Role and mission

Our airports

Stockholm Arlanda Airport 

• 26,6 million passengers in 2017
• 284 international routes, 43 domestic routes
• Most popular destinations: London, Copenhagen, Oslo

Göteborg Landvetter Airport

• 6,76 million passengers in 2017 
• 157 international routes, 20 domestic routes
• Most popular destinations: Stockholm, London, Amsterdam

Bromma Stockholm Airport

• 2,54 million passengers in 2017 
• 3 international routes, 12 domestic routes
• Most popular destinations: Malmö, Göteborg, Visby

Malmö Airport

• 2,2 million passengers in 2017 
• 57 international routes, 15 domestic routes
• Most popular destinations: Stpckholm, Gdansk, Skopje

Luleå Airport

• 1,21 million passengers in 2017 
• 13 international routes, 5 domestic routes
• Most popular destinations: Stockholm, Göteborg, Gran Canaria

Umeå Airport

• 1,06 million passengers in 2017 
• 12 international routes, 15 domestic routes
• Most popular destinations: Stockholm, Göteborg, Gran Canaria

Åre Östersund Airport

• 530 983 passengers in 2017 
• 6 internationl routes, 7 domestic routes
• Most popular destinations: Stockholm, Umeå, London

Visby Airport

Ronneby Airport

• 237 695 passengers in 2017 
• 2 domestic routes
• Most popular destinations: Stockholm, Umeå, Skellefteå

Kiruna Airport

• 282 412 passengers in 2017
• 1 international route, 5 domestic routes
• Most popular destinations: Stockholm, Umeå, London

Focus on the customer

Based onfour strategically selected focuses and on the stakeholder dialogues and materiality analyses that have been carriedout, Swedavia has organised its operations so that theyare run sustainably and according to solid businessprinciples with a focus on customers and achieving thecompany’s targets. This work shall also be characterised by an environment where aviation safety and security are guiding principles.

There are two operational areas, airport and real estate operations.Together, they provide a comprehensive offering that helps the company to fulfil its task by generating solid financial returns forthe owner and value for customers, that is, passengers, airlines andtenants.

Swedavia’s airport operations, which constitute the bulk of Swedavia’s business, both in terms of employees and revenue,consist of the two areas Aviation Business and Commercial Services.

Aviation Business

Aviation Business offers services focused on aviation operations, in the form of take-off and landing services, ground handling services and aircraft parking for airlines. Different kinds of passenger services are also provided, such as baggage handling.

Airport Operations are also responsible for infrastructure in the form of terminals and appurtenant systems as well as the aviation safetyand security needed for stable and safe operations.A well-functioning airport with a broad offering of attractivedestinations brings in passenger flows.

There is also a symbiosis since the attractiveness of an airport and destination are crucialto the airlines’ choice of destinations and their desire to establish direct routes. The more passengers that fly to and from an airport, the more tempting it is for airlines to offer new destinations, which in turn leads to increased travel and increased attractiveness.

Commercial Services

Commercial Services is responsible for developing retail andservice-based operations in conjunction with airport operations.The aim is to create an offering that makes Swedavia’s airports attractive to passengers. Airports with an attractive offering and good infrastructure for travel and retail activities encourage passengers to get to the airport earlier and stay longer – and come back when it is time for their next trip.

This drives traffic and thus revenue for both Swedavia and the airlines.Today Swedavia’s revenue from retail sales at the airportsrepresents a lower share of total revenue compared to many other airports. This can be explained in part by the fact that passengersbehave differently depending on what destination and airline areinvolved. Swedavia also has a large proportion of domestic traffic,and domestic passengers tend to spend less at airports on averagethan international passengers.

Property operations – Swedavia Real Estate

Swedavia's property operations are brought together in its Real Estate operating segment. Operations are responsible for buildings and land adjacent to the Group's airports which are not directly related to actual airport operations. Their task is primarily to develop but also sell properties, for instance, hotel and conference facilities as well as buildings for offices, logistics and other business that constitute
part of Swedavia's customer offering.

As airports become increasingly important hubs for travellers, meetings and commerce, these properties are growing in significance for the attractiveness and competitiveness of airports. Swedavia's real estate operations also have an important financial role. Revenue from developed properties that Swedavia can sell reduces the Company's need for external funding for investments in infrastructure and existing properties.

Long-term development

Swedavia Real Estate plans the long-term development of its property business at all of Swedavia's airports. There are extensive development plans for Stockholm Arlanda Airport, where construction began on the new Office One complex, with 15,000 square metres of space, in 2016 and on a hotel with about 500 rooms over twelve storeys in 2017.

