Abstract
The civil aviation is a systemically important sector of the European economy. In 2015, a new development strategy defining the role of air transport in passenger communications was adopted. The implementation of the strategy provides for, among other things, tickets cost reduction, which will have its impact on the population mobility. In this context, the article considers the priorities of the development strategy, noting that the demand for passenger air travel depends on multiple factors. They can be aggregated into four groups: social stability, macroeconomic, intrasectoral, and inter-transport factors. Their influence on the demand value varies by its degree, while being both price-based and non-price-based in nature. The article defines the leaders of the passenger air transportation market, addresses the problems obstructing the air transportation network development. It also highlights the European passenger air transportation market specifics and the prospects for development of a unified transport system to ensure a positive socio-economic effect in the development of the economy. A high level of competition with a comparable level of service quality calls for new forms of relationship with consumers. With a convenient passenger transportation infrastructure built nowadays in Europe, there are companies operating on the market that offer fairly expensive as well as low-cost transportation service. In addition, the level of average per capita income in Europe is quite high. All combined, these factors predetermine increased demand for transportation by air. Given these conditions, adoption of innovations and digital technologies, together with the encouragement of investments, should present a stimulus for growth. The adoption of the said measures will lead to passenger service quality improvement, traffic turnover and airlines’ revenues increase, and more job opportunities. Reliability, safety, environment are regarded as strategic priorities.
Highlights
Transport plays a fairly large role in the global economy
Intercity passenger transport determines the development of urban infrastructure, and transport that is capable of transporting passengers between cities and countries largely determines the development of different types of tourism
We studied the concept of demand for passenger air travel, the factors that determine it, analyzed the development of air transportation in Europe, identified the problems and prospects for the demand for passenger air transportation in Europe
Summary
Transport plays a fairly large role in the global economy. With the help of transport, passengers and cargo are transported over long or short distances; it determines the development of both trade and tourism. The advantages of aircraft are the high speed of transportation, which allows you to quickly cover long distances, move passengers and cargo from one point of the world to another in a few hours, provided that there is an adequate infrastructure at both points (airports, equipped with modern equipment, flight control equipment, runways). Non-price factors are determined by the development of tourism, the growing needs of the population in moving between cities and countries, as well as the increasing convenience of air travel, when they become more comfortable and accessible to the consumer from the moment of ticket purchase to the end of the flight. The goal set in the article is to analyze the factors that influence the development of the European market of passenger air travel, the demand for services in this market. The demand for passenger air travel is of great interest to the manufacturers of aircraft, airlines, airports and other institutions related to aviation. Microeconomics assumes that price is the main determinant factor in demand for goods [3] and services, and that its reduction contributes to growth in demand, as well as an increase in its reduction,
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