CASE STUDIES FROM AFRICA

Table 9: Estimated Annual Revenue Generated by Air Transport Services Sector (in US
Dollars)
State-Owned Enterprises
Private Sector
Airlines
International Passenger Services 64 1,328,720,580 419,595,973
Domestic Passenger Services 65 115,540,920 33,750,000
Cargo and Mail Services 66 404,393,220 101,098,305
Airport Operation Services 67 6,500,000 -
MRO 7,702,728 -
Aviation Education - -
Auxiliary Services
Ethiopian Civil Aviation Agency 68 8,656,873 -
Travel Agency Services 69 - 46,863,360
Ground Handling Services 70 1,925,682 -
Totals 1,873,440,003 601,307,638
Indirect, Induced, and Catalytic Revenue Generated by Air Transport Services in
Ethiopia
Indirect revenue includes revenue generated by the activities of suppliers to the air transport
industry, including fuel suppliers, airport infrastructure firms, distributors of aircraft parts,
manufacturers of goods sold at airports, and business processing services for the air transport
industry. Based on industry expertise developed by the Air Transport Action Group (ATAG),
indirect revenue for air transport services in Africa is estimated to be approximately 110% of
direct revenue. 71
Induced revenue is defined as revenue generated by the spending of those directly or indirectly
employed in the air transport services sector. This includes spending at retail stores, banks,
restaurants, and the like. Induced revenue for air transport services in Africa is estimated at
approximately 160% of direct revenue. 72
Catalytic or spin-off revenue is defined as revenue generated by business and personal visitors
and cargo transported to a country via air travel. Catalytic revenue includes all visitors’
spending—hotel services, restaurants, ground transportation, retail shopping, and medical
64
International passenger traffic estimated based on EAL’s 2012 actual numbers, and estimated market share for the
sector.
65
Domestic passenger traffic estimated based on EAL’s 2012 actual numbers, and estimates for average charter
flight hours and costs for the sector.
66
Cargo traffic estimated based on EAL’s 2012 actual numbers, and estimated market share for the sector.
67
Airport services proceeds based on EAE’s estimate for 2012 revenue.
68
ECAA proceeds based on federal government budget revenue for 2011, adjusted for growth estimates.
69
Travel agency revenue based on estimates for average ticket charge and volume, and number of travel agencies.
70
Ground handling estimates based on EAL’s 2012 actual numbers.
71
Aviation Benefits Beyond Borders, ATAG, 2012.
72
Ibid.
41