The Impact of Georgian Airline Revenues with Passenger and Cargo on Sustainable Economic Development

Abstract

Sustainable development is a form of development that involves the economic progress of the country, considering the social and environmental interests of society members. The territory of Georgia is located at the intersection of Asia and Europe. This means that Georgia should become a country implementing the transit function of the "New Silk Road of the 21st Century" with the optimal volume and should be established as a cargo transportation, i.e. transport-logistics hub, where air transport will play an important role. The factorial, correlational analysis of cargo turnover and passenger turnover on the aviation revenues of United Airports of Georgia LLC showed us that the dynamic total change of cargo turnover had a 7.69% impact on the change of aviation revenues in the five-year period (2017-2021). This ultimately means that only 0.59% of aviation revenues are earned from cargo turnover. The fact is clear due to the low values of the indicator over the years, which could not be increased with the high numbers of 2021. As for the impact of passenger turnover, its total dynamic change had a 45.4% impact, so only 21.1% of aviation revenues are earned from passenger traffic. This amount would be much higher if it were not for the consequences of the pandemic. In the speeches of the Prime Minister of Georgia and his foreign colleagues at the "Global Gateway" and the fourth "Silk Road" forum held in Brussels and Tbilisi, emphasis was made on the full implementation of the country's transit function in the near future, where air transport, along with other types of transport, will play an important role in the new airport at the expense of construction of logistics centers, modernization of the old ones and their full operation.