Consulting Report
29 Jan 2025

The Socio-Economic Benefits of Business Aviation in Europe

Commissioned by General Aviation Manufacturers Association (GAMA) and European Business Aviation Association (EBAA)

The EU’s emission reduction efforts may lead to business aviation restrictions. Our study shows that while these restrictions could reduce emissions by a limited extent, they would, at the same time, harm EU competitiveness and reduce foreign direct investment.

The European Union’s plan to reach Net Zero by 2050 targets a 90% reduction in transport-related emissions compared to 1990 levels. Absent technological change, this would require a substantial reduction in emissions across all transport modes. Concurrently, the European Council has emphasised its vision to strengthen the region’s competitiveness and foster entrepreneurship, identifying connectivity as a key driver to mobilise investment. For the business aviation sector, balancing environmental and economic objectives presents a challenge, as the broader economic contributions of the sector are not well documented.

With growing pressure to introduce policy reforms that restrict the volume of business aviation in Europe to reduce its environmental footprint, it is imperative that this information gap is filled to provide policymakers with greater visibility and the ability to assess the economic trade-offs associated with curbing activity. In collaboration with the General Aviation Manufacturers Association (GAMA) and the European Business Aviation Association (EBAA), Oxford Economics conducted a study involving a comprehensive review of academic literature and industry publications, interviews with industry experts and advanced econometric modelling. This report assesses the relationship between the volume of business aviation flights, connectivity, foreign direct investment (FDI), and CO2 emissions to provide insights into the trade-offs of potential policy measures.

The findings reveal that the limited environmental benefits associated with constraining the use of business aviation services would have economic costs that should not be ignored. Notably, our analysis shows that Europe would become less attractive as a destination for FDI, with an estimated reduction of up to €120 billion by 2030. Lower FDI would, in turn, cause a reduction in employment supported by foreign-controlled entities in the EU27 by up to 104,000. On the other hand, the estimated reduction in CO2 would be equivalent of 0.03% of total CO2 emissions in the EU27 in 2030.

This report was brought to you by the ECONOMIC IMPACT team.
Quantifying the economic, social, and environmental impact of government policies, new investments, technological innovations, industries, and companies at a global, national, or local level.
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