Aviation In The Global Economy

Today, aviation is a romantic industry with applications of great importance to the global economy. Our world would be very different without aviation; it would be poorer and less communicated. 

Commercial aviation has become a vital element of the modern global economic system. In 2015, more than 3.3 billion people will board a plane somewhere on earth, on one of more than 25,000 aircraft along one of more than 50,000 routes from one of the world’s more than 3,800 commercial airports (there are more than 41,800 airfields in the world, including military and general aviation). 

Aviation Industry In The World Economy

The airline industry is a vital part of the increasingly globalized world economy, facilitating the growth of international trade, tourism and international investment. It also speeds up the connection of people on all continents.

Global
Economy

The industry’s size is such that if it were a country, it would be classified as the twenty-first largest economy in the world, larger than Argentina or Colombia. Its impact on the world economy is considerable; about 3.4% of global GDP depends on it, without including other economic benefits derived from aviation, such as economic activity and some jobs that are possible thanks to the speed and connectivity of air transport.

valuable merchandise

Air transport is preferred for efficiently moving valuable merchandise. Currently, the value of goods transported by air is US$18.5 billion, 35% of global trade by value and only 0.5% by volume.

airline industry

It is also a competitive and difficult business. In 2013, the airline industry earned a collective profit of US$12.9 billion on revenues of US$708 billion. A net profit margin of 1.8%. An average benefit of only US$ 4.13 for each passenger transported. 

Aviation is also an important source of employment. It supports more than 58.1 million jobs, and it is expected that in 2032, there will be more than 100 million.

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Aviation and sustainable development

Global airline operations produced 689 million tons of carbon dioxide (CO2) in 2012 (705 million tons in 2013), almost 2% of total human carbon emissions that amounted to more than 36 billion tons. Tons.

Aware of the magnitude of the impact of its activity on the environment, the aviation industry is making great efforts to minimize its environmental impact and help achieve a sustainable economy.

To this end, one of its medium-term objectives is to increase the fuel efficiency of airline fleets by 1.5% per year until 2020, when the industry will cap its emissions while continuing to meet the needs of the passengers.

By 2050, the industry has committed to reducing its net carbon footprint. This year, its net carbon footprint is expected to be 50% lower than in 2005.

A New Generation Of Aviation

Innovation is the way forward. This principle applies to all areas where man intervenes, and aviation is no different. This will be an innovative element when adopting the technologies of the future. ICAO’s role in supporting aviation innovation focuses on evaluating regulations and their adaptation to new and innovative developments in the sector, accelerating their implementation. 

How Does Aviation Contribute To The Development Of Society?

Moving people to distant places in reduced times is the goal of aviation not only in our country but around the world. Achieving this goal has positive consequences in increasing human capital and humanitarian aid.

In the Aviation Benefits report, prepared by the International Air Transport Association ( IATA ) and the International Civil Aviation Organization ( ICAO ), it is noted that the international aviation sector makes improving people’s quality of life possible. , through different actions that have an impact on everyday life.

The massive movement of people has contributed to the growth of human capital globally as more and more people travel, specifically students, who do so for pleasure or to study abroad.

UNESCO statistics also reveal that the largest flow of exchange students comes from the Asian continent, most of which travel to Anglo-Saxon and European countries.

Likewise, a large percentage of workers have migrated to other countries. Approximately 4.4 per cent of the world’s economically active population is migrant, and one in six workers from developed countries has travelled, according to estimates by the International Labor Organization ( ILO ).

Those figures would have been unattainable without the recent accessibility of air travel.

Humanitarian Aid Comes From Heaven.

On the other hand, aeroplanes have played a main role in moving humanitarian aid to places that can be very difficult to access by land. In recent weeks, several countries have sent vital supplies, special equipment and other items to areas devastated by natural disasters, including the United States, Panama, Puerto Rico and Mexico.

It should be noted that the United Nations World Food Program (WFP) transported more than 62.5 thousand tons of food by air to victims of floods, conflicts and epidemics in 2015.

