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1 ANNUAL REPORT 2017
2 Dear colleagues, partners, clients! The year 2017 for the SJSC Latvijas gaisa satiksme (LGS) was very active, intense and successful. We have managed to increase the number of flights operated and are glad that our hard job has paid back and brought us success. LGS cares for a long-term development of the company to continue provision of safe and quality air navigation services in future. This is why we continue to invest in the development of technologies and improvement of the personnel skills. I would like to mark that in 2017 we have made a significant progress within our new ATC tower project which we plan to accomplish in At the same time, we have been able to essentially increase remuneration of ATCOs and other employees of LGS and have kept improving working conditions. I want to express my gratitude to the employees of LGS for this year as well as the Ministry of Transport, our clients and partners for support. Only together we can reach success. Sincerely Yours, Dāvids Tauriņš, Chairman of the Board
3 ABOUT US LGS is a company providing air navigation services in the Riga Flight Information region (FIR) to all the air space users since October VISION LGS aims to become the most highly estimated air navigation services provider in the region according to the following criteria: Safety and quality of the provided services; Financial efficiency; loyalty of employees based on good working conditions, career possibilities and competitive remuneration. MISSION LGS ensures safe aircraft traffic providing air navigation services effectively and efficiently on a stable long term basis. COMPETENCE LGS optimizes air space utilization providing effective and reliable air navigation services according to its competence and prioritizing flight safety at the highest level. High quality service provision for adequate and competitive price is the main business principle of the company. As a provider of air navigation services LGS offers its customers air traffic management (ATM), meteo (MET), aeronautical information (AIS), communication, navigation and surveillance services (CNS). The company provides air traffic services for all general air traffic (GAT) and all military flights corresponding to GAT. Aviation search and rescue coordination center is in the competence of LGS as well. LGS is a client oriented company operating in the market economy circumstances and supplying all the air space users within the territory of the Republic of Latvia with services of equal quality in accordance with international standards. LGS main income source is air navigation charges for the provided services. LGS is not receiving financial support from the state budget and is one of the biggest tax payers in the Republic of Latvia. LGS is the only provider of air traffic services in Latvia. Being a company operating in a civil aviation sector LGS is controlled by the Ministry of Transport and supervised by the Civil Aviation Agency of Latvia (LCAA).
4 THE COMPANY STRUCTURE The only shareholder of LGS is the Ministry of Transport of the Republic of Latvia. The company is administered by the Executive Board in compliance with the legislative acts, statutes of the company and decisions of the shareholder. The Executive Board organizes the work of the company according to the international standards, recommendations and the International Civil Aviation Organization (ICAO) regulations. The company s monitoring is provided by the Council. BOARD OF LGS DĀVIDS TAURIŅŠ, CHAIRMAN OF THE BOARD ELMĀRS ŠVĒDE, BOARD MEMBER, responsible for the investments and the Technical Department ILZE ALEKSANDROVIČA, BOARD MEMBER, in charge of the Development Department IVETA VIRSE, BOARD MEMBER, responsible for the Administrative Department
5 THE COMPANY STRUCTURE COUNCIL OF THE LGS DINS MERIRANDS, CHAIRMAN OF THE COUNCIL EDMUNDS BEĻSKIS, MEMBER OF THE COUNCIL ZINTA ZĀLĪTE-RUKMANE, MEMBER OF THE COUNCIL The structure of the LGS has been through several changes in 2017 the Technical maintenance unit of the Technical Department has been disembodied and the stuff loads have been reorganized within the department, and two units have been merged in the Development Department Business planning and development unit and International co-operation co-ordination unit were merged into one Unit of the Strategic Planning.
6 COMPANY STRUCTURE COUNCIL (PA) ADVISORS TO THE BOARD, PRESS SECRETARY VP, VS EXECUTIVE BOARD (VA) QUALITY ASSURANCE DEPARTMENT KND Safety Division (DVN) Quality and Auditing Division (KV) AIR TRAFFIC MANAGEMENT DEPARTMENT GSV TECHNICAL DEPARTMENT TD ADMINISTRATIVE DEPARTMENT AD DEVELOPMENT DEPARTMENT ATD Air Traffic Control Center (GSVC) IT Unit (IT) Finance Unit (FN) Training Unit (MC) Aerodrome Control Center (TWR) ATRACC Unit (AC) Legal Unit (JN) Strategic Planning Unit (SPN) Riga Tower (TR) Radar Unit (RL) Procurement Unit (IEN) Liepaja Air Navigation Unit (LANG) Navigation Unit (RN) Infrastructure Unit (SN) Briefing (BRF) Electrical Power Unit (GE) Security Service (DD) Air Traffic Flow Management Division (LPVD) Communication Unit (TK) HR and Administrative Unit (PLN) Aeronautical Information Division (ANID) Meteorological Unit (MN) Air Space Management Cell (GTIVN) Building and Transport Unit (CT)
7 AIR TRAFFIC IN 2017 AND THE FINANCIAL KEY RATIOS flights were operated in 2017 within the Riga FIR, and that is for flights or 8.9% more than in The number of en-route flights has increased for 8.5%, but number of flights to/from Riga terminal has increased for 9.9%. The number of the planned flights has been increased for 8.6%. The main increase of the number of flights has been caused by rapid development of the national airline airbaltic and the International Airport Riga increasing the number of the passengers for 13% up to almost 6,1 million that eventually resulted in increase of the number of flights to/from Riga terminal for 9.9%. The overall economic growth and the traffic rise in the segment Russia-Europe for 14.6% are also to be mentioned important in comparison with the decline in 2015 and The most part of the income of LGS is related to the core business air navigation services and this number in 2017 rose for more than 3 million EUR reaching EUR EUR that is for 13.1% more than in The company management succeeded in balancing expenses being precise at fulfilling the plans of both European and local importance and made it possible to invest in the development of the company and 5,2 million EUR were invested into the share capital of the company. As a result, unaudited profit in the 2017 was EUR after taxes. The value of the assets was increased for EUR (11.4%) by the end of the year and reached EUR Complying the regulations of the European Union LGS has been released from dividends payment into the budged for the 2017 and the next two years to allowing to invest in development of the company. Unit rate of the LGS is of a competitive level with the neighboring countries terminal unit rate is 98,73 EUR and the en-route unite rate is 27,46 EUR.
