National Academies Press: OpenBook

Airport Economic Impact Methods and Models (2008)

Chapter: Front Matter

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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2008. Airport Economic Impact Methods and Models. Washington, DC: The National Academies Press. doi: 10.17226/23267.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2008. Airport Economic Impact Methods and Models. Washington, DC: The National Academies Press. doi: 10.17226/23267.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2008. Airport Economic Impact Methods and Models. Washington, DC: The National Academies Press. doi: 10.17226/23267.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2008. Airport Economic Impact Methods and Models. Washington, DC: The National Academies Press. doi: 10.17226/23267.
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Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2008. Airport Economic Impact Methods and Models. Washington, DC: The National Academies Press. doi: 10.17226/23267.
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TRANSPORTATION RESEARCH BOARD WASHINGTON, D.C. 2008 www.TRB.org A I R P O R T C O O P E R A T I V E R E S E A R C H P R O G R A M ACRP SYNTHESIS 7 Research Sponsored by the Federal Aviation Administration SUBJECT AREAS Aviation Airport Economic Impact Methods and Models A Synthesis of Airport Practice CONSULTANTS JOAKIM KARLSSON J. RICHARD LUDDERS and DALE WILDE Hoyle, Tanner & Associates Manchester, New Hampshire DARREN MOCHRIE and CRAIG SEYMOUR RKG Associates Durham, New Hampshire

AIRPORT COOPERATIVE RESEARCH PROGRAM Airports are vital national resources. They serve a key role in transportation of people and goods and in regional, national, and international commerce. They are where the nation’s aviation sys- tem connects with other modes of transportation and where federal responsibility for managing and regulating air traffic operations intersects with the role of state and local governments that own and operate most airports. Research is necessary to solve common oper- ating problems, to adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Cooperative Research Program (ACRP) serves as one of the principal means by which the airport industry can develop innovative near-term solutions to meet demands placed on it. The need for ACRP was identified in TRB Special Report 272: Airport Research Needs: Cooperative Solutions in 2003, based on a study sponsored by the Federal Aviation Administration (FAA). The ACRP carries out applied research on problems that are shared by airport operating agencies and are not being adequately addressed by existing federal research programs. It is modeled after the successful National Cooperative Highway Research Program and Transit Cooperative Research Program. The ACRP undertakes research and other technical activities in a variety of airport subject areas, including design, construction, maintenance, operations, safety, security, policy, planning, human resources, and adminis- tration. The ACRP provides a forum where airport operators can cooperatively address common operational problems. The ACRP was authorized in December 2003 as part of the Vision 100-Century of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP Oversight Committee (AOC), appointed by the Secretary of the U.S. Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant indus- try organizations such as the Airports Council International-North America (ACI-NA), the American Association of Airport Execu- tives (AAAE), the National Association of State Aviation Officials (NASAO), and the Air Transport Association (ATA) as vital links to the airport community; (2) the TRB as program manager and sec- retariat for the governing board; and (3) the FAA as program spon- sor. In October 2005, the FAA executed a contract with the National Academies formally initiating the program. The ACRP benefits from the cooperation and participation of air- port professionals, air carriers, shippers, state and local government officials, equipment and service suppliers, other airport users, and research organizations. Each of these participants has different interests and responsibilities, and each is an integral part of this cooperative research effort. Research problem statements for the ACRP are solicited period- ically but may be submitted to the TRB by anyone at any time. It is the responsibility of the AOC to formulate the research program by identifying the highest priority projects and defining funding levels and expected products. Once selected, each ACRP project is assigned to an expert panel, appointed by the TRB. Panels include experienced practitioners and research specialists; heavy emphasis is placed on including airport professionals, the intended users of the research products. The panels prepare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of the project. The process for developing research problem statements and selecting research agencies has been used by TRB in managing coop- erative research programs since 1962. As in other TRB activities, ACRP project panels serve voluntarily without compensation. Primary emphasis is placed on disseminating ACRP results to the intended end-users of the research: airport operating agencies, service providers, and suppliers. The ACRP produces a series of research reports for use by airport operators, local agencies, the FAA, and other interested parties, and industry associations may arrange for work- shops, training aids, field visits, and other activities to ensure that results are implemented by airport-industry practitioners. ACRP SYNTHESIS 7 Project 11-03, Topic 03-03 ISSN 1935-9187 ISBN 978-0-309-09802-1 Library of Congress Control Number 2007910442 © 2008 Transportation Research Board COPYRIGHT PERMISSION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB or FAA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The project that is the subject of this report was a part of the Airport Cooperative Research Program conducted by the Transportation Research Board with the approval of the Governing Board of the National Research Council. Such approval reflects the Governing Board’s judgment that the project concerned is appropriate with respect to both the purposes and resources of the National Research Council. The members of the technical advisory panel selected to monitor this project and to review this report were chosen for recognized scholarly competence and with due consideration for the balance of disciplines appropriate to the project. The opinions and conclusions expressed or implied are those of the research agency that performed the research, and while they have been accepted as appropriate by the technical panel, they are not necessarily those of the Transportation Research Board, the National Research Council, or the Federal Aviation Administration of the U.S. Department of Transportation. Each report is reviewed and accepted for publication by the technical panel according to procedures established and monitored by the Transportation Research Board Executive Committee and the Governing Board of the National Research Council. The Transportation Research Board of the National Academies, the National Research Council, and the Federal Aviation Administration (sponsor of the Airport Cooperative Research Program) do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the clarity and completeness of the project reporting. Published reports of the AIRPORT COOPERATIVE RESEARCH PROGRAM are available from: Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet at http://www.national-academies.org/trb/bookstore Printed in the United States of America

