Institutional Reform of Air Navigation Service Providers

Institutional Reform of Air Navigation Service Providers

A Historical and Economic Perspective

Transport Economics, Management and Policy series

Institutional Reform of Air Navigation Service Providers deals with the changes that have taken place in this major, technologically progressive industry as many countries moved away from direct provision by the government to forms of corporate or private provision. The author provides an up-to-date institutional and economic analysis of air navigation service providers’ efforts to reform their governance and funding structures under these changes.

Chapter 4: ANSP commercialisation

Subjects: economics and finance, transport, innovation and technology, organisational innovation


This chapter discusses the efforts to commercialise air navigation service providers that have been ongoing around the world since the late 1980s. This is a crucial theme in the context of this book. These changes have been brought about because of the changes in regulatory thinking outlined in the previous chapters, and the following chapters all deal with the issue. This chapter presents an overview of commercialisation issues, while Chapters 5 and 6 will discuss in more detail the situation in the US and the rest of the world, respectively. A review of the literature of air navigation service provider (ANSP) performance and on reform efforts is also included in this chapter. Similar to the case of airports, although at a much slower pace, ANSPs also began a transition in the 1980s towards different forms of regulation and ownership. Also like airports, ANSPs had traditionally been operated directly by governments, which under the Chicago Convention have sovereignty over the airspace in their territory and the responsibility, ‘so far as it may find practicable’ (Article 28), to ensure that the airspace is served by air traffic control. Although they were traditionally directly provided by national government, air navigation services could be delegated to other entities. For example, Canada gave the monopoly to a private corporation, and some countries in Europe delegated that responsibility to EUROCONTROL, a supranational authority.

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