Årsredovisning 2003
Årsredovisning 60179 Norrköping. Telefon 011-19 20 00. Fax 011-19 25 75. Organisationsnummer 202100 – 0795. [email protected] www.lfv.se 2003
The tighter civil aviation security rules Swedish CAA provided by a new European Union regulation have been fully imple- Annual Report 2003 mented since July 19, 2003. Important events in 2003 – 2. The year in brief – 2. The Swedish CAA has introduced Comments of the Director General – 4. 100 per cent screening of departing passengers and all baggage. The Swedish CAA Transfer passengers and their bag- This is the Swedish CAA – 8. gage must now also be screened, Objectives and strategies – 10. and arriving passengers must be separated from departing ones International unless they came from an airport civil aviation that meets the standards of the The CAA and international civil aviation – 16. regulation. The airports Fewer passengers but more capacity – 20. Air Navigation Services Air Navigation Services (ANS) – 28. Regulatory functions Safety – standard-setting and oversight – 32. Sectoral role – 36. Human resources Strategic focus – 40. Accounts Group finances – 46. Income statements – 53. Balance sheets – 54. Statements of source and application of funds – 56. Accounting principles – 57. Notes – 60. Dividend – 65. Other information Auditors’ Report – 67. Board of Directors and Auditors – 68. Management Team – 70. Addresses – 72.
Swedish CAA 2003 – Contents 1 Important events in 2003
Air traffic continued to decline in 2003 The new air traffic management system Of its earnings improvement target of for the third straight year. The number is expected to go into service during SEK 1 billion by 2006, the Swedish of passengers in scheduled and charter 2004. CAA achieved planned improvements of traffic at Swedish CAA airports declined SEK 450 M by the end of 2003. Profit by 7 per cent to 27 million, and the Changes in the civil aviation industry after financial items was SEK -48 M in number of landings by 5 per cent to continued, with a shrinking market, 2003, compared to SEK 151 M in 2002. 222,000. higher aviation security costs due to new The equity/assets ratio was 18 per cent. regulatory requirements and stiffening Capital spending declined sharply competition for traditional airlines. A division of the Swedish CAA into a during the year – by SEK 723 M to Low-cost carriers increased their share of provider portion, consisting of the SEK 1,358 M. The largest investments passengers. Airports and Air Navigation Services, occurred at Stockholm-Arlanda Airport. The Swedish CAA began a structural and a regulatory portion, consisting of Investments in the New Arlanda and at review to examine whether today’s the Aviation Safety Department and the the other CAA airports in recent years government-owned airport system is Aviation and Public Sector Department, are regarded as capable of meeting optimal from both micro- and macro- was approved by the Swedish Parliament Sweden’s needs for the next 15 years. economic standpoints. (Riksdag) on December 4, 2003.
The year in brief
2003 2002
Passengers, millions 26 28.1 Operating revenues, SEK M 5,402 5,384 Operating expenses, SEK M 5,113 4,884 Profit before income tax and tax equivalent, SEK M –48 151 Profit for the year, SEK M –37 105 Return on equity after income tax and tax equivalent, SEK M –1% 4% Return on capital employed 2% 4% Return on total assets 2% 3% Investments, SEK M 1,358 2,081 Equity/assets ratio 18% 19% Full-time equivalent employees 3,810 3,789
2Important events – Swedish CAA 2003 The number of passengers in scheduled and charter traffic at the Swedish CAA’s airports decreased by 7 per cent to 26 million, and the number of landings by 5 per cent to 220,000.
Swedish CAA 2003 – Important events 3 Comments of the Director General – Continued difficulties for civil aviation
For the third straight year, there was a downturn in civil aviation traffic. In 2003, the number of passengers at Swedish CAA airports declined by 7 per cent. Since the peak year of 2000, the number of passengers has fallen by more than 4 million or about 15 per cent. This is the largest downturn in modern times. Changed conditions, including deregulation, a shrinking market and higher costs for civil aviation security, have hit the air travel industry hard.
Low-cost carriers are increasing their share of passenger num- Sharp decline in capital spending bers, and competition is heating up. Traditional airlines have During the year, the capital spending of the Swedish CAA implemented far-reaching programmes to lower their costs, totalled SEK 1,358 M. This was a decline compared to the so that they too can respond with lower ticket prices. year before and means that investment volume has more than halved since 2001. Cutbacks in capital spending are an The Swedish CAA’s finances important step towards lower costs, both in the short and The crisis in the civil aviation industry is also a crisis for the long term. Over the past five years, the CAA has invested CAA. In the space of two years, the decline in traffic volume about SEK 11 billion, which lowered its equity/assets ratio to has been equivalent to a revenue loss of half a billion kronor. 18 per cent. The Government’s equity/assets ratio requirement The costs of new capacity that has gone into service at is 20 per cent during 2003 and 2004, but the long-term target Arlanda, including a third runway and terminal extensions of a 25 per cent ratio remains in place. The Government’s and modifications, have increased capital costs alone by over financial target is not being met. SEK 400 M. Profit for the year was SEK -48 M. This is substantially worse than our profit in 2002, which was SEK Review of airport structure 151 M, but it still means that the consequences of the traffic Obviously the continued weak economy adversely affects decline plus capital costs were offset by efficiency-raising domestic air services, but the difference between developments measures. We are continuing to successfully pursue our action at various airports shows that there are other reasons that are programme aimed at achieving an improvement in earnings more significant. Airports with competition between airlines of SEK 1 billion by 2006. By the end of 2003, planned like Visby, Ängelholm, Umeå and Bromma perform better. improvements of SEK 450 M had been achieved. Bromma in particular is continuing to grow rapidly and
4 Comments of the Director General – Swedish CAA 2003 We are continuing to successfully pursue our action programme aimed
at achieving an improvement in earnings of SEK 1 billion by 2006.
By the end of 2003, planned improvements of SEK 450 M had been achieved.
became the fourth largest airport in Sweden. Above all, air- division on January 1, 2005. It is important that the funding ports less than 500 km from Stockholm are losing traffic. solution chosen for the new government authority does not The Swedish State’s investments in new highways and rail- mean that costs will be allowed to rise, either in the short or ways are improving the relative competitiveness of trains and long term. cars. A review of our airport structure is natural in this perspective. This task began in the summer of 2003 and is A century of civil aviation expected to lead to a proposal during the autumn of 2004. The 100th anniversary of the engine-driven aircraft was not an ostentatious affair. The industry is suffering too much for Higher traffic volume will generate profitability that. But let us not forget that in spite of this, the number of The CAA would like to stimulate volume growth. It intends times that people fly each year in Sweden is many times the to create stable prerequisites for this by keeping its regulated population of the country. traffic charges unchanged over the next few years, given a Air travel makes globalisation possible and brings the world certain increase in volume. Higher traffic volume will generate closer. Air travel has enabled ordinary people to experience profitability for both us and the airlines. In 2004, total civil exotic destinations like the jungles of Borneo, the Maldives aviation charges will be more expensive for the airlines, since or a weekend in London or New York. For the business com- charges for aviation security, air traffic management munity, air travel has helped to open new markets. (Eurocontrol) and Aviation Safety Department services will The air traffic trend remains difficult to estimate, but in be increased. The CAA’s ambition is to continue to resist 2004 we believe there will be a cautious upturn. In closing, I higher Eurocontrol costs and to lower the costs of aviation would like to express my gratitude to all our employees, who security. have worked with dedication to ensure that the civil aviation industry will stand well equipped for the future. Division of the CAA The Riksdag has decided that a division of the CAA will be implemented. This is extremely positive. In this way, the State enterprise will gain better potential to develop its com- mercial operations and the CAA’s regulatory operations, consisting of the Aviation Safety Department and the Aviation Lars Rekke and Public Sector Department, will gain in credibility as a Director General, Swedish CAA result of the division. Our aim is to be able to implement the
Swedish CAA 2003 – Comments of the Director General 5
The Swedish Civil Aviation Administration This is the Swedish CAA – 8. Objectives and strategies – 10. This is the Swedish CAA
The Swedish CAA (in Swedish: Luftfartsverket, LFV) operates 19 airports and is responsible for air navigation services in Sweden. In its sectoral role, the CAA also exercises government authority and performs air traffic policy tasks for the civil aviation sector. The State enterprise and its subsidiaries reported sales of SEK 5.4 billion during 2003 and had 4,511 employees at year-end.
Tasks Operations Multi-year overview The Swedish CAA is a State enterprise The CAA fulfils its tasks by assuming The financial situation of the Swedish entrusted with the following eight main three roles: CAA is strained, after the CAA completed tasks: • The provider role, that is, its largest investments in history at the • To promote the development of operating and improving same time as air traffic sharply declined. civil aviation State-owned airports and air The CAA is implementing an action pro- • To operate and improve State- navigation services in Sweden gramme to improve its finances by SEK 1 owned civil aviation airports • The safety role, which involves billion no later than 2006. • To issue regulations for and standard setting and oversight The air travel industry is in a deep oversee the safety of civil through its Aviation Safety downturn. The events of September 11, aviation Department 2001, together with a deep and pro- • To be responsible for protection • The sectoral role, which means longed economic slowdown, caused of the environment against exercising government authority passenger volume at the CAA’s airports pollution from civil aviation and performing air traffic policy to decline by nearly 15 per cent over a • To be responsible for peacetime tasks for the civil aviation sector three-year period, which was equivalent air navigation services for civil as a whole. to an annual decline in profits of about and military aviation SEK 575 M. • To administer civil defence and Structure of the Group At the same time, the CAA imple- emergency planning that The Swedish CAA Group consists of mented the largest capital spending involves the civil aviation sector the State enterprise and its subsidiaries programme in its history by investing • To take steps to ensure that the and associated companies. Directly in the third runway at Arlanda and needs of functionally impaired under the State enterprise is the CAA’s related terminal systems as well as a people are taken into account in 50 per cent holding in A-Banan Projekt new air traffic management system to civil aviation and AB, which contracted A-Train to build, meet the air traffic demand that was • to be responsible for coordinat- operate and finance the high-speed rail foreseen in the mid- and late 1990s. ing civil aviation safety work. service between the city of Stockholm Altogether, this represents earnings and Stockholm-Arlanda Airport. The reductions of about SEK 1,000 M, other half of the shares are owned by the which largely corresponds to the action Swedish Rail Administration (Banverket). programme. To date, the action pro-
Swedish CAA Group organisation, January 1, 2003
Board of Directors
Group Internal Auditing Director General Group staff units, Communications, Legal Secretariat
SECTORAL ROLE SAFETY ROLE (Standard setting and oversight)
Aviation and Public Sector Department Aviation Safety Department
PROVIDER ROLE
Stockholm Group Air Navigation LFV Internal A-banan Division Airports Division Services (ANS) Holding AB service units Projekt AB Division
8 This is the Swedish CAA – Swedish CAA 2003 gramme has led to earnings improve- Expenses Ten-year review ments of about SEK 450 M on an Operating expenses rose from SEK The charts below illustrate the trend of annual basis. 4,549 M in 1999 to SEK 5,113 M in passenger numbers, capital spending, After the terrorist actions of 2003. This represented an increase of revenues, profit after financial items, September 11, 2001, civil aviation secu- SEK 564 M, equivalent to an annual equity/assets ratio and return on total rity requirements increased dramatically. increase of 3 per cent. Depreciation rose assets during the ten-year period 1994- As a result, the Swedish CAA’s overall by SEK 443 M due to large capital 2003. expenses for aviation security rose by spending, and civil aviation security The change in profit, equity/assets about SEK 300 M during the period. expenses rose by about SEK 300 M. ratio and return between 1998 and These increases in expenses are financed During the period, financial expenses 1999 was due to the district court’s through strictly cost-based fees, which rose by about SEK 160 M. ruling in a dispute with SAS plus the result in corresponding revenue increases. investment in A-Banan Projekt AB. This picture characterises the CAA’s Earnings The changes between 2000 and objectives and strategies for the future. Since 1999, profit after financial items 2003 were due to decreased traffic and has varied between SEK -48 M and major capital spending. Since 2000, the Revenues SEK 633 M. number of passengers has declined by From 1999 until 2003, the CAA’s reve- During the period, return on equity about 15 per cent, while major invest- nues increased from SEK 4,719 M to after income tax and tax equivalent aver- ments were completed and extensive SEK 5,402 M, or by an average of 3.4 aged 4 per cent annually, compared to steps were taken to improve airport per cent annually. The favourable trend the CAA’s long-term target of 8 per security. until 2001 was mainly due to good cent. The equity/assets ratio weakened growth in passenger traffic to and from from 22 per cent in 1999 to 18 per cent Swedish airports. Changes in the civil in 2003. The long-term target is 25 per aviation industry such as the increased cent. share of low-cost carriers, the problems of established airlines, an economic Capital spending slowdown, the SARS epidemic and the From 1999 to 2003, the CAA invested Iraq war, which led to a decline in pas- a total of SEK 11,078 M in new facili- senger numbers, have adversely affected ties and another SEK 1,144 M in the Passenger numbers 1994 – 2003 revenues in recent years. However, this Arlanda Link. The level of capital spend- has been offset by the expansion of ing declined during 2002 and 2003. SEK M commercial operations, among other Most investments were related to the 35,000,000 things. expansion and modernisation of 30,000,000 Stockholm-Arlanda Airport as well as a 25,000,000
new air traffic management system. 20,000,000
15,000,000
10,000,000
5,000,000
0 94 95 96 97 98 99 00 01 02 03
Domestic routes International routes Total
Earnings and equity/assets ratio Earnings and return on assets Revenues and capital spending
SEK M % SEK M % SEK M 700 35 700 35 6,000
600 30 600 30 5,000 500 25 500 25 4,000 400 20 400 20
300 15 300 15 3,000
200 10 200 10 2,000 100 5 100 5 1,000 0 0 0 0
-100 -5 -100 -5 0 94 95 96 97 98 99 00 01 02 03 94 95 96 97 98 99 00 01 02 03 94 95 96 97 98 99 00 01 02 03
Profit after financial items Profit after financial items Capital spending Eguity/assets ratio Return on total assets Of which, Arlanda Link Revenues
Swedish CAA 2003 – This is the Swedish CAA 9 Objectives and strategies
In accordance with the Government’s objectives for the CAA, it shall operate in the transport policy and civil aviation fields. Its operations are divided into provider, safety and sectoral roles.
Transport policy objectives and autumn of 2003 the CAA introduced • A traffic structure like today’s, but their fulfilment an air travel handbook. The ambition with a limited number of flights to According to the Government’s 2003 is that this handbook should be the decrease costs. letter of supply, the CAA shall contrib- natural starting point of a trip for • A traffic structure with one or ute to the fulfilment of transport poli- people with various kinds of functional more commercial hub airports with cy objectives in a businesslike way and impairments. feeder flights/ground transport to within the framework of a macroeco- and from many localities in north- nomically efficient and sustainable • Positive regional development: ern Norrland. transport supply. The air transport system shall promote • A mixture of today’s traffic structure The overall objective of Sweden’s positive regional development by and a solution using hubs accord- transport policy according to the 1998 narrowing the gaps in development ing to the above point. decision of the Government and Parlia- opportunities in various parts of the ment is to ensure a macroeconomically country and by offsetting the disadvan- Long-term investment plans efficient and sustainable transport sup- tages of long transport distances. During the period 2004-2015, grants ply for individuals and the business for airport capital spending totalling community throughout the country. State-procured of air traffic services SEK 101.3 M are reserved in Sweden’s Within this framework, the decision For regional development policy reasons, county transport plans. These invest- also specifies six subsidiary objectives: the National Public Transport Agency ments will help safeguard a national air (Rikstrafiken) procures air traffic services transport system. • An accessible transport system: on 11 routes, mainly between the inte- The air transport system shall be de- rior of Norrland (northern Sweden) Investment grants disbursed signed in such a way that the funda- and Stockholm-Arlanda. during 2003 mental travel and transport needs of On September 11, 2003, the Grants can be provided for capital individuals and the business community Government decided not to complete spending at non-State-owned airports can be satisfied. the procurement for the period March if the investment meets a public trans- 2004 – October 2006 due to lack of port need. The effects of such invest- Duration of stay funds. The Government also wishes to ments at airports are also evaluated in In its sectoral reports on civil aviation, wait for a study by the National Public light of the subsidiary objectives of the Swedish CAA reports on accessibil- Transport Agency about more efficient high transport quality, accessibility and ity and availability and their changes procurement of air traffic services. The safe air traffic services. During 2003, over time for Swedish airport regions. Government thus authorised the investment grants totalling SEK 9.2 M On the basis of timetable information, Agency to carry out procurement of air were disbursed. for each airport the CAA calculates the traffic services for a period of one year length of the period it is possible to beginning March 28, 2004 on the Operating grants to non-State-owned stay in the destination city (accessibility), following routes: between Stockholm- airports or vice versa for someone who wishes Arlanda and Lycksele, Vilhelmina, In consultation with the Swedish to visit a Swedish airport (availability) Arvidsjaur, Gällivare and Hemavan. Association of Local Authorities, the in case of a same-day return visit. The CAA will submit proposals to the study includes both domestic and A more efficient air traffic system Government on the allocation of oper- European air services. in Norrland ating grants to non-State-owned air- In 2003, both availability and On January 10, 2002, the Government ports. On April 30, 2003, the accessibility deteriorated. This was true decided to commission the National Government approved the allocation of both domestic and European traffic, Public Transport Agency to study the of SEK 105.6 M in operating grants, which was mainly due to fewer depar- potential for creating a more efficient of which SEK 10.7 M is being financed tures and changes in timetables. air traffic system preparatory to future via the CAA’s own funds. Of this, SEK However, there were major variations procurements. The Government 1 M is being set aside for development between different airports. believes that non-stop routes between and efficiency-raising work at municipal Stockholm and each of the affected airports. People with special needs regional airports is not necessarily the The functionally impaired have gener- most efficient solution. Evaluation of operating grants ally good accessibility to the air trans- On November 4, 2003, the The transport policy adopted in 1998 port system. Only 8 per cent of the National Public Transport Agency by the Swedish Parliament (Riksdag) functionally impaired maintain that published a preliminary study that stated that a thorough evaluation of they cannot use this system for travel. contained three theoretical solutions State operating grants would occur To improve information to the for achieving more efficient air traffic after five years. The CAA and the functionally impaired, during the supply in Norrland. Association of Local Authorities sub-
10 Objectives and strategies – Swedish CAA 2003 The overall objective of Sweden’s transport policy according to the
1998 decision of the Government and Parliament is to ensure a macroeconomically efficient and sustainable transport supply for individuals and the business community throughout the country.
