COMPETITIVE CHALLENGES FACING THE AIR NAVIGATION SERVICES IN EUROPE

Abstract

European aviation is facing new competitive challenges in a rapidly evolving global market, in particular as a result of a shift of economic growth to the East. These new competitors are benefitting from the rapid economic growth of the entire region, notably Asia, and from aviation becoming a strategic element in their home-country's economic development policies. With an annual growth forecast of 6%, scheduled passenger traffic in the Asia Pacific, the region is likely to grow faster than other regions until 2034 when it will account for 40% of world air traffic. China is expected to become the world’s largest air transport market, overtaking the United States of America in 2023 in terms of number of passengers carried (Sloveniacontrol, 2018).For the EU aviation industry to remain competitive, it is essential that market access is based on a regulatory framework which promotes EU values and standards, enables reciprocal opportunities and prevents distortion of competition. The main challenge for the growth of European aviation is to reduce the capacity and efficiency constraints, which are seriously impeding the European aviation sector's ability to grow sustainably, compete internationally, and which are causing congestion and delays and raising costs. This paper examines competitive environment and performance of seven European Air Navigation Services Providers (ANSP) of Austria, Bosnia and Herzegovina, Croatia, Czech Republic, Hungary, Slovak Republic and Slovenia from European Commission´s target perspective.