Business Operations Efficiency

As the aviation industry navigates a period of intense disruption, it is more important than ever that we maintain our focus on the efficiency and effectiveness of our operations. We are accelerating our automation and digitisation to optimise safety, service delivery and cost efficiency for our customers now and into the future.

KPI Results

 2017-18
Result
2018-19 Result2019-20 Target2019-20 Result
Productivity
The total operating cost per instrument flight rules (IFR) flight hour ($/hour)
$325$332$347$367

 

Analysis

Our cost per instrument flight rules (IFR) flight hour is unfavourable to target, driven by the significant reduction in air traffic from March 2020 due to the COVID-19 pandemic. The cost reductions in the last quarter of $30m (3 per cent) could not match the steep reduction in IFR flight hours of 0.4m hours (17 per cent).

Our performance prior to March 2020 was favourable to target, with an average cost of $339 per IFR hour.

Our performance against this indicator demonstrates we continue to strive to be valued and accountable, and efficient and commercial.

2019-20 Monthly Cost Per IFR Flight Hour Trend ($)

 

Achievements

  • Implemented a program of rigorous cost savings in response to the financial impacts of the COVID-19 pandemic on the industry. The various initiatives saved us $30m in the final quarter of the year and will remain in place for the foreseeable future, with further measures to be introduced.
  • Completed a digital simulation prototype of our air traffic network, which will improve the overall efficiency of the flight network when operational.
  • Made significant progress in the OneSKY Program, which will enhance the efficiency of our air traffic resources and improve safety outcomes in the years to come, including:
    • completing the preliminary design review on the Civil and Military Air Traffic Management System (CMATS) platform.
    • progressing construction on the Air Traffic Service Centres (ATSCs) in Brisbane and Melbourne.

Case Study

Australia's Future Air Management System-OneSky

Despite the disruption of 2019-20, work on the OneSKY Program continued at pace-bringing Australia closer to its air traffic management system of the future.

CMATS successfully passed the Preliminary Design Review in December 2019, clearing the way for an early release at four military sites and a new Joint Software Support Facility at our Melbourne centre.

Construction on the new Air Traffic Services Centres (ATSCs) required to house CMATS in Brisbane and Melbourne has progressed well, with Thales Australia granted access to the new Melbourne ATSC in July 2020. Design of the Perth ATSC has also concluded.

A new Contractor System Verification Facility was completed this financial year, for use in the development, testing, training and acceptance of CMATS.

Finally, design has commenced on a new regional tower solution with the appointment of Saab to evolve the Integrated Tower Automation Suite, which is in use at major national aerodrome towers. This solution will be leveraged to upgrade four Australian Defence Force air traffic control towers.

OneSKY remains on track to deliver an estimated $1.2 billion of economic benefits to the industry over a 20-year period.

$365M+

Fuel Savings

$157M+

Airline Savings

$303M+

Passenger Time Savings

$65M+

Reduced Carbon Emissions

$65M+

Productivity (CMATS)