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Business models for flight-centric air traffic control

Author

Listed:
  • Engin Zeki
  • Paula Leal de Matos
  • Kirsteen Purves
  • Marco Gibellini

Abstract

This article explores the impact that flight-centric air traffic control (ATC), a concept under development, has on ATC market structure and ATC business models. Flight-centric operations bring forth changes in how the stakeholders adapt their roles to the emerging ATC market. We compared current ATC and market structures with the emerging flight-centric concept and analyzed the market changes in structure and competition from the emergence of flight-centric operations using Porter’s five forces model. Four potential business models for flight-centric ATC are identified and described: current air navigation service providers adapt, vertical integration by airlines, new ATC providers, and the network manager as capacity-demand manager. In the final chapter, we briefly describe the future regulation of the market for flight-centric operations. We conclude that new concepts and technologies, such as flight-centric operations, create the necessary dynamics for change in the current market structure by unbundling of the market.

Suggested Citation

  • Engin Zeki & Paula Leal de Matos & Kirsteen Purves & Marco Gibellini, 2019. "Business models for flight-centric air traffic control," Competition and Regulation in Network Industries, , vol. 20(4), pages 319-332, December.
    • Handle: RePEc:sae:crnind:v:20:y:2019:i:4:p:319-332
    DOI: 10.1177/1783591719881990
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    References listed on IDEAS

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    1. Blondiau, Thomas & Delhaye, Eef & Proost, Stef & Adler, Nicole, 2016. "ACCHANGE: Building economic models to analyse the performance of air navigation service providers," Journal of Air Transport Management, Elsevier, vol. 56(PA), pages 19-27.
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