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CEO ANNUAL REPORT: AGM NOVEMBER 2018

During the past few years, as an association, CAASA has solidified its position as a reputable role player within African and, more specifically, in the South African arena.

The current theme for CAASA is “Growing Together” and we aim to concentrate mainly on what we, as industry collaboratively, need to do to ensure that our aviation industry will thrive in the future.

As part of the mentioned theme CAASA mainly concentrated on two specific growth aspects, namely productively sharing the airspace and enhancing our footprint in Africa.

New technologies such as Remotely Piloted Aircraft Systems (RPAS) might complicate the current airspace control systems and regulations, but we need to understand clearly that “unmanned” is the future of aviation. Currently the RPAS community is getting a raw deal when it comes to operating legally in the commercial airspace. The full process involved in operating legally through both the SA CAA and the Air Service Licensing Council is far too complicated and time consuming.

At the recent CAASA Commercial Aviation Symposium Africa, held at the Execujet facilities, the main theme was growing into Africa and it became evident that the South African aviation entities need to consolidate their efforts and work closely together to grow our footprint in Africa. Currently the aviation entities are working in silos and in effect losing out on a range of opportunities in Africa. CAASA will continue to stimulate dialogue on this issue.

Due to the change of CAASA’s financial year-end from July to Feb, it has only been 8 months since our last AGM. Although only 8 months, the CAASA office has been exceptionally busy, giving effect to a number of achievements for the association and its members.

In line with the CAASA 2018 Key Strategic Decisions and Objectives, the following activities have materialised over the past 8 months:

CAASA’s Promotional/Marketing Video is in its final stages of production and will be shared with the members shortly. The script was drafted by, and the narrating done through, a professional broadcasting entity. African pilot will produce the visuals for this project.
The CAASA Foundation is fully functional with an independent Board of Directors. I am extremely excited about the CAASA Foundation. The Foundation will support aviation initiatives, with specific emphasis on creating opportunities for historically disadvantaged entities and other social development programmes. The support for the foundation is growing daily. I am convinced that the Foundation has the potential to make a positive contribution to economic growth, employment and skills development. Mr Tony Frost has been appointed as the Chair of CAASA Foundation Board of Directors and will provide more detail on the Foundation during the CAASA 2018 AGM.

The Slack Application has been launched and is being used by most of the CAASA members. This application provides a communication platform between and for all the CAASA members. All applicable CAASA documents are now available at a touch of a button. It is a secure system and an application process needs to be followed before specific and relevant information becomes available. One of the major benefits of the application is that all the agendas and minutes are available on any type of “smart device” and we don’t have to print any minutes or agendas. I urge all members to sign-up for the Application.

CAASA Membership has increased with 10 members (18 new members and 8 resignations). CAASA currently has 205 members, we welcome our new members. We continue to look forward working closely together in a joint effort to strengthen commercial general aviation in Southern Africa. The full list of new members, and resignations, is added as an appendix to this report.

The CAASA mentorship programme is in its final development stages and should be rolled out shortly. The main aim of this project is to share with, assist and educate young individuals in the complexities of the aviation world. All the CAASA Directors will be assisting in the programme and CAASA will manage the activities relating to the programme.

CAASA’s Code of Ethics has been revised. The CAASA Board of Directors will sign the Code of Ethics declaration during the CAASA 2018 AGM and all members will be required to follow suit.

Interest in the CAASA Aviation Activity Index has grown significantly with more than 10 media houses now publishing the results quarterly. In recognition of the indispensable role that air travel fulfils in the economy, in general, and the transport sector, CAASA has established a composite index that measures the overall level of activity in the commercial aviation sector.
The CAASA Aviation Activity Index (CAAI) comprises a total of 25 different indicators, including the values of aircraft imports & exports, air traffic movements at key international and domestic airports and trade data for aircraft spares.

