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mental considerations play a central rolein this work.At all LFV airports, commercialaspects were a priority during 2007. Dueto heavy demand, the focus at Stockholm-ArlandaAirport during the yearwas on capacity growth in essentiallyall areas, including office space, hotels,cargo, retail shops and services. Developmentwork takes place in collaborationwith Amsterdam Airport Schipholthrough the jointly owned companyArlanda Schiphol Development CompanyAB (ASDC). This company isresponsible for the commercial developmentof shops, restaurants and serviceestablishments.Advertising sales increased during2007, largely due to favourable economicconditions. During the year, LFV workedto coordinate certain advertising effortsbetween airports, which elicited a positiveresponse from advertisers.The airports outside Stockholm workon the basis of a business model calledABC (see the box below). All work, allactivities and all changes carried out atthe airports are performed within theframework of this model.As for commercial products, a largenumber of activities of varying sizes wereimplemented during the year. KarlstadAirport served as a test airport for developingnew commercial concepts which,if they prove successful, may be implementedat other airports. At Malmö Airport,a unique terminal concept − with acommon terminal for both domestic andinternational passengers − is creatingnew opportunities to develop shops andrestaurants, which was also done duringthe year.LFV creates easier travelIn recent years a higher number of passengers,combined with such changes astighter security requirements, has createdmajor challenges at a number ofLFV’s airports. During 2007 LFV workedintensively to make the airport experience,as well as travel to and from airports,as smooth as possible.Accessibility issues are important at allairports. Stockholm-Arlanda Airportneeds well functioning areas for thosewho need to travel to the airport by car.By improving other ground transport tothe airport, Stockholm-Arlanda is workingactively to reduce the number ofpassengers who need to arrive by car.During 2007 this resulted in a largelyunchanged number of cars parked, at thesame time as the number of passengersincreased by 2 per cent. This is entirelyconsistent with the environmental targetsthat LFV has established.During 2007, LFV decided to expandTerminal 5 at Stockholm-Arlanda Airportby directly connecting the old terminalwith Pier F. The building will becompleted in 2009 and will offer 4,500square metres of space for shops, restaurantsand services plus a larger securityscreening point on two levels.Stockholm-Bromma Airportimproved the capacity of its securityscreening point, among other things.During 2007 Karlstad Airport inau-ABC – business model for LFV’s airports outside StockholmAttractive AirportA focus on making airports attractive meeting places and increasing non-aviation-relatedrevenue.Basic AirportA focus on running as efficient an airport operation as possible, which amongother things means that every employee has several different job assignments.Breakdown of Group commercial productrevenue, 2007Real estate products 38% (39%)Advertising 3% (3%)Ground handling 11% (12%)Miscellaneous 24% (22%)Car parking incl.bus fee 24% (24%)Connecting AirportA focus on actively searching for collaboration and business partners in orderto market regions and improve airline services.Commercial operationsCommercial operations offer services to travellers and generate a financial surplusthat makes it possible to maintain lower prices for airport operations products.Trend by product categorySales, SEK M2007 2006Real estateLFV’s largest commercial business is real estate products, which have the highest sales. In many cases,LFV applies sales-based rents, which means that LFV shares financial risks with tenants. 824 809Car parking etc.Car parking is an important activity, enabling airports to serve as hubs in the transport system.Air traffic growth during 2007 led to an increase in both sales and profit. 518 487Other commercial productsIn recent years, advertising products have had diminishing profitability due to tough competition with other media, but during2007 the trend reversed. Among other products with favourable growth were conference operations at Stockholm-ArlandaAirport, ground handling and aircraft parking.812 753LFV’s airports > LFV 2007