Service Changes and Lower Airfares Impact the National Economy
The effects of three possible changes are explored: (1) strengthen connections between U.S. and international
airports, (2) increase air cargo transported through U.S. airports, and (3) decrease airfares for personal travelers.
Connectivity and air cargo analyses are based on:
20 Sampled Metropolitan Regions
•
20 sample U.S. metropolitan regions that contain
26 commercial airports
•
Detailed regional economic data
•
15 major international airports
•
The years 1995, 2000, 2005, and 2010
Findings are extrapolated to national levels for illustrative purposes.
Direct Economic Impact in the National Economy ($ impacts in 2010 millions)
Labor
Output
Value Added
Income in 2010 millions)
Direct Economic Impact in the National Economy ($ impacts
Changes in Impacts Generated By:
Jobs
1% Improvement in Connectivity Variables
Changes in Impacts Generated By:
1% Increase in Air Cargo Tonnage
1%
Connectivity Variables
1% Improvement
Decrease in AirinFares
13,000
Jobs
5,100
13,000
1,400
$795
Labor
Income
$403
1% Increase in Air Cargo Tonnage
5,100
$795
$162
$403
1% Decrease in Air Fares
1,400
$162
$1,507
Value Added
$742
$1,507
$249
$2,103
$742
•
Number of aircraft departures,
$553
$249
•
Number of nonstop destinations,
•
Frequencies (number of daily flights) of
departures and destinations, and
•
The percent of the world’s wealth
connected to an airport.
Total Economic Impact in the National Economy ($ impacts in 2010 value)
(including multiplier effects)
Labor
Total Changes
Economic
ImpactGenerated
in the National
Economy
value)Value Added
in Impacts
By:
Jobs ($ impacts in 2010
Output
Income
(including multiplier effects)
1% Improvement in Connectivity Variables
Changes in Impacts Generated By:
1% Increase in Air Cargo Tonnage
38,900
Jobs
22,700
$2.3
LaborB
Income
$1.4 B
$7.4 B
Output
$5.4 B
$4.0 B
Value Added
$2.5 B
Decrease in AirinFares
1% Improvement
Connectivity Variables
5,800
38,900
$0.4 B
$2.3
$1.3 B
$7.4
$0.7 B
$4.0
1% Increase in Air Cargo Tonnage
22,700
$1.4 B
$5.4 B
$2.5 B
Notes: Values for connectivity represent the average of 11 variables. “Total” includes “direct” role and “indirect” and “induced”
1% Decrease
ineffects.
Air Fares
$0.4
B
$1.3IMPLAN,
B
$0.7
B
economic
multiplier
B = Billions. Jobs are rounded to the5,800
nearest hundred.
Calculations
used
LLC
national
model, Version 3, 2012.
Impacts (2010 dollars)
This research tests multiple ways
of measuring airport and regional
connectivity:
$3,043
Output
$2,103
$3,043
$553
Direct
Total
(including
Greater connectivity allows a traveler or a
firm to save resources or expand activity.
Details of the economic analyses can be found at:
www.TRB.org/main/blurbs/172110.aspx.
Key Findings
Research Questions:
Economic Role of Airports in the U.S.
$768 Billion in Value Added
Direct
Total
(including
multiplier effects)
2.17
7.63
Labor Income (billions)
$147.6
$452.5
Output (billions)
$637.0
$1,600.0
Value Added (billions)
$247.4
$768.4
Impacts (2010 dollars)
Jobs (millions)
•
What is the national economic role of U.S. airports?
•
Do improvements in the connectivity of airports
lead to improved productivity of U.S. industries?
•
What is the interrelationship between air cargo and
the U.S. industrial base?
•
How do changes in the cost of air travel affect the
national economy?
U.S. Airports
Answered in Complementary
Approaches
1. National Economic Role of U.S. Airports
2.17 Million Direct U.S. Jobs
International Air
Cargo
On-Airport
Transactions
National
Economic
Impact of
U.S. Airports
-
How do these findings compare with
other economic analyses?
•
On-airport commerce
•
International cargo (brings income to the United
States from other countries)
•
Spending of international visitors who arrive by air
Does not include redistribution among regions,
including:
ACRP Report 132
The Role of U.S.
Airports in the
National Economy
U.S. Airports Support 5% of
the National Economy
2. Changes in aviation affect economic impacts
Economic impacts in response
to changes in
2
connectivity, air cargo, or airfares.
Brochure developed under ACRP Project 03-28
by the following:
Economic Development Research Group
In association with:
•
Domestic air cargo
•
Off-airport spending of domestic air visitors
Dr. David Gillen
KRAMER aerotek, inc.
•
Civil aviation—aircraft manufacturing and parts
ICF International
Mead & Hunt, Inc.
Percent Of U.S Economy
Estimates Airports’ Additions to the National Economy
through:
Off-Airport
Spending of
International Air
Arrivals Net of
Spending by U.S.
Residents on
International
Travel
7%
6%
5%
4.3%
4.8%
5.8%
4.9%
4%
3%
2%
1%
0%
Employment Labor Income Total Output
GDP
Notes: Airport calculations were assembled from 2009-2013 data sets from
multiple sources. The national baseline is from the U.S. Bureau of Economic
Analysis, 2012.