1988 - Laserfiche WebLink

Home Browse Search

i - -_....._ "L. GENERAL AVIATION AIRPORTS- . PAYING THEIR WAY To prove the point that general aviation airports provide economic benefits, consider the findings of two new studies. In one, the FAA acknowledges that a typical general aviation airport with 100 based aircraft and no commercial service saves time and reduce's-- travel costs of those who use that airport over the next best transportation alternative. In dollar terms, that transportation benefit alone is estimated by the FAA to be more than $1 million annually. As another means of comparison, consider another study, a recent and comprehensive analysis of airport economic benefit —good old dollar benefit to a commu- nity. This particular study was completed by an independent, international consulting firm for the Commonwealth of Virginia. There are 80 public -use airports in Virginia; fewer than the national average of 110 per state. Admittedly, Virginia has two international airports, but the number of active aircraft in the state is only slightly less than the national average as are the estimated hours flown in the Commonwealth. Therefore, it's fair to compare Virginia's airports and its diverse economy with those of other states. The study clearly shows that "VirginWs-80 public - use airports allow the State's ,business community to participate in national and international markets; and public and - private funds invested irr.the Common- wealth's airports annually produce economic returns which far exceed the amounts -spent to operate and maintain those facilities." The basis of this information was the U.S. Depart- ment of Commerce's Regional Input - Output Modeling System (RIMS II) whichadmittedly does not encom- pass ALL economic benefits. The study also used very conservative dollar multiplier of 2.8. Many experts believe that a multiplier of 4 or even 5 is realistic. The Virginia study also concludes that: • Each dollar spent by aviation and/or aviation =de- pendent businesses generates an additional $1.52 in economic activity; • Airport jobs are desirable, and the average airport wage was 40 percent higher than the average Virginia salary; • For every job at the airport, nearly three are created in the visitor - related economy; • Aviation - related businesses and their employees annually contribute $105 million in local taxes; • Aviation facilities attract new_ industry,totthe Commonwealth; and, • Many visitors arriving by air spend:about $70 per day in this geographical area. The consultants also made an astounding announce- ment concerning the expenditure of over $28 million spent on airport capital improveqnts. "Airport construction projects are particularly beneficial be- cause dollars spent by state•and local governments are highly leveraged with federal and private funds. The multiplier effects of construction spending are espe= cially strong because each dollar spent on construction generates an additional $2 in economic activity. To- gether, these two factors mean that airport - develop- ment projects produce an impact on the State's econ- omy that is more than25 times the amount contributed -by State and local funds." One of the most important aspects of the study was that of general aviation's impact. Of course, the eco- nomic impacts associated with general aviation air- ports varied. The busiest, Leesburg, generates nearly $28 million per year in economic activity. But, even the smallest general aviation airports contribute more than $100;00 annually to the economy. The point is that Virginia's average general aviation airport has only 23 based aircraft but contributes $1.6 million per year in economic activity, most of which is spent locally.--Total payroll - attributable to the average -- general aviation airport is- over-$400,000. Interestingly, even airports with less than 10,000 operations a year produced economic impact exceeding the amount of money necessary to operate and main- tain the facility. Enough of the facts and figures! What can be learned from this information? It is clear -that if Virginia's general aviation airports generate these significant economic benefits, it can reasonably be assumedthat similar airports across the country —and in your community —do the same. Local general aviation airports produce identifiable economicbenefits over and above the tax dollars spent on operating and maintaining the facilities, and over the intangible benefits inherent with access to the nation's air transportation system. Communities should try to understand the value of their own airports by embarking on an economic analysis. Without that information, the airport is vulnerable to those who criticize the airport for nui- 3 -1