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Newest information reveals that in 2023, there have been 3.9 million fewer enterprise air journeys in comparison with 2019
This week I attended an occasion the aviation trade hosted in parliament geared toward convincing the subsequent UK authorities of the “essential position of the sector in underpinning financial progress”. The decline of enterprise use of air journey undermines their argument.
New information launched by the Workplace for Nationwide Statistics final week highlights the issue with the aviation trade’s claims. The information, from 2023, offers a helpful benchmark as a result of by then the financial system was bigger (even after contemplating inflation), by round 1.8%, than it was pre-pandemic (2019). What this implies is that the restoration was full. All issues being equal, we might anticipate enterprise use of air journey subsequently to have re-bounded. Certainly, we would have anticipated a bumper yr for enterprise journey, as corporations caught up on journeys they couldn’t make beneath Covid restrictions, the discharge of pent-up demand. No such restoration has occurred.
In truth, in 2023, there have been 3.9 million fewer air journeys made for enterprise functions, a decline of 29% since 2019. Alongside this, enterprise spending on air journeys declined by £2.9 billion (-22%). This new information highlights an acceleration in a pre-existing development, described in NEF’s report final yr, of ‘decoupling’ of enterprise air journey and the financial system.
The determine under reveals that the variety of company air journeys per million kilos of actual GDP had been declining steadily from a peak of round eight flights per £million within the yr 2000, however has crashed following the pandemic to a brand new low of solely 4 flights per £million. Airline executives are well-aware of this phenomenon, and certainly have been adjusting their enterprise methods accordingly, however this hasn’t stopped the trade, and significantly airports, from making grossly exaggerated claims concerning the enterprise advantages of air journey progress, and significantly airport growth.
Determine 1: The variety of enterprise air journeys per £million GDP have fallen for the reason that pandemic
Apparently, new polling information reveals it’s not simply me who’s sceptical of the trade’s claims. The general public are too. Latest polling of six Western European nations, together with the UK, by Extra in Frequent, and analysed by NEF, reveals a whopping 74% of those that expressed an opinion have been extra inclined to suppose that “the financial system can develop with out individuals needing to fly extra” in contrast with simply 26% who leaned in direction of flying being “important for financial progress”. Apparently, even those that journey by air for enterprise weren’t satisfied, with 60% leaning in direction of the financial system having the ability to develop with out individuals needing to fly extra. Maybe most revealingly, simply 19% of enterprise travellers reported that ‘in the event that they didn’t fly for the subsequent 5 years’ it might ‘restrict their means to do their job correctly’ – hardly a ringing endorsement of air journey’s significance to enterprise.
The development away from company air journey is at the least partly (although not strongly) pushed by environmental issues and accountable enterprise. Nonetheless, to take care of aviation’s colossal environmental footprint stronger authorities motion goes to be required.
NEF has been campaigning for a frequent flyer levy as a way to sort out aviation’s local weather impression in a simply means. The coverage is seen as honest by the general public, with 47% supporting it as ‘very or considerably honest’ in contrast with simply 20% who see it as ‘very or considerably unfair’. Many enterprise travellers are among the many most frequent flyers, but curiously, our polling evaluation suggests this group are extra possible than common to see the coverage as honest, with 52% seeing it as ‘very or considerably honest’ in contrast with 22% who noticed it as ‘very or considerably unfair’.
Frequent Flyer Levy
Enterprise travellers | All | |
Very or considerably honest | 52% | 47% |
Very or considerably unfair | 22% | 20% |
Neither honest nor unfair | 21% | 21.8% |
Supply: NEF evaluation of polling carried out by Extra in Frequent
Whichever social gathering kinds the subsequent UK authorities will, eventually, must become familiar with the injury air journey is doing to the local weather. The progressive steps made by enterprise to maneuver away from reliance on common flying will make that job simpler, proving {that a} fast inexperienced transition will be delivered in a means which can be vastly helpful to the well being of the financial system and society. Charting the fitting course with honest and efficient coverage making will invariably imply pushing again in opposition to trade propaganda and vested pursuits.
Picture: iStock
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