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Cited by 93Aviation Industry Analysis and TrendsAdvanced Aircraft Design and TechnologiesAir Traffic Management and Optimization

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Subsidies in Aviation

Open access
Gössling, Stefan, Fichert, Frank, Forsyth, Peter·2017·Sustainability
DOI 10.3390/su9081295
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Abstract

Relatively little attention has been paid to the existence of subsidies in aviation. As the sector’s importance for economic development is often highlighted, this paper seeks to provide a conceptual overview of the various forms of subsidies in aviation, as a contribution to a more holistic understanding of economic interrelationships. Based on a purposive sampling strategy, existing forms of subsidies are identified and categorized along the value chain. Focus is on industrialized countries, for which more information is available. Results indicate that significant subsidies are extended to manufacturers, infrastructure providers and airlines. These contribute to global economic growth related to aviation, but they also influence capacity in global aviation markets, strengthen the market position of individual airlines, and create conflicts between airlines and the countries they are based in. While the actual scale of subsidies cannot be determined within the scope of this paper, it provides a discussion of options to empirically assess the effects of aviation subsidies on market outcomes. Finally, general conclusions regarding the impact of subsidies on the overall sustainability of the air transport sector are drawn: These include rapidly growing capacity in the aviation system, economic vulnerabilities, and negative climate change related impacts. Results call for a better understanding of the distribution, character and implications of subsidies.

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Metadata

Authors
Gössling, S., Fichert, F., & Forsyth, P.
Affiliations
  • Lund University (SE)
  • University of Applied Sciences Worms (DE)
  • Southern Cross University (AU)
Corresponding author
Gössling, Stefan
ORCID
Venue
Sustainability
Publisher
MDPI AG
Published
2017-07-25
Volume
9
Issue
8
Pages
1295
ISSN
2071-1050 (ISSN-L)
DOI
10.3390/su9081295
OpenAlex
W2736934064
Cited by
93
References
2
Citations by year
2026: 8 · 2025: 12 · 2024: 8 · 2023: 5 · 2022: 20 · 2021: 14 · 2020: 8 · 2019: 7 · 2018: 7 · 2017: 2
FWCI
15.42
Type
journal article
Language
en
Open access
Licence
Locations
  • Sustainability (publishedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
  • Lund University Publications (Lund University) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Aviation Industry Analysis and Trends
  • Physical Sciences › Engineering › Aerospace Engineering › Advanced Aircraft Design and Technologies
  • Physical Sciences › Engineering › Aerospace Engineering › Air Traffic Management and Optimization
Keywords
aviation subsidies, airline industry, value chain, economic growth, climate change impacts, economic vulnerability, developed countries

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