The UPS parcel company carried out another significant case of this trend: it transported more than 375 thousand influenza vaccines from the United States to the Lao Democratic Republic, using a plane that had refrigerators to preserve the safety of said vaccines.

With these facts in mind, it isn’t very easy to quantify all the positive effects of aviation on society. However, in recent decades the progress that has occurred inside and outside the airline industry has been observed.

Innovation For The Development Of Global Aviation

The purpose of International Civil Aviation Day is to help generate and reinforce global awareness of the importance of international civil aviation for the social and economic development of States and the unique role of the ICAO  (International Civil Aviation Organization) in helping them cooperate and realize a truly global rapid transit network at the service of all humanity.

Now that the UN and the nations of the world have adopted the 2030 Agenda and embarked on a new era in the sustainable development of the planet, the importance of aviation as an engine of global connectivity has never been more relevant to the goals of the Chicago Convention to view international flight as a fundamental enabler of world peace and prosperity.

Every five years, coinciding with ICAO anniversaries, the Council of this body establishes a special anniversary theme for International Civil Aviation Day. Council representatives select a theme covering the intervening four-year period between these anniversary years.

The Council has decided that, between now and 2023, the theme of this day will be: “Encouraging innovation for the development of global aviation”.…

The Importance Of Aviation In Economic-Social Development

Transportation in Latin America has a very important deficit in infrastructure that has hindered its economic and social development since the 20th century, both in terms of land, sea and air transportation. To this weakness, if we add the great distances that exist in the region and the orographic difficulties derived from the mountains, jungles, rivers, etc., the most efficient and safe form of transportation is found in aviation.

Because we say that the industry air is important for economic-social development.

Economic Development

Directly, the airline sector is a great generator of regional wealth. It is an important creator of direct, indirect and induced employment (airlines, airports, related administrations, ground services, catering, hotels, restaurants, etc.). It is one of the main means of entry of foreign currency into the country, whether by tourism or by export, since although in volume this industry has a small relative weight compared to the naval or land industry, it does have a very relevant importance in terms of the value of what is transported. It is the transportation channel that facilitates and promotes the conduct of business, where foreign investment is developed and which generates a direct relationship between economic development and a country’s international connections.

Social Development

Air transport should not only be seen as a tool for economic development. In Latin America, it is also the most relevant tool for social development.

As we had indicated, derived from the deficit in land transportation infrastructure and the geographical nature of Latin America (great distances and orographic difficulties), air transportation has become a vital factor in facilitating the mobility of people from poor areas to the rich to prosper economically and socially and later return to their places of origin to visit their loved ones. It is the fastest channel to bring social resources (health, education, etc.) to the most disadvantaged sectors of the population from the most developed areas of the region. In addition, aviation has been fundamental in mitigating the effects of natural disasters and providing a rapid response to the needs of these areas affected by earthquakes, floods, etc. Therefore, air transport promotes equal opportunities, the correct distribution of social goods and the cohesion of the region’s territories.

Variables Of Sustainable Development

Once it is clear that the aviation industry is very relevant for economic-social development, it is important to identify the variables necessary to make its growth sustainable and thus contribute to the region’s development in the long term. These variables are Regulation (tax, labour, operational, etc.) that is clear and that, without undermining the rights of passengers and members of the industry, is flexible and adapts to the volatility and speed of change in the industry; Infrastructures efficient and effective that make air transport grow and reduce its costs to favor lower fares and thus be able to reach more future passengers; Commitment of the governments of the region to support the industry as a whole, given that this support and this alignment in infrastructure, regulatory, tourism policies, etc. will benefit all the inhabitants of the region.

IATA and ALTA are playing an important role in spreading the importance of the industry and, therefore, aligning all its participants to achieve the economic-social objectives in the region as quickly and efficiently as possible. Therefore, it will be one of the focuses of the 10th edition of the Wings of Change 2018 conference, on April 4 and 5 in Santiago, Chile, where the main authorities and executives of the airline industry meet every two years.…

Airplane Turbulence: Everything You Need To Know

Air turbulence, although a common experience in air travel, can often cause restlessness and nervousness among passengers. But what exactly is turbulence, and why does it occur? In which part of the plane is the most noticeable? Can aplane crash due to severe turbulence?

