Impact of Air Transportation on Regional Economic and Social Connectivity in the United States

Abstract

This paper identifies some of the forces that influence the impact of air transportation on regional connectivity and economic productivity in the United States. In light of recent threats to the financial viability of the airline industry, a conceptual model has been developed to highlight the interdependence of the national economy and the air transportation system. These complex relationships are identified using regional economic and social indicators combined with airline traffic and financial data. The changes in supply and demand for air travel after the deregulation of the airline industry in 1978—as well as the challenges faced after the attacks of September 11, 2001—are used to frame this discussion.