Sustainability Report Body__16_05-11-09.indd

Transcription

Jordan Aircraft Maintenance Limited
JorAMCo
OUR KEY SUSTAINABILITY PERFORMANCE
Sustainability Issue
Good Governance, AccountAbility, and Transparency
Management Excellence
Environmental Performance
Attracting, and Retaining
Top Talent
Health and Safety
Human Rights
Customer care
Community Development
Key Performance Indicators
Independent directors
# of reported regulatory incidents-Audit Findings
GRI Application Level achieved
# of stakeholder groups involved in sustainability
assurance
Ratio of improving sustainability KPIs
Water consumption (m3)
Electricity consumption (MWh)
Fuel consumption (M3)
Greenhouse Gas (GHG) emissions (tonnes)
Total # of employees
Average training hrs / employee
Turnover rate (%)
Women % of employees
Women % of management
# Lost Time Injuries (LTIs)
# Lost Days
# Fatalities
Safety training (# employees trained)
# of reported human rights-related incidents
Supplier compliance (# of incidents)
Customer privacy complaints / incidents
On-time aircraft turn-around-time performance
Donations to community (US$)
Amount spent on local suppliers
% local hiring
2005
86%
34
Performance
2006
2007
86%
86%
29
29
New Indicator
New Indicator
N/A4
N/A
1,826.5
163
1,880.8
628
29.7
13%
3%
0.1%
N/A
N/A
0
N/A
0
N/A
99.5%
33%
16%
30,000
75,000
2,760.3
3,144.8
201
228
2,714.3
3,091.0
780
896
26.0
21.4
5%
7.1%
3%
3%
0.1%
0.1%
45
76
351
597
0
1
N/A
30
New indicator
New indicator
0
0
New Indicator
N/A
900,000
New indicator
99.5%
99.5%
2008
86%
31
B
0
33%
29,846
4,450.5
148
3,885,0
942
20.2
11.6%
3%
0.1%
64
620
0
100
0
N/A
99%
FOREWORD
In recent years, business shareholders interest has shifted from profit generation to
one with wider responsibilities of positive contribution to society while minimizing
negative impact on the environment.
Being an aware member of the Community, JorAMCo has joined in, in the endeavor
of balancing economic, social and environmental aspects of its operation. In this
report we are trying to capture JorAMCo’s efforts on its sustainability journey.
Preparation of this humble report prompted lending the expertise, efforts and time
of few good hands and minds,
Especially, are those of Sustainability Excellence Arabia, SEA, Team as represented
by their CEO Mr. Darin Rovere and his VP Mr. Mohammad Jebreel and other SEA
staff, who spared no efforts to make this report come to Reality.
When and where needed, the support of JorAMCo CEO’s Office was always prevalent.
The Continuous Improvement Office engagement in compiling the needed data
for the report template checklist according to GRI Indices, organizing all activities
needed for building up the body of the report and the final validation and honing
was all vital for the report completion.
The essential and invaluable services of JorAMCo IT departments on report graphic
design extended by the creative hands of Ziad Nasir-Addine and Hisham Shamlawi
backed by the support of their CTO Bassem Masri were superlative and deeply appreciated.
The Marketing Office efforts on checking the marketing and outlook aspects of the
report were evident and supportive, many thanks to Mr. Hussein Tarawneh and his
team.
Last but not least, all the salutations to the good colleagues at different JorAMCo
departments who involved themselves and participated in the making of this report especially those at; Finance, HR, Operation, QA, MS and other departments.
Mohammad Kh Shamayleh /
Sustainability Coordinator,
General Manager / Continuous Improvement
Jordan Aircraft Maintenance ltd, JorAMCo.
Table of Contents
Introduction by CEO
4-5
Overview of JorAMCo
7-9
Our Stakeholders
10 - 11
Our Key Sustainability Issues
12
Our Sustainability Performance
13
Scope of this Report
14 - 15
Corporate Governance
17
Management Approach: A Focus on Quality Assurance
19 - 21
Customer Satisfaction and Service Responsibility
22 - 23
Economic Impact: Growth and Development
24 - 25
Attracting and Retaining Top Talent
26 - 29
Health & Safety
31
Human Rights
23
34 - 37
38 - 39
Resources
40 - 43
GRI Index
Acronyms
Glossary
Request for Feedback
INTRODUCTION BY CEO
A year of growth and achievements
Bashir Abdel Hadi
Chief Executive Officer
Sustainability management and reporting
2008 marked a number of important milestones for JorAMCo as we continued our
trajectory of major growth and development. Most significantly, it was our first
full year of operations based on our current hangar capacity, after completing the
doubling of that capacity in September 2007. Two of the most notable challenges
relating to this growth have included a dramatic increase in human resource requirements and staffing, and increased complexity of operations scheduling and all
related operational activity.
This growth has challenged us to mature as a company across all facets of our business. It halso challenged us to expand our view of our operations and impacts on the
industry, and howwe create value both for our shareholders and Community. Areas
of business practice that we have traditionally managed based on good common
sense, such as health and safety and our environmental impacts, increasingly require systematic and diligent approaches to ensure that these are as well managed
as other areas of our business. These issues are not just responsibilities which we
take very seriously, they also represent new growing opportunities, in the form of
increased; efficiency and productivity, cost saving, service capabilities, the strength
to attract and retain top talent, and reputation enhancement.
In response to these challenges and opportunities, we have chosen to adopt an approach to business called sustainability management. Sustainability management
is the integrated management of economic, environmental and social performance
in a way that creates maximum value for both business and its stakeholders over the
long-term. It involves enhanced stakeholder relations to ensure an excellent understanding of stakeholder priorities and considerations, and then involves working
more closely with those stakeholders to arrive at innovative solutions. It is widely
considered to be the next step in management excellence. For JorAMCo, it promises
to be a helpful framework for capturing this wider range of business aspects that
need to be systematically managed as we continue to grow as a firm.
Sustainability management is a relatively new concept in the Arab world (even
though it may have been practiced to different extents under differing names).
Very few companies report on their sustainability performance. We are proud to
be one of the first sustainability reporters in Jordan and in the Arab region. We are
also, to our knowledge, the first independent aircraft maintenance, repair and overhaul (MRO) company in the world to issue a sustainability report. We have used the
G3 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), the
leading international guidelines on sustainability reporting, in the development of
this report. We self-declare this report to be Level B, and the GRI has confirmed
this.
INTRODUCTION BY CEO (CONT.)
Accomplishments for 2008
and priorities for 2009
2008 accomplishments across all aspects of sustainability included a growth in
number of employees of 9% (55% growth since end 2005) all of whom were
sourced in Jordan, the launch of the JorAMCo training academy, 27% growth in
number of clients, hiring of a full-time staff to implement a health and safety
management system, early implementation of energy saving techniques in our
hangars, and increased profitability.
In 2009, despite any impacts of the global economic crisis, we expect business to
continue to grow, on the shadow of the tremendous industry-defying growth that
had occurred in the region prior to the global crisis. Our priorities include continuous improvement in the quality of our operations, services, and client satisfaction;
the continued strengthening of our workforce, including our ability to attract, develop and retain top qualified talent in our field; and improved safety performance
and the adoption of a health and safety management system. In addition to these
highest level priorities, we also aim to strengthen our baseline data relating to
environmental impacts and initiate performance improvements that simultaneously positively impact our financial results. Beyond our own operations, we will
strengthen our voice in promoting sustainability management in Jordan and the
region, including in our role with the Arab Sustainability Leadership Group, ASLG.
As we reflect on 2008 achievements and 2009 priorities, I would like to make a
special thanks to our employees – those who have participated in achieving this
growth, and those who have recently joined us, all of whom have been integral in
our successes to this point, and upon whom our future success depends. I would
also like to thank all of our stakeholders, from our clients to our investors, business
partners, communities, and beyond. We very much look forward to continuing to
strengthen our relationships with you as we move into 2009. We also hope you
find this report to be a useful summary of our overall progress, and we welcome
your feedback on how we can better capture our performance and those aspects of
our performance that are most important to you.
Bashir Abdel Hadi
sss
OVERVIEW OF JorAMCo
The Jordan Aircraft Maintenance Ltd, JorAMCo, is an independent maintenance,
repair, and overhaul, MRO service provider offering a range of airframe maintenance services to Airbus, Boeing and Lockheed and Embraer aircraft fleets.
JorAMCo - headquarter and operations - is located at Queen Alia Airport in Jordan,
with a recently expanded hangar space of 30,000 square meters.
JorAMCo started its operations as the Royal Jordanian’s Maintenance and Engineering Department in 1963. Following the government’s decision in October
2000 to privatize and restructure the airline, JorAMCo was officially launched as an
independent MRO service provider.
In 2005, through an international bidding process, 80% of JorAMCo was acquired
by Abraaj Capital, a private equity investment company based in Dubai, while
the remaining 20% was retained by the Jordanian Government through Royal
Jordanian.
Our Vision : is to maintain a successful world-class MRO business recognized for its
safety standards, quality and best combination of price and turn-around time.
Our Mission : is to develop into a major player in the aircraft maintenance, repair
and overhaul business by focusing on capabilities, reputation for quality and competitive pricing.