The buildings are expected to be completed in 2018 and 2019, respectively. They will then constitute another step in the development of Airport City Stockholm, which is now taking shape, using the airport as a hub. At Airport City Stockholm, which will cover more than 800 hectares, there will be space for 50,000 workplaces, parks, a dedicated area for transport-related research, and a Cargo City with a focus on logistics. In the next phase, in 2018, the potential will be explored of building a congress hall with capacity for 3,000 to 4,000 people adjacent to the hotel and Office One.

In the Office One complex itself, Swedavia is planning office premises as well as a modern business hotel with about 5,000 square metres of space. The assessment is that there will be a growing interest over time in more flexible office solutions, where tenants can quickly expand or reduce their premises or move between offices. In the autumn of 2017, a sales process was launched for the new hotel property, which Comfort Hotels will be responsible for running when the building is completed. In December, an agreement was signed with a Swedish limited liability company owned by Wenaasgruppen AS and O.G. Ottersland AS to sell the property. The capital gain is estimated to be around 350 million kronor and is expected to be realised in 2019.

The expansion of Airport City Göteborg is planned immediately adjacent to Göteborg Landvetter Airport. There is growing demand for meeting and accommodation options in the Gothenburg region, and Swedavia has begun preparations for the construction of a new hotel property. The hotel, which based on a provisional agreement will be operated by Scandic, is expected to have about 220 rooms and extensive conference facilities.

Along with Swedavia's return target, its owner has adopted a capital structure or gearing target, a debt/equity ratio in the range of 0.7–1.5 times, and a dividend payout target corresponding to 30–50 percent of profit for the year. The actual figure for the two latter targets may thus vary over time.

Finally, the owner has adopted five so-called mission targets/indicators, by which actual results are monitored each year. The aim of these is to ensure that, in line with its task, Swedavia helps to achieve Swedish transport policy objectives.

The most recent changes in the Company's targets were made at an Extraordinary General Meeting in October 2017, when the return target was adjusted from at least seven to at least six per cent of operating capital and the target for gearing was changed, with a debt/equity ratio in the range of 0.7–1.5 times (rather than 1.0–1.5 times). The target for satisfied passengers in 2025 was set at 85 per cent. However,
it is thought that the extensive construction and renovation now under way to increase capacity at Swedavia's airports, especially Stockholm Arlanda Airport and Göteborg Landvetter Airport, could have such an effect on customer satisfaction that a sub-target of 79 per cent was set for 2017. The actual outcome for the year was 75 per cent.

Swedavia's four sustainability targets and the activities carried out to achieve them affect one another to a great extent. Engaged leaders and employees are an essential
condition for having satisfied passengers. Good collaborations with airlines and other strategic partners are another. It is important how satisfied customers are since this affects Swedavia's potential to increase its revenue. Revenue streams in turn are extremely important to Swedavia's return target and its capability to continue investing
in measures that provide further customer satisfaction. Long-term stable profitability is ultimately the basis for all operational development. This applies especially to the
environmental area, where Swedavia has ambitious targets that require active environmental work and access to sufficient financial resources.

Sustainability targets 2020

85% of satisfied passengers, outcome in 2017: 75% (2016 77%)

75% employee satisfaction*, outcome in 2017: 67% (2016 64%)

6% return on operating captital, outcome in 2017: 5,1% (2016 8,5%)

0 ton carbon dioxide emissions**, outcome in 2017: 1,9 (2016 2,7%)

* In 2016, Swedavia changed the metric for leaders and employees.

**The general environmental target of 0 tonnes of fossil carbon dioxide emissions applies to Swedavia’s own operations. 

Task targets/indicators actual 2017 (2016)

Satisfied passengers

75% (77%)

Number of passengers domestic/international

14,0 million/ 27,9 million (13,7 million/ 25,8 million)

Number of international destinations 

313 (287)

Carbon footprint***

524 000 tonnes (504 000 ton)

Accidents and serious incidents

3 (1)

***The carbon footprint task target is not included in the auditor’s review report.

Operational excellence

Operational excellence means that Swedavia shall deliver services and products that meet the requirements and expectations of customers by optimising use of both infrastructure and resources, automating processes and flows, and taking advantage of opportunities presented by digitisation and innovative solutions. To do this, Swedavia shall work efficiently, cost-consciously and continuously to develop this delivery to
customers and its own cost-effectiveness. Operational excellence also means that Swedavia has clearly defined products, services and processes, operationally and commercially.

