Air Transport and Economic Development in Central and Eastern Europe

This chapter explores the challenges of the relationship between air transport and economic development in Central and Eastern Europe (CEE). It examines the historical context, from state-controlled aviation to postcommunist liberalization, against the background of socioeconomic change over the three and a half decades between 1989 and 2023. Afterward, it critically assesses the strength and direction of this relationship between air transport and economic development in those countries and identifies the determinants of this relationship. The correlation coefficients between gross domestic product (GDP) per capita and air passenger numbers in CEE countries suggest varying degrees of relationship strength. The stage of development of both the economy and air transport market, shaped by the institutional and regulatory framework, stimulates this relationship. The disparity between the correlation coefficients at the country and city/regional levels underscores the importance of considering the scale of analysis when examining the relationship between air transport and economic development. While air transport may play a significant role in driving growth in urban/regional areas, its influence at the national level may be moderated by regional differences, infrastructure limitations, and the presence of alternative transport options. This indicates a need for targeted policies that address these dynamics, particularly in enhancing air transport’s role in fostering economic development across the entire country. This chapter concludes with policy recommendations on how to promote balanced growth in air transport and economic development across the CEE region.