LFV Annual report 2018 1
L F V 2018 INVE S TMENT PLAN INVESTMENTS Outcome
2016 Acquisition and development of new investments ATM equipment Radar equipment Communications equipment Radio equipment Buildings IT Commercial investments Other Sum of costs for 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 *Excluding acquisition of shares in associated companies 25 MSEK. LFV invests in new technological solutions as well as regular upgrades of both technological systems and working methods. Investments are regularly made in initial purchases as well as maintenance and replacements in order to maintain air safety, ensure capacity and regularity, and to streamline operations. The priorities are largely governed by the requirements for system development set by the EU, together with the need to progressively develop and renew the infrastructure, increase robustness at control centres and the technological infrastructure for air navigation services. An increased interest in digitalisation and remote air traffic management has also led to investments in order to meet the demands of customers and the market. During the year, major investments were made primarily in Remote Tower Services (RTS), ATM, radar and communications equipment. The investments are partly due to the fact that LFV is going through a period 64 of systems turnover and so as to meet new regulatory requirements for the infrastructure, and also due to the need for increasing robustness and capacity to meet the growing volumes of air traffic in Swedish airspace and ensure continuity of operation. The investments in radar equipment are part of efforts of LFV to modernise radar stations so as to meet increased demands for airspace monitoring. Over time, the number of unidentified aircrafts over international waters in the southern parts of Swedish airspace have risen. The investments are also a result of the need to invest in new technology driven by regulations. There are also other needs and requirements for investing in radar communication so as to maintain a high level of aviation safety and capacity. For several years, LFV has been investing in developing infrastructure for remote air traffic management, called Remote Tower Services (RTS) The control centre (Remote Tower Centre – RTC) in Sundsvall was expanded in 2016/17 for increased capacity. RTS 46 1 1 – 16 6 17 – 88* 88* 88 88 12 5 15 6 1 0 9 – 49 49 49 49 Outcome 2017 62 21 35 – 3 3 29 – 153 153 153 153 5 28 30 10 1 – – – 73 73 73 73 Plan 2018 152 – – – – 10 72 – 234 234 234 234 – 21 8 8 – – 11 – 48 48 48 48 Outcome 2018 112 38 12 2 101 0 – – 264 264 264 264 7 27 22 3 – 1 – – 59 59 59 59 has continued to be developed so that, for example, one controller will be able to manage several airports simultaneously (so-called Multiple Remote Tower). Construction of a new control centre for remote air traffic management, RTC Stockholm, has been under way during 2018, and will be completed in 2019. Investments are also being made in technical solutions for RTS and operations from RTC Stockholm, including technical equipment for RTS at four of Swedavia’s airports. The investments in communications and radio equipment have also been prioritised. During the year, LFV made large investments in radio, transmissions and telecommunications systems to replace ageing systems and to maintain safety, capacity and accessibility. New regulatory requirements have also resulted in greater investments in communications and radio. LFV believes that investments in networks, communications and radio will continue at a similar rate as in 2018, but with even greater focus on robustness and physical and logical IT security. LFV regularly prioritises and adjusts its investment plan in relation to changing conditions and operational needs. Investments have been partly restructured compared with the investment plan in the appropriation directions for 2018 in order to meet the needs that LFV sees are driven by technological development, demands for increased robustness and other external factors. The distribution between new investments and maintaining existing ones is at a level that corresponds to the 2018 plan. Overall, needs for investment have continuously increased over the past two years, especially as regards ATM, radar and communications equipment. Compared to the plans, it is mainly radar and communications equipment that has increased and commercial investments that have decreased. In the plan for 2018, investments in RTS and RTC Stockholm were included as part of the ATM equipment and commercial investments respectively, which, in the report for 2018, were more carefully distributed and classified as new investments in buildings and ATM equipment. Due to greater investments in infrastructure as a result of new regulations, increased requirements for capacity, greater societal demands, and continued investments in remote air traffic management, investments are expected to increase over the next few years. Some investments may be restructured within the framework.