Page 4 - SCAA Annual Report eCopy 2020
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SCAA Annual Report 2020                                                                                                                                                                         SCAA Annual Report 2020

               Chairman & CEO’s Report                                                                                                Key Achievements
                                                                                                                                      Although it has been a year dominated by the financial impact of COVID-19, we haven’t lost sight of other critical
                                                                                                                                      programs that contributes towards our success, particularly in the areas of safety and airport operations. We are
                                                                                                                                      proud to highlight some of our notable achievements. SCAA successfully relocated and modernized its Emergency
                                                        gainst  the  backdrop  of  an  excellent  business  year  for  SCAA,          Operations Centre (EOC). We now have a fully equipped central command and control facility where the principles of
                                                        where Seychelles  International  Airport,  celebrated record                  emergency preparedness and emergency management can effectively and efficiently be carried out.
                                                        passenger numbers, it  would have been impossible to foresee
                                                        the challenges 2020  would bring.  The unexpected COVID-19                    In line with new health measures and guidelines, the Airport Management team coordinated the implementation of
                                               Apandemic, with its subsequent border closures and collapse in                         all the necessary physical modifications and additions to the Terminal facilities, as well as adjustment of procedures
                                               travel, delivered a crisis of unprecedented magnitude and created havoc                and processes at both landside and airside were implemented which successfully allowed for the resumption of
                                               for the global aviation industry. SCAA has not been spared from the crisis,            international commercial operations.
                                               making 2020 the most challenging year in its history.
                                                                                                                                      The Aviation Security Division have also successfully introduced a centralized Airport Permit Office on the concourse
                                               Traffic and Financial Snapshot                                                         of the Seychelles International Airport. The office is fully staffed and provides for a more conducive work environment,
                                               2020 kicked off on a good note, where we recorded an increase in passenger             as well as being more accommodating to its customers.
                                               arrivals for the months of January and February over 2019 figures, by 11%
                                               and 3% respectively. We were on track to achieve another year of excellent             Despite the downturn in passengers and landings, and re-arrangement of manpower as per their business continuity
                                               traffic and business performance. In March, International passenger                    plan, The Air Navigation Services (ANS) continued to perform and maintained continuity and availability of Air Traffic
                                               arrivals quickly plunged by 49% at Seychelles International Airport (SIA) and          Services (ATS), Aeronautical Information Services (AIS) and Search And Rescue (SAR) services at all times. The ANS’
                                               domestic passenger traffic also declined by 43% over the same period last              dynamic team also placed tremendous efforts and progressed in the Air Traffic Management (ATM) Modernization
                                               year.                                                                                  Project, successfully closing the tender and signing project contract for Recorder, HF and VCCS.

