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An assessment of delivery changes for UK terminal air navigation services

Author

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  • Thompson, Ian
  • Pech, Richard
  • Oh, Kok Boon
  • Marjoribanks, Timothy

Abstract

In order to meet government contestability policy ambitions, the United Kingdom Civil Aviation Authority (CAA) has undertaken a range of initiatives to create a competitive market for terminal air navigation services (TANS). This paper examines the critical dynamics underlying recent TANS service delivery changes at the nine United Kingdom airports that fall within the Single European Sky performance scheme (SES) using industry data and Porter's five forces model. Interviews with CAA, NATS and airport operators, along with publically available material, are used to explore the various elements impacting competition for TANS at these airports. Competition is intense among a very small number of companies. In addition to optimizing service cost, airport operators require greater value for money including alignment to strategic-operational goals, closer integration with other airside functions and payment structures that are performance based. Gatwick and Birmingham airports changed service provisions due to concerns about the value for money proposition offered by NATS Services Ltd (NSL). This paper also illustrates how competition has changed the customer orientation of NSL. It has been forced to evolve quickly from an expensive, perceived as somewhat arrogant, organisation to one that must be capable of aligning to the cost and service requirements of its customers. Importantly for the ATM industry this paper provides evidence that competition drives lower service costs and provides greater value for money for airlines and airport operators.

Suggested Citation

  • Thompson, Ian & Pech, Richard & Oh, Kok Boon & Marjoribanks, Timothy, 2016. "An assessment of delivery changes for UK terminal air navigation services," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 155-167.
    • Handle: RePEc:eee:jaitra:v:57:y:2016:i:c:p:155-167
    DOI: 10.1016/j.jairtraman.2016.07.016
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    References listed on IDEAS

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    Cited by:

    1. Blondiau, Thomas & Glazer, Amihai & Proost, Stef, 2018. "Air traffic control regulation with union bargaining in Europe 11This paper presents results of the ACCHANGE consortium – SESAR project E02.31 – whose support we gratefully acknowledge. We thank the g," Economics of Transportation, Elsevier, vol. 13(C), pages 48-60.
    2. Arblaster, Margaret & Zhang, Chrystal, 2020. "Liberalisation of airport air traffic control: A case study of Spain," Transport Policy, Elsevier, vol. 91(C), pages 38-47.

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