THE AVIATION INDUSTRY

The Aviation Industry

The Aviation Industry

Introduction

Most governments and numerous regional and local authorities argue that the expansion of aviation is vital to the economy, there is no doubt that aviation industry contributes to the economy. According to a report by the European Union (http://www.acare4europe.com/docs/Flightpath2050_Final.pdf) aviation industry contributes € 220 billion to the economy of Europe each year and is responsible for 4.5 million jobs. However, official figures do not tell the whole story. In general, do not take into account the cost to the economy of climate change emissions, air pollution and noise. Costs do not include tax breaks the aviation industry enjoys tax-free fuel.

With a consolidated turnover of 19.3 billion Euros in 1997, the European aviation industry and civil military exports more than three quarters of its production, is one of the jewels of the British economy. It appears year after year to 1 or 2nd place in Europe, close to France, and the 2nd or 3 rd place in the world. This industry is characterized by the extent of its range of products which, although being somewhat rebalanced between its civilian and military sources still dominated by defense activities. The quadrupling of sales aviation in the 1980s, however, enabled the sector to increase its relative weight in the general aviation industry increased from 26 to 42% of total turnover.

Discussion

The data set for this study has been collected from the Traffic at UK airports: annual, 1950 onwards, that include the air transport movements (i.e. landings and takeoffs) and terminal passengers (i.e. arrivals and departures). The study has been divided into two parts, first part of this consist of the analysis on the data set using correlation and regression analysis, while, the second part has been analyzed through the time series.

Part 1

Air Transport Movements Over Time

Air transport movements in terms of aircraft landings and take-offs over a period of time are shown in the table below, it can be analyzed there exist an increasing and upwards trend in the movements. The air transport movements accounts a gradual increase with the passage of time, from 1980 to 88, the increase in the air transport movement was a bit lower, however, it can be seen that in 1988 the air transport movement has reached to 1,250,000 and since then there is a rapid boost in this movement as it has reached to around 2250 in 2005.

Terminal Passengers Over Time

The terminal passengers with respect to arrivals and departures over time are shown in graph below (Figure 2, there is also an increasing trend in terminal passengers.

Figure 2

There is a constant increase in arrivals and departures of passengers over a period of 1992 to 2003; however, this trend seems to decreasing from 2007 onwards as there is a decline observed in the air transport movements.

Correlation Coefficient between “Air Transport Movements” and “Terminal Passengers”

In statistics, the Pearson correlation coefficient is an index that measures the relationship between two random variables. Unlike the covariance, the correlation of Pearson is independent of the scale ...