Together with telecommunications, air transport represents the sectors that epitomize globalization in an economic as well as in a socio-political sense worldwide. A well functioning air transport sector offers significant economic development benefits, particularly for landlocked, isolated, and low population- density countries.
Air transport, compared with other infrastructure sectors such as roads, water, and sanitation, has the opportunity to develop commercially, with minimal fiscal requirements. This has been made possible due to,
- rapid technological change,
- falling real unit costs,
- industry consolidation,
- the low-cost carrier (LCC) business model,
- the existence of adequate pricing mechanisms, and
- consumer willingness to pay for safe, cost-effective services,
The implication is that the development and implementation of the best possible air transport policies will be an important part of a successful economic development and poverty alleviation strategy. The efficiency and effectiveness of a country’s air transport system, together with the rest of its transport network, are a crucial part of its investment climate. Improving these services encourages investment by business, which fosters economic development and growth.
