The economic impact of aviation in Arizona

              © Philip Preindl
THE GUIDING MISSION OF THE AERONAUTICS DIVISION
OF THE ARIZONA DEPARTMENT OF TRANSPORTATION IS TO
encourage and advance the safe and orderly development of
aviation in Arizona. The Aeronautics Division is also charged
with assembling and distributing information on the state’s
aviation system to the public. In that vein, the Aeronautics
Division commissioned a study to quantify the contribution
of aviation to the Arizona economy. This report summarizes
the statewide economic impacts of Arizona aviation.
Without question, aviation contributes greatly to the economic
vitality of the Grand Canyon State. From the earliest days of
human- powered flight, Arizona and aviation have been inex-tricably
linked. With its ideal dry climate and wide- open
spaces, all facets of the aviation industry thrive in Arizona
today. Commercial aviation, pilot training, aerospace
engineering and manufacturing, air park communities and
aerial sightseeing are some of the many aspects of aviation
that are woven like threads throughout the Arizona economy.
© Serge Baillul
© Boeing
© Andrew Povey
cargo shipment, receive economic
benefits from the state’s aviation
activities through the creation of
businesses, jobs, income, and tax
revenues. Aviation directly and
indirectly supports nearly one- half
million jobs and over $ 38.5 billion of
economic activity in Arizona.
Aviation Enhances Quality
of Life
Arizonans derive benefits from
aviation that are often intangible and
hard to quantify, but nonetheless, of
extreme value. Communities rely on
aviation services and infrastructure for
essential services such as overnight
delivery services, air ambulance
services, aerial applications, traffic
Businesses and Residents
Depend on Arizona’s Air
Transportation System
The state’s major employers, as well as
small businesses, rely on Arizona’s
airports to provide fast, efficient
transportation for personnel, supplies
and products. Arizona’s growing
population relies on aviation for
comfortable and convenient travel to
cities across the US and worldwide.
Aviation Supports Arizona’s
Growing Tourism Industry
The tourism industry in Arizona relies
on commercial and general aviation to
transport millions of visitors each year
to the state’s tourist attractions and
recreational activities including the
Grand Canyon National Park, the
scenic vistas of Sedona and the
Sonoran Desert, first class resorts and
spas, championship golf courses and
other outdoor adventures.
Aviation Creates Economic
Benefits
Beyond the obvious transportation
benefits, aviation and airports create
economic benefits that extend to all
Arizona citizens. Even those that may
never board an airplane or make an air
Today more than ever, Arizona relies on aviation to remain competitive in the global marketplace.
Aviation and airports are essential components of the state’s infrastructure for moving people and
goods, for facilitating local, national and international commerce, and maintaining quality of life
for Arizona residents.
ALL ARIZONANS
BENEFIT FROM
AVIATION
monitoring, and law enforcement.
Arizona airports also support a number
of recreational activities, such as
soaring, ballooning, sightseeing, and
other recreational flying that enhances
the quality of life for residents.
Future Benefits Require
Continued Investment
Aviation is unquestionably a catalyst
for economic growth in Arizona. The
future of Arizona aviation is crucial
to the state’s continued economic
growth and global competitiveness.
Arizona must make a commitment to
adequately fund the state’s aviation
resources in order to continue to derive
the economic, transportation, and
quality of life benefits of aviation.
1
© Clovis Bohier
Economic Activity
$ 38.5 Billion
Payroll
$ 14.7 Billion
Employment
470,708 Jobs
Multiplier Effects
Realized as spending
by suppliers and
users of aviation
circulates in
Arizona’s
economy
Economic Activity
$ 18.2 Billion
Payroll
$ 7.0 Billion
Employment
228,561 Jobs
AVIATION CONTRIBUTES
$ 38.5 BILLION TO THE
ARIZONA ECONOMY
Aviation plays an important role as an
economic catalyst in Arizona. In 2002,
aviation activities generated $ 38.5 billion in
total economic activity statewide. More than
470,000 Arizona jobs are related directly or
indirectly to aviation. These jobs created
almost $ 15 billion in wages and benefits for
Arizona residents.
