gold Coast

Hamilton Island

Hobart

Jandakot

Karratha

Launceston

Mackay

Melbourne

Moorabbin

Mt Isa

Newman

Parafield

Perth

Port Hedland

Rockhampton

Sunshine Coast

Sydney

Tamworth

Tennant Creek

Townsville

Wagga Wagga

Airservices Annual Report 2013-14 157

06 Appendices

Airports Airports that are anticipated to require Airservices support in the future

Busselton

Emerald

Geraldton

Kalgoorlie

Lord Howe Island

Mildura

Onslow/Carnarvon

Paraburdoo

Roma

Taree

Wellcamp

Williamtown

Airlines Throughout 2013-14 Airservices worked with the following airlines

AirAsia X

Airlink

Alliance

Air India

Air Madagascar

Air New Zealand

British Airways

Cathay Pacific Airline

Cobham Aviation Services

Delta

Emirates Airline

Ethiopian Airlines

Etihad Airways

Jetstar

Kenya Airways

Korean Air

Malaysia Airlines

Qantas

Qantaslink

Qatar Airways

Regional Express

Rex Airlines

Scoot

SkyWest

Singapore Airlines

Singapore Cargo

South African Airways

Thai Airways

Tiger

United Airlines

Virgin Australia

Vietnam Airlines

Airservices Annual Report 2013-14 158

06 Appendices

Community organisations

Adelaide Airport Consultative Committee

Alice Springs Airport Community Aviation Consultation Group

Archerfield Airport Community Aviation Consultation Group

Bankstown Airport Community Aviation Consultation Group

Brisbane Airport Community Aviation Consultation Group

Cairns Airport Environmental Consultative Committee

Camden Airport Community Aviation Consultation Group

Canberra Airport Community Aviation Consultation Group

Darwin Airport Community Aviation Consultation Group

Essendon Airport Community Aviation Consultation Group

Gold Coast Airport Community Aviation Consultation Group

Gold Coast Airport Aircraft Noise Abatement Consultative Committee

Hobart Airport Community Aviation Consultation Group

Jandakot Community Aviation Consultation Group

Launceston Airport Community Aviation Consultation Group

Melbourne Airport Community Aviation Consultation Group

Melbourne Airport Noise Abatement Committee

Moorabbin Airport Community Aviation Consultation Group

Parafield Airport Consultative Committee

Perth Airport Aircraft Noise Management Consultative Committee

Perth Airport Community Aviation Consultation Group

Sunshine Coast Airport Community and Aviation Consultation Group

Sydney Airport Community Forum

Sydney Long Term Operating Plan Implementation and Monitoring Committee

Townsville Airport Community Aviation Consultation Group

Airservices Annual Report 2013-14 159

06 Appendices

Forums and working groups

Airport Capacity Enhancement

Air Traffic Services and Airline Safety Forum

Air Traffic Flow Management Business Rules Forum

Airspace Protection Task Force

Annual Industry Noise Forum

Australian and Indonesian Air Traffic Services Coordination Group

Australian Airports Association Annual Conference

Australian Strategic Air Traffic Management Group

Australian Civil-Military Air Traffic Management Committee

Australian Runway Safety Group

Arabian Sea Indian Ocean Air Traffic Services Coordination Group

Asia and South Pacific Initiative to Reduce Emissions

Aviation Implementation Group

Aviation Policy Group

Arabian Sea Indian Ocean ATS Coordination Group Annual Conference

Brisbane Airport Capacity Forum

Civil Air Navigation Services Organisation Air Traffic Management Awards

Capacity and Services Improvement Forum

Executive Steering Group Meetings

Indian Ocean Strategic Partnership to Reduce Emissions forum

Informal South Pacific Air Traffic Services Coordinating Group

National Airports Safeguarding Advisory Group

Planning Coordination Forum

Qantas Air Traffic Management Performance Group-Plenary Meetings

Qantas Air Traffic Management Performance Group Meetings

Qantas Group Safety and Health Conference

Regional Airports Association Annual Conference

Regional Airspace and Procedures Advisory Committee

Regional Aviation Association of Australia

Sydney Air Traffic Management Strategic Planning Group

South West Pacific Safety Forum

Virgin Air Traffic Management Performance Group-Plenary Meetings

Virgin Air Traffic Management Working Group Meetings

Virgin Australia Operational Safety Forum

Waypoint (Airservices annual industry conference)

Airservices Annual Report 2013-14 160

06 Appendices

Other

Australian Firefighters Council

Australian Parachute Federation

Diploma of Aviation Steering Committee and Technical Advisory Group (via Transport and Logistics Industry Skills Council)

Enterprise Registered Training Organisation Association

Industry Skills Councils for Aviation and Public Safety

National Association of Testing Authorities

Riverina Technical and Further Education

Standards Consultative Committee

University of Canberra

University of New South Wales

Airservices Annual Report 2013-14 161

06 Appendices

Appendix 9: Noise Complaints and Information Service data

TABLE 15: Number of clients who contacted our Noise Complaints and Information Service in 2013-14 for eight major airports.

Airport Clients

Adelaide 171

Brisbane 458

Cairns 28

Canberra 39

Gold Coast 204

Melbourne 333

Perth 1126

Sydney 1200

Total 3559

The majority of major airports had minor fluctuations in the number of clients from last year, however, Sydney increased by 46 per cent.

Airservices Annual Report 2013-14 162

06 Appendices

Appendix 10: Aircraft Noise Ombudsman Annual Report

Annual Report

2013-2014

Airservices Annual Report 2013-14 163

Table of Contents

1 From the Ombudsman................................................................................... 1

2 Activities......................................................................................................... 5

Complaints....................................................................................................... 5

How long for complaints to be reviewed? ........................................................ 8

Reducing contacts to Airservices................................................................... 10

Community and industry engagement ........................................................... 11

Professional training and development .......................................................... 11

Complaint analysis and management system................................................ 12

3 Achievements .............................................................................................. 13

Noise improvement opportunities .................................................................. 13

Case study review.......................................................................................... 14

Information provision...................................................................................... 15

Publications ................................................................................................... 15

4 Financial Results ......................................................................................... 16

Attachment 1 ANO complaint statistics........................................................... 17

Attachment 2 Noise improvement opportunities............................................ 18

Attachment 3 ANO assessment of action on recommendations .................. 20

Case Studies

1. Can the planes climb further away? .....................................................................13

2. Flight paths can be changed ................................................................................14

Email: ano@ano.gov.au

Freecall: 1800 266 040

Write to: Aircraft Noise Ombudsman GPO Box 1985 Canberra City ACT 2601

ANO contact Website: www.ano.gov.au

Aircraft Noise Ombudsman 2013-2014 Annual Report Page i

Airservices Annual Report 2013-14 164

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 1

“Eight noise improvement opportunities have been finalised in these past 12 months”

1 From the Ombudsman

1.1 I have been greatly encouraged by the steps taken in the past twelve months. This includes both with the way the ANO office is managing our activities and the way Airservices Australia (Airservices) is improving its management of aircraft noise issues.

1.2 Our key achievements in 2013-14 include implementation of our first software-based complaints management system, publication of another major review aimed at improving Airservices’ management of complaints, and finalisation of a number of long-standing cases that were awaiting effective inves Airservices of potential noise improvements. Additionally, I am delighted that eight noise improvement opportunities have been finalised in these past 12 months as a response to complaints handled by the ANO office. I am equally pleased that Airservices is now more readily identifying noise improvement opportunities without our intervention.

tigations by

1.3 The ANO provides independent administrative reviews of Airservices’ management of aircraft noise issues, specifically focussed on three areas:  Complaint handling  Information presentation and distribution  Consultation Our work with Airservices is consequently structured around these three areas, so I will briefly summarise the year for each below.

Complaint handling

1.4 The number of complaints to the ANO office increased during 2013-14, with the average number of complaints per month rising from just over seven last year to almost nine per month, much closer to the longer term trend. Notably, a significantly larger number of the complaints received this year were able to be referred to Airservices for a direct response (34 compared with only 9 referred last year). In many cases these were referred because complainants had not fully explored their concerns with Airservices or had not gone back to Airservices with their new issues. It is also a reflection of the maturing of Airservices’ complaint management culture that we can confidently ask complainants to go back to Airservices. Attachment 1 provides a summary of the ANO complaint statistics for 2013-14.

“The past 12 months have been highly satisfying, with positive progress in all areas of the ANO charter.”

Airservices Annual Report 2013-14 165

1.5 As mentioned on the previous page, eight noise improvement opportunities have been finalised in these past 12 months as a response to complaints handled by the ANO office. Following our investigation, Airservices re-considered ways to manage the aircraft noise issues in an area, often in consultation with aircraft and/or airport operators. Of the opportunities explored, two resulted in no feasible change being identified in the near future, but in the remaining six a change could be made leading to a noise improvement (albeit often at the margins). All opportunities identified through complaints are reported in the ANO quarterly reports and a summary is available in Attachment 2.

