Spain, tenth in the EU for the recovery capacity of the air sector after the pandemic

Good and bad news for the Spanish economy, according to the report’s conclusions European and Spanish Aviation, after the pandemic, made by Air Sector Observatory. This country continues to be the leading power in the EU in terms of tourism potential, but the health situation and restrictions on mobility place it in tenth position in the ranking of countries for aviation adaptation and recovery capacity in the face of Covid-19.

The study recalls that this mode of transport is essential to feed tourism, to which the Spanish GDP owed 12% of its weight before the pandemic. And with greater possibilities of reactivation are France, Germany, Holland, Portugal, Luxembourg, Austria, Belgium, Greece and Bulgaria.

“Looking to the future, the competitiveness of tourism invites us to think that Spain could lead an intense reactivation of its airline sector, but this progress is not guaranteed”, Concludes the work of the observatory. The air and tourism potential in the medium and long term makes it easier for Spain to offset part of the burden generated by the economic and health crisis in the short term, but by 2021 the exit from the crisis depends on the return of tourism, the report reiterates.

The origin of this analysis forum

The Air Sector Observatory is an initiative of the think tank Smart Regulation Forum, led by the economist Diego Sanchez de la Cruz. Of a liberal nature, the Intelligent Regulation Forum has carried out joint initiatives with the FAES Foundation, linked to the Popular Party.

Among his latest contributions is a work on VAT in which it is concluded that a single rate of 10% would have the same collection effect for Spain as the current system of different tax rates.

“Spain must recover the lost market promoting urgent and far-reaching reforms, capable of placing ourselves at the global forefront in terms of innovation and health safety. The recovery of tourism is essential for aviation, which supports the bulk of the foreign demand for the sector. Therefore, and to facilitate this reactivation, an urgent plan of measures and reforms aimed at alleviating the burdens and obstacles that hinder the operation of the air sector is also required, ”the Air Sector Observatory is demanding.

Despite the harsh impact of the pandemic, with a 75% drop in trading volume in 2020 (78.4% on average in the EU), 21 airlines with a certain level of activity have remained active in the Spanish skies. A figure only surpassed by France, with 27 (the EU average is 8.4).

In general terms, this work highlights, the Spanish airline sector has been able to adapt to the situation based on drastic internal measures, after which it requires incentives. Next, they claim “a regulatory environment that facilitates the development of tourism and the operation of aviation, so that companies in both sectors can adapt as soon as possible to the new health, social and economic context.”

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