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A cost-efficiency analysis of European air navigation service providers

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  • Dempsey-Brench, Zara
  • Volta, Nicola

Abstract

Air Navigation Service Providers (ANSPs) as the third major component of the aviation industry have been less of a focus in research than their airline and airport counterparts. In this paper we analyse European ANSPs cost structures using a stochastic frontier analysis approach within a Bayesian estimation framework in order to incorporate regularity conditions. Our results show that ownership is not directly impacting neither the ANSPs cost structures nor their cost efficiencies and that the European ANSPs are operating on the increasing return to scale part of the technology, hence supporting the choice of ANSPs agglomeration.

Suggested Citation

  • Dempsey-Brench, Zara & Volta, Nicola, 2018. "A cost-efficiency analysis of European air navigation service providers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 11-23.
    • Handle: RePEc:eee:transa:v:111:y:2018:i:c:p:11-23
    DOI: 10.1016/j.tra.2018.02.019
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    Cited by:

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    2. 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).
    3. 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.
    4. Alberto Ansuategi & Ibon Galarraga & Luis Orea & Thomas Standfuss, 2019. "Analysis of cost-effectiveness in the provision of air navigation services at functional air blocks," Competition and Regulation in Network Industries, , vol. 20(4), pages 305-318, December.
    5. Buyle, Sven & Dewulf, Wouter & Kupfer, Franziska & Onghena, Evy & Meersman, Hilde & Van de Voorde, Eddy, 2020. "Does ANSP size and scope matter in the European ANS market? A multi-product stochastic frontier approach," Journal of Air Transport Management, Elsevier, vol. 83(C).
    6. 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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