Swedish CAA 2003 – Objectives and strategies 11 mitted such an evaluation to the traffic and related operations decreased. port policy objectives and to develop Government on April 4, 2003. See also the section on Airports, page the air transport system. In its budget bill for 2004, the 20. Government stated that a general review The objective of the first of two Financial targets and their of grants to airports will be imple- phases in the action programme to fulfilment mented. This review will examine both combat disturbances due to air traffic The CAA shall contribute to the fulfil- existing grants to the civil aviation sector noise in existing buildings was to ment of transport policy objectives in a and State grants to other modes of achieve the following benchmarks in businesslike way and within the frame- transport, for the purpose of achieving the foreseeable future: work of a macroeconomically efficient sustainable long-term prerequisites for and sustainable transport supply. State grants to the transport system. • 30 dBA equivalent level indoors, The CAA’s financial targets for the Until a new grant system has been im- • 45 dBA maximum level indoors at period 2003-2005 are as follows: plemented, the current grant system and night, including at least properties its financial limits will remain in place. that are exposed to noise at the • The long-term target is that return following levels and higher on equity after tax equivalent shall • High transport quality: (outdoors): amount to 8 per cent. The outcome The design and function of the air • 60 dBA aircraft noise level for 2003 was -1 per cent. transport system shall allow high trans- • 80 dBA maximum, when the area • The target for equity/assets ratio is port quality for the business community is regularly exposed to this noise that in 2003 and 2004, this ratio and individual travellers. level an average of at least three should be 20 per cent and thereafter times per night. at least 25 per cent. The outcome Delay studies me for 2003 was 18 per cent. The number of delayed flights, the In December 2003 this task was com- • As a restriction, average price in- number of delayed passengers and the pleted at eight of the State-owned air- creases for CAA traffic charges, length of delays declined during 2003. ports. Four airports are not affected by excluding air navigation services en This was largely due to smaller traffic the first phase of the action programme. route, aviation security charges and volume. The CAA is working with At the remaining four airports, the noise-related charges, may increase punctuality-enhancement measures at CAA has awaited decisions on further by no more than the Net Price airports and in the air traffic manage- noise insulation requirements from the Index, with 1993 as the base year. ment system to achieve further im- Environmental Court before insulation During 2003, the CAA remained provements. activities begin. A total of about 300 below the price ceiling. See also the properties have been noise insulated at section on Prices, page 48. • A safe civil aviation system: a cost of SEK 43,700,000 (excluding The long-term objective must be that value-added tax). The CAA’s long-term planning occurs in no one is killed or seriously injured rolling four-year cycles. During the cur- due to civil aviation accidents. The • A transport system with equal rent planning period, 2004-2007, the design and function of the air transport opportunities: CAA believes that it can achieve its prof- system shall be adapted to the require- The air transport system must be itability target only in 2006. It does not ments resulting from this. designed in a way that meets the trans- expect to achieve its equity/assets target port needs of both women and men. during the period. This is due to the Aviation safety Women and men must have the same large capital spending programme that From a safety standpoint, 2003 was a opportunities to influence the creation, the CAA has been carrying out since the good year for Swedish scheduled and design and management of the air late 1990s and that will continue over charter air services, since only one transport system, and their values must the next few years, albeit on a limited crash occurred, with no serious personal be accorded equal weight. scale. injuries. In order to achieve the national The management teams on State aviation safety objective by 2007, the transport authorities are dominated by CAA Group objectives number of crashes must remain at a men, as are the management teams of The CAA has formulated six Group low level. In private aviation, the num- related industry organisations and spe- objectives for the coming planning ber of crashes since 1998 has not yet cial interest organisations. On the period to be achieved by 2006. These decreased to the extent required in whole, women’s perspectives are poorly CAA Group objectives focus strongly order to achieve this objective. represented in planning, decision- on creating financial stability based on However, 2003 was the best year in making and management of today’s air existing air traffic volume, despite an three decades for private aviation, with transport system. uncertain future. The CAA Group no crashes resulting in fatalities. The CAA carried out an analysis of objectives for the coming planning how women and men utilise the air period until 2006 are: • A good environment: transport system, based on travel pat- The design and function of the air terns, travel times, modes of transport • The CAA will achieve the targeted transport system shall be adapted to and travel expenses. return on equity (8 per cent) demands for a good living environ- established by its owner, the State ment for everyone, where nature and Other reports: • The Nordic Upper Area Control the environment are protected from The CAA’s sectoral report on civil avia- Centre (NUAC) project and a damage. Effective management of tion for 2003 and in the Aviation Nordic air traffic controller acadmy land, water, energy and other natural Safety Department’s 2003 annual will be established in Malmö, resources shall be promoted. report provide a more detailed account thereby lowering civil aviation During 2003, emissions from air of the CAA’s efforts to achieve trans- market costs
12 Objectives and strategies – Swedish CAA 2003 • The environmental conditions ners in property development and com- enterprise. The CAA supports this governing Arlanda’s operating per- mercial services in attracting expertise change. mit will be formulated in such a way and risk capital in order to boost profit- Considering the situation of the as to allow the airport to expand ability. civil aviation industry, it is of significance • The operations of the CAA in its As part of the NUAC project, that the division of the CAA be cost- role as a government authority will whose purpose is to create a common neutral from a customer perspective. It be divided from its business opera- Nordic airspace, the CAA is working is also important to the CAA that the tions, after a successful separation intensively with the Danish air traffic State enterprise be given a strategy that process has been implemented management system in particular. The will mean an increased focus in the • The meaning of the CAA’s transport CAA’s ambition is to persuade all CAA’s provider operations on business- policy tasks will have been clearly Nordic countries to become co-owners like activities. In addition, both authori- defined and communicated to all of NUAC and thereby create a common ties should receive more precisely defined employees control centre for all upper airspace in objectives in their governance, so that • The employees of the CAA will be the Nordic countries. Such co-ordina- the new State bodies in the civil aviation familiar with and share the Group’s tion would achieve major efficiency industry have clear roles both in relation common values. gains for airlines. to each other and in relation to other The exhaust ceiling, one of the industry players. Given the uncertain market outlook, environmental conditions prescribed for the action programme aimed at improv- Stockholm-Arlanda Airport, means that Environmental management ing the earnings of the Swedish CAA by emissions of carbon dioxide and nitro- systems SEK 1 billion, with full effect in 2006, gen oxides after 2011 may not exceed The strategically important task of is the cornerstone of the CAA’s strategy 1990 levels. Given today’s air traffic introducing an environmental manage- for achieving its financial targets. forecast, this ceiling will be reached by ment system (EMS) at the Swedish Considering the large investments in about 2013, equivalent to civil aviation CAA made further progress during capacity that have been made in the air- operations of nearly 300,000 aircraft 2003. port system and the air traffic manage- movements. The ceiling implies that it An EMS means that environmental ment system, it should be possible to will not be possible to take full advantage work is integrated in a structured way handle any traffic increase ahead within of the third runway’s capacity. into all work at the CAA as an impor- the framework of the existing infra- The CAA is working actively to try tant precondition for lasting, sustainable structure. to bring about a change in this condi- development. Long-term price stability is an tion, so that the airport can continue to Under an overall umbrella of com- important precondition to enable the expand in the long term. It is unthink- mon supportive and governing docu- civil aviation industry to recover with able that Arlanda, Sweden’s only impor- ments, the CAA’s units shall each confidence, and for the market to expe- tant international airport, should not be establish and work on the basis of their rience the volume increase that is neces- allowed to meet future demand. own EMS’s. This will ensure the precon- sary to create a stable overall financial The Swedish Parliament has decided ditions for continuous improvements in situation among companies working in to assign to the Government the task of environmental work both at these units the industry. One CAA strategy to sup- implementing a division of the CAA and at the Group level. port an increase in air traffic volume is into two central government authorities, There were functioning EMS’s at 17 to seek to maintain traffic charges one of them a new civil aviation author- out of a total of 26 units at year-end. unchanged over a long period and even- ity in which the CAA’s regulatory func- The service unit LFV Engineering (LFV tually lower them. tions, i.e. the Aviation Safety Teknik) certified its environmental The CAA needs to boost its revenues Department and the sectoral work of work according to the ISO 14001 inter- from airport commercial operations in the Aviation and Public Sector national standard. Umeå, Landvetter order to meet its financial targets. One Department, are gathered. The remain- and Karlstad Airports were previously of the foremost strategies for achieving ing provider operations will continue certified according to ISO 14001. the desired earnings is to join with part- within the framework of the State
Swedish CAA 2003 – Objectives and strategies 13
International civil aviation The CAA and international civil aviation – 16. Overflights – 17. Developments in the EU civil aviation market and external relations – 17. European Aviation Safety Authority (EASA) – 17. Economic developments – 17. Passenger forecast – 17. The Swedish CAA and international civil aviation
The civil aviation industry is undergoing extensive restructuring. This is due to the economic slowdown, the strong market re-allocation among the traditional airlines and the emergence of low-cost carriers.
Competition for both private and busi- • Another significant element of the Europe is on its way towards changing, ness travellers has intensified, which downturn in the Swedish civil avia- so that within a few years low-cost car- has created major profitability problems tion market is directly connected riers will account for a substantial per- among traditional airlines. This has led to the situation of Scandinavian centage of air services in Europe. A to major cutbacks in air service, espe- Airlines, SAS (by far the largest market share of 30 per cent or some- cially in domestic traffic at the CAA’s Swedish aviation market player) what higher is within reach. airports. and the cutbacks the airline has Sweden has a number of low-cost The downturn in the Swedish civil been forced to implement in order carriers, but most of them have been aviation market is larger than in other to restore profitability. in business for too short a period to European markets. This is largely allow an assessment of their long-term explained by the following factors: Alliances in the airline world impact. However, their market share The global airline alliances oneworld, increased dramatically in 2003. The • When volume peaked at year-end Star and Skyteam continue to be the market share of low-cost carriers in 2000, international scheduled air strongest constellations. Despite the international traffic rose by 7 per cent traffic in Sweden had experienced events that have occurred and have during 2003 compared to 2002, and eight uninterrupted years of growth, sharply affected the civil aviation mar- they now account for about 16 per with higher volume increases than ket in recent years, the largest alliances cent of international traffic. other countries in Europe. have remained intact. One important Low-cost carriers increase competi- Countries like Norway, Denmark, explanation is the need to preserve tion in the markets where they are Finland, the United Kingdom, route networks and aircraft capacity in active, due to their strong focus on low France, Germany and Austria all order to generate profitability at each air ticket prices. The consequence has had percentage volume increases airline in a declining civil aviation been an expectation by all passengers lower than Sweden during the market. that they can fly at very low fares, and second half of the 1990s. In the Swedish market, the Star this generates a questioning approach • The downturn is largely a cyclical alliance is dominant, followed by one- to the level of fares in the entire mar- phenomenon and an effect of cut- world. The explanation is SAS’ strong ket. When the profitability of airlines backs in travel budgets by the busi- market dominance. Today Star has declines due to the new competition, ness community and the public about 60 per cent of the Swedish market. this automatically increases the pressure sector. The Swedish business com- on other industry players, including munity’s travel behaviour has Low-cost carriers airports, to improve their efficiency changed, and the message is “travel Low-cost air travel is gaining sizeable and lower their prices. cheaply, and avoid flying if possible market share in Europe and the United when travelling domestically.” States. The civil aviation market in
The three major global, airline alliances, 2004 Millions of, Market share in Alliance Airlines passengers, 2002 passenger kilometres
Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian Airlines, bmi, LOT, Lufthansa, Mexicana, SAS, Singapore Airlines, Spanair, TAM, Thai, United, US Airways, Varig 315 23.8%
Aer Lingus, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, Lanchile, Swiss, Qantas 227 16.8%
Air France, Continental, Delta, Aeromexico, Alitalia, CSA Czech Airlines, KLM, Korean Air, Northwest 340 21.2%
16 International civil aviation – Swedish CAA 2003 Overflights lines to utilise civil aviation rights comparatively slow this time. The Due to ongoing measures to improve involving a third country. Future latest signals are positive concerning capacity, combined with declining traffic developments will depend largely on demand both in the United States and volume, delays in European air traffic the reactions of bilateral partners to Sweden, while they are more uncertain were reduced or ceased entirely in cer- the above changes in business condi- for the rest of the EU, although there tain airspace segments and at certain tions. have been positive signals from the airports during the spring of 2002. When ten candidate countries join largest EU economy, Germany. This trend continued during 2003. the EU on May 1, 2004, this will great- In addition, the Asian economies out- Compared to 2001, traffic volume in ly enlarge the Union. In itself, this is side Japan seem to have continued Europe fell by 7 per cent. During the expected to stimulate new air traffic, as their strong growth, as have the econo- winter of 2002/2003, volume bottomed all these countries become accessible to mies of Central and Eastern Europe out. Since March 2003 there has been EU-based airlines without restrictions. including Russia. a cautious recovery in aircraft move- ments and passenger figures, month by The European Aviation Safety Passenger forecast month. During September 2003, air- Authority (EASA) In light of economic forecasts, the craft movements reached their highest- EASA formally began operations on Swedish CAA expects passenger volume ever daily number in Europe. September 28, 2003. Since EASA does to rise slowly, beginning in 2004. The not currently have the resources to driving forces behind this upturn are Developments in the EU civil avia- carry out all operations, national avia- that: tion market and external relations tion safety authorities have been The regulation of international civil contracted to perform tasks for EASA • Improvements in the Swedish aviation is now undergoing major during a transition period. EASA can- economy will generate a cautious changes as a result of the November 5, not currently delegate the right to increase in business travel, 2002 ruling of the European Court of make decisions on approvals etc. The • Volume-boosting price incentives Justice in the “open skies” cases involv- Swedish CAA is thus performing from the airlines will cause increases ing bilateral civil aviation agreements technical examination of incoming in passenger numbers, both for between the United States and a num- applications and then sending these to private and business travel, ber of European Union countries. The EASA for formal approval. • New low-cost carriers will stimulate Court’s judgement will have conse- market expansion. quences for civil aviation relations with Economic developments in the third countries. All EU airlines licensed next few years The CAA believes that the volume in- in another member country and with a Swedish forecasting institutions predict crease will average about 2 per cent stable/long-term presence in Sweden an economic upturn. There is also a annually in the next few years. may be considered when choosing air- consensus that the recovery will be
International civil aviation – Swedish CAA 2003 17
The airports Fewer passengers but more capacity – 20. International traffic – 20. Domestic traffic – 20. Cargo – 22. Commercial revenues – 22. Civil aviation security – 22. Operations and expansion – 22. The environment – 23. Financial results in the airport system – 23. Airport statistics – 24. Environmental performance in 2003 – 25. The airports – Fewer passengers but more capacity
During 2003, traffic declined to 26 million passengers, which was 7 per cent lower than the year before. The number of landings in scheduled and charter traffic amounted to 222,000, or 5 per cent fewer than in 2002.
Despite a number of newly established back at its 1997-1998 level. In a longer During 2003, low-cost carriers added airlines and routes, overall traffic perspective, the CAA anticipates in- service to more than 15 new destina- growth is very weak. There is a trend creased demand. tions from Stockholm. towards an upturn for international During the year, Stockholm- scheduled flights. The sharp downturn International traffic Arlanda succeeded in attracting a num- in domestic traffic will require special International traffic at the CAA’s air- ber of new routes. Stockholm gained efforts in order to enable air travel to ports declined by 7 per cent during its first African route for many years, maintain its competitiveness. 2003. Most of the downturn was to Addis Ababa (Ethiopia), a route that The CAA’s airports are grouped explained by a decline of more than 20 was moved from Copenhagen into two divisions – the Stockholm per cent in traditional international International Airport (Denmark). New Division and the Group Airports charter (inclusive tour) travel from low-fare service to Oslo was established Division. The latter division consists of Swedish airports. on two new carriers. Relatively intensive 17 airports, all the way from Kiruna Fortunately, however, international competition is also occurring between north of the Arctic Circle to Malmö- traffic showed a positive trend during airlines in the Swedish market. Large- Sturup in the far south. The Stockholm the final quarter of 2003. During this scale expansion of services to Germany Division’s sales were SEK 2,386 M, quarter, scheduled international traffic is also planned in the spring of 2004. operating profit was SEK 432 M and showed an increase of 2 per cent. Swedish and German low-fare carriers the number of full-time equivalent Traffic to several of the major hubs in intend to start new services to several employees was 822. The Group Airports Europe as well as to the United States major German cities. Division reported sales of SEK 1,329 began to grow again. Especially encour- During 2003, the ban on interna- M, an operating profit of SEK -88 M aging was the 12 per cent increase in tional traffic from Stockholm-Bromma and 1,132 full-time equivalent traffic between Stockholm and Oslo Airport was removed, and new services employees. (Norway). Traditional charter traffic to Brussels (Belgium) and Copenhagen Traffic at the CAA’s airports in remains weak, however, but there are began. The route to Brussels was espe- 2003 was 4.3 million passengers fewer indications that the downturn will cially successful, and traffic to Brussels than in 2001, when the current down- soon slow compared to early in the rose by 25 per cent. turn began. This represents an accumu- year. The available routes from lated downturn of 15 per cent since Despite the market downturn, new Göteborg-Landvetter Airport in the events of September 2001 and the market players have appeared, espe- Gothenburg also changed during the beginning of the prevailing economic cially at larger airports. year. Several airlines shut down services. slowdown. During this period, a Low-cost carriers will continue For example, there are no longer any restructuring of the market has also their investments in the European mar- connections to Switzerland. occurred, with a decline in traffic for ket, while new destinations in the for- Fortunately, several of the existing air- traditional airlines and an increase for mer East bloc are considered to have lines at Landvetter are increasing their low-cost carriers. Air traffic is thus good potential in the near future. number of routes, in some cases restor- ing departures that were removed during 2003. The situation at Malmö-Sturup Traffic trend at the CAA’s airports Airport is also mixed. Sturup’s role as a Passengers Number Change from 2002 secondary airport in the Öresund region of southern Sweden and eastern European traffic 12,316,927 –7% Denmark means that there is always a Rest of world 1,068,663 0% risk of losing international traffic to Total international 13,385,590 –7% the dominant airport in the region, Domestic traffic 12,749,069 –7% Copenhagen International (Kastrup). Total 26,134,659 –7% With its dominant role, Copenhagen Landings also finds it easier to attract new traffic, European traffic 93,488 –4% despite the cost disadvantages that exist in Denmark. No long-term new inter- Rest of world 3,151 –2% national traffic of significance was Total international 96,639 –4% reported during the year. Domestic traffic 125,053 –6% Incoming charter traffic was started Total 221,692 –5% from Moscow (Russia) and the United Taxi flights and general aviation 78,862 –11% Kingdom to Östersund, an airport Total 300,554 –7% located close to several major northern Swedish mountain resorts.
20 The airports – Swedish CAA 2003 Despite a number of newly established airlines and routes, overall traffic growth is very weak. There is a trend towards an upturn for international scheduled flights. The sharp downturn in domestic traffic will require special efforts in order to enable air travel to maintain its competitiveness.
