Performance per strategic pillar
Airport operations are carried out with the intention of not only maintaining service excellence to contribute to the strengthening of our brand, but with a view to enhancing economic growth in partnership with our stakeholders.
- Dealing with capacity constraints
- Implementing a new slot management module
- Digitisation as we move towards paperless travel
- Safety and security
- Redesigning our business processes
- Further improving our carbon accreditation status
- Embedding the key account management model of engagement with stakeholders
Topics raised by stakeholders
- Customer satisfaction.
- Environmental sustainability.
- Safety and security
- Capacity constraints
Material matter: Safety and security
As national key points that attract large numbers of people, our airports are presented with risks of security threats, crime and major safety incidents which have the potential to significantly affect aeronautical operations.
We continuously engage with law enforcement partners and invest in security advancements, including integrated communication systems. Prevention and threat response procedures are in place to deal with crises and ensure the continuity of operations.
Impact of the safety and security material matter on our business
Our response to risks and opportunities in FY2018/19
- Implemented private security resource solutions to restrictions in policing manpower at airports.
- Continued engagement with law enforcement agencies.
- Implemented a unified IT-based access control system at all airports to improve physical security.
- Deployed vapor wake dogs and K9 explosive detection dogs, to prevent the entry of unauthorised items and substances to airports.
- Established our own policing units and fire department to ensure the safety of daily transit pedestrian traffic at airports.
- Contributed to APEX reviews in Africa, promoting continued improvement in the operational security performance of the world’s airports.
Impact of our response on stakeholders in FY2018/19 and beyond
- Despite a high-crime environment our airports remained free of major safety incidents or security breaches, due to our threat prevention and response procedures.
Our desired outcome
- Improved airport stakeholder and passenger safety.
Trade-offs to achieve our desired outcome
- Additional security services have come with a cost trade-off to achieve safety and security levels.
Material matter: Natural environment
Water shortages, electricity supply, noise incidents, bird strikes, air quality and fuel spills all affect Airports Company South Africa’s ability to run its airports effectively and with minimal impact on its surrounding natural environments.
We conduct our environmental management, including legislative compliance, through an environmental management system (EMS).
Impact of the natural environment material matter on our business
Our response to risks and opportunities in FY2018/19
- We have sought and attained carbon reduction accreditation for our airports.
Impact of our response on stakeholders in FY2018/19 and beyond
- Our airports continue to minimise their impact on environments and communities surrounding or adjacent to our sites and operations.
Our desired outcome
- ACI Level 3 optimisation certification for at least one airport.
Trade-offs to achieve our desired outcome
- Responsible management of resources has required investment in new processes and technology.
In FY2018/19, our KPI target was to attain ACI Level 2 Reduction Certification for at least one airport. Reflecting on the progress we have made in reducing our carbon footprint at all our airports, we have obtained Level 2 certification for both O.R. Tambo International Airport and Cape Town International Airport, as well as obtaining Level 1 certification for King Shaka International Airport, Port Elizabeth International Airport and George Airport.
We note that the Carbon Tax Act has been signed by the President and came into effect on 1 June 2019 and we reaffirm our commitment to reducing our environmental impact by moving towards carbon neutrality. The Group had no significant fuel spills or fines levied for non-compliance.
Run airports overview
Airports Company South Africa’s core aeronautical revenue is derived from airport operations such as regulated tariffs for aircraft landing, parking charges and passenger service charges. Non-aeronautical revenue is derived from commercial income from retail operations, car parking and car rental concessions, advertising, property leases and hotel operations. Non-core revenue comprises the provision of technical advisory and consultancy services both in South Africa and abroad, as well as the Airports Company South Africa training academy.
While South Africa’s gross domestic product (GDP) – a key driver of traffic volume growth – has languished around 1% per annum, Airports Company South Africa has succeeded in growing departing passenger numbers by 1.3% to 21 118 264 (FY2017/18: 20 836 852). Growth in departing passenger volumes achieved by our three major airports was as follows:
- O.R. Tambo International Airport: 0.2% increase to 10 686 913
- Cape Town International Airport: 0.6% increase to 5 437 295
- King Shaka International Airport: 6.7% increase to 3 007 573
Our international airports grew their numbers of international departures as follows: O.R. Tambo International Airport +0.7% to 4 624 806 passengers, Cape Town International Airport +7% to 1 212 966 passengers, King Shaka International Airport +5.3% to 188 742 passengers.
