CONTENTS Introduction 2 Executive summary 3 Key facts and figures from the world of air transport A global industry, driving sustainable development 11 Aviation’s global economic, social and environmental profile in 2016 Regional and group analysis 39 Africa 40 Asia-Pacific 42 Europe 44 Latin America and the Caribbean 46 Middle East 48 North America 50 APEC economies 52 European Union 53 Small island states 54 Developing countries 55 OECD countries 56 Least-developed countries 57 Landlocked developing countries 58 National analysis 59 A country-by-country look at aviation’s benefits A growth industry 75 An assessment of the next 20 years of aviation References 80 Methodology 84 1 AVIATION BENEFITS BEYOND BORDERS INTRODUCTION Open skies, open minds The preamble to the Chicago Convention – in many ways aviation’s constitution – says that the “future development of international civil aviation can greatly help to create and preserve friendship and understanding among the nations and peoples of the world”. Drafted in December 1944, the Convention also illustrates a sentiment that underpins the construction of the post-World War Two multilateral economic system: that by trading with one another, we are far less likely to fight one another. This pursuit of peace helped create the United Nations and other elements of our multilateral system and, although these institutions are never perfect, they have for the most part achieved that most basic aim: peace. Air travel, too, played its own important role. If trading with others helps to break down barriers, then meeting and learning from each other surely goes even further. We have all gained so much from this international system of trade and travel over the Michael Gill past 70 years that it would be easy to forget how much it relies on cooperation and goodwill between countries. ATAG Executive Director Geneva, October 2018 Those of us within the aviation sector never forget – our global reach requires constant coordination. It’s an extraordinary system. Over 10 million women and men are directly employed to ensure we build the best aircraft; load them with fuel, food, cargo and passengers; fly them in the most efficient way; guide them safely through the skies; and land them at airports all over the world. There are thousands, indeed millions, of moving parts all coming together to make that system work. International cooperation is key to this. On a daily basis, we use standards and rules developed by collaborative efforts through expert industry committees and at the International Civil Aviation Organization to deliver a safe, secure and interoperable system. Through multilateral efforts, we have also led the way with a sector-wide climate change action plan, including the world’s first market-based measure for any industry. Although we are rightly often thought of as a technology-driven business, we are also aware of the people that we are responsible for transporting and the teams that make it all work. Bringing people together – both as employees and as customers – is how our sector helps to break down barriers and build understanding between people. At a time when the forces of protectionism threaten to drive people apart, it’s good to know there is still an industry whose entire raison d’être is to do quite the opposite. 2 AVIATION BENEFITS BEYOND BORDERS EXECUTIVE SUMMARY Key facts and figures from the world of air transport 3 AVIATION BENEFITS BEYOND BORDERS Beyond the industry Aviation’s global employment and GDP impact2 65.5 million $2.7 trillion 36.7 million $896.9 billion 65.5 Tourism million catalytic Jobs supported by aviation 7.8 million $454.0 billion Induced worldwide1 10.8 million $637.8 billion Indirect 10.2 million $704.4 billion Aviation direct JOBS GDP $2.7 trillion DIRECT JOBS Aviation’s global economic th impact (including direct, indirect, 20If aviation were a country, 8 525,000 it would rank 20th in size by induced and tourism catalytic) 3 Airport operators GDP (similar to Switzerland (operations, planning, engineering) or Argentina)11 5.6 million Other on-airport4 (retail, car rental, government All employment and GDP figures are for agencies such as customs and 2016, unless otherwise stated, to give a single set of data for one year. Where immigration, freight forwarders, 3.6%Global GDP supported by aviation9 available, traffic and financial statistics some catering) data are for 2017. These figures represent the benefits that aviation activities deliver to the 2.7 million global economy. They do not include Airlines5 other economic benefits of aviation, (flight and cabin crews, executives, such as the jobs or economic activity ground services, check-in, training generated when companies or whole and maintenance staff) industries exist because air travel makes them possible. They also do not include the intrinsic value that the 4.4xAviation jobs are, on average, speed and connectivity of air travel 1.2 million provides or domestic tourism and 4.4 times more productive than 6 Civil aerospace trade. Including these would increase 12 other jobs . By opening markets (engineers and designers of civil the employment and global economic and enabling knowledge transfer and aircraft, engines and components) impact numbers several-fold10. other catalytic effects, aviation also The figures in Aviation: Benefits Beyond makes jobs in other sectors more Borders should be viewed as a snapshot productive. Globally, each aviation 233,000 of the aviation sector in 2016-2018 and job generates $108,700 in gross value Air navigation service providers7 not as part of a trend. Differences in added (GVA). data sources mean the reports are not (air traffic controllers, executives) directly comparable. 