1.6 Last year I was thrilled to be able to report a dramatic decrease in the number of contacts Airservices was receiving. I am pleased to see the drop in unecessary repeat contacts from complainants has been sustained in 2013-14. Further discussion of this issue is available in sections 2.20 to 2.24 of this report. I look forward to further enhancements by Airservices in 2014-15 that will help to embed processes that discourage repeated contact by complainants on issues that have been fully addressed. The key benefits of this improvement are that it saves the complainant time and effort, and also frees up Airservices’ resources to work on:  improving responses to complaints  identifying noise improvement opportunities  enhancing the information available to the community about aircraft noise

issues.

1.7 Airservices continues to make solid progress in complaint management. With the release of our Case Studies in Complaint Management Review in January 2014 we made six recommendations to the Board of Airservices aimed at improving Airservices’ management of complaints across a range of issues. It seeks:  reform in complaint record management  better alignment of, and quality assurance in systems, processes and

practices  improved information provision and reporting based on complaint data. Airservices has closed three parts of two recommendations. Attachment 3 outlines the ANO’s assessment of action on each recommendation.

ces has closed three parts of two recommendations. Attachment 3 outlines the ANO’s assessment of action on each recommendation.

“Case Studies in Complaint Management Review made six recommendations aimed at improving Airservices’ management of complaints”

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 2

Airservices Annual Report 2013-14 166

Consultation

1.8 ANO staff attend a variety of community and industry forums across Australia to monitor Airservices’ consultation and information provision and to gather information about emerging aircraft noise issues.

1.9 As with previous years, we have not made any formal recommendations to Airservices on their consultation activities. We provide feedback as appropriate and monitor Airservices’ consultation activities for alignment with its Communications and Consultation Protocol and community expectations.

“ANO staff attend community and industry forums across Australia”

Information provision

1.10 Information provision is an important component of managing aircraft noise issues and is a key focus for the ANO. For this reason I accepted nomination as Chair of the Australian Standards committee reviewing the Australian Standard AS2021-2000: Acoustics — Aircraft noise intrusion — Building siting and construction. The review is limited in scope, however, I have also proposed, on behalf of the committee, the development of a Standards Australia guidance document about aircraft noise information provision. I am pleased that my proposal was approved by the Standards Australia Board and the guidance document will be developed in the coming year.

“I have proposed development of a Standards Australia publication about aircraft noise information”

1.11 Airservices has continued to work on actions to address the three recommendations from our Assessment of Aircraft Noise Issues: Sydney, February 2012 that were not yet finalised at the start of the 2013-14 financial year. Two have now been finalised, with action well underway to address the last of these recommendations. Attachment 3 outlines the ANO’s assessment of action on each recommendation.

1.12 The successful implementation of the software-based ANO Complaints System (ANOCS) was a significant piece of work undertaken during 2013-14 in the ANO office. A great team effort led to a smooth transition process, with no interruption to the service provided to complainants. The new system has delivered beyond expectations, with significant efficiencies in time and administration effort in managing our complaints.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 3

Airservices Annual Report 2013-14 167

Final remarks

1.13 To ensure that the ANO operates with independence and impartiality, the position reports directly to the Board of Airservices. It is not part of Airservices’ executive or management structures. As the Ombudsman, I am not an employee of Airservices and I report directly to the Board under the terms of a contract and Charter that establish my role as independent from any form of direction, influence, or control beyond the terms of the ANO Charter.

“The ANO operates with independence and impartiality”

1.14 I am thrilled to have been reappointed at the end of 2013 to the role of Aircraft Noise Ombudsman for an additional three year term. When I reflect on the first three years I am proud of the achievements we have made. In particular I count the shift in Airservices’ approach to complaints, Airservices’ Strategic Noise Improvement Plan, and the noise improvements that have been pursued as a direct result of the ANO’s interventions as key highlights.

1.15 In noting achievements, I must acknowledge the strong support provided by the Chair and Directors of the Board of Airservices, and the positive way that the staff and management of Airservices has engaged with the office. Further, we would not have achieved the significant outcomes we have without the continued commitment and professionalism of the small and dedicated ANO team. It is my honour and pleasure to work with this exceptional team and I commend them in the highest terms.

“I am grateful for and inspired by the insights and contributions of community members”

1.16 I remain both grateful for and inspired by the insights and contributions of community members. Through their complaints and engagement in the various community forums, we are able to work with Airservices and other stakeholders to analyse the issues raised and in some cases identify opportunities for aircraft noise improvements.

1.17 While we cannot fix every problem, and aircraft noise will continue to be an issue for many, I am continually heartened by the opportunities to help people. Even when the only thing we can do is to provide a resident with a clearer understanding of the noise situation in their area, I am confident that the information we provide can in some small way help them to better manage the noise issues they are experiencing. I look forward to continuing our work with Airservices, the community and other stakeholders as we look for better ways to manage the aircraft noise issues in Australia.

Ron Brent Aircraft Noise Ombudsman 4 August 2014

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 4

Airservices Annual Report 2013-14 168

2 Activities

Complaints

2.1 The ANO has received more complaints in 2013-14 than in the previous year.

Table 1: Comparative complaint statistics by financial year

Total fin. year Ave per month

%

Change

Sep 2010-Jun 2011 (10 mths) 101 10.1

Jul 2011-Jun 2012 (12 mths) 109 9.1 ↓ 10.1%

Jul 2012-Jun 2013 (12 mths) 88 7.3 ↓ 19.3%

Jul 2013-Jun 2014 (12 mths) 106 8.8 ↑ 20.5%

2.2 This increase is in line with the almost 20% rise in the number of complainants that contacted Airservices Australia in 2013-14 compared to the previous 12 month period. We also looked into where the complaints were coming from and it can be seen from the graph below that there has been a general increase in complaints across all states (no complaints were received from the ACT, NT or Tasmania in 2013-14). The greater increase in the NSW region may reflect an increased public awareness of aircraft noise issues due to the media attention about a second Sydney Airport.

Graph 1: Comparison of complaints received by the ANO by State

0

5

10

15

20

25

30

35

40

NSW SA QLD VIC WA

2012‐13 2013‐14

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 5

Airservices Annual Report 2013-14 169

2.3 We started the financial year with 22 open complaints and received a further 106 during the year, making the total number of complaints handled in the financial year 128. This is up a little on the 120 we had in the previous two financial years. Of these, 114 were closed, 75 of which were reviewed (that is, investigated in detail).

Table 2: Outcome of complaints reviewed by the ANO in 2013-14

Complaints reviewed and closed: 75

No change possible - explanation provided 64 85.3%

Change adopted by Airservices Australia 5 6.7%

Change adopted by Airport operator 2 2.7%

Change adopted by Operator 4 5.3%

2.4 As with previous years, a majority of the complaints reviewed were closed without any change being possible (85.3%). In these cases, complainants are provided with comprehensive explanations of why no change is possible. Generally, this is because safety or other operational factors require aircraft to fly where they do, or because changing where the aircraft fly would simply move the noise impacts to other residents and would not provide an overall noise improvement.

Modified flight path: Roleystone, WA

2.5 Changes made this financial year by Airservices in response to complaints made to the ANO were all in the Perth region, responding to complaints about flights over Roleystone and Chidlow. Both areas were affected by a change to the airspace configuration implemented in November 2008, which resulted in new aircraft noise over these suburbs (among others):  For Roleystone and nearby suburbs,

Airservices has implemented a 12 month trial flight path that has reduced the number of flights over Roleystone, particularly at night as it is the instrument approach path that was moved. Visual approaches will still overfly the area.

 For Chidlow, Airservices has explored a number of potential noise improvements, with several proving not feasible. One proposal has progressed to a three month trial of changed procedures for departing aircraft. The results are yet to be formally published, although the ANO has been advised the trial has improved noise outcomes in Chidlow.

2.6 The remaining 39 complaints were carefully considered however were not reviewed. In these cases, they were referred directly to Airservices for management, related to matters that fell outside our charter, or the complainant did not provide any further information to enable the investigation to proceed.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 6

Airservices Annual Report 2013-14 170

2.7 We closed more complaints this financial year than in previous years, due to the finalisation of a number of long-standing complaints and the number that we were able to refer to Airservices to respond directly to the complainant.

Graph 2: ANO closed complaints by financial year

0

20

40

60

80

100

120

2010-11 2011-12 2012-13 2013-14

Number of complaints

Complaints not reviewed Complaints reviewed

2.8 Decisions to review complaints are firstly based on whether or not the complaint is within our charter. If not, we endeavour to direct the complainant to the appropriate agency or organisation for their concerns. Just two complaints received in the 12 month period were outside of our charter scope.