Air travel trends at our nine South African airports:
(Air traffic movements)
|38 948 (+0.8%)||135 738 (-3.6%)||12 613 (-3.5%)||71 870 (-0.1%)||259 169 (-2%)|
(Air traffic movements)
|6 026 514 (+0.9%)||14 483 061 (+1.7%)||548 047 (-2.2%)||60 642 (-2.6%)||21 118 264 (+1.4%)|
Consolidated seat capacity in regional airports grew by 1.48% at 31 March 2019, compared with the previous year, mainly as a result of a resumption of SA Express operations in Port Elizabeth International Airport, Kimberley Airport and Bram Fischer International Airport in the second semester of the 2018 calendar year. Both SA Express and SA Airlink increased their flights significantly in both Bram Fischer International Airport and Kimberley Airport by the end of February 2019, following the cessation of CemAir operations at both airports. Port Elizabeth International Airport and East London Airport both increased their seat capacity by around 5% and 1% respectively, mainly due to SA Airlink and FlySafair increasing their operations significantly at both airports.
On the cargo handling front, the following table illustrates volumes for FY2018/19 compared with FY2017/18:
|O.R. Tambo International Airport||380 208,791||399 780,700||-4.90%|
|Cape Town International Airport||79 272,197||87 539,772||-9.44%|
|King Shaka International Airport||17 587,167||16 595,694||5.97%|
|TOTAL||477 068,155||503 916,166||-5.33%|
Our on-time performance, determined by the percentage of aircraft departures within 15 minutes of their slot time, stood at 83.39% in FY2018/19.
The following graph shows on-time performance across our airports:
FY2018/19 presented a number of challenges, most notably overcoming the delay in the rollout of airport capacity expansion projects. Capacity constraints are mostly felt at Cape Town International Airport and O.R. Tambo International Airport, though all our airports’ infrastructure and operational systems such as aircraft parking capacity, terminal building capacity and baggage and cargo handling systems remain under pressure.
Aside from infrastructure constraints, human resources constraints in the industry have resulted in the Group implementing alternative and complementary measures to ensure that safety and security were not compromised and that long queues at immigration did not negatively impact on the customer experience.
We have continued to strengthen our internal focus on running our airports as efficiently as possible as we gear up for the beginning of maintenance and construction projects. We remain innovative in our attempts to maintain high levels of service despite capacity constraints and passenger volume growth as we fulfil our mandate of making air travel accessible to more South Africans. We believe we have been able to maintain customer service levels despite a difficult operating environment.
Revenue performance was affected by downscaling at the national carrier and attrition in the sector at large, leading to a decline in overall seat numbers and frequencies. Regional airports have been particularly sensitive to industry dynamics.
To illustrate, FY2018/19’s total aircraft movements at our airports continued to slide downwards from 526 872 (-6% from FY2016/17) in FY2017/18 to 505 008 this year (-4.1%). As a positive counter to this trend, Cape Town International Airport managed to grow its international traffic by 7.7% and 1.8% domestically.
We are managing concerns around operating cost inflation by revising our approach to capital implementation, standardising service contracts, implementing a claims process for assets damaged through negligence and/or higher-than-usual wear and tear by tenants and introducing technologies such as gas-to-power which will result in step improvements in operating costs.
We execute our airport operations strategic mandate as follows:
Client and passenger services
We engage with our stakeholders continually to ensure that we always deliver quality services and meet expectations. To improve our performance in this aspect of airport operations, we implemented a Key Account Management model, which has borne fruit in our enhanced relationships with passengers, airlines, airport retail tenants, suppliers and tourism organisations.
Shifting away from a linear-focused protocol towards a customer-centric protocol based on our customers’ and stakeholders’ activities, adds value to what we do because it improves our decision-making ability as a result of better understanding of our stakeholders’ needs. Our aim of adding more value, promoting growth and enhancing the passenger experience is also achieved through enriched stakeholder relationships in which we share more information and are more responsive.