The total economic contribution of aviation
includes primary impacts created by the economic
activities of aviation suppliers and users, as well as
spin- off impacts. Spin- off impacts are created when
spending by aviation suppliers and users creates additional
jobs and spending that support non- aviation businesses.
The spin- off benefits created by these successive rounds of
spending are also known as the “ multiplier effects”.
Aviation is directly responsible for 229,000 Arizona jobs
with an annual payroll of $ 7 billion. This includes employ-ment
at the state’s airports and on- airport businesses,
aerospace manufacturers, aviation education programs,
the tourism industry, and military air bases. Together,
these aviation related activities had a primary impact of
$ 18.2 billion on the Arizona economy.
MEASURES OF ECONOMIC IMPACTS
Economic Activity The value of all goods, services and
capital expenditures that can be linked to aviation.
Measured as sales for businesses, operating budgets for
government agencies, and spending by air visitors.
Payroll The wages and benefits of all persons whose
jobs are directly or indirectly supported by aviation.
Employment The total number of full- time equivalent
jobs that are directly or indirectly supported by aviation.
2
EACH SECTOR OF THE
AVIATION INDUSTRY
PRODUCES
ECONOMIC BENEFITS
Total Economic Activity by Sector
Air visitors, aerospace, and commercial aviation
account for 85% of aviation’s primary economic
impacts in Arizona.
Aerospace
Manufacturing
29%
Air Visitors
33%
Aviation
Education
1%
General Aviation
5%
Military
9%
Commercial
Aviation
23%
Total Economic Impacts
( Including Spin- Off Impacts)
Commercial General Aviation Aerospace Air
Aviation Aviation Education Mfg. Military Visitors Total
Economic
Activity ( mil) $ 8,714 $ 1,800 $ 253 $ 11,233 $ 3,359 $ 13,166 $ 38,525
Payroll ( mil) $ 3,063 $ 762 $ 101 $ 3,879 $ 1,570 $ 5,288 $ 14,664
Employment 91,519 24,735 2,314 95,369 50,792 205,979 470,708
3 © Royal S. King
© Serge Baillul
© Boeing
© Josep Manchado
COMMERCIAL AVIATION
SERVES THE NEEDS OF
ARIZONA’S FAST GROWING
POPULATION
Commercial aviation is a fast growing sector of
the Arizona economy, fueled in part by the
state’s rapid population growth. During the
1990s, Arizona’s population base grew by more
than 1.5 million people, or 40%, making it the
second fastest growing state in the nation.
Thirteen commercial service airports serve the needs of
Arizona’s commercial airline passengers and shippers.
These airports range in size from the Phoenix Sky
Harbor International Airport, which accommodated
17.6 million passenger enplanements in 2002, to
Kingman Airport, with just over 2,000 passenger
enplanements.
Commercial aviation encompasses the activities of
airport operators, passenger and cargo airlines, freight
forwarders, air couriers, and a host of support busi-nesses,
such as food and retail concessions, parking,
ground transportation, aircraft fuel and maintenance,
and airport security. In 2002, commercial
aviation contributed $ 4.1 billion in
primary benefits to Arizona’s
economy. Commercial airports,
their tenants, and support busi-nesses
employed more than 39,000
Arizona residents with a payroll of
nearly $ 1.5 billion.
4
© James Richard Covington
THE ECONOMIC IMPACT OF
COMMERCIAL AVIATION
IS $ 8.7 BILLION
Commercial airlines produced $ 2.3 billion
in economic output, more than half of the
economic contribution of total commercial
aviation.
The airlines created over 16,000 Arizona jobs with a
total payroll of $ 727 million. Businesses engaged in
air cargo and overnight delivery services also had a
significant impact on the state’s economy. Air cargo
and courier agents produced $ 765 million in
revenues, which supported 9,400 jobs with a
payroll of $ 307 million.
