for the year ended March 31, 2023

Management’s Discussion and Analysis (MD&A) outlines CATSA’s financial results and operational changes for the year ended March 31, 2023. This MD&A should be read in conjunction with CATSA’s audited annual financial statements and accompanying notes for the year ended March 31, 2023, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The information in this report is expressed in thousands of Canadian dollars and is current to June 15, 2023, unless otherwise stated.

CATSA is an agent Crown corporation with a Board of Directors appointed by the Governor in Council on the recommendation of the Minister of Transport.

Board of Directors

CATSA is governed by an eleven-member Board of Directors. Two of the Directors are nominated by the airline industry and two by the airport industry. All Directors are independent of CATSA management. The Board of Directors and its committees generally meet on a quarterly basis, and as required to effectively oversee the corporation’s business.

Table 1: Results for the Implementation of CATSA’s Mandate

The following table identifies key performance indicators (KPIs), which correspond to the organization’s performance in the management of its mandated operations. These KPIs are reported to the Senior Management Committee and the Board of Directors on a quarterly basis for oversight and management of the organization’s performance.

Effectiveness

Given the sensitivity of this performance category and its associated results, this data cannot be included in a public document.

Enterprise risk management enables strategic decision-making and supports resource allocation within CATSA, thereby allowing the organization to make informed decisions at the corporate and operational levels.

CATSA’s risk attitude and risk culture allow the organization to accept certain levels of risk, enabling the organization and its workforce to respond to the changing environment in innovative ways.

CATSA will continue to work collaboratively with Transport Canada, airport authorities, airlines, screening contractors and other industry partners to provide effective and efficient security screening services while being a critical partner in the recovery of the civil aviation industry, without compromising security effectiveness.

Pre-board Screening

PBS Wait-Time Service Levels

CATSA screened an estimated 57.6 million passengers in 2022/23, which represents a 134.7% increase from 2021/22 traffic, and 84.8% of the 2018/19 pre-pandemic traffic. CATSA operations have continued to adapt to the dynamic domestic and international travel patterns.

Screening Officer Staffing and Training

In an effort to address passenger wait times at certain airports in Canada, CATSA accelerated the hiring and training of over 1,800 screening personnel, between April and August 2022, and an additional 500 screening officers by December 2022. As such, CATSA had sufficient resources for the busy Holiday travel season and the organization was successful in maintaining reasonable screening wait times.

As a federal Crown corporation, CATSA is fully committed to supporting the federal government’s social, economic, and environmental priorities, as set out in the Speech from the Throne, the government’s budget plans, the mandate letter from the Prime Minister to the Minister of Transport, and the letter of expectation from the Minister of Transport to the Chairperson of CATSA’s Board of Directors.

Passenger Traffic and Screening Operations

As the civil aviation industry began to recover in 2022, CATSA responded as swiftly as possible to the volatile operating landscape and protracted industry recovery, adjusting operations where suitable while remaining focused on the organization’s security mandate.

It is with great pride that I present the 2023 annual report, my first as President and CEO at the Canadian Air Transport Security Authority (CATSA). As I step into my new role, I would like to express my sincere thanks to my predecessor Michael Saunders. His commitment and contributions to CATSA and aviation security in Canada have been exceptional, and I consider it an honour to carry on leading this important organization.