Page 28 - World Airnews Magazine January 2021 Edition
P. 28

IATA                                                                                                                     IATA


                                  INTERNATIONAL AIR                                                                             73%. Canada’s connectivity (-85% decline) was hit more heavily

                                                                                                                                than the United States (-72%). In part, this reflects the large do-



                                                                                                                                mestic aviation market in the United States, which despite a signifi-

                                  CONNECTIVITY CRISIS                                                                           cant passenger decline, has continued to support connectivity.


                                                                                                                                  Latin America suffered a 91% collapse in connectivity. Mexico



                                                                                                                                and Chile performed relatively better than the other most connect-



                                                                                                                                ed countries, perhaps due to the timing of domestic lockdowns in

                                                                                                        London                  these countries and how strictly they were enforced.
                                                                                                                                BEFORE THE PANDEMIC

                                                                                                                                Prior to the COVID-19 pandemic, the growth in air connectivity was a
                                                                                                                                global success story. Over the last two decades the number of cities

                                                                                                                                directly linked by air (city-pair connections) more than doubled while

                                                                                                                                over the same period, air travel costs fell by around half.
                                                                                                                                  The top-ten most connected countries in the world mostly
                                                                                                                                saw significant increases over the 2014-2019 period. The United

                                                                                                                                States remained the most connected country, with growth of 26%.
                                                                                                                                China, in second place, grew connectivity by 62%. Other standout

                                                                                                                                performers in the top ten included fourth-place India (+89%) and                               Shanghai
                                                                                                                                ninth-place Thailand (+62%).


                                                                                                                                  IATA research explored the benefits of increased air connectivity.
                                                                                                                                The standout conclusions are:
                                                                                                                                  •  A positive link between connectivity and productivity. A 10%



                                                                                                                                    rise in connectivity, relative to a country’s GDP, will boost


                                                                                                                                    labour productivity levels by 0.07%.

                                                                                                                                  •  The impact is greater for developing countries. Investments

                                                                                                                                    in air transport capacity in countries where connectivity is


                                           which the world’s connectivity has been   to other cities around the world - critical    currently relatively low will have a much larger impact on


                                           re-ordered over the last months. But the   for trade, tourism, investment and other      their productivity and economic success than a similar level of



              he COVID-19 crisis has had a dev-  important point is that rankings did not shift   economic flows. It is a composite measure   investment in a relatively developed country.





        Tastati ng impact on internati onal   because of any improvement in connectivi-  reflecting the number of seats flown to the   •  Tourism revenue may be reinvested to form capital assets. Air


        connectivity, shaking up the rankings of the   ty. That declined overall in all markets. The   destinations served from a country’s major   transport has contributed to greater employment oppor-



        world’s most connected cities, according   rankings shifted because the scale of the de-  airports and the economic importance of   tunities and wider economic benefits through the tourism





        to data released by the International Air   cline was greater for some cities than others.   those destinations.            catalytic effects, particularly in small island states. In emerg-




        Transport Association late last year.   There are no winners, just some players that   COVID-19 IMPACTS ON CONNECTIVITY     ing market economies, there may be a structural shortage of


                                           suffered fewer injuries. In a short period of

         •  London, the world’s number one most con-  time we have undone a century of progress   BY REGION                         demand, so tourism spend can fill in the gap.


           nected city in September 2019, has seen a   in bringing people together and connecting   (April 2019-April 2020, IATA Connectivity   •  Tax revenues increase from enhanced economic activity. Air




           67% decline in connectivity. By September   markets. The message we must take from   Index measure)                      connectivity facilitates economic activity and growth in a giv-


           2020, it had fallen to number eight.   this study is the urgent need to re-build the   Africa suffered a 93% decline in connec-  en country, which may have a positive impact on government                         New York

         •  Shanghai is now the top ranked city for   global air transport network,” said Sebastian   tivity. Ethiopia managed to buck the trend.   tax revenues. Q


           connectivity with the top four most   Mikosz, IATA senior vice president for mem-  During the first peak of the pandemic in



           connected cities all in China - Shanghai,   ber external relations.  April 2020, Ethiopia maintained connec-

           Beijing, Guangzhou and Chengdu.   The IATA 76th AGM held last year called   tions with 88 international destinations.         NEWS