Primary Economic Impacts of Commercial Aviation
Air Cargo & Couriers
19%
Air Carriers
56%
Ground
Transport
3%
Airport Administration
3%
Airport Construction
6%
Airport Business
11%
Gov’t
Services
2%
Economic Impact of Commercial Aviation and Airports
Air Air Cargo Airport Ground Gov’t Airport Airport
Carriers & Couriers Businesses Transport Services Admin. Construct. Total
Economic
Activity ( mil) $ 2,321 $ 765 $ 429 $ 122 $ 80 $ 120 $ 235 $ 4,071
Payroll ( mil) $ 727 $ 307 $ 146 $ 62 $ 60 $ 49 $ 102 $ 1,454
Employment 16,505 9,449 5,913 2,599 1,879 719 2,424 39,487
Economic
Activity ( mil) $ 4,880 $ 1,714 $ 898 $ 267 $ 178 $ 260 $ 517 $ 8,714
Payroll ( mil) $ 1,492 $ 694 $ 335 $ 119 $ 99 $ 104 $ 219 $ 3,063
Employment 38,750 25,979 11,488 4,268 3,017 1,824 6,193 91,519
Primary Impact
Total Impact *
Scheduled Commercial
Passenger Airlines,
Cargo Airlines,
Off- Airport Airline
Call Centers
Terminals,
Delivery,
Courier Service
Auto Rental,
Airport Shops,
Food Services,
Parking,
Skycaps
Taxis,
Limo Services,
Van Services
Air Traffic Control,
Other FAA,
Customs,
Postal Service,
Weather Service,
Airport Security ( TSA)
Management,
Custodial,
Marketing
Maintenance,
Capital Improvements
Category Includes:
* Includes Spin- Off Impacts
5
© Federal Express
GENERAL AVIATION CONTRIBUTES
TO BUSINESS PRODUCTIVITY AND
QUALITY OF LIFE IN ARIZONA
General aviation includes all aviation
activity other than scheduled airline
operations and occurs at all airports in
Arizona. The Arizona airport system
includes an extensive network of public
use general aviation airports to meet the
aviation needs of Arizona's businesses
and recreational users.
In 2002, there were more than 6,500 registered
general aviation aircraft based at Arizona
airports. In total there were 3.4 million general
aviation operations ( aircraft landings and
take- offs) at Arizona's general aviation and
commercial airports. General aviation airports
accommodated 76% of the state's general
aviation operations.
Arizona’s Top 10 Airports
for GA Operations
Annual GA Share of
Operations Total AZ
Phoenix
Deer Valley 389,497 11%
Prescott 335,696 10%
Falcon Field 290,902 9%
Chandler
Municipal 230,507 7%
Scottsdale 196,014 6%
Williams
Gateway 166,510 5%
Tucson Int’l 165,946 5%
Ryan Field 142,407 4%
Phoenix
Goodyear 138,067 4%
Glendale
Municipal 118,134 3%
6
© Nils Alegren
© Gregg Stansbery
© Gerhard Plomitzer
THE ECONOMIC IMPACT
OF GENERAL AVIATION
IN ARIZONA
IS $ 1.8 BILLION
The primary impact of general aviation
activity and support services in Arizona was
$ 842 million in economic activity. More than
9,800 Arizonans are employed in the general
aviation industry and receive wages and
benefits of $ 362 million. Over 60% of the
economic contribution of general aviation
comes from aircraft sales and services. This
includes the sale of private aircraft and
aircraft parts, as well as aircraft rentals, fuel,
maintenance, support services and storage.
The spending of persons directly employed by general
aviation supports an additional 15,000 jobs in other
sectors of the Arizona economy. General aviation's
total contribution to the Arizona economy is $ 1.8
billion, including multiplier effects.
