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THE AIR TRANSPORT SECTOR: A Key Economic Sector in the National Export Strategy.

The Air Transport Sector should be promoted as a catalyst and contributor to achieving sustainable development across the entire Aviation Value Chain [1], which has the capacity to break chains of poverty and lack of opportunity and deliver socio-economic benefits to our citizens, while consumer health, safety, and benefits are preserved.

The Civil Aviation Value Chain (among others) includes:

  • Air transport (commercial air transport), non-commercial flying (such as private transport flying), commercial non-transport (such as aerial irrigation and crop research), medical air transport (ambulance flights),

  • Infrastructure (such as airports and air navigation facilities),

  • Aviation leasing and financing (such as aircraft, engines, and electronic equipment),

  • Aviation service provisioning (such as ground handling, catering, and insurance).

There are pull and push effects at work in the Aviation value Chain. For example, technical push effects from oversight authorities, or demand-pull effects in form of customer requirements. Due to these interdependencies and interrelationships across the entire aviation value chain, consisting of different environments (demand, economic environment, technical environments, and natural environment), the aviation sector can ideally be modeled with a systems approach.

Systems approach advocates that any organizational or business problem should be viewed as a system made up of a hierarchy of subsystems. Rather than seeing the problem in parts, it is viewed as a whole. Although the system is defined as a whole, the focus remains on the subsystems and components and on their role in the overall value system.

Air Transport is a vital component of the aviation value chain, it delivers the products and services of the civil aviation industry to customers worldwide.

Air transport has historically experienced higher growth than most other industries. Air transport demand is closely linked to economic development, and at the same time air transport is an engine in an economy.

The contribution of air transport and related civil aviation industries to the economy includes the output and jobs directly attributable to civil aviation, as well as the multiplier or ripple effect on other industries throughout the economy.

Passenger, cargo and mail services, airlines and other commercial operators purchase a wide range of products and services from airports and air navigation service providers, and the leasing and financing service sectors, which in turn depend on numerous suppliers.

The Multiplier effects of non-directly generated output and employment are assessed by combining what is referred to as catalytic and induced demand effects.

Catalytic demand effects include out-of-airport spending directly related to the use of air travel and shipping freight and mail, especially travel and tourism companies (such as hotels and restaurants, travel agencies, tour operators and retailers) as well as the entire spectrum of cargo business activity.

The Air Transport sector should be promoted as a catalyst and contributor to achieving sustainable development across the entire expenditures from related taxes income.

Therefore, it is of utmost importance to promote air transport as a major economic national priority area, not only from a technical, but also from a socio-economic perspective, capable of restoring growth and promoting socio-economic benefits.

Only by efficiently and effectively evaluating decisions does it become possible to allocate resources in an accurate manner, enabling better policy compliance, financial planning and infrastructure development involving both public and private funds.

[1] The Air Transport component is the centered part of the civil aviation sector.

PMC Global Aviation

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