Swedish CAA 2003 – The airports 21 Domestic traffic Cargo traffic flows had a negative impact on Domestic traffic has decreased sharply The prospects look brighter for cargo, parking operations. The market for in the past two years. Unlike interna- now that new flight paths over north- leasing of office space is hard pressed tional traffic, domestic traffic is still ern Siberia may be opened. Some airli- in the region, but not to an equal shrinking. The CAA does not rule out nes have already received permission to extent at the airport. Overall, it is a continued weak trend in domestic use these flight paths on a limited necessary to take better advantage of traffic. A recovery is largely dependent basis. This might mean a great deal for the large flows that exist and improve on a positive economic trend. Aside air cargo services at Luleå, Arlanda and the range of services for both passen- from the impact of the economic cycle Landvetter and could open up the pos- gers and other customers and business on domestic traffic, the actions of SAS sibility that some of the intercontinental partners. When new portions of in this market are of particular impor- air cargo routes to the Far East might Terminal 5 opened in December, retail tance, considering that the airline has a go via these airports. The reason is space increased by 40 per cent. A new market share of about 70 per cent. their geographic location and the fact shopping arcade, developed in collabo- Stockholm-Bromma Airport had a that today’s cargo aircraft do not have ration with Amsterdam Schiphol very successful year in 2003. More and a long enough range to fly from Airport, was placed in service at the more travellers choose to travel domes- Central Europe to Tokyo, for example, same time. Arlanda thus has more tically via Bromma. Some shift in with a full load. shops with a broader range of products passengers from Arlanda to Bromma Landvetter has developed into a for travellers. has occurred. Bromma will shortly fill major Scandinavian cargo airport. Its its quota in terms of the number of central location in Scandinavia and its Civil aviation security permitted aircraft movements. This relatively small size are favourable for Tighter civil aviation safety rules will mean that in the future, Bromma rapid, high-quality cargo handling. according to the EU regulation have can only grow through a higher cabin The number of intercontinental cargo been fully implemented since July 19, factor on board aircraft. flights from Landvetter is the largest in 2003. At the beginning of 2003, the Aside from Bromma, Visby is the Scandinavia and this trend appears to CAA introduced 100 per cent screen- only one of the CAA’s airports that be continuing. New services have been ing of departing passengers and all showed an increase in passenger figures started to the United States and Asia baggage. Now transfer passengers and for the full year 2003. The competi- using Boeing 747s, the largest cargo their baggage must also be screened and tion in air services to Stockholm and aircraft. arriving passengers must be separated the resulting fare cuts are the main rea- Reports from the major air cargo from departing ones unless they are son. Generally speaking, airports with companies show a somewhat mixed coming from an airport that meets the competition in domestic traffic have picture, but the total market is recover- requirements of the regulation. been able to keep up their passenger ing. The overall vision is that world Airports are also enforcing tighter rules numbers better than airports with only trade, including air cargo, will continue for perimeter security and for screening one market player. The passenger trend to grow faster than GDP in general. of incoming and outgoing traffic, at Ängelholm, Luleå and Umeå was Due to the globalisation of the world including employees with workplaces substantially better than average, economy and the location of industrial at the airport. The expenses of civil thanks to competition. production in many countries, the aviation security at all CAA airports Traffic at airports in Norrland is need for long-distance shipments is totalled an estimated SEK 500 M in otherwise shrinking, with figures increasing. The advantages of aviation 2003. around the average, aside from compared to surface shipments will Sundsvall/Härnösand, which showed a continue to exist in the foreseeable Operations and expansion decline of no less than 13 per cent. For future. In recent years, Stockholm-Arlanda Sundsvall, as well as for other airports Air cargo services at Sturup have Airport has undergone a number of less than 500 km from Stockholm, the continued to develop favourably since major changes, both as a result of weak explanation is increased competition cargo carriers TNT and UPS relocated traffic growth over a number of years from other modes of transport. there from Copenhagen Airport. and of the major infrastructure invest- Airports like Jönköping and Kalmar Sturup has good potential to become a ments that have now been completed. have lost about 30 per cent of their regional hub for express cargo compa- The airport is thus considered capable passenger volume since 2000. Karlstad nies. of meeting the needs of its region and and Norrköping have lost even more, the country for the next 15-20 years. and the only domestic route remaining Commercial revenues As a result of capital spending for new at Norrköping is one to Visby. As a The traffic trend and the resulting facilities, Stockholm-Arlanda increased result of the sharp decline in traffic, decline in traffic revenues are increasing the area of its buildings and other the Group Airports Division has begun the pressure on airports to increase or space by about 50 per cent. the task of reviewing the structure of to create other sources of revenue. The In April 2003, Runway 3 went State-owned airports. largest revenues in their commercial into service and a new central building At Landvetter and Sturup, too, the operations are generated by parking which represents a significant expan- number of passengers in domestic operations and leasing of premises and sion of Terminal 5 was inaugurated on traffic has declined. One cause is com- land. These operations, too, are depen- December 17. Larger areas, new check- petition with other modes of transport, dent on the traffic flows generated by in counters and more shops offer but in the case of Sturup, increased air travel. travellers even better service and shop- competition from low-fare carriers in During 2003, Arlanda Airport ping facilities. Copenhagen late in 2003 led to an improved its earnings from retail sales At Bromma, extensive renovation unexpected downturn in passenger by more than 10 per cent compared to of retail space is under way in the volume to Stockholm. the preceding year. However, reduced terminal, and there is a new kiosk in
22 The airports – Swedish CAA 2003 the departure hall. The new control production (the number of passengers) CAA airports. During 2003, the air- tower went into service early in is another of the CAA’s overall environ- ports used 204 tonnes of urea, which November and was inaugurated on mental targets. was a reduction of 19 per cent com- November 24. In relation to the number of pared to the previous year. Those air- The Group Airports Division passengers, fossil fuel consumption ports that do not use urea ordinarily sharply reduced its capital spending declined between 2002 and 2003. use acetate-based anti-skid agents. volume during the year. In 2002 the Consumption including vehicle fuel, During 2003 the CAA carried out volume was SEK 485 M, and in 2003 fire-fighting drills and space heating, centralised procurement of formiate- the final figure was SEK 246 M. was at a level of 0.183 kg per passenger based anti-skid agents. Formiate is con- Extensive modernisation is taking during 2003. sidered to have a smaller environmental place at Örnsköldsvik Airport. The The issue of Arlanda’s exhaust impact than acetate. During 2003, for- investment will total SEK 86 M over ceiling was raised during the year. The miate was used at Arlanda, Landvetter the three-year period. The project was exhaust ceiling is an environmental and Umeå Airports. made possible by financial contribu- condition in Arlanda’s operating permit During the summer season, tions from the Municipality of which states that emissions of carbon Arlanda’s storm water treatment unit Örnsköldsvik, the County dioxide and nitrogen oxides from all was expanded by an additional five Administrative Board and the regional activities at the airport may not exceed filter beds to a total of seven. During business community. The EU has also their 1990 level. During 2003 the CAA the 2002/2003 winter season, purifica- supplied large sums. New control prepared an application on a change of tion in the unit was initially a 30 per towers adapted to the new air traffic this condition and during 2004 will cent reduction in organic materials, i.e. management system are being built at submit it to the Environmental Court. residue from de-icing chemicals and several Norrland airports. In addition, efforts to reduce emissions anti-skid agents. Efficiency was in- into the air intensified. creased during the autumn of 2003 to a The environment Work is continuously underway at 60 per cent reduction. When the air- Systemisation of environmental the CAA’s airports to replace older port began using Runway 3, it also work vehicles with newer ones that consume placed new environmental investments One of the Swedish CAA’s overall envi- less fuel and thus have lower emissions in service, among them four new test- ronmental targets for 2003 was that into the air. A number of airports have ing stations for monitoring of storm every unit should have a functioning switched or will switch from oil-fired water quality. environmental management system space heating to heating with pellets or The investigation of bottom-dwell- (EMS) meeting the ISO 14001 interna- district heating. One example is that ing fauna carried out every five years in tional standard. During 2003, the air- early in 2003, Bromma was connected the waterways around Arlanda took ports in Halmstad, Jönköping, Kalmar, to the municipal district heating place in the spring of 2003. The study Kiruna, Luleå, Skellefteå, Sundsvall, network, substantially reducing the showed that these waterways, which Visby, Örnsköldsvik and Östersund emissions generated at the airport. received treated storm water, are in introduced EMS’s. Umeå, Landvetter During 2003, the CAA received an good condition. The significant im- and Karlstad are environmentally certi- assignment from the Government to provement that has occurred since fied. The remaining six airports have report on the prerequisites for more 1988 is continuing. Investigations of not yet introduced environmental efficient energy use in CAA buildings bottom-dwelling fauna also took place management systems. as well as the potential to decrease the in Skellefteå. Arlanda Airport is integrating its use of fossil fuels. This report will be environmental management system in presented during 2004. Noise – fewer exposed but more the airport’s operating system, which complaints aside from environmental matters Programmes to reduce discharges A calculation and follow-up system can includes aviation safety, civil aviation into waterways now be used to follow up each individ- security and quality assurance. For some years, minimising the use of ual flight, in order to ensure compliance urea as an anti-skid agent at airports with flight paths and operating permit Reduced emissions into the air that do not have special treatment conditions. This system has been sup- Reduced consumption of fossil fuels in systems for nitrogen-polluted storm plemented with a noise calculation the CAA’s own operations, divided by water has been an important target at module and can now calculate noise
Swedish CAA 2003 – The airports 23 according to the Swedish noise calcula- degree thesis. This work continued all revenues that these airports generate tion method. with a pilot study of potentially pollut- for the system as a whole will show The third runway at Arlanda went ed areas at Kalmar Airport. positive earnings. From a strictly busi- into service on April 17. This means ness standpoint, without applying the that the noise contour of the airport Environmental performance in 2003 Swedish CAA’s system approach, the moved towards the east and that fewer The table on page 25 presents the CAA should not continue operating people than previously are inside the aggregate environmental performance these airports. The fact that it does so, 55 dBA contour at full capacity. of the CAA airports during the years without special subsidies from the Aircraft approaches to the third runway 1999-2003. Additional information on government, is due to the CAA’s role in from the south awakened strong reac- emissions, environmental impact and government transport policy. Using the tions in the built-up areas of the the CAA’s environmental targets will system approach chosen by the CAA, Municipality of Upplands Väsby, even also be reported on the CAA’s web site the overall estimated value of the fixed though these areas lie outside the noise in March 2004. For information about assets at its 19 airports exceeds their contours on which the airport’s permit each airport, please contact the respec- book value. The total book value of the for the runway are based. Local resi- tive airport. Emissions of carbon dioxide airports that show deficits is about dents have lodged a complaint with and sulphur dioxide into the air from SEK 720 M. the police, and the Environmental aviation activities at the CAA’s airports Since the Swedish CAA is part of Court is examining whether the airport declined by 8 per cent compared to an industry that is undergoing major is living up to the permit in force. 2002, mainly due to the almost corre- changes, the CAA will continuously Aside from its other responsibilities sponding decline in air traffic. The re-examine the assumptions that provide to the Government, Arlanda must also decline in hydrocarbon emissions was the basis for valuation of its fixed meet environmental conditions related 11 per cent, which can be explained to assets. The book value of the CAA’s to noise insulation. The airport lost a some extent by the use of more fixed assets at all airports totals SEK dispute in the Environmental Court, modern aircraft with more efficient 11,973 M. Earnings and book value of with the consequence that holiday resi- engines. fixed assets by airport are presented on dences must also be included in insula- Electricity consumption declined page 25. tion programmes. The case concerning by 39 GWh compared to 2002. Total In light of the civil aviation how to interpret “a maximum of 80 use of electricity and heating energy industry’s downturn, the CAA is carry- dBA three times per night” has not yet fell by 44 GWh or 14 per cent com- ing out a structural review that will been decided in the Environmental pared to 2002. Expressed as a ratio make it possible to estimate the micro- Court of Appeal. When the third compared to the number of passengers, and macroeconomic profitability of its runway went into service, about 30 energy consumption was lower than airports. This review is expected to be buildings were added to the list to be previously. Consumption of glycol for completed during 2004. studied and noise-insulated as needed. aircraft de-icing declined by 13 per cent. This work will not be completed until Consumption of formiate rose to Stockholm Division 2004, however. more than 1,300 tonnes, while acetate (Stockholm-Arlanda and Stockholm- According to the government bill consumption declined by about 80 per Bromma) on infrastructure that provides the cent compared to 2002. Consumption In 2003, the operating profit of the basis for the technical task of noise of glycol and anti-skid agents is closely Stockholm Division totalled SEK 432 insulation that the CAA will perform, connected to the weather situation. M (612). Of this amount, Stockholm- these programmes were to be complet- Arlanda Airport accounted for SEK ed by the end of 2003. The results of Financial results 412 M (614) and Stockholm-Bromma this work are described under the The airport system for SEK 20 M (-2). Sales totalled SEK CAA’s objectives on page 12. The airports operated by the CAA 2,386 M (2,372), which represented an belong to a single system with essential- increase of 1 per cent. Infrastructure Other environmental actions ly the same standards at all locations. revenues accounted for SEK 1,387 M during 2003 The operations and finances of a given (1,345). Other revenues totalled SEK During 2003, Landvetter took steps to airport also depend on what traffic is 1,007 M (1,027). Capital spending improve the quality of water entering generated at other places in the system. amounted to SEK 967 M (1,349). the sewerage system and installed two This is particularly obvious at the air- new oil separators at a vehicle work- port that forms the hub of the system, Group Airports Division shop and the fire station. The fire-fight- Stockholm-Arlanda. Because of its hub (Göteborg-Landvetter, Halmstad, ing practice area at Landvetter was function, Arlanda handles traffic that Jönköping, Kalmar, Karlstad, Kiruna, renovated to allow separation of residue feeds in from many locations around Luleå, Malmö-Sturup, Norrköping, from extinguished fires, which will Sweden. The criterion for an airport to Ronneby, Skellefteå, Sundsvall- lower the costs of hazardous waste contribute positively to the system is Härnösand, Umeå, Visby, Ängelholm, treatment. The airport also submitted not necessarily that it must show a Örnsköldsvik and Östersund Airports) documentation to the Environmental surplus when viewed in isolation. The operating profit of the Division Court in response to an application by Based on this system approach, deficits was SEK -88 M (71). Sales rose by 2 the National Environmental Protection that arise at some airports are covered per cent to SEK 1,329 M (1,308), of Agency on re-assessment of operations. by surpluses at other airports. which infrastructure revenues accoun- Halmstad, Norrköping, Ronneby Some airports will continue to ted for SEK 775 M (742). Capital and Sturup Airports were subjected to show such large deficits in the future, spending amounted to SEK 230 M environmental inspections. The possi- according to current assumptions (485). bility of finding polluted areas at the about traffic trends etc, that not even a CAA’s airports was studied in a master’s costing analysis that takes into account
24 The airports – Swedish CAA 2003 Airport statistics, 2003 Passenger figures in the following table include both arriving and departing passengers. Landing figures include taxi flights and general aviation.
Traffic Financial Passengers Landings Staff data
Total of which Total Full-time Fixed Capital intern. equivalent assets1 spending Sales Profit2 Number Change Number Number Change Number SEK M SEK M SEK M SEK M
Göteborg-Landvetter 3,604,720 –8% 2,491,917 30 072 –12% 454 1,000 80 571 97 Halmstad 125,911 –5% 35 6,656 –9% 25 3 0 15 –10 Jönköping 162,570 –12% 79,832 10,350 –9% 42 60 2 30 –19 Kalmar 192,094 –13% 39,716 7,159 –6% 27 48 3 23 –9 Karlstad 171,680 –21% 49,780 7,209 –3% 44 52 0 24 –43 Kiruna 160,353 –8% 3,602 3,750 –8% 32 72 14 26 –29 Luleå 847,233 –5% 42,980 8,221 –1% 40 78 6 84 1 Malmö-Sturup 1,742,285 –9% 676,542 21,110 –3% 119 436 52 258 23 Norrköping 99,854 –37% 90,789 10,093 –21% 30 53 10 20 –20 Ronneby 207,310 –3% 8,236 4,764 –10% 4 26 0 21 –6 Skellefteå 215,414 –8% 4,662 4,244 14% 37 68 10 25 –12 Stockholm-Arlanda 15,113,505 –8% 9,725,141 115,762 –6% 712 9,508 945 2,235 411 Stockholm-Bromma 1,281,636 23% 114,800 27,148 –7% 110 139 23 151 20 Sundsvall-Härnösand 343,844 –13% 10,194 7,656 –6% 56 127 4 51 –11 Umeå 705,833 –2% 32,718 10,482 –7% 77 93 8 86 18 Visby 309,659 3% 5,818 13,328 –3% 47 50 2 38 –6 Ängelholm 340,542 –3% 147 6,448 17% 31 72 27 34 –7 Örnsköldsvik 142,445 –6% 0 1,959 –11% 36 40 17 18 –17 Östersund 367,771 –11% 8,467 4,143 –13% 22 48 2 36 –18
1 Book value 2 Operating profit
Key figures on environmental performance at CAA airports, 1999 – 2003
2003 2002 2001 2000 1999 Number of landings 300,600 321,000 346,000 359,500 366,000
CO2, aircraft, LTO cycle [tonnes] 245,700 265,000 294,000 297,000 302,000
NOX, aircraft, LTO cycle [tonnes] 845 912 1,018 1,032 1,055 HC, aircraft, LTO cycle [tonnes] 129 143 172 212 244
SO2, aircraft, LTO cycle [tonnes] 78 84 93 94 96
CO2, CAA operations [tonnes] 16,000 19,000 20,000 14,000 19,000
NOX, CAA operations [tonnes] 94 112 130 120 142 HC, CAA operations [tonnes] 20 22 40 45 46 Total electricity consumption [GWh] 173 212 211 194 188 Total electricity and energy for heating [GWh] 264 308 344 281 279 Total electricity and energy for heating [KWh/passenger] 10 11 11 9 10 Urea use [tonnes] 204 252 226 227 246 Formiate use [tonnes] 1,350 195 0 29 0 Acetate use [tonnes] 252 1,278 1,398 1,028 1,762 Propylene glycol for aircraft de-icing [tonnes] 2,633 3,039 2,970 2,310 3,910
Comments: Aircraft LTO cycle (landing and take-off) refers to emissions from aircraft below 3,000 feet at CAA airports and airfields. Emissions into the air from CAA opera- tions refer to vehicle traffic, fire-fighter training and heating of buildings. These emission figures also include the activities of the Fire and Rescue School. Consumption of propylene glycol refers to the sum of use by the CAA and other de-icing companies.
Swedish CAA 2003 – The airports 25
Air Navigation Services Air Navigation Services (ANS) – 28. Aviation safety and capacity – 28. Operations – 28. International developments – 28. Training – 28. Financial results – 29. Air Navigation Services (ANS)
The recovery in the number of civil aircraft movements that was discernible late in 2002 had no impact during 2003. The total number of aircraft movements in Swedish airspace declined by 0.5 per cent during the year.
Domestic and international traffic de- rounding seas, i.e. Swedish airspace. tive airport. clined by 4 per cent, while traffic that Local air navigation services are The military flight schools in passes through Swedish airspace without provided at 37 airports, both civil Linköping began their operations. taking off or landing (overflights) rose (CAA and non-CAA) and military. The F16 air force base in Uppsala was by 7 per cent despite the Iraq war and discontinued at the end of 2003, but the SARS epidemic. Overflights in- Aviation safety and capacity some aviation activity will continue creased because the recovery in civil The ultimate purpose of the ANS there. aviation occurred faster elsewhere in Division is to promote safe and effi- The new control centres in Europe than in Sweden. The number cient air traffic. From these perspec- Stockholm and Malmö were scheduled of military flights fell by 4 per cent tives, 2003 was another successful year, to go into service in December 2003, compared to 2002. since the Division’s operations did not but their commissioning was post- Cautious traffic growth of about 3 contribute to any incidents that caused poned and they are expected to begin per cent annually is expected over the danger to life or serious material dam- operations during 2004. next few years. This trend is very age, while the market demand for air The CAA Aviation Safety uncertain, however, and it will probably navigation services was satisfied with Department’s examination of security take some years before the number of very few restrictions. certification for the software in the aircraft movements reaches the more new Eurocat 2000E air traffic manage- than 690,000 recorded in the peak Operations ment system was not completed in year of 2000. Due to the strained financial situation time to allow adherence to the schedule. The Air Navigation Services (ANS) of the CAA, there are new calls for Division is responsible for providing changes and streamlining of opera- International developments the Swedish CAA’s air navigation ser- tions. The ANS Division is contrib- The eleventh Air Navigation vices, including air traffic control, brief- uting to this by continuously adapting Conference (ANC/11) of the ing, telecommunications and rescue to prevailing conditions and market International Civil Aviation services for civil and military aviation. requirements and thereby helping Organisation (ICAO) established the The responsibilities of the ANS enable the CAA to fulfil its action pro- future global strategy for the develop- Division include infrastructure not gramme. ment of air navigation services. It is provided by airports, for example air Review efforts are being imple- worth noting that Swedish develop- traffic control centres and the associated mented in all portions of the Division’s ment efforts are very consistent with telecommunications technology equip- operations with the explicit ambition this strategy. The conference also con- ment, radar and navigation systems of minimising the effects on customers firmed that the satellite-based VDL and flight simulators at the Swedish and meanwhile, as far as possible, Mode 4 system (a technology based on Air Traffic Services Academy (SATSA). maintaining the capacity to restore a Swedish invention) is one of the pos- The Division’s core operations are capacity if traffic growth should take sible tools in this development work. divided into air navigation services en off. In the European arena, the coming route and local air navigation services The task of developing the new Single European Sky regulations from at airports, but the Division also pro- Malmö control centre into a common the EU are expected to impose new vides other services, for example air- Nordic control centre is continuing. and changed requirements on borne calibration services. The ANS The Nordic Upper Air Control Centre European providers of air navigation Division is the sole supplier of air traffic (NUAC) project is being pursued by services. Among other things, they are control services in Sweden. Its opera- the Swedish CAA and the Danish air expected to include EU-wide certifica- tions are financed by charges from navigation services organization NAVI- tion requirements. customers, such as airlines, the Swedish AIR. Norway and Finland have chosen The scale of these changes and Armed Forces and airports. to await developments for the time their effects on the Division are not yet Air navigation services en route being and are restricting their involve- known, however. The same regulations includes the operations at the Swedish ment to monitoring this work. will probably lead to the establishment area control centres (Sundsvall, The Danish-Swedish study on the of “functional airspace blocks”. Their Stockholm and Malmö) and at the ter- possibilities of streamlining air traffic purpose will be to streamline air navi- minal control centres in Gothenburg control services at airports in the gation services in upper airspace by and Norrköping. The flight briefing Öresund region is continuing. As one bridging over the limitations that cur- service at the Arlanda Flight Planning element of the ANS Division’s ambi- rently exist due to national boundaries. Centre and the Aeronautical Rescue tion to streamline operations, the One of the purposes of the above-men- Co-ordination Centre (ARCC) in approach control services for the air- tioned NUAC project is to respond to Gothenburg are also included. The ports in Ljungbyhed, Ängelholm and this development. Division’s field of operations is all of Halmstad were transferred from the Sweden plus large portions of the sur- Malmö control centre to each respec-
28 Air Navigation Services Division – Swedish CAA 2003 Training As a result of the efforts that have been made to train air traffic controllers, combined with the downward trend in the civil aviation market, no shortage any longer exists or is expected to exist over next few years. The national need to train air traffic controllers will thus be small for a few years. The situation is similar in the other Nordic countries. A study is therefore under way on whether to transform the Swedish Air Traffic Services Academy (SATSA) into an academy co-owned by several Nordic countries. The purpose is for Sweden, Norway and Denmark to operate the academy jointly, primarily to safeguard their long-term national needs for air traffic controller training. However, in the future SATSA will also continue to offer air traffic con- troller training to others besides students from these countries.
