Waypoint to where?

Turbulence for Airservices amid staff shortages and technology delays Waypoint to where? “We’ve been in the headlines for all the wrong reasons,” acknowledged ATC general manager Jason Harfield. “The fact is, it has not been a good eight months for air traffic services. We have been unable to deliver consistent services for a number of reasons including, but not limited to, staff availability. ” Certainly one fact Harfield told Waypoint delegates was headline grabbing. In 2007 Airservices “lost 15,700 days to illness across an operational workforce of about 900” air traffic controllers – on average over 17 sick days per controller.

This, plus a shortage in controller numbers, compounded by how the controller workforce is structured, has lead to an increasing number of disruptions to air traffic control services across Australia, resulting in increasing incidences of controlled airspace reverting to TIBA (traffic information broadcasts by aircraft) declared airspace – adding to pilot workload, contributing to flight delays and raising safety issues.

“Air traffic controller availability remains an issue and we are doing all we can to fix it,” Harfield promised.

Those service disruptions, and the absenteeism issue are seemingly symptomatic of an air traffic services provider under stress, while trying to reform itself while operating within an aviation industry characterised by rapid growth and airport and airways congestion.

But Russell promises that Airservices is turning the corner in implementing a long running reform program “to achieve long overdue modernisation of the organisation” by focusing on how it recruits, trains and retains its 3000 staff.

Thus far reform has not come easily. “Airservices puts safety first and that can make our culture prone to being risk adverse, and in some cases, change adverse,” Russell noted. “So, bringing about significant change can lead to tensions within our business and, regrettably, that can sometimes affect our relationships with our customers. ” The cornerstone of Airservices’s efforts to meet its personnel challenges is a new strategy document it released at Waypoint – ‘Our Commitment – Our People’, the result of three years of analysis of workforce trends, including demographics, and skills needed.

“It is a blueprint that explains our workforce challenges and, more importantly, our strategy to build the workforce we will need, especially over the next five years,” Russell said.

“It details the people system renovations we are undertaking, including recruitment, training, retention and succession,” he continued.

“It is a commitment from me, as the CEO of this organisation, to the peopleof Airservices about the future. It forms the foundation for the commitment by our board and management to our airline customers that we will never again allow this organisation to get into a situation where we face interruptions to our services because we don’t have enough key people in key areas of our operations. ” Russell promises the blueprint “isn’t a PR exercise that ends with the release of a glossy publication” and has committed that it will be updated annually “to ensure we measure our performance and deliver on our commitments. ” “The strategy will be successful,” Russell promised the Waypoint audience. “But we wouldn’t have wanted to wait too much longer in terms of the demographic problem that we face. Anecdotally we saw quite a lot of people with grey hair around the organisation but we really hadn’t done the necessary work to fully understand what it meant until a couple years ago. I’m confident that with the programs that we’ve put in place . . . that we will recover and we will be able to adequately staff the organisation. But it’s been a bit of a close run thing when you look at the demographic age profile of our workforce. ” The document details how 48 per cent of Airservices’s total workforce is aged 45 years and over. “Much of our corporate knowledge resides with this generation and a large number of them are approaching retirement,” Russell said.

But, “As well as the challenges of an ageing workforce, we have been experiencing higher staff turnover among newer recruits and intense competition in a tight labour market, especially for technical skills, and particularly in the resource states of Western Australia and Queensland. ” Undoubtedly Airservices’s critical staffing area is its air traffic controllers. While there currently is a short-fall in controller numbers – 18 fewer than the required 900 – Airservices expected to have enough controllers online by the end of July to meet requirements. But, “This is an important first step but it won’t solve all the service delivery problems we’ve been experiencing,” said Russell.

“We still have to address continuing high levels of absenteeism and an operational structure which comprises 32 sectors with multiple sectorspecific endorsements. ” Longer term the ‘Our Commitment – Our People’ document sets out strategies to recruit and retain controllers.

“The principal challenge is maintaining our staffing numbers as the expected age of retirement increases,” the document reads. “We have now reviewed our staffing levels and will increase our recruitment to better assure customer service levels. ” Indeed, Airservices now says it will recruit 80 to 100 ATC trainees a year for the next five years, up from 40 a year in recent times. But the document also details how controller recruitment assessment methods are being changed to better reflect the changing nature of the role to improve the proportion of successful graduates; the introduction of new training devices such as a recently introduced $16 million tower visual simulator and a forthcoming new en route simulator; new rostering tools and stand-by arrangements which should reduce the need for controller overtime; the development of an ATC “career model to provide a broader range of opportunities and development” for controllers, recognising that “ATCs may wish to move both laterally and vertically within the operational areas, as well as into non-operational and management roles”; and management and leadership training.

But shorter term it’s no secret that Airservices management faces challenges in working with its controller workforce. “In the past, we have relied on high levels of institutionalised overtime, which has papered over the problems, putting stress on our people, and many of them have had enough,” Russell conceded.