Initiatives in the strategy Operational Excellence

• Improve flows and processes through automation and digitisation
• Increase the cost-effectiveness of processes
• Ensure an optimal and clear governance model

Engaging culture

An engaging culture is the basis of Swedavia being able to achieve its objectives and targets. Swedavia shall therefore create opportunities for its employees to grow and develop in an inclusive environment. Every employee is offered opportunities for development and rights if they take responsibility, meet their obligations and comply with Swedavia's values. Engaged employees mean that the Company works actively with inclusiveness for diversity. Diversity contributes to higher performance, creativity and innovativeness. Diversity in Swedavia's own organisation makes it easier to deal with diversity among customers. Swedavia shall also be an attractive employer that can attract, develop and retain the best employees. 

Initiatives in the strategy Engaging Culture

• Ensure access to competence in the short and long term
• Create an inclusive, involving and developing culture
• Strengthen the conditions for innovation
• Build pride in the Company and its sustainability work

Commercial excellence

Commercial excellence is the basis for understanding the customers' needs, now and in the future, and for the capability of offering and delivering products and services that are competitive and create value for Swedavia and its customers. Working along solid business principles, Swedavia offers an attractive range of routes and creates an innovative customer offering in retail, other services and properties. To do this, Swedavia must continuously assess its core operations, review its business models and develop its business and business-mindedness through innovation and digitisation.

Initiatives in the strategy Commercial Excellence

• Develop new business and revenue models
• Establish Airport Cities as attractive marketplaces
• Establish methods for customer-centric ways of working with the customer experience, customer-driven service design and cross-functional work to solve customers' problems and meet their needs
• Enhance and develop good external relations
• Ensure well-functioning communication with our customers

Increased capacity

Increased capacity is necessary to meet future customer needs. Swedavia shall therefore increase its operational and commercial capacity. This means that the Company, by designing the airports of the future, shall develop operational and commercial capacity to meet the customers' needs over time. The Company shall also ensure that it has the resources and competence, on its own, through partners and contractors, to complete ongoing and future development programmes on time, on budget and without any workplace accidents.

Initiatives in the strategy Increased Capacity

• Implementation of development programmes and investments to enhance capacity
• Work for increased access to and from the airports

Responsibility for society and people

Responsibility for society and people means that safety and security are fundamental to all operations, that resources and energy are used responsibly and efficiently and that the physical and psychosocial workplace are a priority. Swedavia shall take responsibility by having a life cycle perspective over time for customers, employees and society in general. Swedavia goes further than its formal responsibility requires,
and this constitutes a basis for the Company's ambition to be an international role model in sustainability.

Initiatives in the strategy Society and People

• Enhance the climate of safety and security at the airports
• Enhance the proactive and systematic work with safety and security
• Be a driver in the air transport industry's transition to bio fuel Switch to climate-smart energy solutions
• Ensure and develop business ethics at Swedavia
• Further develop risk and crisis management as well as continuity planning

Capacity is ensured through an accelerated investment rate

The number of passengers at Swedavia’s airports is expected to increase over time.The increase will mostly take place atairports with many international connections. Swedavia therefore needs to ensuresufficient terminal, gate and runway capacityto meet this growth.

A number of refurbishmentand expansion projects were carried out at the regional airports. At the airports in Kiruna, Luleå and Umeå, this was done through joint funding with the regions affected. Now resources are being concentrated mainly on Stockholm Arlanda Airport, Göteborg Landvetter Airport and Bromma Stockholm Airport. 

Alongside measures to increase capacity, Swedavia is also increasing opportunities to develop the atmosphere at the airports and enhance the commercial offering in the form of moreshops, cafés and restaurants.

Stockholm Arlanda Airport

In December 2013, Swedavia decided on its approach to the long-term development of Stockholm Arlanda Airport. A total of 13 billion kronor will be invested through 2043, with seven billion of this being invested through 2023. In the first phase, resources will be concentrated on meeting the increased demand for international connections with a new pier in Terminal 5. During the year, an investment was made in a new baggage facility in Terminal 2, and a new multi-storey parking facility was completed.

Swedavia also intends to invest three to four billion kronor in developing properties adjacent to the airport. Such capital spending can generate a return through the sale of properties and be reinvested in the development of the airports.

Göteborg Landvetter Airport

Göteborg Landvetter Airport recently completed a major refurbishment, but here too, investment in increased capacity is necessary in the long term. Measures completed during the year include the opening of the terminal area between domestic and Schengen traffic, thus improving use of the building. Going forward, new logistics properties will be developed adjacent to the airport, and commercial space will be expanded in the long term.

Bromma Stockholm Airport

The investments that Swedavia is making at Bromma Stockholm Airport are being carried out in compliance with the requirements that the Swedish Transport Agency has placed on operations. In addition, investments to improve the atmosphere at the airport are also being carried out.