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Factors influencing European passenger demand for air transport

Abstract

Passenger air travel demand is influenced by various factors and is crucial to manufacturers, airlines, airports and wider industry. In order to gain detailed insights into drivers of European air transport demand, five factors are analysed, both quantitatively and qualitatively. Focusing on the European air transport market, a detailed description of factors influencing air transport demand serves as input for a statistical analysis. Data from European countries on the gross domestic product per capita (GDP), urbanisation levels, the geographical location of a country, and the degree of education is used for the model. These explanatory variables are tested using a regression analysis in regard to their influence on the passengers’ demand for air transport. Results from the regression analysis reveal that the factors GDP, the geographical location of a country and the level of education are statistically significant, confirming GDP as a demand driver already examined within various studies that also include other factors as explanatory variables. Results also indicate the dynamics between the different factors, such as the positive relationship between income and level of education. Present studies are a good basis to show what drives demand, often focused at a global or country level. This analysis also confirms the essential determinants at a European level

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