
BRUSSELS, January 29, 2025 — A new Oxford Economics study released today details business aviation’s (BA) substantial economic contribution to Europe, while cautioning that restrictive government policies could endanger up to €120 billion in Foreign Direct Investment (FDI) and 104,000 jobs by 2030.
The research, commissioned by the General Aviation Manufacturers Association (GAMA) and European Business Aviation Association (EBAA), highlights BA’s vital role in connecting remote regions, attracting investment, providing crucial medical transport, and driving environmental innovation.
However, the study suggests that proposed EU regulations to limit short-haul flights and impose slot restrictions on BA at certain airports would diminish Europe’s appeal to businesses.
While acknowledging the need for reducing aviation’s environmental impact, the study warns that stringent regulations could have detrimental consequences, including a reduction in BA activity, resulting in a €76 billion-€120 billion decrease in FDI within EU member states and a loss of 57,000-104,000 foreign-controlled entity (FCE) jobs by 2030.
The study projects that Germany, Italy, and Poland would experience the most significant job losses due to their high levels of FCE activity and the resulting reduced connectivity.
“We should prioritize policies that foster innovation, decarbonization, and competitiveness, rather than focusing on bans.” Holger Krahmer, SG, EBAA.
Sustainable BA Alternatives
Although these policies could curb BA emissions, the overall environmental benefits would be minimal. In 2023, BA accounted for only 0.8% of total aviation emissions, or 0.04% of overall EU CO2 emissions.
Conversely, research indicates that expanding the use of Sustainable Aviation Fuels (SAF) could cut CO2 lifecycle emissions per flight by up to 80%, offering a viable pathway to decarbonize the sector while preserving its economic advantages.
The industry is committed to achieving net-zero carbon emissions by 2050. The study stresses the importance of robust R&D and industrial policies to support the development of a strong SAF supply chain in Europe to enhance competitiveness.
“We are spearheading advancements in aviation, bringing emission-reducing and safety-enhancing technologies to market before they are adopted by commercial aviation. Shortsighted government proposals hinder our progress and investments.” Kyle Martin, VP European Affairs, GAMA.
Full report:
SOURCE General Aviation Manufacturers Association (GAMA)