Revolutionary versus evolutionary strategies: The future of air traffic management service provision from a supply chain perspective

Analysis of the supply chain of air traffic management

When dealing with the issue of the air traffic management (ATM) future, prominence is generally given to technological change. Paradoxically, there is agreement in the industry on the fact technology is not the main driver. Against this background, the paper assumes that ATM future will above all depend upon changes in the supply chain design of service provision, in other words on the dynamics of vertical relations between air navigation service providers (ANSPs), equipment suppliers, airline companies.

The paper addresses three key issues:

  • Why has the current ATM supply chain reached its limits and why is this kind of organizational design probably unable to cope with future technological changes?
  • What kind of evolutionary strategies are developing in the sector (vertical downstream and upstream alliances, vertical downstream and upstream integration, setting up of vertical businesses, buying off the shelf)?
  • How can the revolutionary strategy developed by Boeing be analyzed and assessed? Could this strategy spark a major change in air traffic management service provision in the future?

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Revolutionary versus Evolutionary Strategies: the Future of Air Traffic Management Service Provision...