Financial results The 2003 sales of the ANS Division totalled SEK 1,698 M (1,755), and operating profit was SEK 301 M. Capital spending in 2003 amounted to SEK 127 M (182).
Air navigation services en route includes the operations at the
Swedish area control centres (Sundsvall, Stockholm and Malmö)
and at the terminal control centres in Gothenburg and Norrköping.
The flight briefing service at the Arlanda Flight Planning Centre
and the Aeronautical Rescue Co-ordination Centre (ARCC) in
Gothenburg are also included. The Division’s field of operations is
all of Sweden plus large portions of the surrounding seas,
i.e. Swedish airspace.
Air Navigation Services Division – Swedish CAA 2003 29
Regulatory functions The Swedish CAA’s regulatory functions consist of the standard setting and oversight performed by the Aviation Safety Department and the sectoral activities performed by the Aviation and Public Sector Department.
THE AVIATION SAFETY DEPARTMENT Safety – standard setting and oversight – 32. Aviation safety targets – 32. Scheduled and charter traffic – 32. Other commercial aviation – 32. Training flights – 32. Private aviation – 32. Reporting of incidents – 32. Aviation security targets and outcomes – 32. Flying time logged – 32. The Aviation Safety Department and the world – 34. International co-operation – 34. Swedish regulations – 34. Financial results – 34.
THE AVIATION AND PUBLIC SECTOR DEPARTMENT Sectoral operations – 36. An accessible transport system and positive regional development – 36. High transport quality – 36. A good environment – 36. A transport system with equal opportunities – 36. Market development – 36. Web-based air travel organisers – 36. Ticket prices – 36. Single European Sky – 36. ICAO – 37. Civil aviation relations with third countries – 37. Emission-based landing charges – 37. Air navigation service regulations in Sweden – 37. Charge equalisation system – 37. Civil aviation knowledge base – 37. Helicopter preparedness – 37. Euro-Atlantic Partnership Council – 37. Financial results – 37. Regulatory functions: Safety – standard setting and oversight
The Aviation Safety Department of the CAA is responsible for drafting and adopting safety rules for Swedish civil aviation and overseeing compliance with these rules. The Department has an independent role within the CAA.
Aviation safety targets Other commercial aviation Aviation safety targets and The Government has stated that the In other commercial aviation, which outcomes safety standard of Swedish civil avia- mainly consists of services provided by The target stated by the Swedish tion shall be at the level prevailing in helicopters and light aircraft, two Government is that protection against other well-developed civil aviation crashes occurred during 2003, none criminal acts that endanger the safety nations. For heavy commercial civil with fatalities, i.e. the same outcome as of civil aviation shall be at the same aviation, the Government states that in 2002. There have been no crashes level as in other nations with highly the target should be to halve the with fatalities during the past six years. developed civil aviation systems. The frequency of crashes during the period However, the frequency of crashes CAA believes that it has met this target. 1998-2007. The number of crashes in showed a slightly unfavourable trend. Swedish regulations (BCL-SEC) meet private aviation should also be halved international standards and recommen- during the same period. Training flights dations. The total crash frequency in training Four EU regulations concerning Scheduled and charter traffic flights showed a favourable trend. aviation security entered into force In 2003, one crash occurred in schedu- During 2003, two crashes occurred. during the year, and two of them have led and charter traffic. The crash, which No crashes with fatalities have occur- a direct impact on the standard of avi- occurred during a landing without red during the past seven years. ation security. Swedish regulations passengers, did not result in any seri- were updated in compliance with the ous personal injuries. During 2002, no Private aviation new EU requirements and went into crashes occurred, while two accidents The number of crashes during 2003 effect on July 19, 2003. The third EU occurred in 2001. was 17, none with fatalities. This was regulation imposes requirements on The crash frequency for scheduled the best outcome in more than 30 operational inspections by the Aviation and charter traffic over the past decade, years. The trend in private or non- Safety Department and the fourth 1994-2003, was 0.36 crashes per commercial aviation, excluding sports- regulation describes the European 100,000 flying hours, based on a related activities, shows a slightly Commission’s inspections of member forecast of total flying time for 2003. improved trend in total crash frequency. countries. This represents a decline of 10 per cent It is still too early to say whether the in the frequency of crashes compared target for the number of crashes in Flying time logged to the 1993-2002 decade. The safety private aviation will be achieved. Scheduled and charter traffic trend for the period was favourable. The forecast for 2003 indicates a decline Reporting of incidents in flying time logged of 4 per cent, There is good compliance with report- based on landing frequency in the ing requirements, and the number of CAA’s airport statistics. Crashes, scheduled and charter traffic incidents reported to the Aviation in Swedish civil aviation 1994-2003 Safety Department from the entire Other commercial aviation Number of crashes per 100,000 flying hours civil aviation system under the provi- In light of a reduction of more than 8 2 sions of Sweden’s civil aviation regula- per cent in other commercial aviation tions (BCL) and Joint Aviation in 2002, the CAA estimates that the Requirements Operations (JAR-OPS) downturn in 2003 will be 6 per cent. 1 remained at a high level. Incident reports form a valuable source of docu- Training flights mentation for all aviation safety work. The declining trend that began in 0 94 95 96 97 98 99 00 01 02 03 During 2003, the number of reported 2002 is believed to have continued in incidents was 2,232, compared to 2003. The forecasted flying time Non-fatal 2,229 during 2002, i.e. at the same logged in 2003 has thus been estimated With fatalities level. This was despite an expected 4 at -3 per cent. Number of crashes per 100,000 per cent decline in flying time in heavy flying hours civil aviation.
32 Regulatory functions – Swedish CAA 2003 There is good compliance with reporting requirements, and the number of incidents reported to the Aviation Safety Department from the entire civil aviation system under the provisions of Sweden’s civil aviation regulations (BCL) and Joint Aviation Requirements Operations
(JAR-OPS) remained at a high level. Incident reports form a valuable source of documentation for all aviation safety work.
Swedish CAA 2003 – Regulatory functions 33 warning system even if this should EASA is drafting “Essential Flying time logged, 2002 and fore- conflict with instructions from air traf- Requirements” (ER’s) related to certifi- cast for 2003, thousands of hours fic control. cates for flight crews and for flight 2002 2003 Change Crashes in Swedish airspace, which operations. It will later begin working Scheduled and are probed by the Board of Accident out “Implementation Rules” (IR’s) in charter traffic 346 332 -4% Investigation, lead to a number of these fields. The drafting of IR’s will be Other commercial 60 56 -6% recommendations to the Aviation of key significance to the future roles Safety Department every year. These of both EASA and the national author- Training 41 40 -3% recommendations are discussed at ities. Involvement in this work has Private 90 87 -3% crash-related meetings in the great strategic importance, since there Department and may lead to decisions is a need both to present Swedish values on action. In addition, the Department and needs and to pursue large-scale may take its own initiatives for actions informational work in the Swedish based on the investigation reports. market. Private aviation The task of introducing joint The task of introducing an EU Considering the earlier downward European operating regulations, JAR- regulation on the “Single European trend, the forecast for 2003 has been OPS 1 (aeroplanes) and JAR-OPS 3 Sky” was underway during 2003. It set at a decline of 3 per cent. (helicopters) has been completed, contains some elements related to safety except for certain visual flight rules standards in air traffic control, although The Aviation Safety Department (VFR) work with planes. it mainly has other purposes. and the world During 2003, the Aviation Safety The task of harmonisation between Despite a decline in flying time logged, Department again carried out its over- the US Federal Aviation Administration the number of aviation operating sight of Swedish civil aviation with the (FAA) and JAA continued, with some permits issued by the Aviation Safety aid of planned inspections of permit Swedish participation. Department was not significantly holders, i.e. airports, airlines, work- As a consequence of the terrorist affected. The desire to establish new shops, manufacturers, schools, the Air acts in the United States on September aviation companies seems to be holding Navigation Services Division etc. 11, 2001, there has been extensive up, although airlines also disappear Sweden is a signatory of an inter- international work to improve civil avi- from the market. At year-end, a total national agreement on ramp inspec- ation security. The International Civil of 81 Swedish aviation companies held tions of foreign aircraft, known as the Aviation Organisation (ICAO) ap- operating permits from the Aviation Safety Assessment of Foreign Aircraft proved revised standards and recom- Safety Department, a slight decline (SAFA). During 2003, the Aviation mendations in Annex 6 and 17 of the from 2002. Safety Department continued to carry Chicago Convention. The European Other types of companies with out such ramp inspections of foreign Civil Aviation Conference (ECAC) permits from the Aviation Safety aircraft at Swedish airports. approved new, revised recommenda- Department are also at about the same tions. The EU continued work level as previously. The number of International co-operation throughout 2002 and during 2003 on valid personal certificates (for pilots, International work remained intensive new aviation security regulations. In flight technicians etc) was also un- during 2003. The task of establishing April 2003, these new regulations went changed in principle at about 18,900. the European Aviation Safety Agency into effect. The Aviation Safety Major accidents in international (EASA) involved extensive efforts for Department participated in the work civil aviation affect the work of the its Swedish counterpart as well. In of both ECAC and the EU. Aviation Safety Department in addition, preparations for EASA have Sweden. For example, the tragic 2001 resulted in an appreciable increase in Swedish work on regulations accident at Linate Airport in Milan efforts to complete as many regulations During 2003, a whole new set of (Italy) involving an SAS aircraft has as possible within the framework of Swedish civil aviation security regula- resulted in international efforts to pre- the Joint Aviation Authorities (JAA). tions, BCL-SEC, was drafted. This set vent collisions on the ground. This EASA began its operations on of regulations supplements the EU work is headed by Eurocontrol, and September 28, 2003. EASA’s opera- regulation and entered into force on the Aviation Safety Department is a tions are guided by an EU regulation July 19, 2003. As early as the begin- participant. It resulted in a European from 2002. In addition, two regula- ning of 2003, a security screening Action Plan for Prevention of Runway tions in EASA’s area of responsibility, instruction entered into force, requiring Incursions”. The collision between two on type certification and continued that security screening include all pas- aircraft in the skies above Überlingen, airworthiness, went into effect during sengers and their baggage, both in Germany, in the summer of 2002 has 2003. From the beginning of opera- international and domestic traffic. also led to an international safety initi- tions, EASA took over all approvals of ative at the highest level. The Aviation aviation materials as well as the issuan- Financial results Safety Department is also part of this ce of airworthiness directives. EASA’s The sales of the Aviation Safety activity. The result of this work includes staffing is in the process of being built Department totalled SEK 105 M (96) clarifications on how pilots should fol- up and still consists only of a few indi- and operating profit was SEK -72 M low instructions from their collision viduals in management. (-78).
34 Regulatory functions – Swedish CAA 2003 In 2003, one crash occurred in scheduled and charter traffic. The crash, which occurred during a landing without passengers, did not result in any serious personal injuries. During 2002, no crashes occurred, while two accidents occurred in 2001.
Swedish CAA 2003 – Regulatory functions 35 Regulatory functions: Sectoral role
The task of the Swedish CAA in assuming sectoral responsibility for civil aviation is determined by the Government’s transport policy objectives and spans all fields of civil aviation. In addition to sectoral assignments, the CAA also performs regulatory work on civil aviation issues of a different nature than aviation safety. Within the CAA, the main responsibility for sectoral issues rests with the Aviation and Public Sector Department.
For the sectoral role of the Swedish cline in traffic in the Swedish domestic Ticket prices CAA, the Government has issued the market continued during 2003. Air Fares for private individuals on inter- following clarifications of the subsidiary traffic showed no signs of recovery. national flights fell during 2003. Fares objectives in its transport policy. for private individuals on Swedish Web-based air travel organisers domestic flights rose until October. In An accessible transport system A new type of market participants, November, however, these fares fell by and positive regional development known as web-based air travel organ- about 11 per cent, according to Statistics The objective is to improve accessibility isers, became increasingly common in Sweden. Fares for business travel were between regions and the world and Sweden. These market participants are relatively constant during most of the between main centres and the world for companies that behave like airlines year, but fell sharply along with fares for individuals and the business community. without having their own permits to private individuals in November. The objective is an increase in the provide air transport services. Web- Swedish air fares for private individ- percentage of people with special needs based air travel organisers in the Swedish uals are among the lowest in Western who can utilise the civil aviation air transport market have benefited Europe. Swedish fares for business system. No later than 2010, the air consumers by offering a broader range travel, however, are above the average transport system should be accessible of air travel and lower ticket prices. for comparable countries. to most people with functional disabil- ities. Positive regional development State-procured air traffic services High transport quality Traffic services procured by National Public Transport Agency starting October 27, 2002 The objective is to gradually improve the quality of air transport in terms of Air route: Operator Aircraft type predictability, safety, flexibility, com- Luleå-Pajala European Executive Express Beech 1900 fort, accessibility and availability of information. Stockholm/Arlanda-Sveg European Executive Express Jetstream 31 Stockholm/Arlanda- A good environment Hagfors-Torsby Värmlandsflyg (now Swedline) Beech 1900 The objective is to minimise the adver- Stockholm/Arlanda se environmental impact of civil avia- -Lycksele-Vilhelmina Danish Air Transport ATR 42/72 tion. As for air pollution, achieving Stockholm/Arlanda this objective will require both national -Storuman-Arvidsjaur Danish Air Transport ATR 42/72 actions and the active pursuit of envi- Stockholm/Arlanda-Gällivare Danish Air Transport ATR 42/72 ronmental issues in international work. Stockholm/Arlanda-Hemavan Danish Air Transport ATR 42/72
A transport system with equal Due to the weak traffic trend during the autumn of 2002, Danish Air Transport (DAT) terminated its agreement with opportunities the National Public Transport Agency after less than two months. Travellers and representatives of municipal air- ports criticised the Danish airline, saying its product did not live up to the standards of mandatory public trans- The objective is an air transport system port, mainly in terms of capacity, choice and setting of ticket prices by class. Under its agreement with the with an equal allocation of power and Swedish State, DAT was required to provide service on the procurement routes until June 21, 2003. influence between women and men in the air transport field. Follow-up of transport policy The National Public Transport Agency carried out a new procurement round to ensure objectives is presented in the service on the mandatory public transport routes from which DAT withdrew. The new “Objectives” section on page 10. procurement covered the period until March 27, 2004 with the following operators A presentation of the sectoral role is also provided in the CAA’s sectoral Air route: Operator Aircraft type report, which was submitted to the Stockholm/Arlanda Government in March 2004. -Lycksele-Vilhelmina Skyways Express AB Fooker 50 Stockholm/Arlanda Market developments -Storuman-Arvidsjaur Skyways Express AB Fooker 50 For many air service operators, 2003 Stockholm/Arlanda-Gällivare Swedline Express AB SAAB 2000 was a year of large financial losses. Stockholm/Arlanda-Hemavan Swedline Express AB SAAB 2000 While many traditional airlines were struggling, low-cost carriers showed On September 11, 2003, the Government decided not to implement the procurement for the period March better and better earnings. Low fare 2004-October 2006, citing a lack of funds. The Government also wished to wait for the National Public Transport Agency’s study on more effective air service procurement. The Government thus authorised the carriers gained market share. The de- Agency to carry out air traffic procurement for a period of one year starting on March 28, 2004.
36 Sectoral role – Swedish CAA 2003 Single European Sky dation includes a method for classify- security screening of passengers and Beginning in 2004, upper airspace will ing aircraft in terms of nitrogen emis- baggage, regardless of who owns or not be tied to national boundaries. sions, which may be used when intro- runs the airport. The intention is that EU member ducing emission-related landing charg- countries shall achieve a more flexible es. Sweden will introduce the ERLIG Civil aviation knowledge base use of airspace. Through its air naviga- model early in 2004 and Switzerland The CAA has completed and distribu- tion system that integrates civil and later in 2004. Co-operation between ted a knowledge base to municipalities military aviation, Sweden is a pacesetter the countries and exchange of experi- and county administrative boards on in this field. ences with charge systems are continu- the conditions governing civil aviation. ing. There are plans in other countries This information is intended to provide ICAO supports a liberalisation of to introduce charges according to the guidance in physical planning, for international civil aviation ERLIG model. example when adding and expanding The ICAO civil aviation conference on buildings and infrastructure. the theme of “Challenges and Oppor- Regulations for the Air Navigation tunities of Liberalisation” lent its sup- Services (ANS) Division in Sweden Air rescue service requirements port to a continued gradual liberalisa- Early in the year, new regulations for for helicopter preparedness tion of international air travel. ICAO the Air Navigation Services Division The CAA carried out a study to deter- especially emphasised the opportunity entered into force. This set of rules mine the level of ambition concerning for different countries to move forward came into existence as a consequence searches, localisation and helicopter at their own pace, but without work- of the previously implemented separa- preparedness for the air rescue service. ing against the ambitions of those tion of the Division’s provider and sec- This study also identified possible groups of countries or those regions tor role. The rules apply to ANS oper- solutions in order to satisfy the pro- that wish to deregulate at a faster pace. ations in Sweden and are largely based posed levels of ambition. on the internal regulations previously Civil aviation relations with third applied by the CAA. A review of the Co-operation within the frame- countries rules will be carried out after the deci- work of the Euro-Atlantic The EU council of transport ministers sion on implementing the Single Partnership Council has approved authorising the European European Sky. During 2003, the CAA participated in Commission to begin negotiations the work of the Civil Aviation with the United States in the field of Charge equalisation system for Planning Committee (CAPC), where air transport, as well as negotiations aviation security it was actively engaged in issues closely with third countries on the replace- At the CAA’s airports, since the early related to the CEP Action Plan of the ment of certain provisions in the exist- 1990s, security screening of passengers the Senior Civil Emergency Planning ing bilateral agreements with EU and baggage have been performed Committee. In CAPC, Sweden has a clauses. The Council also approved a under the auspices of the CAA and has commitment to be specially responsi- proposed regulation on how the nego- been financed by user fees. At munici- ble for developing talent and know- tiations on civil aviation agreements pal and private airports, however, the ledge in aeromedical evacuation. For between member countries and third police have been responsible for per- this purpose, during 2003 it organised countries should be carried out. forming and financing security screen- a two-day seminar with large interna- ing. The sharply tightened aviation tional attendance in Kiruna. Introduction of emission-related security requirements enacted in 2003 landing charges resulted in higher costs to the police, Financial results The CAA has actively participated in among others. In light of this, a propo- The cost of sectoral operations in the drafting and development of the sal has been drafted for a charge equal- 2003, including dues to international “ERLIG model”, a recommendation isation system for aviation security. organisations, was SEK 149 M (145), from the European Civil Aviation The equalisation system covers all air- and operating income amounted to Conference (ECAC). This recommen- ports in Sweden that have separate SEK -142 M (-143).
Swedish CAA 2003 – Sectoral role 37
Human resources Occupational safety and health – 40. Absences due to illness – 40. Talent management – 40. Management recruitment and leadership – 40. Gender equality and diversity – 40. Human resource statistics – 42. Human resources
During 2003, the task of structural adjustment continued. It is highly important to adapt and develop the organisation for new roles and changed working methods, and to pursue skills- related issues.
