Essay On Air Transport Industry

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The Air Transport industry Air Transportation industry plays a significant role in the development of economy. It is the most efficient and quickest way of transporting people and goods to every corner of a country and throughout the world in various types of operations. The aviation forms a part of transportation system which operate as scheduled and unscheduled commercial and cargo services. In addition, general aviation services which includes business aviation and air taxi operations. The aviation industry contributes to the growth of economy through direct impact, indirect impact and induced impact. Direct impact is a result of activities carried out in the local area. Airport operations contribute the greatest direct impact to the local economies. They include expenditures by airlines,…show more content…
For example, an airline employee purchases a house in the local area of a nearby airport. The income that is spent by the builder to purchase other goods and services is the multiplier effect which one transaction leads to another. Economic growth on the other hand has a significant impact to the growth of the aviation industry. When the economy is growing, companies expand their business which is leading to an increase in business travel. The economic prosperity is measured by indicators such as gross domestic product (GDP). GDP is the total all market value of goods and services produced in a particular country for a given year. The demand of air travel in general would follow the growth of GDP and the opposite is true when the economy enters recession. The correlation between the demand of air travel and the economic growth has been recognised for many years. An acceptable general rule of thumb is that for every 1 percent of economic growth there is increase of 2.5-3 percent increase of world air
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