Air Traffic Service Provision - Business Logic in Reverse?

The letter S in the abbreviation ATS stands forwe can only dream of to-day. Like any system
Services. Air traffic services are the essentialcreated essentially by paper pushers, it is counter
commodity all but the simplest VFR flyers areproductive in many respects (it misses any real
obliged to purchase, at least for the foreseeableincentive to reduce costs on the ground for
future. Air traffic control is one of these services.instance) and compared to the way road and rail
The price varies as does the value for money(not to mention water) transport infrastructure is
across the planet.financed, it looks like somebody must really have
What happens if demand for a given service goeshad an axe to grind with the airspace users.
down? The price drops right? WRONG! InEven CANSO, the Civil Air Navigation Services
European air traffic service provision air navigationOrganization agrees that the system must be
service providers are obliged to recover 100 %reformed. They are calling for innovative ideas...
of their costs from the airspace users. WhenThere are two issues that need to be solved
demand for the service diminishes, the price goeshere.
up. This is logical since the cost of the service isFirst and foremost, immediate action is required
only loosely connected with the number ofto dampen the cost increasing effects of the
aircraft handled while reduced demand meanscurrent crisis and attendant downturn in demand.
there are fewer aircraft who will share the sameThis is absolutely essential and should have been
overall cost.undertaken yesterday.
So, those users who manage to survive the firstThe other, more strategic issue is figuring out
onslaught of a crisis will be rewarded by thehow to solve the question of financing air
system with higher user charges... Taking this tonavigation services that is equitable, does not put
an extreme, and admittedly hypothetical, scenarioairlines at a disadvantage in respect of other
the last airline standing would not only need tomodes of transport and which is flexible and
switch off the lights but also take out a loan toadaptable enough to be able to grow with and
pay for the passage of its last aircraft as it headsalign to future air transport developments.
to the scrap yard.The modern airplane is a very sensitive business
Of course it is not in the interest of air navigationtool and the seats in it are the most perishable
service providers to make life even more difficultgood on the globe. Once the doors are closed, an
for the airlines by user charges that go throughempty seat represents lost revenue that can
the roof. The full cost recovery system forcesnever ever be recovered. The environment in
them to seek the balance in the reduced demandwhich that business tool is operated and in which
scenario and raising prices is sometimes the onlythe goods are sold must be fine tuned to the
option. Of course they could do more to reducespecific needs of the business and this includes
their costs and hence avoid the need for a raisethe charging system also. At the same time it
and indeed there are providers who managed tomust be remembered that air navigation service
do that. But there is a limit to what can be doneproviders also have certain very specific
or reasonably expected.considerations that must be kept in mind when a
The full price recovery system was clobberednew charging system is put forward.
together at a time when the whole civil airThe two key words are "user" and "provider".
transportation world was a very different place,Being tied together with reverse business logic
with change extremely slow and a kind of stabilityneeds to come to an end.