LFV Annual Report 2022 1
6 OVERVIEW / The Director General has the floor A
year of exceptional events The area of Total defence is growing A changed international situation with Russia's invasion of Ukraine is slowing down the development of air traffic in Europe. Volumes and flight paths are affected, which in turn also affects our operations, says Ann Persson Grivas, Director General of LFV. How would you sum up 2022? – As a year that did not turn out quite as anyone in the industry had imagined, and which has brought with it a series of new challenges. Just when the pandemic seemed to be winding down, we were faced with new challenges, and we are doing so with determination and optimism for the future. LFV also celebrated its 75th anniversary last year and we can look back on an era of strong technological development that continues to accelerate to meet the needs of the future. Throughout our long history, we have been a stable provider, and we aim to remain so in everything we do. The international situation has changed during the year, what has this meant? – The entire aviation industry has been affected by Russia's invasion of Ukraine. Flight routes were re-routed when the possibilities to pass through Russian and Ukrainian airspace were restricted, meaning that air traffic now largely has to use other routes. For Sweden, this means a reduction of traffic in our airspace. What are the implications of the new security situation for LFV? – It emphasises and highlights our role in total defence. We have a special responsibility for contingency planning, and we work proactively to mitigate the consequences should anything happen. From an international perspective, Sweden is special in that civil and military air navigation services are integrated and coordinated by LFV in a single organisation, which is an advantage. As Sweden strengthens its defence capability in the event of war, our operations are also being prepared to ensure that the service is robust in all contingencies. Security efforts to protect LFV's information as well as our properties and sites have been strengthened and we have also conducted contingency exercises. LFV has received increased assignments in total defence and an expansion of the instruction with services for unmanned aviation In what way does the reduction in airspace traffic affect operations? – Approximately 65 percent of LFV's revenue comes from en route charges when operating in Swedish airspace. We have seen a shift towards flying with smaller and lighter aircraft. As the charging scheme is based on weight and the distance they fly in our airspace, our revenues are negatively affected. For us, the past year has largely been characterised by adapting to lower than expected volumes in commercial traffic, while at the same time accelerating our role in total defence and strengthening our capabilities in all emergency situations. This means that we need to adapt to changing conditions, which means that we need to accelerate and decelerate at the same time. At the time of writing, not everything is ready, but it seems that in the future we will also need to consider a NATO membership. Another major challenge is that we are required to review our own costs and make our operations more efficient. LFV AN N UAL REPORT 2022