Ash cost highlights value of air freight industry
- Latest News
- Thursday, 27 May 2010
The study, by economic forecasting consultancy Oxford Economics, found that passengers, airlines and the destinations themselves were not the only losers in the recent airspace shutdown.
In the first week after Eyjafjallajokull spewed its giant ash plume into the sky, the closure of large portions of European airspace resulted in US$4.7 billion of lost global GDP. Then, roughly 5,000 further flights cancelled through to 24 May added a further five per cent to that figure.
Speaking at the Beijing event, Adrian Cooper, chief executive at Oxford Economics, said: “The far-reaching impacts of the recent disruption to air transport have of course been felt acutely by travellers, airlines and destinations. But the impact has also been felt by those who rely on goods that are imported and exported by air freight, and on general production and productivity. The report shows the integral role aviation plays in the basic and everyday functions of society and commerce.”
The report says that for the seven-day period from 15-21 April, more than 100,000 fewer flights crossed European airspace than in the previous week, representing a 53 per cent fall. Net aviation sector losses amounted to US$2.2 billion after accounting for deferred travel; net visitor expenditure losses tallied US$1.6 billion after monies spent by stranded passengers were taken into account.
With more than seven million passengers and nearly all international regional travel involving Europe affected, the wider economic impacts have been felt across the globe.
Regional economic impacts of one-week aviation shutdown on GDP: Americas: US$957 million; Asia: US$517 million; Europe: US$2,632 million and MEAF: US$591 million in GDP.
