Economic Benefits of European Airspace Modernization

Aviation facilitates global contacts, mobility and trade. A superior connectivity performance minimizes travel costs for passengers, business and shippers. It generates agglomeration economies, productivity gains, trade, R&D and foreign direct investment in the wider economy. However, the European air transport system is not operating at its optimum level. Modernization of European airspace is progressing slowly and airport capacity is expected to fall short of demand growth.

The analysis presented in this report, commissioned by IATA, show the economic benefits of the modernization of European airspace and capacity growth at airports in line with the underlying demand. The total present value of benefits from airspace modernization was estimated at € 126 billion, compared to a scenario without airspace modernization. If also remaing airport capacity constraints were addressed, the present value would rise to € 153 billion. These benefits are driven by more passengers that are able to travel by air, less capacity constraints shorter travel times, less delays, lower airline operating costs, lower fares and more efficient ANSPs. Airspace modernization may result in an additional GDP contribution of € 245 billion. If remaining airport capacity constraints were also addressed, this number would rise to € 301 billion.

IATA published this press release about the study. You can download the European Airspace Study from the IATA website.

Category: actueel