ACR attends the European Aviation Conference in Vienna 7-8 November
An important theme of the conference in Vienna is to discuss future pricing in the industry and especially in the ATM area.
Are prices too high, too low or just right?
What is wrong with ATM pricing?
ANSP pricing is governed by the accounting rules established by ICAO last century – ‘cost recovery’ is the basis for ATM charging. It also assumes technology from last century too. In the meantime, the rest of the industry takes a modern, economic pricing approach, with dynamic offer management, continuous pricing, volume discounts, differential pricing and demand-based charging. Digitalisation is driving different thinking in the way services are delivered, as well as priced. When will the ATM community start to price their product effectively and efficiently, taking advantage of the new digital technologies? Should there be brokers? Should each airline buy its services end-to-end? What difference would it make to how service is delivered?
“The current ATM pricing mechanism is not acknowledging the current industry reality and offers too few incentives for increasing the cost efficiency of the ANS delivery. In the Terminal ANS environment the partial liberalisation and consequent competition between providers has yielded significant cost reductions for airports – that path should be explored further”.