                                               Similarly, as was the case for the majority of countries, in a bid to keep the         Although COVID-19 abruptly slowed the projected progress of the Safety & Security Regulation department, the focus
                                               virus at bay, we had to close our borders from April to July for international         to beef up internal human resources capacity and expertise was not over looked. During 2020 they championed
                                               scheduled operations, only allowing repatriation and cargo flights  to                 the oversight function, and worked tirelessly and closely with local operators in ensuring adherence to regulatory
                                               continue. For the first time ever, traffic at SIA airport was at a standstill and      standards and recommended practices in line with the new normal. The SSR team is looking forward to the renewal
                                               this contributed to the drastic decline in passenger throughput recorded at            of vital operations that will allow them to effectively and consistently implement their safety oversight requirements,
                                               year end, by 67%, from 1.2 million to 401,663. Aircraft movements dropped by           and to improve their Effective Implementation (EI) ratings in the upcoming ICAO audits.
                                               53%, with a total of 19,923 landings, while total cargo throughput fell by 41%
                                               to 6451 tonnes. The sharp reversal of traffic growth was felt across all the           We also note the added value brought about by SCAA’s engagement in the Carbon Offsetting and Reduction Scheme
                                               airport business community, from aviation to retail and car-hire operators             for International Aviation (CORSIA). In August 2020, SCAA submitted to ICAO its very first CO2 emissions report as
                                               and inevitably created a deep dent in our revenues. SCAA closed the financial          part of its Monitoring, Verification and Reporting requirement. We are positive that this will showcase our efforts to
               year 2020, with a total revenue of SCR269.4 million, 47% below previous year. Total expenditure (including depreciation)   increasing awareness about the impact of the industry on the environment.
               amounted to SR 317.9 million, resulting in a total net loss, (after depreciation and business tax) of SR33.89m.
                                                                                                                                      To strengthen its corporate performance management, SCAA developed a Strategic and Reporting Planning
               Our Strategic Response                                                                                                 framework that ensures consistent planning and reporting and also ensures that SCAA complies with all its external
               Under the leadership of our Board and Management Team, SCAA’s immediate strategic response to the crisis was guided    planning and reporting obligations.
               by the following principles: ‘protect our people’, ‘no compromise to safety and security’, ‘Safeguard our connectivity
               and boost confidence in the travelling public’ and ‘maintain our financial sustainability’. Alongside these principles, we   Outlook
               were also guided by public health and ICAO guidelines and recommendations. The strategies implemented allowed          Our organisation is well on its way to finalize its 5-year Strategic Plan, a crucial document that will highlight its
               SCAA to continue functioning and effectively maintain business continuity at our airports.                             reform strategies and direct its focus and resources, in the midst of the COVID-19 crisis. The pandemic also provided
                                                                                                                                      prospect for SCAA to expand its financing options for critical capital projects and was further guided by its Board to
               Some of the key actions that were taken were as follows: we developed a comprehensive ‘COVID-19 Guidelines &           put forward a solid Investment Plan. The Investment Plan will tackle infrastructure projects that addresses volume
               Standard Operating Procedures’ to keep our people, passengers and visitors safe whilst at SIA and Praslin airport; we   constraints and identified safety and security risks as well as business continuity risk in the next 5 years. We remain
               significantly reduced our operating expenses and capital expenditure through implementation of various cost cutting    conscious that the road to recovery will be a long and hard one, but we are hopeful and look optimistically to the
               measures and capping our critical capital expenditures at SCR 58 million; we also extended financial relief measures   future. The aviation industry has always shown resilience and we are confident that as borders begin to re-open
               to the airline operators, concessionaires and other business tenants. SCAA also actively participated and contributed   across the globe, international travel will resume and connections to SIA will be established. It is certain that roll out
               to high level national discussions on the country’s COVID-19 response and recovery measures, alongside the Ministry    of COVID-19 vaccines will be the foundation upon which the industry’s recovery is built, but equally, the measures
               of Tourism, Civil Aviation, Ports and Marine, Health and other key stakeholders.                                       SCAA have taken throughout 2020, financially and operationally, put us in a strong position to manage through until
                                                                                                                                      that time.
               Overall, the cost cutting strategies and other measures implemented had a direct impact on the achievement of
               planned activities and projects for the year which also undeniably dampened staff morale and affected performance      To conclude, on behalf of the Board and management team, we would like to thank our hard-working people for their
               targets.  However, we are proud to say that despite the setbacks, we were able to safeguard our staff salaries and     incredible efforts, bravery and solidarity in 2020, and also thank our stakeholders and shareholder for their ongoing
               retain 100% of our workforce, undeniably our greatest asset.                                                           support.

               Creating a COVID Safe Environment for Our People                                                                       Let us remain strong and united as we see our industry through these tumultuous times.
               As we navigated the crisis, at all times, we maintained focus on the importance of the health and safety of our frontline
               workers, while maintaining critical airport functions. With the support of our Health & Safety Unit, education sessions
               and health measures rolled out across all our offices and the terminals in line with international standards. Close
               attention was given to cleaning and hygiene, staff protection and physical layout. Masks, gloves and hand sanitizers
               were made available  to all staff and airport  workers. SCAA also implemented strict  temperature screenings and
               contact tracing measures at specific offices and gate access points. In line with national guidelines, non-operational
               staff were also allowed to work from home as a precautionary measure to reduce the risk of transmission.                                                                    Mr. Garry Albert         Mr. Suketu Patel
                                                                                                                                                                                        Chief Executive Officer           Chairman



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