Airports Company South Africa’s Key Account Managers continuously engage and manage groups of stakeholders at each airport, which enables us to:
- Identify and resolve issues in advance
- Develop innovative solutions for our customers
- Ensure a consistent experience across the network
- Manage stakeholder satisfaction
- Improve our overall reputation (measured by RepTrak®)
Through FY2018/19 we steadily strengthened our stakeholder satisfaction score, enhanced our com-munications of plans and goals, responded to and resolved queries more effectively and developed business intelligence tools to share with stakeholders to support business decisions.
Ground handling services
These services, which include ramp handling (water services, bus services, etc.) and passenger and crew handling (including baggage, sanitation and catering) are provided by licensed service providers of Airports Company South Africa.
During the year in review we took stock of the contracts regulating these relationships and acknowledged that we have not previously structured all contracts optimally, resulting in us not leveraging economies of scale and better advancing our transformation objectives. With this in mind, we are in the process of working towards contractual unity with a focus on localisation of services – sourcing from contractors in the locality of each airport. Our challenge in harmonising a myriad contracts for each airport will be to achieve service uniformity, but Airports Company South Africa will take the lead in establishing standards and service levels.
Business systems and performance
Airports Company South Africa made significant strides in revamping its operations procedures and processes in FY2018/19, including redesigning and rolling out approximately 200 business processes across fire rescue, aircraft parking, security and operational planning. We also implemented a new slot management system. Airports Company South Africa has built a tool through which slot approval can be fully automated to deal with slot constraints at peak hours. This will assist us with resource management and slot requests can be granted or denied – based on factors like available counters and gates – automatically and immediately.
Process mapping will continue into FY2019/20, where we anticipate further rollout of the key account management system, as well as IT systems to support the improvement of stakeholder satisfaction with real-time monitoring and response capability.
We also focused on the replacement and maintenance of our operating vehicle fleet, which plays a vital role in general operations and maintaining on-time performance as much as possible.
Our need for capacity expansion has become critical. Terminals are capacity-constrained, and our airside infrastructure such as aprons and runways at all three our international airports need significant expansion and upgrade. In the next two years we begin to develop new facilities, runways and terminal improvements, which are being carefully planned to mitigate potential operational challenges while construction is under way. For additional information on capacity expansion projects, More details
Property development is an important opportunity for market participants to gain revenue and experience from Airports Company South Africa. Property income yielded 10% growth to R756 million (FY2017/18: R690 million), but further growth has been constrained by delays in the rollout of new capacity. Airports Company South Africa owns approximately 1500ha of land across nine airports, which we view as potential to change our business with R3 billion of development projects.
During the year our hotel operations revenue increased by 4% to R156 million (FY2017/18: R150 million).
Property vacancy rates were extremely low in FY2018/19, though this poses its own challenge for relocation flexibility in the face of construction and maintenance work at several airports from next year. However, some of our ageing infrastructure must be replaced in a timely manner in order to improve our service delivery for customers and other stakeholders.
A key achievement for us has been changing our handling of asset management to a real-time view, rather than a maintenance engineering view. We now have a complete life cycle asset management model which is entrenched in our business. This provides us with real-time data on availability and utilisation rates and allows us predictive capabilities.
We have also made changes at organisational structure level to simplify our handling of hotel operations. Previously ring-fenced as a separate subsidiary, we have made a decision for operational reasons to wind down Precinct 2a as a legal entity, which owns 250ha of land adjacent to O.R. Tambo International Airport. The development of the western precinct of O.R. Tambo International Airport, where the Group’s new headquarters will be located, will be developed directly by Airports Company South Africa. Construction of this precinct, which will also house the Civil Aviation Authority’s new premises, commenced in February 2019 and is scheduled for completion by 31 December 2020.
Four new filling stations at our airports are planned through a transformation programme in partnership with franchisors. Our aim is to empower aspiring entrepreneurs by working with petroleum companies to subsidise entry for entrepreneurs.
