Abstract This research develops an economic public utility model to analyse the effects of the Single European Sky performance regulation on Air Traffic Control performance. We investigate incentives for air navigation service providers through the development of a high level economic model. This allows us to assess impacts at a strategic level and derive high-level results. The economic model provides insight into the mechanisms through which regulation can drive air traffic management performance improvements, as well as its limitations. Our model fits within the traditional theory of regulation often applied to public monopolies, originally developed by Laffont & Tirole. We complement theoretical derivations with a numerical illustration. We quantify the identified effects for a single, representative ANSP in Europe.
Highlights An economic model applied to the European ATM context that delivers high-level strategic messages. A numerical illustration using ANSP performance data to quantify the importance of the incentive effects. An analysis of performance incentives with respect to cost-efficiency and quality of service. An analysis of regulatory effects on technology adoption incentives.
ACCHANGE: Building economic models to analyse the performance of air navigation service providers
Journal of Air Transport Management ; 56 ; 19-27
2016-02-04
9 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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