Over recent years the Middle East aviation trend has continued to defy global industry trends, delivering high growth and profitability. While the global economic
crisis will impact this growth, regional trends are expected to remain comparatively
strong. At JorAMCo, we have particularly felt the regional up-trend and have focused all our efforts into maximizing our potential within this new reality. High
quality service and minimizing ground time to our clients are integral parts of our
continuous improvement program aimed at leveraging the many business opportunities in the Middle East.
Since our inception in October 2000, our major focus has been directed at solving the quality-cost conundrum, to demonstrate that high quality can be achieved
at lower cost. Capitalizing on the 42 years of aircraft maintenance experience, the
highly qualified and experienced team players, and the company>s low cost structure, JorAMCo has been successful in delivering quality services and products at
highly competitive prices.
Over the past two years, JorAMCo has undertaken an aggressive growth and expansion plan to strengthen its customer base and customer support capability, doubled
our hangar capacity, engaged the services of additional technical staff and certified
technicians, increased the range of back shop capacities by setting up partnerships
with original equipment manufacturers (OEMs), and launched a modern academy
to ensure a steady supply and enrolment of fresh and qualified technicians and engineers of the right caliber. The result has been an expanding customer base that is
truly international.
OVERVIEW OF JorAMCo (Cont.)
Markets Served
JorAMCo serves many aircrafts from countries in the Middle East (including Jordan,
UAE, Saudi Arabia, Egypt, Bahrain), India and Europe (including Turkey, Russia,
Spain, Portugal, Germany, France, England, Iceland, Austria, Poland and Italy). We
intend to be among the most trusted and successful MRO service providers in the
Middle East region.
Approvals and Certificates
JorAMCo has the experience, track record, and certifications that aircraft operators can rely on to enhance the safety and performance of their aircraft. JorAMCo
is certified by the Federal Aviation Administration (FAA), the European Aviation
Safety Agency (EASA 145), the Jordanian Civil Aviation Regulatory Commission
(JCARC), and other approvals.1 JorAMCo is a member of the Aeronautical repair
association.
Services
JorAMCo’s airframe maintenance capability cover the Airbus types A300-600,
A310-200/300, A318/A319/A320/ A321, A330, A340, Boeing types 727 and 737
(Classic and NG), Embraer 170 series,190 series, and Lockheed L-1011 Tri-Star.
Capabilities include heavy maintenance up to and including 12year checks (D
checks), in addition to structural repairs, ageing aircraft inspection and modification, corrosion prevention and control program, avionics modifications (EGPWS,
ELT, TCAS, etc.) DOA cap. and cabin refurbishment. JorAMCo offers additional
engineering and technical support designed to provide the most essential services
for its customers.
In recognition of our strong performance, JorAMCo was declared as the winner of
the ITP’s The MRO Company of the year award in 2008 for the second consecutive
year, against a field of world-class competitors. We also receive the Middle East
and North Africa 2008 MRO Company of the Year award during the opening day of
AVEX Air Show and Aviation Expo.
Recognition and Awards
1
Emirates Civil Aviation (AMO/124/04) , Syrian DCA (AMO/002, Kuwait (DGCA/AMO/27-R1-97), Ukraine (BP 0193) , Sierra Leon (SLDCA AMO-02) , Egyptian
.(CAA (CAI/JorAMCo/AS/2001), Aruba Dept. of CA (DL-ACC-031), Saudi PCA (AMO-270F), Tunisia (5922), Thailand (285/254
OUR STAKEHOLDERS
Our business is based around our relationships with our stakeholders. The term
“stakeholder” refers to any party that affects and/or can be affected by our business. Our success depends upon understanding stakeholder interests and needs
and finding the most effective responses – usually in collaboration with those
stakeholders. The table below lists our key stakeholders, how we engage them,
what are the essential issues to them, and an introduction to how we are responding. The issues raised are further captured in the following two pages, with the
rest of the report then expanding upon these key areas and illustrating our related
performance.
Stakeholder
Employees
JorAMCo employs 912 permanent,
31 short- term Jordanian nationals,
and six senior expatriates.
Effective employee engagement is
essential to retain the best employees and boost performance
How We Engage
• Appraisal forms
• Suggestion boxes
• JorAMCo bylaws
• Weekly staff meeting with
department manager
•
Customers
JorAMCo serves many aircraft owners from the Middle East (including
Jordan, UAE, Saudi Arabia, Egypt,
•
Bahrain), India and Europe (including Turkey, Russia, Spain, Portugal,
Germany, France, England, Iceland, •
Austria, Poland, Italy and Siberia).
•
•
Priority Issues of Stakeholder
• Salary
• Working environment
• Other benefits
• Job security and career fulfillment
• Training and promotion
•
Through accurate, reliable
marketing consistent with the •
•
actual services provided
Customers’ representatives
monitoring our service provision
Ongoing communications to
gather feedback
Through our newly created
customer support department
Annual events with customers’ management and
representatives
Quality and reliability
Competitive prices
Efficient and on-time turnaround-time
Our Response
• Upgrading the salary system,
especially for skilled employees
• Attractive benefits not
required by law
• Career path planing
• Introduction of performance
based benefits
•
•
•
Effective and improved
engagement with customers’
representatives, including
creation of a customer service
department
Cooperation with customers
and official audits.
Minimization of ground time
through improving our staff
competencies, procedures and
equipment
OUR STAKEHOLDERS ((CONT.))
Stakeholder
Business partners and suppliers2
Our most active supplier relationships are those with aircraft spare
parts manufacturers
Investors / Shareholders
Abraaj Capital (80%)
Royal Jordanian (20%)
How We Engage
• Communicate regularly with
our business partners
• Seek to ensure that the conduct of our business partners
reflects our own commitments
• Regular Board of Director
meetings and additional
Board meetings
• Annual General Meeting
• Portfolio management team
Priority Issues of Stakeholder
• Ensure that suitable governance mechanisms are in
place
• Confidentiality
• Cost
Our Response
• Effective communication
• Trust building and maintaining
relationships
•
•
•
•
Strong returns on investment
Excellent growth
Business integrity
Efficiently and effectively
managed company
Outstanding corporate reputation and brand strength
•
•
Community / Society
JorAMCo’s community includes
both the local communities within
several kilometers of our operations, and the national community
of Jordan
•
Regulatory Authorities
•
•
•
2
•
•
•
Through donations and personal involvement of staff
Participation in community
improvement campaigns as
an active member society
•
•
•
•
Job creation and local hiring
Paying good wages
Caring for employees
Participation in social
programs
•
•
•
•
Through visits and audits of
officials
Regular interaction on all
relevant business matters
•
Comply with all rules and
regulations, and respond
efficiently and completely to
all recommendations/audit
findings
•
•
Excellent growth and profitability
Expanding clients’ base and
operations
Sound business processes and
practices
Well established brand
Increase in donations
Job creation
Creation of training academy
Training of graduate and
undergraduate technicians
and engineers (with on the job
training, at our training center
and at JorAMCo’s Academy)
Excellent track record and
strong focus on compliance
with rules and regulations
Offer free of charge training,
when possible
Our main business partners are Messier-Bugatti, Eaton Aerospace LLC, and Goodrich Actuation Systems. Messier-Bugatti recognized JorAMCo as part
of an independent network referred to as Support Partner Overhaul Trader (“S.P.O.T. Partner”) network, for MRO services of Messier Bugatti wheels
and carbon brakes on multiple aircraft programs. Eaton Aerospace LLC has appointed JorAMCo as a non-exclusive Authorized Provider of repair and
overhaul field services for the Eaton Aerospace LLC products. Finally, in accordance with the Maintenance Services Agreement with Goodrich Actuation
Systems, JorAMCo shall receive services, including maintenance and exchange, on all Goodrich Actuation products. The Agreement extends Goodrich’s
.preferred repair, overhaul, and exchange prices to JorAMCo’s customers and provides access to Goodrich’s spare part pool of more than 400 parts
(Federal Aviation Administration (FAA), European Aviation Safety Agency (EASA), Jordanian Civil Aviation Regulatory Commission (JCARC
h
Hig
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ue
Iss
ial
ta er
M
Re
Lo
g
rtin
ty
ori
Pri
o
ep
eR
iv
lat
es
su
l Is
ria
ate
n-M
No
Influe
uence Stakeholder Assessments and Decisions
OUR KEY SUSTAINABILITY ISSUES
w
Our key sustainability issues are derived from the issues raised by our stakeholders; our local, national and regional context; our sectoral context; and global
sustainability trends. We have identified eight major issue areas that impact
JorAMCo or for which JorAMCo has an important effect on stakeholders. We
have used the GRI’s materiality framework (see diagram at right) to help provide
guidance in selection of priority issues for reporting and extent of coverage. The
table below summarizes our perspective on each of the issues, while the following
page translates our perspective into tangible performance indicators, and where
available, our current performance relating to those issues.
Significan
cance of Economic, Environmental, and Social Impacts
4
Key Sustainability Issue
Good Governance, Accountability, and Transparency
Our Perspective
We believe good governance is essential to strong management. We furthermore consider
accountability and transparency to our stakeholders as essential to integrity.
We aim to manage our business according to highest standards, with a continuous effort to
improve the quality of our products and services, speed up our business processes and reduce
costs. We believe that sustainability management represents the next step in management
excellence and will further assist us in achieving the above objectives while simultaneously
improving our economic, environmental and social impacts.