8 TECHNICAL MODERNIZATION In 2017 LGS started a sketch design competition for the new ATC tower in Riga. The new tower shall be in operation on There are on-going works within the projects of the Performance Based Navigation (PBN) implementation in Riga FIR, modernization of the Controller-pilot data link communication (CPDLC) system. Co-operation with the International Airport Riga is continued within the project of the A-CDM. DataLink implementation of digital data transmission according to the EC regulations No. 310/2015 plays a very important role in the field of communications. An essential improvement of the service quality was made in by modernization of the Multilateration System in the Riga aerodrome increasing the number of sensors and updating central processing and transmission stations. A substantial investment in aviation meteorological services is the wind measurement system in 3D environment for measuring the wind velocity on high levels, the project that has been started on In 2017 LGS proceeded with modernization and enhancement of the automated air traffic control system (ATRACC). DIVOS 3 log voice recording system that records information from the ATCOs job stations and helps to investigate possible incidents was enhanced in 2017 as well. Enhancement of the LGS data center and several LGS support infrastructure improvements were realized in 2017 including Babīte Transmission center warehouse construction works and territory improvement.
9 INTERNATIONAL CO-OPERATION In 2017 LGS continued to participate in different international organizations as North European Functional Airspace Block (NEFAB) and Borealis Alliance. The 2nd part of the Free Route Airspace (FRA) was held out within the Borealis Alliance by successful implementation of the FRA in the air spaces of North European countries. Dāvids Tauriņš, CEO of LGS was elected as the Chairman of the CEO Board of the NEFAB Program. In 2017 LGS employees were delegated to carry out duties of a NEFAB Financial control and NFEAB coordinator. Our specialists are actively and on a high professional level carrying out duties of ICAO Air Traffic Management Group East (ATMGE) CEO and Aeronautical Information Management group secretary and our representative was a Deputy Head of the Route Development group (RDGE).
10 LGS QUALITY SYSTEM In 2017 LGS implemented a Business Management System and to improve the whole quality system of the company we have started to work on structural representation of the processes to obtain a detailed information on LGS functional systems and processes and fulfillment of the goals set. KPIs and goals of the LGS are defined by the RFP 2 for the reporting period To find out the clients opinion on the quality of services provided by LGS and to understand the needs of the parties involved, LGS organizes regular meetings with the partners national airline airbaltic, colleagues from the airport Riga, air space users, military structures, air navigation information providers and air navigation data receivers to discuss the most important issues on provision of air navigation services.
11 SAFE AIR TRAFFIC In the field of safety management during the report year the main goal of LGS was to improve the safety occurrences reporting, analysis, KPIs and safety indicators monitoring, support of NEFAB activities safety management and other activities. LGS safety management system is based on the approved LGS air navigation services safety policy according to the requirements of ICAO and European Union. In 2017 LGS safety management efficiency was assessed by the European Aviation Safety Agency (EASA) at Level C and the company s Just Culture was approved as well. LGS continued training and improvement of the professional skills of the safety personnel. Company provided risk identification and mitigation of the systems and changes in the procedures related to the ATC. 43 safety cases on assessment of the changes in systems were prepared. Exchange with the safety management data related to the operative stage was implemented and successfully used within the common projects of NEFAB and FRA/NEFRA.
12 HR POLICY AND WORKING ENVIRONMENT In 2017 LGS continued to carry out personnel policy anticipating an on-going growth and development of professional competencies. LGS has implemented and keeps maintaining a competitive remuneration and rewards system, safe and modern working conditions as well as social guaranties program. Besides the labor regulations defined by the state and local legislation acts LGS produces a Collective Agreement to provide its employees with benefits regarding the employment and social guaranties, labor safety and public health issues. By the end of the 2017 LGS employed 350 employees.
13 EDUCATED AND COMPETENT EMPLOYEES One of the basic guidelines of LGS personnel strategy is an educated and competent employee. LGS provides regular personnel training and maintenance of the professional skills in compliance with the Eurocontrol, ICAO, CAA, World Meteorological Organization (WMO) and local legislative acts and keeps ensuring regular development of the English language skills.
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