Aviation connectivity: EU and airlines take lessons from the Gulf and Turkey

Aviation connectivity is a qualitative assessment and a function of many things. Broadly, and over the longer term, connectivity at a point grows as air traffic grows. This means that connectivity is closely related to economic wealth; each drives the other. But connectivity is also subject to other factors that can both constrain and stimulate it.

In the fragile economic world of airlines economics these include aviation infrastructure, taxation, regulations on market access and airport charges, all of which are influenced by governments. Geography and geopolitical issues also play a part. Related to all of these factors, but also having a separate existence, are airline network strategies.

According to a 2015 ACI report, total airport connectivity in Europe increased by 39% from 2005 to 2015, but this relied more on indirect connectivity (up 51%) than on direct connectivity (up 18%). Indirect connectivity through the Gulf and Turkey has been responsible for much of this growth. Authorities and airlines in the EU have much to learn from the supportive aviation policies and ambitious strategies of airlines in those countries. Instead, there is often a reflex that seeks restraint of more effective models.

Airport connectivity is correlated with GDP, with two way causality

The ACI Europe Airport Industry Connectivity Report 2015 report defines the connectivity of an airport as the weighted number of weekly flights to non-stop destinations and to one-stop destinations involving flights of the same airline or of two airlines in an alliance or codeshare. Direct jet connections have a weighting of one, while indirect connections are weighted from one down to zero depending on total journey time. Turboprop flights are weighted less than one, even if direct, since they take more time. These are necessarily arbitrary allocations, but there is an element of logic involved.

There is a correlation between the size of a country’s economy, measured by gross domestic product (GDP) and its airport connectivity level (see chart below). This highlights the economic importance of having air connections to other countries, since the causality is two way.

Having a wide range of connections facilitates trade and business, in addition to leisure travel opportunities, and this brings economic growth. At the same time, economic expansion increases the demand for air travel and widens the range of destinations that can be profitably connected to a country.

 

Read more here.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

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