Why do economy watchers follow the aviation industry so closely? Airline stock prices, changes to the c-suite for major carriers, and union negotiations are often featured in nightly business reports. The reason? The aviation industry is tied to many aspects of the overall economy, particularly employment and GDP. Air transport has been and is expected to remain a fast and sustainably growing industry in years to come. In the working paper “The Effects of Terror on International Air Passenger Transport: An Empirical Investigation” by Devashish Mitra, Cong S. Pham, and Subhayu Bandyopadhyay, the authors break down the size and scope of the aviation industry.
A few quick facts:
One of the air transport industry’s most important contributions is its role in facilitating the growth of other industries. For example, air passenger transport is of critical importance for the growth of tourism because more than 40% of international tourists travel.3
For more information about the aviation industry, read the Working Paper here.
1 More details on the importance of the aviation industry can be found from Facts & Figures of The Air Transport Action Group (ATAG), which are available at: http://aviationbenefits.org and http://www.atag.org/facts-and-figures.html.
3 Air transport also generates negative environmental impacts such as low air quality, noise, and congestion in the vicinity of airports. Yet, these negative effects are considered to be largely outweighed by its positive spillover effects. Cooper and Smith (2005) referred to these positive effects as the “catalytic effects” of the air transport industry.