OUTCOME PERFORMANCE

When I became the Chief of Air Force in July 2005, I delivered four key messages to develop and support the Air Force to achieve its goals in a productive, professional and efficient way. Outlined below are the Air Force's achievements during 2005–06 that are consistent with each of the four messages.

"We will be an Air Force focused on achieving operational and governance excellence—we will be the best that we can be, with what we have, here and now".

The Air Force provided, and continued to develop, the capabilities to conduct offensive and defensive counter-air operations, land and maritime strike operations, offensive air support, support for combat operations, wide and focal area surveillance, maritime patrol and response, search and rescue, and tactical and strategic airlift, including aeromedical evacuation, as outlined below in our professional outcomes.

Domestically, the Air Force conducted border control initiatives in the north of Australia. The Air Lift and Combat Support Groups made substantial and important contributions to the relief effort, Operation Larry Assist, following the cyclone that devastated parts of north Queensland. The Air Combat and Surveillance and Response Groups conducted defensive counter air operations in support of Operation Acolyte, supporting the Melbourne Commonwealth Games. No. 41 Wing deployed a new Tactical Air Defence Radar System and communications suite to a remote site in the Melbourne hills to collect surveillance information which was fed back to the Aerospace Battle Management network and subsequently fed to the fighter aircraft on combat air patrol over Melbourne. The P-3 Orion flew over 1,000 missions in support of surveillance of Australia's sea approaches in Operation Relex II.

Regionally and internationally, the Air Force supported Operations Catalyst, Slipper, Citadel, Spire, Astute, Anode, Bali Assist II, and Pakistan Assist. The deployment of C-130 Hercules aircraft in the Middle East Area of Operations continued throughout the year, having now amassed more than 1,000 air logistic support and aeromedical evacuation missions since the initial deployment. The P-3 Orion aircraft continued their intelligence, surveillance and reconnaissance role in the Middle East Area of Operations, flying almost 900 missions since operations began.

In addition, the Air Lift and Combat Support Groups made substantial and important contributions to humanitarian and disaster relief activities in the aftermath of the Bali bombings in October 2005 and Operation Pakistan Assist in November 2005. Combat Support Group also provided specialist airbase support to deployed forces in Timor-Leste, Solomon Islands and the Middle East Area of Operations. Notably, the Air Traffic Control detachment at Balad Air Base in Iraq returned to Australia after completing its mission.

The capacity to sustain operations and training was maintained through an extensive support activity. Delivery of capability was successfully supported by the generation of officers, airmen and airwomen through our training organisations.

"We will continue to be a values-based Air Force, with people at the core of our capabilities and our concern. Above all else, we will value our Values".

The Air Force's values-based culture is demonstrated through continued good recruiting achievements and healthy retention rates. We rely on our people to deliver capability and achieve the Government's outcomes. The year was characterised by high operational tempo in support of operations, disaster assistance and recovery, resulting in increasing pressure on our people. The men and women of the Air Force once again rose magnificently to the challenge.

"We will keep an eye on our vision and seek innovative means to achieve it".

A number of enhancements to the F/A-18 are under way as part of the Hornet Upgrade Program to ensure continued air combat capability in the lead up to the planned withdrawal of the F-111. The air combat transition plan underwent detailed development and Australian participation in the Joint Strike Fighter program was further refined. The first F/A-18 with avionic enhancements was accepted into service in 2006, while the long-range Joint Air-to-Surface Stand-off Missile and improved short-range Joint Direct Attack Munition were selected as part of the program.

Detailed planning for the introduction of the C-17 Globemaster III began and planning for the introduction of the Wedgetail Airborne Early Warning and Control aircraft and the Multi-Role Tanker Transport aircraft continued with both aircraft flying for the first time in 2005–06.

"We will join together in the pursuit of Exciting, Enjoyable Professionalism."

The dedication and professionalism of Air Force airmen and airwomen and our reputation features in accolades from within Australia and from our friends and allies overseas. The Air Force is rightly regarded as being among the world's most capable and professional forces, commensurate with size, by our major allies.

Safety is of great concern to Air Force members and the Directorate of Defence Aviation and Air Force Safety continued to develop a number of strategies to enhance the integration of safety into everyday culture. In particular, the Directorate conducted a number of safety related courses to ensure individuals were equipped with the necessary knowledge and tools to support the RAAFSAFE Safety Management System.

The Air Force team has met the challenges put to them over the past 12 months and has successfully delivered Government outcomes. The high standard of results achieved truly reflects the approach to work of all Air Force people, whether they be permanent members, reservists, or civilians.

