Aviation – Fueling the Growth of Global EconomiesModern aviation is critical to the well-being of the global economy. It spearheads socioeconomic growth across the world. It has led the world in becoming a global village and transformed the dynamics of modern travel while facilitating cultural interaction. Due to changes in global air travel, the actual cost of flying has come down by 60% in the last 4 decades.
This has enhanced its accessibility to a wide section of people. At the same time, aircraft have become energy efficient by 70%. Key sectors from the international economy can take away best practices from the aviation sector for future growth.
The Impact of The Aviation Sector on The Global Economy Is As Follows:
Viable Business Hubs
Efficient business hubs cannot exist without a robust, integrated transportation infrastructure. This kind of inter-model method promotes employment opportunities, business growth, and developmental functions. It also results in an efficient utilization of current transport competencies and infrastructure, while facilitating connectivity within key urban regions, isolated destinations among others.
The provision of aid on time is critical for managing emergency responses related to life preserving efforts. During natural calamities, the aviation sectors response time and credibility are key to providing emergency aid - food, medicines among others expeditiously. Again, global airports provide key infrastructure for rescue missions, cargo movement.
Employment and Poverty Elimination
The aviation sector employs millions of personnel directly, while assisting several millions on the basis of indirect/induced jobs. The industry is a key function of the global travel and tourism sector. The sector furnishes specific training programs. Increasingly, women are being employed in the sector. Again, enhancing current viable transportation infrastructure can boost the scope for high paying jobs and steer uninterrupted economic development in the long run.
The commercial airlines sector is completely reliant on aviation fuels in comparison to other modes of transport having access to multiple energy sources. But, currently, aviation is looking at the feasibility of other forms of fuels to accomplish environmentally safe flexibility, based on renewable energy. Approved combinations - Biofuels mixed with traditional jet fuel are available at present. The focus is on ensuring the political/financial backing for facilitating fuel availability at a reasonable cost.
The sector is besieged by three widely believed facts:
- Aviation sector is for the affluent.
- No tax on the sector.
- The sector generates excellent revenue.
However, the actual situation is different. Due to market deregulation, aviation fares have gone down consistently along with an increase in standard of living/wages. Hence, more and more people are travelling. Again, the aviation sector globally is taxed significantly.
Innovation in aviation management has facilitated the elimination of aviation sectors greatest contingencies. It would be similar while dealing with viability issues. In transforming to a green economy, the key factor from an aviation transportation perspective would be environmental regulations and consumers’ preference.