|2018-19 Result||2019-20 Result||2020-21 Target||2020-21 Result|
|Cost per Instrument Flight Rules Flight Hour|
Our cost per instrument flight rules (IFR) flight hour ($/hour)
|Return on assets (RoA)|
Airservices annual earnings as a percentage of assets
* Excludes $550M Government Grant Tranche 3 for future funding
Source: Airservices 2020-21 Corporate Plan, page 19.
Our cost per instrument flight rules (IFR) flight hour is favourable to target mainly driven as a result of cost reductions of $100m during 2020-21.
The Australian Government provided relief to the Australian aviation industry through this time. Airservices received $1.1b in 2020-21 to help fund the provision of critical air traffic and aviation rescue fire fighting services, while airways revenue dropped by 50.4 per cent. It also helped fund fee waivers provided to domestic aircraft operations worth $159.2m. The expected negative return on assets of -12.3% was reduced as a result of saving in operating costs, to -2.1%.
|FINANCIAL INITIATIVES||FINANCIAL INITIATIVES ACHIEVEMENTS|
|SHORT-TERM COST-SAVING MEASURES|
Obtain $85m of savings in 2020-21 by reducing demand-driven expenditure and identifying process changes to ensure that expenditure is minimised as air traffic returns.
|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 $100m throughout the year and will remain in place for the foreseeable future.
We have finalised the voluntary redundancy program for management and corporate agreement staff enabling $28.1m in annualised savings.
Work with suppliers to find appropriate solutions to harvest incremental and sustainable savings. Establish scalable and flexible cost structures to move away from static, fixed cost structures.
|Opportunities to realise near and longer-term savings of approximately $13m have been identified.
$7.2m worth of savings negotiated in 2020-21.
|LIQUIDITY MANAGEMENT / GEARING STRATEGY|
Agree acceptable financial KPIs/ratios centred around sustainable debt and liquidity during the pandemic and through the recovery phase to ensure ongoing financial sustainability.
|Capital Structure review undertaken to understand our funding structure.
The Australian Government provided financial assistance to Airservices. This assistance, along with our cost savings, enabled us to continue to deliver our services while maintaining our charges. We continued to administer the Australian Airline Financial Relief Package (AAFRP), which has provided $159.2m in financial relief through fee waivers to the domestic airlines and operators for 2020-21.