Combined in an appropriately weighted index, the CAAI provides an objective & informative gauge of the level of activity in commercial aviation, including a medium-term historic trend.

The CAAI index value declined marginally in the 1st quarter of 2018 to a level of 106.4, which nevertheless still represents a 6.4% increase over the base period for the Index (the 1st quarter of 2014).

In the process, the index value has continued a declining trend that commenced in the 2nd quarter of 2016. On the positive side, the 1st quarter Index value is almost 12% higher than the same quarter a year ago, when it slipped to below the base period level of 100 for the first time.
A highlight of the latest CAAI is the solid performance of air traffic movements (ATMs) at the non-ACSA airports, with six of the seven airports recording positive growth, compared to the same quarter in 2017.

Only seven of the 25 indicators improved between the 4th quarter of 2017 and the 1st quarter of 2018, but it is encouraging that more than half of the indicators showed improvements over the 1st quarter of 2017.

Commercial aviation activity in South Africa, as depicted by the CAAI, has broadly tracked the lethargic performance of the total economy between 2014 and 2017, with negative GDP growth in Q1 2018 (quarter-on-quarter).

The main reasons for the current declining trend of the CAAI may be found in higher fuel prices and the extraordinary strengthening of the rand exchange rate following Mr Cyril Ramaphosa’s election as South Africa’s new president, which has made the imports of aircraft and spares much more expensive. Furthermore, ATMs at five of the six ACSA airports covered by the index declined in Q1. There is also no doubt that capital formation in the aviation sector is being hamstrung by high interest rates and continuing policy uncertainty, especially with regard to the possible nationalisation of property.

An independent legal specialist, Grant Naude, has been added as a member of the CAASA Board of Directors.

The CAASA financial management system has been perfected under the leadership of John Morrison, with assistance from Hanke Fourie and Penny Conlyn-Hamilton

The CAASA Marketing Committee continues to make a significant impact on CAASA and its activities. I consider it fitting to thank them all for their tireless contribution.

In terms of the objective to ensure the sustainability of CAASA through other sources of revenue, CAASA has opened the “Gear Down” Pub. The Pub also provides a business to business platform for general commercial aviation entities and interest groups.

The first CAASA Commercial Aviation Symposium Africa was hosted successfully in May 2018. Close to 200 delegates attended the Symposium and based purely on feedback received from the industry, it was highly successful. The next Symposium and combined AGM is planned for August 2019 in Cape Town.

A process to align and to cross pollinate the 8 (eight) CAASA Affiliates has started and will continue indefinitely. CAASA is as strong as its membership and this strength is largely determined by its collective influence. The closer the affiliates work together, the stronger and more impactful CAASA will be. The first Affiliate workshop, which was held on the 4th of May 2018, therefore, was designed largely to address this key organisational and strategic imperatives.


The following general key issues were addressed:

– Organisational Structure and Decision-Making.
– Communication – create a central database of information. Affiliate presidents to receive updated member lists.
– Affiliates must deal with their own issues.
– Affiliates members will be asked for volunteers to assist in dealing with issues
– Presidents must communicate solutions and issues with OPSCOM – these will be shared with other affiliates where appropriate.
– If needed – a meeting with SACAA will be arranged.
– OPSCOM Matrix to be shared with all members.
– Arrange a specific SACAA liaison person to ensure action/written responses – the official liaison process must be used.
– Use the correct office channels in the office for quick assistance.
– Provide updated specifics on Office roles and responsibilities to make it easy for affiliates to know who to contact for quick response.
– Improve communication by using available technology effectively.
– CAASA-driven affiliate days.
– Affiliates Roles and Responsibilities.
– Create strategy and goals per affiliate.
– Mouthpiece for the Affiliates with their own members – technology can certainly help.
– Create a process for sharing affiliate issues with other affiliates; and within the affiliate with their members.
– Affiliate EXCOs must manage their members.
– Affiliates must fight their own fights.
– Get to know their own members needs and issues and communicate effectively with members.
– Get to know the other affiliates.
– Address SACAA through OPSCOM.
– CAASA is a support structure.
– Regular short updates on affiliate issues.