Economic Impact of General Aviation
Non- Scheduled Aircraft Sales Aerial Gov’t Airport Airport
Carriers & Service Services Services Admin. Construct. Total
Economic
Activity ( mil) $ 64 $ 528 $ 195 $ 13 $ 18 $ 24 $ 842
Payroll ( mil) $ 27 $ 223 $ 82 $ 11 $ 9 $ 11 $ 362
Employment 635 5,920 2,456 260 297 253 9,821
Economic
Activity ( mil) $ 137 $ 1,119 $ 421 $ 29 $ 40 $ 54 $ 1,800
Payroll ( mil) $ 57 $ 472 $ 174 $ 17 $ 20 $ 23 $ 762
Employment 1,611 15,015 6,229 480 753 647 24,735
Primary Impact
Total Impact *
Commuter,
Unscheduled
Carriers
Sales,
Rentals,
Parts,
FBO Service,
Storage
Agricultural,
Photography,
Aerial Mapping,
Air Sightseeing,
Air Ambulance
Air Traffic Control,
Other FAA,
Customs,
Postal Service,
Weather Service,
Airport Security
Management,
Custodial,
Marketing
Maintenance,
Capital Improvements
Category Includes:
* Includes Spin- Off Impacts
7
© Nils Alegren
AEROSPACE SUPPORTS
HIGH WAGE JOBS
IN ARIZONA
AND CONTRIBUTES
$ 11.2 BILLION IN
ECONOMIC IMPACT
Arizona's favorable dry climate, wide- open spaces, and skilled
labor force have attracted a number of aerospace research and
manufacturing firms to the Grand Canyon State. These firms,
which include Raytheon, Honeywell, Boeing, and MD Heli-copters
are engaged in research and the manufacturing of
aircraft parts, avionics, communication systems and missiles
for commercial and military applications. Aerospace busi-nesses
have a significant impact on Arizona's economy. In
2002, aerospace accounted for almost one- third of the primary
economic impacts of aviation in Arizona.
The aerospace sector contributed $ 5.6 billion to Arizona's economy in 2002.
More than 28,000 Arizonans are employed by aerospace firms, with annual
payrolls totaling $ 1.8 billion. These are high paying jobs with average wages
and benefits exceeding $ 60,000 a year.
In addition to those employed in the industry, aerospace indirectly sup-ported
another 67,000 jobs in Arizona. The total impacts of aerospace,
including the multiplier effects, was $ 11.2 billion in 2002.
Economic Impact of
Aerospace Manufacturing
Economic
Activity ( mil) $ 5,628
Payroll ( mil) $ 1,777
Employment 28,768
Economic
Activity ( mil) $ 11,233
Payroll ( mil) $ 3,879
Employment 95,369
Primary Impact
Total Impact *
* Includes Spin- Off Impacts
8
© Raytheon
© Boeing
ARIZONA AIR VISITORS
SPEND $ 5.9 BILLION
In 2002, 8.4 million visitors traveled to Arizona
by air. Visitors are attracted to Arizona for a
variety of reasons. Some travel to Arizona to
conduct business, others come to visit with
family and friends, and still others are tourists
who come to enjoy Arizona’s sunshine, natural
beauty, resorts and other attractions. Over 80%
of Arizona’s air visitors traveled to the state on
a commercial airline, and 18% utilized a
private general aviation airplane.
While staying in Arizona, air visitors spent $ 5.9 billion
on items such as lodging, food and drink, retail pur-chases,
local transportation, and entertainment. Air
visitor spending directly supported 120,000 jobs in the
hotel, restaurant, retail, and entertainment sectors. The
total impact of air travelers on the Arizona economy,
including the multiplier effects, was $ 13.2 billion.
Economic Impact of Air Visitors
Food & Local Travel
Lodging Drink Retail Transportation Entertainment Agencies Total
Economic
Activity ( mil) $ 2,057 $ 1,936 $ 1,028 $ 333 $ 423 $ 134 $ 5,910
Payroll ( mil) $ 824 $ 735 $ 506 $ 101 $ 183 $ 69 $ 2,419
Employment 33,991 52,174 20,579 3,100 8,418 2,495 120,757
Economic
Activity ( mil) $ 4,556 $ 4,303 $ 2,241 $ 794 $ 983 $ 289 $ 13,166
Payroll ( mil) $ 1,824 $ 1,672 $ 1,012 $ 242 $ 408 $ 130 $ 5,288
Employment 63,773 79,582 35,553 7,239 15,582 4,251 205,979
Primary Impact
Total Impact *
* Includes Spin- Off Impacts
9
ARIZONA OFFERS IDEAL
CONDITIONS FOR
TRAINING MILITARY
AND CIVILIAN PILOTS
More than 28,000 people are employed at
Arizona military bases that are engaged in
aviation or aviation related activities.
