IAG’s presence in Ireland has a significant impact on job creation and economic activity, supporting a total of around 7,000 full-time equivalent jobs.
A report by PwC and commissioned by IAG to independently assess the impact of their operations on the economy of Ireland shows that 4,000 direct jobs are created in industry operations, 2,100 indirect jobs in the supply chain, and 765 induced jobs resulting from spending by both direct and indirect employees.
The impact is spread across 36 different sectors, with the accommodation and food services industry benefiting the most with about 4,100 full-time equivalent jobs created. Wholesale and retail trade follow with around 1,000 jobs, while cultural and leisure activities and supporting sectors benefit from approximately 840 jobs. The broad impact of IAG’s presence in Ireland is evident in its contribution to job creation and economic growth.
Aer Lingus, operating under a ‘hub and spoke’ model that is unique ‘in Ireland, is a key player in connecting Ireland to the world, especially the US, accounting for over 40pc of the North Atlantic capacity from Ireland to the US. Through its operations, IAG generates a total Gross Value Added (GVA) of 1.1 billion in the Irish economy, with direct, indirect, and induced impacts of €803 million, €236 million, and €95 million respectively. Aer Lingus alone generates 94pc of the overall IAG GVA in Ireland due to its significant operational expenditure and wage spending.
Since IAG acquired Aer Lingus in 2015, there has been substantial growth in transatlantic routes connecting Ireland to the US, benefiting industries such as software, IT, and pharmaceuticals. IAG airlines exported and imported significant amounts of cargo to and from Ireland in 2019, with the United States being a prominent destination and origin country.
IAG Cargo plays a critical role in the transportation of air cargo to and from Ireland’s airports, handling 33pc of total air cargo arrivals and departures. The efficient operation of IAG Cargo contributes to the flow of goods and supports Ireland’s trade connections with various countries globally.
For every 1,000 passengers flying with IAG to Ireland, the catalytic impact on the economy is significant. Each passenger contributes €318 to Ireland’s Gross Value Added (GVA), reflecting IAG’s substantial contribution to the country’s economy. In total, IAG supports €1,100 million in Gross Value Added to Ireland’s GDP, with a distribution of €800 million direct, €230 million indirect, and €95 million induced contributions.
Aer Lingus is responsible for the majority of IAG’s catalytic impact in Ireland, accounting for 91pc of the total. British Airways represents 8pc, and Vueling and Iberia contribute 2pc combined. The airlines facilitate tourism and business travel, supporting an additional €1,073 million in catalytic GVA and approximately 7,400 full-time equivalent jobs across the Irish economy, particularly in hospitality, transport, culture, and recreation sectors.
See:
https://www.iairgroup.com/media/gozezi3b/iag-economic-impact-in-ie-report-may-2023-final-page.pdf