Join us in this post and discover why turbulence is a natural and safe aviation phenomenon.

What Is Turbulence?

We call turbulence the changes in attitude and altitude of an aeroplane caused by the variation in the direction and speed of the air it is flying.

Although they can be disconcerting, it is important to understand that aeroplane turbulence is a normal part of air travel. And, like potholes on the road, turbulence is something that pilots and airlines are prepared to deal with.

What Causes Them?

The million-dollar question: Why does turbulence occur? The main cause of turbulence is the weather. These include clouds, mountain waves, possible storms or storms, normal air currents, and high-speed air currents or jet streams. About the latter, you can read more in our post about the Coriolis effect.

In addition, construction and terrain around airports can also cause turbulence. As? Well, because the wind, which usually travels straight, collides with buildings and changes its direction, and, in this way, turbulence occurs when the aircraft passes through that mass of “scrambled air.”

And have you ever wondered why there should be a minimum separation between planes that are flying? The answer is to avoid turbulence.

Coming into contact with the wake of a preceding aircraft can cause turbulence, which is why it is important to respect the minimum distances between aircraft.

If you are interested in the topic, we have a whole post about aircraft wake turbulence. I’m sure you’ll love it!

Investment In The Aviation Industry’s Lower Carbon Future Must Be Linked To The Worker-Led Transition.

COP28, Dubai, United Arab Emirates – On International Civil Aviation Day, the International Transport Workers’ Federation (ITF) is today calling on governments the world over to implement subsidies and incentive programs to ramp up the production of sustainable aviation fuels (SAF) to ensure the industry meets its decarbonization targets and enable it to focus on upskilling and retaining staff as part of a just transition to a sustainable future.

“Right now, airlines are trying to stimulate SAF production by creating confidence in demand through offtake agreements for future production,” said ITF Assistant General Secretary Rob Johnston, speaking at COP28 in Dubai. “But the simple truth is that’s not enough. There’s still not enough SAF to go around, it’s not being produced fast enough, and what little is being produced is anywhere from two to ten times more expensive than traditional jet fuel.”

“Governments are needed to drive action at scale, to incentivize production to make SAF more available and more affordable so the industry can meet its targets and start active planning to certify, train and retain staff.”

“The aviation industry is in the spotlight at COP28. We are seeing increasing calls for a new carbon tax on aviation to help bridge the global climate finance gap. We accept that aviation must pay its fair share towards the transition, but there must be robust conditions to ensure that any new measures deliver a just transition,” said Johnston.

Producing and utilizing SAF will require a highly skilled workforce, and as there are several types of SAF and SAF pathways, the training and licensing of engineers and associated workers could be equally diverse.…

Beta Technologies

BETA Technologies is one of the world’s most important development companies for electric aviation systems. It became famous in 2021 when it presented its ALIA-250 model, a vertical takeoff and landing (eVTOL) helicopter designed to serve as an air taxi in large cities. However, its main bet is not that the ALIA CTOL has already flown almost 42,000 test kilometres and has shown great reliability.

The ALIA CTOL is an electric conventional takeoff and landing (VTOL) aircraft already licensed by the Federal Aviation Administration (FAA) of the United States and could obtain approval for commercial use in 2025. Its last trip covered the route between the BETA Technologies headquarters, which is located in Vermont, and the Duke Field military base, Florida. In total, approximately 3,200 kilometres.

The plane took 12 hours to travel that distance and only needed a stopover in Syracuse. Along the way, he had to cross the airspace of Boston and New York City. He had to obtain administrative authorization to do the same in Washington, DC, a restricted flight zone (FRZ). It is the first electric aircraft in history to be awarded.

