LFV Annual Report 2019 1
DIRE C T OR S ’ REPOR T L F V 2019 tions infrastr
ucture is also in progress. Among other things, a reserve system for voice communication was commissioned in Malmö ATCC, Stockholm ATCC and in Sundsvall. Work to expand national coverage for the emergency frequency 121.5 and to install a third radio operator for the Stockholm terminal area were also begun this year. COOPANS – CONTINUOUS DEVELOPMENT COOPANS is an alliance consisting of air traffic service providers (Air Navigation Services Provider, ANSP) in six countries – Sweden, Denmark, Ireland, Austria, Croatia and Portugal. The purpose of the alliance is to reduce costs for technological development and implementation by means of collaboration. The alliance works continuously with requirements specification and development of the air traffic control system and related issues, such as strategic discussions about how the collaboration should develop over time. The air traffic control system TopSky is under continuous development, with improved functionality and implementation of new EU requirements. Several updates of TopSky's software have been put into operation this year. The system's hardware was also replaced in 2019. An area that was also discussed within COOPANS this year is the need of an update of the core of the TopSky air traffic control system, the FDP (Flight Data Processor). This need is driven partly by regulatory requirements within Single European Sky (SES), but a general modernisation of the FDP is also necessary. An analysis of what this involves and which way forward is most advantageous from an operative and economic perspective has been conducted during the year. Delegated air traffic control In the autumn, LFV and Naviair, as representatives for COOPANS, together with Thales, carried out a technical demonstration of delegated air traffic control from Malmö to Kastrup within the scope of a project in the SESAR2020 programme. The demonstration was carried out with the help of the Virtual Center concept: a geographic decoupling of operating position and data supply for a control center. Delegation of airspace has the purpose of improving efficiency and increasing flexibility when providing air traffic control en route. Application of a Virtual Center is possible in several areas of application, such as distributed training and testing of new TopSky versions. The concept demonstrates the possibility of having a system in one geographic location and air traffic controllers in another, as well as to control air traffic across national borders. This creates possibilities for lowering costs by centralising and sharing technical infrastructure and is one of the pillars of Single European Sky's ATM Master Plan. LFV'S WORK IN PREPARATION FOR THE ACQUISITION OF ELTEL'S BUSINESS AREA AVIATION & SECURITY Operation and support of LFV's operative systems are an important part of the core activities for provision of effective and safe air traffic service. LFV has received such service for many years from Eltel Aviation & Security. Based on LFV's sourcing strategy, the resumption of total defense, the changes in the surrounding world and the new Swedish Protective Security Act's conditions, LFV has decided that the operations of Aviation & Security, that are currently run by Eltel, should be conducted under LFV's own management. The business area Aviation & Security is operative in the Swedish market and provides technical operating and maintenance services to control center, airports, other state authorities and companies in Sweden. The assessment is that the entire business area should be acquired by LFV. The reason for this is that the business area's operations take place throughout the country with shared resources and that effectiveness would otherwise be lost. Because LFV is the biggest customer and user, it is also a natural decision for LFV to acquire the entire operations. Declaration of intent signed In June, Eltel and LFV signed a declaration of intent specifying that LFV will acquire Eltel's Swedish business area Aviation & Security. In the declaration of intent, both parties have undertaken to work towards concluding a final contract during the first quarter of 2020. After the declaration of intent was signed, LFV conducted a detailed investigation of the operations within the business area – due diligence, an established process for a planned acquisition by a company. This involved, among other things LFV reviewing the finances, assets, systems, processes, customers and agreements, legal issues, personnel and other related areas in order to be able to make an overall assessment of the operations it intends to acquire. Both Eltel and LFV have had a close dialogue and conducted analyses in parallel of which dependency issues there are in order to ensure that the acquisition will take place as smoothly as possible. LFV and Eltel are now working together to complete the acquisition during the first quarter of 2020. The transaction is subject to the approvals and decisions from the boards of directors of both parties, the Swedish Competition Authority and the Government and Riksdagen. Delegation of airspace has the purpose of improving efficiency and increasing flexibility when providing air traffic control en route. FACTS ABOUT ELTEL'S BUSINESS AREA AVIATION & SECURITY The business area Aviation & Security provides technical operating and maintenance services to control centers, airports, other state authorities and companies in Sweden. The business area employs a staff of approximately 200 and had a turnover of approximately SEK 300 million in 2018. 25