Graph 3: 2013-14 Complaints not reviewed 2.9 For complaints that are in scope, we cannot review a complaint when a complainant does not provide sufficient information as requested to enable an investigation of the issues. 34

3

2

0

5

10

15

20

25

30

35

40

Outside charter scope

Complainant did not provide further info

Referred to Airservices to respond directly

2.10 Additionally, we will refer the complaint back to Airservices to respond directly when:

 a complainant has not raised the specific issues with Airservices,

 a complainant has not allowed enough time for Airservices to respond, or

 we consider that Airservices is likely to be able to manage the complaint effectively.

Although there can be some significant work involved in the preliminary consideration of these complaints, we categorise them as “Not reviewed - referred to Airservices to respond directly”.

here can be some significant work involved in the preliminary consideration of these complaints, we categorise them as “Not reviewed - referred to Airservices to respond directly”.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 7

Airservices Annual Report 2013-14 171

2.11 Fourteen complaints remained open at the end of the financial year and will be carried forward. Attachment 1 summarises the year’s complaint statistics.

How long for complaints to be reviewed?

2.12 For the 2013-14 financial year, the average number of days from the complaint received date to complaint closed date was 96 days (compared with the 2012-13 average of 59 days).

2.13 The significant increase is a result of a number of long-standing complaints being closed in this period - the longest of which was a complaint first lodged with the ANO office in early November 2010. The following provides some discussion and analysis of the ‘days to closure’ data for this financial year. Please note that throughout this section we refer to days to closure, which includes weekends and public holidays.

Table 3: ANO complaints closed in 2013-14 by outcome category, with days to closure

Days to closure

Reviewed complaints:

Number of complaints Average Range

No possible change: explanation given 64 82 21-655

Change adopted by Airservices 5 687 519-1071

Change adopted by Airport operator 2 191 21-361

Change adopted by Operator 4 162 28-427

Complaints not reviewed:

Referred to Airservices to respond directly 34 30 21-59

Complainant did not provide further info 3 26 21-32

Outside Charter Scope 2 29 22-36

2.14 The table above shows the complaints closed in the period 2013-14 split by outcome category, within the two broad areas of complaints reviewed and complaints not reviewed. For each outcome category it shows both the average and the range of days to closure, meaning the number of days from the date the complaint was received to the date it was closed.

2.15 Complaints closed during the 2013-14 financial year include 21 of the 22 complaints that were open and carried forward from the 2012-13 financial year. Eleven of these had already been open for more than 120 days at the start of the financial year.

2.16 The ANO commits to responding to complaints within 21 days from acknowledgement of the complaint. Once a review is completed and a final response sent to the complainant, we keep the complaint file open for a further 21 days. This approach can be seen in the “range” data in the table above, which shows that the fewest number of days a complaint is open with the ANO is 21 days.

“The ANO commits to responding to complaints within 21 days from acknowledgement”

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 8

Airservices Annual Report 2013-14 172

2.17 Of the 64 complaints reviewed where no practical short to medium term change was identified (the “No change possible” category in the graph below), 70% were closed within 60 days. Despite this, and that all cases not reviewed were closed inside 60 days from receipt, the very long-standing complaints have led to the overall average time for closure exceeding 90 days.

Graph 4: Complaints reviewed by the ANO - percentage split by days to closure range

21‐28 days

21‐28 days

21‐28 days

29‐42 days

43‐60 days

61‐120 days

61‐120 days

>120 days

>120 days

>120 days >120 days

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

No change possible Change by Airservices Change by Airport Change by Operator

2.18 Where a potential noise improvement opportunity is identified this can often require a detailed process of consideration. For example, it may involve the conduct of a trial for a change in procedures or flight paths, potentially requiring many months of design, planning, consultation, implementation and review. The ANO kept a number of complaints open until we were satisfied that Airservices had a process underway to properly explore the opportunity. In some instances, such long-term investigations result in no change being possible after all. This explains some of the cases in the “No change possible” category that took greater than 120 days to closure. Not surprisingly, the cases where changes were implemented (the three “Change” columns in Graph 4) were most commonly after extended periods.

Why does change take so long?  Safety: Airservices and the aviation industry consider safety as the most important consideration. In this environment any change must be carefully considered and meticulously planned to assure safety at all times.

 Consultation: Airservices takes seriously its commitment to consult widely on changes. This includes with members of the community as well as with other aviation industry stakeholders. Such processes can take time.

 New procedures and training: For many changes there is a need for new procedures and training. Aeronautical publications run to a standard cycle. Training teams of shift workers can take time.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 9

Airservices Annual Report 2013-14 173

2.19 Another key factor is that, when opportunities were first identified, Airservices was not set-up to evaluate these opportunities and needed to establish new internal systems. With these processes and systems now well-established, including Airservices’ Strategic Noise Improvement Plan (see section 3.3), noise improvement opportunities are being prioritised and managed in a more effective and timely way.

Reducing contacts to Airservices

2.20 Last year we reported on the dramatic reduction in the number of contacts Airservices had received per complainant. We are pleased to report that Airservices’ average contacts per complainant rate has continued at less than four over each of the four quarters of the 2013-14 financial year. This result is particularly promising given the number of complainants making contact with Airservices in the 2013-14 financial year was almost 20% higher than in the previous year (5,419 complainants in 2013-14 compared with 4,622 in the previous financial year).

Graph 5: Airservices’ average contacts per complainant by quarter: 2012-13 to 2013-14

0

2

4

6

8

10

12

14

16

18

Jul-Sep 2012

Oct-Dec 2012

Jan-Mar 2013

Apr-Jun 2013

Jul-Sep 2013

Oct-Dec 2013

Jan-Mar 2014

Apr-Jun 2014

2.21 A low number of contacts per complainant is an indicator that complainants are receiving high quality first responses in a timely fashion. Even when a complainant is advised that no change is possible, when this is done well, and complainants’ expectations are met in terms of the timeliness of responses, there is usually little cause for multiple contacts on the same issue.

2.22 Some have suggested that lodging many contacts about an issue lends weight by demonstrating how strongly the complainant feels about the issue. Our view is that a single contact should suffice for a complaint to be taken seriously and given proper attention. Equally, once a complaint has been fully considered, and a thorough and reasonable response provided, there is no value to either the complainant or Airservices in continuing to correspond on the issue.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 10

Airservices Annual Report 2013-14 174

2.23 We see the benefits of this approach as reducing the potential for complainants wasting their own time lodging many contacts on the same issues. In addition, we would prefer not to see Airservices’ staff spending large amounts of time processing repeat contacts, but rather spending more of their resource effort on seeking better noise outcomes.

2.24 We will continue to work with Airservices to better manage those complainants that contact Airservices excessively on the same issue.

Community and industry engagement

2.25 ANO staff have attended community and aviation industry meetings across Australia during the past twelve months. Attending such meetings enables the ANO office to gain a first hand perspective of community and industry issues, monitor Airservices’ information presentation and consultation activities, and identify emerging issues. It also provides an opportunity to increase public awareness of the ANO role, our recent activities, and the opportunities we are pursuing to improve noise outcomes.

“By attending community and aviation industry meetings, the ANO can gain a first hand perspective of community and industry issues”

2.26 This year the ANO attended or was represented at 16 Airport Community Aviation Consultation Group (or equivalent) meetings. Additionally, the ANO and staff met with individuals and representatives of community groups, members of parliament and aircraft and airport operators. Further, we attended various industry meetings, including the major annual conferences of the Australian Airports Association (AAA), the Regional Aviation Association of Australia (RAAA), the Australian Mayoral Aviation Council (AMAC), and the combined AAA-Airservices Aircraft Noise Forum. The ANO also chaired the committee that reviewed and revised Australian Standard AS2021-2000 (Acoustics: Aircraft Noise Intrusion - Building Siting and Construction).

Professional training and development

2.27 To keep abreast of developments in the profession of complaint investigation and management, the ANO office attended the biennial conference of the Australian and New Zealand Ombudsman Association (ANZOA) and presented at the annual Society of Consumer Affairs Professionals (SOCAP) symposium. We also maintain an active role in the Government Aviation Complaint Handling Forum and the SOCAP Government working group.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 11

Airservices Annual Report 2013-14 175

Complaint analysis and management system

2.28 During 2013-14 we transitioned to our new ANO Complaints System (ANOCS). This was a smooth transition and seamless to our complainants. The new system has contributed to a dramatic reduction in the administrative workload in managing our complaints and has helped to streamline internal workflows and task management.

