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The Impact of Globalization on International Air Transport Activity - Past Trends and Future Perspective

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The Impact of Globalization on International Air Transport Activity - Past Trends and Future Perspective The impact of globalization on international air transport activity - past trends and future perspective Kenneth Button University Professor, George Mason University OECD and ITF Global Forum on Transport and Environment in a Globalizing World Guadalajara, 10-12 November, 2008 “Only the psychologically disturbed or inadequate want transport for its own sake.” Denys Munby, 1968 Air transport is a major industry • 1,600 million passengers a year • 3.9 million jobs • $260 billion turnover • 18,000 aircraft • 15 million kilometer network • 10,000 airports • 130 billion revenue ton kilometers • 30 million tons of freight Further features of the global market • Large industry in its own right (1% of Western European GDP, more than 1% of US GDP) • Important for key modern industries (high-tech management flies 60% more than traditional industries) • Important for long term economic/political integration • Lubricant for the economic system • Half of tourists outside of Europe travel by air The ten largest international airlines by scheduled passenger-kilometers Airline Scheduled passe nger-kilometers (million) Air France 112,689 British Airways 111,336 Lufthansa 109,384 Singapore Airlines 87,646 American Airlines 81,129 United Airlines 74,578 Emirates Airline 74,578 KLM 71,761 Cathay Pacific 71,124 Japan Airlines 59,913 The 20 largest international airports by passengers (2007) Airport International passe ngers London Heathrow Airport 62,099,530 Charles de Gaulle International Airport 54,901,564 Amsterdam Airport Schiphol Haarlemmermeer 47,677,570 Frankfurt Airport 47,087,699 Hong Kong International Airport New Territories 46,281,000 Singapore Changi Airport Changi, East Region 35,221,203 Narita International Airport 34,289,064 Dubai International Airport 33,481,257 Suvarnabhumi Airport 31,632,716 London Gatwick Airport 31,139,116 Incheon International Airport 30,753,225 Madrid Barajas International Airport 29,339,784 Kuala Lumpur International Airport 26,938,970 Chatrapati Shivaji International Airport 25,360,860 Munich Airport 23,988,612 Dublin Airport 22,339,673 John F. Kennedy International Airport 21,521,711 London Stansted Airport 21,201,543 Taiwan Taoyuan International Airport 20,855,186 Malpensa International Airport 20,627,846 Short-term links between world trade in manufactures and air freight volumes A „dog-bone‟ or „dumb-bell‟ international air transport network x a y b z A B c j i The implications of globalization on the various air transport markets Operating margins of airlines (1988-2006) Airline profitability by global region European lccs that ceased to exist (2003 to 2005) Aeris BuzzAway Hellas Jet Agent Dream Air Hop Air Bosnia Duo Jet Magic Air Andalucia Europe DutchBird Jetgreen Air Catalunya EastJet JetsSky Europe Air Exel EU Jet JetX Air Freedom Europe Exel Aviation Group Low Fare Jet Europe Air Fairline Aust ria Maersk Air Air Littoral Fly Eco Now Air Luxor Fly West Silesian Air Air Madrid Flying Finn Skynet Airlines Air Polonia Free Airways Spirit Of Balkan Air Wales Fresh Aer Swedline Express Airlib Express Germania Express V Bird BasiqAir GetJet Poland VolareWeb BerlinJet Go Fly White Eagle Bexx Air Goodjet Windjet Strategic Airline Alliances Star Alliance SkyTeam Oneworld Passe ngers per yea©ˆ 455.5 million 428 million 319.7 million Destinations 975 841 692 Global market share 25.1% 20.8% 14.9% Participants Adria Airways Aeroflot American Airlines Air Canada Aeromˇ xico British Airways Air China Air Europa Cathay Pacific Air New Zealand Air France Finnair ANA Alitalia Iberia Asiana Airlines China Southern Japan Airlines Austrian Airlines Continental LAN Blue1 Copa Airlines Malˇv BMI Czech Airlines Qantas Croatia Airlines Delta Royal Jordanian EgyptAir Kenya Airways LOT Polish Airlines KLM Lufthansa Korean Air SAS Northwest Shanghai Airlines Singapore Airlines South African Airways Spanair Swiss International Air Lines TAP Portugal Thai Airways International Turkish Airlines United Airlines US Airways American Airlines The alternative views of the implications of migration The notion of gateways Impacts of opening more gateways on international and domestic air transport networks and flows Air travel between the UK and selected transition economies Poland Hungary Slov akia Lithuania 4 3.5 Enlargement 3 2.5 2 1.5 Million Million passengers 1 0.5 0 2002 2003 2004 2005 2006 Year Selected Indices of Mainland China‟s civil air transportation system, 1980–2005 1980 1985 1990 1995 2000 2005 Number of airports 77 80 92 116 139 142 Passe nger traffic (million persons) 3.4 7.5 16.6 51.2 67.2 138.3 Passe nger traffic turnover (million person-km) 39.6 116.7 230.5 681.3 970.5 2044.9 Freight traffic (thousa nd tons) 90 200 370 1010 1970 3070 Freight traffic turnover (million ton-km ) 140.6 415.1 818.2 2229.8 5026.8 7889.5 Growth in cargo at China‟s main airports.
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