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Motivating air navigation service provider performance

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  • Adler, Nicole
  • Delhaye, Eef
  • Kivel, Adit
  • Proost, Stef

Abstract

The ownership form of Air Navigation Service Providers varies across countries, ranging from state agencies belonging to the Department of Transport, to government-owned corporations, to semi-private firms with for-profit or not-for-profit mandates. This research focusses on the link between the performance of ANSPs and their ownership form. Economic theory suggests that effort to achieve cost efficiency will be higher in the case of public companies with a board of stakeholders composed of airspace users and in the case of private companies with-stakeholders that are also shareholders. A stochastic frontier analysis estimation of the production and cost functions of 37 European air navigation service providers over nine years suggests that the public-private ownership form with stakeholder involvement achieves statistically significantly higher productive and cost efficient en-route levels compared to either a government corporation or a state agency. We also find substantial levels of inefficiency across the European air traffic control market.

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  • Adler, Nicole & Delhaye, Eef & Kivel, Adit & Proost, Stef, 2020. "Motivating air navigation service provider performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 1053-1069.
    • Handle: RePEc:eee:transa:v:132:y:2020:i:c:p:1053-1069
    DOI: 10.1016/j.tra.2019.12.014
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    1. Nicole Adler & Eran Hanany & Stef Proost, 2022. "Competition in Congested Service Networks with Application to Air Traffic Control Provision in Europe," Management Science, INFORMS, vol. 68(4), pages 2751-2784, April.
    2. Decker, Christopher & Chiambaretto, Paul, 2022. "Economic policy choices and trade-offs for Unmanned aircraft systems Traffic Management (UTM): Insights from Europe and the United States," Transportation Research Part A: Policy and Practice, Elsevier, vol. 157(C), pages 40-58.
    3. van der Loo, Saskia & Heyndrickx, Christophe & Delhaye, Eef, 2023. "Split incentive problem in the uptake of new ATM technology," Journal of Air Transport Management, Elsevier, vol. 108(C).
    4. Buyle, Sven & Dewulf, Wouter & Kupfer, Franziska & Onghena, Evy & Meersman, Hilde & Van de Voorde, Eddy, 2021. "From traditional to professional Air Navigation Service Provider: A typology of European ANSP business models," Journal of Air Transport Management, Elsevier, vol. 91(C).

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