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.
During the year, Swedavia continued its capital spendingto increase efficiency, capacity and attractiveness, thereby increasingcustomer value for both passengers and airlines. These andprevious measures, combined with sustained strong growth in airtravel and a successful property sale, helped the Group achieve its financial targets for 2014.
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 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 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.
Expanding Real Estate operations
Swedavia Real Estate consists of properties, both buildings andland, that are considered to be developable. The properties used for actual airport operations, such as terminals, and which make up most of Swedavia’s property portfolio are therefore not included in Swedavia Real Estate.
Operations that are responsiblefor the Group’s energy supply and telecommunications have beenconverted into companies and included in Real Estate operations. Swedavia Real Estate’s task is to own, manage and developselected properties in order to enhance the attractiveness andcompetitiveness of the airport and the region.
Real Estate operations constitute part of Swedavia’s comprehensive customeroffering but are also an essential requirement for the Group’sfunding of continued expansion and renewal. According to Swedavia’s strategy, income from developed properties that arethen sold reduces the need for external funding.
An important part of the property portfolio consists of office and logistics buildings at Stockholm Arlanda Airport, Göteborg Landvetter Airport and Malmö Airport. Some of these were formerly owned by the company Nordic Airport Properties, alloutstanding shares of which were acquired by Swedavia in 2013. These properties, together with the buildings that Swedavia acquired from Scandinavian Airlines System (SAS) in 2012, were restructured as registered properties with a book value of about three billion Swedish kronor.