Is European benchmarking methodology favouring a narrow segment of air navigation service providers?

Grebenšek, Andrej; Magister, Tone

doi:10.1016/j.jairtraman.2012.11.007

Cited by 6 publications

(3 citation statements)

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“…In this way, we increase the flexibility of our model, since we do not impose a fixed factor of substitution between the outputs, but we leave to the non-parametric model to calibrate the efficiency frontier. On a related matter, Grebenšek and Magister (2013) suggest that the use of composite flight hours, as calculated by EUROCONTROL, is a possible source of bias in ANSP benchmarking exercises. Table 3 presents the individual ANSP efficiency scores for 2010.…”

Section: Resultsmentioning

confidence: 99%

Cost-efficiency benchmarking of European air navigation service providers

Bilotkach

Gitto

Jovanović

et al. 2015

Transportation Research Part A: Policy and Practice

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Section: Resultsmentioning

confidence: 99%

Cost-efficiency benchmarking of European air navigation service providers

Bilotkach

Gitto

Jovanović

et al. 2015

Transportation Research Part A: Policy and Practice

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“…This issue is in most papers solved by using a consolidated product index: composite flight hours, a weighted sum of instrumental flight rules (IFR) airport movements controlled and en-route flight hours controlled. However, as Grebensek and Magister (2013) and also Standfuß et al (2018) suggest, the use of composite flight hours might bias efficiency benchmarking results. COM-PAIR (2017) estimates a cost function for each output, which requires distinguishing costs connected to terminal services from costs related to en-route services.…”

Section: Literature Reviewmentioning

confidence: 99%

Does ANSP size and scope matter in the European ANS market? A multi-product stochastic frontier approach

Buyle

Dewulf

Kupfer

et al. 2020

Journal of Air Transport Management

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This paper assesses the existence of economies of scale and cost complementarities in the European air navigation services (ANS) industry to provide policymakers and air navigation service providers (ANSPs) insight into the economic viability of possible industry-led consolidation and unbundling opportunities. While previous studies using parametric methods made abstraction of the multi-product nature of the ANS industry, this paper tries to fill that gap by estimating a stochastic multi-product translog cost frontier. The existence of economies of density and scale is evaluated from the estimated cost frontier at the sample means as well as for individual ANSPs in the panel. The results suggest that during the period from 2006 to 2016 the European ANS industry faced economies of density and produced at constant economies of scale in the sample means. However, cost complementarities do not seem to be present.

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“…However, despite being widely used in Europe e.g. Button and Neiva (2013), the validity of this framework was questioned by Grebenšek and Magister (2013), who showed that the methodology tends to over-estimate productivity for busy ATC centres.…”

Section: Previous Research On Atc Cost-efficiencymentioning

confidence: 99%

Framework to Assess an Area Control Centre's Operating Cost-efficiency: a Case Study

et al. 2015

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Cost-efficiency is a crucial Key Performance Area (KPA) in today's Air Traffic Management (ATM) system. Traditionally, research has mainly focused on the airport domain, with little attention being paid to the operating cost-efficiency of Area Control Centres (ACCs). This paper addresses this shortcoming and develops a framework to assess the cost-efficiency of an ACC from an operational perspective. It investigates how the resources of an ACC are managed, from the start of the planning process to the day of operation. The framework develops new metrics to assess an ACC's performance. A case study is carried out on the Maastricht Upper Area Control (MUAC) centre. Results show that, despite being one of the most advanced ACCs in Europe, the human workforce is operating at only approximately 50% of their full capabilities.

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Is European benchmarking methodology favouring a narrow segment of air navigation service providers?

Cited by 6 publications

References 0 publications

Cost-efficiency benchmarking of European air navigation service providers

Cost-efficiency benchmarking of European air navigation service providers

Does ANSP size and scope matter in the European ANS market? A multi-product stochastic frontier approach

Framework to Assess an Area Control Centre's Operating Cost-efficiency: a Case Study

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