Screen-print of ANO Complaints System

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 12

Airservices Annual Report 2013-14 176

3 Achievements

Noise improvement opportunities

Can the planes climb further away? Mr H contacted the ANO to complain that the parachute aircraft always climbed over the beach near his home in Coffs Harbour, disturbing the peace with the constant droning. Mr H asked why the planes couldn’t climb further away where it didn’t affect residential areas. The ANO looked into the existing climb arrangements, reviewed the climb areas in relation to residential areas and proposed that Airservices investigate alternatives with the operator. This process took time to reach a conclusion, but the ANO continued to press for small changes if possible.

Eventually it was identified that the planes could continue past the residential beach areas to climb further north, meaning that the noise experienced at the beach was just a passing noise not a constant drone. In addition, with a newer aircraft recently acquired by the operator the flights could fly

further away from the shore over the sea and transit past more quickly, further reducing the noise impact on residences.

Mr H was delighted with the outcome, despite the delays and even though the changes were relatively minor in nature.

C A S E

S T U D Y

1

Thank  you  for  a  wonderful  job  done.  They  still  are  overhead  in  the drop but the only thing I hear  is the chutes opening. I’m glad for  everybody  involved,  and  their  businesses, that it can just take a 

few  changes  and  everyone’s  happy.  Thanks  again,  massive  improvement.

3.1 Investigations into noise improvement opportunities that stem from an ANO review are tracked in our quarterly reports with brief descriptions of the change opportunity and the current status. These reports are available on our website.

3.2 Attachment 2 summarises the noise improvement opportunities considered in the 2013-14 period. It should be noted that there is no direct correlation between the number of noise improvement opportunities explored and the number of complaints closed with a “Change adopted” outcome. This is due to a number of factors such as:  Several complaints can relate to the same issue and each will be closed

when a change is made. For example, the ANO had two complaints related to aircraft noise over Roleystone, which were addressed by Airservices’ trial of a modified flight path. This one noise improvement led to two complaints closed with a “Change adopted” outcome.

 Some noise improvement opportunities, despite detailed exploration of the potential, prove not to be feasible in the short to medium term. In these cases the complaint(s) will be closed with a “No change possible” outcome.

 Some complaints are specifically about information provision, complaint handling or consultation systems and processes. A change to improve in these areas will not change the noise outcome in a particular area. However, the complaint in this case would be closed with a “Change adopted” outcome.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 13

Airservices Annual Report 2013-14 177

3.3 During the previous financial year, Airservices established a Strategic Noise Improvement Plan through which it records noise improvement opportunities, manages priorities, and tracks progress of investigations underway. The ANO is keen for as much information about the opportunities under consideration and already considered to be made available to the public in as open and transparent a manner as is practical. We have been pleased to see the further development of this in Airservices’ quarterly Aircraft Noise Information Reports (available on the Airservices website, www.airservicesaustralia.com).

Flight paths can be changed Ms H contacted the ANO in November 2010, frustrated that no-one seemed prepared to answer her question of why can’t the planes fly further east away from residential areas?” Airservices had made changes to the flight routes around Perth Airport that came into effect in November 2008, including establishing a new instrument approach path that flew directly over Ms H’s suburb of Roleystone.

The ANO sought information from Airservices, and were advised that it was technically feasible for the flight path to be relocated. At the time Airservices did not have any systems or processes in place to consider changes proposed to improve noise outcomes.

The establishment of such systems took a long time and it wasn’t until August 2013 that the trial of a relocated flight path was finally implemented. Both Airservices and the ANO office learnt a lot through this extended process.

C A S E

S T U D Y

2

The  trial  of  the  modified  flight  path  over  Roleystone  has  now  been  operational for a week, and generally,  it has seemed like heaven compared to  the previous 4 years.

I  would  just  like  to  say  that,  in  my  opinion, none of this would have been  achieved  without  your  tireless  efforts  on our behalf, and I would like to thank  you most sincerely. I believe you have  done  a  tremendous  job  under  exceptionally difficult circumstances.

Case study review

3.4 A key achievement of 2013-14 was delivery of the Case Studies in Complaint Management review. In this review we considered a small sample of complaints that Airservices had handled and that had not been escalated by the complainant to the ANO. The objective of the review was to identify any lessons to be learnt, or opportunities for improvement in Airservices’ management of complaints.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 14

Airservices Annual Report 2013-14 178

3.5 In the report, submitted to the Board of Airservices in September 2013 and published in January 2014, we made six recommendations aimed at improving Airservices’ management of complaints across a range of issues. It seeks:  reform in complaint record management  better alignment of, and quality assurance in systems, processes and

practices  improved information provision and reporting based on complaint data. The Board of Airservices accepted all recommendation and Airservices since has closed three parts of two recommendations. Attachment 3 outlines the ANO’s assessment of action on each recommendation. The report is available on the ANO website: www.ano.gov.au.

Information provision

3.6 Where changes cannot be made, it is important that communities have access to relevant information so that they can manage the noise issues they are experiencing. This might be in the form of helpful information about how to reduce noise impacts in their home, what the noise situation is like in different areas for those considering a move, how and why aircraft fly as they do, why different runways are selected and, importantly, why a change that seems reasonable cannot be made.

3.7 In the 2013-14 financial year, the ANO did not make any formal

recommendations specifically about information provision, although the relationship with complaint handling is such that some of the recommendations made in the Case Studies review relate to information provision.

3.8 At the start of the financial year there were still three recommendations from the Assessment of Aircraft Noise Issues: Sydney, February 2012 that were not yet completed. Airservices has refreshed their Aircraft Noise Information Reports and continued to enhance the information available on their website about aircraft noise issues. This has resulted in two of the remaining

recommendations being closed in 2013-14.

Publications

3.9 During 2013-14 the ANO published the following, along with our quarterly reports and last year’s annual report (available on our website):  New on-line aviation resource - release  Case studies in complaint management - Airservices Australia - report

3.10 In addition to keeping our own website up-to-date, we have also contributed to the launching of two additional information resources:  www.aviationcomplaints.gov.au to help people find the right place to make a complaint about an aviation issue, including aircraft noise  www.aircraftnoise.com.au to provide information on the causes of aircraft

noise, how the industry is working together to manage it and what people can do to reduce its impact.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 15

Airservices Annual Report 2013-14 179

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 16

4 Financial Results

4.1 The ANO operates autonomously in managing its financial accountabilities. In line with the ANO Charter, the ANO independently determines how funds and resources are allocated, within the budget provided by Airservices.

4.2 In 2013-14, the total operating expenditure of the office was $635,377 against a budget of $707,110. Costs include all staff salaries and entitlements, travel, and administrative overhead costs. The increase in costs from last year have been across the board, including slight increases in travel and staff costs, and the additional costs for maintenance and hosting of the new complaints system.

Graph 6: ANO budget and actual expenditure 2011-12 to 2013-14

Budget $671,294

Budget $692,541

Budget $707,110

Actuals $550,812

Actuals $591,220

Actuals $635,377

$450,000

$500,000

$550,000

$600,000

$650,000

$700,000

$750,000

2011-12 2012-13 2013-14

Airservices Annual Report 2013-14 180

Attachment 1 ANO complaint statistics

The following summarises the ANO complaint statistics for 2013-14.

Complaints carried forward from 2012-13 22

Complaints received 2013-14 106

Total complaints 2013-14 128

Closed complaints - reviewed

No change possible - explanation provided 64

Change adopted by Airservices Australia 5

Change adopted by Airport operator 2

Change adopted by operator 4

Total complaints reviewed 75

Closed complaints - not reviewed

Referred to Airservices to respond directly 34

Complainant did not provide further information 3

Outside Charter scope 2

Total complaints not reviewed 39

Complaints closed during 2013-14 114

Complaints carried forward to 2014-15 14

It should be noted that there is no direct correlation between the number of noise improvement opportunities explored and the number of complaints closed with a “Change adopted” outcome. This is due to a number of factors as discussed in section 3.2 of this report.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 17

Airservices Annual Report 2013-14 181

Attachment 2 Noise improvement opportunities

One of the core focuses of our investigations into complaints is to look for the potential to improve noise outcomes. There is currently one potential noise opportunity under investigation that stems directly from complaints to the ANO, as shown in the table below.

Noise improvement opportunities identified during 2013-14, still under consideration

Complaint received by ANO Description of initiative Current status

May 2014 Gold Coast: flights over NSW residences during daylight saving hours

The ANO has asked Airservices to look into whether a better noise outcome can be achieved for NSW residents affected by flights departing Gold Coast Airport prior to 11pm QLD time (that is, prior to the curfew commencing), when the two states are on different zones. The difference means aircraft fly over NSW homes after 11pm NSW time. Airservices has added this opportunity to their Strategic Noise Improvement Plan and has committed to considering it further.

