International Air Transport
Association (IATA) has stated that a more competitive air transport sector
in Austria could generate an additional 14,000 jobs and nearly €4 billion in
extra GDP for the nation’s economy by 2037.
An IATA study, Austria Air Transport Regulatory Competitiveness
Indicators, recommends that to maximize the employment and prosperity
opportunities created by a successful air transport industry, Austria should fully
abolish the Austrian Air Transport Levy tax, ensure airport and air traffic
control services are as cost effective as possible, and focus on airspace
modernization, including promoting the Single European Sky and adopt innovative
technology and processes, harmonized with EU legislation, for passenger and
cargo facilitation.
The reduction in the Air Transport Levy in January 2018 was a positive
step. Passenger growth of 9.9% in 2018, and increased competition at Vienna
airport prove that, among other factors, the cutting of the tax has had a
beneficial effect. It is also evidence that the economy could be boosted
further by complete abolition of the tax: a PwC/A4E study estimated that
Austrian GDP would be boosted by €320 million a year from this policy action
alone.
Air transport’s contribution to the Austrian economy is significant. The
industry at present supports nearly 95,00 jobs and contributes €7.6 billion to
the economy, accounting for 2.1% of Austria’s GDP. If the government pursues an
agenda for competitiveness, an extra 14,000 jobs and nearly €4 billion in
additional GDP will be generated by 2037. In contrast, around 8,000 jobs could
be lost over the same period if Austrian air transport competitiveness is not
enhanced.
The environment is a key challenge and the aviation industry is committed to
reducing its carbon emissions to half of 2005 levels by 2050. Substantial
progress has already been made: since 1990, CO2 emissions per passenger have
been halved. Meeting the 2050 goal requires significant investment in
sustainable aviation fuels and new hybrid-electric technologies. If the
Austrian government were to encourage such investments, it would not only be
demonstrating climate leadership, it would also open up new economic
opportunities for the country.
“An agenda for aviation competitiveness can deliver exciting economic and
environmental progress in Austria. If the government finishes what it has
started, and abolishes the air transport levy, it will boost the economy. And
if this is matched with strategic policy support for sustainable aviation
fuels, carbon emissions can be cut faster,” said Rafael Schvartzman, IATA’s
Regional Vice President for Europe
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