zube,
PRM approaches have not been used for a LONG time as they simply have not had the bodies to open the position.
It will get worse before it gets better.
Don't worry though the CEO has still been getting his bonuses, and the government its dividend, as less staff means less costs to the bottom line.
Lets have a look at this. Figures are boring but they have a tale to tell.
In 2005, prior to the new CEO arriving, ASA income was $645.8m of which $58.2m was profit, $614.4 million of this was from Airways Activity i.e. what the airlines are charged in Nav charges and the provision of ARFF. 60% of this is given to the government (only shareholder) as a dividend. So ASA were charging roughly 9% more than they needed. Dividend given to the 'shareholder' around $35m, leaving around $23 million that ASA retained.
ASA charged 5.4% more to give the government a windfall. Total ASA staff costs were $402.8m.
In 2006 , new CEOs first full year, income was $683.5m, with Airways Activity at $643.4m (up 5% from 2005) and profit now $93.6m. Around $56.6 to the government and $37.4 million retained. ASA now charged 13.6% more than its break even point. It was now charging 8.1 % more than it needed to in order to give the government shareholder a $56.6 million dollar windfall.
Last financial year total income was $744m , $707.3 million was Airways Activity ( remember this is purely derived by airline flying not anything to do with ASA management ) and profit $92m, around $55 million to the government. ASA retain $37m. ASA have charged an extra 7.4% to give the government a dividend. Total ASA staff costs were $402.3m.
Qantas tips in somewhere north of $400m into ASA coffers and Virgin somewhere north of a $100m. That is about $30m from the Rat and $8m from Virgin EXTRA they are charged to give the government a dividend.
What is the ASA CEOs bonus predicated on? It obviously is not on ensuring we have enough controllers to deliver the service that our charter requires us to. Notice that staff costs are actually down $500k in his three years, given that staff get a negotiated increase each year, it is not hard to see what game the CEO has been playing, do not replace staff.
It seems to have come as a surprise to him that he now has less staff. He was told in no uncertain terms in 2005 in meetings with controllers that numbers were already low and it would get worse based on the ageing workforce and overseas opportunities. To make out that he was unaware is a blatant lie. To then 'promote' 100 operational controllers into management positions and further dilute the numbers of operational controllers beggars belief.
Remember any delays are worn by the airlines and the travelling public. ASA will still get their Airways Charges as the planes will still fly even if delayed. It is no skin off ASAs CEO nose.
Bear in mind ,and I sincerely hope it doesn't happen, if there is industrial action from controllers ASA do not lose one cent. The airlines, passengers , and airline staff are mightily inconvenienced and suffer a penalty. Controllers lose wages, under IR laws even if there is a 1 hour stopwork ,controllers will have 4 hours pay deducted (more money for ASA). ASA will still pick up their Airways Charges when flying resumes (just like after bad weather) and the controllers will be working harder to catch up just like the airlines and their staff.
Seeing that ASA is effectively a stand alone Government business it falls under the Government Bargaining Framework. This means that they will NOT backpay when an EBA is finally agreed. At the moment they have not signed a new agreement with any of their staff. With a wages bill of $402m in 2008, this is saving them millions a month , none of which can be recouped by staff. This will all add up on the bottom line.
Making who look good for a bonus?
The fact that airlines are being penalised because someone 'forgot' to make sure they had enough staff to provide the service that is ASAs reason for being is a peripheral issue. You can't be in a job for nearly four years and still be blaming the previous incumbent. Where is the Board? Where is the Minister? Dividends and bonuses are up, who cares?
"QF/DJ XXX hold in a left hand pattern, 2 minute legs, expected delay 20 minutes" " Start clearances required" " 40 minute holding required at Sydney due staff shortage". Sound familiar?
Last edited by max1; 10th Feb 2009 at 01:14.