In 2002, these military sites had an annual payroll of
$ 989 million and were responsible for spending nearly
$ 1.7 billion in the state. The total economic impact of
military aviation in Arizona was $ 3.4 billion including
multiplier effects.
Arizona is a leader in private sector aviation
education with the second highest number of flight
instructors per capita in the US.
In addition to private flight instructors, Arizona boasts leading
institutions that offer undergraduate and graduate degree
programs preparing students for careers in aeronautics,
aerospace engineering, aviation business management, and
other aviation careers. In 2002, the aviation education field
created more than 1,200 full time jobs and had a primary
impact of $ 110 million on the Arizona economy.
Air National Guard 161st – Phoenix
Air National Guard 162nd – Tucson
Davis- Monthan Air Force Base
Libby Army Airfield – Sierra Vista
Luke Air Force Base
Marine Corp Air Station – Yuma
Papago Park Military Reservation
Silver Bell Heliport
Military Air Bases in Arizona
Economic Impact of
Military and Aviation Education
Primary Impact
Total Impact *
* Includes Spin- Off Impacts
Aviation
Military Education
Economic
Activity ( mil) $ 1,678 $ 110
Payroll ( mil) $ 989 $ 46
Employment 28,497 1,230
Economic
Activity ( mil) $ 3,359 $ 253
Payroll ( mil) $ 1,570 $ 101
Employment 50,792 2,314
10
© Embry Riddle College
AVIATION GENERATES
$ 1.8 BILLION IN
TAX REVENUES
FOR ARIZONA
Arizona aviation and air visitor spending also
generate state and local tax revenues. Corporations
and persons directly involved in aviation pay taxes,
including income taxes, sales taxes and user fees.
As persons employed in aviation spend their
salaries, additional revenue is generated through
sales taxes. Air visitors, through their spending in
the state, are another source of tax revenues.
The spending from these direct and indirect activities
recirculates through the Arizona economy creating additional
sources of tax revenues. In 2002, the combination of direct,
indirect and induced activities created $ 1.8 billion in state
and local taxes for Arizona.
Sales tax collections were the single largest source of tax
revenues at $ 731 million, followed by business property
taxes at $ 415 million. Personal income taxes, which
amounted to $ 290 million, was the third largest source of tax
revenues stemming either directly or indirectly from
aviation. In addition, several taxes are levied on aviation
activities, from excise taxes on aircraft, to aviation fuel taxes,
and aircraft registration fees. These taxes raised $ 28.1
million in state and local revenues in 2002. Of all the tax
revenues stemming from aviation activities, only $ 10.9
million ( less than 1%) was reinvested in aviation through
the Aeronautics Division of the Arizona Department of
Transportation, whose mission is to encourage and advance
the safe and orderly development of aviation in the state.
State and Local Tax Revenues Generated by
Aviation Activities and Multiplier Impacts
Sales Taxes
$ 731M ( 40%)
Aviation
Taxes & Fees
$ 28M ( 2%)
Other
Business Taxes
$ 119M ( 7%) Other
Personal Taxes
$ 148M ( 8%)
Personal/ Corporate
Income Taxes
$ 351M ( 20%)
Business
Property Taxes
$ 415M ( 23%)
Allocation of Taxes Generated by
Aviation Activities
State & Local
Revenues
$ 1,781.2M ( 99.4%)
ADOT
Revenues
$ 10.9M ( 0.6%)
11
© Serge Baillul
Aviation benefits all sectors of the Arizona
economy. Arizona businesses rely on aviation to
transport personnel, send products to customers,
and receive materials and supplies. They also
depend on and benefit from the spending
generated by air visitors and persons employed
in aviation.