The task of structural adjustment and Short-term absences due to illness their supervisors. All employees will have retraining resulted in dismissals and declined somewhat compared to 2002, compiled a human resources profile and internal mobility. The FOCUS 2003 but absences due to illness are still high- will have familiarised themselves with employee survey showed that there are er than the established targets. Efforts the Group’s values. A strategic plan for important areas for improvement. The to prevent ill health have been initiated future skills recruitment will be in place, CAA must introduce more efficient but have not yet had their full impact. based on future retraining needs and working procedures, prevent ill health generational changes. and quality-assure its occupational Absences due to illness during 2003 health and safety work. were equivalent to 4.4 per cent of total Management recruitment and In order to respond better to rapid regular employee working hours. leadership changes in operations and greater com- Absences due to illnesses during a con- Long-term management development petition, a review of employment and tinuous period of more than 60 days includes two strategic areas – analysis working conditions is under way. The totalled 3.1 per cent. of management recruitment and devel- CAA has introduced a sourcing strate- opment of leadership and the manage- gy, which compares in-house work Skills recruitment ment role. Their purpose is to safe- with external suppliers both in terms of The aim of the CAA’s skills strategy is guard the supply of managers in the quality and cost aspects. Long-term to ensure a long-term supply of exper- short and long term. management and skills recruitment tise. During 2003, the CAA applied a must be safeguarded. common skills recruitment model, which Targets for 2003 Human resource issues focus on more clearly connects the future need for Of management recruitments, 90 per ensuring the employer role and long- expertise to changes in operations. cent were internal (target 75 per cent). term management and skills recruitment. The average lead time for management This implies adapting employer policy Targets for 2003 recruitment was two months (target 4 issues in the direction of greater flexibili- All units in the CAA Group shall months for external and 3 months for ty. Long-term management and skills implement a skills survey, which implies internal recruitment). For 44 per cent recruitment must be quality-assured. that employees have individual human of the two highest management levels, resource development plans connected a development strategy for their contin- Occupation safety and health to the objectives and needs of CAA ued leadership role has been drafted During 2003, the CAA took steps to operations. Of CAA employees, 40 per (target 100 per cent). lower illness figures. A method for risk cent have such a plan. assessment during organisational Targets for 2004 – 2006 changes was developed. Managers were Targets for 2004 – 2006 A five-point programme for develop- certified in occupational health and In the next few years, four key areas ment of managerial and leadership safety issues and given information will strengthen the CAA’s long-term roles will be implemented during the about their responsibility for rehabilita- recruitment of expertise. A skills three-year period. Among these is that tion efforts. recruitment model will be in place and a Group-wide managerial profile will Follow-up of absences due to illness all employees will have their own pro- have been introduced and be well occurs continuously. Rehabilitation stud- fessional development plans. All known to all managers. Managerial ies are being carried out more thought- employees will have completed profes- talents will have been described and an fully and consistently than before. sional development discussions with analysis of development areas will have been completed. All managers will Targets and outcomes have agreements with their supervisors on personal targets and Group-wide The Group Outcome Target Outcome Target Target management development programmes 02 03 03 04 05 will have begun. Absences due to illness (days/employee) Gender equality and diversity Total 120 16.1 12 15.8 12 11.5 During 2003, the CAA evaluated and revised its plan for gender equality and Absences due to illness, per cent of working hours diversity. The CAA’s ambition is to develop a culture that embraces differ- Men Women Total ences with regard to gender, age, Age –29 1.6 3.4 2.2 talents, experience and ethnic diversity. Age 30 – 49 3.0 5.2 3.9 The number of employees was Age 50 – 4.8 10 6.2 4,511. Of these, 65 per cent were men Total 3.4 6.2 4.4 and 35 per cent women. Women accounted for 23 per cent of managers
40 Human resources – Swedish CAA 2003 The CAA has introduced a sourcing strategy, which compares in-house work with external suppliers, both in terms of quality and cost aspects. Long-term management and skills recruitment must be safeguarded.
Swedish CAA 2003 – Human resources 41 in the CAA Group. Employees born the percentage of women among these, 83 per cent were permanent outside Sweden numbered 211, which managers shall be as large as the overall employees and 17 per cent were on represented 5 per cent of all employees. percentage of women employees. time-limited contracts. Targets for diversity and ethnicity will During the years 2002-2003, a Targets for 2004 – 2006 be discussed and fixed during 2004. total of 186 full-time equivalent The gender equality and diversity plan employees were dismissed as a conse- shall be well known and its activities Human resource statistics quence of the structural adjustment shall have been carried out. No During 2003, the number of full-time being carried out due to decreased air employee shall be subjected to harass- equivalent employees in the CAA traffic. Of these, 122 left the CAA ment and unpleasant special treatment. Group totaled 3,810. Compared to the Group, of whom 53 by means of pen- By 2007 the percentage of women preceding year, this was an increase of sion packages. The effects of structural among managers shall be at least 27 0.5 per cent. In December 2003, the adjustment work were equivalent to per cent. The long-term target is that number of employees was 4,511. Of cost reductions of SEK 67 M. At the same time as the structural adjustment has been implemented, the Gender and age distribution, employees in December 2003 * total number of employees has in- creased. The reason is recruitment Age Men Women Men % Women % needs attributable primarily to increased 0 – 20 13 2 0.3 0.0 security requirements as well as the 21 – 25 223 66 5.4 1.6 phase-out of military conscripts from 26 – 30 219 166 5.3 4.0 the fire and rescue service. 31 – 35 281 219 6.8 5.3 During the period 2004-2012, 850 employees are expected to retire with 36 – 40 329 306 8.0 7.4 pensions. This will require replacement 41 – 45 330 176 8.0 4.3 and skills recruitment planning in the 46 – 50 398 199 9.7 4.8 long and short term. 51 – 55 345 148 8.4 3.6 Staff turnover is low. External turn- 56 – 60 386 135 9.4 3.3 over rose somewhat during 2003, 61 – 130 39 3.2 0.9 however. Internal staff turnover has Total 2,654 1,456 64.6 35.4 decreased in the past three years. Re- assignments caused by structural * The figures do not include intermittent employees. adjustment efforts has not affected internal staff turnover especially much. 2002 2003 This is partly because re-assignments within a unit are not classified as recruit- Accumulated full-time equivalent employees 3,789 3,810 ment and thus do not affect the staff Number of employees (permanent, time-limited and turnover figures reported in the table. intermittent employees in December) 4,507 4,511 Age distribution Employee mobility Average age 44 43 Men 45 43 External employee mobility (per cent): Women 42 41 1999 2000 2001 2002 2003 444.6 3.9 4.9
Employee statistics, average full-time equivalent positions Internal employees mobility (per cent): Average full-time equivalent positions* 1999 2000 2001 2002 2003 2002 2003 Number Change 2.5 4 11.6 7.3 6.9 Stockholm Division 883 822 –61 –7% Gender and age distribution, Group Airports Division 1,074 1,132 58 5% employees in December 2003 ANS Division 1,110 1,094 –16 –1% (the figures do not include Other units 580 611 31 5% intermittent employees) Number of Total Swedish CAA 3,647 3,661 14 0.4% employees 600 Of which: 525 Infrastructure services 3,280 3,424 4 0% 450 Air traffic controllers/asst. controllers 680 662 –18 –3% 375 Students 35 26 –9 –35% 300 Other services 2,565 2,736 31 1% 225 Commercial services 367 237 10 3% 150 Subsidiaries 143 151 8 5% 75
Total, Swedish CAA Group 3,789 3,810 18 0.5% 0
61- 0-20 * Number of permanent employees and limited-time contract employees, adjustment for full-time hours, plus hourly 21-25 26-30 31-35 36-40 41-45 46-50 54-55 56-60 employees, overtime and extra time minus compensation time off, absences due to illness and leaves of absence. Men Women
42 Human resources – Swedish CAA 2003 During the years 2002-2003, a total of 186 full-time equivalent employees were dismissed as a consequence of the structural adjustment being carried out due to decreased air traffic.
Of these, 122 left the CAA Group, of whom 53 by means of pension packages.
Swedish CAA 2003 – Human resources 43
Accounts Group finances – 46. Income statements – 53. Balance sheets – 54. Statements of source and application of funds – 56. Accounting principles – 57. Notes – 60. Dividend – 65. Five-year summary – 66. Accounts Group finances
The Government’s instructions to the Swedish CAA (SFS 1988:78) specify that the CAA and the companies in which the Swedish State, through the CAA, directly or indirectly has a controlling influence, together form a State enterprise group, the Swedish CAA Group.
The Group consists of the Swedish should not continue operating these Operating expenses CAA, the wholly owned holding com- airports. The fact that it does so, with- Operating expenses, including depreci- pany LFV Holding AB plus the limited out special subsidies from the govern- ation and amortisation, totalled SEK liability companies LFV Airport ment, is due to the CAA’s role in 5,113 M (4,884), which was an increase Center AB, Göteborg-Landvetter Flyg- government transport policy. Earnings of SEK 229 M or 5 per cent. The in- platsfastigheter AB, Sturup Handling per airport are presented on page 25. crease was mainly due to greater AB and Swedavia AB, which are For many years, in the valuation of expenses as a consequence of higher wholly owned by the holding company. airports, the CAA has applied a system security screening standards at airports, Nordic Airport Properties AB is 50 per approach. Since the airports are operat- as well as larger depreciation for new cent owned by the holding company; ed as one system, an individual airport facilities. Excluding increases in the Cityflygplatsen i Göteborg AB and has been valued on the basis of its use- expenses of aviation security, total Västerås Flygplats AB are 40 per cent fulness to the system rather than on operating expenses would have been owned; and Kallax Cargo AB is 25 per the basis of reported profit. largely unchanged compared to the cent owned; they are thus associated Because the airports are operated as preceding year despite increased deprecia- companies of the Swedish CAA Group. a system, it is not possible in a meaning- tion. On behalf of the Swedish State, the ful way to isolate the cash flow that is State enterprise also owns 50 per cent attributable to individual airports that Staff expenses of the shares in A-banan Projekt AB, are part of the system. In case an air- Staff expenses were SEK 2,240 M which is thus an associated company port has facilities that are not needed (2,183), an increase of SEK 57 M due of the State enterprise. in the system, a separate valuation to higher pay levels as well as increased The CAA operates civil aviation occurs. human resource needs due to the take- traffic at 19 airports. At three of these over of the rescue service under the airports, the CAA is in charge of civil Profit CAA’s own auspices and stepped-up aviation traffic, which has been made The CAA Group’s profit after financial aviation security. Staff expenses also available through a co-operation agree- items in 2003 amounted to SEK -48 included restructuring expenses of ment with the Swedish Armed Forces. M (151), that is, a decline of SEK 199 about SEK 40 M due to the implemen- The CAA is also in charge of operating M compared to the preceding year. tation of employee cutbacks. one municipally owned airport This decline was due, among other through a leasing agreement. things, to a shrinking civil aviation Various external expenses The airports operated by the CAA market, including a 7 per cent down- Various external expenses, excluding belong to a single system with essen- turn in the number of passengers com- depreciation/amortisation, amounted tially the same standards at all locations. pared to 2002. In addition, there were to SEK 1,771 M (1,793), which repre- The operations and finances of a given increased depreciation expenses for the sented a decrease of SEK 22 M or 1 airport also depend on what traffic is facilities placed in service during the per cent despite higher expenses for generated at other places in the system. year, mainly at Stockholm-Arlanda aviation security. However, last year’s This is particularly obvious at the air- Airport. outcome included a nonrecurring item port that forms the hub of the system, of SEK 80 M related to a dispute with Arlanda. Because of its hub function, it Operating revenues SAS about a terminal at Stockholm- handles traffic that feeds in from many Operating revenues totalled SEK 5,402 Arlanda. Excluding this item, the year’s locations around Sweden. The criterion M (5,384), an increase of SEK 18 M. expenses would have been SEK 56 M for an airport to contribute positively Infrastructure revenues rose by higher than in 2002. The CAA was to the system is not necessarily that it SEK 6 M to SEK 3,554 M (3,548). able to limit the increase in expenses must show a surplus when viewed in The increase was entirely due to price through the work carried out in the isolation. Based on this system ap- increases, mainly security screening action programme the CAA began in proach, deficits that arise at some air- charges as a consequence of sharply the autumn of 2001 in order to improve ports are covered by surpluses at other increased screening requirements. If earnings. airports. traffic changes by 1 per cent annually, However, some airports show such traffic revenues change by about SEK Depreciation and amortisation large deficits that not even a costing 35 -40 M. Depreciation and amortisation totalled analysis that takes into account all Other operating revenues rose by a SEK 1,102 M (908), an increase of revenues that these airports generate marginal SEK 11 M to SEK 1,848 M SEK 194 M. The increase was due to a for the system as a whole will show (1,836). Revenues for rental of prem- large number of new facilities going positive earnings. From a narrow per- ises (large areas and new leases) and into service, which generated increased spective, without applying the Swedish revenues from ground handling services depreciation expenses, plus write-downs CAA’s system approach, the CAA rose. on facilities.
46 Accounts – Swedish CAA 2003 The airports operated by the CAA belong to a single system with essentially the same standards at all locations. The operations and finances of a given airport also depend on what traffic is generated at other places in the system.
Swedish CAA 2003 – Accounts 47 Profit on holdings in associated ing at airports due to new legislation as Equity/assets ratio companies well as in air navigation services due to The equity/assets ratio at year-end was Operating profit included the CAA’s lower traffic volume. 18 per cent (19), compared to the share of earnings in the associated The price changes that the CAA target of 20 per cent in 2003 and 2004 companies Västerås Flygplats AB, intends to carry out in 2004 are based and 25 per cent thereafter established Cityflygplatsen i Göteborg AB, Nordic on an attempt to support a long-term by the Government. Airport Properties AB and KB as well upturn in volume by limiting increases as Kallax Cargo AB, totalling SEK 19 in the CAA’s charges as far as possible. Dividend, tax and tax equivalent M (-11). In spite of this, the aviation security The year’s tax equivalent amounted to charge and ANS charges will rise SEK 0 M (0). Tax equivalent is calcu- Revenues, 2003, SEK M during the year. However, CAA’s ambi- lated according to the Government’s tion during the coming planning guidelines. During the year, CAA sub-
Ground handling etc 346 period 2004-2007 is not to raise its sidiaries paid SEK 0 M (1) in income Other revenues 141 traffic charges, provided that passenger tax. Of profit for the year, SEK -37 M Real estate/commercial volume at CAA airports increases by at (105) or SEK 0 M (35) is distributable revenues 1,361 least 2 per cent annually. In 2004, as a dividend. Infrastructures revenues 3,554 these charges will thus not change. However, two major structural changes Capital spending will be introduced: changes in the Capital expenditures were more than Expenses and profit, 2003, SEK M structure of the emission charge by SEK 723 M lower than in 2002 and
Share in associated introducing a new calculation model for totalled SEK 1,358 M (2,081). companies 9 exhaust emissions, the ERLIG model, Investment volume was the lowest over Depreciation/ and a re-allocation of charges between the past five years. amortisation 1,102 the take-off/landing charge and pas- Profit after financial items 280 senger charges so that the CAA’s charges Investments, 1999-2003 Staff expenses 2,240 will thus have relative proportions SEK M Various external similar to those in other countries. 3,500 expenses 1,771 The en route navigation charge for 2003 was raised by a modest 1.3 per 3,000 Operating profit cent measured in Swedish kronor and 2,500 Operating profit was reported at SEK 7 per cent measured in euros, due to 2,000
280 M (489), a decline of SEK 209 M. the continued appreciation of the 1,500 krona. The average increase in Europe Net financial items is 10 per cent, measured in euros. 1,000 Financial income and expenses (net Exactly as at airports, future efforts will 500 financial items) amounted to focus on keeping the cost base for the 0 99 00 01 02 03 SEK -328 M (-338), an improvement en route charge at a low level. In 2004, of SEK 10 M. however, the charge will be raised by Investments more than 8 per cent, measured in Prices euros. As the low-fare segment grows, the The main reasons for the hike are a Capital spending during 2003 consisted CAA’s charges represent a growing large deficit in 2001 and 2002, higher largely of continued work related to share of ticket prices. In the business depreciation/amortisation expenses in the expansion of terminal capacity and travel segment, the CAA’s charges are conjunction with the newly introrduced the third runway at Arlanda Airport as equivalent to a relatively small share of Eurocat 2000E system and a sharp in- well as new air traffic management ticket prices, about 10 per cent. crease in membership dues announced systems. These three investments However, given the growing range of by Eurocontrol. accounted for more than 60 per cent of low-fare tickets, the CAA’s share of the the Group’s total capirtal expenditures. ticket price is becoming sizeable. For Price restriction Otherwise, capital spending con- low-cost carriers, today 20-40 per cent The restriction that applies to traffic sisted mainly of replacement invest- of the customer price goes towards the charges, excluding en route charges, ments to make possible a safe, competi- CAA’s charges for airport and air navi- aviation security charges and noise tive and environmentally sound civil gation services. charges, specifies that these fees may aviation system. Among other major In the prevailing market situation, not increase faster than the net price investments were continued efforts at the price of a flight is one of the most index, with 1993 as the base year. CAA airports in aviation security. important factors for stimulating great- During 2003, the CAA remained er travel. It is therefore important that below this price ceiling. LFV Holding AB airlines enjoy stable long-term operat- LFV Holding was established in 1995 ing conditions, so that the cost Return to co-ordinate and manage the activities accounting assumptions behind new Return on equity after income tax and of the CAA’s limited liability companies. ventures are sustainable. For the CAA, tax equivalent was -1 per cent (4), with its large capital costs, a volume compared to the long-term target of 8 Wholly owned companies upturn is a crucial precondition for per cent established by the Govern- Swedavia AB is a wholly owned subsid- improved finances. During 2003, the ment and Parliament. Return on capital iary of the CAA entrusted with carry- CAA was forced to carry out price employed was 2 per cent (4). Return on ing out export-oriented consulting hikes related to aviation security screen- total assets was 2 per cent (3). operations in the field of civil aviation.
48 Accounts – Swedish CAA 2003 The price changes that the CAA intends to carry out in 2004 are based on an attempt to support a long-term upturn in volume by limiting increases in the CAA’s charges as far as possible.
Swedish CAA 2003 – Accounts 49 LFV Airport Center AB (LAC) is a Financial results this right to A-Train to be utilised as wholly owned subsidiary which nar- LFV Holding had sales of SEK 153 M long as service is provided in a contrac- rowed down its activities during 2003 (169) and profit before taxes was SEK tual manner. As for rail services on the to encompass mainly conference opera- -22 M (-17). Arlanda Link, A-Train is obligated to tions under the Prime Point name. provide certain rail services and to par- Sturup Handling AB is a wholly owned Financing of capital spending ticipate in a co-ordinated negotiating subsidiary entrusted with providing Capital spending was 63 per cent (49) procedure under the leadership of ground handling services in a market financed internally. The financing of A-Banan for allocation of service rights subjected to competition. capital spending is to occur in such a on the Arlanda Link. In this context, Göteborg-Landvetter Flygplats- way that the CAA’s long-term A-Train must accept the allocation of fastigheter AB is a wholly owned subsid- equity/assets ratio amounts to at least service rights, provided that it receives iary that mainly works with land and 25 per cent, which is both an internal reasonable compensation and that its forest management, leasing out of real requirement and a restriction from the airport shuttle service is not appreci- estate for residential and leisure pur- Government. The external financing ably constrained. poses and administrative services. employed to date has taken the form A-Banan has limited equity, and The company, in turn, owns a sub- of borrowing from the National Debt the Swedish CAA and National Rail sidiary, Flygplatsfastigheter i Landvetter Office. Administration have therefore issued AB, which specialises in owning, The CAA applied for and receiving an unlimited capital coverage guaran- managing and leasing out cargo termi- funding from the EU for the third tee on behalf of the company. This nals. runway at Arlanda. It also received commitment is based on a decision by small EU grants for other projects. Parliament, which the Government Associated companies conveyed to the two authorities in its The CAA owns Nordic Airport A-Banan Projekt AB letters of supply. The Swedish CAA Properties AB (NAP) together with the A-Banan Projekt AB (A-Banan) is an and National Rail Administration have American company Airis Holdings. associated company. The shares in A- signed a share management and The two owners each hold 50 per cent Banan are owned on a 50-50 basis by co-operation agreement. Since the and the purpose of the company is to the Swedish CAA and the National contractual rights and obligations of develop and manage properties at Rail Administration. The task of A- the Swedish State in the project have Swedish airports. Banan is to erect, own and manage the been gathered in A-Banan, the State’s Cityflygplatsen i Göteborg AB “Arlanda Link”, which connects risk exposure will be managed by that (formerly Göteborg-Säve Flygplats AB) Arlanda Airport with the State-owned company. According to the project runs civil aviation operations at Säve railway network. A-Train AB (A-Train), agreement, A-Train AB carries the Airport in Gothenburg, focusing mainly formed by a consortium consisting of entire commercial and technical risks on low-fare carriers. The CAA owns a Alstom, John Mowlem Construction, of the project. The Swedish CAA’s risk 40 per cent stake. The other owners NCC and Vattenfall AB, was contract- in the project consists of actions by are Volvo AB with a 40 per cent stake ed by A-Banan to build, finance and A-Banan or by the CAA itself that and the Municipality of Gotenburg operate the Arlanda Link. Upon com- affect these operations, plus the fact with 20 per cent. pletion, this facility was handed over that as an owner of A-Banan, the CAA The CAA has a 40 per cent stake to A-Banan, which in turn leases it out may be indirectly affected by any prob- in Västerås Flygplats AB (Västerås to A-Train. As compensation, A-Train lems with the project. Airport), with the City of Västerås has received the right to operate the The owners of A-Train have signed holding 60 per cent. The airport also airport shuttle train service between an agreement to sell their shares in runs civil aviation operations focusing Stockholm Central Station and A-Train to Macquarie Bank Limited on low fare carriers. Arlanda Airport until 2040. A-Train (Macquarie), which has its registered The CAA holds a 25 per cent stake operates this service under the name office in Australia. In conjunction with in Kallax Cargo AB. The other co- Arlanda Express. the transfer of shares, a refinancing of owners, each with a 25 per cent stake, A-Banan is entrusted with oversee- the project took place. A-Banan ap- are the Municipality of Luleå, the con- ing the State’s rights and obligations proved the sale and the refinancing in struction company NCC AB and the under the Arlandabanan Project January 2004. real estate company Fastighets AB Agreement, as well as being responsible If the project’s financial perfor- Norrporten. The company specialises after the completion of the Arlanda mance is not satisfactory, under certain in air cargo operations at Luleå Link for the State’s oversight and conditions A-Banan may re-assume Airport. monitoring of the airport shuttle service operation of the railway facility and Arlanda Schiphol Development and other operations on the Arlanda take over responsibility for six of the Company AB is in the process of being Link. Among A-Banan’s other duties seven trains. For the seventh train, formed and will be owned by the CAA are to participate in developing rail ser- there is no such contractual obligation together with the Dutch-based vices at Arlanda Airport and to inform for A-Banan to take over responsibility. Schiphol International BV. LFV will the National Debt Office of conditions In such a case, A-Banan must at least hold a 60 per cent stake and Schiphol that may affect the repayment of the temporarily be responsible for operat- International BV 40 per cent. The task conditional loan from the Swedish ing the railway facility and the airport of the company will be to fuether State. shuttle in order to safeguard contin- develop commercial businesses in the The Government has given A- ued, uninterrupted service. Nord (North) terminal area at Banan the right to provide rail service The future market position of the Stockholm-Arlanda Airport. on the State’s track facilities between airport shuttle service is crucial to the Stockholm Central Station and financial situation of the project. The Rosersberg. A-Banan has transferred punctuality and reliability of the trains
50 Accounts – Swedish CAA 2003 The owners of A-Train have signed an agreement to sell their shares in A-Train to Macquarie Bank Limited (Macquarie), which has its registered office in Australia. In conjunction with the transfer of shares, a refinancing of the project took place. A-Banan approved the sale and the refinancing in January 2004.
