How does air transport contribute to the globalization of the economy?

Published on : 24 December 20192 min reading time

A significant increase in air traffic

Experts like Christophe Bejach have noted an increase in air traffic since 2017. They explain this soaring rate with several explanations. First, several low-cost airlines have captured a significant market share. Indeed, travelling by plane is no longer a luxury, while comfort is equally guaranteed. Then there is the fact that statistics show that air transport is, despite everything that refractories think, the safest means of transport. These statistics are also conveyed and incorporated into the marketing strategy of the various airlines. The fact that systemic controls, innovations and improved safety are increasingly being developed is increasing user confidence.

International air transport and globalisation

International air transport is defined as the transport of goods, cargo or people between two different countries.

Globalization in general is reflected in the standardization of the mores, customs and ways of thinking of different peoples around the world. This phenomenon leads to the interdependence of different economies and the standardization of consumption of all types of households around the world. This Globalization is becoming more and more advanced, as international transport is becoming more and more accessible to all. The increase in international air transport is also contributing to this, and in addition, travel times or waiting times are increasingly shorter (compared to maritime transport, for example).

Air transport and pure and perfect competition

The growth of air traffic contributes to the realization of the assumption of free movement of goods and people in a market of pure and perfect competition. Indeed, one of the conditions of Pure and Perfect Competition (PPC) is free entry and exit from the market (movement of goods, services and persons) and the mobility of factors of production. Admittedly, the transport in question still has a cost here, but because low-cost airlines have had increased growth, then the cost of this transport tends to be in line with other types of transport.

From a macroeconomic point of view, therefore, this increase in air traffic limits the effects of distances between two countries and tends to eliminate geographical barriers or limits. Whether for the labour market (person) or the goods and services market, competition becomes purer through free entry and exit to the market and more perfect through the free movement of goods and services.

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