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Archive for June, 2015

ANSPs: A very unnatural monopoly

Written by Aviation Advocacy on . Posted in Air traffic management

ANSPs would have us believe their position as monopoly providers of air traffic services is sacred. Air traffic control is a natural monopoly, so their mantra goes. Not for much longer. A natural monopoly occurs in an industry where there are high fixed costs. Typically, these are industries which require large investments in infrastructure. This means that it would be costly for multiple firms to operate as each would be required to build its own infrastructure, leading to inefficient duplication. Commonly cited natural monopolies include utilities such as electricity lines or water pipelines. Air traffic control has traditionally been seen as a natural monopoly due to the large sunk costs associated with radar. However, technological changes are starting to challenge this view and, increasingly, air traffic services can no longer be defined as a natural monopoly.

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