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build on aviation’s important 4.5 per cent contribution to the
global GDP. The challenge facing civil aviation, therefore, is to
demonstrate that considerable effort is being channelled into
activities designed to ensure that these negative impacts are
significantly reduced and that they are greatly outweighed by
the social and economic benefits civil aviation can generate.
Economic impact
The economic impact of aviation is produced at all levels of
the industry from the manufacture of aircraft and associated
equipment, the knock-on effects of travel itself and revenues
accrued through taxation and the levying of charges for
service provision.
Air Traffic Management (ATM) is the essential infrastructure
of systems, people and procedures that facilitates air travel.
The European ATM system is a network with some 25,000-
30,000 commercial flights per day undertaken by 5,000
aircraft flying between 1,000 major airports through 600
sectors. World ATM revenues are in the region of $20 billion
per annum with European ATM accounting for as much as $9
billion (E7 billion) of this. As such, European ATM revenues
account for 5 per cent of the overall aviation contribution to
European GDP.
According to the Air Transport Action Group’s (ATAG’s)
report The economic and social benefits of aviation,
published in 2005, as many as 2.3 billion people may travel by
air each year by 2010. Already, over 29 billion tonnes of
freight, representing 40 per cent of manufactured goods, are
transported by air annually, and over half of all international
tourists (excluding those travelling within Europe) fly to their
holiday destinations. As such, it provides an essential global
infrastructure, which not only supports, but also drives social
and economic progress.
The Group also highlights how a total of 29 million jobs are
reliant on the air transport industry worldwide. This figure
comprises 5 million direct jobs, 5.8 million indirect jobs,
2.7 million induced jobs, 15.5 million direct and indirect jobs
European ATM
revenues account for
5 per cent of the
overall aviation
contribution to
European GDP
T through catalytic impacts.
The majority of these jobs have been created in developed
nations with 1.8 million in North America, 1.5 million in Europe
and 1.2 million in the Asia-Pacific region. That said, however,
the industry supports employment in the less developed parts
of the world with 170,000 in Africa, 165,000 in the Middle-East
and 210,000 in Latin America.
Within Europe, more than 7.5 million jobs are reliant on the
© Birmingham International Airport
ATM: THE CHALLENGE OF GROWTH
31
air transport industry, either directly or indirectly, or as a result
of induced and catalytic impacts. It also provides access to
regions whose only other transport links are by sea or through
inhospitable terrain. Air transport is absolutely vital for the
tourist industry, which not only provides revenues for the
retailing, catering and hotel businesses, but also helps to boost
other industries in the host countries, such as agriculture,
fishing, construction and local crafts. Air transport is also vital
for 25 per cent of all companies’ sales worldwide.
More than 4 million of global aviation’s 5 million direct jobs,
that is, those positions within the industry, such as airlines,
airports, freight services, aircraft maintenance, Air Navigation
Service Providers (ANSPs) and retail are in the airlines or the
airports themselves. The remainder are in aircraft and aircraft
systems production and development activities. The 5.8 million
indirect jobs relate to the supply side, such as manufacturers of
electronic goods and computers, off-site suppliers, including
food, fuel supply and construction, business services (lawyers,
accountants), banks and software suppliers.
All of these employees, be they engaged in either a direct or
indirect capacity, recycle their wages/salaries by putting money
back into the economy through the purchase of goods and
services required for day-to-day existence like food, clothing,
household goods and transport – to and from work. This
expenditure supports another level of employment referred to
as ‘induced’ and accounts for an additional 2.7 million jobs.
Where then, are the additional 15.5 million direct and
indirect jobs created as a result of the catalytic effect or spinoff
impact? Air transport’s catalytic effect/spin-off impact was
examined in a survey undertaken by International Air Transport
Association (IATA) in 2005, where it was found that over 70 per
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Partnership for Performance and Growth.(6)