The majority of aviation’s economic benefits accrue to the
Services, Manufacturing, and Trade sectors.
AVIATION IMPACTS ON
OTHER SECTORS OF THE
ARIZONA ECONOMY
Economic Impact of Arizona Aviation
by Industry Sector
1998– 2002
F. I. R. E. *
9% ($ 3.3b)
Transportation,
Communications
& Utilities
15% ($ 5.8b)
Manufacturing
21% ($ 8.0b)
Government
12% ($ 4.6b)
Services
22% ($ 8.8b)
Wholesale &
Retail Trade
18% ($ 7.0b)
All Other **
** Includes Agriculture,
Mining, and Construction
* Includes Finance,
Insurance & Real Estate
$ 38.5b
12
29.9%
18.0%
6.8%
7.9%
66.8%
5.7%
$ 31.1b
$ 38.5b
$ 10.1b
$ 14.7b 470,600
420,800
The economic impact of Arizona aviation
increased from $ 31.1 billion in 1998 ( measured
in constant 2002 dollars) to $ 38.5 billion in 2002,
representing a real increase of 24%. This is not
surprising given the growth of the Arizona
economy and aviation industry over this period.
Despite the 2001 economic recession and the
negative impacts of the 9/ 11 terrorist attacks,
the Arizona economy, as well as aviation
activities, grew at above- average rates between
1998 and 2002.
Over this period, Arizona outpaced the United States in
basic economic measures. Statewide employment grew
by 8% and personal income, measured in constant
dollars, increased by nearly 15% significantly faster than
average US growth. Moreover, Arizona's population
increased by 17%, more than twice the rate of US
population growth.
Within Arizona, both commercial and general aviation
activities have grown since 1998. Arizona's airline
enplanements rose by 8%, while total US enplanements
showed no growth between 1998 and 2002. General
aviation operations in Arizona grew by 67% over the
5- year period while national general aviation operations
declined by 1.2%. Commercial airline and general
aviation visitors to Arizona increased by 467,000. Total
spending by these visitors rose from $ 4.7 billion in 1998
( expressed in 2002 dollars) to $ 5.6 billion in 2002,
representing a real increase of 18%. The Aerospace
industry added 1,800 jobs in Arizona and employment at
Arizona's military air bases rose by 6,500 jobs.
THE ECONOMIC IMPACT
OF ARIZONA AVIATION
CONTINUES TO GROW
Arizona’s Aviation Industry Growth
1998– 2002
Economic
Activity
Payroll Employment
( Jobs)
+ 24% + 45% + 12%
Arizona’s Economic & Demographic Growth
1998– 2002
Military Air Base
Employment
Air Visitor Spending
Personal Income
Total Employment
Aerospace
Employment
14.5%
7.9%
Arizona’s Aviation Growth
1998– 2002
Commercial Airline
Enplanements
GA Operations
Air Visitors
Population
16.7%
1998 2002
6.6%
8.6%
3.5%
US
Arizona
13
Air transportation, aviation support services, and
airport facilities are essential for Arizona’s
continued economic growth. For Arizona, aviation
creates jobs, provides access to domestic and
international markets and encourages tourism.
The growing integration of businesses, economies
and societies around the world is a driving force of
the modern era that will continue to shape and
influence the Arizona economy and lifestyle, well
into the future.
As Arizona businesses continue to expand their global
reach, they will increasingly require fast, efficient air
transportation to move goods, supplies and personnel. As
individuals increase and broaden their connections with the
global community through technological developments, the
demand for air passenger travel will continue to grow. On
top of the globalization trend, Arizona’s vigorous population
growth will further accelerate the need for air transportation
services and infrastructure. Arizona’s population is forecast
to reach 8 million by 2025, an increase of 54% over the
state’s 2002 population base.