Given the constraints on aeronautical revenue, the Group is focused on growing non-aeronautical revenue’s contribution to total revenue. Retail revenue growth for the year was 1% to R1.2 billion (FY2017/18: R1.2 billion), making up the majority of non-aeronautical revenue at 36%. This modest growth was mostly on the back of passenger volume growth and inflation. However, ongoing litigation has delayed the transformation of our tenant mix in airport terminals, new offerings and more favourable contracts for the Group.
Despite modest growth during FY2018/19, retail nonetheless made a significant contribution. Ideally, we would like to see aeronautical and non-aeronautical revenue contribute equally to our overall revenue, to ensure our sustainability as a business.
In terms of our strategy in the retail space, our intention is to implement IT systems which will provide us with increased passenger data which will be collected from their time of arrival at any airport.
This will allow us to tailor on-selling solutions to each individual passenger, as well as providing capability for us to communicate with the passenger on issues like flight delays or required information. Our retail solution needs to become one total package from the time the passenger leaves home to the time they leave the airport.
Being a network of airports can work to our benefit: the same passenger information can be made available across networks. Once our e-gates and automated border control processes are fully implemented, this will provide more leisure time for travellers to spend in our retail area, where duty-free stores account for 36% of overall retail revenue.
Airports Company South Africa is now actively driving commercial revenue through a seamless customer proposition and now engages constantly with suppliers, tenants and other stakeholders in a collaborative effort to maximise revenue. We have built dashboards and new analytics for our suppliers through new business intelligence systems and have become more proactive in owning the passenger journey. Our stakeholders have communicated their appreciation of closer collaboration, and we recently staged a retail summit for our top 20 retailers. The level of insight was transparent, collaborative and welcomed.
Car parking and car rental
We have seen revenue growth of 8% to R593 million (FY2017/18: R551 million) in car parking and 16% in car rental to R354 million (FY2017/18: R306 million). Given the economic backdrop this growth is pleasing, but in light of our movement in challenging our commercial offering across the board, our intention is to produce more substantial growth in FY2019/20. Parking revenue has been affected by e-hailing services, but we are engaging with these services to reach a mutually beneficial resolution.
Advertising revenue was impacted by the Group cancelling a tender during FY2018/19 due to litigation. Revenue contracted by 4% during the year to R182 million (FY2017/18: R190 million). Advertising revenue is aligned with broader economic issues and we acknowledge that the industry as a whole is under pressure. The basket in the market available to us, has decreased.
Non-aeronautical revenue (R’000):
|Figures in rand thousand||FY2018/19||FY2017/18||R’000||%|
|Advertising||181 972||189 759||-7 787||-4%|
|Retail||1 178 999||1 185 357||-6 358||1%|
|Parking||593 401||551 836||41 565||8%|
|Car hire||354 060||306 141||47 919||16%|
|Property rental||755 988||690 323||65 665||10%|
|Hotel operations||155 504||150 075||5 429||4%|
|Other||96 530||95 937||593||1%|
We embarked on a digitisation journey to improve the speed of passenger processing, limiting the amount of time spent in queues and putting passengers in control of their journey so they can travel at leisure. Unfortunately, progress with passenger self-service through FY2018/19 was slow, due to the needs to engage and align with all stakeholders in the value chain. We had to push back our plans to fully roll out the paperless travel concept, but we believe by the end of FY2019/20 all necessary systems integration to enable it, should be in place.
Infrastructure asset management
The first 20 years of Airports Company South Africa could be best characterised as entrepreneurial growth: commercialising pockets of land surrounding the airports, implementing new commercial constructs which contributed to a strong non-aeronautical revenue stream. This benefit passes to the passenger in two ways: lounges and the opportunity to shop makes travel more relaxing. Secondly, generating non-aeronautical revenue helps reduce airport taxes needed to fund operations.
The Governance Framework and Operating Model prepared the Group to transition to the “quality growth” phase. That is, consolidating operations across our network of airports and proposing a value offering that could be marketed globally. Airports are infrastructure-intensive businesses, so we structured the Group to:
- Act as an asset owner to internal and external stakeholders;
- Implement principles of asset and occupational safety management; and
- Formalise the practice of integrated airport planning and decide how to further develop our property portfolio.