Customer Care
Customer satisfaction is our number one goal. It is central to all aspects of planning,
resourcing and delivery of all our services.
Attracting and Retaining Top Talent
Attracting and retaining qualified talent is one of our top challenges, as our demand continues
to increase. We will invest in the professional development of employees and prospective
employees. We strive to achieve a high level of employee satisfaction and competitive wages,
benefits and incentives.
Health and Safety
Fostering a safe workplace is non-negotiable. We are firmly committed to the maintenance of
a safe and healthy environment for its employees or any other parties who may be affected by
its activities. JorAMCo aims for zero health and safety incidents during our operations.
Human Rights
We are committed to uphold and support basic human rights, including local and
international labor law principles.
We aim to minimize our environmental impacts (energy consumption, emissions and waste
production). JorAMCo will not only observe domestic and international environmental
standards but will aim to innovate in ways that significantly reduce our impacts while
enhancing value for clients.
We are connected to the communities where we operate and our country. We will continue
to seek to maximize our positive impacts through responsible operations, creation of local
economic and job opportunities, and training opportunities.
N/A = Not available
OUR KEY SUSTAINABILITY PERFORMANCE
Sustainability Issue
Good Governance, AccountAbility, and Transparency
Attracting, and Retaining
Top Talent
Health and Safety
Human Rights
Customer care
Independent directors
# of reported regulatory incidents-Audit Findings
GRI Application Level achieved
# of stakeholder groups involved in sustainability
assurance
Ratio of improving sustainability KPIs
Water consumption (m3)
Electricity consumption (MWh)
Fuel consumption (M3)
Greenhouse Gas (GHG) emissions (tonnes)
Total # of employees
Average training hrs / employee
Turnover rate (%)
Women % of employees
Women % of management
# Lost Time Injuries (LTIs)
# Lost Days
# Fatalities
Safety training (# employees trained)
# of reported human rights-related incidents
Supplier compliance (# of incidents)
Customer privacy complaints / incidents
On-time aircraft turn-around-time performance
Donations to community (US$)
Amount spent on local suppliers
% local hiring
2005
86%
34
Performance
2006
2007
86%
86%
29
29
New Indicator
New Indicator
N/A4
N/A
1,826.5
163
1,880.8
628
29.7
13%
3%
0.1%
N/A
N/A
0
N/A
0
N/A
99.5%
33%
16%
30,000
75,000
2,760.3
3,144.8
201
228
2,714.3
3,091.0
780
896
26.0
21.4
5%
7.1%
3%
3%
0.1%
0.1%
45
76
351
597
0
1
N/A
30
New indicator
New indicator
0
0
New Indicator
N/A
900,000
New indicator
99.5%
99.5%
2008
86%
31
B
0
33
29,846
4,450.5
148
3,885.0
942
20.2
11.6%
3%
0.1%
64
620
0
100
0
N/A
99%
SCOPE OF THIS REPORT
This is JorAMCo’s first sustainability report, covering 2008 performance with
comparable data for 2005-2007 where possible.
Ensuring the best content for
our sustainability reporting
We have determined our priority sustainability issues using a process consistent
with the Global Reporting Initiative’s G3 Guidelines, in particular the ‘Reporting
Principles for Defining Content’. The following basic principles were considered:
•
Materiality: We have attempted to cover the most critical topics and issues
reflecting JorAMCo’s significant economic, environmental, and social impacts
and/or that would substantively influence the assessments and decisions of
key stakeholders. We have not prioritized these issues per se but we have
indicated their approximate position on a materiality matrix as can be found
on page 10.
•
Stakeholder inclusiveness: We have identified our key stakeholders and have
outlined how we engage them, our understanding of their interests and
expectations, and how we have responded.
•
Sustainability context: We considered our sustainability context, particularly
the regional, local and sectoral contexts in which we operate, while also taking
into account global trends towards sustainability.
•
Completeness: We believe this report scope, boundary and time to represent
a complete view of our sustainability performance, with the exception of our
financial performance as noted in the exceptions below. We will continually
review the completeness of our reporting over time based on feedback and
circumstances. There are no other omissions from this report that would
impact principles of materiality or completeness.
SCOPE OF THIS REPORT (CONT.)
Accomplishments for 2008 and priorities
for 2009
Reporting Limitations
We have also used the GRI ‘Reporting Principles for Defining Quality’ for this
report:
•
Balance: We have attempted to disclose our performance numbers transparently and in a balanced matter regardless of our performance. Sustainability
is a journey – in areas in which we have actively managed we are proud of
our solid performance, while on newer issues our performance still requires
significant improvement.
•
Comparability: Where possible we have used the GRI and the GRI Indicator
Protocols to allow comparison of our report with industry peers and other
companies measuring sustainability performance.
•
Accuracy: We have been as accurate as our data and current information
tracking would allow. We provide explanation of data collection techniques
where important to do so.
•
Timeliness: The report, including performance up until end 2008, has been
released in Q1 of 2009. JorAMCo is committed to publicly update its sustainability performance on an annual basis.
•
Clarity: This report will be available online as well in a print version. We have
aimed to present the data in plain and concise language, recognizing it is our
first sustainability report and the concept is still new to the region.
•
Reliability: We have attempted to track and collect data in this report in a way
that is auditable. We have identified means of improvement for future data
collection. We also aim to invite stakeholders to provide feedback on the
report to improve future reporting.
As a private company, JorAMCo does not publicly declare its financial performance,
except in confidentiality to appropriate authorities as required by law. We do
include a very limited amount of financial data in this report.
As an additional limitation, several of the proposed Key Performance Indicators
(KPIs) have no previous measurement. These have arisen as part of our learning
around sustainability and we recognize they will become important indicators
over time. We intend to establish baseline measurements of these KPIs in 2009.
CORPORATE GOVERNANCE
Adhering to the highest standards of good corporate governance combined with
continuous pursuit of management excellence is essential for continued business
success and growth.
JorAMCo Board of Directors
Mr. Waqqar Siddique, Chairman.
Mr. Fadi Ghandour, Deputy Chairman
Mr. Mustafa Abdel Wadood
Mr. Matteo stefanel
Mr. Abdullah Shahin
Mr. Emadedeen Al Faraheed
Mr. Bashir Abdel Hadi, Member- CEO of
JorAMCo
JorAMCo’s corporate governance is overseen by its Board of Directors. There are
currently 7 members, all male, of which 6 are independent directors. JorAMCo’s
CEO is the only non-independent director. The roles and responsibilities of the
Board are first and foremost governed by the Jordanian law, the general task
being to oversee the overall strategic direction of JorAMCo, set the general policy
of the company and ensure its implementation, and supervise the company’s
management.
The board members are selected according to the shareholders agreements; five
seats are for Abraaj as an 80% owner of the shares, one seat to be appointed by
Royal Jordanian the owner of 20% of the shares and a seat for the CEO. The general policy of the owners is to select the members from different lines of experience but related directly to the business itself. JorAMCo board members include
a mix of experts in management, finance, aviation, transport, engineering, and
sustainability.
The board of directors meets at four scheduled meetings and other occasional
meetings with an average of one unscheduled meeting every two months. There
are two board committees 1) Strategic committee 2) Finance and Compliance
committee. These are informed by similar management level committees who
are supported by the CEO as a member of the Board. The CEO is empowered to
approve any transaction or decision related to the company business.
Members of the board of director are not compensated for serving on the board.
The CEO of JorAMCo naturally receives remuneration from the company.
Governance oversight of economic,
environmental and social impacts
Employees are able to engage the Board of Directors primarily via the CEO.
Furthermore, the company holds a meeting between the board representatives
and a considerable percentage of the employees almost every year to review
employees concerns. Occasional direct communication regarding business takes
place whenever there is a need, and is made either directly with Board members
or through the CEO.
The Board firmly supports JorAMCo’s efforts to adopt sustainability management, recognizing the expected performance and reputation benefits alongside
the overall positive impacts for society. To ensure sustainability issues become
integrated into the governance structure and decision-making, JorAMCo is committed to establishing an in-house sustainability team with at least one executive team member responsible for this important task of overseeing economic,
environmental and social impacts. The Board will be regularly informed about our
performance against sustainability targets.
MANAGEMENT APPROACH: A FOCUS ON QUALITY ASSURANCE
Accomplishments for 2008 and priorities
for 2009
Upholding the highest standards of quality is of utmost importance to our business and represents a core management principle. We are committed to maintain
this principle through our Quality Assurance (QA) system. High-quality maintenance and repair of aircraft are essential components to ensure the safe and efficient operation of an aircraft. Our service delivery is designed and implemented
with the utmost safety and health of our customers as a primary consideration.
We have a specialized Quality Assurance (QA) Department to meet this requirement.
The QA department of JorAMCo is responsible for: 1) Managing the quality assurance system of the organization and monitoring JorAMCo’s compliance with
the applicable regulatory requirements; 2) Publishing and controlling the quality
manuals; 3) Issuing and controlling technical staff authorizations, 4) Establishing
the annual audit program; 5)Administering the organization’s internal and external quality audits; 6) Managing and controlling certification and repair station
approvals with various authorities and liaise with the authorities; 7) Maintaining
JorAMCo’s approvals and certificates issued by the Federal Aviation Administration
(FAA), the European Aviation Safety Agency (EASA 145), and the Jordanian Civil
Aviation Regulatory Commission (JCARC).