4 AVIATION BENEFITS BEYOND BORDERS Going places Routes served Global passenger split, international/domestic, millions17 45,091 globally, 201713 (of these, 20,032 unique city pairs are served) Total: 4,094 m 58.5% 41.5% Domestic International Passengers carried passengers passengers 4.1 billion by airlines, 201714 (in 2018, 4.4 billion passengers are forecast) Asia-Pacific in front Regional passenger traffic split18 2% 41.9 million Africa Scheduled commercial flights worldwide, 201715 23% North America 37% Asia-Pacific 4% Middle East 8% 7.75 trillion Latin America and 16 the Caribbean 26% Passenger kilometres, 2017 Europe Jetting off 1,303 170 Aircraft in commercial service, by type, 201724 Commercial airlines19 Air navigation service providers22 5,567 26,150 Total: 31,717 3,759 31,717 17.5% 82.5% Airports with scheduled Commercial aircraft Turboprops Jets commercial flights20 in service23 (it is estimated there are 41,820 airfields in the world, including military and general aviation aerodromes21) 5 AVIATION BENEFITS BEYOND BORDERS High value, time sensitive Proportion of global trade transported by air26 0.5% By volume 34.6% 35% By value Air transport carries around 35% of world trade by value and less than 1% by volume25 Tonnes of freight handled 27 57% 61.9 million by air, 2017 Percentage of international tourists who travel by air30, 2017 Value of cargo handled by air, 201728 (in 2018, it is expected $6.8 trillion will $6trillion be carried) 81% Average aircraft occupancy39, Scheduled freight tonne much higher than other forms 255billion kilometres, 201729 of transport40 341 billion $149 billion Litres of jet fuel used by commercial operators, Amount the world’s airlines paid for fuel, 201732 2017 (90 billion gallons, or around 275 million tonnes of jet fuel)31. This is roughly 10% of global liquid fuel use. 14 million Litres of neat sustainable aviation fuel used by commercial flights, 2017. This was blended 859 million with traditional fuel in over 52,000 flights from four international airports (Los Angeles, Bergen, Oslo and Tonnes of carbon dioxide (CO2) emitted by airlines, Stockholm)35. As this new source of fuel takes off, 201733. This is 2% of the global human emissions of 34 we will see this figure rise substantially. around 40 billion tonnes . Around 80% of aviation CO2 is emitted from flights over 1,500 kilometres in length. Follow developments at www.enviro.aero/SAF 6 AVIATION BENEFITS BEYOND BORDERS EXECUTIVE SUMMARY ENVIRONMENTAL PROGRESS The air transport industry has made significant This report provides a global view of a truly global industry. progress in reducing its environmental impact: Oxford Economics analysed the economic and social benefits of aviation at a national level in 63 countries and used the results » CO2 emissions per seat kilometre ▼ 80% since first of that assessment to build the most comprehensive global jet aircraft. picture of air transport’s many benefits. Working with partners across the industry, the Air Transport Action Group (ATAG) has » Perceived noise ▼ 75% since first jets. expanded the analysis to build a unique view of the air transport » Currently surpassing the first goal, with an average system, which creates and supports jobs, trade, connectivity, annual fuel efficiency of 2.1% achieved across the fleet tourism, vital lifelines for many remote communities and rapid between 2009 and 201636. disaster response. » Over ten billion tonnes of CO2 avoided since 1990 Every day in 2018… through a combination of new technology, operational efficiencies and infrastructural improvements, including » 12 million passengers airlines spending $1 trillion on over 12,200 new aircraft » 120,000 flights since 200937. » $18.8 billion worth of goods carried45 » The industry has invested in new technology, better operations and improved infrastructure. Air transport is a major contributor to global economic » Civil aerospace spends $15 billion per year on efficiency- prosperity related research and development. » Deployment of sustainable aviation fuels could Aviation provides the only rapid worldwide transportation reduce CO2 emissions as much as 80% compared with network, which makes it essential for global business and traditional fuel. It is expected that a million commercial tourism.