New UK report on value of aviation to the economy

On 03 November 2009 the UK Airport Operators Association launched What is the contribution of aviation to the UK economy? an independent economic study produced by Oxera Consulting Ltd.

The report provides the first overall assessment of the role of the aviation sector in the UK economy since the Oxford Economic Forecasting (OEF) report of 2006.

There is a lively debate in the UK as the General Election approaches on aviation issues such as aviation emissions and the recently increased air passenger duty (APD). The report contributes to that debate by assessing the industry’s economic role, both directly and as a catalyst for the wider economy, and examining the downstream impacts, on wealth creation and employment, of possible changes to the policy framework.

The report, prepared by independent economic consultants Oxera, 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. To do this, it says 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 UK 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.

Commenting on the report, Colin Matthews, CEO of UK airport company BAA, said: “This report highlights the social and economic benefits that aviation brings to the UK, and the importance of a global deal at Copenhagen. Aviation must be part of society’s solution to climate change, so BAA is working with our partners throughout the industry to realise a global deal on carbon emissions. We are also investing huge sums at our airports to improve services for our customers. The resulting reduction in environmental impact will be a critical measure of our success.”

The 102 page report is available from the web site of the UK Airport Operators Association at http://www.aoa.org.uk/feature/index.asp?ID=25