Domestic aviation activity

Introduction

Air transport to, from and within Australia creates three distinct types of economic benefit.
Typically, studies such as this focus on the „economic footprint‟ of the industry, measured by its
contribution to GDP, jobs and tax revenues generated by the sector and its supply chain. But the
economic value created by the industry is more than that. The principal benefits are created for
the customer, the passenger or shipper, using the air transport service. In addition, the
connections created between cities and markets represent an important infrastructure asset that
generates benefits through enabling foreign direct investment, business clusters, specialization
and other spill-over impacts on an economy’s productive capacity.

Positive Effects on Economy

Aviation has some distinctive effect on Australia’s economy throughout the whole country from
outside and within the country region. Such important effects can be seen by these following
notes-
 This sector alone can contribute to upto 36 billion of Australian GDP which 2.6% of total
country’s GDP, this indicates how important the Australian aviation system is.
 Among those 36 billion, 11 billion comes from the supply chain management and
employment of aviation program and other associated sectors.
 Overall there is 43.6 billion CATALYC benefit received by the tourism associated with
Australian aviation system, which 6.2% of total country’s GDP.
 This sector supplies the country with around almost 312,000 employments throughout the
whole country which is a huge amount for any other sectors comparing.
 This sector supplies more high productive jobs than any other sectors alone.
(Aviation Activity Forecasts,2009,retrieved from
https://www.sydneyairport.com.au/corporate/~/media/files/corporate/environment
%20plan/master%20plan/2009/05aviation%20forecasts.pdf)

Not only country’s GDP, it has created a huge amount of impact upon public finance like-
 It has paid almost around 3.2 billion $ tax for Australian employees, social securities and
companies on the level of tax paid benefit.
 It is also noticeable that almost 2.6 billion $ of government income has been inititated by
this aviation sector.
  Also about 1.8 billion $ benefit has come from taxation of the activities supported by the
spending of employees of both the aviation sector and its supply chain.

(Japan and China’s rivalry for Asia’s aviation sector,  November 20, 2015, retrieved from
http://globalriskinsights.com/2015/11/japan-and-chinas-rivalry-for-asias-aviation-sector/ )
( Domestic aviation activity, 15 July, 2016, retrieved from
https://bitre.gov.au/statistics/aviation/domestic.aspx)
Here we can see a significant amount of increase in the number of passengers in domestic RPT
during last few years (Sep 15- May 16 ). It has increased upto 2.6% during last few months
alone.
From visiting family and friends to shipping high value products, 78 million passengers and
709,000 tonnes of freight travelled to, from and within Australia. More than 86,400 scheduled
international flights depart Australia annually, destined for 61 airports in 39 countries.
Domestically, more than 603,000 flights make over 71.6 million seats available to passengers
annually, destined to 127 airports.
It means now a days people are more traveling with and towards their family by using air ways
which has significantly increased the number of passengers in domestic airlines in Australia. As
the cost of traveling with airlines has been decreasing so the interest of general people to travel
by air is getting increased day by day which is reflected by this references. For this economy of
Australia has taken a upward high turn with positive growth.
Air passenger’s resident in Australia comprise approximately 58 million of the passenger total.
For the 78 million passenger flights in total, passengers pay AUD 80.7 billion (inclusive of tax),
with Australian residents paying around AUD 60.0 billion. This expenditure is likely to
significantly understate the value passengers actually attach to the flights they use. Calculations
by Oxford Economics suggest the value of the benefit to travelers from flying, in excess of their
expenditure, is worth AUD 57.1 billion a year (AUD 42.5 billion for Australian residents).

Summary of annual RPT activity

  YE May 2015 YE May 2016 Growth

Total passengers carried   57.26 million   58.25 million     1.7 %

Revenue passenger kilometers   67.46 billion   68.67 billion     1.8 %

Available seats   76.53 million   77.34 million     1.1 %

Available seat kilometers   88.24 billion   89.12 billion     1.0 %

Load factor   76.4 %   77.1 %     0.6 *

 Aircraft trips  632.6 (000s)  638.2 (000s)     0.9 %

*percentage point difference

( Domestic aviation activity, 15 July, 2016, retrieved from

https://bitre.gov.au/statistics/aviation/domestic.aspx)
Here we can see the growth of Australian aviation activity by the passage of time. The amount of
aviation activities can be easily seen to receive a booster. It has enabling long-term growth
connecting urban Australia with the other parts of the world. On average there were 6 outbound
flights per day along these routes. So monthly there has been a increase of flight of around 200 in
and out from Australia. It has helped to open market for Australia exports.
Lowering transport costs, particularly over long distances routes within Australia and outside
Australia for connecting every parts of the country together, helping to increase competition
because suppliers can service a wider area and potentially reduce average costs which will
eventually turn up the revenue both for public and government works, crating impact throughout
the Australian social & economic status becoming the leading aviation sector in the entire Asian
region. It has also been speeding up the new business strategies for this sector, no matter what
the risks are this potential economic growth is attracting a lot of attention in the public & official
sectors of investors.
Interest for air travel relies on upon such elements as salary levels and airfares. At a worldwide
level, salary is spoken to by Gross Domestic Produce (GDP) — for Australia and for the world.
Patterns in these measures powerfully affect request. Relapse examination of the effect of GDP
and airfares on activity interest was attempted for a large portion of the business sectors. The
evaluated connections, together with presumptions about the future improvement of the causal
variables, were utilized as a premise for determining traveler numbers. Suppositions about carrier
estimating and flying machine organization procedures to meet future client interest were fused
into the figures. This procedure checked the flying machine sorts in the current carrier armadas,
the numbers and sorts of flying machine on request and the adaptability of the carriers to modify
conveyance plans. Traveler conjectures were deciphered into flying machine development
figures utilizing suspicions about normal burden variables and flying machine size. These last
variables were impacted via carrier reaction to improvements in traveler request. The monetary
standpoint has been, and will keep on being, the main consideration influencing the volume of
air movement. As a consequence of the budgetary emergency, Australian financial development
declined essentially, from 3.7% in 2007-08 to 1.3% in 2008-09. The aggregate world economy
declined marginally in 2009. Chinese development tumbled from 13% in 2007 to 8.7% in 2009.
On all fragments, it was set up that interest would become emphatically over the figure period,
energized by financial development. Carriers are foreseen to expand limit and match with the
interest bringing about the heap variable staying at an abnormal state. Financial recuperation is
on track in Australia, with positive development each quarter subsequent to the last quarter of
2008 — most as of late an especially solid quarterly rate of 1.2% was accomplished for the 2010
June quarter. Recuperation is happening in many nations, incorporating into the OECD as a
entire and in China. The financial gauges utilized as the premise for the activity figures are those
distributed in July 2010 by the Australian Government and the International Monetary Fund.