As part of our commitment to quality, and as another core management principle, we have committed ourselves to the systematic achievement of continuous
improvement. Consistent with first class industry leaders, and based on the positive impact it should have on all aspects of sustainability, in 2008 we established
an independent Continuous Improvement (CI) Department. The department’s
implementation plan is as follows:
First Phase
•
•
•
•
•
Establish a JorAMCO General Operation Base Line; define a list of jobs that
represent basic successful operation needs and measure their present values.
Establish realistic objectives, regarding percentage of improvement needed
to be achieved in these values presented in the list, say 10 or 20% improvement
Implement a simple “80/20” rule to identify 20% of problems that cause 80%
of losses.
Establish a road map / and assign projects addressing these 20%.
Assign, approve and allocate the necessary resources, then focus energies and
synergize efforts on addressing these problems.
MANAGEMENT APPROACH: A FOCUS ON QUALITY ASSURANCE (CONT.)
Second Phase
•
Establish key performance indicators (KPI)’s for Reliability, Production, Cost,
Safety, etc. and measure and track them on an ongoing basis where any
deviation from target is corrected.
•
Establish a sustained CI check and balance system of daily KPI tracking program and periodic KPI analysis, evaluation and correction.
•
Empower employees to bring autonomous management. Empowerment of
lower management is the key to the success of CI programs.
•
Where applicable, set a 10, 20% improvement Targets.
•
Identify areas of improvement, implement the “80/20” rule, to help focus
efforts and achieve objectives.
A third critical element of our management approach is our recent commitment
to sustainability management and reporting. Sustainability management and
reporting encompasses all aspects of quality and continuous improvement,
but expands our understanding of the business to incorporate a wider range of
economic, environmental and social risks and opportunities and helps us achieve
further clarity on the priorities and satisfaction of our stakeholders. It is the next
step in management excellence. JorAMCo’s Continuous Improvement department
is responsible for integrating sustainability thinking into all aspects of JorAMCo’s
management and performance.
Our main achievement relating to quality assurance in 2008 was maintaining
the 3 critical certificates (regulatory approvals) from the FAA, EASA and JCARC
without any major findings or warnings and without any follow up requirements.
Nonetheless, we continuously work to address all suggestions made by these
authorities.
Number Of Minor Audit Findings (per each of the three main regulators)
MANAGEMENT APPROACH: A FOCUS ON QUALITY ASSURANCE (CONT.)
Second Phase
JorAMCo’s main goals for 2009 with regard to quality and management excellence
include:
• Integrating and expanding health and safety, environment and service
responsibility issues into our quality manuals and performance coverage.
•
Attract increasingly higher qualified human resources into our QA department.
•
Increase the commitment from all departments to accomplish the relevant
Corrective Action Plans (CAPs) and follow up on audits. As part of this effort,
QA department will improve its system for CAPs follow up and ensure that all
CAPs are finalized within the given timeline.
•
Continuously update top management and strengthen their commitment
and ability to support quality excellence, continuous improvement, and
sustainability management.
•
Continuously improve overall awareness and training
•
Create a system to measure and assess our quality system, our Quality
Department, and our Continuous Improvement Department
CUSTOMER SATISFACTION AND SERVICE RESPONSIBILITY
Management Approach
Maintenance, repair and overhaul of aircraft are essential to their continued safe
operation. Our customers therefore expect uncompromising standards for safety,
efficiency and full reliability of services, based on international approvals and certificates as outlined on page 5. This is our utmost priority. Our specialized Quality
Assurance department is designed to support all aspects of service responsibility,
while our human resource department ensures continued recruitment, training,
and certification of staff to meet our human resourcing needs. JorAMCo is committed to ensuring customer service excellence, viewing it as integral to planning,
resourcing and delivering all services.
In line with the doubling of our hangar capacity, our marketing efforts have
focused not only on increasing our work with existing customers, but also
expanding our customer base. Achieving that growth, and then maintaining the
same high levels of satisfaction of our clients, has been an important part of our
management approach to customer satisfaction in 2008, and will continue to be
so in 2009.
Customer Satisfaction and Service
Responsibility
Engaging our customers is essential to understanding client needs and ensuring
a good level of customer satisfaction. We are engaging our customers through
an integrated process starting from transparent marketing plans that accurately
portray JorAMCo services and capabilities, to continuous communication with our
customers to gather their feedback. Amongst the highest priorities of our clients
are: Quality (in terms of safety and reliability of the product / service), Cost, Turnaround Time (time that the aircraft is out of service), and Transparency and overall
quality of the service relationship.
•
Quality (safety and reliability): Other sections of this report have
outlined the efforts we make to maintain all necessary certificates and
regulatory approvals, and our excellent track record in this regard.
•
Cost: Our pricing is cost-competitive and transparent in terms of
completeness
•
Minimizing turn-around time (ground time): We continuously seek to
employ the most effective procedures and equipment along with leveraging
our staff’s competencies in order to maintain minimum possible ground time
of serviced aircraft. We have a good track record of meeting our turnaround
time objectives and will begin reporting on this indicator in our next
Sustainability report.
CUSTOMER SATISFACTION AND SERVICE RESPONSIBILITY (CONT.)
Second Phase
•
Transparency and overall quality of the service and relationship: Our efforts to
address the above customer priorities at the same time as ensuring highest
levels of trust and sound relationship include:
• Engaging customer representatives: We have a particularly excellent
opportunity to engage clients while their representatives visit our site
to monitor our service provision, which is a very common practice in
this sector. We also invite our clients to establish their offices on our
premises. This not only improves communication with clients and
strengthens our understanding of their needs, but also demonstrates
a high level of transparency and helps further assure our clients of the
outstanding quality of our work.
• Transparent and honest marketing: Clear and complete information
regarding our products and services is also a critical factor for our
customers. In our service delivery, we only use certified products of
world-class companies, such as Messier-Bugatti, Eaton Aerospace
and Goodrich Actuation Systems. All components we sell and use for
our services are clearly labeled providing all necessary information
for our customers. We aim to ensure maximum transparency in our
marketing, including details of how we deal with the clients’ aircrafts,
the landing fees, fuel type, and other details that are both important
for quality but also make important differences to customer comfort
levels.
• Protecting customer privacy: The privacy and confidentiality of our
customers is of utmost importance. There were no incidents or complaints concerning this issue.
• Customer complaints contact point: As part of our quality program,
we established a customer complaints office in 2008 to facilitate
customer feedback and learn from constructive complaints
• Follow up servicing: Customer satisfaction is important to us even
after delivering the aircraft. We have a dedicated customer support
office and “after service” follow up service to ensure the quality of our
workmanship and to improve the relationship with our customers.
• Annual meetings: As a means of thanking our clients, we host an annual two-day event with customer representatives and management
that is primarily fun-focused, showcasing some of Jordan’s treasures.
In 2008 we hosted our clients in Wadi Rum, a beautiful national park
towards the south of Jordan.
CECONOMIC IMPACT: GROWTH AND DEVELOPMENT
Management Approach
As a privately owned company, we do not disclose economic performance data.
We recognize that this is our least transparent area of operation. Our economic
approach is to first and foremost aim to achieve a financially secure organization.
We use standard accounting principles and our financial statements are audited
annually by an independent third party. With regards to creating jobs locally, we
have a management system in place that allows for tracking and oversight of the
extent of our local hiring.
Economic Impact on our
Key Stakeholders
Our economic activity touches upon a wide range of our stakeholders. We are
proud of the contribution we make to local and national economic development in
Jordan. Some of our economic impacts are as follows:
Shareholders:
As part of the growing MRO industry JorAMCo’s shareholders are benefiting from
the growing value of JorAMCo through solid profitability, expanding assets, and
continuously improving reputation and goodwill.
Government :
Following the government’s decision in October 2000 to privatize and restructure
Royal Jordanian airlines, JorAMCo was officially launched as an independent MRO
service provider. As a newly privatized company that is located in a special free
zone, JorAMCo is tax-exempted. In the interim, the Jordanian government does
benefit through its 26% stake in Royal Jordanian airlines, which in turn owns 20%
of JorAMCo. However after privatization, JorAMCo started to pay rents and fees
that were not payable before.
Employees and their families :
JorAMCo’s policy is to support the local community and national economy by hiring Jordanians and training them in technical skills and know-how. Furthermore,
we aim to provide competitive financial compensation to our employees.
Due to the inflation challenges facing the Jordanian economy over recent years,
JorAMCo has repeatedly updated the salary scale according to the inflation level
to ensure a level of satisfaction and retain our staff. JorAMCo’s minimum wage
of approximately 400 JD per month (including benefits) is one of the highest in
Jordan, compared to the 150 JD minimum wage according to Jordanian Labor Law
for the public and private sector. In accordance with Jordanian Labor Law, JorAMCo
contributes to the Jordanian social security system by contributing to the pension
plans of all its employees. In total, JorAMCo employs 911 permanent and 31
short-term Jordanian nationals supporting hundreds of Jordanian families.
CECONOMIC IMPACT: GROWTH AND DEVELOPMENT (CONT.)