The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished schol- ars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. On the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and techni- cal matters. Dr. Ralph J. Cicerone is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Acad- emy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achieve- ments of engineers. Dr. Charles M. Vest is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academyís purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Acad- emy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scien- tific and engineering communities. The Council is administered jointly by both the Academies and the Insti- tute of Medicine. Dr. Ralph J. Cicerone and Dr. Charles M. Vest are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is one of six major divisions of the National Research Council. The mission of the Transportation Research Board is to provide leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisci- plinary, and multimodal. The Board’s varied activities annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation depart- ments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. www.TRB.org www.national-academies.org

ACRP COMMITTEE FOR PROJECT 11-03 CHAIR BURR STEWART Port of Seattle MEMBERS GARY C. CATHEY California Department of Transportation KEVIN C. DOLLIOLE UCG Associates BERTA FERNANDEZ Landrum & Brown JULIE KENFIELD Jacobs Carter Burgess CAROLYN MOTZ Hagerstown Regional Airport FAA LIAISON LORI PAGNANELLI ACI–NORTH AMERICA LIAISON RICHARD MARCHI TRB LIAISON CHRISTINE GERENCHER COOPERATIVE RESEARCH PROGRAMS STAFF CHRISTOPHER W. JENKS, Director, Cooperative Research Programs CRAWFORD F. JENCKS, Deputy Director, Cooperative Research Programs ROBERT E. DAVID, Senior Program Officer EILEEN DELANEY, Director of Publications ACRP SYNTHESIS STAFF STEPHEN R. GODWIN, Director for Studies and Special Programs JON M. WILLIAMS, Associate Director, IDEA and Synthesis Studies GAIL STABA, Senior Program Officer DON TIPPMAN, Editor CHERYL Y. KEITH, Senior Program Assistant TOPIC PANEL B. DAVID BALLARD, GRA Inc., Jenkintown, PA CLIFF BURNETTE, Virginia Department of Aviation CHARLES R. CHAMBERS, Airports Council International— North America SHELLEY LAMAR, Hartsfield–Jackson Atlanta International Airport KRISTI McKENNEY, Port of Oakland–Oakland International Airport MARTINE A. MICOZZI, Transportation Research Board JOSEPH SCHWIETERMAN, DePaul University DAVID FISH, Federal Aviation Administration (Liaison) LIYING GU, Airports Council International–North America (Liaison) JANET F. KAVINOKY, U.S. Chamber of Commerce (Liaison)