The following table summarises the noise improvement opportunities stemming from complaints received by the ANO that were finalised during the 2013-14 financial year. Some changes have completed, while others are ongoing and will be monitored by the ANO.

Noise improvement opportunities finalised during 2013-14

Complaint received by ANO Description of initiative Current status

Nov 2010 Perth - Can the flight path over Roleystone be relocated to an area that does not affect so many residences?

In Aug 2013, Airservices commenced a 12 month trial of an alternative flight path, following which Airservices will make a decision about permanent implementation.

Feb 2011 Canberra - Can parachute operations use the high noise corridor when possible to minimise overflying residential areas?

Airservices agreed to implement this change, and amended procedures accordingly. A subsequent ANO review identified that many aircraft were not complying with the new arrangements. Airservices advised that further internal documentation amendments were required to enact the change fully and that these would be completed in Aug 2013. The relevant documentation was completed in late Sep 2013. Airservices has provided data demonstrating an improvement in the level of compliance with the new arrangements in place, and advised that they will continue monitoring performance.

Apr 2012 Brisbane - Can some northbound and westbound departures from runway 19 depart on additional tracks to reduce the concentration of noise over current areas?

Airservices examined the option of a noise sharing approach, where a single departure track is replaced with multiple tracks to enhance noise sharing. Airservices identified that such an arrangement has not previously been trialled in Australia, however, Airservices intends to consider this approach in the future. Trials of this approach are not likely to be held in Brisbane initially due to the operational constraints of the airport. This type of trial is unlikely to commence elsewhere before 2015.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 18

Airservices Annual Report 2013-14 182

Complaint received by ANO Description of initiative Current status

May 2012 Perth - What is the plan to address the numerous issues and change requests associated with Chidlow?

Airservices has investigated several opportunities, including one that has led to a trial of a changed departure procedure. The trial ended in March 2014 and following analysis of the results Airservices has proposed to permanently adopt the changed departure procedure. Airservices is currently pursuing the appropriate change process, including environmental assessment and consultation.

Dec 2012 Coffs Harbour - Can parachute aircraft climb over areas that do not affect residential areas as much as the current climb locations do?

The ANO requested Airservices to consider better alternative areas for parachute climb, and if none possible, to explain why they must climb where they do. Airservices delayed consideration of this until the radar service was available again. The radar was commissioned in Aug 2013. Airservices explored opportunities for the parachute aircraft to climb further from residential areas, following which the complainant has reported a discernible improvement (see Case Study 1 in this report).

Mar 2013 Jandakot - Can training flights avoid flying over Baldivis and surrounding residential areas?

The ANO requested Airservices to explore with the local community forum and operators any options to reduce the flights over Baldivis and surrounding residential areas. With assistance from the ANO, Airservices has undertaken discussions with relevant stakeholders and is helping update the fly neighbourly agreement to specify residential areas to be avoided where possible, and minimum altitudes where over-flight cannot be avoided. The updated agreement is yet to be ratified by all parties and the ANO will keep monitoring until it is.

Jun 2013 Melbourne - Can changes be made to reduce the impacts of helicopters hovering at low levels during noise sensitive times?

Following several complaints to the ANO about this issue, Airservices investigated if any changes could be made. Operators have implemented changes that should see an improvement in the noise outcome.

Oct 2013 to

Mar 2014

Fly Neighbourly Agreements - Tyagarah, Traralgon, Tyabb

The ANO is monitoring Airservices’ management of noise issues in these locations, stemming from a number of complaints. Airservices has agreed to continue offering their assistance to the relevant local councils to establish fly neighbourly agreements with operators and to keep residents notified of progress.

It should be noted that there is no direct correlation between the number of noise improvement opportunities explored and the number of complaints closed with a “Change adopted” outcome. This is due to a number of factors as discussed in section 3.2 of this report.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 19

Airservices Annual Report 2013-14 183

Attachment 3 ANO assessment of action on recommendations

During the 2013-14 financial year the ANO closed two of the remaining recommendations from the Assessment of Aircraft Noise Issues: Sydney, February 2012, and three parts of two recommendations from the Case Studies in Complaint Management: January 2014 review, as per the following tables.

Sydney Review

Recommendations

ANO assessment of Airservices’ response

Sydney Issues Recommendation 2:

Airservices should improve the clarity of maps produced in reports used to convey aircraft noise information. Closed.

Sydney Issues Recommendation 3:

Airservices should provide more textual and qualitative assessment of aircraft noise in reporting. Closed.

Sydney Issues Recommendation 7:

Airservices should explore the provision of a more timely (as well as historical) method for complainants to understand why a particular Runway Mode was in use, or why a preferred Runway Mode (noise sharing) was not able to be used at that time.

The ANO has met with Airservices’ representatives about this and notes that action is underway.

Case Studies Review

Recommendations

ANO assessment of Airservices’ response

Case Studies Recommendation 1:

Airservices should:

a. amend its contact acknowledgement and reference numbering system. Complainants should not be notified of a new reference number for each and every contact made. Complainants advised that responses will not be made on a particular issue, should not be responded to on that issue. Airservices should clarify what the reference number provided to complainants actually means

b. acknowledge the lack of timeliness, apologise and provide a brief explanation for the delay where service delivery standards are not met

c. be mindful of balancing the resource burden with the value to the complainant when considering the provision of ongoing information, particularly if similar information has already been provided. Procedures or guidelines should be established to assist staff with making these decisions.

Airservices action plan finalised.

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 20

Airservices Annual Report 2013-14 184

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 21

Case Studies Review

Recommendations

ANO assessment of Airservices’ response

Case Studies Recommendation 2:

Airservices should:

a. as far as practicable, assign complaints to an airport, rather than a generic category

b. provide reports to airports that provide sufficient detail to help identify meaningful issues and avenues for potential improvements

c. be clear to complainants about what is, and is not, provided to airports about their complaint

d. ensure that information provided to complainants is accurate and does not potentially misrepresent the situation, or contradict other information published by Airservices on their website

e. consider opportunities to take the lead in consulting various stakeholders as part of the process to identify noise improvement outcomes, rather than refer complainants to those stakeholders with the expectation that the complainant will manage that consultation process.

Parts 2a and 2d completed.

The ANO is aware that action is underway by Airservices to address the remaining parts of this recommendation.

Case Studies Recommendation 3:

Airservices should:

a. develop and implement processes to ensure all appropriate information about complainants is passed to other authorities when undertaking a transfer of a complaint

b. clarify when a response will be provided. Information linked to the complaint form should explain that a response will be provided where specifically requested, where a question has been asked or where a response can provide useful and relevant information. The exception to this rule should be when a complainant has explicitly requested no response or when a complainant has been advised previously that the particular issue has been dealt with to finality.

Airservices action plan finalised.

Case Studies Recommendation 4:

Airservices should:

a. store all correspondence relating to a complaint in a single repository, accessible to all complaint handlers and, to the extent practicable, accessible through the relevant NCMS database record

b. ensure complaint records are managed in compliance with the National Archives Act 1983 as well as relevant Australian Standards and Australian Government recommended practices.

c. standardise the salutations, introductory text and sign-off styles used for correspondence with complaints

d. carefully consider the expectations created by encouraging further contact and only do so when appropriate

e. use other means to contact clients whenever details have been provided and the primary means of contact fails.

Part 4a completed.

The ANO is aware that action is underway by Airservices to address the remaining parts of this recommendation.

Case Studies Recommendation 5:

Airservices should routinely analyse complaints to identify common issues not yet addressed by the current suite of fact sheets and develop fact sheets or standard responses for residents raising the same issues.

The ANO is aware that action is underway by Airservices to address this recommendation.

Airservices Annual Report 2013-14 185

Aircraft Noise Ombudsman 2013-2014 Annual Report Page 22

Case Studies Review

Recommendations

ANO assessment of Airservices’ response

Case Studies Recommendation 6:

Airservices should:

a. establish clear protocols for when residents are to be referred directly to an external authority

b. review its Guide and Protocols documents and current practices to ensure that documented procedures for managing unreasonable complainant behaviour are followed in practice, including consistent and timely application of management plans for persistent complainants, and ensuring that it is cases of unreasonable

behaviour that are subject to ‘formal restriction’ not complainants

c. check compliance with its Guide and Protocols in an internal audit/review process for complaint management.

Airservices action plan finalised.

