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 terminal services rega
rding aviation saftey, capacity, environment, and cost efficiency. The major part of the air navigation services is run with exclusive rights on a regulated market. This concerns air navigation services in the upper airspace (en route), and services for the Armed Forces, and Swedavia. Less than 1 (1) per cent of the turnover for air navigation services can be attributed to the competitive part of Swedish and international market. The competitive market is characterized by strong price pressure and during the last couple of years, LFV has, in connection to procurements, left the operations at a number of airports. During the year LFV has been awarded the procurement contract for air traffic management at Halmstad Airport, but the procurement is currently under review and is yet to be decided. Air Navigation Service had a total turnover in 2017 of SEK 3,051 (2,937) millions. The turnover has increased compared to the previous year, mainly due to increased air traffic volumes. The aviation saftey, capacity, environment, and cost efficiency targets of the performance plan have been reached with exception from cost exempted, from risk sharing. Research and Innovation LFV conducts research and innovation (R&I) within the field of aviation, especially within the framework of the European research programme for air traffic management, Single European Sky ATM Research (SESAR). The objective for the operation is for the costs to be covered through external financing. LFV’s R&I operations is mainly financed by EU funding and grants from the UNIT RATE 2017, EURO 100 80.00 20 40 60 80 0 Italy UK Spain Germany France Sweden Denmark Finland Norway Lithuania Poland Ireland Latvia 75.69 71.69 69.36 67.00 60.71 60.47 56.23 46.79 44.42 42.96 29.54 27.46 Swedish Transport Administration. LFV has an important role in the national steering group with strategic expertise in the field of aviation.During the year LFV’s research and innovation operations had a turnover of SEK 58 (60) million, accounting for 2 per cent of LFV’s total turnover. Other Commercial Services Other commercial services include renting out air traffic controllers and other staff resources, flight inspection and other technology-related products, consulting services, as well as external sales of services to other authorities through the common service feature GSF. Flight inspection is a product within commercial services where investments are made for a continued development of the service. The turnover for Other commercial services, which include services on the national as well as the international markets, amounted to SEK 158 (152) millions, accounting for 5 per cent of LFV’s total turnover. The part relating to the international market had a total turnover of SEK 44 (40) millions in 2017, with the largest parts consisting of the commissions in the United Arab Emirates, Norway, and Denmark. The revenue from the international export operation is in line with 2016, but lower than budget, mainly due to a decrease in new sales. The financial development of Other commercial services has not come up to expectations. During the year LFV has decided, among other things, on a revised strategy and investment for developing the flight inspection operation to turn the development around. Air Traffic and Charges The number of aircraft movements in Swedish airspace increased by 5 per cent in 2017 and amounted to more than 762,000 movements, which is the greatest volume of traffic that has been handled in the Swedish airspace during a single year. The previous peak year of 2016 was exceeded by 35,500 movements. Primarily, the increase is due to traffic to and from Arlanda and overflights. The largest increase is overflights, which grew with 6.2 per cent. International traffic increased with 5.6 per cent and domestic traffic with 0.8 per cent. Overflights represent more than 40 per cent of the total volume of traffic and consist of traffic that neither take off nor land in Sweden. Air traffic has increased during the whole year, but the summer months had the largest increase during 2017. There has also been a shift of the traffic flow over the Baltic Sea air, leading to traffic further in over Sweden, which in turn resulted in longer distances in the Swedish airspace. In the long term, continued growth in traffic in the Swedish airspace is anticipated. The number of service units, the unit forming the basis for the invoicing of en route charges which is calculated as a combination of the number of flights, aircraft weight and distance flown, increased by 6.2 per cent in 2017, due to more flights for longer distances and with heavier aircraft. On 1 January 2017, Sweden’s en route charge was raised by 0.2 per cent. Slightly under 80 per cent of the charge relates to LFV’s operations. Other air navigation service providers, government agencies and Swedish airports account for the LFV ANNUAL REPORT 2017 33
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