LFV Annual Report 2019 1
L F V 2019 DIRE C T OR GENERAL ' S S T ATEMENT 20
19 WAS AN EVENTFUL YEAR FOR LFV LFV's aviation safety is good. 2019 was the year when air traffic decreased for the first time since 2012 and the number of aircraft movements in Swedish airspace was 774,000. The decrease breaks a trend of several years of growth. There may be several contributing explanations for this, including a slowing economic trend, the weak Swedish krona and environmental and sustainability issues. We also see to a further extent how various factors in the surrounding world influence LFV's operations. Additional savings are not possible without incurring substantial consequences for operations and capacity. LFV's result after financial items is SEK -40 million, which is approximately SEK 45 million better than the budget for 2019, but SEK 45 million lower than the previous year. With the configuration of the system of fees, the compensation to LFV for air traffic services is limited. We have now reached a threshold where additional savings are no longer possible without incurring substantial consequences for operations and capacity. Reference period 2 concluded during the year. A reference period is a five-year period in which EU's air traffic service providers are guided by established goals with respect to aviation safety, costs, capacity and the environment. With respect to cost-effectiveness, Sweden is now among the least expensive providers of air traffic control in western Europe. In 2015, Sweden's unit rate, the flight that airlines pay per flight, was EUR 66.29. After comprehensive work to improve efficiency, the fee was reduced to EUR 50.88 by 2019. Only four countries in western Europe have a lower unit rate than Sweden. The amount of the fee is also influenced positively by the weak Swedish krona. The EU's reference periods mean that LFV must walk a tightrope. On the one hand, we operate a business, air traffic service under commercial conditions. On the other hand, operations are governed by regulations and performance with cost and efficiency demands. It is not always easy to align the two perspectives, either in the short term or the long term. NEW EU REGULATION In 2019, intensive work was carried out in LFV in order to implement EU Regulation 2017/373. The purpose of the regulation is to coordinate and augment the work involved in EU's air traffic service providers' operations. Just before Christmas, the Swedish Transport Agency granted approval that LFV fulfills the new requirements. REMOTE AIR TRAFFIC CONTROL The work in collaboration with Swedavia to establish remote air traffic control at four Swedavia airports continues. LFV's control center at Arlanda is finished and the technical installation is in progress. When the airports in Kiruna, Umeå, Östersund and Malmö are connected to the center, they will have a modern digital air traffic service. Scandinavian Mountains Airports was inaugurated in December. Sweden's largest Alpine area now has now gained increased accessibility with a modern airport and the latest technology within remote air traffic control. The air traffic is controlled from the control center in Sundsvall by our associated company Saab Digital Air Traffic Solutions. LFV and the company have contributed smart solutions for the needs that the new airports have. TOTAL DEFENSE IN FOCUS Since 2015, LFV has been commissioned by the government to resume total defense planning in coordination with other authorities responsible for monitoring. The civil defense should, among other things, defend the population and protect the key social functions, such as transportation. At the same time, LFV should provide continued support to the Swedish Armed Forces and continue to work according to the Swedish model that is based on collaboration and integration of civil and military air traffic. LFV's work is based on a long-term approach for increased and resumed total defense capability. LFV's programme for Robust Air Traffic Service should ensure that LFV can provide safe and effective air traffic service in all preparedness situations. This is a prioritised and important issue for LFV and Sweden. We contribute to protection of democracy and the Swedish model with an air space for both civil and military traffic. LFV RESUMES ROUTE OPERATIONS Since 2012, LFV's and Danish Naviair's jointly owned company NUAC has contributed to improvement of efficiency and advancement of operations in the common air space. With new conditions and an increased focus on technological collaboration, the owners decided to close down the company in 2019. It means that en route that is our largest area of operations returned to LFV. Collaboration with our Danish colleagues continues, albeit in other forms. 4