Arizona’s demand for aviation is forecast to increase
significantly in step with the pace of globalization and
population growth. The number of airline passengers using
THE FUTURE OF ARIZONA
AVIATION IS VITAL TO THE
STATE’S ECONOMIC
GROWTH AND GLOBAL
COMPETITIVENESS
an Arizona airport is expected to rise by 77% from 19.9
million enplanements in 2002 to 35.3 million by 2025.
General aviation operations are projected to grow from
3.4 million in 2002 to 5.6 million in 2025, an increase of
64%. Similarly, the number of aircraft based at Arizona
airports is forecast to expand by 55%, reaching 11,059
registered aircraft.
The economic contribution of aviation to the Arizona
economy is projected to grow from $ 38.5 billion in 2002
to $ 68.8 billion in 2025. More than 800,000 Arizona jobs
will be linked in some way, either directly or indirectly,
to aviation.
Sources: ( 1) ADOT, Arizona State Aviation Needs Study, 2000; ( 2) Maricopa Association of Governments, Regional Aviation System Plan Update, 2001;
and ( 3) Pima Association of Governments, Regional Aviation System Plan Update, 2001.
2002 2010 2015
19.9m
25.2m
28.1m
2025
35.3m
Forecast Passenger Enplanements
( In millions)
2002 2010 2015
3.4m
4.1m
4.6m
2025
5.6m
Forecast GA Operations
( In millions)
2002 2010 2015
7,157
8,231
9,172
2025
11,059
Forecast GA Based Aircraft
14
© Serge Baillul
ECONOMIC IMPACT
PROJECTIONS FOR
ARIZONA AVIATION
Projected Economic Impacts: Employment and Economic Activity
( Dollar Amounts in $ Millions)
2002 2010 2015 2025
Economic Economic Economic Economic
Jobs Activity Jobs Activity Jobs Activity Jobs Activity
Commercial Aviation and Airports
Air Carriers ( On/ Off Airport) 38,751 $ 4,880 49,043 $ 6,176 54,623 $ 6,879 68,672 $ 8,648
Air Cargo and Courier Agents 25,979 $ 1,714 32,879 $ 2,169 36,620 $ 2,416 46,038 $ 3,037
Airport Businesses 11,488 $ 898 14,539 $ 1,136 16,193 $ 1,265 20,358 $ 1,591
Ground Transportation 4,268 $ 267 5,402 $ 338 6,016 $ 377 7,563 $ 474
Government Services 3,017 $ 178 3,820 $ 225 4,254 $ 250 5,348 $ 315
Airport Administration 1,824 $ 260 2,308 $ 329 2,571 $ 367 3,232 $ 461
Airport Construction 6,193 $ 517 7,838 $ 655 8,730 $ 729 10,975 $ 916
Subtotal 91,519 $ 8,714 115,829 $ 11,028 129,007 $ 12,283 162,188 $ 15,442
General Aviation
Non- scheduled Carriers 1,611 $ 137 1,945 $ 166 2,179 $ 186 2,638 $ 225
Aircraft Sales and Service 15,015 $ 1,119 18,130 $ 1,351 20,310 $ 1,513 24,586 $ 1,832
Aerial Services 6,229 $ 421 7,521 $ 509 8,426 $ 570 10,199 $ 690
Government Services 480 $ 29 580 $ 35 649 $ 39 786 $ 48
Airport Administration 753 $ 40 909 $ 48 1,019 $ 54 1,233 $ 65
Airport Construction 647 $ 54 781 $ 65 875 $ 73 1,059 $ 88
Subtotal 24,735 $ 1,800 29,867 $ 2,174 33,458 $ 2,435 40,501 $ 2,948
Aerospace Manufacturing 95,369 $ 11,233 123,257 $ 14,517 147,073 $ 17,323 203,256 $ 23,940
Aviation Education 2,314 $ 253 2,624 $ 287 2,839 $ 311 3,322 $ 364
Air Travelers 205,979 $ 13,166 256,768 $ 16,413 286,508 $ 18,314 355,939 $ 22,752
Military Aviation 50,792 $ 3,359 50,792 $ 3,359 50,792 $ 3,359 50,792 $ 3,359
Total 470,708 $ 38,525 579,137 $ 47,778 649,678 $ 54,024 819,998 $ 68,804
General Aviation
Commercial Aviation and Airports
Other Aviation Sectors
15
© Philip Preindl
The contribution of aviation to the Arizona economy
was calculated using accepted methods and
guidelines for estimating economic impacts. To the
extent possible, the approach used is consistent
with the 1998 study, The Economic Impact of Aviation
in Arizona, and previous studies commissioned by
the Aeronautics Division.
