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 NUMBER OF AIRSPACE MOV
EMENTS (thousands) 650 675 700 725 750 775 800 762 706 689 694 712 705 726 The partnership with GAL has contained additional missions in the region, in the form of technology consultant services, as well as process and airspace design. The agreement with GAL has been running for five years and will not be extended when expired 30 April 2018. In Norway LFV has continued to pro2011 2012 2013 2014 2015 2016 2017 EN ROUTE CHARGE (SEK/service unit) 500 540 580 620 660 700 662 633 664 640 609 579 581 vide services according to the renewed agreement from last year regarding flight controls at the airports of Avinor. The agreement runs for five years, with a twoyear option. LFV follows the market development and the possibility to provide the Norwegian market with further services. LFV has also received renewed trust for flight controls in Denmark and has entered an agreement for three years, comprising all of Denmark's civil airports. During the year, LFV has also worked with consultancy missions in Rwanda and Thailand. 2011 2012 2013 2014 2015 2016 2017 remaining part financed by en route charges. In 2018 the charge will be reduced by 3.1 per cent. Sweden's en route charge is slightly above the European average, but in line with Denmark and many other countries in Western Europe. Compared to some of our Nordic neighboring countries, the charge is still higher, largely due to differences in the charging structure. Unlike other countries, the Swedish en route charges finances a large proportion of local air navigation services at airports. The international market Like the Swedish market, the international market for air traffic services and airport products is to a large extent restricted by different regulation and, to a limited degree, competitive as well. Since LFV is at the forefront when it comes to technology and operative knowledge, as well as experience from international business, a continued focus is on working in the international competitive market. During the year a review has been carried out of the sales strategy and the focus for the international market for the next couple of years. Markets of interest are, for example, Norway, Denmark, Great Britain, Germany, some Asian countries and the Middle East. Since 2013, LFV has had a partnership with GAL (Global Aerospace Logistics), as regards air navigation services at five airports in the United Arab Emirates. 34 Performance plan and efficiency programme Within the EU, there are extensive regulations for air navigation service providers. This includes elements such as certification requirements, requirements for technical harmonisation, and the creation of functional airspace blocks crossing national borders. An additional part of these regulations is that the European Commission adopts performance plans, which are setting targets for air navigation service providers in terms of aviation safety, capacity, the environment, and cost efficiency. The performance plans encompass en route Navigation Services and terminal services at Stockholm Arlanda Airport. As far as LFV is concerned, the challenge is, above all, the objective of cost efficiency. The system regulates the en route charges and the terminal charges at Stockholm Arlanda Airport. The en route charges finance, in addition to the air traffic service en route, performed by the control centers and the accompanying infrastructure, also flight information services, and a major part of the local air traffic service, performed from the airport's control towers and terminal controls. All in all, these charges amounts to around 80 per cent of LFV’s turnover. 2017 was the third year of refercence period 2 in the performance plan system. The result for 2017, as for 2015, and 2016, is preliminary, but shows that the targets for flight security, capacity and environment are met. Regarding cost efficiency, the targets are met, both for en route and terminal Arlanda, except costs for sharing risk, i.e. deviations in pension costs, primarily due to changes in the interest level. A final reconciliation will not be carried out before the end of the reference period, which will be in 2020, at the earliest. The objective for the 2015–2019 period is to reduce the fixed price costs with 2.4 per cent on average each year. Today, the assessment is that the targets for cost efficiency will not be met during the remaining years of reference period 2, i.e. 2018–2019. The work with updating regulations and setting objectives for the upcoming reference period, which begins in 2020, is in progress. LFV works actively to affect the shape of the third reference period, and has, together with Danish Naviair, presented a proposal for an alternative governance model which would entail a reduced complexity and where the objectives are adapted to each state's and service provider's individual prerequisites. In the business plan, LFV has stipulated ”Position 2019”; LFV is commercial and competitive in all areas and drives the market with new technology. As a part of the transformative work an efficiency program is carried out, which up to and including 2017 entailed cost-reducing activities of slightly over SEK 200 millions. Though it has been proved to be more difficult than expected to carry out further effectivities, mostly in the operational activities. Furthermore, a heavier growth in traffic than expected and increased requirements on the infrastructure have entailed increased resource needs and costs. Capacity and delivery During 2017 LFV’s air traffic service has reached the highly set targets for availability and capacity with minimal delays. 99.9 per cent of the flights en route in the Swedish airspace, managed by our control centers has been carried out without delays due to the air traffic service. This includes the operative service as well as the technology service providing the infrastructure. The objective has been met, in spite of the large increase in traffic during the year. The operative resource planning of LFV is based on the traffic prognoses Eurocontrol makes for the Swedish airspace. In 2017 the air traffic has increased significantly more than prognosticated. 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