Airservices Annual Report 2013-14 186

Glossary AAA Australian Airports Association

AC-MAC Civil-Military Air Traffic Management Committee

ACCC Australian Competition and Consumer Commission

ACE Airport Capacity Enhancement

AFAC Australasian Fire and Emergency Service Authorities Council

AIPA Australian and International Pilots Association

AMSA Australian Maritime Safety Authority

ANO Aircraft Noise Ombudsman

ANSP Air navigation services provider

AOPA Aircraft Owners & Pilots Association of Australia

ARFF Aviation Rescue Fire Fighting

ASIC Aviation Security Identification Card

ASPIRE Asia and South Pacific Initiative to Reduce Emissions

ASTRA Australian Strategic Air Traffic Management Group

ATS Air Traffic Service

ATSB Australian Transport Safety Bureau

CACG Community Aviation Consultation Group

CANSO Civil Air Navigation Services Organisation

CASA Civil Aviation Safety Authority

FAA Federal Aviation Administration

GAAP General Aviation Aerodrome Procedures

IAFPA International Aviation Fire Protection Association

IATA International Airline Transport Association

ICAO International Civil Aviation Organization

ICT Information communication technology

IFR Instrument flight rules

IMS Integrated management system

INSPIRE Indian Ocean Strategic Partnership to Reduce Emissions

LoS Loss of separation

MET Mandatory enterprise training

NCIS Noise Complaints and Information Services

NOTAMs Notices to Airmen

ODAS Operational Data and Analysis Suite

SMS Safety management system

UPR User Preferred Route

Airservices Annual Report 2013-14 187

Compliance index

Adverse effect of meeting non-commercial commitments imposed on Airservices 21

Audit and Risk Committee 19, 114, 118

Certification 1

Clear links between outcomes, strategies for achieving those outcomes

and the principal outputs 26-29, 31-53

Commonwealth Disability Strategy 137-146

Directors 113-118

Ecologically sustainable development and environmental performance 24, 49-50, 152-153

Affects of ministerial directions and notification of general policies of the government 24-25

Efficiency and effectiveness of the operations in producing principal outputs 26-29, 46-53

Enabling legislation, functions and objectives 17

Exemptions to requirements for financial statements None

Factors, events or trends influencing performance 2-6, 24-25, 26-29

Financial statements of Schedule 1 of the CAC Act 54-111

Financial statements certification: a statement signed by the directors 57

Financial statements certification: Auditor-General’s report 55-56

Fraud risk assessment and control 21, 132

Freedom of information 133-134

Indemnities and insurance premiums for officers 117

Judicial decisions and decisions of administrative tribunals that have had,

or may have, a significant impact on operations Nil

Location of major activities and facilities 15-17

Ministerial directions on performance of functions, exercise of powers 24-25, 119-124

Airservices Annual Report 2013-14 188

Occupation health and safety 36-37, 130-132

Work Health and Safety 36-37, 130-132

Operational and financial results during the year, including principal

outputs, major investing activities, key financial and non-financial activities 23-25, 55-110

Organisational structure 15-20

Reports on the operations of the authority by the Auditor-General,

a parliamentary committee or the Commonwealth Ombudsman 134

Responsible minister(s) 17-18

Review of performance 26-29, 31-53

Significant changes in state of affairs or principal activities during the financial year 25