The “Way Forward” for the affiliates was defines as follows:

– All affiliate AGMs to be held on the same day as CAASA in July in future – all will reconvene for a final closing event.
– November – CAASA year-end function – all members – all formalities elections, awards etc.
– 2019 AGM – special event to celebrate CAASA 75th anniversary over 2 days – all AGM’s happen at the same time and venue.
– The rest of the 2019 will be planned in November.
– Frequency of meetings – mostly virtual meetings but attendance meetings will be convened when there are specific issues or opportunities to be discussed.
CAASA is thankful for the participation of the Affiliate’s Executive Committees and their Presidents in assisting CAASA within their areas of expertise.
CAASA has implemented an OPSCOM access database tracking system, or matrix, which has proved very successful. All the issues or complaints that are received at CAASA are placed on to this matrix and the progress is monitored. Regular meetings are set up with the SACAA and other role players to discuss the issues on the matrix to ensure that ongoing movement is achieved.

OPSCOM has formalised its interventions to best support the CAASA members and affiliates with this structured approach. The principles are based on informed negotiation and escalated issues that form part of the OPSCOM matrix, which is worked upon with SACAA to bring resolution without the need for legal intervention.

Important to note is that CAASA has, since the inception of the matrix, closed more than 80 % of the issues. This result is mainly due to the persistence and hard work done by Kevin Storie, thank you Kevin. It is also evident that the SACAA and SARS showed a sincere interest in involving the industry in the efforts to resolve aviation-related problems.

It will not be practical to mention all the activities that CAASA has been involved in during the year under revision; I therefore will only but mention a few. You are however more than welcome to review the full matrix containing all the itemised issues and their current status in the CAASA office:

– The re-instatement of the temporary import concession with SARS for our AMO’s.
– PART 93 re-development in partnership with the SACAA.
– The CUAASA dossier to bring about a corrective action plan to limit the financial haemorrhaging of the RPAS industry.
– The SKA issues and collective stance with AASA and BARSA protecting our ICAO rights to fly in South Africa.
– The odd SACAA irregular treatment of some members in regards to MELs’, ATO and AMO certification.
– The development of the CAL and other forums which serve the industry bringing SACAA and industry together.

In summary, our active intent to mutually forge sustainable paths forward that work for both the regulator and industry seem to be gathering impetus.
CAASA has, as always, been part of various committees, forums and work groups, all of which have direct bearing on the mandate of CAASA – to promote and protect the interests of commercial general aviation in Southern Africa. CAASA further actively engages, applicable departments of government, in collaboration with other aviation stakeholders, to resolve issues falling within its constituency.
Participation in these activities remains relevant and CAASA will continue to serve the industry through these mechanisms. Engaging with these role players, CAASA’s intention is to work closely with them to ultimately find reasonable, and mutually acceptable, solutions within safe and practical frameworks.

During the period under review, CAASA has continued to support other aviation associations in their efforts to ensure a safe, yet realistic, application of policies, procedures, fees and regulations. Although not always in agreement, CAASA has a good working relationship with AASA, ALPA and the Aero Club of South Africa (AeCSA). On international level, CAASA has a very good mutually beneficial working relationship with AfBAA. CAASA thanks these entities for their ongoing support in the protection and promotion of aviation in South Africa.

I was able to establish, over the year, healthy links and relations with the media and was afforded the opportunity to be interviewed by various written, verbal and visual media entities to promote the association.

Africa Aerospace and Defence Exhibition

The tenth edition of Africa Aerospace and Defence (AAD2018) will take place over the period of 19 to 23 September 2018 at Air Force Base Waterkloof in Centurion, South Africa. The AAD Executive Committee will focus specifically on enhancing visitor experience, simplifying the accreditation process, marketing aiming to lure more international exhibitors and trade visitors to AAD and enhancing the management of the foreign VIP delegations. We hope to increase the aviation entities participating in the event as exhibitors.

