KPI Results
| 2019-20 Result | 2020-21 Result | 2021-22 Target1 | 2021-22 Result | |
|---|---|---|---|---|
| Cost per Instrument Flight Rules Flight Hour Our cost per instrument flight rules (IFR) flight hour ($/hour) | $367 | $568 | $525 | $534 |
| Return on Assets (RoA) Airservices annual earnings as a percentage of assets | -1.3% | -2.1% | -0.1%2 | -26.3% |
| Total Environmental Footprint | Set Baseline | 241,510 tCO2e | ||
- Source: Airservices 2021-22 Corporate Plan, page 17.
- The 2021-22 Return on Assets (RoA) target was updated to -20.4% after the publication of the Corporate Plan to reflect the decision to report the $550m in Government revenues in last financial year.
Analysis
Our financial performance reflects the adverse impact on revenue of reduced traffic associated with state-imposed lockdowns and domestic and international border closures during the COVID-19 Delta variant outbreak. These restrictions, experienced during the first three-quarters of the year, have had a dramatic impact on demand and revenue.
Throughout the year we have achieved $100 million in cost savings as a result of the implementation of our new operating model team designs, Retirement Incentive Scheme and other cost saving measures.
Domestic traffic has improved throughout the year to almost 90% capacity and forecast to remain relatively strong, however international is only at 50% of pre-COVID capacity, and we anticipate that the path to the aviation market recovery will be ongoing until 2024-25. Therefore, further Government equity funding is being sought to make our balance sheet stronger so that we can continue to fund our services and deliver our future investments.
Work to support our aspirations to become carbon neutral is continuing, with our environmental footprint (energy, waste and emissions profiles) baseline being calculated at 241,510 tCO2e per annum. This also establishes and aligns our reporting and calculations with leading practices.
Outcomes Achieved
| OWNER INITIATIVES | ACHIEVEMENTS |
|---|---|
| Environmental Sustainability We are uniquely positioned to play a leading role in improving the environmental sustainability across the aviation ecosystem. We will partner with the aviation industry to reduce aircraft emissions and noise, and strengthen our own organisational commitments to preserve biodiversity, promote health, minimise pollution and reduce our total environmental footprint. | |
| Community Engagement Minimise the impact of aviation noise on communities where practicable through improved balancing of competing flight path design constraints, the expansion of flight path monitoring data and Continuous Descent Operations benefits through OneSKY. | |
| Cost-saving Measures Sustain and build on the savings in 2021-22 by reducing demand-driven expenditure and identifying process changes to ensure that expenditure is minimised as air traffic returns. | |
| Supplier Engagement 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. | |
| Liquidity Management / Gearing Strategy Agree acceptable financial KPIs/ratios, focused on sustainable debt and liquidity, during the pandemic and through the recovery phase to ensure ongoing financial sustainability. |