Significant developments since the end of the financial year 25

Significant events per section 15 of the CAC Act 25

Statement of expectations 119-120

Statement of intent 125-129

Airservices Annual Report 2013-14 189

Index

A

Aboriginal Australians, see Indigenous Australians

accountability, see management and accountability

Adelaide Airport, 37, 53

air traffic control tower, 52

aviation rescue fire fighting service, 48, 132

noise complaints, 161

Adelaide Basin airspace, 38

ADS-B, 34, 35, 52

age of employees, 145, 149

mature-aged, 140, 145, 150

Air Navigation Act 1920, 17

Air Services Act 1995, 15, 17, 18, 21

air traffic control services, 15

documents held by Airservices, 136

towers, 52, 132; attributed Loss of Separation rate, 26

see also airspace

air traffic controllers, 44, 148, 149

enterprise agreement, 43

international benchmarking, 36, 41

recruitment and training, 41, 42, 149, 151

Air Traffic Flow Management project, 48

Air Traffic Services and Airline Safety Forum, 34

aircraft ADS-B compliancy, 34

aircraft emissions, 11, 49, 50, 152

aircraft holding, 47, 48

key performance indicator, 28

aircraft in critical proximity, 26

aircraft noise, 34, 49, 152, 162-85

key performance indicators, 28, 29

ministerial direction, 24

Noise Complaints and Information Service, 24, 28, 161

Aircraft Noise Management Roadmap, 24

Aircraft Noise Management Strategy, 24, 34, 49

Aircraft Noise Ombudsman, 49, 162-85

requests for information from, 134

airline liaison representative course, 32

AirNav Indonesia, 35

Airport Capacity Enhancement (ACE) programme, 47, 48

Airport Noise and Operations Monitoring System, 49

airport planning, 51

Airservices Commitment to Aircraft Noise Management, 24, 49

Airservices Corporate Enterprise Agreement, 43

Airservices Environment Action Plan Update 2013-14, 153

Airservices Workforce Plan 2013- 2020, 43-4, 140, 147-50

Airservices Workforce Planning Job Family Framework, 43, 147

airspace, 4, 15, 36, 38

documents held by Airservices, 135-6

see also air traffic control services

Alan Woods Building, 38, 50

Albury Airport, 31

Alice Springs Airport, 25, 31

alumni network, 140

annual reporting requirements, 17-18

Approach Services for Regional Airports project, 52

Arabian Sea Indian Ocean User Preferred Route, 11

asbestos awareness package, 130

ASIC programme, 37, 132

Assessment of Aircraft Noise Issues: Sydney, February 2012, 166, 183

assets, see infrastructure

Attorney-General’s Department, 132

Audit and Risk Committee, 19-20, 114, 118

Australian Airports Association, 34, 49

Airservices Annual Report 2013-14 190

Australian Civil-Military Air Traffic Management Committee, 44-5

Australian flight information region, 15

Australian International Pilots Association, 32

Australian Runway Safety Group, 31-2

Australian Standards, 166

Australian Transport Safety Bureau, 17

Automatic Dependent Surveillance Broadcast (ADS-B) technology, 34, 35, 52

availability of services performance indicator, 28

average days taken to review complaints, 171-3

aviation history, 153

aviation industry, see industry

aviation infrastructure, see infrastructure

aviation rescue fire fighting services (ARFF), 10-11, 15, 17

community events, 32

documents held by Airservices, 136

driver training, 42

environmental management, 152

Hot Fire Training Ground facility, 42, 50

operational preparedness performance indicator, 28

recruitment and training, 41, 42, 149, 151; leadership development, 44, 150

regional airports, 46-8; workforce mobility, 149

upgraded categories, 48

work health and safety, 132; lost time due to injury, 37

Aviation Security Identification Card programme, 37, 132

Aviation Transport Security Act 2004, 132

Aviation Transport Security Regulations 2005, 132

AvSuper Pty Ltd, 136, 140

award modernisation application, 43

awards and recognition, 36, 41

employees, 44

B

Ballina, 48

biodiversity, 153

Board, 17-18, 19-20, 21, 25, 113-18

Board committees, 19-20

Chairs, 113-15

meetings and members’ attendance, 118

Bordertown, 52

Brisbane Airport, 4, 37, 47, 48, 52, 53

noise complaints, 161, 181

runway efficiency and airborne holding times, 47

Brisbane Airport Corporation, 34

Brisbane Basin airspace, 38, 52

Brisbane-Lord Howe Island air traffic, 52

Broome Airport, 31

Bruel & Kjaer, 49

bullying, 43

business groups, 18

business jets, 34

Business Systems team, 51

C

Cairns Airport, 37, 53, 161

Cairns-Melbourne route, 33

CALD background, employees from, 140, 142, 143, 144

Canberra Airport, 50, 52, 53

noise complaints, 161, 181

CANSO, 31

capital works, see infrastructure

carbon dioxide emissions, 11, 49

career development performance indicator, 27

CASA, 15, 34

Case Studies in Complaint Management Review, 165, 177-8, 183-5

Cecil Park, 52

Chair of Board, 19, 20, 113

Airservices Annual Report 2013-14 191

attendance at Board and Board committee meetings, 118

report by, 2-3

Chairman’s Award for Professional Excellence, 44

Chairs of Board committees, 113-15

Chidlow, 169, 182

Chief Executive Officer, 19, 20, 116

attendance at Board and Board committee meetings, 118

equity and diversity role, 137, 138

report by, 4-6

risk management role, 21

Chief Executive Women, 139

CIRRIS, 38, 51, 130, 131

Civil Air Navigation Services Organisation (CANSO), 31

Civil Aviation Safety Authority (CASA), 15, 34

Civil Aviation Safety Regulations, 15

civil-military harmonisation, see OneSKY Australia

classification of permanent staff, 143, 144, 146

CO2 emissions, 11, 49 Cocos Island Doppler VHFOmni Directional Range radar, 52

Code of Conduct, 20, 43

Code of Conduct Investigation Procedure, 43

Code of Conduct Management Instruction, 20, 43

Coffs Harbour Airport, 31, 48

aircraft noise, 176, 182

Comcare, 131

Commitment to Aircraft Noise Management, 24, 49

Committee of the United States National Academy of Sciences, 36

Commonwealth Authorities and Companies Act 1997, 17, 18, 21

Commonwealth Ombudsman, 134

Commonwealth Superannuation Scheme, 136

Community Aviation Consultation Groups, 34, 49, 134, 158

Aircraft Noise Ombudsman attendance, 174

key performance indicator, 29

community events, aviation rescue fire fighting service at, 32

complaints about aircraft noise, 49, 161, 164-85

key performance indicators, 28, 29

ministerial direction, 24

complaints by employees, 142

conferences and other forums, 32, 34, 49

Aircraft Noise Ombudsman attendance, 174

international, 35, 36

consultative arrangements, 32-4, 134-5, 158-9

aircraft noise, 49; Aircraft Noise Ombudsman, 174

airspace design, 38

key performance indicator, 29

Services Charter, 42

Sydney Airport, 24, 48

consultative arrangements with employees and unions, 43, 137

work health and safety, 36, 130

contacts received by Airservices per noise complainant, 173-4

Continuous Descent Operations reporting, 49

contracts, see procurement management

control towers, 52, 132

attributed Loss of Separation rate, 26

core operational and business excellence, 28-9, 46-53

Corporate and Industry Affairs group, 18, 32

Corporate Enterprise Agreement, 43

corporate governance, 19-21, 113-29

Corporate Induction Program, 141

Corporate Integrated Reporting and Risk Information System (CIRRIS), 38, 51, 130

corporate overview, 15-21

Corporate Plan, 21

key performance indicators against, 26-9

corporate strategy, 21

Airservices Annual Report 2013-14 192

critical infrastructure, 132

critical proximity, aircraft in, 26

CSS, 136

cultural awareness training, 141

culturally and linguistically diverse backgrounds, employees from, 140, 142, 143, 144

D

Darwin, 38

days taken to review complaints, 171-3

decommission of navigation aids, 140

delays, 47

key performance indicator for ATS attributable, 28

Demand and Capacity Forum, 34

Department of Defence, 41, 44-5

see also OneSKY Australia

Deputy Chair, 19, 113, 116

attendance at Board and Board committee meetings, 118

disability, employees with, 140, 142, 143, 144

diversity, see equity and diversity

Diversity Council, 43, 138, 139

Diversity Strategy, 138-9, 140, 141

dividends paid, 23

divisions, 18

documents held by Airservices, 135-6

driver training, 42

E

East Timor (Timor-Leste), 36

ecologically sustainable development, see environment

emergency calls responded to by firefighters, 10

emergency response driver training, 42

emergency services mutual aid requests to firefighters, 10

Emirates, 49

emissions, 153

aircraft, 11, 49, 50, 152

employee costs, 23

employee initiated separation performance indicator, 27

employee mobility, 149, 150

employee relations, 43

employee surveys, 11, 138

key performance indicator, 27

employee training, 41-2, 141, 150

environmental issues, 153

key performance indicators, 28

women, 139

work health and safety, 37-8, 130

see also Learning Academy

Employee Value Proposition, 151

employees, 11-12, 39-44, 137-51

documents held by Airservices, 135

ethical standards, 20, 43; enquiries and disclosures received via Ethics Hotline, 142

