The current disruption to the aviation industry is without precedent. However, it is also giving us a chance to adapt and grow. As we continue to keep our skies safe, we are acting now to respond to this changing landscape and create a radically different and better business for the future.
To achieve this, and to place us on a sustainable trajectory to 2024-25 and beyond, we have the following objectives:
- Adjust our services to be scalable and more closely aligned to customer requirements while maintaining safety as the first priority
- Become a more inclusive and agile organisation, by building a culture of trust, care and accountability
- Transition to a more flexible cost structure, with lower operating costs
- Accelerate the introduction of digitised services to prepare for future operating environments and improve productivity
- Transform our asset base to align capability to service demand and shift capital commitments to operating expenses
These objectives will be achieved through a range of initiatives that are framed by our three strategic pillars of Customers, People and Financials.
Understand our industry's needs and enhance our services to deliver a better experience with more value for those that consume our services.
By 2024-25 we will have a comprehensive understanding of our industry's needs and offer valued services to both existing and new customers. This will involve challenging the assumptions behind what we offer today, digitising and upgrading our systems, automating much of our manual and routine work, introducing new offerings, and using data and relationships to continually improve the customer experience.
Adjusted Investment Program That Leverages Access to Operational Capacity
Accelerate key elements of our investment program by implementing initiatives that align and are relevant to our future state and/or make use of short-term access to operational capacity.
Service Performance Outcomes Matched To The Needs of Our Customers
Develop a safe and efficient graduated service offering for each customer segment.
New Digital Capabilities to Drive Efficiency
Accelerate digitalisation and automation of services and solutions to prepare for future operating scenarios and improve unit cost efficiency.
Significant program to deliver a harmonised civil military air traffic management system that enables us to meet Australia's air traffic management needs into the future, maintain Defence capability and meet national security imperatives.
Enterprise Network Modernisation Program
Ensure we have the capacity, availability, flexibility and security to manage current and future telecommunication network demands. It is a key dependency supporting the OneSKY Program and is critical to maintain the reliability and availability of the national airways system.
Create a thriving purpose and values-led organisation.
By 2024-25, our organisation will be recognised as one of the leading places to work in Australia.
Realigned Operating Model Efficiency Improvements
Redesign our operating model to operate as an efficient customer value chain, while driving the right behaviours and culture across the organisation.
Aligned Values, Leadership and Behaviours
Deliver actions in response to the recommendations from the Review of Culture at Airservices Australia, and enhance leadership to build a foundation of trust, care and accountability.
Aligned Strategic Workforce, and Talent
Develop a sustainable strategic workforce planning approach/framework, and identify ongoing skill and capability requirements (skills, culture, mindset).
Reform our revenue and cost model and financing structure to be more efficient, flexible and sustainable.
By 2024-25 we will have returned to financial strength by becoming a lower cost, more efficient and sustainable organisation.
Short-Term Cost Saving Measures
Obtain $85million of savings in 2020-21 by reducing demand-driven expenditure and identifying process changes to ensure that expenditure is minimised as air traffic returns.
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, centred around sustainable debt and liquidity, during the pandemic and through the recovery phase to ensure ongoing financial sustainability.
|RESPONDING TO THE IMPACTS OF THE PANDEMIC AND BUILDING THE FOUNDATION FOR CHANGE||TAILORING OUR SERVICE PERFORMANCE LEVELS TO THE NEEDS OF OUR CUSTOMERS AND COMMUNITY||TRANSFORMING HOW WE DELIVER OUR SERVICES THROUGH DIGITALISATION AND AUTOMATION|
|In the early stages of the pandemic we moved quickly to reduce costs and minimise spending. Our focus will remain on holding expenses as low as possible as the industry recovers.|
The new operating model is in place to sharpen our focus on customer outcomes, strengthen our functional expertise and achieve efficiencies, and improve collaboration.
We are renegotiating with our key suppliers to increase flexibility, such as deferring expenses, at a time when revenue remains uncertain.
The current downturn in air traffic has presented us with several unexpected opportunities to redeploy people and resources to accelerate vital projects. We are prioritising digital investments such as digital aerodrome services, while continuing implementation of our core investments of OneSKY and the Enterprise Network Modernisation Program.
We are continuing our work on building a culture of trust, care and accountability, and to support this we are redefining our purpose and the values that unite us.
|We will build more flexibility into our service levels and performance to match the needs of our customers as they recover. Our work to increase savings, boost efficiency and foster new partnerships will also continue.|
At the same time, we will also look for opportunities to collaborate and partner with our neighbours in the Asia-Pacific region to help build airspace management capability in the region.
|We are on the cusp of a digital revolution and more routine work will soon be automated, and that will drive efficiencies in our current work, enable more service flexibility, and expand service delivery outside airspace management.
While this is happening, we will continue our work to build the right skills and capabilities in our workforce so we can deliver on our purpose in the years to come.