Motivating air navigation service provider performance

Nicole Adler, Eef Delhaye, Adit Kivel and Stef Proost

No 601932, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

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.

Date: 2017-12
New Economics Papers: this item is included in nep-reg and nep-tre
Note: paper number DPS 17.17
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Published in Department of Economis. Discussion paper series,, pages 1-33

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Journal Article: Motivating air navigation service provider performance (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:601932

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