LFV Annual Report 2019 1
INVE S TMEN T PLAN L F V 2019 INVESTMENTS Outcome
2016 Acquisition and development of new investments ATM equipment Radar equipment Communications equipment Radio equipment Buildings IT Commercial investments Other Sum of funding acquisition and development Of which investments in fixed assets Funding Own resources Sum of funding acquisition and development Maintenance of existing investments ATM equipment Radar equipment Communications equipment Radio equipment Buildings IT Commercial investments Other Sum of costs for maintenance Of which investments in fixed assets Funding Own resources Sum of funding maintenance In order to ensure adequate capacity and a high level of flight safety, LFV continues to make considerable investments in technical systems, working methods and technical equipment for operations. LFV makes investments in new technical solutions and continuous upgrades for maintenance and considerable investments for a more robust air traffic service. Definition of priorities is guided primarily by the requirements on system development that are established by the EU and the need to successively develop and renew the infrastructure, increase robustness in control centres and the technical infrastructure for air traffic service. The increased interest in digitalisation and remote air traffic control has also resulted in continued investment. Considerable investments were made during the year in remote air traffic control (RTS), ATM, radar and communications 46 1 1 – 16 6 17 – 88* 88* 88 88 12 5 15 6 1 0 9 – 49 49 49 49 * Excluding purchase of shares in associated companies, SEK 25 million. equipment. The initiatives are partly due to LFV's current status of converting to a new system and partly to meet new regulatory requirements on the infrastructure, as well as the need to improve robustness and the capacity to meet the increased air traffic volumes in Swedish airspace and to ensure continuity of operations. The investments in radar equipment are a step in the modernisation of radar stations and to meet increased requirements on monitoring of the airspace. The investments are also a result of the need to invest in new technology demanded by regulations. There are also other needs and requirements to invest in radar communication in order to maintain aviation safety and capacity. For several years, LFV has invested and developed infrastructure within remote air traffic control, referred to as Remote Tower Services (RTS), in order to meet the demands of customers and the Outcome 2017 62 21 35 – 3 3 29 – 153 153 153 153 5 28 30 10 1 – – – 73 73 73 73 Outcome 2018 112 38 12 2 101 0 – – 264 264 264 264 7 27 22 3 – 1 – – 59 59 59 59 Plan 2019 104 138 32 195 – – 66 25 559 559 559 559 4 33 16 – 9 1 – – 62 62 62 62 Outcome 2019 173 122 4 124 – 6 – 2 430 430 430 430 6 24 29 2 6 – – 1 68 68 68 68 market. In 2018, a new control center for remote air traffic control was established, RTC Stockholm, and completed in 2019. Investments are also made in technical solutions for RTS and operations from RTC Stockholm, including technical equipment for RTS at four of Swedavia's airports. LFV has made considerable investments in radio, transmission and telecommunications systems because of the aging systems and in order to maintain safety, capacity and availability. New regulatory requirements have also necessitated increased investment in communications and radio. LFV foresees continued investment in networks, communications and in the coming years with a focus on robustness and physical and logical IT security. The year's investment and new construction in progress within the scope of grant-subsidised operations for robust air traffic total SEK 196 million, which will be financed with future grants in steps with depreciations in the coming years. LFV continuously re-prioritises and adjusts the investment plan in response to changes in the surrounding world and operational needs. Certain adjustments of the investment plan in the appropriation direction for 2019 have taken place. The distribution between new investments and maintenance, however, is at the same level as the plan. The overall investment need has increased continuously in recent years, primarily with respect to ATM, radar and communications equipment. The plan for 2019 essentially entailed a doubling of the investment level in comparison with 2018. In comparison plans, it is primarily ATM equipment that has been higher than expected, whereas commercial investments and investments in radio equipment are lower. The outcome for 2019 is lower than planned, which, in addition to certain re-prioritisation, is primarily based on delayed implementation, partly because of the challenge of having adequate human resources in order to manage the ambition plan, partly because of procurement and deliveries from external providers. Due to increased investment in infrastructure on the basis of new regulations, increased demands on capacity, increased social demands and increased robustness in air traffic service in all preparedness situations, investments are expected to increase in the coming years. Certain adjustments may take place. 63