International Passenger Air Transportation: Determinants of Explosive Growth

Abstract

The paper examines the main trends in the global passenger air transportation industry. The authors clarify the role of air transport as the driving force of the global economic growth. We also note a steady increase in air passenger traffic and turnover largely stimulated by the development of low-cost airlines. It exceeds the growth rates of world GDP at current prices. The paper provides an analysis of the determinants of the increase in the main indicators of international air carriers’ activity. The authors also study the dynamics of the Russian passenger air transportation industry and emphasize the reasons behind a steady growth in passenger traffic on domestic and international flights from Russia. We found that favorable environmental factors and the introduction of a flexible business model improved the performance indicators of air carriers.

Keywords

• DOMESTIC AIRLINES
• INTERNATIONAL AIRLINES
• LOW-COST AIR CARRIER
• GLOBAL PASSENGER
• AIR TRANSPORTATION MARKET