aviation and socio economic dynamics
TRANSCRIPT
1Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Aviation & Socio-EconomicDynamics of Nations
Dr. Wali MughniDecember 17, 2015
2Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
A global comparative study on
where we are, where we want to be,
and the Flight Plan to get there.
3Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
REFERENCESATAG (Air Transport Action Group). 2015. Aviation: Benefits BeyondBorders, March. Geneva: ATAG. Available at http://www.aviationbenefitsbeyondborders.org/.
IATA (International Air Transport Association). 2007. “Aviation EconomicBenefits.” IATA Economics Briefing No. 8, July. Available athttp://www.iata.org/whatwedo/Documents/economics/aviation_economic_benefits.pdf.
Oxford Economics. 2011. Benefits of Aviation studies. Available at http://www.benefitsofaviation.aero/Pages/download.aspx.
World Economic Forum. 2014. The Travel & Tourism CompetitivenessReport 2014. Geneva: World Economic Forum.
ERAU- Study on Pakistan and on other nations – 2015
STAR – Summary of Traffic & Airline Results - by Association of European Airlines – 2014
ICAO – World Aviation Forum Charts Course to Sustainable Aviation Benefits for Future Generations – November 2015
STATISTA: Global Statistics Website - 2015
4Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Overviewo Brief Intro
o Where is global Aviation going?
o References for Stats and Analysis
o Key Benefits. Regional & Global Prognosis
o Where are we? Recommended Flight Plan.
o Statistically Significant Inferences
o Q & A
5Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Growth of Aviation
6Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Affluence & Travel
7Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
o Aviation Jobs: 58.1 million(Aviation Jobs are 3.6x more productive)
o Economic Impact: $2.4 trilliono %age of Global GDP: 3.4% (GVA
18%)o Pax carried in 2014: 3.3 billion
RPK 5.5 trillion o Pax carried in 100 years: 65 bill
Global Stats
8Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
o Every day:o 8.6 million pax travelo 99,700 flightso $17.5 billion worth goods
o RPK 5.5 trillion per year (2012)
o FTK 185 billion tonneso 50 million tonnes carried (2012)
Global Stats
9
Region-Wise Growth
10Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
o Much of that growth has been driven by low-cost carriers (LCCs), controls 25 percent of the worldwide market;
o Growth also came from continued gains by carriers in developed markets, the IATA reported.
o Cost & Efficiency
o Yet profit margins are razor thin, less than 3 percent overall.
o Relationship to GDP
Drivers of Growth
11
12Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
13Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Economic & Social Benefitsof Aviation
14Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Air transport provides significant social benefits:
o Air transport contributes to sustainable development.
o By facilitating tourism and trade, it generates economic growth, provides jobs, improves living standards, alleviates poverty and increases revenues from taxes.
o Increasing cross-border travel is a reflection of closer relationship between countries
o $20 billion in R&D – benefitting all industries
Social Benefits
15Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Other Travel Modes Compared
16Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Aviation’s other significant social benefits:
o Highly skilled human resource
o Decision making ability
o Attitude – Risk Management – Time Management
o Globalization & Standardization
o Social & Economic Integration
Social Benefits
17Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Environmental Impacts:
o 688 million tonnes of CO2 emitted in 2014(was 705 million tonnes in 2013)
o CO2 emissions per seat Km reduced by 70%
o Target to reduce emissions by 50% (from 2005 levels)
o Air Traffic modernization (NextGen) could reducemillions of tonnes of CO2
Green Technology
18Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Aviation’s Environmental Plan
19Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Noise PollutionPopulation exposed to
noise above 50dB at night
20Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
21Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Domestic Incentives:
o Essential air service
o Socio-political routes
o Subsidy routes
Domestic vs International
22Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
“We urge governments in these high growth economies not only to create the environment for growth with liberalized traffic rules and by easing travel restrictions, but also to be mindful of the impact that a lack of planning can have for decades from now.”
Michael Gill, Executive Director, ATAG -2014
Statement to Recon
23Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Soft Power IndexHarvard Professor Joseph Nye – 1990
Correlation between Flight Connected Index & Soft Power Index
E.g. of SPI and AirlinesSingapore Airlines, Qatar Airlines, Emirates
24Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Bottom LineAviation is catalyst for:o Economic Growtho Positive Cultural Change Agento Soft Power Index o Human Resource Developmento Employment
25Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]
Simple but Strategic Flight Plan
o Awarenesso Will & Determination to Growo Education – basic to advancedo Infrastructureo Adaptation & Mindseto Dedication o We can do it … Insha’Allah!
26Presentation by Dr Wali Mughni, Dean, Institute of Business Administration & Aviation Sciences. +923218979014, [email protected]