Evolution of air navigation service provider business models within the single European sky

Air navigation service providers (ANSPs) are an essential part of the air transport value chain. The growth in air traffic, fragmentation of airspace, the environmental impact of aviation and the development of new disruptive technologies challenge the current setting of the European air navigation services (ANS) industry. The policy answer to these challenges is found in the Single European Sky (SES) initiative of the European Commission. This initiative increases the pressure on ANSP cost and revenue structures and plans to introduce more competition in the current geographical monopolistic market setting. This doctoral research determines how existing European ANSP business models can evolve to respond to increased competition and technological challenges induced by the SES initiative. To do so, it assesses the existence of economies of scale and cost complementarities in the exploitation of ANS, analyses the consequences of possible consolidation and links ANSP business models with ANSP performance. The results suggest that it are mainly the smaller and Eastern European ANSPs that produced at economies of scale in the period from 2006 to 2016. This implies that most of the functional airspace blocks (FABs) are unable to generate cost savings other than those that could be achieved via improvements in cost efficiency. Certain other merger scenarios, however, could lead to significant cost savings. The results furthermore suggest that ANSPs can profit from increasing their level of corporatisation and outsourcing, anchoring their business locally by setting up close collaborations with local airlines and airports and should invest in and gain experience with new technologies to build a competitive advantage in a liberalised ANS market.

ISBN:978-90-5728-663-6

Jaar van publicatie:2020

Trefwoorden:Doctoral thesis

Toegankelijkheid:Open