“Unfortunately, I think we’re now paying the price for not tackling this reform program, and what it has revealed, much earlier. ” Just how expensive that price ultimately will be will be discovered as certified agreement negotiations over a new pay agreement with the air traffic controllers’ union, Civil Air, continue. The controllers gained widespread publicity in early June when a newspaper report revealed the union was seeking pay increases of up to 63 per cent over three years.

“This is our vision to solve the problems of attraction and retention,” Civil Air executive secretary Peter McGuane told June 7’s The Weekend Australian newspaper. “There is a shortage of air traffic controllers.

Significant numbers have been lured overseas by more lucrative conditions and this means extra overtime for the (rest), which has contributed to increased fatigue. ” It seems hard to accept that a commercially focused Airservices would accede to such significant pay rises, so it appears unlikely that the organisation’s air traffic controller issues will be easily resolved. But ATC general manager Harfield was at pains to stress there was no link between recent ATC service disruptions and pay negotiations.

“To those who link the current certified agreement negotiations with service interruptions I would simply say that the suggestion is offensive to the controller workforce at large. There is currently no evidence that our service interruptions are industrially based. ” Harfield did highlight that “so far there has been no mass exodus to overseas providers.

The employee initiated separation rate for operational ATCs is currently around 1. 4 per cent – or around 12 controllers a year – and not all of those have gone overseas. ” Nonetheless, the high levels of absenteeism and excessive pay claims is certainly indicative of some level of workplace unrest and stress. This is clearly a painful reform process, for the controllers themselves and Airservices management.

Increased recruiting and training of new controllers, plus retention efforts, are some key aspects to addressing the controller problems, but another is the more efficient use of the existing controller workforce. “Part of the answer is to reduce the number of differing types of airspace sectors, standardise the rostering system, and introduce skills-based rather than sector-specific endorsements,” Harfield detailed. The ATC general manager explained that Airservices currently has over 140 individual airspace sector endorsements, but that a redesign process currently underway will “rationalise these sector-specific endorsements to just seven skill-based endorsements across the en route and terminal operating environments. This will enable us to more flexibly deploy operational staff to where they are needed, when they are needed. ” Other evidence of change within Airservices to address staffing challenges is the development of its training academy in Melbourne, which will deliver training across all aspects of Airservices – for air traffic controllers, aviation rescue and firefighting, management and safety training.

“We are consolidating all our training to the academy in Melbourne, enabling consistent and focused approaches to creating a sustainable, world class workforce,” according to Russell. “We are also renovating the curriculum and systems necessary to ensure that we have a high quality educational facility that is responsive to a rapidly changing industry. ” While Melbourne is home to the Airservices Academy with its long term focus, Canberra is now home to the newly launched National Operations Centre, or NOC, which aims in the shorter term to maximise the air traffic system’s capacity and minimise the effects of congestion. The $3 million NOC was launched at the Waypoint conference by Infrastructure and Transport Minister Anthony Albanese, and is now beginning to provide 24 hour surveillance and coordination of air traffic flow management, with a particular emphasis on increasing efficiency of operations in and out of Sydney.

“Today the NOC provides the Central Traffic Management System – CTMS – into Sydney, and the long range optimisation flow which is that first hour of operations into Sydney in the morning,” said Airservices’s NOC general manager, Stephen Angus.

“Traffic congestion was highlighted with the analysis around Brisbane, Melbourne and Sydney, where we identified there was some $70 million of delay cost that was up for grabs,” Angus highlighted.

“The development of a national traffic management capability with the NOC is now envisaged within the next five years. ” As a first step, Airservices is purchasing a version of the air traffic flow management software tool used by the US FAA for an internal congestion monitoring system to be used within the NOC, and this may form the basis of a national industry capability to optimise traffic flow across the national network.

Another software tool Airservices is deploying to improve ATC efficiency is flightplan conflict software to provide automated aircraft conflict detection, the technological basis for the ability to offer user preferred routes – USPRs – where long haul aircraft can flightplan optimal routings taking into account winds, which is anticipated to deliver airlines significant fuel savings. But the implementation process has been much slower than first anticipated.

“To date we have made well intended commitments to implement this software and consequently USPRs – both of which we have failed to deliver upon,” Peter Curran, Airservices’s national ATC capability manager, told Waypoint.

“In short, for a number of years we have over-promised and under-delivered on this – and we understand that in the process we have disappointed and frustrated our airline customers. ” Unfortunately Airservices has found defects in its flightplan conflict software, delaying the implementation of USPRs.

“Our deployment schedule is to implement the conflict detection software and (roll-out) USPR within the Tasman airspace first and then to other areas,” Curran said. “Once we have proven the software, procedures and training, we intend moving into continental airspace where the most substantial benefits can be realised. ” Interestingly, from the controllers’ point of view, the flightplan conflict software represents a significant shift in responsibilities. “Essentially it will detect conflicts on the controller’s behalf – potentially requiring a complete redesign of the role and eventually even the recruitment of a different skillset,” Curran said. “The challenge to ensure we deploy this software safely must not be under-estimated.

