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Subsidies in aviation

Gössling, Stefan LU ; Fichert, Frank and Forsyth, Peter (2017) In Sustainability 9(8).
Abstract

Relatively little attention has been paid to the existence of subsidies in aviation. As the sector's importance for economic development is often highlighted, this paper seeks to provide a conceptual overview of the various forms of subsidies in aviation, as a contribution to a more holistic understanding of economic interrelationships. Based on a purposive sampling strategy, existing forms of subsidies are identified and categorized along the value chain. Focus is on industrialized countries, for which more information is available. Results indicate that significant subsidies are extended to manufacturers, infrastructure providers and airlines. These contribute to global economic growth related to aviation, but they also influence... (More)

Relatively little attention has been paid to the existence of subsidies in aviation. As the sector's importance for economic development is often highlighted, this paper seeks to provide a conceptual overview of the various forms of subsidies in aviation, as a contribution to a more holistic understanding of economic interrelationships. Based on a purposive sampling strategy, existing forms of subsidies are identified and categorized along the value chain. Focus is on industrialized countries, for which more information is available. Results indicate that significant subsidies are extended to manufacturers, infrastructure providers and airlines. These contribute to global economic growth related to aviation, but they also influence capacity in global aviation markets, strengthen the market position of individual airlines, and create conflicts between airlines and the countries they are based in. While the actual scale of subsidies cannot be determined within the scope of this paper, it provides a discussion of options to empirically assess the effects of aviation subsidies on market outcomes. Finally, general conclusions regarding the impact of subsidies on the overall sustainability of the air transport sector are drawn: These include rapidly growing capacity in the aviation system, economic vulnerabilities, and negative climate change related impacts. Results call for a better understanding of the distribution, character and implications of subsidies.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Airlines, Airports, Aviation, Economic effects, State aid, Subsidies
in
Sustainability
volume
9
issue
8
publisher
Formas
external identifiers
  • scopus:85026445718
  • wos:000408861800010
ISSN
2071-1050
DOI
10.3390/su9081295
language
English
LU publication?
yes
id
2a25d0ab-5e49-49d9-b8e5-bc96e68c1b78
date added to LUP
2017-08-31 13:23:21
date last changed
2018-02-18 05:03:18
@article{2a25d0ab-5e49-49d9-b8e5-bc96e68c1b78,
  abstract     = {<p>Relatively little attention has been paid to the existence of subsidies in aviation. As the sector's importance for economic development is often highlighted, this paper seeks to provide a conceptual overview of the various forms of subsidies in aviation, as a contribution to a more holistic understanding of economic interrelationships. Based on a purposive sampling strategy, existing forms of subsidies are identified and categorized along the value chain. Focus is on industrialized countries, for which more information is available. Results indicate that significant subsidies are extended to manufacturers, infrastructure providers and airlines. These contribute to global economic growth related to aviation, but they also influence capacity in global aviation markets, strengthen the market position of individual airlines, and create conflicts between airlines and the countries they are based in. While the actual scale of subsidies cannot be determined within the scope of this paper, it provides a discussion of options to empirically assess the effects of aviation subsidies on market outcomes. Finally, general conclusions regarding the impact of subsidies on the overall sustainability of the air transport sector are drawn: These include rapidly growing capacity in the aviation system, economic vulnerabilities, and negative climate change related impacts. Results call for a better understanding of the distribution, character and implications of subsidies.</p>},
  articleno    = {1295},
  author       = {Gössling, Stefan and Fichert, Frank and Forsyth, Peter},
  issn         = {2071-1050},
  keyword      = {Airlines,Airports,Aviation,Economic effects,State aid,Subsidies},
  language     = {eng},
  month        = {07},
  number       = {8},
  publisher    = {Formas},
  series       = {Sustainability},
  title        = {Subsidies in aviation},
  url          = {http://dx.doi.org/10.3390/su9081295},
  volume       = {9},
  year         = {2017},
}