Capability Performance Information

Output 4.1 Capability for Air Combat Operations

Air Combat Group is responsible for the provision of air combat capability for the Air Force, including F/A-18 and F-111 aircraft, crews, weapon systems and support infrastructure to deliver the required capability to sustain air control, maritime and land strike, offensive air support and limited reconnaissance roles. Hawk Lead-In Fighter aircraft and PC-9 Forward Air Control training aircraft also contribute to this capability.

Output 4.2 Capability for Combat Support of Air Operations

The Combat Support Group provides operational support to expeditionary air bases within Australia and overseas.

Output 4.3 Capability for Surveillance and Response Operations

The Air Force's capability for surveillance and maritime response operations is provided by the Surveillance and Response Group. The provision of P-3 aircraft, sensors, weapon systems, personnel and battle space management elements enables intelligence support, surveillance and reconnaissance operations. In addition, the P-3 Orion can conduct maritime strike, attack targets underwater and perform search and rescue. Battle space management elements conduct air defence and airspace control.

Table 2.35 Capability for Air Combat Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Preparedness levels demonstrated through F/A-18 and F-111 participation in Exercises Kakadu 05, Extendex 05, Red Flag 06, and Operation Acolyte.
Achieve levels of training that maintains core skills and professional standards across all assigned warfare areas.	Achieved. The Group's training objectives have been metthrough participation in a number of major exercises.
71 F/A-18—13,000 flying hours	12,015 hours (92 per cent). Achievement was limited by issues associated with ageing airframes, upgrade programs and the capacity of qualified technical staff.
28 F-111 (17 F-111C; 4 RF-111C; and 7 F-111G)—3,500 flying hours	3,458 hours (99 per cent). In line with the logistic support concept, two of the operating F-111G aircraft were placed in long-term storage during the year, reducing the operating fleet size to 26 aircraft.
33 Hawk Lead-in Fighter—7,500 flying hours	403 hours (85 per cent). Ongoing issues with rebalancing the workforce as well as equipment issues restricted the capacity to fully achieve the target.
4 PC-9/A (Forward Air Control training role only)—1,030 flying hours	4 PC-9/A (FAC)—986 hours (96 per cent). This achievement was a large improvement over the previous year and indicates that Forward Air Control aircraft serviceability issues are largely rectified.

 

Table 2.36 Capability for Combat Support of Air Operations

Performance Targets	Performance
Achieve levels of preparedness directed by Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Preparedness levels demonstrated by ongoing deployments to the Middle East, and short notice deployments to the Solomon Islands and Timor-Leste for peacekeeping operations, and to Pakistan for humanitarian relief operations.
Achieve a level of training that maintains core skills and professional standards in conjunction with Corporate Services and infrastructure Group and the Defence Materiel Organisation across all operations support areas.	Partially achieved. Operational commitments continued to place significant pressure on training programs. The training opportunities available to Air Force personnel working in the Corporate Services and Infrastructure Group were limited by the commercial restructure of their business practices. Programs are in place to address the recent lack of collective training needed to maintain high-end combat support skills.
Provide the level of preparedness required based on a force structure of: two combat support wings; one expeditionary combat support wing; one combat Reserve wing; one airfield defence wing; and one health services wing.	Substantially Achieved. The levels of preparedness continued to be impacted by overseas operational commitments. The amalgamation of two combat support wings into one has been completed, placing all operational airbases under a single combat support wing. This is expected to enhance the command and control, standardisation and efficiency of these bases and contribute to the rebalance of Air Force capability. The combat Reserve wing was transferred to Training Command on 1 January 2006.

 

Table 2.37 Capability for Surveillance and Response Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Preparedness targets were met or exceeded, as demonstrated by ongoing operational commitments to Operations Slipper, Catalyst, Relex II, Acolyte and Astute. Achievements included deployments of small air traffic control elements to the Middle East and Timor-Leste and the deployment of a TPS77 surveillance radar at the Melbourne Commonwealth Games.
Achieve levels of training that maintains core skills and professional standards across all assigned warfare areas.	Achieved. While delivering core skills, the high operational tempo placed significant pressure in some areas. In particular, 92 Wing was constrained in its capacity to complete all non-core training activities.
Maintain the Jindalee Over the Horizon Radar Network.	Achieved. The Jindalee Operational Radar Network operated for the full year and supported ongoing research and development and surveillance activities.
19 P-3 Orion aircraft—8,200 flying hours.	19 P-3 Orion aircraft—7,418 hours (90 per cent). Achievement was limited by ongoing operational commitments and reduced availability of technical staff due to operations in multiple locations.

Output 4.4 Capability for Airlift Operations

The Air Lift Group provides airlift capability in support of operations. This includes airlift aircraft, crews and weapon systems providing air logistics support, airborne operations, aeromedical evacuation, special operations, search and survivor assistance, VIP flights, air-to-air refuelling, navigator training and surveillance operations.

