Need For Investment
During a stop in Toronto, IATA’s director general and CEO, Tony Tyler said that: “Aviation is a natural driver of growth — linking markets and connecting business. Demand for connectivity is rising. To meet that demand and enable aviation to deliver its economic and social benefits, investment is needed to alleviate bottlenecks in the air and on the ground. In today’s economic climate it is a potent tool to stimulate much-needed growth.”
Tyler’s comments come following IATA’s call for a partnership approach guided by clearly defined success factors to build the global infrastructure needed for aviation to continue supporting economic and social development.
The airline industry association recently released its first 20-year passenger demand forecast. That forecast indicates that by 2034 total passenger numbers are projected to reach 7.3 billion, more than double the 3.3 billion passengers expected to take to the air this year.
Recently McKinsey estimated the investment in airports required to support GDP growth will need to be some $2 trillion by 2030.
Already aviation has a significant economic footprint. Alone, airline revenues of some $750 billion account for about 1% of global GDP. When combined with aviation-related tourism, aviation accounts for 58 million jobs globally and some $2.4 trillion of economic activity (3.4% of global GDP).
“And that is only the beginning,” Tyler observed, continuing, “Connectivity is the vital ingredient for modern industry — to move high value products quickly, to develop global markets or to support inward investment. The economic footprint of aviation crosses almost all sectors of the economy.”
He pointed out that, “The investments needed are significant, as will be their multiplier impact across the economy. They are essential for a prosperous future with a more productive economy. It’s important that we get it right. Cash-strapped governments alone don’t have the resources and are increasingly turning to the private sector. The private sector is playing and will continue to play an important role. But it is not a panacea. We have learned enough from our experiences to know that governments must set the right ground rules to ensure a successful outcome.”
IATA outlined several critical success factors for effective public-private partnerships when developing and operating infrastructure that include rigorous cost-benefit analysis; constant engagement with stakeholders/customers; right structure; good governance; and credible independent robust economic regulation.
Tyler also pointed out that “any investment in infrastructure must be environmentally sustainable,” explaining that, “The aviation industry is committed to capping net emissions from 2020 to achieve carbon-neutral growth. And by 2050 our aim is to cut total net emissions to half of 2005 levels. In fact, infrastructure investment programs, particularly for air traffic management, will play an important role. Just one project, the Single European Sky, would save around 8 million tonnes of carbon emissions annually. And there are benefits to be gained across the world in similar programs such as NextGen in the US and Seamless Asian Skies.”
Go to http://www.iata.org for more.