LFV Annual Report 2019 1
DIRE C T OR S ’ REPOR T L F V 2019 a control cent
er for remotely-controlled air traffic control. LFV's infrastructure form of control centers, radar stations, navigation aids, operative systems, etc. is used for this purpose. The service is provided at the airports from the air traffic tower provided by the airports and primarily with equipment provided by the airports. Air traffic service accounts for 89 (92) per cent of LFV's total turnover excluding group-internal dealings between the government owned company and NUAC HB. In 2019, air traffic service accounted for a total of SEK 2,271 million (2,245). Air traffic service is financed primarily by transit fees 73 (79) per cent, compensation from the Swedish Armed Forces 15 (10) per cent and compensation for operations at civil airports 12 (11) per cent. Transit fees finance air traffic services in the remaining airspace and air traffic services for departure and arrival, as well as at the airports. Transit and terminal fees are regulated by performance plans defined by the EU. The predominant part of the air traffic services is provided with sole right in a regulated market. That applies to air traffic services in the remaining airspace and services that are provided for the Swedish Armed Forces and Swedavia. Less than 1 (1) per cent of turnover for air traffic service is attributed to the part of the market subject to competition in Sweden and internationally. The market subject to competition is characterised by pressure to reduce prices and LFV has discontinued operations at a number of operations in connection with procurement proceedings. The interest company Saab Digital Air Traffic Solutions AB (SDATS) has had agreements with the airports in Sundsvall and Örnsköldsvik for remote air traffic services (RTS) since 1 January 2019. LFV has provided the service on SDATS' behalf for part of 2019, until SDATS receives its own certification and designation. OTHER COMMERCIAL SERVICES Other commercial services contracting of air traffic controllers and other personnel resources, flight measurement and other technical products, consulting services and the common service function (GSF), external sale of services to other public authorities. Turnover, for services in both the national and international markets, totalled SEK 130 million (131), which equates to 5 (5) per cent of LFV's total turnover. RESEARCH AND INNOVATION LFV conducts research and innovation (R&I) within the air traffic area primarily within the scope of the European research programme for air traffic control. Single European Sky ATM Research (SESAR). Operational costs will be covered by external financing and financed primarily by EU subsidies and funding from the Swedish 19 Transport Administration. LFV has an important role in the national control group with strategic expertise within the air traffic area. Research and innovation activities accounted for SEK 67 million (57) which equates to 3 (2) per cent of LFV's total turnover. OPERATIONS DIRECTLY FUNDED BY THE STATE LFV has been part of the operations financed by a government grant for a few years. For 2019, LFV has been allotted a grant for SEK 93 million (25) for civil defense within expense area 22 Communications. The grant equals 4 (1) per cent of the turnover. The grant provides LFV with funds for expenses for administrative costs and other measures for preparedness and civil defense within the transport sector and with respect to investments in infrastructure for air traffic service. LFV will provide a robust air traffic service in all preparedness situations. LFV has started a programme to create additional robustness and redundancy within the air traffic safety area. The programme comprises measures in the form of expenses that are offset directly against the grant, and investments, which are offset with deductions during the utilisation period in the coming years. The programme is as expansive as possible over a wide area with respect to the type of measures, including relatively comprehensive investments. The work is largely project-based and consists of internal and external costs where there is also dependency on accessibility and the ability of subcontractors to deliver. Part of the grand funds have been utilised in 2019 for capability analyses and preparations for measures and investments to improve robustness. Of LFV's four areas of operation, approximately 90 % of the turnover is attributable to the air traffic service area.