Business models for flight-centric air traffic control

Engin Zeki, Paula Leal de Matos, Kirsteen Purves and Marco Gibellini

Competition and Regulation in Network Industries, 2019, vol. 20, issue 4, 319-332

Abstract: This article explores the impact that flight-centric air traffic control (ATC), a concept under development, has on ATC market structure and ATC business models. Flight-centric operations bring forth changes in how the stakeholders adapt their roles to the emerging ATC market. We compared current ATC and market structures with the emerging flight-centric concept and analyzed the market changes in structure and competition from the emergence of flight-centric operations using Porter’s five forces model. Four potential business models for flight-centric ATC are identified and described: current air navigation service providers adapt, vertical integration by airlines, new ATC providers, and the network manager as capacity-demand manager. In the final chapter, we briefly describe the future regulation of the market for flight-centric operations. We conclude that new concepts and technologies, such as flight-centric operations, create the necessary dynamics for change in the current market structure by unbundling of the market.

Keywords: Flight-centric operations; sector-less; business models; market structure; Porter’s analysis; policy implications (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:crnind:v:20:y:2019:i:4:p:319-332

DOI: 10.1177/1783591719881990

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