ANNUAL REPORT 2017 Director-General's Statement
ANNUAL REPORT 2017 LFV is with you on the travel
ANNUAL REPORT 2017 This is LFV
ANNUAL REPORT 2017 The Year in Brief
ANNUAL REPORT 2017 Operating Environment and Marke
t
ANNUAL REPORT 2017 Strategy and Objectives
ANNUAL REPORT 2017 Customer Focus
ANNUAL REPORT 2017 Environment
ANNUAL REPORT 2017 Aviation Safety
ANNUAL REPORT 2017 Innovation
ANNUAL REPORT 2017 Cooperation and Partnerships
ANNUAL REPORT 2017 Employees
ANNUAL REPORT 2017 Board of Director's Report
BOARD OF DIRECTORS' REPORT THE OPERATIONS IN GENE
RAL AND IMPORTANT EVENTS DURING THE YEAR LFV’s role is to provide safe, efficient and environmentally adapted air navigation services for civil and military aviation. LFV also has to work to ensure that the transport policy objectives are achieved. The State-owned enterprise LFV offer air traffic services nationally and internationally. In 2017 LFV carried out air traffic services at 20 airports all over the country, at two control centers in Stockholm and Malmö, as well as a center for remote air traffic services in Sundsvall. In 2017, LFV had a turnover of SEK 3.3 billion, (3.1) and the number of full-time equivalent employees was 974 (983). Composition of the LFV Group The Government’s instructions for LFV (SFS 2010:184) state that LFV and other companies over which the state has a direct or indirect decisive influence, together form a state-owned enterprise group. The Group consists of the state-owned enterprise, the wholly owned holding company LFV Holding AB, its wholly owned subsidiaries LFV Aviation Consulting AB and LFV Norway AS, and the associated companies NUAC HB, Entry Point North AB, as well as SAAB Digital Air Traffic Solutions AB. LFV Aviation Consulting is LFV’s subsidiary for international consulting services within civil aviation. LFV has an extensive and broad experience of large and successful projects both within the area of air navigation services and airports in many parts of the world. LFV Norway AS was established in 2015 to represent a presence in the Norwegian market. While waiting for a continued deregulation of the market for local air traffic services, the company has not yet any commence operations. Currently, the business on the Norwegian market still is supplied through LFV Aviation Consulting AB. NUAC HB is a subcontractor to LFV and the Danish air navigation service provider Naviair. LFV and Naviair hold 50 per cent each. NUAC is responsible for the parent companies’ remit to provide en route air navigation services in Danish-Swedish airspace from the Swedish control centers 32 in Stockholm and Malmö, as well as the Danish control center in Copenhagen. NUAC rents the operational staffing resources required to undertake this role from LFV and Naviair. LFV and Naviair also make their control centers and other infrastructure available. Entry Point North AB (EPN) is jointly owned by LFV to 33 (25) per cent, in common with Danish Naviair, and Irish IAA. In 2017, Norwegian Avinor sold its ownership share to the other partners. EPN provides air navigation training, primarily to the owner organisations, but also to other customers. The associated company Entry Point North AB group includes the wholly owned subsidiary Entry Point North Ireland DAC, and Entry Point Denmark ApS, as well as 51 per cent of the Hungarian subsidiary Entry Point Central KFT – the remaining 49 per cent is owned by Hungaro Control Plc, which is owned by the Hungarian State. SAAB Digital Air Traffic Solutions AB, commenced its operations on 1 September 2016. LFV owns 41 per cent of the company and SAAB 59 per cent. Through this company the work in managing, developing, and driving the digitalisation of remotely operated air traffic services continues. The company offers total solutions by combining LFV’s unique operational expertise within RTS, Remote Tower Services, with SAAB’s leading technology and global organisation. Certifications LFV is certified by the Swedish Transport Agency in accordance with the EU regulations concerning common requirements for the provision of air navigation services. LFV is also certified in accordance with the ISO standards 9001 and 14001 for quality management and environmental management, respectively. LFV has the Swedish Transport Agency’s approval to train air traffic management staff, design airspaces and carry out flight inspection of, for example, navigation aids. Reports from operative areas and geographical markets LFV’s operations pertains to three main operative areas; Air navigation services, Research and Innovation, and Other Commercial Services. Air navigation services Air navigation services consists mainly of air control management services. Air navigation services also entails flight information and weather presentation. The services are performed for civil as well as military aviation. The operations include air navigation services provided in the upper airspace (en route) from the control centers in Stockholm and Malmö. Furthermore, the air navigation services provided in the control zones of the airports and terminal areas (i.e. the area in and in connection to the airports, as well as during arrival and departure) from the airports' control towers, and independent terminal control centers. This also includes a control center for remotely operated air traffic services in Sundsvall, which is run by LFV. To this purpose LFV’s infrastructure, in the form of control centers, radar stations, navigation tools, operative systems etc, are used. At the airports the service is performed from the control towers, provided by the airports and mainly with equipment supplied by the airports. Since 2012, the operational activities in the Danish-Swedish airspace block are carried out with Danish Navair via the joint company NUAC HB. The customers are the airlines and air carriers operating in the Swedish airspace, the Swedish Armed Forces, as well as Government-owned, municipal, and private airports. Air navigation services accounts for about 92 per cent of LFV’s turnover, excluding internal corporate transactions between the state enterprise and NUAC HB. Air navigation services are mainly financed by route charges and terminal charges (around 80 per cent), compensation from the Swedish Armed Forces (around 10 per cent), and compensation from civil airports (around 10 per cent). Route charges are financing the air navigation services in the upper airspace (en route), as well as part of the air traffic services during approaches and climb-outs, and at the airports. The route charges are regulated through performance plans, determined by the EU. The performance plans include targets for en route and LFV ANNUAL REPORT 2017
ANNUAL REPORT 2017 Income Statement, Comments on t
he Income Statement
ANNUAL REPORT 2017 Balance Sheet
ANNUAL REPORT 2017 Comments on the balance sheet a
nd funds statements
ANNUAL REPORT 2017 Financing
ANNUAL REPORT 2017 Accounting and Valuation Princi
ples
ANNUAL REPORT 2017 Notes
ANNUAL REPORT 2017 Investments
ANNUAL REPORT 2017 Reporting in Accordance with Pe
rformance Plan
ANNUAL REPORT 2017 Reporting in Accordance with Ap
propriation Directions
ANNUAL REPORT 2017 Risk Management
ANNUAL REPORT 2017 Dividend Proposal
ANNUAL REPORT 2017 Audit Report
ANNUAL REPORT 2017 Board of Directors
ANNUAL REPORT 2017 Group Management
ANNUAL REPORT 2017 Five Years at a Glance
ANNUAL REPORT 2017 Abbreviations and Explanations