CAASA is the lead partner for this 10th edition of AAD and a full CAASA team has been identified to assist with all the arrangements.

Planning and arrangements for AAD2018 are on track, all indications are that it promises to be another successful event, albeit that this year has shown a concerning and noticeable decline in participation from the commercial general aviation sector in the aircraft static park. The number of aircraft currently booked for display is very low in comparison with the 2016 edition. With CAASA being the only partner in AAD who is solely representative of the commercial general aviation sector (Armscor and AMD being predominantly defence), the importance of our presence as an industry cannot be over emphasized, especially considering that AAD is the financial lifeblood of CAASA. With AAD2018 just around the corner, we look forward to further support and assistance from our members in this regard.

AAD Status Report

Regulatory Environment Status

Completed:

 Safety at Sports and Recreational Events Act 2 of 2010 – Grading as Medium Risk Event received and ESSPC fully operational
 National Conventional Arms Control Act 41 of 2002 – First country approval list received and second submission made on 8 May 2018
 Chief of the South African National Defence Force Directive No 09/2017: SANDF support to Africa Aerospace and Defence Exhibition 2018 at Air Force Base Waterkloof, 19 – 23 September 2018 dated 31 August 2017
 National Department of Public Works Authority for the use of Air Force Base Waterkloof – submitted in September 2017, costing and correspondence received from DOD to confirm amount payable, NDPW official letter now awaited.

Outstanding:

 Co-operation Agreement between the DOD and the AAD Partners (outstanding for AAD2018). Two amendments being included in Agreement.

2018 Exhibition Sales Status

International exhibitor’s participation has been confirmed for the following countries:

Service Providers re-appointed with terms and conditions finalised, Safety & Security for screening completed for:

– General Service – ExpoSolutions.
– On-site Freight – GAC Laser.
– Cleaning and Waste Removal – ZF Cleaning.
– Creative and Website – Prospero 360.
– Hospitality Chalets – Circa.
– Audit – SAB&T.
– Toilets and Sanitation – Sanitech.
– Exhibition Catalogue – Creative Space Media.
– OHS and Fire Safety – Lodge Events.
– Catering – Main Events Catering.
– Commentator – Capital Sound.
– Air Show Tickets – Computicket.
– Travel Partner – SEEZA & Wayam.
– Registration – Green Exhibitions.
– Golf Carts – Zen Carts.
– PR Company – Khanya Communications.

Registered Trade Visitors:

Concluded Strategic Partnerships


Transit Partner


Host City


Official Broadcaster


Official Airline


Travel Partners

CAASA will continue to serve the interests of the Commercial General Aviation industry through attendance of the various aviation committees and forums and will always strive to improve on the service it provides to its constituency.

The growth of involvement of the CAASA Board and CAASA members with commercial general aviation issues has been tremendous over the past few years and is highly appreciated. At this point I would like to thank all the active CAASA members, who served on the various CAASA committees, assisted with special projects, assisted with funding legal issues, who visited us or who just smiled when one of us was trying to tell a joke. Thank you!

Thank you to the office team, Louise, Kevin and Sam; you all have contributed tremendously to the success of CAASA.

I especially would like to thank Tracey Eloff. You have been absolutely marvellous and must be one of the most active and involved Presidents in the history of CAASA. I remind you that Tracey is the first female President in the history of CAASA- What a milestone!

It will surely be a challenge for this association to manoeuvre within the constantly changing global and national environment, but I believe that CAASA is busy establishing itself as one of the most reputable aviation association in Africa.

CAASA- Your Aviation Portal.

LEON DILLMAN
CHIEF EXECUTIVE OFFICER OF THE COMMERCIAL AVIATION ASSOCIATION OF SOUTHERN AFRICA

 

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