REGIONAL COOPERATION AND ECONOMIC INTEGRATION

PART IV:
INTRODUCTION
Air transport plays a vital role in the European economy and for international trade. This
industry generates €120 billion in annual revenues, employs 3 million people and accounts
for more than 30% of worldwide air transport. Including indirect and induced impacts the
air transport industry generates about 4.2 million jobs in Europe and contributes more than
USD 331 billion to European GDP. If catalytic impacts are included, the number of jobs
increases to 7.6 million and GDP to over USD 1,226 billion, representing 24% of the total
jobs and 34% of the GDP worldwide. (www.eu.int).
It is an opportunity for industry and consumers, especially because tourism is a major
growth area in the coastal regions. Forecasts for aircraft movements and passenger
traffic (Southeast Europe) are above the average growth rates for rest of the Europe and
worldwide. There are potentially 414 european airports at which different air carriers can
operate; therefore, there is an opportunity for further growth. Consequently, the affordable
air travel will be increasingly available to a greater number of people.
Creating a single European market more than 58 million people and 30 airports of the
Southeast Europe region would be fully integrated consisting thus market for 500 million
people in total.
Air traffic market of the Southeast Europe has the above average dynamics of growth,
conditioned however by the undeveloped market and insufficient traffic connection. This
specially refers to the city pairs within eleven countries belonging to this market.
Herein below there are fundamental economic indicators for countries of the Southeast
Europe region and appertaining indicators of air traffic and infrastructure development
degree in air transport. This paper initiates the need and justification for introduction and
application of “Public Service Obligation” (PSO) model that would considerably improve
traffic connection. In such a case the invested funds into application of the inter-regional air
traffic are several times more economical and lower when compared with high investments
in railway and road infrastructures. New air routes within the region would considerably
improve and increase economic integrations and cooperation, being of special interest
having in mind the undeveloped degree of the region as a whole.
1.
Macroeconomic analysis of the region
Countries in the region over the last twenty years have passed violently through a period
marked by war events, and transition processes. Relative political stability has created the
conditions of faster economic growth within the region in the last five years. Slovenia,
Bulgaria and Romania entered the European Union, and all the other countries are moving
in the direction of the euro integration processes.
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