Technological change and productivity growth in the air transport industry

The progress of the civil air transport industry in the United States was examined in the light of a proposal of Enos who, after examining the growth of the petroleum industry, divided that phenomenon into two phases, the alpha and the beta; that is, the invention, first development and production, and the improvement phase. The civil air transport industry developed along similar lines with the technological progress coming in waves; each wave encompassing several new technological advances while retaining the best of the old ones. At the same time the productivity of the transport aircraft as expressed by the product of the aircraft velocity and the passenger capacity increased sufficiently to allow the direct operating cost in cents per passenger mile to continually decrease with each successive aircraft development.