LFV Annual report 2018 1
DIRE C T OR ’ S REPOR T L F V 2018 MAIN OBJECTIVE
FOR THE CURRENT YEAR’S OPERATIONAL PLAN PERSPECTIVES MAIN OBJECTIVES Customers and sales LFV shall sell products and services in selected focus markets LFV’s brand shall be viewed as attractive and interesting by customers, stakeholders and potential employees LFV shall supply attractive and profitable products and services Culture and employees LFV shall have leadership and employeeship that are characterised by customer focus and businesslike conduct founded on air safety LFV shall be an attractive employer where employees’ skills are developed according to the needs of the customers and stakeholders. Operations and delivery Finances LFV shall work proactively to continuously develop aviation safety work. LFV shall maintain targets from the EU performance plan regarding delays LFV shall work actively to reduce environmental impact LFV shall strengthen its competitiveness by improving working methods, processes and innovation capacity LFV shall plan for preparedness within the framework of civil defence (new main objective) LFV must reach its owner's financial targets COMMENTS ON THE FOUR MAIN OBJECTIVES OF THE PERSPECTIVES Customers and sales LFV did not achieve its revenue targets for the international market in 2018. In 2018 no measurement was made of customer satisfaction. This will instead be done in the beginning of 2019. Work connected with LFV’s brand and values is ongoing. Continuing to develop a broader customer focus and an organisation that is solution-oriented, committed and innovative is important for LFV’s continuing development for the future. Brand training is included in our e-learning programme, and is extended to all employees. Culture and employees LFV measures and monitors targets connected with things such as the leadership index, commitment index, team efficiency index and psychosocial work environment index. LFV continues to see a good level of commitment and a leadership that is progressing in a positive direction. Important activities during the year include the recruitment of air traffic control students, a continued focus on changes and preparation for commissioning the control centre for remote air traffic management (RTC Stockholm), and the work for strengthening LFV’s employer brand. LFV’s updated Code of Conduct has been produced, and the previous management development programme has progressed to the next phase. Operations and delivery Aviation safety one of the foundations of LFV’s operations. All of the targets relating to air safety were achieved. Important activities during the year include quicker handling times for deviations and more efficient and in-depth collaboration with Swedavia and the Swedish Armed Forces. The structure for operational manuals has also been simplified and improved. An increased shortage of air traffic controllers caused the introduction of traffic restrictions on several occasions over the summer. Despite this, delays remained at a low level and capacity targets were also achieved, with the exception of Terminal Arlanda, which failed to achieve the EU target primarily due to weather-related restrictions. LFV is working to continue creating the conditions for achieving its environmental goals by means of analyses, measurements and the development of key performance indicators. Various factors affected LFV’s ability to reach its targets over the year, and LFV has not achieved its target for reducing carbon dioxide emissions. There is a demand for our expertise in environmental permit processes for airports. During the year, LFV worked on developing the business management system, and activities have been carried out to strengthen competitiveness by improving working methods and developing processes and innovation capacity. Line management has commenced working on developing action plans for contingency planning. Finances LFV will gradually streamline and reduce costs in order to meet the demands of Eurocontrol and LFV’s customers as well as its owner's financial targets. Achieving cost-effectiveness targets according to the EU performance plan is monitored on an ongoing basis. The owner's targets for LFV is that the return on equity should amount to 4 percent over a business cycle and that long-term solidity should be at least 15 percent. LFV has struggled to achieve these targets, mainly due to the low interest rate level and the relatively high pension liability. The annual result before tax amounts to 5 million SEK, which is close to the budgeted 6 million SEK. 17