Airport operators, service providers, and researchers often face problems for which information already exists, either in documented form or as undocumented experience and practice. This information may be fragmented, scattered, and unevaluated. As a conse- quence, full knowledge of what has been learned about a problem may not be brought to bear on its solution. Costly research findings may go unused, valuable experience may be overlooked, and due consideration may not be given to recommended practices for solving or alleviating the problem. There is information on nearly every subject of concern to the airport industry. Much of it derives from research or from the work of practitioners faced with problems in their day- to-day work. To provide a systematic means for assembling and evaluating such useful information and to make it available to the entire airport community, the Airport Coopera- tive Research Program authorized the Transportation Research Board to undertake a con- tinuing project. This project, ACRP Project 11-03, “Synthesis of Information Related to Airport Practices,” searches out and synthesizes useful knowledge from all available sources and prepares concise, documented reports on specific topics. Reports from this endeavor constitute an ACRP report series, Synthesis of Airport Practice. This synthesis series reports on current knowledge and practice, in a compact format, without the detailed directions usually found in handbooks or design manuals. Each report in the series provides a compendium of the best knowledge available on those measures found to be the most successful in resolving specific problems. FOREWORD By Staff Transportation Research Board This synthesis documents how airport economic impact studies are currently conducted. It focuses specifically on the methods and models used to define and identify, evaluate and measure, and communicate the different facets of the economic impact of airports. The re- port discusses the various analysis methods, models, and tools that are available for local airport economic studies, as well as applicability and tradeoffs, including limitations, trends, and recent developments. This study relies on three distinct data collection efforts: surveys targeting both users and authors of economic impact studies to collect information on the extent of the studies, their motivation and use; a literature review covering the economic impacts and community ben- efits of airports; and a case study analysis, where four specific studies were selected to illus- trate various approaches to assessing economic impact. Joakim Karlsson, Hoyle, Tanner, and Associates, Manchester, New Hampshire, collected and synthesized the information and wrote the report. The members of the topic panel are acknowledged on the preceding page. This synthesis is an immediately useful document that records the practices that were acceptable within the limitations of the knowledge avail- able at the time of its preparation. As progress in research and practice continues, new knowledge will be added to that now at hand. PREFACE

CONTENTS 1 SUMMARY 5 CHAPTER ONE INTRODUCTION Background, 5 Traditional Methods for Economic Impact Analysis, 5 Evolving Trends in Aviation That Affect Economic Impact Methodologies, 6 7 CHAPTER TWO SURVEYING THE CRAFT OF AIRPORT ECONOMIC IMPACT STUDIES Survey Methodology, 7 Results, 7 14 CHAPTER THREE REVIEW OF A SELECTION OF ECONOMIC IMPACT STUDIES Methodology, 14 Results, 14 17 CHAPTER FOUR CASE STUDIES—PRACTICES IN AIRPORT ECONOMIC IMPACT ANALYSIS 21 CHAPTER FIVE TRADE-OFFS, LIMITATIONS, TRENDS, AND RECENT DEVELOPMENTS Limitations Affecting Collection of Inputs, 21 Limitations Affecting Application of the Model, 21 Limitations Affecting Use of the Output, 22 Trends and Recent Developments, 22 24 CHAPTER SIX CONCLUSIONS 26 REFERENCES 27 ACRONYMS 28 APPENDIX A SURVEY INSTRUMENTS Users Survey, 28 Authors Survey, 32 36 APPENDIX B STATISTICAL SUMMARY OF SURVEY RESULTS 63 APPENDIX C ANNOTATED LITERATURE REVIEW

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TRB's Airport Cooperative Research Program (ACRP) Synthesis 7: Airport Economic Impact Methods and Models explores how airport economic impact studies are currently conducted. The report examines the methods and models used to define and identify, evaluate and measure, and communicate the different facets of the economic impact of airports. The report also highlights the various analysis methods, models, and tools that are available for local airport economic studies, as well as their applicability and tradeoffs, including limitations, trends, and recent developments.

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