Swedish CAA 2003 – Accounts 51 are of great importance here, along in the borrowing portfolio should be ment authority and an air traffic with the potential for increasing train uniformly distributed. Within a 12- policy role for the civil aviation capacity in order to expand shuttle month period, a maximum of 50 per sector as a whole. traffic. The refinancing that has now cent of liabilities outstanding may be been completed is expected to give amortised. Derivative instruments are As the table “Profit by operating role” A-Train better potential for meeting its actively used in order to control indicates, the provider role accounts obligations, since it strengthens the interest rate exposure, for example by for the bulk of both revenues and company’s liquidity. The maturity of extending or shortening the average expenses. the new loan facility is five years, fixed-interest period without changing which means that the project will be the underlying loan. Cost coverage levels refinanced again within this period. Surplus liquidity is invested in cer- The following chart shows the cost During the year, the CAA compen- tificates of deposit and with counter- coverage levels of the service categories sated A-Banan in the amount of about parties that have a creditworthiness in the CAA’s provider role during the SEK 4 M for expenses that would equivalent to category K1 according to years 1999-2003. As the chart indi- otherwise have been borne by the CAA, the Nordisk Rating system or its equiv- cates, the CAA does not have full cost in compliance with the Government’s alent. Financial investments may not coverage for its infrastructure services. letters of supply. have a maturity period of more than 12 months. Profit forecast for 2004 Financial risks The Swedish CAA’s exchange risks The CAA expects its profit in 2004 to The financial operations and financial are primarily related to payments for be positive. risk management of the Swedish CAA capital expenditures. According to the are co-ordinated in a separate profit CAA’s financial policy, disbursements centre, LFV Finance. Its operations are above SEK 250,000 shall be hedged, Cost coverage level by service based on a financial policy document for example by using currency forward category, 1999 – 2003 that the CAA has communicated to contracts. % the Government, which states the 180 The CAA’s roles and services 141 146 106 117 122 limits within which the CAA may be 150 exposed to financial risks in the areas The Swedish CAA has three 120 of funding, financial and operating overall roles: 97 98 91 87 84 leases, financial investments and •Its provider role: operating and 90 foreign exchange transactions. improving the Swedish State air- 60
Interest rate risk in the CAA’s bor- ports and being responsible for air 30 rowing portfolio is limited by defining navigation services an average interest refixing period of •Its safety role: standard setting and 0 three years with a permitted deviation oversight, and 99 00 01 02 03 99 00 01 02 03 Infrastructure Commercial of ±12 months. The interest payments •Its sectoral role: exercise of govern- services services
Profit by operating role, SEK M
Provider role Safety role Sectoral role Total CAA 2003 2002 2003 2002 2003 2002 2003 2002 Infrastructure revenues 3,554 3,548 0 0 0 0 3,554 3,548 Other revenues 1,737 1,739 105 96 6 2 1,848 1,836 5,291 5,287 105 96 6 2 5,402 5,384 97.8% 98.1% 1.9% 1.8% 0.2% 0.1% 100.0% 100.0%
Staff expenses –2,085 –2,044 –118 –109 –37 –29 –2,240 –2,183 Various external expenses –1,602 –1,616 –58 –61 –112 –116 –1,771 –1,793 Depreciation/amortisation –1,101 –904 –1 –3 0 0 –1,102 –908 –4,787 –4,565 –177 –174 –149 –145 –5,113 –4,884 93.6% 93.5% 3.5% 3.5% 2.9% 3.0% 100.0% 100.0%
Profit on holdings in associated companies –9 –11 0 0 0 0 –9 –11
Operating profit 494 711 –72 –78 –142 –143 280 489
52 Accounts – Swedish CAA 2003 Income statements
Amounts in SEK M Swedish CAA Group State enterprise Note 2003 2002 2003 2002
OPERATING REVENUES Infrastructure revenues 1 3,554 3,548 3,554 3,548 Other operating revenues 2 1,848 1,836 1,747 1,714 5,402 5,384 5,301 5,262 OPERATING EXPENSES Staff expenses 3 –2,240 –2,183 –2,170 –2,119 Various external expenses 4 –1,771 –1,793 –1,758 –1,774 Depreciation/amortisation and write-downs of tangible and intangible fixed assets 5 –1,102 –908 –1,065 –870 –5,113 –4,884 –4,993 –4,763
Profit on holdings in Group and associated companies 6 –9 –11 – 45
Operating profit 280 489 308 544
Profit/loss from financial investments Profit/loss from fixed-asset securities and receivables 2 – – – Interest income 7 8 15 4 9 Interest expenses and similar items 8 –338 –353 –338 -341 –328 –338 –334 –332
Profit after financial items –48 151 –26 212
Income tax and tax equivalent 9 11 –46 9 –45
Profit for the year –37 105 –17 167
Swedish CAA 2003 – Accounts 53 Balance sheets
Amounts in SEK M Swedish CAA Group State enterprise Note Dec. 31, 2003 Dec. 31, 2002 Dec. 31, 2003 Dec. 31, 2002
ASSETS Fixed assets Intangible assets – Goodwill 0 0 – – – Licences 10 16 24 16 24 16 24 16 24
Tangible fixed assets – Buildings 11 5,424 4,786 5,375 4,733 – Land 11 111 37 110 37 – Field structures 11 4,714 3,370 3,686 2,313 – Electrical installations 11 1,334 1,058 1,334 1,058 – Telecommunications equipment 11 448 416 448 416 – Vehicles, machinery etc 11 1,114 886 1,095 867 – Leased fixed assets 11 37 50 37 50 – Construction in progress 11 1,419 3,960 1,419 3,960 14,601 14,563 13,504 13,434
Financial fixed assets – Holdings in Group companies 12 – – 75 75 – Holdings in associated companies 13 8 11 5 5 – Receivables from associated companies – – 9 13 – Other long-term receivables 14 52 138 21 106 60 149 110 199
Total fixed assets 14,677 14,736 13,630 13,657
Current assets Inventories etc – Stocks 41 44 41 44
Current receivables – Trade debtors 441 415 421 393 – Receivables from Group companies – – 14 19 – Receivables from associated companies 14 20 6 9 – Other receivables 352 300 344 297 – Tax claim 4 4 – – – Prepaid expenses and accrued revenues 15 204 258 200 244 1,015 997 985 962
Short-term investments 16 – 59 – –
Cash and bank balances, limit 480 M (600) 107 75 1 20
Total current assets 1,163 1,175 1,027 1,026
TOTAL ASSETS 15,840 15,911 14,657 14 683
54 Accounts – Swedish CAA 2003 Amounts in SEK M Swedish CAA Group State enterprise Note Dec. 31, 2003 Dec. 31, 2002 Dec. 31, 2003 Dec. 31, 2002
EQUITY AND LIABILITIES Equity Restricted equity – State funds 1,476 1,476 1,476 1,476 – Restricted reserves 17 797 830 776 800 2,273 2,306 2,252 2,276 Unrestricted equity 17 – Profit/loss brought forward 672 574 597 441 – Profit for the year –37 105 –17 167 635 679 580 608 Total equity 2,908 2,985 2,832 2,884 Deferred tax liabilities 9 306 317 302 311
Provisions Interest-bearing provisions – Provisions for pensions 18 3,280 2,985 3,269 2,977
Non-interest-bearing provisions – Miscellaneous provisions 19 91 65 79 54 – Negative goodwill 20 6 9 – – 3,377 3,059 3,348 3,031
Long-term liabilities Interest-bearing liabilities – Liabilities to leasing companies 21 30 40 30 40 – Liabilities to National Debt Office 22 6,917 6,496 6,917 6,496 – Other long-term liabilities 23 3 23 3
Non-interest-bearing liabilities – Other non-interest-bearing liabilities 23 1,038 1,062 15 15 8,008 7,601 6,985 6,554 Current liabilities Interest-bearing liabilities – Liabilities to leasing companies 10 11 10 11 – Overdraft facility (limit SEK 480 M) – 310 – 310 – Other interest-bearing liabilities 100 14 100 14
Non-interest-bearing liabilities – Trade creditors 387 506 382 502 – Tax liabilities – 0 – – – Other non-interest-bearing liabilities 67 273 65 269 – Accrued expenses and prepaid revenues 24 677 835 633 797 1,241 1,949 1,190 1,903
TOTAL EQUITY AND LIABILITIES 15,840 15,911 14,657 14,683 Memorandum items Contingent liabilities 25 29 31 9 8 Assets pledged None None None None
Swedish CAA 2003 – Accounts 55 Statements of source and application of funds
Amounts in SEK M Swedish CAA Group State enterprise Note 2003 2002 2003 2002
OPERATIONS Operating profit before depreciation/amortisation and write-downs of tangible and intangible assets 1,391 1,408 1,373 1,369 Dividends received – – – 45 Financial items –328 –338 –334 –332 Tax expenses 11 –46 9 –45 CASH FLOW BEFORE CHANGE IN WORKING CAPITAL AND INVESTMENTS 1,074 1,024 1,048 1,037
Change in stocks 3 –3 3 –3 Change in current receivables –18 194 –23 87 Change in current liabilities –708 105 –713 192 CASH FLOW BEFORE INVESTMENTS 351 1,320 315 1,313
INVESTMENTS Change in long-term receivables 86 –50 89 –44 Change in value of holdings in associated companies –12 –8 – – Gross investments in tangible and intangible fixed assets –1,358 –2,081 –1,354 –2 045 Divestments of fixed assets including investment grants 227 45 227 5 Net investments in operations –1,057 –2,094 –1,038 –2,084 CASH FLOW AFTER INVESTMENTS –706 –774 –723 –771
FINANCING Dividend –35 –4 –35 –4 Change in interest-bearing loans and provisions 726 507 723 508 Change in other long-term liabilities, including deferred taxes and non-interest-bearing provisions –12 218 16 231 Financing 679 721 704 735
CHANGE IN LIQUIDITY Liquid assets including short-term investments, January 1 134 187 20 56 Same, December 31 107 134 1 20 CHANGE IN LIQUID ASSETS –27 –53 –19 –36
56 Accounts – Swedish CAA 2003 Accounting principles
Amounts in SEK M (figures in brackets refer to 2002)
General compliance with the above-mentioned 100 per cent of the shares in A-Banan The government’s instructions to the rules for State enterprises and State Projekt AB, the CAA reports this asso- Swedish CAA (SFS 1988:78) specify enterprise groups. ciated company according to the pro- that the Swedish CAA and those com- Recommendation No. 4 of the portional consolidation method of panies in which the Swedish State Swedish Financial Accounting accounting, in compliance with ESV’s directly or indirectly has a controlling Standards Council on accounting for regulations and general advice. The influence through the CAA, together extraordinary items and disclosure for proportional consolidation method form a State enterprise group, the comparative purposes is applied. means that in its balance sheet and Swedish CAA Group. What units income statement, each respective belong to the Swedish CAA Group can Principles of consolidation owner company reports its proportion be seen in the section entitled “Group The consolidated accounts include the of the assets and liabilities as well as finances”, page 46. State enterprise and those Group com- the revenues and expenses of the asso- The Swedish CAA’s accounts for panies in which the State enterprise ciated company. the State enterprise and the Group fol- directly or indirectly possesses more low the Ordinance on Annual Reports than half the voting power for all shares General balance sheet and Budget Material (SFS 2000:605), or otherwise exercises a controlling valuation principle the regulations and general advice of influence, as well as those other com- Unless otherwise stated, assets, liabilities the Swedish National Financial panies (associated companies) in which and provisions have been valued at Management Authority (ESV) and the State enterprise has a substantial acquisition value. generally accepted accounting princi- influence as a consequence of its share- ples as provided by the Ordinance on holding. What units belong to the Fixed assets the Accounts of Public Authorities consolidated accounts can be seen in Tangible fixed assets (SFS 2000:606). To the extent that there the description in the section entitled Tangible fixed assets are valued at their is a lack of standard setting aimed “Group finances”, page 46. acquisition value, less depreciation. directly at public authorities and State When applicable, a write-down is enterprises the CAA applies the valua- Subsidiaries made in the manner described below. tion rules in the recommendations of Subsidiaries are companies in which When constructing facilities costing the Swedish Financial Accounting the parent company directly or substantial sums, in compliance with Standards Council in the manner report- indirectly holds more than 50 per cent ESV’s regulations and general advice, ed in each respective section below. of the voting power or otherwise has a interest during the construction period The CAA’s point of departure is controlling influence over operational is included in acquisition value. The that it should be possible to compare and financial management. The consoli- capitalised amount has been deter- the earnings and financial position it dated accounts have been prepared mined according to the alternative per- reports with the information provided according to the acquisition method of mitted in Recommendation RR 21 of by listed companies. When binding accounting. the Swedish Financial Accounting rules make it necessary to deviate from Goodwill is amortised, when appli- Standards Council on borrowing costs. this principle, this is specifically com- cable, over the expected utilisation Until further notice, the CAA has mented upon. In preparing their annual period. Negative goodwill that corre- no such obligations related to disas- reports, the subsidiaries of the Swedish sponds to expected future expenses is sembly, removal, soil decontamination CAA apply the Annual Accounts Act withdrawn as expenses arise. and similar measures that must be and generally accepted accounting prin- The Group’s accounting principles included in the depreciable amount of ciples for limited liability companies. for postponed (deferred) tax effects are fixed assets. Depreciation is calculated described below under the heading by apportioning the acquisition value Changes in accounting “Taxes and tax equivalent”. In translat- on a straight-line basis over the esti- principles etc ing the accounts of foreign subsidiaries, mated utilisation period. Depreciation In the income statements, balance the current method has been used. commences when an asset is ready to sheets, statements of source and applica- be placed in service for its intended tion of funds and the notes to these, Associated companies purpose. certain marginal adjustments and Reported as associated companies are When an asset includes compo- relocations have been made in 2002 companies in which the State enterprise nents with different utilisation periods, figures. During 2003, investment grants can exercise substantial influence due the CAA applies the rules in RR 12 received reduced on-going capital to its holding of more than 20 per cent concerning “component depreciation”. spending. During 2002 these grants but no more than 50 per cent of the Ongoing capital spending projects were reported as a short-term liability. voting power. With the exception of are reported under the heading A-Banan Projekt AB, these companies “Construction in progress”. Any depre- Formats and supplementary are reported in the consolidated ciation needed is examined, and the disclosures accounts according to the equity meth- CAA applies Recommendation RR 17 The income statements, balance sheets od of accounting. Since the Swedish of the Swedish Financial Accounting and statements of source and applica- State – through the CAA and the Standards Council on write-downs. tion of funds have been formatted in National Rail Administration – owns For many years, in the valuation of
Swedish CAA 2003 – Accounts 57 airports, the CAA has applied a system Personal computers other than compu- exchange rate prevailing on the balance approach. Since the airports are opera- ters on loan to employees are estimated sheet date, in compliance with ted as one system, an individual air- to have an economic service life of less Recommendation RR 8 of the Swedish port has been valued on the basis of its than 3 years. The acquisition cost is Financial Accounting Standards usefulness to the system rather than on thus expensed immediately. Council on reporting the effects of the basis of reported profit. As from the financial year 2001, changes in exchange rates. To the Because the airports are operated as the CAA applies depreciation periods extent receivables and liabilities have a system, it is not possible in a of 40 years for frames of terminal build- been hedged by forward contracts, meaningful way to isolate the cash ings and field structures. Applying they are translated at the contracted flow that is attributable to individual Recommendation RR 12 of the exchange rate. airports that are part of the system. Swedish Financial Accounting When applying RR 17, the airport Standards Council on tangible fixed Provisions and contingent system has therefore been treated as a assets, components with a shorter eco- liabilities single cash-generating unit. In case nomic service life are depreciated over The CAA applies Recommendation there are facilities at an airport that are the estimated shorter utilisation period RR 16 of the Swedish Financial not needed in the system, a separate of each component. The depreciation Accounting Standards Council on pro- valuation of these occurs. periods applied are re-examined on a visions, contingent liabilities and con- Since the airport system is treated continuous basis. tingent assets in its reporting of provi- as a single cash-generating unit, the sions and contingent liabilities. need for write-downs will essentially be Leases A provision for restructuring measures fixed in compliance with the same Leases are classified either as financial is reported when a detailed restruc- principles as prescribed in ESV’s or operating leases. Classification is turing plan has been adopted and instructions and general advice. done by applying Recommendation communicated. Rules on contingent RR 6:99 of the Swedish Financial assets are not applied by the CAA. Intangible fixed assets Accounting Standards Council on Under provisions, the CAA reports Beginning on January 1, 2002, the CAA leasing agreements. any future obligations related to has applied ESV’s instructions and An agreement classified as a finan- employees who have been terminated general advice concerning the reporting cial lease is reported as an asset and a due to shortage of work and are aged of development expenditures. liability in the consolidated balance 54 years or older. Within a five-year According to the new rules, devel- sheet and, when applicable, in the period, such individuals may be grant- opment expenditures that meet speci- balance sheet of the State enterprise. ed pension benefits as stipulated by an fied requirements shall be reported as The reported amounts are treated in the agreement with the Job Security intangible fixed assets. Research expen- manner specified in RR 6:99 on leases. Foundation, provided that they have ditures may not be capitalised. Since not obtained other work. The assess- the ESV’s rules are based on the same Inventories ment of the size of the provision was principles as Recommendation RR 15 Inventories are valued at acquisition made on the basis of the insurance of the Swedish Financial Accounting value or net realisable value, whichever premium that government authorities Standards Council on intangible assets, is lower. (not State enterprises) must pay to the the CAA has obtained guidance on Job Security Foundation when an various application questions from RR Revenue recognition employee is terminated due to shortage 15. The State enterprise applies general of work. Purchased software with an econo- accrual accounting principles when A-Banan Projekt AB has future mic service life estimated at more than reporting both infrastructure revenues rent commitments to the Swedish three years is reported as an asset. and other operating revenues. The National Railways (SJ) and the principles applied are compatible with Swedish CAA related to rent for train Depreciation and amortisation Recommendation RR 11 of the station and airport areas. These periods Swedish Financial Accounting amounts have not been reported as lia- The following depreciation and amor- Standards Board on revenue recogni- bilities in the accounts of A-Banan tisation periods are applied in the State tion. Projekt AB, since this company must enterprise and Swedish CAA Group The CAA’s subsidiaries apply RR pay the same compensation to SJ and accounts. 11 in their revenue recognition. The the CAA as the company receives from subsidiary Swedavia thus applies the A-Train AB under the project agree- Amortisation of intangible fixed assets rules in RR 11 on service assignments ment. Software 3 years (percentage of completion method) Pensions Goodwill 5 years when reporting revenues resulting from ongoing consulting projects. Beginning with 2003, a new pension Depreciation of tangible fixed assets agreement, PA 03, applies to Swedish Buildings 5 – 40 years Trade debtors State employees born in 1943 or later. (SkyCity facility 30 years) Provisions for expected loss risks relat- For employees born in 1942 or earlier, Field structures 10 – 40 years ed to outstanding trade debtors have pension agreement PA-91 still applies. (Arlanda Link 40 years) been based on individual examinations. PA 03 includes retirement pension, Electrical installations 5 – 20 years survivors’ pension and disability pen- Receivables and liabilities in Telecommunications equipment 8 – 15 years sion coverage. foreign currencies PA 03 includes the following Vehicles, machinery etc 3 – 10 years Receivables and liabilities in foreign retirement pensions: Computers on loan to employees 3 years currencies have been translated at the Defined-contribution pensions –
58 Accounts – Swedish CAA 2003 individual retirement pension and sup- are expected to qualify for pensions. 2003 accounts of the CAA. plementary retirement pension, The State enterprise pays the special Both the State enterprise and the KÅPAN. Premiums are paid for these. payroll tax on pension disbursements. Group report postponed (deferred) tax Defined-benefit pensions – retire- The provision for the special payroll on the difference between reported ment pension on income above 7.5 tax is based on the size of the pension profit and profit for tax purposes, in “base amounts” as defined by Swedish liability at the end of the financial year. compliance with Recommendation RR social insurance rules, and retirement 9 of the Swedish Financial Accounting pension according to transitional rules Taxes and tax equivalent Standards Council. The equity portion for employees born from 1943 to The subsidiaries of the Swedish CAA of the untaxed reserves of subsidiaries 1972. These commitments are report- pay normal corporation tax. The CAA and the utilised portion of the State ed under provisions. is not liable for income tax but, in enterprise’s potential extra depreciation The year’s provision for pension addition to the dividend, must remit a on fixed assets are included in restrict- liabilities, together with premiums “tax equivalent” amount that is equiva- ed reserves, which are reported both in paid, was expensed. The interest por- lent to the income tax that would be the accounts of the State enterprise tion of the year’s pension expense is paid if its operations occurred in the and the Group. The State enterprise reported as a financial expense. form of a limited liability company. has the opportunity to carry out extra The reported pension liability con- The tax equivalent payable for the depreciation on fixed assets, SEK 977 sists of the CAA’s actuarially projected year is to be calculated on the basis of M as of December 31, 2003, of which obligations under the PA-91 and PA reported Group profit according to the SEK 874 M was used for calculation of 03 pension agreements. This pension consolidated accounts, less tax-exempt tax equivalent for 2003 and prior liability is calculated according to the provisions (“appropriations”) equivalent years. principles established by the National to those available to limited liability The Swedish CAA pays State real Government Service Pension and companies and minus the corporation estate taxes and the special payroll tax Group Life Insurance Board. tax payments of subsidiaries. on pension expenses and is liable for Pension liability includes obliga- The State enterprise reports a taxation under the law on value-added tions to both active employees and liability related to the estimated tax tax. The Swedish CAA also pays adver- pensioners. Unvested commitments, equivalent for the financial year. The tising taxes on revenues from renting i.e. those related to employees with Government will determine the final out advertising space at airports as well retirement ages below 65, are included dividend amount and the year’s tax as energy tax related to its energy con- in the liability, since these employees equivalent amount when it adopts the sumption.
