This paper discusses the basic incentives motivating the development of the short-haul STOL air transportation system and the technological impact of propulsion lift on fundamental aircraft parameters and related economics.The incentives are aimed at alleviating some of the current accrued ills of the existing CTOL system. Specifically ground and air congestion, environmental impact relief, and customer service can be improved by the introduction of the potential system.The technological impact on the aircraft and its related economics required to achieve short field performance is generally detrimental. Considerations such as wing and empennage sizing, engine thrust sizing and cycle selection, thrust reverser requirements, cruise Mach number effects, noise, and fuel usage impacts are discussed.The direct operating economics are adversely affected although it is thought that the indirect costs can be correspondingly reduced. A study of the total operating costs of the short-haul system and its related fare structure indicates that a definite potential exists for the evolution of an economically viable system returning positive returns on investment to the operators. It is concluded that this potential is sufficient to warrant more detailed studies of these economics and the alternative implementation schemes.