Revenue Generating Activities
The Ancillary Revenue Generation Fund (ARGF) results for 2014 outperformed key performance indicators in revenue generation with a modest gross surplus. During the year, a contribution to the Regular Programme Budget made by the ARGF amounted to CAD 5 082 000. In addition, another CAD 2 125 000 was provided for the regular work programmes in various areas of the Organization that could not be covered by the Regular Programme Budget, such as dangerous goods, safety tools, air transport data, conference services and ICT.
In order to ensure that revenue generation can continue to make a sustainable financial contribution, in February, the Council adopted the Policy on Revenue-Generating Activities, which provides overall direction and guidance to ICAO in the pursuit of revenue-generating activities. The policy also outlines ARGF objectives, principles, governance and main activities, as well as the financial requirements and responsibilities of the Secretariat.
In accordance with the policy, the Secretariat developed ARGF budgetary estimates for the years 2014 and 2015 together with the associated business plans, which were subsequently reviewed and endorsed by the Council in June and November, respectively.
The ARGF business plan was designed to improve the performance of the ARGF and elucidate the path to sustainable positive incomes in response to market demand and the changing needs of the Organization. Three short-term priorities were identified in the business plan: a) maximizing revenues from existing products by strengthening ICAO’s market position; b) making products more attractive with enhanced portfolios; and c) proactively increasing recognition and awareness of ICAO, thereby creating a strong, broader client base.
The implementation of the business plan involved change in how revenue-generating business is carried out by the Secretariat, for example, by increasing overall resource flexibility, strengthening a market analysis function, placing internet marketing at the centre of promotion, and building capacity for latest techniques and technologies.
To keep the innovation wheel turning, efforts were strengthened in the development of new products that will offset the inevitable downturn of traditional paper-based products. During the year, several new products were developed for revenue generation such as performance-based navigation (PBN) publication bundles, business analysis tools and a business-to-business matching facility.