The following is notable progress for FY2018/19
- A 27% year-on-year reduction in asset break-down time, following a 31% reduction in FY2017/18. Asset breakdown refers to un-planned stoppage of assets (and subsequent repair) that interrupts airport operations. This success is owed to implementing technical monitoring for assets, intensified maintenance programmes for certain classes of assets and implementing a service management programme to forge a deeper working relationship with service providers.
- We have also decided to classify our assets in the categories of core, key and supporting assets. This categorisation describes the criticality of the asset to assure business continuity. Each category has a distinctive approach to aspects such as: maintenance regimes, refurbishment cycles, replacement, service management, assurance, condition monitoring, and in-house skills development. This revised approach will optimise both operating and capital cost.
- In-house development of engineering specification and technical standards for step-out projects2.
- Integrated Master Planning (IMP) has been com-pleted at most of the airports. The outcomes of this work will shortly be seen in expansion projects such as: O.R. Tambo International Airport’s mid-field cargo development and Western Precinct Office Park development, and terminal developments in George Airport and Port Elizabeth International Airport. The IMP is also a key element that informs the Group’s next 10-year build cycle.
Our infrastructure asset management efforts will afford standardisation of operating and maintenance practises; higher equipment availability; timely development of new infrastructure; facilitate learning across sites; and allow us the ability to interrogate and compare service costs. This work paves the way to implement an ISO-standard for asset management across all airports. The work will also help arrest the maintenance and repair cost creep.
All business processes and 80% of the asset management procedures have been revised in the last financial year. These have been aligned to the operating structure and where applicable with asset management industry practise. In the FY2019/20 financial year, full implementation of these will take effect. Airport management ASQ KPI service quality elements pertaining to cleanliness and availability of restrooms and airport facilities exceeded their element target of 4 with a score of 4.05. The table that follows outlines the performance of each construct at different intervals in the year.
Performance rating on airport service quality elements in FY2018/19
|Availability of washrooms||3.95||4.02||3.99||4.03|
|Cleanliness of washrooms||3.90||3.98||3.96||3.94|
We have also developed a revised approach to cleaning. This approach considers the deployment of cleaning staff that synchronises with airport passenger traffic, quality of cleaning materials, use of machinery for certain types of cleaning, and frequency of deep cleaning. This is being implemented across all airports through a competitive bidding process. This standardised approach will also positively contribute to containing operating costs. The appointment of service providers for O.R. Tambo International Airport will be completed by the end of 2019. We expect a significant improvement in ASQ results in coming months.
The capital programme for asset management has been reviewed and prioritised to address the lowest performing assets; regulatory compliance and those that have passed their useful life. Ablution facilities and people movers, mainly at O.R. Tambo International Airport, have been identified for replacement. The firewater design at some airports are also being upgraded to compliance standards. These need to be implemented with due consideration of the day-to-day passenger traffic at airports. In some cases, specialised rigging will be involved as previous airport designs do not easily facilitate major asset replacement. This work is targeted to be completed by the end of FY2020.
Other notable capital programmes include the refurbishment of all commercial assets, such as industrial property, office parks and airline offices. These assets generate approximately R38 million non-aeronautical revenue per month. A condition assessment of ~1 200 pieces of infrastructure has been performed and asset refurbishment priority determined. Suitable service agreements are now being procured so this programme can be implemented. The programme is expected to take between five to seven years at an approximate job cost of R3.8 billion.
The baggage handling system (BHS) at any airport is most critical. In previous years, the serving and maintenance of the system was “surrendered” to original equipment manufacturers (OEM), who had no real interest in transformation. This resulted in an inability to transform a highly specialised technical area. In the past year, we were able to segment the BHS service requirements to different disciplines of engineering, controls and maintenance requirements. These revised specifications were packaged and issued to market. The bids received were promising and satisfied tender requirements. We played the role of “integration manager” and were able to significantly transform this technical area. This revised approach is now being implemented across the Group.
