IATA Breakfast Workshop:Air Connectivity - Recent Trends and Implications for Air Transport Policy
Tuesday 3 December
Aqaba, Jordan
Contents
2
The economic and social importance of connectivity 3
Defining and quantifying air connectivity 8
Key trends and findings 13
Towards sustainable air connectivity 18
Policy Implications and discussion 23
IATA’s Vision
”Working together to shape the future growth of a safe, secure and sustainable air transport industry
that connects and enriches our world”
EconomyAviation
Economic Stimulus
TradeInvestment
TourismR&D
Innovation
Business climate & employment
Passenger demand
Infrastructure
Open Borders
Connectivity
Regulatory Environment
Lower travel costs for passengers
Virtuous circle of connectivity and economic performance
8
What is air connectivity?
PASSENGER AND SHIPPER PERSPECTIVE
POLICY MAKER PERSPECTIVE
AVIATION INDUSTRYPERSPECTIVE
Ability to seamlessly travel by air from ones’ origin to destination in the shortest possible time.
• Degree a city or country is connected to the rest of the world through air travel
• Ability of the aviation network to transport freight particularly in the case of perishable goods and high-tech components; Important for:• Citizens’ social benefits, • Impact on a country’s economy
Important input for business planning- supply chains and partnerships building
Air connectivity refers to the access available to the global air transport network from a country’s major airports.
Direct Connectivity• Reflects direct services available from an airport. • Measured by the number and/or importance of destinations;• Can also consider frequency and/or capacity
Indirect Connectivity• Reflects destinations that can be reached using connecting
flights;• Connections are weighted as a function of quality;• Key factors: connecting time and diversion factor.
‘Hub’ Connectivity• For hub airports, reflects flight pairs that can be connected
taking into acccount mínimum and máximum connecting times. • As with indirect connectivity, connections can be weighted
depending on their quality in terms of diversion factor orconnecting time.
Types of Connectivity
IATA Air Connectivity Index
10
𝑨𝒊𝒓 𝑪𝒐𝒏𝒏𝒆𝒄𝒕𝒊𝒗𝒊𝒕𝒚= ∑ ( 𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒔𝒆𝒂𝒕𝒔 · 𝑾𝒆𝒊𝒈𝒉𝒕 𝒐𝒇 𝒅𝒆𝒔𝒕𝒊𝒏𝒂𝒕𝒊𝒐𝒏 𝒂𝒊𝒓𝒑𝒐𝒓𝒕 )
3 key elements:
• Frequency
• Available Seats per Flight
• Weighting of destination airport
IATA Air Connectivity Index - Destination Weights
11
0
0.2
0.4
0.6
0.8
1
1.2
PE
K
AT
L
DX
B
HN
D
LA
X
LH
R
OR
D
CG
K
HK
G
PV
G
FR
A
SIN
CA
N
CD
G
IST
DE
L
BK
K
ICN
KU
L
AM
S
DF
W
JF
K
DE
N
MA
D
SF
O
CT
U
SZ
X
ME
X
MU
C
BC
N
YY
Z
BO
M
SE
A
CL
T
SY
D
TP
E
LA
S
KM
G
SV
O
EW
R
Source: IATA Economics
Destination weights as a proxy for indirect connectivity
12
R² = 0.9544
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
IAT
A C
on
ne
cti
vit
y U
nit
s
ACI Connectivity Units
Source: IATA Economics based on IATA and ACI-Europe
Connectivity varies widely between world regions
13
49%
28%
42%
17% 65%
38%
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
Asia Pacific North America Europe Latin America Middle East Africa
2013
2018
By region- air connectivity (2013 and 2018), and air connectivity growth (2018 vs. 2013)
Growth 2013-2018
Source: IATA Economics
Domestic US and China drive high connectivity
14
Top 20 most connected countries in the world
27%
56%
16%114%
36% 49% 30% 56% 78% 20% 45% 33% 49% 70% 8% 42% 45% 31% 26% 32%
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2013
2018
Growth 2013-2018
Source: IATA Economics
But both also have multiple international gateways
15
21%
30%18%
9% 34%
26% 41%
13% 34%21% 17% 10%
34% 15% 27% 5% 13% 10% 25% 70%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
International-only connectivity
Source: IATA Economics
39%
44%
26%37% 22% 39% 26% 24%
48% 42% 25% 29% 42% 33% 24% 39%51% 28% 35%
0
100000
200000
300000
400000
500000
600000
700000
2013
2018
Global cities all have high air connectivity
16
Top 20 most connected cities in the world
Growth 2013-2018
Source: IATA Economics
17
Air transport connects Jordan to the rest of worldJordan’s connectivity at a regional level and how it has evolved
Source: IATA Economics based on SRS Analyzer
19
Aviation track record on improving efficiency: about 2x that of overall economy
19
IATA and World Resources Institute data
Discussion Questions
23
• What are the major impediments to greater air connectivity?
• What role for policy to influence connectivity outcomes
• What role for global standards, instruments, frameworks?