Economic Impact on our
Key Stakeholders
Communities:
JorAMCo has a history of offering technical internships for undergraduates (as
part of their degree requirements) and graduates. In 2007 JorAMCo established
a partnership with a renowned technical college in Perth, Scotland to establish
a Jordan-based training academy to train promising young students in the art
and science of maintaining and repairing aircraft bodies, engines, and electrical
systems. This academy provides locals with high quality opportunities to upgrade
their skills and qualifications. The Academy commenced operations in 2008.
JorAMCo makes additional financial contributions to other community initiatives.
Suppliers:
JorAMCo’s policy is to support locally based suppliers, in particular in the area of
electricity maintenance, metal shop supplies, and construction services.
ATTRACTING AND RETAINING TOP TALENT
As the MRO industry member, JorAMCo needs to recruit and retain highly qualified
and experienced labor force. in this highly competitive labor market of skilled
professionals in Jordan and in the Middle East this present quite a challenge to
employers. JorAMCo is particularly proud to have created and sustained a highly
qualified workforce of Jordanian nationals, except for few expatriates.
Management Approach
JorAMCo’s Human Resources (HR) team consists of 40 staff assigned to two
main sets of activities: general administration and recruitment. JorAMCo keeps
recognized bylaws, which are a requirement, by the Jordanian Labor Law and are
communicated to the entire workforce.
In 2008, JorAMCo started work on adopting and implementing an automated HR
system, This system intends to help better manage manpower requirements, improve and expand HR functions and ease the efforts required for reporting systems
while improving overall accuracy.
The HR Department aims to support our staff and equip them with the skills
and resources required to deal with the challenging issues facing JorAMCo. This
includes various approaches to training including internal training, external training, theoretical and on-the-job training, and training for potential and incoming
employees via the JorAMCo Training Academy.
Apart from an internal social committee dealing with and representing all issues
relevant to staff (Personnel Affairs Committee), the majority of JorAMCo employees are members of the air transport and tourism union.
AA major HR function and priority at JorAMCo is the retention of qualified key
employees. This policy serves both the business, the individual and community.
Benefits of retention are multifaceted. Risks of shortage in key human resource
skills are alleviated, the cost of recruiting is significantly reduced, and productivity
is increased. A long-term employee engagement is of particular importance in
specialized professions, such as aircraft maintenance.
Despite our good track record on HR management, we are still faced with some
challenges; recruitment of professionals, especially with a Certificate of (Aircraft)
Release to Service (CRS), remains a difficult task. individuals poor English language skills. Challenges that can be hopefully overcome in the near future.
ATTRACTING AND RETAINING TOP TALENT (CONT.)
Workforce
JorAMCo workforce is continuously growing as capabilities and our client base has
expanded. It has significantly increased in 2006, with a net of 140 new employees,
an increase of 24% of workforce. In 2007, a growth of 16% (118 employees) was
achieved and in 2008 the growth was 9% (76 employees). The growth in workforce natural response to the expansion of work space due to the addition of the
two new hangars and the higher demand for services that followed.
JorAMCo Workforce
2005
2006
2007
2008
Employees
584
724
842
911
Short-term
contracted labor
44
56
53
31
Total Workforce
628
780
895
942
JorAMCo is located at Queen Alia International Airport in Amman, Jordan. The
company’s policy is aimed, among few priorities, at supporting the neighboring community through hiring of labor – mainly from Al-Jeeza townships and
Madaba city- then train them on useful technical skills. This will bring economic,
social benefit and prosperity to the local community, as well as help lower the
environmental impacts, by reducing the distance the employee has to travel to
work and eventually reduce the greenhouse gas emissions associated with it.
Local Hiring
JorAMCo – Breakdown on Employment Contract
2005
2006
2007
2008
# of Senior
Management
28
30
33
33
# of Middle
Management
115
124
160
173
# of Workers
441
570
649
Total Employees
584
724
842
National participation in the JorAMCo workplace
2005
2006
2007
2008
# of workers/staff
from Jordan
627
778
893
936
1
2
2
6
705
# of workers/
staff from outside
Jordan
911
Total
628
780
895
942
JorAMCo provides equal opportunities for all employment applicants. However,
the industry type and location of JorAMCo, along with the prevailing culture, has
traditionally encouraged a higher percentage of male than female employees to
work at JorAMCo. Nonetheless, women in Jordan and in many countries across
the region are obtaining higher academic degrees and it is increasingly possible
to tap into this huge pool of talent to better serve our tight resource market. As a
result, JorAMCo is availing opportunities to increase women participation through;
encouraging qualified women applicants to join in, as well as ensuring effective
adoption of an equal opportunities policy for women employees.
Female Participation in the Workforce
Female Participation in the JorAMCo workplace and management
% of Total Employees
% of Middle Management
% of Senior Management
2005
2006
2007
2008
2005
2006
2007
2008
2005
2006
2007
2008
3%
3%
3%
3%
0.1 %
0.1 %
0.1 %
0.1 %
0.1 %
0.1 %
0.1 %
0.1 %
Employee Satisfaction and Engagement
Employee satisfaction is essential to retention, and engagement of employees
is both helpful to satisfaction while also allowing us understand the challenges
facing our business and the suggested solutions of those individuals closest to
the challenge. We engage with our employees through a number of channels;
Weekly meetings that are conducted for each department where employees can
share their concerns, suggestions, and priorities with their managers; suggestion
boxes located in each hangar and Personnel Affairs Committee, which is assigned
to assist management engagement with employees are but few examples of this
engagement.
The issue of absenteeism and unscheduled leave has always been of importance
to us as we are interested in our bottom line. As we are aware of the costs of
absenteeism we started to assess its true impact on every aspect of our business
by tracking the absenteeism rate.
Retention and Turnover
Skilled and well trained labor is a business priority in the region and worldwide.
In the past year we have experienced high turnover of our workforce, in particular
highly qualified and well trained staff. JorAMCo continues to face the challenge of
a tight labor market with increasing MRO competition in the region. The employees who exit JorAMCo are mostly leaving Jordan to join other competitors within
the region.
Turnover Gender ( % )
Turnover Age ( % )
2005
2006
2007
2008
2005
2006
2007
2008
Female (% of Total Female)
17 %
3%
13.8%
17.9
18 - 30 ( % )
20 %
25 %
7.9%
9.8%
Male (% of Total Male)
13 %
5%
6.9%
11.4%
31 - 40 ( % )
30 %
25 %
5.6%
13.1%
41 - 50 ( % )
40 %
35 %
4.3 %
9.1%
51 - 60 ( % )
10 %
15 %
11.7%
22%
Our HR policy is carefully connected to a set of fair principles. We are following a
flexible structure and a general salary scale. A yearly salary increment is based on
the yearly performance evaluation of the employee, which is added to the basic
salary.
Salaries and Benefits
JorAMCo’s minimum wage amounts to approximately 400 JD per month including
benefits, compared to the 150 JD minimum wage of the Jordanian Labor Law, for
the public and private sectors. Jordan has experienced significant inflation during
the reporting period (2005-2008). JorAMCo has managed that challenge through
adoption of a flexible payment structure and a general salary scale and did make
several revisions to employee salaries in order to help employees keep pace with
inflation.
In addition to salaries, JorAMCo is provisioning for the following additional
benefits to all our employees: life and disability insurance, health insurance, free
transportation, over-time wage and partial social security fees (in accordance
with Jordanian Labor Law), yearly bonus for corporate performance, additional
social fund (two-months pay per year of service) for the rest of the Employees and
specific retirement benefits after the age of 60.
A yearly performance appraisal is given to all full-time employees. Employees are
able to review their appraisal forms. The CEO evaluates the senior executives and
each corporate manager evaluates managers of his department.
Employee Appraisals and
Performance-based Benefits
Excellent employees expect to be rewarded for their contributions and efforts.
JorAMCo has therefore followed a performance-based reward system where a
monthly evaluation is done for all JorAMCo employees, and then a bonus of 300 JD
is awarded to each of the 20 best-performing employees every month.
Effective training and development processes are essential to maintaining the
highest level of service standard.
Training
Training Courses
2005
2006
2007
2008
Total number of Training
Courses
42
38
41
83
Average training hours
per employee*
29.7
26.0
21.4
20.2
* These numbers were estimated to our best knowledge as no tracking system is yet in place. They include only technical aircraft-related
training, and not training for other roles within the organization.
We aim to support our staff and equip them with the skills and resources needed
to keep them competent and qualified to deliver successfully. To do so, the HR
department controls, manages and develops training programs in the following
areas: JorAMCo’s policies and procedures, safety courses, courses with authorized
service providers, basic and advanced technical skills courses, and induction
orientation for new entrants. JorAMCo is committed to continuously increase the
professional level of staff by involving them in needed training and increasing
annual training hours to those of acceptable industrial standards and track of all
training profiles.
HEALTH AND SAFETY
Providing and ensuring a working environment with excellent health and safety
standards for employees is a high priority for JorAMCo. We believe there are
significant opportunities for improvement both to our health and safety management systems and particularly our performance. Our goal is to achieve zero
incidents during our operations.