Similarly, the service contract for all X-ray machines has been awarded to a transformed entity. The initial phases proved to be challenging from an administrative and OEM support perspective. This has been worked through and the service provider is now performing at acceptable levels.
We have developed career paths for technical staff (planners, engineers, technicians, safety specialists). The technical performance outputs are articulated along a career ladder. This career ladder also provides for developing technical management capability. Staff who want to remain in a technical role can progress their careers to a level where rewards and benefits are equivalent to those of management. We are now in the process of finalising job profiles before implementation.
Significant progress has also been made with balancing gender, particularly at senior levels. The gender split for managerial staff is 13 female and 17 male. In the past 18 months, eight females have been hired into management roles. Notably, many of them are professional engineers and/or postgraduates.
The new hires have settled in their roles. The succession planning programme has also made steady progress over the past 18 months.
Occupational health and safety
Airports Company South Africa’s approach to occupational health and safety is underpinned by senior management playing an active role in ensuring safety excellence and an expectation of zero incidents. Management is responsible for ensuring that safety audits are carried out and for providing appropriate resources for a safe workplace environment. All personnel are trained on safety responsibilities.
Over and above this policy, several new developments have come to fruition in 2019:
- We awarded service contracts to Novamix Supplies (Pty) Ltd, a B-BBEE Level 1 contributor for medical facilities at airports. They will provide competitively priced primary healthcare facilities for travellers and airport stakeholders.
- We implemented a revised approach to occupational medicals. It considers health risk and exposure for Group job categories when prescribing the employee medical surveillance programme. Novamix Supplies (Pty) Ltd will work with us to implement this service. In time, this service will also be extended to airport stakeholders.
- The Group awarded service contracts to CT Med and Trauma Care (Pty) Ltd, a B-BBEE Level 1 contributor for provision of emergency medical services at airports. This assures the timely and medically capable response during the “golden hour” when a medical emergency occurs. This also includes equipment to perform resuscitations.
- Full implementation and fittings will be done to these facilities by mid-2020.
We have initiated a leadership-led, behaviour-based safety programme. Several discussions at an executive level have been completed to establish the leadership resolve for this programme. Symbolic gestures such as senior leaders directly engaging staff and stakeholders; and senior leaders participating in safety compliance training, have occurred. Another cornerstone of a behaviour-based safety programme is personal awareness.
In FY2018/19 Group staff were incentivised to report safety incidents and/or deviations. This activity keeps safety “top-of-mind” and is a continuous reminder of the hazards of the work environment as staff go about their work. We are also exploring the option to align our safety reporting to an international practice – the Bird Triangle. This renowned lagging approach of performance measurement will enable the Group to proactively implement safety measures.
It is believed that continued focus from leadership, employee engagement and the forthcoming work of establishing “life saving behaviours” for an airport company will tremendously help safety performance. Life saving behaviours are those acts that are the most frequent cause of injury and property damage at the workplace. Breach of lifesaving behaviours is generally considered a breach of an employee’s terms of service. We will work with Labour on how best to implement these. It is encouraging to note that the effort of safety reporting has extended beyond Group employees. Health and safety monitoring will continue to improve and will be developed through FY2019/20 and beyond.
No section 24 incidents have been noted in FY2018/19. Risk assessments have also been completed for each engineering discipline at site as well as selected (higher risk) contractors.
Energy and the environment
The drive to transform the Group’s asset management services portfolio will continue in the FY2019/20 with due diligence studies completed for: HVAC; passenger loading bridges (PLBs); and fuel hydrant systems. We are working to a target that makes us a carbon-neutral business by 2030. In the past year, techno-economic studies for selected technologies to reduce our carbon footprint were completed. A technology implementation programme will now be carried out. Feasibility studies have been completed for energy storage at regional airports and all vehicle charging facilities on airside will use a combination of solar and storage technologies. We are also implementing solar-powered (plus storage) lighting for perimeter fencing. The first application is at King Shaka International Airport.
Technology due diligence has also been completed to use anaerobic digestion to extract methane from airport waste, particularly from the food and beverage section and sewage works. The technology is able to perform but the quantities of waste generated are not sufficient to achieve economies of scale. Additional due diligence will be performed to understand the feasibility of high-rate reactors and confirming the calorific (heating) value of the waste streams.
