Commercialisation of Air Navigation Service Providers – Evidence from Europe
Abstract
This paper deals with the on-going process of commercialisation of air navigation service providers (ANSPs) with specific focus on Europe. First part offers overview of conducted research on their commercialisation and identifies two main external drivers for the emergence of commercialisation – liberalisation of national markets and demand for other ANS related services. Our research also proposes methodology for numerical assessment of the degree of commercialisation based on the ANSP’s Commercialisation Index (ACI) and presents numerical evaluation of the ACI index of 35 European providers and proposes six different categories of providers reflecting different degree of their commercialisation. Results reveal that 63% of the European ANSPs show signs of commercialisation. On top of that, our outcomes prove that corporatisation cannot be considered a direct manifestation of commercialisation. Despite the most widely accepted view that corporatised providers are commercially active, the findings show that almost 40% of corporatised European ANSPs are not commercially active. The paper also claims that ownership of subsidiaries and joint ventures is the most dominant demonstration of commercialisation. At the same time, our outcomes show that the provision and development of commercial services and products related to ANS are the most common commercial activities of the European ANSPs.
References
Majumdar A. Commercializing and restructuring air traffic control: A review of the experience and issues involved. Journal of Air Transport Management. 1995;2(2): 112-122. DOI: 10.1016/0969-6997(96)00004-X
Golaszewski R. Reforming air traffic control: An assessment from the American perspective. Journal of Air Transport Management. 2002;8(1): 3-11. DOI: 10.1016/S0969-6997(01)00018-7
Goodliffe M. The new UK model for air traffic services - A public private partnership under economic regulation. Journal of Air Transport Management. 2002;8(1): 13-18. DOI: 10.1016/S0969-6997(01)00029-1
Button K, McDougall G. Institutional and structure changes in air navigation service-providing organizations. Journal of Air Transport Management. 2006;12(5): 236-252. DOI: 10.1016/j.jairtraman.2006.07.001
Dempsey PS, et al. The Mcgill Report on Governance of Commercialized Air Navigation Services. Annals of Air and Space Law. 2006;31: 136. Available from: https://ssrn.com/abstract=2699287 [Accessed 14th June 2021].
Steuer M. The partially private UK system for air traffic control. Journal of Air Transport Management. 2010;16(1): 26-35. DOI: 10.1016/j.jairtraman.2009.07.011
McDougall G, Roberts AS. Commercializing Air Traffic Control: Have the Reforms Worked? Canadian Public Administration. 2007;51(1): 45-69. DOI: 10.1111/j.1754-7121.2008.00004.x
Jones A, Guthrie J. Protecting 'Public Interest' in Modernised Skies. In: The 5TH International Conference on Accounting, Auditing & Management in Public Sector Reforms, 3-5 September 2008, Amsterdam, Netherlands; 2009. p. 31. Available from: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1358703 [Accessed 14th March 2021].
Novák A, Pitor J. Flight inspection of instrument landing system. In: 2011 IEEE Forum on Integrated and Sustainable Transportation Systems, FISTS 2011, 29 June-1 July 2011, Vienna, Austria; 2011. p. 329-332. DOI: 10.1109/FISTS.2011.5973617
Novák A. Wind farms and aviation. Aviation. 2009;13(2): 56-59. DOI: 10.3846/1648-7788.2009.13.56-59
Tomová A. The need for new directions in airspace economics: Seventy years after Chicago. Journal of Air Transport Management. 2015;44-45: 1-7. DOI: 10.1016/j.jairtraman.2015.01.005
Tomová A. Are commercial revenues important to today's European air navigation service providers Journal of Air Transport Management. 2016;54: 80-87. DOI: 10.1016/j.jairtraman.2016.03.023
Tomová A. Two businesses of air navigation service providers: The case study of NATS. Transportation Research Procedia. 2017;28: 99-105. DOI: 10.1016/j.trpro.2017.12.173
Bartoš M, Badánik B. Competitive challenges facing the air navigation services in Europe. AEROjournal. 2019;2: 19-24. DOI: 26552/aer.C.2019.2
Dempsey-Brench Z, Volta N. A cost-efficiency analysis of European air navigation service providers. Transportation Research Part A: Policy and Practice. 2018;111: 11-12. DOI: 10.1016/j.tra.2018.02.019
Buyle S, Dewulf W, Kupfer F, Onghena E, Meersman H, de Voorde EV. From traditional to professional Air Navigation Service Provider: A typology of European ANSP business models. Journal of Air Transport Management. 2021;91. DOI: 10.1016/j.jairtraman.2020.102006
Wirsamulia F. Comercialization of Airnav Indonesia as Air Navigation Provider: Is it beneficial? Jurnal Media Hukum. 2019;27(1): 133-146. DOI: 10.18196/jmh.2020014
ICAO. Case Studies on Commercialization, Privatization and Economic Oversight of Airports and Air Navigation Services Providers (ANSPs). International Civil Aviation Organization; 2013. Available from: https://www.icao.int/sustainability/pages/Eap_ER_Databases_CaseStudies_ANSPs.aspx [Accessed 6th June 2021].
