The International Air Transport Association (IATA) which represents some 290 airlines comprising 82% of global air traffic has released a new study showing that a more competitive air transport sector in Italy could generate nearly €20 billion in extra GDP to the nation’s economy and more than 200,000 additional jobs by 2037.
The IATA study, Italy Air Transport Regulatory Competitiveness Indicators, has found that although Italy’s aviation sector is competitive in terms of passenger and cargo facilitation, its airport and passenger taxes and charges are the seventh highest in the region, making Italy more expensive as a business destination and a less attractive choice for tourists. Italy’s application of Smarter Regulation principles also lags its regional peers, and airport and air traffic management charging processes lack transparency and are not aligned with International Civil Aviation Organization principles.
To maximize the economic and social benefits created by a successful air transport industry, the report recommends that Italy:
Remove or at least reduce the Council Tax, and avoid implementing the Italian Noise Emissions Tax for Civil Aircraft
Ensure transparent and fair airport charges through efficient consultation, aligned with international best practice
Focus on implementation of the National Airspace Strategy to further modernize Italian airspace
Air transport’s contribution to the Italian economy is already significant. The industry supports 714,000 jobs and contributes €46 billion to the economy, accounting for roughly 2.7% of Italy’s GDP. If the government adopts an agenda for competitiveness, 200,000 more jobs and nearly €20 billion in additional GDP could be generated by 2037. In contrast, the study estimates that only 19,000 jobs could be created in that same time period if Italian air transport competitiveness is not improved.
Also high on the aviation agenda is the environment. The industry is committed to reducing carbon emissions to half of 2005 levels by 2050. An interim target is for carbon-neutral growth from 2020, delivered with the help of the Carbon Offsetting Scheme for International Aviation (CORSIA). Progress has already been made: since 1990, CO2 emissions per passenger have been halved. Meeting the 2050 goal requires significant investment in new technology and sustainable aviation fuels. If the Italian government encourages these initiatives, not only would it demonstrate climate leadership, it would also create new economic opportunities.
“The strength of Italy’s manufacturing exports, its services, and its tourism industry relies on air transport. The more competitive its aviation sector, the greater the benefits to Italy in terms of prosperity and employment. The government can create a more competitive industry by reducing taxes and ensuring the process for deciding infrastructure charges is more transparent. Implementing the national airspace strategy will reduce costs and CO2 emissions. And carbon can be still further reduced if the government takes the lead to support the development of sustainable aviation fuels,” said Rafael Schvartzman, IATA’s Regional Vice President for Europe.
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