Loading

What likelihood of Air Traffic Control privatisation globally? Not much, but with caveats - part one

Featured Analysis

Although the privatisation of airports (even in the US) has continued since the 1960s, so that now 15% or more of airports are privatised to some degree, the same is not true of air traffic control organisations (ANSPs) where it is less than 1% globally with only three organisations, two in Europe and one in North America, having any level of non-state participation.

There are many reasons for this, but ultimately it boils down to government distaste for handing over such a critical industry to the private sector, and that is most evident in the US where the FAA is progressing its own system, NextGen, for completion by the end of 2025.

Not surprisingly, the UK has led the way, as it did with airport privatisation, and its ANSP is part-owned by the government, which retains its golden share. Also a clutch of airlines within a consortium, the main airport, and staff. The UK is also home to a large private company, which is involved in ATC operation there and across the world.

The British system, known as NATS, is worthy of investigation, at least by other countries, but it is ridiculed by vested interests in the US, a country which is absolutely wedded to public sector control of this sector.

A new brush sweeps clean, and it is always possible that the current US administration will make some changes. But not quickly, as it remains embroiled in trade wars and trying to stop military ones.

The most likely progress in the US will be if the relevant authority, the FAA, chooses to permit remote control towers, as many other countries have. They are often built and operated by private companies, and can be very cost effective. They equate to the public-private partnership system that has grown in the US latterly as a way of building new airport infrastructure, and sharing the costs and rewards.

This is part one of a two-part report.

Read More

This CAPA Analysis Report is 2,884 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More