THE EMPLOYMENT AND INCOME BENEFITS OF AIRPORT OPERATION ON THE COUNTRY IN TRANSITION

Background: The air transport market in Poland is undergoing significant changes, which take place both on the demand and supply side. Polish airports have experienced the unprecedented growth of air traffic. However, the increase in the number of airline connections - which benefits airports, passengers, aircraft industry and, indirectly, the whole society - at the same time results in the growth of social costs reflected by the intensification of noise and environmental pollution. The benefits of airport operation are reflected in the generation of employment and income. Existing literature reveals a gap in the knowledge in respect of impact of aviation in countries in transition.

Material and methods: This paper investigates the applicability of socio-economic impact of air transport model to country in transition. In particular, it presents the employment and income benefits of airport operation. The input-output model is employed to measure the economic benefits of airport operation. The largest airport in Poland, Warsaw Chopin Airport is used as a case study.

Results: The estimation results for the income and employment effects are found to be significant.  The operations of Warsaw Chopin Airport contributed to the generation of 527.8m EUR in current prices in 2011. Altogether, 19,349 jobs have been generated as the result of the direct, indirect and induced impact of Warsaw Chopin Airport.

 Conclusion:  The size of production in the airport expressed in the number of aircraft operations and the number of passengers and goods serviced is positively correlated with the level of economic impact. The restriction on the development of the airport reflected by the inability to meet transport needs expressed by the society may generate opportunity costs.