LFV Annual Report 2019 1
L F V 2019 DIRE C T OR S ’ REPOR T CONTINUING MAJ
OR CHALLENGES LFV's financial standing will continue to be strained in the coming years. The trend will be largely determined by the conditions related to expenses and fees that will be defined by EU in the performance plan for the upcoming third reference period, which begins on 1 January 2020. LFV is also affected to a major extent by air traffic's development and the interest situation and its influence on pension provision. For the present, there is a great deal of uncertainty about the general economic trend and how air traffic will develop. Eurocontrol's latest forecasts also indicate a tapering of air traffic's development. The forecasts indicate growth in airspace movements, but lower growth than in recent years, at 1–2 per cent per year. A lower traffic volume has a direct influence on LFV's fee revenues. An upcoming slowing of the economic trend may have a negative impact. There is also uncertainty relating to how long the low interest situation will continue and how the interest rate trend can be expected to develop in the coming years. In 2020, an analysis will be conducted of various possible alternatives for financing the pension liabilities. MEETING EFFICIENCY IMPROVEMENT REQUIREMENTS The process of developing a performance plan, including fee levels for the period of 2020–2024 is in progress. One of LFV's greatest challenges is meeting the efficiency improvement requirements in the fee system's third reference period. High demands on cost effectiveness can also influence the capability of fulfilling other operative goals negatively, including the ability of maintaining capacities. The Swedish Transport Agency has drafted a proposal for a national plan for Sweden. The EU Commission is expected to reach a decision in February 2020 on the performance plan, including fee levels for the period of 2020–2024. DIGITALISATION Sweden and LFV are world-leading within digitalisation and expansion of remote air traffic control. The challenge in the coming years will be to maintain this position and ensure a good return on the investments that are made. MASS RETIREMENTS LFV faces mass retirements, which puts demands on the supply of competence for a long time to come. LFV plans continued fundamental training of operative air traffic controllers in the coming years. This entails both economical and organisational challenges. INCREASED SAFETY FOCUS Changes in the surrounding world and a modified threat scenario have meant that issues that concern civil defense, protective security work and information security will gain increasing focus in the coming years. We foresee that security-related issues will gain increasing importance going forward. 26