LFV Annual report 2018 1
L F V 2018 DIRE C T OR ’ S REPOR T PERFORMANCE MA
NAGEMENT FOR INCREASED EFFICIENCY Within the EU, air navigation service providers are extensively regulated. This includes, for example, certification requirements, requirements for technical harmonisation and the formation of functional airspace blocks across national borders. The EU Commission also establishes so-called performance plans with targets for aviation safety, capacity, environment and cost-effectiveness. The EU's longterm goal is to: • triple capacity in the airspace • maintain or improve aviation safety, regardless of traffic increases • halve the cost of air traffic management • reduce the environmental impact of each flight by 10 percent. Targets are then set for the different states and airspace blocks. For Sweden, the targets include en route and terminal services at Stockholm Arlanda Airport. For the first reference period (RP1 2012–2014) LFV reached all of its targets. For the current period (RP2 2015–2019), LFV has so far achieved the targets in 2015–2017. In 2018, LFV achieved the targets except for environment and capacity for Terminal Arlanda. The most challenging target is that the unit cost for operating in Swedish airspace should be reduced by 17 percent during RP2. COST REQUIREMENTS The system regulates the route charges and terminal harges at Stockholm Arlanda Airport. In addition to financing en route air navigation services that are carried out at the control centres and accompanying infrastructure, route charges also pay for a significant part of local air navigation services performed at airport control towers and approach control units. Altogether, these charges amount to approximately 80 percent of LFV’s turnover. Air navigation service providers account for the largest proportion of the route charge. During RP2 2015-2019, the fixed price unit cost should decrease by an average of 2.4 percent each year. LFV reaches the targets for both en route and Terminal Arlanda, excluding extra costs for pensions that are excluded from risk sharing, primarily due to the low interest rate level. A final reconciliation takes place no earlier than 2020. After having implemented a programme to save 200 million SEK during the 2015–2017 period, it has proved difficult to make any further significant savings. 2018 ROUTE CHARGES (euro/service unit) 79.98 20 40 60 80 0 69.54 67.07 67.105 63.48 59.61 59.02 54.79 45.47 43.59 42.55 27.69 27.47 24 Italy Spain Germany Great Britain France Denmark Sweden Finland Norway Lithuania Poland Ireland Latvia