We have set ourselves the bold ambition to be a carbon-neutral business by 2030. In the past year, techno-economic studies for selected technologies to reduce our carbon footprint have been completed. Technologies such as gas-to-power have the prospect of reducing Group operating costs by as much as R150 million per annum. We continue our solar energy journey.
- The implementation of solar farms at regional airports is nearing completion and pilot studies to implement energy storage at regional airports will commence.
- At all airports, battery charging facilities will use a combination of solar and storage technologies.
- The opportunity to implement solar-powered (plus storage) lighting for perimeter fencing is in progress. The first application is at King Shaka International Airport.
- Other technologies such as electric vehicles, solar thermal, vertical axis wind turbines, and geothermal are being incubated for the next wave of implementation.
- A revision to waste management will be implemented in the Group. Due diligence has been completed and tenders will be issued to market. With a higher level of waste categorisation, we are targeting income generation on some streams of waste so that we can fund the landfill streams.
- It is also expected in coming years that South Africa will implement stricter legislation relating to landfill waste. We have been performing technology due diligence to use anaerobic digestion for treatment of food and sewage. The technology generates methane that can be used as a clean energy source. Work to pelletise airport waste destined for gasification has also kicked off.
- We are implementing water harvesting technolo-gies at Cape Town International Airport that allows one to operate independently of the municipality. Discussions are now in progress to finalise the water management plan in conjunction with the City. Moving forward, the intent would be to replicate these technologies at other airports depending on the investment attractiveness.
International competition for air travel hub status has increased, forcing us to think more carefully about diversification and maximising our potential given our geographical location. Dynamics in the airline industry and changes in traffic patterns have become a significant material matter, but regardless of the makeup of the carrier mix passing through our airports, it is incumbent upon us to ensure that all our stakeholders are provided with a seamless and efficient airport service.
To that end, with the delivery of crucial infrastructure drawing closer, plans are in place to cope with construction and maintenance disruption so that we continue to demonstrate operational excellence and win awards and recognition even as we sweat our assets in the final phases of their life cycle. Our awards haul through FY2018/19 indicates that we will be able to complete our strategic objectives despite obvious challenges, providing a safe, secure and efficient airport service for more passengers to enjoy through 2020 and beyond.
|Element and metric||FY2018/19||FY2017/18||Material changes|
|Electricity consumption in kilowatt hours||235 274 422||240 501 415||Electricity consumption decreased by 0.73%. Up until February 2019, our electricity consumption figures showed a higher level of performance. During the course of March 2019, the O.R. Tambo HVAC system consumed a greater amount of power due to a higher demand for cooling. Electricity generated by solar power installations at our airports was slightly up from FY2017/18, and will continue to increase as the Group ramps up its use of solar power.|
|Water consumption in kilolitres||1 916 380||2 212 623||Our water consumption reduced by 2.34% overall during FY2018/19. During the year O.R. Tambo International Airport suffered a collapse of their 300mm sewer mainline. The line collapsed into a culvert of around 800mm wide by 1800 mm deep. The culvert had to be continuously flushed for a period of six weeks while the sewer mainline was replaced to ensure the disposal of the sewer and prevent the smell from impregnating the terminal building. A considerable volume of water was consumed for this purpose resulting in the airport not recovering to its previous water consumption performance.|
|Fuel and diesel consumption in litres||422 162||636 147||Our efforts to manage fuel consumption by replacing older vehicles and promoting more responsible driving behaviour has resulted in a reduction in fuel consumption.|
|Waste recycled in kilograms (millions)||3 210 986||3 833 117||Waste recycle decreased by 2.96% in FY2018/19. While contracting methodologies remained unchanged during the year, and the heightened awareness of waste recycling will continue.|
|Noise management incidents reported||12||17||Noise complaints have decreased by 29% as a result of the implementation of noise mitigating measures and our interaction with affected parties.|
|Bird strikes||329||338||Bird strikes have decreased by 3% which can be attributed to our airport wildlife management programmes.|