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Motivating air navigation service provider performance

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

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. A theoretical economic model 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 in which stakeholders 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 achieves statistically significantly higher cost and productive efficiency levels compared to either a government corporation or a state agency.

Suggested Citation

  • Nicole Adler & Eef Delhaye & Adit Kivel & Stef Proost, 2017. "Motivating air navigation service provider performance," Working Papers of Department of Economics, Leuven 601932, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:601932
    Note: paper number DPS 17.17
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. 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.
    3. 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.
    4. 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).

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