Private aviation is helping the economy now, in a post-covid world, more than ever. Believe it or not, opting for chartering a private jet helps you and your country. Your money goes not only toward a luxurious travel experience but also toward helping a family sustain their lifestyle. Private aviation directly affects economic growth and the job market. Not to mention, whole industries are powered through private jet charters, and the country’s prosperity is fostered.
This article will explore pointers, facts, and numbers on how private aviation plays a role in economic growth. Private aviation also plays a role in generating employment opportunities and increasing innovation. Global trade is directly affected by you taking a luxury private jet. This also helps enhance tourism and helps fund technological advancements in the field. This article will reveal the true effect of private aviation on the global and national economy.
Private Aviation ─ How it Helps the US and Global Economy
1. Powering Economic Growth
Private aviation acts as a catalyst for economic growth and creates a ripple effect in numerous industries. Recent research has proven that private aviation has a contribution of $150 billion to the global economy.
No doubt, this is a significant sum that stimulates economic activity, creates larger investments, and leads to the expansion of businesses. Private jets enable easy, comfortable, and efficient travel for business executives and entrepreneurs. This leads to new opportunities, increased incomes, more business partnerships, and therefore, economic growth.
2. Increasing Employment
Taking a private jet directly creates more jobs for people. The private aviation sector offers employment opportunities to thousands of workers globally. Approximately 1.2 million people are employed in the private aviation sector.
This number includes pilots, cabin crew, ground staff, and maintenance technicians. Indirectly, the private aviation sector offers more jobs to a range of people. This includes aircraft manufacturers, hospitality staff, and transportation staff. In total, specialists estimate that the private aviation sector gives jobs to around 3 million workers globally.
3. Helping the Tourism and Hospitality Sector
Taking a luxury private jet charter can contribute to local economies and local job creation. Not to mention, choosing private aviation also impacts tourism and hospitality. Customers with a high net worth utilize private jets for luxury and comfortable travel, leading to income for the tourism industry indirectly.
This is because customers then spend on accommodation, dining, entertainment, and cultural experiences increasing income and employment in the tourism sector. Popular tourist destinations rely greatly on the private aviation sector for high-profile customers.
4. Advancements in Technology
Private aviation is directly responsible for innovation in aircraft design, sustainability, and efficiency. Private jet manufacturers invest heavily in research and development for improved safety features, reduced emissions, and fuel efficiency.
These technological advancements not only affect the private aviation sector but the aerospace sector as a whole. Skilled engineers, manufacturers, and maintenance specialists are in demand by the private aviation sector leading to more jobs and technological progress.
Private Aviation ─ Numbers that Prove Economic Growth
A recent study by PwC revealed some numbers that proved how much the private aviation sector was affecting the economy. Before the pandemic, approximately 273,000 workers were employed by the private aviation sector, both part-time and full-time.
1.2 million jobs are accounted for by the private aviation sector, which represents $247B in output. That represents about 0.625 of GDP contributed to by the private aviation sector. This is at a time when Goldman Sachs predicted a 9% decline in the GDP in the first sector. This proves how important every industry’s contribution to the national economy is.
Private aviation takes care of smaller cities and communities, something that commercial airlines have failed to do. The private aviation sector fills the gap made by commercial airlines in rural areas. In smaller cities or communities, people taking private jets affect their economy greatly in a positive light.
In 2020, SherpaReport, a report for in-depth industry analysis, surveyed business airplane pilots and passengers. The survey proved that commercial airlines might not take you to obscure places even if you have to go there for work. On the other hand, private aircraft can take travelers anywhere they need to be. According to the report, 32% of the respondents had flown to an airport using private aviation that did not have a scheduled airline service. Shockingly, 42% of them had flown to an airport without any airline service.
We anticipate the increase of aviation deserts since commercial airlines focus more on profitable air routes. This causes a problem of large companies not being able to conduct business in less well-known states. Private aviation solves this problem and allows people to conduct business where they need to without relocation. A study showed that Peoria Illinois faced a loss of 12,000 jobs due to a lack of flights. Austin, Minnesota faces similar problems because the nearest airports are Minneapolis and Rochester. Rochester has very limited flights and Minneapolis is 80 miles away, making business difficult. Thousands of small and medium-sized businesses employing millions in the States also require clients, subcontractors, and vendors to use private aviation.
Small economies rely heavily on private aviation for a direct economic lift. The Greenville Downtown Airport in Greenville, South Carolina provides jobs to 547 workers. The airport has an annual payroll of almost $35 million and it’s economic activity is credited with $68.8 million. On a similar note, McKinney National Airport in Texas impacts the economy of the local community by $212 million annually. In summary, the revenue and economy of small communities are heavily dependent on you taking a luxury private jet charter.
The private aviation sector is a major factor responsible for economic growth, job creation, and technological advancements. The global economy, as well as smaller national economies, are heavily dependent on the financial contribution of the private aviation sector. The private aviation sector is the pinnacle of comfort and luxury in the US economy. We hope this article helped you pick a reliable private airport for your next journey.