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Efficiency losses through fragmentation? Scale effects in European ANS provision

Author

Listed:
  • Thomas Standfuss

    (Technische Universität Dresden, Germany)

  • Frank Fichert

    (Worms University of Applied Sciences, Germany)

  • Michael Schultz

    (Technische Universität Dresden, Germany)

  • Petros Stratis

    (Ministry of Transport, Communication and Works, Cyprus)

Abstract

Fragmentation has been suspected of contributing to inefficiencies in the European Air Traffic Management (ATM) system. Heterogeneities between providers may contain multiple aspects, such as airspace structure, staff rostering, or systems used for flow management. Applying the scientific approach of data envelopment analysis, this article provides a new outlook on the relationship between airspace fragmentation and efficiency in the admittedly complex and highly dynamic environment of European ATM. We show that there are airspaces that might benefit from economies of scale, but that there is a tipping point where diseconomies of scale occur. Subsequently, the current approach of functional airspace blocks might inhere inefficiencies for some air navigation service providers.

Suggested Citation

  • Thomas Standfuss & Frank Fichert & Michael Schultz & Petros Stratis, 2019. "Efficiency losses through fragmentation? Scale effects in European ANS provision," Competition and Regulation in Network Industries, , vol. 20(4), pages 275-289, December.
    • Handle: RePEc:sae:crnind:v:20:y:2019:i:4:p:275-289
    DOI: 10.1177/1783591719866047
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    References listed on IDEAS

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    Cited by:

    1. Thomas Standfuss & Georg Hirte & Michael Schultz & Hartmut Fricke, 2023. "Efficiency in European Air Traffic Management -- A Fundamental Analysis of Data, Models, and Methods," Papers 2302.07525, arXiv.org.

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