Aviation in Sri Lanka Airports in Sri Lanka - Map 
Air transport industry that drives economic and social progress
Air transport forms a unique global transport network linking continents, regions, countries and cultures. It is increasingly accessible to a greater number of people who can now afford to travel by air for leisure and business purposes. Air transport is a growth industry. The long-term demand trend is always positive and it is expected that the numbers for passengers and fright are likely to double within the next 12 to 15 years. Over 1.8 billion passengers rely every year on the world’s airline for business and vacation travel and estimates suggest that by 2010, the number of people travelling by air could exceed 2.3 billion.
Economy
Air transport is essential for world business. It creates jobs, reduces the cost of trade and opens up new market opportunities by attracting businesses to locations in the developed and developing world. It moves products and services quickly over long distances and enables economic and social participation by outlying communities. Many industries could not survive without air transport. The total economic impact of air transport on gross world output amounts to at least US $1,360 – which comprises US $ 320 billion in direct impact, US $390 billion in indirect impact, and US$650 billion in induced impact. Over 29 million tones of freight a year are transported by air, representing 40%, by value, of the world’s manufactured exports, Over half of all international tourists, excluding those travelling within Europe, travel by air. Air transport thus provides the foundation for travel and tourism-which is the largest industry in the world. Air transport is one of the fastest growing sectors of the world economy with expansion rates 2.4 times above Gross Domestic Product (GDP) rates on average.
Employment
Air transport itself provides 28 million jobs worldwide – and is expected to provide 31 million by 2010. This includes the direct employment of nearly 4 million people, over 8 million who are employed indirectly and an induced impact conservatively estimated at more than 15 million jobs. Research, examining the economic and social impact of European airport, confirms that the total of the direct, indirect and induced employment created averages 4,000 jobs per one million passengers (ACI EUROPE)
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“Spin-off” benefits
Commercial aviation also generates a whole host of less tangible “spin-off” benefits. These include reducing the cost of trade and movement, attracting new businesses to locations with good air service links to the rest of the world, and supporting the development of new technology and distribution processes based on the rapid movement of people and goods.
Taxation
The air transport industry pays substantial amounts of taxation to local, provincial and national governments around the world. Passengers and shippers pay taxes on their air transportation tickets, whilst air transport employees pay income taxes on their salaries. In the United States alone, for example, the annual federal user taxes and fees paid by airlines are now estimated at more than US$9.2 billion, of which almost three quarters are in the from of passenger ticket taxes.
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Environment
Like any other economic activity, air transport has an effect on the environment. This has created concern that the industry’s environmental impact is increasing in proportion to its growth. This is not the case. Efficiency is the key to minimizing environmental impact. By continually improving its fuel consumption, reducing waste and introducing new, more sustainable technologies, air transport has been able to reduce or contain years ago. This corresponds, in practice, to a reduction in individual aircraft noise of 75%. A further 50% reduction in noise during take-off and landing (minus 10dB) is expected by 2020. Civil aviation accounts for less than 3% of all CO2 emissions derived from fossil fuel use. Aircraft entering today’s fleets are 70% more fuel efficient than they were 40 years ago. Carbon monoxide emissions have been simultaneously reduced by 50%, while unburned hydrocarbon and smoke have been cut by 90%. Research programmes aim to achieve a further 50% fuel saving and an 80% reduction in oxides of nitrogen by 2020. Modern aircraft achieve fuel efficiencies of 3.5 liters per 100 passenger-km (67 passenger-miles per US gallon). The next generation aircraft (A380 & B-787) target an efficiency of less than 3 liters per 100 passenger-km (78 passenger-miles per US gallon). Carbon dioxide emissions from aviation are expected to grow at a slower rate that traffic thanks to operational and infrastructure improvements, which have the potential to reduce fuel burn by 8-18%. Per passenger kilometer, air transport uses less than 1% of the land required for transport in the European Union.
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Safety
Air travel is safer than other modes of transport – according to INfras (ATAG/UNEP 2002) 25 items safer than road travel. The safety of air transport has constantly improved over the last decade and safety will remain the most important driving factor for future aircraft development. Safety should not be confused with “security”. In this regard, it is crucial to restore public confidence after the tragic events of 11 September 2001.
User Charges
Air transport compared to rail, has a very high level of cost recovery. An ATAG Study on external Costs illustrates that air and road transport more than cover their infrastructure costs, whereas rail infrastructure operates a deficit. According to a 1998 survey by the European Conference of Ministers of Transport (ECMT), the cost coverage of the rail sector in Europe varies by between 15 and 73%. An International Civil Aviation Organization (ICAO) conference on the economics of airport and air navigation services (Montreal 2000) concluded that there has been a clear improvement in the financial situation of airports over the last decades. Indeed, most international and hub airports are very profitable businesses and continue to be so despite the present economic situation. IATA member airlines pay over USD 15 billion in user charges for their international operations, thereby fully financing the required infrastructure and air navigation services. In addition, the industry pays substantial amounts in taxes to local, provincial and national governments around the world.
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Local Situation
Sri Lanka appears to have made some attempts since late 1940”s to reap the benefit of air transport industry for its economic growth. However, compared with the progress made by few countries in the region, Sri Lanka’s achievement in this sector is not at all significant. Although Sri Lanka being and island needs to depend heavily on the air transportation for establishing expeditious and effective links with the rest of the countries in the world, the Air Transport sector in Sri Lanka had never been identified and included in the hierarchy of State’s priorities for national development. The subject of aviation was administered for a long period of time under the Defense Ministry, which has assigned high priority for the war until a separate ministry of civil aviation was established in 1994.
There was no comprehensive aviation policy, which set out clearly the Government policies in relation to overall development and management of aviation affairs in the country. Consequently, it is evident that a few important opportunities that were available to the country for establishment and development of important aviation infrastructure in the country were lost.
Air transport sector is one of the vital service sectors, which demands prime attention of the Government for economic development. In view of the emerging new threats and remaining limited opportunities, Sri Lanka cannot afford to defer assigning high priority to the aviation sector any longer.
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