Open skies ‘would generate $500bn’
Liberalising restricted air service agreements would generate billions of dollars and millions of jobs, a study claims.
The research by the Pacific Asia Travel Association and 11 industry groups covers data from 190 nations and 2,000 international air routes.
Creating open skies between the UK and US alone would create 117,000 new jobs and generate $7.8 billion in economic value, the study shows.
It also found that countries with liberalised air regimes saw air traffic grow by at least 12%.
PATA president and CEO Peter de Jong said: “The benefits to global economies from open sky policies are real and substantive.
“For example, liberalising just 320 of the world’s 2,000 restrictive air routes would generate economic value comparable to the Brazilian economy, generating 21.1 million full-time jobs and a $490 billion contribution to global wealth.”
The economic Impact of Air Service Liberalisation study is based on an economic model developed by InterVISTAS Consulting, whose president Jon Ash said: “International commerce today is still governed by a framework of rules laid down in the post-World War II era.
“Despite today’s trend towards global markets, free trade, the internet and the economic integration of entire continents, one of the most global, technology-intensive industries – commercial aviation – remains encumbered by rules that stifle competition and prevent airlines, communities, passengers and shippers from benefiting to the fullest.”
Report by Phil Davies
Phil Davies
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