Commercializing Air Traffic Control: Have the Reforms Worked?

Abstract

Air Navigation Service Providers (ANSPs) play a critical role in the operation of a modern economy. Many countries have restructured their ANSPs by granting managerial and financial autonomy, and creating new mechanisms for regulation and accountability to major consumers of air navigation services. These reforms have exemplified principles often associated with the New Public Management. The United States is the major exception to this international trend. Commercialization has allowed significant improvements in service quality without substantial increases in cost of service, or erosion of safety standards. Other public interest considerations have also been protected. These performance benefits can be attributed to key decisions on the governance of new ANS organizations.

Keywords: commercialization, privatization, air navigation service providers, air traffic control, New Public Management