From traditional to professional Air Navigation Service Provider: A typology of European ANSP business models. (March 2021) - Buyle, Sven
Abstract: This paper proposes a business model typology based on factor analysis of mixed data sourced from the 2016 Air Traffic Management Cost Effectiveness (ACE) benchmarking report, European air navigation service provider (ANSP) websites and annual reports. It provides ANSP management insight into the key strategic business model decisions to be made, their resulting models as well as how these business model decisions contribute to ATM/CNS profits. The findings suggest that ANSPs can benefit from increasing both their level of corporatisation as level of outsourcing. The paper can be used by ANSP managers to position themselves within the European air navigation services (ANS) landscape and as a discussion starter for future business model developments; or by ANS customers to better understand the strategic objectives of the ANSPs. Highlights: This paper analyses the European ANS market from a business model perspective in respect to the expected further liberalisation of this sector. Insights are provided in the strategic, asset and governance choices made by European ANSPs. The main ANSP business model factors are identified by applying a factor analysis method for mixed data, from which a business typology is composed. The research demonstrates an impact of the Single European Sky initiative on the way in which European ANSPs collaborate and innovate. The findings suggest that ANSPs could benefit from increasing their level of corporatisation and outsourcing as well as from investing in disruptive technologies and should start building a competitive advantage accounting for the current market evolutions.