Charging Facilities And Other Uses

Regarding the aircraft loading facilities, BETA Technologies already has 14 operational. However, it is building or developing another 60, allowing it to carry out increasingly longer routes without any problem. The company has also agreed to carry out human-crewed flights for the United States Air Force and ArmyIt has even delivered a mobile flight simulator to train its pilots.

It is worth remembering that Beta Technologies’ ALIA CTOL stands out in several aspects. The first is its ability to travel long distances without generating greenhouse emissionswhich is one of the great problems of current aviation. In addition, it hardly generates noise, which helps reduce noise pollution in large cities and developments near major commercial airports.

“Sustainability will involve many supporting initiatives, each requiring different levels of expertise. Airlines, airports, ANSPs, and OEMs must be ready for this reality and start thinking about how they will reskill and retain workers now,” Johnston added. “Workers must be consulted throughout the process to ensure a smooth and just transition to a sustainable future.”

Johnston emphasizes that spending money on training will continue to be squandered without addressing the root causes that have created chronic staff shortages that have plagued the industry for decades.

“Aviation companies need to get their sums right so we don’t repeat history. Currently, investment in training is often wasted as low wages, erratic shift patterns, and a lack of job security result in aviation staff seeking greener pastures in other industries. Then the training cycle starts all over again.”

“The industry’s longevity depends on attracting and retaining a diverse workforce. Part of this transition must include providing job security and creating conditions that ensure women have the same opportunities. True sustainability has social and governance elements as important as reducing carbon.”…

The Airline Sector Must Invest In New Technology: OAG.

Currently, the airline industry is in the process of technological transition to improve its position in the value chain since, at this moment, two systems are operating in parallel: the traditional system and another modern, dynamic, and adaptable system that will allow better future for the industry, stated the consulting firm OAG.

The system runs on modern cloud-native software solutions that can be easily integrated with other business applications so airlines can gain real-time insights into customer behaviour or make decisions based on data-driven analytics results.

Furthermore, this new system is driven by two underlying trends that are closely intertwined: new technologies and changing customer needs.

New technologies allow airlines to offer products in more flexible ways. One example is NDC (New Distribution Capability), which provides more individualized inventory packaging through indirect channels.

But there are many more instances, such as modern software solutions that leverage machine learning and enable better techniques to predict and meet traveller demand.

A company like Hopper, for example, analyzes billions of historical price points associated with flights to predict future air travel ticket prices accurately. This company surpasses the forecasting capabilities of many airlines, which continue to use classic ways of modelling passenger demand.

The consulting firm assures that today’s travellers are easily used to buying everything they need on Amazon. The airline retail experience seems outdated and needs to change.

Customers expect to purchase airline tickets and related services with the same convenience they find on other e-commerce platforms. This puts pressure on airlines to enable better customer experiences.

Together, these trends have led to a rapidly growing ecosystem of Travel Tech companies, many startups, to own the end consumer through customer-facing mobile applications.

Most Travel Tech players leverage digital technologies, such as machine learning and artificial intelligence, to serve customers in ways the legacy system does not allow. And more importantly, these companies can drive the entire airline industry towards a modern, dynamic and customer-friendly model in almost exponential ways.

Furthermore, the system transition also affects how physical aircraft are propelled through the air, such as sustainable aviation fuel (SAF). This technology is increasingly replacing conventional jet fuel amid growing concerns about sustainability among travellers (and the public).

As a whole, the aviation industry is naturally risk-averse. Given this, airlines are hesitant to abandon the traditional system completely. This is mainly due to the misconception that such a system provides greater stability since it has existed for a long time.

The airline industry has long been a notoriously low-margin business, so that’s unlikely to change anytime soon, even though U.S. airlines expect to generate a record profit of $1 per passenger in 2023. So, airlines tend to stay away from more radical transformation efforts. “For such a significant change to occur, initial investments are required, which do not pay off immediately.”

As 2023 progresses, it becomes evident that the airline industry can no longer wait to change things. Many of the most recent IT outrages support the idea that the perceived better stability of the traditional system is a significant misconception.

The benefits that come with modern systems will lead not only to better-performing operations but also to more satisfied customers.