Results of a country report on the economic benefits of aviation published in Iceland on 23 February 2012, show that the air connectivity of Iceland scores the highest among 52 countries measured on the same scale. In addition number of jobs created by the industry and the impact of air transport on the economy of Iceland seems unique in its scope, relative to GDP.

The Oxford Economics report focuses on the ‘economic footprint’ of the industry, measured by its contribution to GDP, jobs and tax revenues generated by the sector and its supply chain. But also the benefits created for the customer, the passenger or shipper, using the air transport service – and the assets generated by connections between cities and markets.

On the whole, the results show that the importance of the aviation sector to the Icelandic economy is unmatched anywhere in the world. Icelandair Group airlines including Icelandair, Icelandair Cargo and Air Iceland, represent 78% of the air services of Iceland, and Icelandair’s hub and spoke network to North American and European cities is the key to the county’s thriving aviation and tourism industries. The wages, profits and tax revenues created by these airlines flows through the Icelandic economy, generating multiplier effects on Icelandic national income or GDP.

Tags: Brian Pearce, Iceland, Icelandair