1. The Aviation Quandary Developing an Aviation Economy
The Future of Aviation Industry… in Estonia
Jonas Butautis, CEO

2. Why This Topic? Quandary [kwon-duh-ree, -dree]
A state of perplexity or uncertainty, especially as to what to do. (dictionary.com)
What is Estonia’s ‘aviation identity’?
Impact of Aviation on national GDP; Why Care?
Features of ‘Aviation Countries’; What Works?
Roadmap to Finding Identity; Ideas for Action.

3. Defining Aviation Airlines Ground Services Financial Services
FSCs, LCCs, Charter, Cargo, mixed business models
Ground Services
Airports, Ground Handling, Retail, Catering, Ticketing, Cargo Services, MROs, Navigation, Regulators, etc.
Financial Services
Leasing Companies, Aviation Assets Investment Vehicles
Aviation is a complex Organic Business Ecosystem with a number of inter-related players

4. Impact of Aviation on GDP
Global
$ 2.4 trillion aviation Global economic impact (direct and indirect)
3.4% of Global GDP is supported by aviation
On average, aviation jobs are 3.6 x more productive than other jobs
National Example. Singapore
SG$ 8.7 billion direct contribution to national GDP, 3%
58k aviation related jobs
National Example. Ireland
€ 4.1 billion direct contribution to national GDP, 2.6%
54k aviation related jobs, 2.8%, 40% premium salaries
If Estonia had a per capita-scaled Aviation industry comparable to Ireland, aviation relation businesses could contribute € 1,2b or 7% of Estonian GDP

5. What Works (I of II) Political Focus Legislation
Aviation is a ‘war’ of nations (Turkey, UAE, Singapore, Ireland, UK, etc.). Country-wide Strategy and political will for execution is needed
Legislation
Corporate tax rates, allowed interest deductibles, double taxation treaties, VAT exemptions, asset depreciation rules, custom clearance procedures, expat employees income tax reductions, etc.
Supply of Skilled and Certified People
Academies and vocational schools working hand in hand with business to supply thousands of skilled employees. Technical skills are crucial, more than the need for higher education

6. What Works (Ii) Financial Infrastructure
Banks and funds open to finance aviation projects. Aviation know-how present among financial analysts.
National Regulation and Aircraft Registry
Local CAA as business oriented, service organization. Flexibility, speed, professionalism, security, cost efficiency.
Support of Home Airline to Drive the Industry
Singapore Airlines, Turkish Airlines, Qatar, Emirates, Etihad, etc.
Other Government-backed Benefits
Local or national government financing Hangars
Free Economic Zones
Investment support programs for Greenfield Investors
Targeted Country Promotion to Aviation Community

7. Roadmap to FINDING Estonian Aviation Identity
Political Will
Clear Country Positioning and Aviation Strategy Formulated with ownership of execution
Review of Aviation-Centred Legislation
Corporate tax rates, allowed interest deductibles, double taxation treaties, VAT exemptions, asset depreciation rules, custom clearance procedures, expat employees income tax reductions, etc.
Positioning Estonia for Aviation Investors
Approaching OEMs, MROs, manufacturers, support services, leasing companies, other asset owners
Fighting for every Aviation Project
Step by step, create an aviation cluster

8. Ideas to Consider Maintenance, Repair, and Overhaul (MRO)
Airframe Heavy Maintenance, Painting Facilities, Engine Overhaul Shops, Component Repair Shops, etc.
OEM Manufacturing
OEM owned and run production or assembly facilities
Promotion of Aircraft Register
Preparing legislation and resources to promote Estonian aircraft register
Promoting Aircraft Financing Industry
Special incentives for aircraft financing organizations settling in Estonia
With the right focus, Aviation has opportunity to become the core driver for Estonia’s GDP growth