Management Approach
In 2008, we strengthened our health and safety focus by building an OHSE (organizational
health, safety and environment) team. We assigned a senior executive – the General
Manager of Continuous Improvement – to oversee this function. In the latter half of 2008
we brought on board a Director OHSE as well as transferred a Health and Safety (H&S) officer from our security workforce, and in early 2009 a Safety Engineer will join this team.
The task of this team is to develop an occupational health and safety management system
that will then be certified in 2010 to the international standard for occupational health
and safety, the OHSAS18001. By implementing such a system, we will more systematically and aggressively reduce risks and improve our staff competencies and performance.
Placing an emphasis on staff training, provision of necessary Knowledge, embedding a
culture of health and safety will be an important aspect to implementing of approved
strategy. Our rapid growth in staff numbers combined with turnover rates has increased
the challenge of maintaining strong safety awareness and behavior. Some of our progress
in 2008 included the training of approximately 100 Employees on health and safety practices, relating to fire fighting (the use of fire extinguishers and the rail hose) and first aid
practices, which was provided by the civil defense and the On the Job training for security
staff and facility employees on fire alarm control panel maintenance and usage and for
the foam monitors which was delivered by in house JorAMCo staff.
The corresponding table outlines total injuries and lost time due to injuries during
the years 2005-2008. Regrettably, we had 1 work-related fatality in 2007.
Health and Safety Performance
Health and Safety Performance
2006
2007
2008
# Lost Time Injuries (LTI)
45
76
64
# of Lost Days
351
597
620
# of Fatalities
0
1
0
# of injuries
2
11
4
JorAMCo’s working environment includes physical, mechanical, chemical and
electrical hazards. Our activities mainly cover working at heights, usage, storage
and manual transportation of wide range of flammable and toxic materials, pressurized cylinders, hot liquids, hazardous waste materials, confined space activities,
welding work, machinery work, X-Ray radiation, lifting equipments, electrical
work, working at night, and other lower risk occupational health and safety
issues.. JorAMCo is sparing no effort to ensure the availability of the relevant
protective measures and personal protective equipment (PPE) to reduce staff’s
exposure to these risks.
Specific commitments in the area of Health and Safety management and performance for 2009
include the following:
•
Strengthen and consolidate a general culture of safety awareness.
•
Continue to provide safety training, including achieving training of 85% of employees on
firefighting equipment and first aid.
•
Increase health and safety controls throughout our operations.
•
Include health and safety performance as a criteria when considering performance-based
benefits.
HUMAN RIGHTS
Management Approach
JorAMCo complies with all aspects of Jordanian Labor Law, including those relating to
human rights. We also aim to abide by major international human rights standards,
including principles relating to human rights related within the UN Global Compact.
The majority of JorAMCo employees are members of the air transport and tourism union
and a representative for that union is available at JorAMCo. JorAMCo workers are able to
practice all the rights that labor law may allow. An internal social committee at JorAMCO
deals with and presents all issues relevant for our staff to the Personnel Affairs Committee.
Our human rights performance
We follow our bylaws which are required and approved by the Jordanian Labor
Law and communicated to our entire workforce. This includes compliance with
Jordanian laws prohibiting any forms of discrimination, child labor, forced labor,
and other high priority human rights issues. Though no formal tracking system is
yet in place, JorAMCo is not aware of any reported incident of discrimination that
occurred within its working environments. In the case of grievances, employees
can communicate any grievances anonymously by placing them in the suggestion
boxes, or by directly communicating with their manager. Concerns raised through
the suggestion boxes are dealt with, in a high level of confidentiality. The CEO
also maintains an “open-door policy” for any cases that may not be easily handled
through existing mechanisms.
During the four years period reported here, there were no known incidents regarding child or forced labor at JorAMCo or its suppliers. JorAMCo strictly abides by the
Jordanian labor law regarding minimum legal age for employees.
JorAMCo is located within the boundaries of Queen Alia International Airport, the
security of which is controlled by Government including Officials from immigration
and a police department. JorAMCo also has its own trained security staff.
Within its premises, JorAMCo has not witnessed any major security incidents of
concern during this period.
Human rights compliance of our suppliers
The majority of our supplies are aircraft spare parts, which are mostly imported
from Europe where strict legislation helps ensure very few, if any, human rights
violations.
We are engaging local suppliers for some of our regular operations for electricity
maintenance, metal shop suppliers, and construction services. JorAMCo is considering how to best engage with these suppliers to ensure there are absolutely
no human rights issues relating to their activities, particularly in the field of labor
rights.
ENVIRONMENTAL PERFORMANCE
While JorAMCo has always respected the environment and attempted to manage our
environmental impacts in a responsible way, we increasingly recognize the opportunity to
do so with a systematic approach that yields both environmental and financial benefits.
As we have begun to adopt this perspective, combined with a greater sense of urgency
in the protection of the environment, we have identified previously unrealized and significant opportunities for improvement.
Management Approach
Over the coming two years, JorAMCo intends to, extensively, catalogue operation impact
on the environment, establish baseline performance data, identify the most significant
opportunities and demonstrate tangible performance improvements within that time
frame. These efforts would, also meet with the aviation industry efforts to reduce contribution to global greenhouse gas emissions (and thus global warming). While JorAMCo
is not, presently, involved in aircraft engines maintenance, the source of emission in
Aircraft, as an aircraft MRO service provider we are committed to work with clients and
help incorporate emissions saving strategies in all aspects of aircraft maintenance, repair,
and overhaul, working with the most up-to-date materials, technologies, and aircraft
modification solutions.
This first Sustainability report has already begun to assist JorAMCo with the identification
of key environmental issues and baseline performance information. In developing much
of the baseline information presented in this report, JorAMCo has drawn upon financial
accounting information, past invoices, and other approximate methods of tracking that
are secondary in nature. As JorAMCo moves forward we aim to generate increasingly accurate data and begin tracking these performance indicators directly wherever possible.
Overall, JorAMCo has good appreciation of the environmental legislations and was never
fined for non-compliance. However, JorAMCo has received letters from governmental
authorities to address some minor issues related to health, safety and the environment,
which we have undertaken or continue to undertake as requested.
JorAMCo’s energy requirements include; energy used for testing of aircraft, lighting and HVAC of the facilities. The significant growth of the business since 2005
has led to increased electricity and fuel consumption in 2006 and 2007. Furthermore, in 2007 two additional hangars were added together with an air Academy,
while the existing hangars were operating at 2 full shifts daily.
Electricity and fuel consumption
Direct / Indirect Energy Consumption
Source
Electricity (‘MWh)
2005
2006
2007
2008
1,826.5
2,760.3
3,144.8
4,450.5
Heating Fuel (Diesel)
(m3)
50
57
66
71
Vehicle Fuel (Diesel) (m3)
97
123
142
139
Vehicle Fuel (unleaded
petrol) (m3)
16
21
20
9.3
ENVIRONMENTAL PERFORMANCE (CONT.)
Electricity
JorAMCo is powered from the national grid and onsite generators. Most of the electricity
is consumed on the Ground Support Equipments (GSE)’s including electrically fed Ground
Power Units (GPU)’s. Other types of mobile GPUs run on diesel). The amount of Electricity
consumed from the national grid is measured and billed to JorAMCo regularly.
Electricity and fuel consumption (Cont.)
In 2008, JorAMCo has committed to two notable projects for reducing energy consumption. The first, few Hangar managers were put to the task of identifying and implementing energy-saving techniques in some of their operations. Having achieved significant
success, all managers across Hangar operations were asked to follow a similar energy
efficiency exercise. Actions taken have ranged from reducing energy demand when facilities are not in use, to cleaning of all lights in the hangars in order to increase brightness
and reduce overall consumption. Beside the preceding, In 2008, electricity demand has
ultimately increased due to the addition of two new major facilities, the Hangars 5 and 6
complex and the JorAMCo Academy, and the subsequent increase of operational activities.
Greenhouse Gas (GHG) Emissions and Air Pollutants
GHG Emissions
2005
2006
2007
2008
Total CO2
(kg)
1,868,984.4
2,714,274.5
Total CH4
(kg)
107.7
153.5
170.7
199.9
Total NOx
(kg)
31.0
42.5
48.3
54.9
Total GHG
(kg) – CO2
Equivalent
1,880,843.1
2,714,274.46
3,091,010.1
3,885,035.4
Fuel consumption
Two types of liquid fuel (Diesel and unleaded fuel) are used. Diesel for; heating boilers,
power generators, GSE and vehicles that are used for the transportation of personnel,
tools and materials necessary for maintenance operations. And Vehicles used for the
transportation staff. Unleaded petrol is used by other transportation vehicles and, around
the premises, smaller vehicles. Bills are issued for fuel expenses from accounting section
to document total consumption.
Fuel consumption has notably decreased by 10% for diesel powered and 45% for
unleaded fuel powered vehicles in 2008. This reduction was achieved through application
of a list of stringent control procedures over all transportation activities and through carrying out repair and maintenance of vehicles for better efficiency, fuel economy and low
emission of harmful gases.
A major indicator of the impact of our operations is measured by the amount of our
Greenhouse Gas (GHG) emissions. As background, there are a number of these gases naturally available in the atmosphere, which blanket the earth and keeps it at normal preindustrial temperature levels. The unprecedented increase in industrial activities around
the globe have contributed to a man-made build-up of greenhouse gas emissions that in
turn are creating warming effect of the earth’s atmosphere, a phenomenon referred to as
“Global Warming” or “Climate Change”.
