Air Transport

Air transport is a vital driver of economic growth and development, enabling countries to integrate into the global economy and providing essential national, regional, and international connectivity. The sector helps boost trade, expand tourism, and create jobs, making it a cornerstone of modern development strategies.

The World Bank Group has supported aviation for over sixty years. Today, the WBG remains deeply engaged worldwide, focusing on air transport policy and regulation, safety improvements, infrastructure rehabilitation, institutional strengthening, and capacity building.

Earlier investments centered on aircraft procurement and standalone infrastructure projects for state-owned airlines. As global aviation evolved—through sector liberalization and widespread airline privatization—the World Bank shifted toward capacity building and regulatory and policy support, aligning with modern sector needs.

In FY15, the WBG Air Transport Portfolio reached US$1.47 billion, representing 3% of the WBG’s US$45 billion Transport portfolio and spanning roughly 26 projects across IBRD, IDA, and IFC. IFC also contributes through loans, equity, and advisory services to strengthen private sector participation in aviation.

Major ongoing projects include the Pacific Aviation Investment Program, which is helping to promote safe and efficient air travel in the Pacific Islands by improving aviation infrastructure, management, and operations. The World Bank continues to finance large airport projects, such as the Cairo Airport Development Project - TB2. The IFC is engaged in the sector through the provision of loans, equity, and advisory services to stimulate private sector investment, for example, Zagreb International Airport, Croatia and Queen Alia International Airport, Jordan.

To help clients build safe, functional, efficient, affordable, and reliable air transport networks, the World Bank is mandated to carry out several key activities:

• Operational work, including projects and technical assistance
• Economic sector work, research, and knowledge dissemination on aviation issues
• External relations and collaboration with partner organizations
• Internal services, such as the airline advisory service for WBG staff

These activities are consolidated in a comprehensive annual report that outlines the objectives, instruments, and outcomes of the WBG’s global air transport development efforts.