Efficiency losses through fragmentation? Scale effects in European ANS provision

2019 ◽  
Vol 20 (4) ◽  
pp. 275-289
Author(s):  
Thomas Standfuss ◽  
Frank Fichert ◽  
Michael Schultz ◽  
Petros Stratis
Keyword(s):  
Traffic Management ◽  
Economies Of Scale ◽  
Service Providers ◽  
Scale Effects ◽  
Dynamic Environment ◽  
Air Traffic Management ◽  
Current Approach ◽  
Data Envelopment ◽  
Navigation Service ◽  
The Relationship

Fragmentation has been suspected of contributing to inefficiencies in the European Air Traffic Management (ATM) system. Heterogeneities between providers may contain multiple aspects, such as airspace structure, staff rostering, or systems used for flow management. Applying the scientific approach of data envelopment analysis, this article provides a new outlook on the relationship between airspace fragmentation and efficiency in the admittedly complex and highly dynamic environment of European ATM. We show that there are airspaces that might benefit from economies of scale, but that there is a tipping point where diseconomies of scale occur. Subsequently, the current approach of functional airspace blocks might inhere inefficiencies for some air navigation service providers.

Analysis of cost-effectiveness in the provision of air navigation services at functional air blocks

2019 ◽  
Vol 20 (4) ◽  
pp. 305-318
Author(s):  
Alberto Ansuategi ◽  
Ibon Galarraga ◽  
Luis Orea ◽  
Thomas Standfuss
Keyword(s):  
Cost Effectiveness ◽  
Traffic Management ◽  
Economies Of Scale ◽  
Stochastic Frontier Analysis ◽  
Service Providers ◽  
Stochastic Frontier ◽  
Fundamental Aspect ◽  
Frontier Analysis ◽  
Navigation Service ◽  
The Cost

The Single European Sky (SES) legislation is intended to have a major impact on the fragmentation in the European Air Traffic Management and Communications, Navigation and Surveillance (ATM/CNS) system. A fundamental aspect of the SES initiative is functional airspace blocks (FABs), which have the goal of reducing the inefficiencies—in terms of safety, capacity, and cost—that result from the fragmentation of European airspace. FABs are seen as an explicit bottom-up first step toward the ultimate integration of European airspace. In this article, we focus on the analysis of the evolution of the cost-effectiveness in the provision of ATM/CNS services at FABs. We proceed in two stages. First, we develop a theoretical framework that allows us to decompose the change in cost-effectiveness of FABs into its basic sources. Second, we use stochastic frontier analysis techniques to estimate the cost equations and decompose the change in the cost-effectiveness of the nine European FABs into several components. Our analysis sheds light on (1) the drivers of changes in the air navigation service providers (ANSPs) and FABs cost-effectiveness from 2006 to 2016, (2) the role that FABs play in enhancing cooperation between ANSPs to obtain operational efficiency gains, and (3) the existence of economies of scale in the European ATM/CNS service provision.

scholarly journals Research of information space and information flows of air navigation service providers

2020 ◽  
Vol 69 (2) ◽  
Author(s):  
V. I. Chernysh ◽  
Keyword(s):  
Information Security ◽  
Traffic Management ◽  
Management System ◽  
Service Providers ◽  
Air Traffic Management ◽  
Air Traffic ◽  
Security Threats ◽  
Telecommunication Systems ◽  
Traffic Management System ◽  
Navigation Service

The threat to information security for the air navigation service providers represents a potential violation of information security of the information infrastructure elements in the air traffic management system such as communications, navigation and surveillance equipment, and the information and telecommunication systems. Typically, a threat results from the presence of vulnerable components in the protection of information technology as part of air navigation service providers activity. Generally, threats to information and communication systems include equipment failure, environmental destruction, human or machine errors, and targeted attacks, which are often complex, well-organized, and well-funded. Taking into account, information and telecommunication systems of air navigation service providers are critical resource that must be protected from external and internal threats. Information and telecommunication systems of air navigation services providers are a combination of information and telecommunication systems, in the process of processing air navigation information act as a whole. The realization of information security threats in information and telecommunication systems may adversely affect the provision of safety and air traffic management security. As a result of information security threats realization, incidents or accidents in the air traffic management system can be occurred. The paper proposes functional models of information space and information flows in the provision of air navigation service. The developed models are recommended for use in the process of security risk management in air traffic management within the new generation risk management system, as a necessary part of air navigation service provider integrated management system.