Table 2.38 Capability for Airlift Operations

Performance Targets	Performance
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time of less than 12 months.	Achieved. Preparedness was demonstrated across all Air Lift Group platforms by continued and sustained deployments to the Middle East Area of Operations as well as rapid and sustained responses to numerous ADF and humanitarian operations including Operations Acolyte, Larry Assist, Anode and Astute.
Achieve levels of training that maintains core skills and professional standards across all assigned warfare areas.	Achieved. Air Lift Group's core training objectives were achieved but some non-core training events were delayed by operational requirements.
24 C-130 Hercules—14,000 flying hours.	24 C-130—13,149 hours (94 per cent). Achievement was limited due to operational and post-operational commitments, secondment of personnel to support the introduction of the C-17 Globemaster and implementation of upgrade programs.
4 B-707—1,400 flying hours.	4 B707—1,289 hours (92 per cent). Achievement was limited by the age of the aircraft, which affected aircraft availability and the cancellation of some tasks.
14 DHC-4 Caribou—4,100 flying hours	14 DHC-4—3,282 hours (80 per cent). Aircraft serviceability and logistic facility issues contributed to the underachievement.
2 B-737 BBJ—1,200 flying hours.	2 BBJ—1,273 hours (106 per cent). Overachievement resulted from higher than anticipated tasking.
3 CL604 Challenger—2,400 flying hours.	3 CL604—1,934 hours (81 per cent). Lower tasking and damage to one aircraft in the early part of the year contributed to the underachievement.
8 B300 Beechcraft Kingair Navigator Training aircraft—4,200 flying hours.	8 B300—4,457 hours (106 per cent). Overachievement reflects the earlier than planned completion of aircraft modifications.
2 PA34 Seneca—793 flying hours.	2 PA34—690 hours (87 per cent). To overcome transitional B300 issues, two PA34 Seneca were leased to conduct the initial ten sorties of the Navigator/Observer training curriculum. This ceased in December 2005 due to satisfactory early completion of the training program.

Cost to Government

Table 2.39 Outcome Four—Air Force Capability for the Defence of Australia and its Interests

	Budget Estimate(1)	Additional Estimate(2)	Actual Result	Variation(3)	Variation(3)
	2005–06	2005–06	2005–06	2005–06	2005–06
	$'000	$'000	$'000	$'000	%
INCOME
Revenue
Goods and services	43,883	130,828	174,395	43,567	33.3
Interest	–	–	12	12	–
Other revenue	46,768	65,823	30,726	–35,097	–53.3
Total Revenue	90,651	196,651	205,133	8,482	4.3
Gains
Net foreign exchange Gains	–	–	–	–	–
Assets now recognised	13,829	99,552	183,805	84,253	84.6
Net gains from sale of assets	–	–	–	–	–
Other gains	–	–	3,813	3,813	–
Total Gains	13,829	99,552	187,618	88,066	88.5
Total Income	104,480	296,203	392,751	96,548	32.6
Operating Expenses
Employees	1,475,647	1,439,437	1,428,458	–10,979	–0.8
Suppliers	2,191,900	2,233,489	2,113,955	–119,533	–5.4
Grants	282	1,535	1,220	–315	–20.5
Finance Cost	7,478	6,365	19,948	13,583	213.4
Depreciation and amortisation	1,056,379	1,172,537	1,208,528	35,991	3.1
Write down and impairment of assets	27,695	117,710	218,549	100,839	85.7
Net foreign exchange losses	–	–	14	14	–
Net losses from sale of assets	–	3,695	1,587	–2,108	–57.0
Other expenses	–	3,815	758	–3,058	–80.1
Total Expenses	4,759,381	4,978,582	4,993,016	14,434	0.3
Price to Government for Outcome Four	4,654,901	4,682,380	4,600,266	–82,114	–1.8

Table 2.40 Breakdown of Outcome Four by Output

	Budget Estimate(1)	Additional Estimate(2)	Actual Result	Variation(3)	Variation(3)
	2005–06	2005–06	2005–06	2005–06	2005–06
	$'000	$'000	$'000	$'000	%
Output 4.1—Capability for Air Combat Operations	1,769,462	1,768,420	1,790,833	22,413	1.3
Output 4.2—Capability for Combat Support of Air Operations	761,662	776,988	741,906	–35,083	–4.5
Output 4.3—Capability for Surveillance and Response Operations	1,104,931	1,132,277	1,081,070	–51,206	–4.5
Output 4.4—Capability for Airlift Operations	1,018,846	1,004,695	986,457	–18,237	–1.8
Price to Government for Outcome Four	4,654,901	4,682,380	4,600,266	–82,114	–1.8

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