Efficiency losses through fragmentation? Scale effects in European ANS provision

Thomas Standfuss, Frank Fichert, Michael Schultz and Petros Stratis
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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

Competition and Regulation in Network Industries, 2019, vol. 20, issue 4, 275-289

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.

Keywords: ATM; ATC; fragmentation; airspace structure; scale effects (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:crnind:v:20:y:2019:i:4:p:275-289

DOI: 10.1177/1783591719866047

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