BRUSSELS, Jan. 29, 2025 /PRNewswire/ -- A landmark Oxford Economics study released today outlined BA's economic contributions in Europe, warning that restrictive government policies could jeopardise up to €120 billion in Foreign Direct Investment (FDI) and 104,000 jobs by 2030.
The study, commissioned by the General Aviation Manufacturers Association (GAMA) and European Business Aviation Association (EBAA), underscored BA's indispensable role in linking regions unreachable by other transport modes, attracting investments, providing essential medical transport and leading environmental innovations.
But proposals by EU regulators to cap short-haul flights and place slot restrictions on BA in certain airports would make Europe a less attractive destination for business, according to the study.
While acknowledging the need to reduce aviation's environmental footprint, the study said restrictive regulations could lead to troubling outcomes, including decreased BA activity that would cut FDI in EU member states by €76 billion-€120 billion by 2030 and reduce foreign-controlled entities (FCEs) direct employment in the EU by 57,000-104,000 by 2030.
The study said the employment fallout would be mostly felt in Germany, Italy and Poland, which have high levels of FCE activity and would experience larger connectivity losses.
"We should move away from the ban mentality and focus on policies that support innovation, decarbonisation, and competitiveness." Holger Krahmer, SG, EBAA.
Alternative solutions for more sustainable BA
While these policies could reduce BA emissions, the environmental benefits would be limited. In 2023, only 0.8% of all aviation emissions or 0.04% of overall CO2 emissions in the EU were attributed to BA.
Meanwhile, research has showed that increasing the use of Sustainable Aviation Fuels (SAF) has the potential to reduce CO2 lifecycle emissions per flight by up to 80% and could offer an effective path towards decarbonising the sector while preserving its economic benefits.
The industry has committed to ambitious goals, aiming for net-zero carbon emissions by 2050. The study underscores the need for effective R&D and industrial policies to support the development of a robust SAF supply chain in Europe to yield additional competitiveness benefits.
"We are leading the way in aviation's future by furthering advancements that mitigate carbon emissions and safety enhancing technologies to market first, before they scale up to commercial aviation. Misguided government proposals stifle our progress and investments." Kyle Martin, VP European Affairs, GAMA.
Full report: https://www.oxfordeconomics.com/resource/the-socio-economic-benefits-of-business-aviation-in-europe/
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