Australia country report for aviation activity

1. Consumer benefit
Valuing the customer benefits should be the first and foremost attraction to create a huge boost in
this sector. Because if customers get what they want they will get interested more to use this
sector for their benefit. On the other hand, if their expected rate for fair of each flight gets
beating down by the real fair they will lose interest in more additional flights and occasionally
will use their money for other uses creating a huge gap in the economic sector. So creating and
thinking about customer benefit during making plans for these aviation activities should always
increase the benefit and revenue in general.

2. Enabling long-term growth

 This projects the linkativity between the major cities of Australia and the markets outside
the Australian region. We can see that there has been a major and sophisticated change in the
sector of connecting cities across the world to Australia and also between Australia. This creates
enormous potential growth opportunities for Australia to sink up with outside markets to boost
up their economic growth for a very foreseeable future. A number of the city-pair connections
making up Australia’s domestic and international air transport network have point-to-point
services, where passenger flow density is sufficient to make the economics work. However,
many of the city-pair connections that make up Australia’s connectivity to overseas markets can
only be served by airlines aggregating flows from a number of origins through a hub airport in
order to generate a sufficiently dense flow of passengers. Improvements in connectivity have
been accompanied by a steady fall in the cost of air transport services. The cost of air transport
services, in real terms, has fallen by around 1% a year over the past 40 years.
(Aviation – The Real World Wide Web”, by Oxford Economics. Available at
http://www.oxfordeconomics.com/samples/airbus.pdf )

3. Connectivity
There were 4.30 million passengers carried on Australian domestic airlines (including regional
operations) in March 2008, an increase of 10.1 per cent on March 2007. The number of
passengers carried reached 48.37 million for the year ending March 2008, an increase of 7.2 per
cent on the year ending March 2007.
(AVIATION STATISTICS Australian Domestic Airline Activity, March 2008, retrieved from
http://www.rex.com.au/AboutRex/InvestorRelations/Files/BTRE/otp_mar08.pdf )

It has clearly been shown that the economic growth is massively effected by the activities of
aviation of Australia. Not only the benefits gained by domestic flight gain but also there are
some great opportunities for potential tourism.
The foreign tourist is arrived by almost all with the help of air ways, we can see the percentage is
almost 99.025%. so it is so clear that most of the tourism beneficial are coming from the way of
airlines. A near perfect 99 per cent of international buyers and Australian sellers expressed their
satisfaction with the 2016 Australian Tourism Exchange held on Queensland’s Gold Coast in
May. Theses tourists are mainly depended on airway to do their traveling.
(Top marks for ATE16 on Gold Coast, 10 August 2016, retrieved from
http://www.tourism.australia.com/news/news-stories-18083.aspx )

Conclusion
All together these status, data and statistics suggest that Australian economic growth has been
effected most by their aviation activities during recent years and it has shown some great
potential for the future economic growth of this country. Also these productive data suggest that
there shall be a lot of great opportunities for future employment in this sector, no matter how
much time it takes this aviation sector is going to be proven the number one potential revenue
generating business sector both for private and domestic people. Also statistics is showing
healthy growth in tourism sector which is mainly being benefited by the increasing number of
flights taken by foreign people who are coming to Australia for traveling or business purpose. It
has certainly connected Australia with outside world and also in between own country.
Promising news are delivered because of this aviation activity suggests that Australian economy
will be much appreciable because of their aviation services.

References
Aviation Activity Forecasts,2009,retrieved from
https://www.sydneyairport.com.au/corporate/~/media/files/corporate/environment
%20plan/master%20plan/2009/05aviation%20forecasts.pdf

Japan and China’s rivalry for Asia’s aviation sector,  November 20, 2015, retrieved from
http://globalriskinsights.com/2015/11/japan-and-chinas-rivalry-for-asias-aviation-sector/
Domestic aviation activity, 15 July, 2016, retrieved from
https://bitre.gov.au/statistics/aviation/domestic.aspx

Aviation – The Real World Wide Web”, by Oxford Economics. Available at

http://www.oxfordeconomics.com/samples/airbus.pdf

AVIATION STATISTICS Australian Domestic Airline Activity, March 2008, retrieved from
http://www.rex.com.au/AboutRex/InvestorRelations/Files/BTRE/otp_mar08.pdf

Top marks for ATE16 on Gold Coast, 10 August 2016, retrieved from

http://www.tourism.australia.com/news/news-stories-18083.aspx