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 6: Air navigation services provision across the globe

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

Extract

While in the US the air navigation services system is still operated by the government and financed by taxation, most of the developed world has now moved into some form of commercialised provision of air navigation services. This chapter will provide a brief history of the air navigation service providers (ANSPs) in a number of countries that have experimented with commercialisation. Additionally, although not being commercialised, the cases of China and France are explored due to their relevance. Multi-country agreements such as L'Agence pour la Sécurité de la Navigation aérienne en Afrique et à Madagascar (ASECNA), Corporación Centroamericana de Servicios de Navegación Aérea (COCESNA) and the Single European Sky (SES) initiative are also discussed. Some examples of the user fees paid by commercial airlines in some of these countries are also included. Until the late 1980s, air navigation services in Australia were provided by the national government. Since the 1920s the ANSP had moved through a number of agencies as successive governments restructured, finally landing in the Department of Transport and Communications in 1987. Shortly after, in 1988, the first commercialisation effort took place, with the creation of the Civil Aviation Authority, a government corporation that was responsible for both the provision of air navigation services and the safety regulation of the aviation industry (including air navigation services) in Australia. In 1990, domestic passenger airlines were deregulated, and the duopoly of the two existing airlines (the Two Airline Policy), Ansett Airlines and Australian Airlines, was eliminated.

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