Narrowing down to just one sector of the commercial aviation industry that has the most significant impacts on the U.S and the global economy is onerous. The global air transport industry is more extensive than both the automobile manufacturing sector and the pharmaceutical manufacturing sector by GDP (Eriksson & Steenhuis , 2015). If air transport were a country, its GDP would rank 20th in the world, similar to that of Switzerland or Argentina. The most popular forms of transportation in the mid-twentieth century were railcar, and automobile water transport would take weeks for international travels. The aviation industry uniquely connects the world, adding immense value to the global economy.
The industry supports 2.7 trillion in world economic activity translating to 3.6% of global gross domestic product. The world’s airlines carry over four billion passengers a year and nearly 62 million tons of freight. Providing these services creates 10.2 million direct jobs and contributes $704.4 billion to global GDP. These include jobs and services of suppliers to the air transport industry, such as aviation fuel suppliers; construction companies, suppliers of sub-components used in aircraft, manufacturers of goods sold in airports, and a wide variety of business services, such as call centers, IT and accountancy (Eriksson & Steenhuis , 2015). These indirect activities contributed approximately $637.8 billion to global GDP in 2016 alone. Employees in the air transport industry using their income to purchase goods and services for their consumption create about $454 billion induced GDP. The spending of those directly or indirectly employed in the air transport sector supports jobs in industries ranging from retail and manufacturing to banking and hospitality. Tourism is fast becoming one of the world’s largest enterprises, and air transport is essential to this: over half of all international tourists fly to their destinations. Conservative analysis suggests aviation supports $896.9 billion in economic activity within the tourism industry.
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References
Eriksson, S., & Steenhuis, H. J. (Eds.). (2015). The global commercial aviation industry . Routledge.