3,072,455.5 3,863,824.7
The challenge, therefore, is to reduce our greenhouse gas emissions, which we can by
more efficient electricity and fuel consumption ( in turn saving us money). At JorAMCo,
GHG emissions were measured by estimating the direct and indirect electricity and energy
consumption needed to run the operation. These include fuel used in vehicles and other
operations requiring fuel which was significantly reduced due to the success achieved in
applying energy efficiency techniques in our older hangars, and our inherently less thirsty
and more energy efficient new hangar that was constructed with modern technologies.
Another emissions-saving activity practiced is transportation of Employees by the use of
mass transportation vehicles and encouraging the rest of the employees to car pool while
commuting to work.
In 2009 JorAMCo aims at achieving targets by adopting energy efficient protocols and
more greenhouse gas emissions control and will begin reporting performance according
to achievements toward these targets.
Water Consumption
Total Water Withdrawal by Source (m3/year)
2005
Total consumption
(from utilities)
(m3/year)
N/A
2nd Half
2006
2007
30,000
m3
75,000
m3
2008
29,846
Jordan is the fourth poorest country in water availability per capita in the world. The
nationwide demand on water is increasing at a rate that exceeds the rate of increase in
available water resources. As a result, the water deficit is expected to rise with growing
government policy changes and potentially pricing changes. It is therefore prudent for
JorAMCo to both monitor and continuously seek reducing the intensity of water usage
and the overall consumption. We will establish baselines and set targets for both of these
indicators.
All the water consumed for JorAMCo operations comes from the local municipalities,
which is derived from storage of storm water (winter rainwater) and surface water
resources with some reliance on highland aquifers. Until June 2006, JorAMCo’s water
bills were shared with Royal Jordanian. Since the second half of 2006, JorAMCo was able
to track its water consumption by tracking the water bills with a fairly high degree of
accuracy.
In 2008, a dramatic reduction of 40% in water consumption was made possible through
launching of a repair and maintenance campaign to the water system; pipes, taps, connections and pumps across JorAMCo network.
Almost 90% of materials purchased by JorAMCo are spare parts for aircraft. After
replacing the parts of the aircraft; 75% of the old parts are reused in another
aircraft (by JorAMCo or by a third party) by re-certifying those repairable parts
(some parts do not even require repair – the client simply wanted to replace them
with different versions of that part). The other 25% of the old parts are disposable,
stored in a yard until they are sold as scrap. In the case of any hazardous materials,
we contact the civil defence to dispose them appropriately.
Other Materials Consumption
The remaining 10% of materials consumed are input materials used in our day
to day operations. These auxiliary materials include paints, cleaning materials,
other fluids, and tools for manpower. Details of the quantities used are shown
in adjacent table, which have increased as a result of growth in customers and
hangar space.
As with any business, we consume paper. In 2008 we launched “ a paper less
initiative”, encouraging our employees to increase use of e-communications and
e-documentation to reduce paper consumption.
Materials used (Fluids, in 1000s liters)
2005
2006
2007
2008
Paints
5.6
8.0
13.0
15.4
Cleaning Agents
20.0
38.0
60.0
56.7
Application Oil(s)
4.8
6.65
16.8
13.2
Chemical and other hazardous waste
Hazardous waste presents immediate or long-term risks to the environment, including humans, animals, and plants. Such Material requires special handling and disposal.
A number of materials- both in the form of inputs and outputs of our operations- are
hazardous materials. Examples are paints and primers, jet fuels, lubricants, solvents and
cleaners. Therefore, JorAMCo is committed to the control and reduction of both the use
of hazardous materials and creation of hazardous wastes (including leftover and expired
chemicals) and their proper handling and disposal.
Regarding waste water treatment, JorAMCo complies with Jordanian laws and is, furthermore, committed at working to reduce any concentration of chemicals ending up in waste
water as a result of its operations and to improve the drainage system in all the hangars.
Eco-Friendly Hangar Design
JorAMCo is currently in the late stages of design and approval of a new hangar specifically
for painting of aircraft. The design has incorporated environmentally-friendly concepts
and will also reduce the exposure of employees to occupational health and safety hazardous inherent in the painting process.
COMMUNITY DEVELOPMENT
Management Approach
JorAMCO firmly believes it is a part of the broader society, and that its success is dependent, especially over the long-term, on the health and wellbeing of the society. And
therefore concentrate on maximizing its contribution in the following areas:
• Hiring of Jordanians( local workforce) and the creation of local economic opportunities
• Investing in human resource development in Jordan
• Maintain safe operation and minimizing environmental impacts (see environmental
section)
• Increasingly, investing in community initiatives or broader national and regional
initiatives supporting sustainable development
Hiring of Jordanians ( local workforce)
As captured in the section on attracting and retaining talent, JorAMCo has almost
exclusively hired Jordanian staff supporting hundreds of families with their
JorAMCo salaries. We also use local suppliers wherever possible in the delivery of
goods and services.
Investing in human resource
development in Jordan
JorAMCo Contributes to the development of HR in Jordan in four major ways;
Employing hundreds of Jordanian workforce, extending training opportunities to
students from Jordanian institutes through two methods: Academic training for
university students and on-the-job training for apprenticeship students and finally
educating Jordanians at JorAMCo Training Academy to become fully qualified A/C
technicians.
Academic and on the job training:
JorAMCo contributes to the support of local community through training of Jordanians in three different categories:
1. University undergraduate training, as an essential academic requirement for
graduation.
2. University graduates internship training in coordination with the Ministry of
general Works and Engineering Association.
3. Aircraft Maintenance OJT for Apprenticeship students and Diploma Holders,
OJT required to obtain the license.
JorAMCo trains approximately 200 students from schools and universities every
year, typically in groups of 30 to 40 trainees per session.
Year
A &P Trainee
Engineers
Before Graduate After Graduate Before Graduate After Graduate
Total
2005
40
62
33
10
145
2006
63
127
24
5
219
2007
67
118
31
9
225
2008
58
80
31
8
177
Total
228
387
119
32
766
COMMUNITY DEVELOPMENT (CONT.)
Investing in human resource
development in Jordan
Investments in community projects (US$)
2005
5
N/A
2006
2007
2008
N/A
900,000
213,365
Investing in community
Arab Sustainability LeadershipGroup, ASLG
5
N/A = Not available
The JorAMCo Academy:
JorAMCo as a major MRO service providers in the Arab region, needs to continuously employ large number of highly skilled technicians to support the business, and shoulder its
continued obligation and commitment to further the education of the local community
in Jordan and extend support to the regional aviation community to provide the needed
skilled and certified individuals.
To attend strongly to the above commitments, JorAMCo has founded its Training Academy
and establish partnership with Perth College’s Air Service Training (AST), a renowned
technical college in Perth, Scotland to train promising young students in the art and
science of maintenance and repair of aircraft including; airframe, engines, and electrical
systems.
Perth College’s Air Service Training (AST) has been serving the industry for over seventy
three years. JorAMCo has opened its own Academy adopting AST programs and material
for its students. These Programs are approved by the European Aviation Safety Agency
EASA and the British Civil Aviation authorities.
With an investment of 900,000 US$, The Academy opened its doors in 2008 as a Training
center for graduating professionals in the MRO field supplying the Jordanian and the
regional community with highly qualified technicians and mechanics.
The JorAMCo Academy is considered as one of its kind in the MENA region, with direct
access to Commercial Aircraft MRO facility of JorAMCo including Hangars, Shops and
Technical Offices. The Academy provides.
comprehensive training facilities including; classrooms, workshops and hangars, and the
convenience of JorAMCo’s main facilities within walking distance.
After four years of academic and applied education, graduates are ready to work as certified A/C technicians, many of whom would choose to join JorAMCo team.
Up until 2007, JorAMCo did not keep track of records on donation to the community.
Although the vision was focused on how our business could build the local and national
community. With the advent of the Academy, in 2007, the commitment to developing the
community has took to a bigger and proud level.
In 2008 JorAMCo has invested US $ 28,521 in different areas of sponsorship to university
study, families, CSR and donation to Sport Clubs to individuals with special needs.
Beyond community investments, we want to encourage the broader uptake of sustainability management in Jordan and the region because we firmly believe it is both smart
business practice as well as great for society. In 2008 we became a Founding Member of
the Arab Sustainability Leadership Group, ASLG, an initiative of Her Majesty Queen Rania
al-Abdullah of Jordan that is aimed at catalyzing the take-up of sustainability management and reporting by companies, governments, and civil society in the Arab world. It is
the first regional network of its kind and membership is based on a commitment to adopt
sustainability management and to publicly report regularly on sustainability performance.
