LFV Annual report 2018 1
L F V 2018 DIRE C T OR ’ S REPOR T GREAT CHALLENG
ES AHEAD LFV’s financial position is expected to remain strained over the next few years. The development will be largely governed by the situation regarding costs and fees that will be established by the EU in its performance plan for the coming third reference period, which starts on 1 January 2020. LFV is also greatly affected by the interest rate and its impact on pension liabilities. The forecast for air traffic in the coming years is a continued growth in airspace movements by 1–2 percent per year. An upcoming economic slowdown may have a negative impact. Sweden and LFV are among the global leaders in digitalisation and the expansion of remote air traffic management. The challenge over the coming years will be to safeguard this position and to secure a good return on the investments that have been made. MEETING EFFICIENCY REQUIREMENTS One of LFV’s biggest challenges is to meet efficiency requirements in the charging system's third reference period. Challenging requirements for cost-effectiveness can also adversely affect our ability to meet other operational objectives, including our ability to main tain capacity. In dialogue with the Ministry of Enterprise and Innovation and the Swedish Transport Agency, which represent Sweden before the EU Commission, LFV is actively trying to influence the structure of the objectives so that LFV’s individual circumstances are taken into account. MANY RETIREMENTS LFV faces a large number of retirements, which will put demands on the skills supply for a long time to come. In 2018, LFV began to expand basic training of operational air traffic controllers, which is a challenge both economically and operationally. INCREASED FOCUS ON SECURITY Changing conditions and new threats in recent years have led to an increased focus being placed on issues related to civil defence, security and information security. We anticipate that security-related issues will become even more important in the future. MOVEMENTS IN SWEDEN’S AIRSPACE, 2018–2024 2024 859,000 2023 847,000 2022 835,000 2021 2020 2019 2018 785,000 797,000 810,000 822,000 Source: STATFOR forecast from October 2018 42