I would venture to compare this change with that of the removal of flight engineers to a two person flightdeck. ” Another Airservices technology roll-out that has suffered delays is ADS-B. The rollout of ADS-B ground stations to provide radar-like surveillance of upper airspace is continuing, albeit behind the original schedule. “Our rollout of ground stations nationwide continues with five more before Christmas – slower than we hoped but this will give us more than half the upper airspace network operational by year’s end,” Curran said.

“The remainder will come on line throughout 2009. ” Meanwhile Airservices used Waypoint to vigorously promote the use of ADS-B surveillance in lower airspace, and highlighted that a decision on the technology’s implementation is becoming critical to avoid the costly acquisition of surveillance radars that ADSB’s adoption would avoid.

“Indecision on ATLAS (ADS-B in lower airspace) has meant Airservices is required to work on dual paths – radar/ navaid replacement, as well as ATLAS implementation. ” Curran noted. “An ATLAS decision must be made this year. We have extended the life of our en route radars, which has bought us some time, but we must begin work to procure replacements no later than September.

“Airservices supports the publication of a mandate for 2012 applying to those aircraft that are required to have transponders today. We believe the mandate should be made as soon as possible. ” Following industry consultation on ATLAS, a discussion paper was finalised late last year, but the federal government, no doubt delayed by the change of government and the arrival of a new minister, has yet to make a firm decision over whether the project should go ahead.

However, Greg Russell told Waypoint that progress is again being made on ATLAS, which has public backing from Qantas and Virgin Blue and major industry groups.

“As late as this morning (Department of Infrastructure & Transport secretary) Mike Taylor, (acting CASA CEO) Shane Carmody and myself met to discuss the ATLAS issue,” Russell informed Waypoint attendees. “We’re mindful of the delay that has occurred, we’re mindful of some frustration in the industry.

“It’s been agreed that we will produce a document that will go to the Airservices board at its meeting in the first week of August, and that in effect Airservices will become the proponent of this issue. Our aim is to work with the Department and CASA during the next few weeks to bring together the key issues, look at the issues of potential risk and what mitigations may need to be in place, and it particularly goes to the issue of on-going radar.

“Post the consideration by the Airservices board in August, our aim is then to let CASA do some mitigating safety work that may need to be done, with a view to getting something we hope to the minister in September. We think that there is a window here. There’s a lot of goodwill within the portfolio to move forward on this thing, and we sense that now is the opportunity.

Watch this space over the next few weeks. ” Airservices management also used Waypoint to commit to the aviation industry to introduce publishing quarterly reports into the progress of key technological issues such as ADS-B and USPRs.

Investments in new technologies such as these forms part of Airservices’s expanded capital expenditure program.

“In relation to capital expenditure, we are in an upward cycle of investment following a lack of investment in 2000 and 2001 where, because of the threat of privatisation, the organisation ran the asset base down, the legacy of which we are now trying to address,” Airservices chief financial officer Andrew Clark told Waypoint. Clark said planned annual capital expenditure for the next five years will be in the order of $150 million per annum.

Ongoing and future capital expenditure programs for Airservices include its construction of new air traffic control towers at Melbourne, Adelaide, Canberra and Rockhampton and ARFF fire stations, replacing ILSs at key capital city airports, and further software and hardware upgrades to the TAAATS air traffic control system.

Some longer term capital expenditure plans fall outside Airservices’s current long term pricing agreement, and so priorities will be discussed with industry. The next pricing plan is another item on Airservices’s to-do list, with the new agreement due to be considered by the ACCC in early 2009 before its introduction in 2010.

CFO Clark used Waypoint to ask industry for input into how the new agreement is structured, and detailed how Airservices is considering changes over the current agreement.

“We have modelled a series of options for each service line of en route, terminal navigation and ARFF, and have included options for service disaggregation; the different bases of charging; and different price thresholds.

For example we are looking at options for splitting en route charges to oceanic and continental; options around tonnes versus category versus landings as a basis of charge; and looking at different aggregation of assets and costs. ” Airservices was due to release an options paper on the new pricing agreement in late July or early August.

From controller shortages to critical technology rollouts to negotiating a new charging agreement with the aviation industry, it’s clear Airservices is an organisation facing key challenges in the midst of an ambitious and wide ranging reform process.

“We are now tackling some of the tough issues, issues that we haven’t touched before,” Greg Russell told Waypoint. “We are working our way through a comprehensive program to achieve long overdue modernisation of the organisation. I acknowledge that we still need to do more to reform the core of our operations. Reform to make the organisation more relevant to the needs of the aviation industry, an industry which is facing its own difficult challenges. ” The aviation industry that Airservices serves is certainly facing its difficult challenges, but it’s clear Australia’s ATM service provider is facing key challenges of its own, and that the next few years loom as critical in Russell’s reform and reshaping of it.