Soaring aviation sector needs political backing THE importance of the aviation industry to the global economy was underscored last week when International Air Transport Association director general Tony Tyler reeled off a series of enormous figures. The air transport industry had carried more than three billion people and 52 million tonnes of cargo as it generated 57 million jobs worldwide, supported $US2.2 trillion ($2.31 trillion) in global business and facilitated $US6.4 trillion in trade. With commercial flying set to celebrate its 100th anniversary on January 1, Mr Tyler said aviation connectivity had recalibrated humanity's mindset to a global scale and enriched the world. "The future is pregnant with potential," he said. But it also holds many challenges. The situation in Australia is no different. A recent Oxford Economics report, albeit based on 2009 data, found the local aviation sector contributed $32 billion to gross domestic product, about 2.9 per cent of the total. This included $13.5bn directly contributed by sectors such as airlines, airports and ground services, and an $11bn indirect contribution through the industry's supply chain. A further $7.4bn came from employee spending. A further $43.7bn was in "catalytic" benefits through tourism, raising the industry's total contribution to $75.6bn, or 6.1 per cent of GDP. The report found the industry employed 149,000 people directly, supported an additional 97,000 jobs through its supply chain and a further 86,000 through employee spending. Catalytic effects - essentially tourism - captured 495,000 jobs. Aviation jobs were about 1.8 times more productive than the average in Australia and the sector contributed $3.2bn in tax, including income tax, annually. A further $1.7bn came from departure taxes. The report estimated an extra $2.6bn of government revenue was raised by the industry's supply chain and $1.8bn through employee spending. Amazingly, however, aviation does not even have its own federal portfolio and it is often treated as a cash cow or a nuisance by governments. The fact that we still can't agree on a second airport in Sydney after talking about it since the Chifley era sums up the imperative with which both parties view the industry. But there is much more to this essential part of Australian life than safety incidents, regulatory rows and noise complaints. We fail to give airlines tax breaks such as accelerated depreciation that would help them survive in a highly competitive global industry where the global margin in the third best year for profitability since 2001 is just 1.8 per cent. While we're fixated on cars, we forget that we still manufacture aircraft in this country at companies such as GippsAero and innovative ultralight specialist Jabiru. We talk about the clever country but often don't adequately support the clever people who keep Australia's reputation for world-class aviation research and manufacturing in the global spotlight. Boeing chief technology officer John Tracy underscored the nation's ability to punch above its weight when he opened a $5m laboratory facility at Port Melbourne to mark the fifth anniversary of Boeing Research and Technology in Australia. The facility has developed a new way of making composite materials used in aircraft and Dr Tracy said the Melbourne labs were in many areas leading the US aerospace manufacturer's global research network. Examples of where Australia is a global player include areas ranging from hypersonic ram jets to unmanned aerial vehicles. The Victorian and Queensland governments have realised the importance of the aviation industry and it is now time for the federal government to step up. Aviation should get its own federal minister who can support the industry, sort out some of the problems and help unlock the potential that this valuable industry has to offer.