Air Traffic Control in Sweden : Differences between a public and private alternative in an upcoming deregulation

• Main Authors: Löfmark, Johan, Saleh, Leo, Zand, Daniel
• Format: Others
• Language: English
• Published: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Företagsekonomi 2006
• Subjects: Air Traffic Control; Privatization; Public Management; Business and economics; Ekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-769

Background: In Sweden, air traffic control is currently performed in a mo-nopoly with the state owned Luftfartsverket as the only sup-plier. A deregulation process has been initiated with the ration-ale of cost reductions, both for airports and airline passengers. Problem and purpose: Economic arguments have been predominant for this potential deregulation and the underlying assumptions are that private al-ternatives would improve efficiency and reduce costs. This has lead the authors to identify what private alternatives would do differently than the current public operator in order to offer these benefits. Method: To fulfill the purpose the authors have used a qualitative ap-proach based on interviews with the current public operator as well as a new potential private alternative. In addition to this, interest organizations and regulative agencies have been con-tacted and secondary data incorporated to provide a holistic perspective. Conclusion: The authors have identified differences in activities between a public and private alternative that would create an advantageous effect on the market. They are: a different management of re-tirement funds, prolonged retirement age, new compensation system, altered recruitment policy, a full utilization of staff and a seizing of non-value adding activities.