Growth in aviation and related security business is driving economic growth in Latin America and the Caribbean where it has created more than four million jobs and contributed US$107 billion to national earnings, according to a report by the Air Transport Action Group and Oxford Economics.

Global air freight carried annually amounted to 35 per cent of the
value of world trade but only 0.5 per cent of the volume, according to the study. The study indicates that the sector has emerged as a key driver for development in economies that ranged from lowincome and small to dynamic emergent giants such as Brazil and Chile. The report, ‘Aviation: Benefits Beyond Borders,’ outlines an industry that its authors say plays a larger role in Latin America, Caribbean and global economy than many would expect. In Latin America and the Caribbean alone aviation directly employs over 465,000 people, according to the study.

“If we include indirect employment at suppliers to the industry, induced employment from spending by aviation industry employees and the jobs in tourism that air transport makes
possible, this increases the regional figure to 4.6 million jobs,” ATAG executive director Paul Steele said. “Aviation’s economic benefits spread far beyond the monetary aspects,” said Steele.

“When you take into account the further benefits gained through the speed and reliability of air travel, the businesses that exist because air freight makes them possible and the intrinsic
value to the economy of improved connectivity, the economic impact would be several times larger.” Cargo volumes are projected to rise 6.1 per cent a year. The association says aviation supports 56.6 million jobs worldwide and contributes $2.2 trillion of the world’s gross domestic product.

 

Passenger numbers in Latin America and the Caribbean are expected to almost triple from 145.9 million in 2010 to 438.9 million in 2030, ATAG research indicated. About 1,500 commercial
airlines using nearly 24,000 aircraft serve 3,800 airports, the report says. Alex de Gunten, executive director of the Latin American and Caribbean Air Transport Association said the findings were “great news” but warned some factors could still affect the industry
in the region. He said government cooperation to keep up with the
industry’s growth was the key.

“Without their collaboration on issues related to infrastructure, taxation and lack of harmonisation of regulations across the region, the progress we have achieved during the last two decades
is at risk.”