| KPI results | 2020-21 Result | 2021-22 Result | 2022-23 Target1 | 2022-23 Result |
|
|---|---|---|---|---|---|
| Real Price Growth (5-year trend) | |||||
| Cumulative annual weighted average price change less Consumer Price Index (CPI). Where price growth stays below inflation, we are providing customers with real savings. | <0% | <0% | <0% | <0% | |
| Return on Assets (RoA) | |||||
| Our annual earnings as a percentage of our assets. | - 2.1% | -26.3% | - 25.5% | - 13.2% | |
- Source: Airservices 2022-23 Corporate Plan, page 21
* Calculated over the preceding 5 years
Analysis
Our financial performance improved during the year, resulting in an above target Return on Assets (RoA) despite a slower than expected traffic recovery. This highlights the remaining volatility in the aviation industry and the imposing challenges we are still facing.
Domestic traffic has rebounded to 90% of prepandemic levels and is forecast to remain stable with potential expansion of domestic routes. International traffic accounted for 50% of our revenue last year and is still at only 70% of pre-pandemic levels. However, with the re-opening of China which has historically been our biggest inbound market, we expect Australian international air traffic to recover to pre-pandemic levels by 2024-25.
In late 2022 we received $495m in equity funding from the Australian Government. This additional government support has allowed us to continue recovery from the pandemic and deliver frontline services to the aviation industry, while investing in transforming our business.
We have not increased our prices since July 2015, equating to a 21% price reduction in real terms for our customers to 2022-23. We are currently engaging with our customers and the Australian Competition & Consumer Commission on modest price changes which will allow us to continue to fund our ongoing transformational investment programs and invest for future growth.
Support services
Effective, engaging, and efficient ways of working enabled by ‘next generation’ digital business tools and automation.
Key initiatives
Enterprise Resource Planning (ERP)
Deliver a digitally enabled set of core business processes supported by modern enterprise resource planning tools improving the efficiency and efficacy of our enabling functions.
Achievements
We have made substantial progress on Enterprise Resource Planning (ERP), evaluating the commercial technology’s fitness to improve the efficiency and efficacy of our enabling functions. Our high-level design is substantially complete and due to be finalised in August 2023. Our ambition to simplify and align our processes with industry best-practice remains a key benefit enabler. To date we have realised significant efficiency and efficacy benefits including reducing operating costs by $8.7m and repositioned proximately 90 of our people to support our change programs, representing an additional $12.7m.