Strategic Issues in Air Transport

pp 319-394


Sustainable Development of Air Transport

  • Ruwantissa AbeyratneAffiliated withInternational Civil Aviation Organization (ICAO) Email author 

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Broadly speaking, the phrase “sustainable development” means development that caters to the needs of the present generation without compromising the ability of the future generation to achieve their needs. Usually, this phrase is used in an environmental sense. However, it could also mean – as in the context of this chapter-development that ensures the sustainability of an industry. The initial and fundamental premise of the air transport industry is that the air transport sector has never been continuously profitable and that the industry’s profitability has been cyclical. Competition in air transport has been a key factor along with the perceived anomalies that are not seen in other transport modes, such as sovereignty which is a key issue in the award of air traffic rights and the requirement that ownership and control of an airline should be in the hands of nationals of a country I which an airline is registered on a majority basis. All of these factors lead to air transport being subject to the Game Theory, which is a branch of applied mathematics that is used in conformity with economic principles. The Game Theory suggests that strategic interactions among economic agents (air carriers) result in outcomes with respect to their preferences. The success of their choices depends on choices made by others. Apart from air transport economics, the Game theory applies to other areas such as security and environmental protection.