The primary impacts of the various aviation sectors were
identified through several sources: ( 1) the Arizona Depart-ment
of Economic Security ( ADES), which provided industry
specific employment and wages; ( 2) a survey of airport
managers that provided on- airport employment, operating
budgets, and capital expenditures for Arizona airports;
( 3) airport economic impact studies conducted for the
Flagstaff, Phoenix Sky Harbor, Deer Valley and Goodyear
airports in 2002 and 2003; ( 4) aviation activity levels at the
state’s public use airports; and ( 5) the Arizona Office of
Tourism ( AOT), which provided an estimate of annual
spending by domestic and international airline visitors. In
addition, the economic contribution of Arizona’s military air
bases was based on the Economic Impact of Arizona’s Princi-pal
Military Operations ( 2002), prepared by The Maguire
Company.
Business sales and total economic impacts, including the
spin- off impacts that are generated as spending recirculates
through the Arizona economy, were calculated using the
HOW THE ECONOMIC IMPACT
OF ARIZONA AVIATION
IS CALCULATED
IMPLAN economic impact modeling system. IMPLAN
provided economic statistics that describe that structure of
the Arizona economy in terms of employment, wages and
economic output by industrial sector. IMPLAN also pro-vided
Arizona- specific multipliers for employment, wages
and economic output. When applied to the primary
economic impacts, the state multipliers provide an estimate
of total economic impacts in Arizona, including both the
primary impacts of aviation and the spin- off ( or “ multiplier”)
effects. The state- specific multipliers account for the goods
and services purchased locally and excludes the impacts of
business, government and personal expenditures that flow
to entities outside of Arizona. IMPLAN is now the most
widely used input- output economic modeling system in the
US. The IMPLAN model relies on data provided by the US
Department of Commerce for inter- industry technology
relationships, and state and county economic data from the
US Bureau of Economic Analysis, the US Bureau of Labor
Statistics, and the US Department of Agriculture.
Forecast economic impacts for commercial aviation, general
aviation, and air travelers are based on forecasts of
enplanements and general aviation operations that were
derived from three system planning studies: ( 1) ADOT,
Arizona State Aviation Needs Study, 2000; ( 2) Maricopa
Association of Governments, Regional Aviation System Plan
Update, 2001; and ( 3) Pima Association of Governments,
Regional Aviation System Plan Update, 2001. Forecast
growth rates for individual airports from the various studies
were applied to actual 2002 base year activity. Projections for
Aerospace Manufacturing were based on aerospace industry
forecasts of employment and wages prepared by Global
Insight ( formerly DRI). The economic impacts of military
aviation were held constant over the forecast period, consis-tent
with the 1998 study methodology. Aviation education
impacts were projected based on projections of private
educational employment and Arizona population.
16
Aviation- related jobs provide employment for 228,000 people in Arizona – 10%
of the state’s total employment in 2002
Phoenix Sky Harbor is the nation’s 5th busiest commercial service airport, with
17.6 million enplaned passengers in 2002
More than 8 million visitors rely on air transportation to reach Arizona each year
Arizona ranks 4th among US states in total general aviation hours flown
Arizona is a leader in aviation education and pilot training, with more flight
instructors per capita than any other state, except Colorado
Arizona is home to a number of military air bases, which support the local
economy, provide training for military pilots and other aviation specialists, and
strengthen the nation’s air defense
Several leading aerospace companies operate in Arizona creating high- paying,
skilled jobs for Arizona residents
AVIATION THRIVES IN ARIZONA