IATA. Commercialisation of Air Navigation Service Providers. International Air Transport Association; 2011. Available from: https://www.iata.org/contentassets/4eae6e82b7b948b58370eb6413bd8d88/commercialisation-ansps.pdf [Accessed 5th June 2021].
ATM Policy Institute. The case for liberalising air traffic control. The ATM Policy Institute; 2017. Available from: https://www.atmpolicy.aero/2017/01/27/the-case-for-liberalising-air-traffic-control/ [Accessed 7th June 2021].
Benderli G, Smith P. Could Air Traffic Management learn from other network industries? Association for European Transport; 2006. Available from: https://www.researchgate.net/publication/237552859_COULD_AIR_TRAFFIC_MANAGEMENT_LEARN_FROM_OTHER_NETWORK_INDUSTRIES [Accessed 14th June 2021].
McMillan D. Cleared for take off. Airspace 39. 2017;4. Available from: https://issuu.com/canso/docs/airspace_39_quarter_4__2017_150dpi_ [Accessed 7th June 2021].
HELIOS. Study into Air Navigation Services to be opened to competition in Norway: Part 1. HELIOS; 2015. Available from: https://www.regjeringen.no/contentassets/991dbf53e1b74ccea64a4d37331c5574/study-into-air-navigation-services-to-be-opened-to-competition-in-norway-final-report-part-1.pdf [Accessed 14th June 2021].
HELIOS. Study into Air Navigation Services to be opened to competition in Norway: Part 2. HELIOS; 2016. Available from: https://www.regjeringen.no/contentassets/54ed74c1221a4a4c8a46ee74b84bc393/study-into-air-navigation-services-to-be-opened-to-competition-in-norway-final-report-part-2.pdf [Accessed 14th June 2021].
Materna M, Galierková A. A new approach to classification of air navigation service providers in the context of commercialization. In: Transportation Research Procedia 43, 8th International Conference on Air Transport, INAIR 2019, 12-13 November 2019, Hainburg an der Donau, Austria; 2019. p. 139-146. DOI: 10.1016/j.trpro.2019.12.028
Materna M. Variants of air navigation service providers’ business models. In: Transportation Research Procedia 40, 13th International Scientific Conference on Sustain able, Modern and Safe Transport, TRANSCOM 2019, 29-31 May 2019, Vysoké Tatry, Slovakia; 2019. p. 1127-1133. DOI: 10.1016/j.trpro.2019.07.157
Materna M, Galieriková A, Palčák M. Reflection of commercialization in organizational and ownership structure of Deutsche Flugsicherung GmbH (DFS). In: Transportation Research Procedia 51, 9th International Conference on Air Transport, INAIR 2020, 4-5 November 2020, Žilina, Slovakia; 2020. p. 283-292. DOI: 10.1016/j.trpro.2020.11.031
Copyright (c) 2021 Matúš Materna, Benedikt Badánik, Alena Novák Sedláčková, Andrea Maternová
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