         •  New York (-66% fall in connectivity),   on governments to safely re-open borders   Many aviation markets reliant on tourism,


           Tokyo (-65%), Bangkok (-81%), Hong   using testing. “The systematic testing of   such as Egypt, South Africa and Morocco,



           Kong (-81%) and Seoul (-69%) have all   travellers is the immediate solution to   were particularly severely impacted.


           exited the top ten.             rebuilding the connectivity that we have   Asia-Pacific saw a 76% decline in connectiv-               BELL OPENS COMMERCIAL




         The study reveals that cities with large   lost. The technology exists. The guidelines   ity. Stronger domestic aviation markets, such



        numbers of domestic connections now dom-  for implementation have been developed.   as China, Japan and South Korea performed


        inate, showing the extent to which interna-  Now we need to implement, before the   better among the most connected countries                       BUSINESS CENTRE



        tional connectivity has been shut down.  damage to the global air transport network   in the region. Despite the relatively large do-

                                           becomes irreparable,” said Mikosz.  mestic aviation market, Thailand was severely


        Ranking Sept 2019     Sept 2020     Air transport is a major engine of the glob-  impacted perhaps because of the country’s

                                                                                                                                                                                                       According to Bell, opening the CBC is
        1       London       Shanghai      al economy. In normal times some 88 million   high reliance on international tourism.                                     Worth International Airport (DFW).  one of a series of facility updates designed


                                                                                                                                                                      “As we continue to expand our



        2       Shanghai     Beijing       jobs and (US) $3.5 trillion in GDP is support-  Europe experienced a 93% fall in connec-       ell Textron officially opened the   footprint in Fort Worth, it is important   to accommodate for the growth that it

                                           ed by aviation. More than half of this em-  tivity. European countries saw significant




        3       New York     Guangzhou     ployment and economic value is at risk from   declines across most markets, although    Bdoors to its new Bell Com-       we create a space for our employees   expects to see from its participation in
                                                                                                                                                                                                      the US Army Future Long-Range Assault

        4       Beijing      Chengdu       the collapse in global air travel demand.   Russian connectivity has held up better      mercial Business Centre (CBC) in Fort   to innovate and think creatively,” said   Aircraft (FLRAA) and Future Attack Recon-




                                                                                                                                                                     Michael Thacker, Bell executive vice

                                                                                                                                    Worth, Texas late last year.

        5       Tokyo         Chicago       “Governments must realise that there   than Western European countries.                  Approximately 600 Bell employees   president of commercial business and   naissance Aircraft (FARA) programmes.

                                                                                Middle East countries saw connectivity

        6       Los Angeles   Shenzhen     are major consequences for peoples’ lives   decline by 88%. With the exception of        will work at the facility, which will house   technology innovation.   Other FLRAA- and FARA-related
                                           and livelihoods. At least 46 million jobs


        7       Bangkok       Los Angeles  supported by air transport are in peril. And   Qatar, connectivity levels reduced by more   operations including Bell’s commercial   “Having a dedicated facility for com-  expansions this year have included the

        8       Hong Kong     London       the strength of the economic recovery from   than 85% for the five most connected        programmes, global sales and customer   mercial business will allow enhanced   unveiling a new Manufacturing Technol-


                                                                                                                                                                                                      ogy Centre (MTC) in Fort Worth and the

        9       Seoul         Dallas       COVID-19 will be severely compromised   countries in the region. Despite border clo-     support and services.            collaboration throughout the entire   opening of a facility in Wichita, Kansas.
                                                                                                                                                                     enterprise and support Bell’s vision

        10      Chicago       Atlanta      without the support of a functioning air   sures, Qatar allowed passengers to transit     The Bell CBC is located in a former   to continue to advance the future of   Bell also said it has renovation plans for


                                           transport network,” said Mikosz.   between flights. It was also an important             American Airlines building near both   mobility and vertical flight.”  its Dallas headquarters. Q





         “The dramatic shift in the connectiv-  The IATA air connectivity index measures   hub for air cargo.                       Bell headquarters and Dallas/Fort



        ity rankings demonstrates the scale at   how well connected a country’s cities are   North American connectivity declined

                                                  World Airnews | January 2021                                                                                            World Airnews | January 2021
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