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Economic Issues

The aviation sector is often cited as an important economic sector and job engine. Airports are also said to be important for the business climate. This economic importance is often used as an argument for further growth. Recent studies have called the economic importance of Schiphol into question.

The added economic value of an airport is difficult to determine exactly. However, the added value is often overestimated by attributing many side effects to it. The media often talk about an added value of between 9 and 27 billion euros.

The value of a network is also overestimated. Many destinations are not essential to an economy. The number of jobs created is also systematically reported as high, for example by counting part-time jobs as full-time jobs. Or jobs are counted twice or included on improper grounds.

The economic contribution of the aviation sector is also supplemented with many financial and tax benefits that other sectors do not claim. Airlines do not pay tax on fuelled kerosene and no tax is levied on airline tickets. This gives the aviation sector an exceptional position and an unfair advantage over other modes of transport. Despite these advantages, the financial position of many airlines is not strong. The coronavirus has exposed how fragile this position is. Airlines were at the forefront of government support in many countries.

The good news is that there does not seem to be a relationship between growth in the number of flights on the one hand and growth in economic value and jobs on the other.

Key Issues

Economic benefits and costs of aviation

Economy does not grow due to Schiphol expansion

State Aid to Airports and Airlines