BAA Welcomes New Report On Economic Benefits of Aviation

Which finds UK’s air transport infrastructure critical to boosting economy

BAA has welcomed the publication of a new report by the Airport Operators Association setting out the economic benefits that aviation brings to the UK economy.

“The Contribution of Aviation to the UK Economy” report finds that the UK’s air transport infrastructure is critical to boosting the wider economy.

If growth in air transport capacity is restricted to 1.5% a year, a figure aimed at reducing UK's aviation environmental impact, by 2030 the economy could forego over £30bn a year of wealth created and support 700,000 fewer jobs according to BAA.

The latest Department for Transport forecasts show that by 2030, there will be passenger demand in the UK for 434 million flights, an increase of about 3% a year. But if growth in flying were restricted to just 1.5% a year, the report estimates that average return air fares could see a 40% rise from £258 to £360, by 2020.

The report, prepared by independent economic consultants Oxera, also says that as the economy begins to recover, the role of aviation in supporting businesses through international connectivity, the movement of goods and people, and attracting inward investment, will be important in underpinning and accelerating recovery. BAA say that to do this, aviation should be harnessed, not penalised.

“The Contribution of Aviation to the Global Economy” report points out the damage that could be caused to the sector by UK-only alternatives to an international emissions cap, such as the Government’s recently increased Air Passenger Duty. The document calls for a global deal on aviation emissions to be agreed instead at the United Nations Climate Change talks in Copenhagen next month.

November 5, 2009