Effects of fragmentation on route charges

2019 ◽  
Vol 20 (4) ◽  
pp. 290-304
Author(s):  
Goran Pavlović ◽  
Frank Fichert
Keyword(s):  
Traffic Management ◽  
Service Providers ◽  
Air Traffic Management ◽  
Air Traffic ◽  
Traffic Operations ◽  
Charging System ◽  
Navigation Service ◽  
Fuel Consumption And Emissions ◽  
Pair Level ◽  
Additional Fuel

The European Air Traffic Management (ATM) system is highly fragmented. It consists of 37 air navigation service providers (ANSPs) whose areas of responsibility are, in most cases, limited to national borders. ATM fragmentation impacts air traffic operations in Europe in several ways. One of them is reflected through the current route charging system, which is designed and adapted to the fragmented ATM system to recover air navigation service provision costs at the level of individual ANSPs. Differences in unit rates have led to the phenomenon of aircraft taking detours around expensive charging zones, resulting in additional fuel consumption and emissions, as well as traffic shifts caused by varying unit rates. In this article, we analyze the differences in the unit rates across Europe and their evolution over the past few years. The main focus of the article is the analysis of the route charge variability on an airport-pair level, measured by an airport-pair variability indicator, which we suggest as a metric. We show the route charge variability for different flight distances, geographic areas, and flight directions, and we also identify airport pairs with the highest route charge variability. Finally, we discuss selected alternatives to the current route charging system, such as the uniform charge method and different approaches to airport-pair charging.

scholarly journals Assessment of Single European Sky Implementation in the Functional Airspace Block Central Europe

2017 ◽  
Vol 29 (6) ◽  
pp. 643-655
Author(s):  
Tomislav Mihetec ◽  
Andrija Vidović ◽  
Zvonimir Rezo
Keyword(s):  
Central Europe ◽  
Traffic Management ◽  
Service Providers ◽  
Research Programme ◽  
Air Traffic Management ◽  
Block Level ◽  
Definition Of ◽  
Navigation Service ◽  
Collaborative Implementation ◽  
Regional Grouping

Implementation of Air Traffic Management (ATM) MasterPlan-defined projects represents a prerequisite for thesuccessful implementation of the Single European Sky initiativedefined by the European Commission in 2004. Theimplementation of ATM-related projects is currently under the responsibility of the Single European Sky Research Programme Deployment Manager. While the definition of projects is being performed at the European Network level, theimplementation is performed through sub-regional grouping of Air Navigation Service Providers in a form of Functional Airspace Blocks. This paper analyses the level of implementation of ATM-related projects in the Functional Airspace Block Central Europe and their relation to other Functional Airspace Blocks defined in Europe. From this paper it is obvious that even though the planning of Single European Sky projects is based on the collaborative implementation of Functional Airspace Block level, the real implementation is fragmented and based on national levels.

ECONOMIC AND FINANCIAL ASPECTS OF AIR TRAFFIC MANAGEMENT IN POLISH AIRSPACE

2019 ◽  
Vol 114 (1) ◽  
pp. 20-36
Author(s):  
Assoc. Prof. Telesfor Marek Markiewicz, PhD
Keyword(s):  
Traffic Management ◽  
Service Providers ◽  
Parallel Implementation ◽  
Air Traffic Management ◽  
Air Traffic ◽  
European Union Law ◽  
Charging System ◽  
Air Navigation Services ◽  
Navigation Service ◽  
High Level

The article discusses selected provisions of EU aviation law concerning economic issues of air traffic management. This process in European airspace is carried out by air navigation service providers, which, unlike airport operators and air carriers, have a monopolistic position and do not operate under market conditions. Consequently, the lack of competition between air navigation service providers replaces the common charging system for airspace users established by European Union law. In order to increase the cost-effectiveness of the services provided while maintaining a high level of safety of air operations, the navigation charges system was linked to the parallel implementation of the Single European Sky performance scheme for air navigation services in 2010. In 2019, the rules governing both systems were consolidated into a single legal act. The study also looks at the basic indicators of economic efficiency of air traffic management based on the example of the Polish Air Navigation Agency.

Safety Culture and Safety-Relevant Behavior in Air Traffic Management

2015 ◽  
Vol 5 (1) ◽  
pp. 3-17 ◽  
Author(s):  
Michaela Schwarz ◽  
K. Wolfgang Kallus
Keyword(s):  
Safety Culture ◽  
Traffic Management ◽  
Service Providers ◽  
Five Factor Model ◽  
Principal Component ◽  
Air Traffic Management ◽  
Air Traffic ◽  
Psychometric Validation ◽  
Safety Attitudes ◽  
Culture Development

Since 2010, air navigation service providers have been mandated to implement a positive and proactive safety culture based on shared beliefs, assumptions, and values regarding safety. This mandate raised the need to develop and validate a concept and tools to assess the level of safety culture in organizations. An initial set of 40 safety culture questions based on eight themes underwent psychometric validation. Principal component analysis was applied to data from 282 air traffic management staff, producing a five-factor model of informed culture, reporting and learning culture, just culture, and flexible culture, as well as management’s safety attitudes. This five-factor solution was validated across two different occupational groups and assessment dates (construct validity). Criterion validity was partly achieved by predicting safety-relevant behavior on the job through three out of five safety culture scores. Results indicated a nonlinear relationship with safety culture scales. Overall the proposed concept proved reliable and valid with respect to safety culture development, providing a robust foundation for managers, safety experts, and operational and safety researchers to measure and further improve the level of safety culture within the air traffic management context.