One of the goals of ASLG is to increase regional awareness of sustainability challenges and
opportunities. The first program that it launched in this regard is the Arab Responsible
Competitiveness Initiative, designed to demonstrate the linkages between the take-up of
sustainability practices in a country (by businesses, government, and civil society) and the
overall competitiveness and growth of that country. JorAMCo is proud to be a sponsor of
.this program and a Founding Member of the ASLG
GRI INDEX
GRI
PAGE(S)
GRI
PAGE(S)
GRI
PAGE(S)
1.1
p.3-4
4.10
No current process
EN20
p.22
1.2
p.3-4
4.11
p.21
EN21
Not yet tracked
2.1
p.5
4.12
p.3, p.25
EN22
p.23, Not yet tracked
2.2
p.5-6
4.13
P.6
EN23
Not yet tracked
2.3
p.5
4.14
P.7
EN24
No internationally exported waste
2.4
p.5
4.15
P.10
EN25
Not yet tracked
2.5
p.5
4.16
P.7
EN26
None
2.6
p.5
4.17
P.7
EN27
None, not applicable
2.7
p.5-6
Overall Management Approach Disclosure – p.15
EN28
p.21
2.8
limited due to nature of private
company
EC1
p.15, limited due to nature of private company
EN29
tracked.21-22
EN30
2.9
p.5
EC2
No assessment yet conducted
2.10
p.6
EC3
P.15
3.1
p.10
EC4
P.15
we did not track our previous expenditures; However, see p.23 ‘Eco-Friendly Hangar Design’
3.2
Not relevant as first report
3.3
p.10
EC5
EC1
EC6
3.4
p.28
3.5
p.10
EC7
EC2
EC8
EC3
P.15
p.15, limited due to nature of priP.15 company
vate
P.15assessment yet conducted
No
3.5
p. 10
EC9
EC4
3.6
p. 10
3.7
p. 10
Overall Management
Approach Disclosure – p.21
EC5
P.15
EN1
P.23
EC7
P.15
3.8
p. 10
EN2
EC8
3.9
p. 10
3.10
p. 10
EC9
EN3
3.11
p. 10
3.12
p. 26
3.13
p. 10
4.1
p.11
4.2
p.11
4.3
p.11
4.4
p.11
4.5
p.11
4.6
None. A code of conduct has not
yet been created; however, all
board members are aware of
potential conflict of interest and
their responsibilities. Also, 6 directors are independent.
P.15
P.15
75% of the old parts are reused in
P.15
another aircraft
P.15
p.21
EN4
EN1
EN5
EN2
EN6
EN7
EN3
EN8
EN4
Overall Management Approach Disclosure – p.16-18
LA1
p.16
LA2
p.17
LA3
p.18
LA4
p.16
LA5
Not relevant as no issue up to now
LA6
p.19
LA7
p.19
LA8
threat.19
LA9
None
p.21
P.23
p.21-23
75% of the old parts are reused in
p.21-23 aircraft
another
p.21-23
LA10
p.18
LA11
None
p.22
LA12
p.18
EN9
EN5
EN10
EN6
p.22
p.21-23
None
p.21-23
LA13
p.16-17
LA14
p.17
EN11
EN7
EN12
EN8
EN13
not applicable as operation site
p.21-23
does not threaten any biodiversity
p.22
HR1
Not relevant
EN9
EN14
EN10
EN15
p.22
HR2
p.20
None
HR3
p.20
EN16
p.22
HR4
p.20
4.7
No current process
EN17
p.22
HR5
p.20
4.8
None
EN18
p.21-23
HR6
p.20
4.9
p.11
EN19
None known
HR7
p.20
GRI INDEX (CONT.)
GRI
PAGE(S)
HR8
p.20
HR9
p.20
Overall Management Approach Disclosure –
p.24-25
SO1
p.24-25
SO2
None, not yet tracked
SO3
SO4
SO8
p.21
PR1
None
PR2
None
PR3
p.6
PR4
None
PR5
p.14
PR6
p.14
PR7
None
PR8
p.14
PR9
None
ACRONYMS
ACC
AMO
AS
AST
CA
CAA
CAI
CAP
CEO
CRS
CO2
EASA
ELT
FAA
GHG
GRI
GSE
G3
HR
H&S
JCAA
JCARC
JD
JorAMCo
kg
KPIs
KWh
LTI
m3
MRO
MWh
OEMs
PPM
PPE
QA
TCAS
UAE
USA
Aircraft Controlling Custodian
Assistant Maintenance Officer
Aviation Support Equipment Technician
Perth College or Air Service Training
Cognizance Agreement
Civil Aviation Authority
Computer Aided Instruction
Corrective Action Plan
Chief Executive Officer
Certificate of Release to Service
Carbon Dioxide
European Aviation Safety Agency
Emergency Locator Transmitter
Federal Aviation Administration
Greenhouse Gas
Global Reporting Initiative
Ground Support Equipment
The G3 version of the GRI Sustainability Reporting Guidelines
Human Resources
Health and Safety
Jordanian Civil Aviation Authority
Jordanian Civil Aviation Regulatory Commission
Jordanian Dinar
Jordan Aircraft Maintenance Company
kilogram(s)
Kilowatt hours
Lost-time injury
meter cubic
Maintenance, Repair, Overhaul
Megawatt hours
Original equipment manufacturer
Policy and Procedure Manual
Personal Protective Equipments
Quality Assurance
Traffic Alert and Collision Avoidance System
United Arab Emirates
United States of Americ
ACRONYMS (CONT.)
ITP
AVEX
hrs
CI
OHSE
GPU
ASLG
International Transportation Publication
Aviation Expo
Hours
Continuous Improvement
Organizational Health, Safety, and Environment
Ground Power Unit
Arab Sustainability Leadership Group
GLOSSARY
CARBON DIOXIDE
A CHEMICAL COMPOUND OFTEN REFERRED TO BY CO2, AND IS PRESENT IN THE
EARTH’S ATMOSPHERE. CARBON DIOXIDE IS A GREENHOUSE GAS THAT, WHEN
EMITTED AS A BY-PRODUCT OF HUMAN ENERGY/FUEL/OTHER CONSUMPTION,
CONTRIBUTES TO GLOBAL WARMING.
GLOBAL REPORTING INITIATIVE (GRI)
A LONG-TERM, MULTI-STAKEHOLDER, INTERNATIONAL PROCESS WHOSE MISSION IS TO DEVELOP AND DISSEMINATE GLOBALLY APPLICABLE SUSTAINABILITY
REPORTING GUIDELINES.
G3 REPORTING GUIDELINES
A FRAMEWORK FOR REPORTING ON AN ORGANIZATION'S ECONOMIC, ENVIRONMENTAL, AND SOCIAL PERFORMANCE.
SUSTAINABLE DEVELOPMENT
AN ATTEMPT TO PROVIDE THE BEST OUTCOMES FOR THE HUMAN AND NATURAL
ENVIRONMENTS BOTH NOW AND INTO THE INDEFINITE FUTURE.
SUSTAINABILITY MANAGEMENT
THE INTEGRATED MANAGEMENT OF OUR ECONOMIC, ENVIRONMENTAL, AND
SOCIAL PERFORMANCE IN A MANNER THAT OPTIMIZES VALUE FOR ALL OF OUR
STAKEHOLDERS.
SUSTAINABILITY REPORTING
AN ONGOING TESTIMONY OF YOUR COMMITMENT TOWARDS SUSTAINABLE DEVELOPMENT.
FEDERAL AVIATION ADMINISTRATION
THE DEPARTMENT OF TRANSPORTATION'S AGENCY FOR AVIATION. IN ADDITION
TO REGULATING AIRPORTS, MANUFACTURING AND PARTS CERTIFICATION, AIRCRAFT OPERATION AND PILOT CERTIFICATION ("LICENSING"), THE FAA OPERATES
AIR TRAFFIC CONTROL, PURCHASES AND MAINTAINS NAVIGATION EQUIPMENT,
CERTIFIES AIRPORTS AND AIDS AIRPORT DEVELOPMENT, AMONG OTHER ACTIVITIES.
EMERGENCY LOCATOR TRANSMITTER
A RADIO TRANSMITTER ACTIVATED AUTOMATICALLY BY THE IMPACT OF AN ACCIDENT. EMITS A WARBLING TONE ON THE INTERNATIONAL EMERGENCY FREQUENCIES OF 121.5 MHZ, 243 MHZ AND (NEWER MODELS) 406 MHZ. ELT SIGNALS CAN
BE RECEIVED BY NEARBY FAA FACILITIES, AIRCRAFT OVERHEAD, AND SEARCH
AND RESCUE (SARSAT) SATELLITES.
TRAFFIC ALERT AND COLLISION AVOIDANCE SYSTEM
A COCKPIT SYSTEM TO DETECT OTHER TRANSPONDER-EQUIPPED AIRCRAFT, ALERT
PILOTS, AND COMMAND/COORDINATE EVASIVE ACTION BETWEEN AIRCRAFT.
ECO-FRIENDLY
ENVIRONMENTALLY FRIENDLY
REQUEST FOR FEEDBACK
Comments or questions about this report are encouraged and can be directed to:
sustainability@joramco.com.jo
To download this report or to request a printed version, please visit
www.joramco.com.jo
This is a network of businesses, government agencies, and NGOs
that have taken the lead in committing to adopt sustainability
management and reporting in the Arab region. The ASLG serves
as an experience sharing forum, as well as a vehicle for accelerating
the take-up of sustainability in the region. The ASLG is an initiative
of Her Majesty Queen Rania Al-Abdullah of Jordan. NCB is a founding
member of the The Arab Sustainability Leadership Group (ASLG).

Sustainability Report Body__16_05-11-09.indd

Transcription

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