Definitions
Capitalised interest: Interest expenses attributable to facilities financial results from the period are compared to those of other under construction are included in acquisition value. periods. Such interest expenses comprise the portion of the State enter- Liquidity ratio: Current assets as a percentage of current liabili- prise’s actual interest expenses that would have been avoided if ties. the capital expenditure had not occurred. Long-term liabilities: Liabilities due for payment no earlier than Current assets: Assets that are either liquid or convertible into in one year. liquid assets. Return on capital employed: Operating profit plus financial Current liabilities: Liabilities due for payment during the coming income as a percentage of the average balance sheet total accounting year. minus non-interest-bearing current liabilities. Depreciation: The acquisition cost of a fixed asset divided into Return on equity (after income tax and tax equivalent): Profit equal annual amounts during its estimated economic service life. after income tax and tax equivalent as a percentage of average Equity: State funds plus restricted reserves and unrestricted equity. Equivalent to return on adjusted equity after tax equivalent. equity. Return on total assets: Operating profit plus financial income, Equity/assets ratio: Equity as a percentage of total assets. as a percentage of the average balance sheet total. Fixed assets: Assets intended for use over three or more years. State funds: Funds provided by the State, on which a return is Items affecting comparability: Events and transactions whose due. Equivalent to share capital in a limited liability company. impact on financial results is important to bear in mind when Tax equivalent: Equivalent to corporation tax.
Swedish CAA 2003 – Accounts 59 Notes
Amounts in SEK M (figures in brackets refer to 2002). The other members of the Group’s Management Team are covered by the PA 03 State pension agreement and have notice periods for termina- tion in compliance with the State enterprise agreement and the security NOTE 1 of employment agreement in the State sector. Infrastructure revenues The employment terms of the Managing Directors of subsidiaries are described in the annual report of each respective company. CAA Group State enterprise Appointments held by the Director General and Board members in 2003 2002 2003 2002 other public authorities and limited liability companies are listed on page 68-69. Landing charges 808 863 808 863 En route charges 1,231 1,276 1,231 1,276 Absences due to illness State enterpriset Compensation for air 2003 navigation services 174 199 174 199 Passenger charges 912 958 912 958 Total absences due to illness as a share of 4.4% Security screening 423 247 423 247 ordinary working hours: 4.4% Other infrastructure revenues 6 5 6 5 Share of total absences due to illness related to 3,554 3,548 3,554 3,548 continuous absences of 60 days or more 3.1% NOTE 2 Absences due to illness, by gender: Men 3.4% Other operating revenues Women 6.2% CAA Group State enterprise Absences due to illness, by age category: 2003 2002 2003 2002 Age 29 or younger 2.2% Revenues from duty-free sales 195 211 195 211 Age 30-49 3.9% Rents and leases 382 361 375 354 Age 50 or older 6.2% Advertising revenues 65 72 65 65 Property services 105 114 104 113 Fee to auditors, SEK M Car parking charges 358 366 358 366 CAA Group State enterprise Ground handling 303 276 238 213 2003 2002 2003 2002 Aircraft parking 49 48 49 48 Operating agreements 26 15 24 15 Swedish National Audit Office Services for outside parties 136 150 86 96 – Auditing assignments 2 2 2 2 Capitalised work for own account 60 72 60 72 KPMG Public authority charges 81 68 81 68 – Auditing assignments 0 0 – – Other revenues 88 83 112 93 – Other assignments 0 0 0 0 1,848 1,836 1,747 1,714 22 22
Of other State enterprise revenues, 3.2 (4.3) per cent came from Group NOTE 4 companies. Various external expenses NOTE 3 CAA Group State enterprise 2003 2002 2003 2002 Staff expenses and information on Re-sale expenses 110 135 76 99 staff, Director General, Managing Property and rent expenses 315 269 285 243 Directors, Boards of Directors Materials, maintenance and auditors and transport 286 278 281 271 CAA Group State enterprise Travel expenses 58 58 55 54 2003 2002 2003 2002 Outside services 729 686 795 753 Wages and salaries 1,307 1,285 1,265 1,243 Administrative expenses 273 367 266 354 Employer social welfare fees 808 842 785 823 1,771 1,793 1,758 1,774 Other staff expenses 125 56 120 53 Of “Various external expenses” in the State enterprise, 0.7 (0.8) per cent 2,240 2,183 2,170 2,119 came from Group companies. Among employer social welfare fees were pension expenses of SEK 333 M (401), including special payroll tax NOTE 5
Wages, salaries and other remuneration, SEK M Depreciation/amortisation and write-downs of Boards, Director Other tangible and intangible fixed assets General and employees CAA Group State enterprise Managing 2003 2002 2003 2002 Directors Depreciation/amortisation: 2003 2002 2003 2002 Intangible assets (amortisation) 5 0 5 0 State enterprise 1 1 1 264 1 242 Subsidiaries and Buildings 329 271 327 266 associated companies 3 5 39 37 Field structures 230 187 199 159 Total, CAA Group 4 6 1,303 1,279 Electrical installations 148 110 148 110 Telecommunications equipment 102 94 102 94 The Director General and Group Chief Executive was paid SEK 1.3 M Vehicles, machinery etc 224 185 220 180 (1.1) in salary and remuneration during 2003. The Chairman of the Board Leased installations 12 16 12 16 was paid SEK 62,500. Each of the other Board members received be- tween SEK 11,800 and SEK 36,250. Write-downs: The Director General holds a special limited-term appointment accord- Buildings 13 – 13 – ing to the rules for Swedish State executives. His position entitles him to Field structures 19 5 19 5 a pension according to the PA 03 State pension agreement. Electrical installations 3 12 3 12 If the Director General should be dismissed or not be offered equivalent Telecommunications equipment – 20 – 20 new employment after his term of employment expires, a pension will be Vehicles, machinery etc 17 8 17 8 payable according to the ordinance on pensions to appointed officials. 1,102 908 1,065 870
60 Accounts – Swedish CAA 2003 NOTE 6 The income statements of both the State enterprise and the Swedish CAA. Group include income tax payable for the year as well as deferred Profit on holdings in Group and income tax. associated companies CAA Group State enterprise The total tax expense is distributed as follows: 2003 2002 2003 2002 CAA Group State enterprise Associated companies: 2003 2002 2003 2002 Västerås Flygplats AB – Share of profit in associated Income tax payable for the year 0 1 0 0 company –8 –6 – – Deferred tax –11 45 –9 45 Cityflygplatsen i Göteborg AB –11 46 –9 45 – Share of profit in associated Deferred tax is attributable to: company 0 –5 – – Tax allocation reserve 231 265 219 248 Kallax Cargo AB Accumulated depreciation for – Share of profit in associated tax purposes 863 867 858 863 company –1 –1 – – 1,094 1,132 1,077 1,111 Nordic Airport Properties AB – Share of profit in associatedt 0 1 – – Deferred tax liability (28%) 306 317 302 311 company Group companies: NOTE 10 – Dividend from subsidiaries (LFV Holding AB) – – – 45 Intangible fixed assets –9 –11 – 45 CAA Group State enterprise 2003 2002 2003 2002 NOTE 7 Acquisition value on January 1 25 1 24 0 Interest income Acquisitions for the year 2 24 2 24 Divestments/disposals –5 – –5 – CAA Group State enterprise Acquisition value on December 31 22 25 21 24 2003 2002 2003 2002 Interest income from banks 7 9 3 5 Amortisation/write-downs on Interest income from current January 1 –1 –0 – – receivables 1 4 1 3 Amortisation for the year –5 –1 –5 – Short-term financial investments – 0 – 0 Accumulated amortisation/ Other interest income – 2 – 1 write-downs on December 31 –6 –1 –5 – 8154 9Residual value on December 31 16 24 16 24
NOTE 8 NOTE 11 Interest expenses and similar items Tangible fixed assets CAA Group State enterprise CAA Group State enterprise 2003 2002 2003 2002 Buildings 2003 2002 2003 2002 National Debt Office 259 246 259 246 Acquisition value on January 1 7,194 6,142 7,127 6,042 Banks 6 4 6 3 Adjustment of January 1 value 36 – 36 – Interest portion of pension Acquisitions for the year 979 1,737 978 1,707 expense for the year 70 51 70 51 Divestments/disposals –128 –225 –128 –162 Financial leases 3 3 3 3 Reclassifications 10 –442 10 –442 SAS Terminal 2 – 17 – 17 Investment grants used – –24 – –24 Capital loss, pension Investment grants unused – 6 – 6 obligations – 32 – 21 Acquisition value on 338 353 338 341 December 31 8,092 7,194 8,023 7,127
NOTE 9 Depreciation and write-downs on January 1 –2,408 –2,562 –2,394 –2,529 Income tax and tax equivalent Adjustment of January 1 value –36 – –36 – State enterprise Depreciation for the year –333 –306 –327 –301 2003 2002 Write-downs for the year –13 35 –13 35 Divestments/disposals 128 175 128 151 As described above under the heading “Accounting principles”, Reclassifications –6 250 –6 250 income tax for the State enterprise has been calculated as follows Accumulated depreciation and 1) Income tax payable for the year write-downs on December 31 –2,668 –2,408 –2,648 –2,394
– Group profit, excluding share in associated companies, Residual value on December 31 5,424 4,786 5,375 4,733 before taxes –39 163 Minus: CAA Group State enterprise – Depreciation for tax purposes utilised 4 –211 Land 2003 2002 2003 2002 – Change in provision to Acquisition value on January 1 43 42 42 42 tax allocation reserve 35 51 Adjustment of opening balance –6 – –6 – Basis for calculation of income tax payable for the year 0 3 Acquisitions for the year 74 – 74 – 28% of this 0 1 Acquisition value on December 31 111 42 110 42 Minus: Taxes paid by subsidiaries and associated Depreciation and write-downs companies 0 –1 on January 1 6 –6 –6 –6 Income tax payable for the year 0 0 Adjustment of opening balance –6 – 6 – 2) Future (deferred) income tax Depreciation for the year – –0 – –0 – Depreciation for tax purposes –4 211 Accumulated depreciation and – The year’s change in tax allocation reserve –35 –51 write-downs on December 31 0 –6 0 –6 –39 160 Residual value on December 31 111 37 110 37 28% of this –11 45 Minus: Deferred taxes reported by subsidiaries 2 0 Aside from land values reported in the balance sheet, the Swedish CAA Total future (deferred) income tax –9 45 manages State land at Örnsköldsvik, Skellefteå and Landvetter Airports. Total income tax and tax equivalent –9 45 This land was turned over by the respective municipalities at no cost and is booked at SEK 0.
Swedish CAA 2003 – Accounts 61 CAA Group State enterprise CAA Group State enterprise Field structures 2003 2002 2003 2002 Vehicles, machinery etc 2003 2002 2003 2002 Acquisition value on January 1 4,874 4,438 3,730 3,294 Acquisition value Adjustment of opening balance 18 – 18 on January 1 2,228 1,437 2,171 1,383 Acquisitions for the year 1,590 518 1,590 518 Adjustment of opening balance 15 – 15 – Divestments/disposals –16 –80 –16 –80 Acquisitions for the year 470 604 465 598 Investment grants used – –2 – –2 Divestments/disposals –25 –128 –25 –125 Acquisition value Reclassifications 9 321 9 321 on December 31 6,466 4,874 5,322 3,730 Investment grants used – –6 – –6 Acquisition value Depreciation and write-downs on December 31 2,697 2,228 2,635 2,171 on January 1 –1,505 –1,392 –1,417 –1,333 Adjustment of opening balance –17 – –17 – Depreciation and write-downs Depreciation for the year –227 –180 –199 –152 on January 1 –1,342 –947 –1,304 –910 Write-downs for the year –19 –12 –19 –12 Adjustment of opening balance –15 – –15 – Divestments/disposals 16 80 16 80 Depreciation for the year –224 –185 –220 –180 Accumulated depreciation Write-downs for the year –17 –8 –17 –8 and write-downs Divestments/disposals 25 119 25 115 on December 31 –1,752 –1,505 –1,636 -1,417 Reclassifications –9 –319 –9 –319 Accumulated depreciation Residual value and write-downs on December 31 4,714 3,370 3,686 2,313 on December 31 –1,583 –1,342 –1,540 –1,304
The Arlanda Link is included in the Group accounts. The acquisition value Residual value of the facility consists of railway facilities at Stockholm Central Station, on December 31 1,114 886 1,095 867 Södra Böjen (The South Curve), a railway inside Arlanda Airport and other railway facilities inside the airport. The facility also includes the so- CAA Group State enterprise called Norra Böjen (North Curve), i.e. the portion of the facility that is not Leased fixed assets 2003 2002 2003 2002 used by the airport shuttle and that was financed by a State grant. In Acquisition value addition, certain work was performed for future commuter train services, on January 1 145 514 142 511 which were financed using a State appropriation. Acquisitions for the year 9 11 9 11 Divestments/disposals –11 –38 –9 –38 CAA Group State enterprise Reclassifications –27 –342 –27 –342 Electrical installations 2003 2002 2003 2002 Acquisition value Acquisition value on January 1 2,056 1,271 2,056 1,271 on December 31 116 145 115 142 Adjustment of opening balance 7 – 7 – Acquisitions for the year 427 485 427 485 Depreciation on January 1 –95 –449 –92 –446 Divestments/disposals –142 –67 –142 –67 Depreciation for the year –13 –16 –13 –16 Reclassifications – 369 – 369 Write-downs for the year – – – – Investment grants used – –2 – –2 Divestments/disposals 8 38 6 38 Acquisition value Reclassifications 21 333 21 333 on December 31 2,348 2,056 2,348 2,056 Accumulated depreciation on December 31 –79 –95 –78 –92 Depreciation and write-downs on January 1 –998 –754 –998 –754 Residual value Adjustment of opening balance –7 – –7 – on December 31 37 50 37 50 Depreciation for the year –148 –117 –148 –117 Write-downs for the year –3 –5 –3 –5 Residual value of leased assets in the consolidated accounts consisted Divestments/disposals 142 67 142 67 of “Buildings”, SEK 0 M (5); “Electrical installations”, SEK 16 M (19); Reclassifications – –190 – –190 “Telecommunications equipment”, SEK 1 M (3); and “Vehicles, machinery Accumulated depreciation etc”, SEK 20 M (23). and write-downs on December 31 1,014 –998 1,014 –998 CAA Group State enterprise Construction in progress 2003 2002 2003 2002 Residual value Acquisition value on December 31 1,334 1,058 1,334 1,058 on January 1 3,960 5,340 3,960 5,339 Grants received before 2003 –193 – –193 – Telecommunications CAA Group State enterprise Acquisitions for the year 1,358 2,026 1,354 2,021 equipment 2003 2002 2003 2002 Completed new facilities –3,706 –3,442 –3,702 –3,436 Acquisition value on January 1 1,433 1,322 1,433 1,322 Investment grants accrued Adjustment of opening balance 6 – 6 – during the year – –14 – –14 Acquisitions for the year 136 128 136 128 Reversal of 2001 grants – 50 – 50 Divestments/disposals –16 –109 –16 –109 Acquisition value Reclassifications 9 94 9 94 on December 31 1,419 3,960 1,419 3,960 Investment grants used – –2 – –2 Acquisition value During 2003, the Swedish CAA received investment grants of SEK 15 M on December 31 1,568 1,433 1,568 1,433 (0) from the Swedish Air Force; SEK 3 M (10) from various municipal bodies; SEK 12 M (20) from the EU; and SEK 10 M (6) from other parties. Depreciation and write-downs Most of the State enterprise’s buildings have not been assigned any on January 1 –1,017 –938 –1,017 –938 assessed value for tax purposes. The SkyCity facility, owned by the State Adjustment of opening balance –11 – –11 – enterprise since December 20, 2001, and the site leasehold officially Depreciation for the year –102 –94 –102 –94 designated Arlanda 2:2, held by LFV AirportCenter AB, have been as- Write-downs for the year – –20 – –20 signed assessed values of SEK 680 M and SEK 129 M, respectively. Divestments/disposals 16 109 16 109 Appeals have been lodged against the assessed values that have been Reclassifications –6 –74 –6 –74 assigned. The local tax authority charged LFV AirportCenter AB real Accumulated depreciation estate tax for 1994, which it is disputing by means of an appeal to the and write-downs County Administrative Court. on December 3 1,120 1,017 1,120 1,017 Real estate tax for 2002 and 2003 in the accounts of the State enter- prise was paid. Residual value on December 31 448 416 448 416
62 Accounts – Swedish CAA 2003 NOTE 12 Holdings In Group companies Corporate Number Percentage of Nominal Book ID number of shares share capital value value Direct holdings Shares in Group companies, State enterprise – LFV Holding AB 556374-8432 75,000 100 75 751
Indirect holdings (via LFV Holding AB) Shares in Group companies – LFV AirportCenter AB 556381-1057 13,000 100 – – – Swedavia AB 556193-1469 3,000 100 – – – Göteborg-Landvetter Flygplatsfastigheter AB 556142-8334 110,022 100 – – – Sturup Handling AB 556601-3388 10,000 100 – –
1 Original acquisition value SEK 75 M. No changes occurred in these holdings during the financial year.
NOTE 13 NOTE 14 Holdings in associated companies Other long-term receivables CAA Group State enterprise CAA Group State enterprise 2003 2002 2003 2002 2003 2002 2003 2002 Accumulated acquisition value On January 1 138 88 106 66 On January 1 35 23 5 5 Items added Addition, – Settlement, Eurocontrol –81 43 –81 43 Cityflygplatsen i Göteborg AB – 12 – – – Other long-term receivables 3 10 – 0 Addition, Västerås Flygplats AB 5 – – – – Depreciation on fixed assets Reclassifications1 –0 ––paid in advance –3 –3 –3 –3 Share in profit of associated – Receivables cleared –5 0 –1 – company (NAP KB) for the year 2 – – – 52 138 21 106 42 35 5 5 Accumulated share of profit etc Book value 52 138 21 106 On January 1 –24 –11 – – Share in net profit of associated companies for the year –9 –11 – – Change in equity of associated companies etc –1 –2 – – –34 –24 – –
Book value 8 11 5 5
1 Kallax Cargo AB was reported in 2001 under “Other long-term securities holdings”.
Corporate Number of Percentage Nominal Share of Book value ID number shares/ of share value adjusted State particip.s capital equity Group enterprise Specification of State enterprise and CAA Group holdings in associated companies Direct holdings – A-banan Projekt AB 556395-6928 5,000 50 5 5 – 51
Indirect holdings (via LFV Holding AB) – Västerås Flygplats AB 556489-6552 4,000 40 4 3 3 – – Cityflygplatsen i Göteborg AB 556195-5823 5,244 40 0 1 1 – – Kallax Cargo AB 556565-1147 300,000 25 2 1 1 – – Nordic Airport Properties AB 556598-5941 1,000 50 0 1 1 – – Nordic Airport Properties KB 969673–0143 1 50 0 2 2 – 85 There were no changes in holdings during the financial year. 1 Original acquisition value SEK 5 M. Negative accumulated shares of profit etc (“negative equity method reserve”) were charged in their entirety against the unrestricted equity of the Group. In the case of Västerås Flygplats AB and Cityflygplatsen i Göteborg AB, the negative equity method reserves amounted to SEK 20 M and SEK 11 M, respectively. In the income statement of the Group, the share of profit from associated companies is reported under two items. One is profit before taxes. The other is the share in the associated company’s taxes, which is reported along with the Group’s taxes (see Note 9).
