Transport and Employment

Air transport

The events in the United States on 11 September 2001 had direct and dire consequences for the civil aviation industry and for the workers in that industry. Because of the strong fall in passenger demand, airlines were forced to reduce capacity in an industry that was already in crisis before that date. In the weeks immediately following the attacks, the air transportation sector announced more than 200,000 job reductions. This was the start of a restructuring process in the industry that continues until today. Several famous airlines disappeared as part of that process. From 2003, however, passengers lost their ‘fear of flying’ and traffic increased again, airlines added new capacity, part of the laid-off workers were recalled, losses were reduced but debt remain high.

In 2006, airlines almost broke even, despite high costs of fuel, and for 2007 a profitability of US$5 billion is projected. Since 2001, labour productivity has increased by 56%, distribution costs (electronic ticketing) are down by 13%, non-fuel costs by 15% and with load factors at a record high of 76%. The International Civil Aviation Organization (ICAO) estimates that about 4 million persons are employed in the air transportation industry worldwide.

The scheduled airline industry faces two main challenges. One is the environment, as climate change has become a real concern for airline customers and a political priority for many governments. The second challenge is the rapid growth of low cost airlines all over the world. They now account for 13% of global airline operations and are expected to claim an increasingly larger share of the market. In May 2006, 27% of the intra-EU seat capacity for scheduled flights was accounted for by low-cost carriers. This compares strikingly with the same share of just over 6% in May 2001.