An appetite to compete

Europe is a patchwork of markets in ATM service provision. The question is: which market structure is most favourable to increasing the performance of ATM, including airports? The answer is a complex one that partners in the COMPAIR project addressed. Partners in the project looked at a number of options that could increase competition, including performance regulation with variations in ownership and governance models, tender of licenses for en-route air traffic services, and flight centric, sector-less operations. The project also analysed the effects of unbundling the terminal control in Sweden, UK, Spain and Germany (at mostly regional airports).

The models applied by the project suggest that introducing competition in the market via outsourcing service provision may lead to a reduction in charges by up to half the current levels. It also showed that open tendering is likely to lead to a defragmentation of the system as companies tend to win more than one tender. The results suggest that with these options a maximum allowed market share of 40% can ensure sufficient competition. Competition of this nature will determine the uptake of new technologies and enable a high performing ATM system.

Benefits

Increased efficiency of service provision

Increased technology uptake

Decreased fragmentation for some of the considered scenarios