Swedish CAA 2003 – Accounts 63 NOTE 15 are projected to occur. In the income statement, these expenses and the withdrawal of negative goodwill are reported under the heading “Various Prepaid expenses and accrued revenues external expenses” CAA Group State enterprise 2003 2002 2003 2002 NOTE 21 Miscellaneous prepaid expenses 64 34 62 28 Liabilities to leasing companies Accrued revenues 140 224 138 216 CAA Group State enterprise 204 258 200 244 2003 2002 2003 2002 NOTE 16 Leasing companies 30 40 30 40 30 40 30 40 Short-term financial investments Liabilities concerning financial leasing including the short-term portion CAA Group State enterprise falling due for payment during the coming five-year period. 2003 2002 2003 2002 Commercial paper – 59 – – NOTE 22 –59– – Liability to the National Debt Office Book value/Market value – 59 – – CAA Group State enterprise 2003 2002 2003 2002 NOTE 17 On January 1 6,510 5,516 6,510 5,516 Restricted reserves and unrestricted equity New borrowings 521 1,008 521 1,008 Payments of loan principal –14 –14 –14 –14 CAA Group State enterprise 7,017 6,510 7,017 6,510 Restricted Unrestricted Restricted Unrestricted reserves equity reserves equity The total liability to the National Debt Office was SEK 7,017 M (6,510). The projected principal payment of SEK 100 M (14) during 2004 was reported as a current liability. Loans that fall due for payment during Opening balance, 2003, 2004, SEK 1,335 M, will be rolled over and are therefore reported as a according to adopted long-term liability. balance sheet 830 679 800 608 Maturity date 1-5 years from balance sheet date SEK 5,092 M Dividend – –35 – –35 Maturity date later than five years from balance sheet date SEK 1,825 M Changes attributable to the The average remaining maturity of interest rate refixing periods as of Group’s associated companies –5 – – – December 31, 2003 was 31 months (31), including interest rate derivative Transfer between unrestricted instruments. and restricted equity –28 28 –24 24 The approved ceiling on borrowing is SEK 8,000 M. Profit for the year – –37 – –17 Closing balance, 2003 797 635 776 580 NOTE 23 NOTE 18 Other long-term non-interest-bearing liabilities Pension provision CAA Group State enterprise 2003 2002 2003 2002 CAA Group State enterprise 2003 2002 2003 2002 Prepaid traffic rights, Arlanda Link 1,001 1,029 – – On January 1 2,985 2,744 2,977 2,735 Miscellaneous 37 33 15 15 The year’s pension provision 352 295 349 296 The year’s pension 1,038 1,062 15 15 disbursements –57 –54 –57 –54 Financial leasing of vehicles is reported as a long-term liability, since the 3,280 2,985 3,269 2,977 leases that expire during 2004 will be replaced by new ones.
NOTE 24 “Pension provision” represents the actuarially projected commitments under the PA 03 pension agreement, calculated by the National Accrued expenses and prepaid revenues Government Employee Pensions Board (SPV). CAA Group State enterprise 2003 2002 2003 2002 NOTE 19 Wages, salaries and Other provisions other remuneration 25 21 24 20 CAA Group State enterprise Holiday pay liability 115 119 112 116 2003 2002 2003 2002 Employer social welfare fees 92 72 89 70 Accrued interest expenses 88 67 88 68 Restructuring expenses 29 19 29 19 Other accrued expenses 241 392 234 388 Job security funds 22 14 21 14 Prepaid revenues 116 164 86 135 Other provisions 40 32 29 21 677 835 633 797 91 65 79 54 NOTE 25 NOTE 20 Contingent liabilities Negative goodwill CAA Group State enterprise CAA Group State enterprise 2003 2002 2003 2002 2003 2002 2003 2002 Pension obligations to subsidiaries On January 1 9 12 – – and associated companies 7 7 7 6 Withdrawal –3 –3 – – Guarantee commitment for 69 ––Västerås Flygplats AB 17 17 – – Future rent obligations, Book value 6 9 – – A-Banan Proj. AB 5 7 – – Other contingent liabilities – – 2 2 Negative goodwill, SEK 15 M, which arose from the purchase of 29 31 9 8 Göteborg-Landvetter Flygplatsfastigheter AB, is related to future expenses such as noise insulation. This negative goodwill is being withdrawn via See also the description of obligations related to A-Banan Projekt AB in the income statement. The withdrawal of negative goodwill will occur the Report of the Directors. over a 5-year period, at the pace that the above-mentioned expenses
64 Accounts – Swedish CAA 2003 STATEMENT OF GOVERNMENT APPROPRIATIONS TO THE STATE ENTERPRISE FOR 2003, SEK 000
State budget appropriation 36:11 36:6 ap.3 Grants to Trans municipal European airports Network (flexible, with certain restrictions) Opening balance, January 1, 2003 0 41,201 Allocated according to letter of supply 94,900 20,000 Cancellation – –21,201 Expenditures 94,900 4,672 Closing balance, December 31, 2003 0 44,672
State budget income items Income 2114 Surplus remitted by the CAA 35,325 6511 Trans European Network 4,672
Proposed dividend
The dividend target is one third of profit for the year. For 2003, this means one third of SEK -37 M, or SEK 0 M. Income tax payable amounts to SEK 0 M.
Norrköping, February 16, 2004
Göran Tunhammar Lars Rekke Lars Andersson Chairman Director General
Anna Grönlund Mats Nilsson Sven-Erik Olsson
Eva Plogéus Annette Stavenow Karin Strömberg
Krister Örnfjäder Vice Chairman
The Auditors’ Report of the Swedish National Audit Office regarding this Annual Report was submitted on February 24, 2004.
Kerstin Jönsson Joakim Gustafsson Audit Director Audit Director
Swedish CAA 2003 – Accounts 65 Five-year summary
2003 2002 2001 2000 1999
AIR TRAFFIC (000) Number of landings 301 322 346 360 366 Number of passengers 26,135 28,063 30,481 30,846 28,982 Cargo and mail forwarded (tonnes) 237 255 234 249 227
FINANCIAL DATA (SEK M) Income statement Operating revenues 5,402 5,384 5,088 5,007 4,719 Operating expenses –5,113 –4,884 –4,919 –4,151 –4,549 – of which, items affecting comparability –––––671 Profit on holdings in associated companies –9 –11 20 –31 –8 Operating profit 280 489 189 825 162 Financial income 10 15 27 15 34 Financial expenses –338 –353 –196 –207 –178 Profit after financial items –48 151 20 633 18 Income tax and tax equivalent 11 –46 –7 –186 –10 Profit for the year –37 105 13 447 8
Balance sheet Fixed assets 14,677 14,736 13,559 11,375 9,603 Current assets 1,163 1,175 1,419 1,192 1,360 Equity 2,908 2,985 2,882 2,805 2,354 Deferred tax, provisions and long-term liabilities 11,691 10,977 10,243 8,202 7,142 Current liabilities 1,241 1,949 1,853 1,560 1,467 Total assets 15,840 15,911 14,978 12,567 10,963
Miscellaneous Investments 1,358 2,081 3,224 2,660 2,8981
Financial ratios, % Liquidity ratio 94 60 77 76 93 Equity/assets ratio 18 19 19 22 21 Return on equity (after income tax and tax equivalent) –1 4 0 17 0 Return on capital employed 24282 Return on total assets 23272
STAFF Number of full-time equivalent employees 3,810 3,789 3,829 3,738 3,633
1 Of which, the CAA’s investments SEK 1,754 M and SEK 1,144 M in initial valuation of the Arlanda Link.
66 Accounts – Swedish CAA 2003 Auditors’ report
February 24, 2004 The Government Ministry of Industry, Employment and Communications
The Swedish National Audit Office (Riksrevisionen) has examined the Annual Report of the Swedish Civil Aviation Administration (CAA) and the consolidated financial statements of the Swedish CAA Group, the under- lying accounts and the administration of the Management for the financial year 2003.
The Management of the Swedish CAA is responsible for running the CAA’s operations efficiently and according to law. This responsibility includes providing the Government with a reliable account of operations in the Annual Report.
It is Riksrevisionen’s responsibility to examine the Annual Report of the CAA, the consolidated financial state- ments of the Swedish CAA Group and the underlying accounts in accordance with generally accepted auditing standards in Sweden in order to assess whether the Annual Report and financial statements are reliable and the accounts are true and fair, as well as examine whether the administration of the Management complies with applicable regulations and special Government rulings.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance to determine whether the Annual Report and the consolidated financial statements are true and fair. The examination thus involved a selection of important trans- actions and administrative decisions. Concerning figures and information in the Report of the Directors, pages 24-25, in the sections entitled “Environmental performance in 2003” and “Environmental performance at CAA airports, 1999–2003”, these were not subjected to audit.
The audit that we have completed has provided a reasonable basis for our opinion set out below.
The Annual Report and the consolidated financial statements have been prepared in compliance with the Ordinance on Annual Reports of Public Authorities etc., Government letters of supply and other decisions con- cerning the Swedish CAA.
In the opinion of Riksrevisionen, the Annual Report and the consolidated financial statements are true and fair in all essential respects.
Kerstin Jönsson, Audit Director, has taken this decision. Joakim Gustafsson, Audit Director, has served as rappor- teur. Gina Funnemark, Deputy Director-General, has participated in the final audit process.
Kerstin Jönsson Joakim Gustafsson Audit Director Audit Director
Swedish CAA 2003 – Accounts 67 Board of Directors and Auditors
Göran Tunhammar, Chairman of the Board Anette Stavenow, independent school director
Krister Örnfjäder, Member of Parliament Mats Nilsson, Lieutenant General Karin Strömberg, business owner
Göran Tunhammar Lars Rekke Lars Andersson Anna Grönlund Mats Nilsson Chairman, Director General and Employee Member of Parliament Lieutenant General Swedish Free Enterprise Board member, representative, Board member, Board member, Foundation, Swedish CAA, 2001- Board member, Swedish CAA, 2001- Swedish CAA, 2001- Chairman, Board member, Swedish CAA, 1995- Member of the Party Head of Forces Board of Directors, A-Banan Projekt AB, Executive and Party Directorate, Swedish CAA, 2003- 2001- Board, Swedish Liberal Swedish Armed Forces Chairman of the Board, Nordic Airport Party, 2001- Headquarters, 2002- AMF Pension Properties Deputy Chairman, Löneanalyser AB (NAP), 2002- Committee on Taxation, Swedish Free Enterprise Cityflygplatsen i 2002- Foundation and Göteborg AB, 2002- Member of Parliament, Swedish Foreign Trade Board member, 2002- Association, 2003- Swedish Agency for Board member, Pension Government Employers, Guarantee Mutual 2001- Insurance Company, 2003-
68 Board of Directors and Auditors – Swedish CAA 2003 Sven-Erik Olsson, Field and Apron Anna Grönlund, Member of Parliament Lars Rekke, Director General Supervisor
Lars Andersson, Senior Repair Technician Eva Plogéus, County Labour Director
Sven-Erik Olsson Eva Plogéus Annette Stavenow Karin Strömberg Krister Örnfjäder Employee representative, County Labour Director, Business executive, Business owner, 2002- Member of Parliament Board member, Skåne, 2002- Director, GUC Media Board member, Vice Chairman of the Swedish CAA, 2003- Board member, independent school Swedish CAA, 2003- Board, Swedish CAA, Chairman, Aviation Swedish CAA, 1995- Board member, 1996- department, Swedish Swedish CAA, 2003- Board member, Swedish Federation of Civil Member, Uppsala CAA, 1996- Servants (ST), 2003- Municipal Council, Member of Parliament, 2002- 1992- Member, Uppsala Municipal Labour Market Board, 2002- Member, C-framåt, Uppsala County, 02-
The Auditors of the Swedish CAA are Kerstin Jönsson, Audit Director, and Joakim Gustafsson, Audit Director, Swedish National Audit Office (Riksrevisionen)
Swedish CAA 2003 – Board of Directors and Auditors 69 Management Team
Lars Rekke, Director General Kerstin Lindberg Göransson, Airport Director, Head of Stockholm Division
Dan Lundvall, Marketing Director
Per Wickenberg, Head of Aviation and Public Sector Department Lars Lundberg, Technical Director
Lars Rekke Karin Apelman Per Edström Lennart Jönsson Kerstin Lindberg Director General Finance Director Personnel Director Head of Air Navigation Göransson Services Division Airport Director, Head of Stockholm Division
70 Management Team – Swedish CAA 2003 Lennart Jönsson, Head of Air Navigation Services Division
Per Edström, Personnel Director
Karin Apelman, Finance Director Olle Sundin, Head of Group Airports Division
Lars Lundberg Dan Lundvall Olle Sundin Per Wickenberg Technical Director Marketing Director Head of Group Head of Aviation Airports Division and Public Sector Department
Swedish CAA 2003 – Management Team 71 Addresses
To dial these telephone and fax numbers from inside Sweden, omit the international access code (+46), then add 0 to the area code when dialling the rest of the number.
Swedish Civil Aviation Administration Norrköping Airport Örnsköldsvik Airport SE-601 79 Norrköping, Sweden SE-603 61 Norrköping, Sweden Västanå Telephone +46 11-19 20 00 Telephone +46 11-19 20 00 SE-890 35 Husum, Sweden Telex 64250 CIVAIR S Fax +46 11-16 87 50 Telephone +46 660-874 00 Fax +46 11-19 25 75 Airport Director: Lars Samuelsson Fax +46 660-874 07 Airport Director: B-O Lindgren Göteborg-Landvetter Airport Ronneby Airport SE-438 80 Landvetter, Sweden Mailbox 2000 Östersund Airport Telephone +46 31-94 10 00 SE-372 92 Kallinge, Sweden SE-832 96 Frösön, Sweden Fax +46 31-94 10 99 Telephone +46 457-255 90 Telephone +46 63-19 30 00 Airport Director: Gösta Landgren Fax +46 457-245 84 Fax +46 63-19 30 90 Airfield Director: Jim Magnusson Airfield Director: Kerstin Angantyr Halmstad Airport SE-305 91 Halmstad, Sweden Skellefteå Airport LFV Holding AB Telephone +46 35-12 80 70 SE-931 92 Skellefteå, Sweden SE-601 79 Norrköping, Sweden Fax +46 35-21 00 44 Telephone +46 910-576 00 Telephone +46 11-19 20 00 Airport Director: Leif Tillberg Fax +46 910-576 45 Fax +46 11-19 27 90 Airport Director: Robert Lindberg Managing Director: Karin Apelman Jönköping Airport SE-555 93 Jönköping, Sweden Stockholm-Arlanda Airport LFV AirportCenter AB Telephone +46 36-31 11 00 SE-190 45 Stockholm-Arlanda, Box 24 Fax +46 36-31 11 17 Sweden SE-190 45 Stockholm-Arlanda, Sweden Airport Director: Lennart Kågström Telephone +46 8-797 60 00 Telephone +46 8-797 61 40 Fax +46 8-797 86 00 Fax +46 8-59 36 20 61 Kalmar Airport Airport Director and Head of Stockholm Managing Director: Thomas Cassel SE-392 41 Kalmar, Sweden Division: Kerstin Lindberg Göransson Telephone +46 480-587 00 SWEDAVIA AB Fax +46 480-587 81 Stockholm-Bromma Airport Swedish Aviation Development AB Airport Director: Hans Hjertonsson SE-168 67 Bromma, Sweden SE-601 79 Norrköping, Sweden Telephone +46 8-797 68 00 Telephone +46 11-19 20 00 Karlstad Airport Fax +46 8-98 35 43 Fax +46 11-13 07 11 Våldalen 570 Airport Director: Marie-Louise Reinius Managing Director: Sture Ericsson SE-655 91 Karlstad, Sweden Telephone +46 54-55 60 00 Sundsvall/Härnösand Airport Sturup Handling AB Fax +46 54-55 60 90 SE-861 83 Timrå, Sweden Box 6 Airport Director: Florence Brinkegård Telephone +46 60-19 76 00 SE-230 32 Malmö-Sturup, Sweden Fax +46 60-19 76 19 Telephone +46 40-613 10 00 Kiruna Airport Acting Airport Director: Björn Widén Fax +46 40-613 11 42 Box 831 Managing Director: Mikael Tuviken SE-981 28 Kiruna, Sweden Umeå Airport Telephone +46 980-680 00 SE-904 22 Umeå, Sweden Göteborg-Landvetter Fax +46 980-680 08 Telephone +46 90-71 61 00 Flygplatsfastigheter AB Airport Director: Tommy Pettersson Fax +46 90-71 62 90 Box 2105 Airport Director: Karin Larsson-Tängdén SE-438 13 Landvetter, Sweden Luleå Airport Telephone +46 31-94 28 70 Flygstationsvägen 4 Visby Airport Fax +46 31-94 28 73 SE-972 54 Luleå, Sweden SE-621 41 Visby, Sweden Managing Director: Elsa Thuresson Telephone +46 920-24 49 00 Telephone +46 498-26 31 00 Fax +46 920-24 49 06 Fax +46 498-26 31 45 Airport Director: Lars Karbin Airport Director: Gunilla Dufour
Malmö-Sturup Airport Ängelholm/Helsingborg Airport Box 14 SE-262 91 Ängelholm, Sweden SE-230 32 Malmö-Sturup, Sweden Telephone +46 431-48 45 00 Telephone +46 40-613 10 00 Fax +46 431-48 45 10 Fax +46 40-613 12 15 Airport Director: Rose-Marie Östberg Airport Director: Lennart Björk
TEXT: Information Unit, Group Staff and LFV Group Support GRAPHIC DESIGN: Wildell/Creation Stockholm TRANSLATION: Victor Kayfetz, SCAN EDIT, Oakland, CA PHOTOGRAPHY: Kenneth Hellman PRINTING: LFV Tryckeri, Sweden, 2004.
72 Addresses – Swedish CAA 2003
Årsredovisning 2003
Årsredovisning 60179 Norrköping. Telefon 011-19 20 00. Fax 011-19 25 75. Organisationsnummer 202100 – 0795. [email protected] www.lfv.se 2003