Actually, no, it isn’t, its contribution is less than the aviation industry and the Government claim.
The Government’s estimate of aviation’s contribution to the economy is based on a report paid for by the aviation industry (see below). The report, The Contribution of Aviation to the UK Economy (here) was produced by consultants Oxford Economic Forecasting in 1999 with an update in 2006.
The report ignored the tax-breaks the industry receives through tax-free fuel and being zero-rated for VAT – worth around £9 billion a year.
Nor did it factor into its calculations the huge cost aviation imposes on society and the environment, which are estimated to be around £16 billion a year.
Independent experts argue that the report over-estimates the number of jobs aviation expansion would create.
Omitted to mention that UK air passengers take more money of the UK on their foreign trips to spend abroad, than foreign visitors bring in on their visits.
Who sponsored and paid for this report? Answer: these organisations and Airports:
Airport Operators Association, Birmingham Airport, British Air Transport Association, British Airways, British Chambers of Commerce, easyJet, Edinburgh Airport, Gatwick Airport, Glasgow Airport, Glasgow Prestwick Airport, Heathrow Airport, Leigh Fisher, Leeds Bradford Airport, Liverpool Airport, London City Airport, Luton Airport, Manchester Airports Group, Pinsent Masons, SITA.