key performance indicators, 27-8

superannuation arrangements, 136, 140

see also air traffic controllers; work health and safety

en route Loss of Separation ratio, 26

En Route Radar Replacement Project, 52

energy use, 50

engineering trainees, 42

enquiries received via Ethics Hotline, 142

enterprise agreements, 43

environment, 11, 17, 49-50, 152-3

documents held by Airservices, 135

ministerial direction, 24-5

waste management, 53

see also aircraft noise

Environment business group, 18

Environment Committee, 20, 114, 118

Environment Strategy 2011-2016, 153

Airservices Annual Report 2013-14 193

environmental impact assessments, 152, 153

environmental management system, 153

Equal Employment Opportunity (Commonwealth Authorities) Act 1987, 137-9

equity and diversity, 137-46

key performance indicator, 27

ethical standards, 20, 43

enquiries and disclosures received via Ethics Hotline, 142

Ethics and Fraud Committee, 20, 43

Eurocat simulator, 42

Executive Committee, 19, 137

Executive Diversity Council, 43, 138

Executive General Managers, 18, 19, 21

expenses, see finance

F

Fair Work Commission, 43

fairness, see equity and diversity

faith rooms, 140

female employees, see women employees

finance, 23, 55-111

Aircraft Noise Ombudsman, 179

asset base valuation, 16

documents held by Airservices, 135

liability insurance policy, 117

sponsorship investments, 11

superannuation arrangements, 136, 140

workers compensation premium, 131

Finance and Corporate group, 42

Finance Minister’s Orders, 18

Financial Management and Accountability Act 1997, 25

fire fighting services, see aviation rescue fire fighting services

first aid calls responded to by firefighters, 10

flexible working arrangements, 149

Flextracks, 49

flight information region, 15

flight plan safety alert, 38

flight training scholarships, 11

flights, 11

using Flextracks, 49

fluorosurfactants, 152

fly neighbourly agreements, 182

forums, see conferences and other forums

fraud control, 43, 132

freedom of information, 133-4

fuel savings, 49

functions, see role and responsibilities

G

Gellibrand Hill Radar, 153

gender of employees, see women employees

General Managers, 19, 21

Giles, 52

Gladstone, 48, 149

Gold Coast Airport, 50, 53, 153

noise complaints, 161, 181

governance, 19-21, 113-18

graduate recruitment cycle, 151

Greenfleet, 153

greenhouse gas emissions, see emissions

H

Hamilton Island Airport, 25, 31, 46

hazardous materials management, 53

Hazelwood coal mine fire, 10

health and safety, see safety; work health and safety

heritage values, 153

high performing organisation, 27-8, 39-45

Hobart Airport, 25

Hot Fire Training Ground facility, 42, 50

Airservices Annual Report 2013-14 194

Human Resource Information System equity and diversity data, 138

human resources, see employees

I

ICAO, 15, 31, 36

IHS Jane’s Award, 36

income, see finance

indemnities and insurance, 117

Indian Ocean, 35, 36

Indigenous Australians, 139-40

Indigenous employees, 139-40, 142, 143-4

employment applications, 141

Reconciliation Action Plan 2012- 2016, 43, 138, 139

Indonesia, 35

induction program, 130, 141

industry, 31-2, 34-5, 48

Aircraft Noise Ombudsman involvement, 174

rebates, 23

information communication technology, 51

air traffic control towers, 52

aircraft noise complaints, ANO, 175

aircraft noise modelling, 49

Corporate Integrated Reporting and Risk Information System (CIRRIS), 38, 51, 130

Integrated Management System (IMS), 42

Metron-Harmony ground delay system, 47, 48, 52

security, 38, 51

skills framework, 43, 148

SmartPath, 53

WebTrak, 49

Information Communication Technology group, 18

information security, 37, 38, 50

infrastructure, 52-3, 132

capital investment, 23

key performance indicator, 28

valuation, 16

see also vehicle fleet

injuries, see safety

INSPIRE, 49

Instrument Flight Rules aircraft, 34

instrument landing systems, 52, 53

insurance and indemnities, 117

Integrated Management System (IMS), 42

International Civil Aviation Organisation (ICAO), 15, 31, 36

international cooperation, 155

emission reduction initiatives, 152

safety, 35-6

International Day of the Air Traffic Controller, 44

International Firefighters’ Day, 44

J

Jakarta, 35

Jandakot Airport, 182

job classification of permanent staff, 143, 144, 146

Job Family Framework, 43, 147

K

Karratha Airport, 31

key performance indicators, 26-9

L

Launceston Airport, 25, 48

leadership development, 44, 141, 150

women, 139

Learning Academy, 18, 19, 41, 42, 148, 149

Hot Fire Training Ground facility, 42, 50

provisional improvement notice, 132

see also employee training

legislation, 15, 17-18, 20, 21, 51

equity and diversity, 137-9

Airservices Annual Report 2013-14 195

letter of transmittal, 1

liability insurance policy, 117

location of permanent staff, 144

Lord Howe Island, 52

Loss of Separation occurrences, 2, 33

key performance indicators, 26

lost time due to injury, 26, 37, 131

M

Mackay Airport, 25, 31, 48, 52

Makassar, 35

Malaysia Airline flight MH370, 2

male employees, 144

management and accountability, 23-9, 113-60

corporate governance, 19-21, 113-29

documents held by Airservices, 135

see also employees; finance; legislation

Management Essentials leadership programs, 141

management roles, women in, 143

management training, see leadership development

Mansfield, 52

mature-aged workers, 140, 145, 150

maximising safety performance, see safety

Melbourne Airport, 37, 48, 52, 53

noise complaints, 161, 182

Melbourne-Cairns route, 33

Melbourne Learning Academy, 132

Melbourne-Sydney flight corridor, 4

men employees, 144

mentoring programmes, 149

meteorological decision-making, 34, 48

Metron-Harmony ground delay system, 47, 48, 52

military cooperation, 44-5

see also OneSKY Australia

Minister, 17-18, 19

Statement of Expectations, 21, 119-24

ministerial directions, 24-5

radar approach services, 24, 25, 31

mission, 9

motor vehicles, see vehicle fleet

Mount Bobbara, 52

Mount Hardgrave, 52

N

National Consultative Council, 137

National Day of Safety, 37

National Health and Safety Committee, 130

National Tower project, 52

Nauru, 36

Navigation Aids Rationalisation Project, 52, 140

Newman, 48, 149

noise, see aircraft noise

Noise Complaints and Information Service (NCIS), 24, 161

key performance indicator, 28

Noise Forum, 34

non-commercial commitments, 21

O

occupational health and safety, see work health and safety

Office of Transport Security, 132

Ombudsman, 134

Aircraft Noise, 49, 162-85; requests for information from, 134

OneSKY Australia, 45, 46

planning to support, 53, 147; ‘Our people, our future’ culture programme, 40

operating profit after tax, 23

Operation Skysafe, 33

operational and business excellence, 28-9, 46-53

Operational Data and Analysis Suite (ODAS), 38

operational results, 23, 26-9

organisation and structure, 9-10, 15-21

Airservices Annual Report 2013-14 196

see also employees

organisational performance, 27-8, 39-45

‘Our people, our future’ culture programme, 40

P

Pacific region, 35-6

paper usage, 50

Papua New Guinea, 35

part-time employees, 145

People and Culture business group, 42, 137

people management, see employees

performance indicators, 26-9

performance report, 31-53

permanent staff, see employees

Perth Airport, 37, 48, 52, 132

airline liaison representative course, 32

noise complaints, 161; response, 49, 169, 177, 182

pilot training scholarships, 11

plans and planning, 21

airports, 51

environmental management, 153; aircraft noise, 177

property management, 53

Sydney Airport, 24, 48

workforce, 43-4, 140, 147-51; Diversity Strategy, 138-9, 140, 141

Point Lookout, 52

policies and practices, review of, 43, 138

Port Hedland, 46

predictive tools and frameworks, 38

Pricing Consultative Committee, 42

printing, 50

privacy, 133

procurement management, 48-9, 50-1

OneSKY Australia tender, 46

Projects and Engineering group, 18, 42, 149, 150

property management, 53

protective security, 132

provisional improvement notices, 132

Public Governance Performance and Accountability Act 2013, 25, 51

Public Interest Disclosure Act 2013, 20

pulse survey of employee engagement, 11, 138

purchasing, see procurement management

R

RAAF Base Richmond, 45

radar and radar services, 37, 52-3

Gellibrand Hill, 153

ministerial direction, 24, 25, 31

RAPPS, 25

rebates to industry, 23

Reconciliation Action Plan 2012-2016, 43, 138

recruitment, 41, 149-51

equity and diversity groups, 138, 139-41

induction program, 130, 141

recycled water, 50

Regional Approach Services, 25

Registered Training Organisation, 41

religious practices, employees wishing to observe, 140

remote station staffing, 149

Remote Tower Technology Project, 52

Remuneration and Human Resources Committee, 20, 115, 118

reporting requirements, 17-18

Corporate Plan, 21

equity and diversity, 137-9

rescue services, see aviation rescue fire fighting services

resilience, 132

retirements and retired workforce, 140, 150

return on average equity, 23

revenue, see finance

Richmond RAAF Base, 45

Airservices Annual Report 2013-14 197

risk management, 21, 38

Riverina Institute of TAFE, 42

Rockhampton Airport, 25, 31, 52

role and responsibilities, 9, 15-18

Board and Board committees, 19-20

Ethics and Fraud Committee, 20

Executive Diversity Council, 138

Roleystone, 169, 177

Round Mountain, 52

Runway Safety Group, 31-2

runways, 31-2

key performance indicators, 26, 28

measuring equipment, 52

S

Safe and Well strategy, 36-7, 130

safety (maximising safety performance), 2, 10-11, 31-8, 130-2

Corporate Integrated Reporting and Risk Information System (CIRRIS), 38, 51, 130, 131

documents held by Airservices, 136

key performance indicators, 26-7

see also aviation rescue fire fighting services; work health and safety

Safety Assist Visits, 130-1

Safety Committee, 20, 113, 118

Safety, Environment and Assurance business group, 18, 42

Safety Management System maturity benchmark, 27

St Florian award, 44

satisfaction of stakeholders, 29

scholarships, 11

secondments, 149

section 155 notices, 131

security, 37, 38, 132

separation of employees performance indicator, 27

service availability, 28

Services Charter, 42

short tenure employees, 150

significant changes, 25

skills development, see training

Skills Framework for the Information Age, 43, 148

Skysafe taskforce, 33

SmartPath, 53

Solomon Islands, 36

South West Pacific Safety Forum, 35

sponsorships, 11

Australian International Pilots Association, 32

staff, see employees

stakeholders, 17, 32, 34-5, 154-60

satisfaction, 29

see also consultative arrangements; industry

Standards Australia, 166

state and territory emergency services mutual aid requests, 10

Statement of Expectations, 21, 119-24

Statement of Intent, 21, 125-9

statistics about employees, collection of, 138

‘Step up to management’ courses, 44

strategic direction, 21, 119-29

Strategic Noise Improvement Plan, 177

strategic themes, 21, 31-53

key performance indicators of achievements, 26-9

structure, see organisation and structure

succession management performance indicator, 27

succession planning, 150

Sunshine Coast Airport, 25, 31

Super Hornet communications, 45

superannuation, 136, 140

Supplier Relationship Management programme, 51

Sydney Airport, 4, 37, 47, 48, 52, 53

Long Term Operating Plan, 24

Airservices Annual Report 2013-14 198

noise complaints, 161; response, 183

SmartPath, 53

Sydney Airport Air Traffic Management Strategic Planning Group, 48

Sydney Airport Consultative Forum, 24

Sydney basin, 52, 149

Sydney-Lord Howe Island air traffic, 52

Sydney-Melbourne flight corridor, 4

T

Tamworth Airport, 31

technical trainee course, 42

telecommunication networks, 36

tenders, see procurement management

terminal area Loss of Separation rate, 26

terminal arrival speeds, Sydney, 48

time taken to review complaints, 171-3

Timor-Leste, 36

Torres Strait Islanders, see Indigenous Australians

tower services, 52, 132

attributed Loss of Separation rate, 26

Townsville Airport, 44, 45

trade unions, consultation with, 43, 137

training, 34-5

airline liaison representative course, 32

flight training scholarships, 11

international, 35

see also employee training

Transport Logistics Industry Skills Council, 41

Traralgon, 182

Tyagarah, 182

U

Ukraine, 2

ultra-large fire rescue vehicles, 10

UniFLOW Follow Me printing solution, 50

unions, consultation with, 43, 137

United States Federal Aviation Administration, 49

United States National Academy of Sciences, 36

Upper Airspace East air traffic control sector, 38

V

values, 10

heritage, 153

Vanuatu, 36

vehicle fleet, 153

driver training, 42

ultra-large fire rescue vehicles, 10

Victorian Training Awards, 41

vision, 9

visual management system, 148

W

waste management, 53

water use, 50

Waypoint, 49

website, 34

on aircraft noise, 49

Aircraft Noise Ombudsman, 178

staff health portal, 37

WebTrak, 49

West Beach, 19

women employees, 139, 143, 144

employment applications, 141

Gender Diversity Action Plan, 138, 139

Women in Airservices forums, 139

Women’s Leadership Program, 139

work health and safety, 36-8, 130-2

Safe and Well strategy, 36-7, 130

Work Health and Safety Regulations 2011, 131

work life balance, 145

workers compensation premium, 131

workforce, see employees

Airservices Annual Report 2013-14 199

Workforce Diversity Strategy 2012- 2016, 138-9, 140, 141

Workforce Plan 2013-2020, 43-4, 140, 147-51

Workforce Planning Job Family Framework, 43

workplace diversity, see equity and diversity

workplace relations, 43