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cent of businesses in Chile, China, Czech Republic, France and
the US stated that in offering quick and affordable access to a
wider global market, aviation had assumed a key role in their
business strategies for growth. This, in itself, has led to
increased global competition through the ability not only for
businesses to source raw materials, components and finished
products from regions which offer these at a cheaper price,
but also to set up manufacturing businesses in these regions
as well and to sell their own goods to a larger market base.
Air transport also improves the labour market by facilitating
access to highly-skilled professionals from a global pool of
resources rather than a limited parochial domestic supply. It
has also transformed work patterns by allowing staff to
commute by air from a number of different offices around
the world. Some employees, particularly the more senior
ones, may alternate from head office to regional offices on a
weekly or monthly basis, cutting down on the need to employ
a number of expensive senior managers at each of the
outlying offices. This flexible labour movement makes airports
more important to the locations they are in, as they are, in
themselves, a magnet for inward investment. Good access to
an international airport is attractive to companies who are
looking to expand their operations, not only because it makes
it easier to transport their finished goods and raw materials,
but also because of the benefits of the more mobile labour
market. This effect has been quantified in a EUROCONTROL
and Oxford Economic Forecasting study of 25 European Union
Member States. It showed that the growth of air transport
over the last decade will contribute an additional 4 per cent
to European GDP through the wider supply-side impact on
investment and productivity.
Within Europe, more
than 7.5 million jobs are
reliant on the air
transport industry, either
directly or indirectly
© Austro Control
Air Traffic Controller in new Austro Control Tower at Vienna Airport
ATM: THE CHALLENGE OF GROWTH
32
Taxation
A lot of attention has recently been focused on aviation’s tax
exemption for aircraft fuel, which was granted under article 24
of the 1944 Chicago Convention. It has been suggested that
not only is the tax exemption unfair, it is also unwise due to
the environmental damage to which aviation contributes.
However, aviation is engaged in a wide-ranging set of
programmes and projects, aimed at reducing its impact on the
environment and is already a net tax contributor to
government exchequers around the world.
Aviation is the only form of transport that pays both user
charges and taxes. It pays for its own infrastructure through
the collection of charges at airports. According to IATA, airlines
pay up to US$42 billion per year in user charges to airports in
the form of payments to use the runway, as well as payments
to the ANSPs, which are often included in the price of an
airline ticket. The road and rail sectors may contribute to
taxation via fuel costs and in some cases through road tolls
and VAT, but in general neither rail nor road infrastructures pay
for themselves and are forced to rely on state subsidies for
their continued operations. In Europe alone, state subsidies to
the rail sector are close to US$50 billion per year.
Social impact
The impact of air transport on society goes much deeper
than just the economic benefits enjoyed by the people it
employs and the businesses it helps to trade. As far as
Europe is concerned, it is vital for the cohesion of the
enlarged Union. It helps to connect the regions – especially
the more remote ones – with each other as well as with the
political centres and provides the necessary infrastructure to
promote free movement of labour and goods.
Air transport also improves the quality of life of consumers
by providing a wider choice of goods and access to foreign
travel for recreation, cultural and political exchange. On top of
this, it is one of the safest modes of transport, as can be seen
by the European Environment Agency’s TERM 2003 report
which listed the number of people killed per billion passenger
kilometres as 5.9 for cars and only 0.4 for public air transport.
Images of the 2004 tsunami in Indonesia and earthquake
victims in Asia are a stark reminder that relief operations need
to be at the scene within hours of the event. These teams
require extensive support and equipment in order to carry out
their work. The only way of getting this on scene, on time, is
　
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