The Role of U.S. Airports in the National Economy (2015)

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12 C H A P T E R 1 1.1 Purpose The purpose of ACRP Project 03-28 is to estimate the national economic impact of U.S. public use airports that are included in the NPIAS.1 In conducting this investigation, the research team explored the overall economic contribution of airports in the national economy and also explored issues quantifying the linkage between airport system performance and economic activity for different types of air passenger trips and air cargo shipments. Figure 1 illustrates the flow of tasks used to develop the data collection plan and to complete the research. Tasks 1–5 address the theoretical underpinnings of the research. These tasks document past methodologies used to conduct airport economic impact studies; the differences between national approaches and state or regional impact studies of airports and airport systems; the roles of airports in the national aviation system cross-referenced by size and geo- graphical characteristics; and various modeling techniques and data sources. Following Task 6, the Interim Report, Tasks 7 and 8 use the findings of the initial five tasks to calculate the economic impact of public use airports on the national economy. These tasks explore alternative methodologies and categories of impacts, including the economic contribution of the current U.S. airport network, productivity effects if direct (nonstop) connections among airports or air cargo tonnage change, and impact stemming from changes in airfares. Task 9 discusses how the three analyses undertaken in the preceding tasks cor- respond with each other. In addition to quantitative research, 76 interviews were con- ducted with companies that rely on business travel and air cargo shipments, business organizations, airport administrators, and representatives of alliances of airports, airlines, and general avia- tion users. The purpose of this outreach was to review observa- tions and conclusions suggested by data research in real world contexts. In addition, an assessment of non-quantifiable national benefits was conducted to assure that this research reported the full breadth of the national benefits of airports. Lastly, Task 10 discusses additional research suggested by Tasks 1 through 9. Introduction

13 Note: MFP estimates changes in GDP that are driven by changes of nonstop flights that connect regions; CS is the difference between what consumers are willing to pay for a good or service and what they actually pay. In the context of air service, the difference in willingness to pay for air service and what is actually spent. Static economic analysis shows the economic contributions or roles of airports in regional, state, or national economy at a specific point in time. Figure 1. Research flow chart.