Efficiency of Microfinance Institutions in India: A Two-Stage DEA Approach

2019 ◽  
Vol 15 (1) ◽  
pp. 49-77 ◽  
Author(s):  
Ram Pratap Sinha ◽  
Pallavi Pandey
Keyword(s):  
Environmental Variable ◽  
Current Approach ◽  
Data Envelopment ◽  
Microfinance Institutions ◽  
Two Stage ◽  
Conditional Performance ◽  
Evaluation Of Performance ◽  
Bootstrap Approach ◽  
Stage Estimation ◽  
The Relationship

The present study uses robust data envelopment analysis to estimate the performance of 30 Indian microfinance institutions (MFIs) from 2008–2009 to 2015–2016. Due to the non-availability of information in some instances, the present study uses an unbalanced panel of observations. In the matter of evaluation of performance, the study makes a major departure from the extant studies undertaken in the Indian context and adopts a double bootstrap approach originally suggested by Simar and Wilson. The current approach thus evaluates conditional performance of the in-sample MFIs in the presence of capital-to-asset ratio as an environmental variable. The two-stage estimation also involved the estimation of the influence of capital-to-asset ratio on the reciprocal of efficiency scores, and contrary to the expectations, the relationship was found to be positive.

scholarly journals 4D-Trajectory Air Traffic Management: Are There ‘Killer Apps’? – Part 2

2012 ◽  
Vol 65 (4) ◽  
pp. 571-587 ◽  
Author(s):  
Peter Brooker
Keyword(s):  
Airline Industry ◽  
Traffic Management ◽  
Service Providers ◽  
Fuel Efficiency ◽  
Radar Data ◽  
Air Traffic Management ◽  
Air Traffic ◽  
Transportation Demand ◽  
The Usa ◽  
Trajectory System

The USA and Europe are developing plans – NextGen and SESAR – to transform the processes of Air Traffic Management (ATM). These will improve safety and efficiency, and match predicted increases in air transportation demand. They use advanced networking technology updated with information from satellite navigation and digital non-voice communication. The strategic goal, envisaged for 15–20 years hence, is a new ATM paradigm. Aircraft would fly on Four-Dimensional (4D) trajectories, incorporating altitude, position, time, and other aircraft positions and vectors. This vision would involve extremely large investments from the airline industry and ATM service providers. Thus, development priorities need to be based on sound business cases. But will these necessarily lead to the strategic vision of a 4D-trajectory system? Will the changes in practice be limited to a series of short and medium term operational improvements rather than strategic improvements? So, are there ‘Killer Apps’ for 4D-trajectory ATM? ‘Killer App(lication)s’ is jargon for innovations so valuable that they prove the core value of some larger technology. Killer Apps generate high degrees of stakeholder technical and financial cooperation. Ironically, most past ATM Killer Apps have improved safety, e.g., modern radar data processing led to collision avoidance systems. The analysis here attempts to identify and then size potential 4D-trajectory ATM Killer Apps. The evidence for Killer Apps has to pass key tests. Killer Apps obviously have to offer enormous benefits to stakeholders in the context of the potential costs. The bulk of these benefits must not be obtainable through technologically ‘cut down’ non−4D-trajectory versions. Part 1 of this paper (Brooker, 2012a) sets out the framework for investigating these questions. Part 2 examines potential Killer Apps derived from improvements in Fuel Efficiency, Capacity and Cost. An abbreviated version of this paper was first presented at the European Navigation Conference (ENC 2011), London in November 2011.

Data envelopment analysis methods in sustainable agricultural development research

2021 ◽  
pp. 179-205
Author(s):  
Katarzyna Smędzik-Ambroży ◽  
Agnieszka Sapa
Keyword(s):  
Sustainable Development ◽  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Economies Of Scale ◽  
Scale Effects ◽  
Three Dimensions ◽  
Data Envelopment ◽  
Farm Accountancy Data Network ◽  
Business Entities ◽  
The Individual

Sustainable development of business entities can be analysed in terms of three dimensions, i.e., economic, social and environmental ones. The economic dimension of sustainable development can be assessed, inter alia, by entities’ technical efficiency defined as the relation of outputs to inputs. One of the methods that is used to assess the technical efficiency of business entities compared to other entities is the Data Envelopment Analysis (DEA) method. The aim of the chapter is to determine the relative technical efficiency of representative agricultural farms from the individual European Union countries in 2018. Moreover, the scale efficiency indexes and the area of scale effects (increasing or decreasing) of the analysed farms were also determined. In the study the data from the Farm Accountancy Data Network (FADN) for 2018 were applied. In order to achieve the assumed research goals, the input-oriented DEA model was used, and the technical efficiency indexes of farms were estimated with the assumption of constant return to scale (CRS) and variable return to scale (VRS). This allowed, among others, for indicating the countries with farms achieving the highest technical efficiency (Belgium, Spain, Italy, Malta and Netherlands assuming CRS, and Belgium, Spain, Italy, Malta and Netherlands, Greece, Ireland, Romania and Slovenia assuming VRS), the lowest technical efficiency (the Czech Republic and Slovakia) within surveyed group of farms. All relatively inefficient farms (except Slovakia) functioned in the area of increasing economies of scale.

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