What is an Airport Economic Impact Study?
What are the Key Economic Impacts that are Measured?
What is the Airport Economic Impact Study Process?
What are Indirect/Induced Impacts?
What are Total Economic Impacts?
What is an Airport System Plan?
How will this airport system plan effort benefit Alabama?
How will Alabama’s airports benefit from the airport system plan?
What Alabama airports are included in the airport system plan?
Airport economic impact studies are commonly used as educational tools by airport operators and state agencies for several purposes, including:
The Federal Aviation Administration (FAA) recognizes the value and importance of conducting economic impact studies. This is evidenced by their direct funding of such efforts and the degree to which FAA requires that studies maintain consistency in methodologies and application to ensure that results are both reasonable and defensible. A key point to remember is that the economic impact study methodology seeks to measure dollars flowing into the state/local economy as a result of each airport and their related activity.
Economic impacts are measured using employment, annual payroll, annual spending, and annual economic activity (the sum of payroll and spending).
Jobs/Employment - Economic impact studies measure employment, either in the number of individuals employed at an airport, or as full-time equivalents (FTE).
Payroll - Economic impacts for employee annual payrolls are measured in annual total wages at a minimum. When the value or impact of payroll benefits and taxes are also included, the study will indicate this (with separate line items) to assure that all payroll categories are being applied.
Spending - On-airport business expenditures for goods and services as well as businesses not on airport property; example: spending in the hospitality sector.
Annual Economic Activity - The sum of payroll and spending for each of the economic impact measurements.
In general, the economic impact process is generally very straightforward:
Step 1 – Direct Impacts are collected from the airport and all on-airport, aviation-related businesses, capturing all those economic activities that exist because of the presence of the airport as an aviation activity provider.
Step 2 – Based on the direct impacts, Indirect/Induced Impacts are calculated using an econometric input/output model that projects the multiplier effect. The multiplier effect essentially captures the additional impacts that result once the dollars generated by direct impacts enter the local economy.
Step 3 – By adding the direct impact to the indirect/induced impacts, the Total Economic Impacts are calculated that effectively capture the total impacts on the economy of the area being studied.
Direct impacts form the basis for all subsequent study results; therefore, it is critically important that the correct data is collected, vetted, and utilized in appropriate and consistent manners to ensure reasonable and defensible outcomes. This data is collected through online surveys, personal on-site visits, phone interviews, and other means to ensure that only appropriate data is being utilized. Specifically, an airport’s direct annual economic impact originates from activities associated with four or five specific sources (depending on if the airport has commercial air service). These are listed and described below:
Direct Impacts – Airport Management Activities
Airports often have employees dedicated to their daily management and operation. While these employees can be full-time, part-time, and/or seasonal, they all require payroll (unless they are purely volunteers) that result in direct economic impacts. Airports also typically have expenditures (or spending) to support their operations, which could include, but are not limited to, items such as utilities, insurance, supplies, and routine maintenance. This kind of spending also results in direct economic impacts and are considered in the modeling. In summary, direct employment, payroll, and spending are considered for this category.
Direct Impacts – Airport Tenant-Related Activities
Many airports have business tenants that provide aviation-related services. These often include Fixed Base Operators (an airport business tenant that provides fueling, maintenance, and other services to aircraft and airport customers), flight instructors, aerial applicators, corporate flight departments, airlines, TSA, and terminal concessionaires, among others. For a business tenant to be considered as a direct impact in an economic impact study, they need to be a business that provides aviation-related services with paid employees working at the airport. Direct employment, payroll, and spending are considered for this category.
It is also critical to recognize that standard industry practice requires that only those on-airport tenants that exist at the airport due to their ability to utilize the airport as an aeronautical resource be counted towards the value of that airport’s economic impact. It is critical to remember that the purpose of an economic impact study is to measure the dollars flowing into the state/local economy as a result of each airport’s presence as well as their aviation-related activities.
A question that often arises is whether to include the economic impact of airport tenant activities that are not aviation related. To be clear – it is not appropriate to include non-aviation activities and businesses that happen to be located on an airport as separate tenant-related impacts in that airport’s total economic impact. There are two key points to be made about this:
Direct Impacts – Average Annual Airport Capital Investment Activities
Capital projects are undertaken using local, state, federal, and private funds to maintain, rehabilitate, and expand airports; these expenditures all result in direct economic impacts. It should be noted that expenditures can encompass when projects are being planned, permitted, designed, engineered, and implemented. Additionally, since the nature of capital improvement projects can be cyclical, an airport’s average expenditures over a five-year period are typically considered to normalize those impacts. Direct employment, payroll, and spending are considered for this category.
Direct Impacts – General Aviation Visitor Spending
Visitors that arrive at an airport for both business- and leisure-related purposes on general aviation aircraft generate direct economic impacts through their use of an airport. General aviation is often a preferred transportation mode due to its efficiency, particularly for business travel. Impacts associated with these visitors will vary as greatly as the purposes of these visits, but will generally relate to the expenditures visitors have for things such as hotels, restaurants, ground transportation, entertainment, and retail purchases. It is critical to note that economic impacts associated with general aviation is only calculated with respect to visitors and not local residents. Impacts associated with local residents utilizing general aviation are recognized in other direct impact categories (e.g., airport business tenants). Direct employment, payroll, and spending are considered for this category.
Direct Impacts – Commercial Service Aviation Visitor Spending
Visitors that arrive at an airport for both business- and leisure-related purposes on a commercial service aviation aircraft generate direct economic impacts through their use of an airport. Impacts associated with these visitors will generally relate to the expenditures visitors have for things such as hotels, restaurants, ground transportation, entertainment, and retail purchases. It is critical to note that economic impacts associated with commercial service is only calculated with respect to visitors and not local residents. Impacts associated with local residents utilizing commercial air service are recognized in other direct impact categories (e.g., airport business tenants). Direct employment, payroll, and spending are considered for this category.
An econometric input/output model is used to estimate additional Indirect Impacts and Induced Impacts to the local and state economy that result from the Direct Impacts. Indirect impacts result from on-airport aviation-related businesses purchasing from other industries (e.g., an aircraft maintenance business that purchases goods and services locally). Induced Impacts result from the expenditure of new household income associated with both the Direct and Indirect impacts. As workers in aviation-related businesses spend their income locally, those monies are recirculated in the local and state economies resulting in additional economic impacts. Indirect and Induced impacts can be generated by all Direct Impacts.
Total Economic Impacts are the sum of Direct Impacts and the Indirect/Induced Impacts for each of the airport measurements, including those related to airport management, airport tenants, average annual airport capital investment, general aviation commercial service visitor spending.
The Federal Aviation Administration (FAA) has developed guidelines for developing an airport system plan that are set forth in FAA Advisory Circular 150/5070-7, The Airport System Planning Process. The primary purpose of airport system planning is to study the performance and interaction of an entire airport system to understand the connectivity and interrelationships of the airports with their host communities and among themselves. The effort involves examining the interaction of the airports with the aviation user requirements, economy, population, and surface transportation characteristics. The system plan may include all airports, heliports, spaceports, and seaplane bases in the study area that contribute to the national transportation system, as well as those that serve state and/or local aviation needs.
The main purpose of the system plan is to determine the type, extent, location, timing, and cost of the airport development needed to establish and maintain a viable, efficient, and effective system of airports. The study’s findings can be used to guide making informed decisions regarding which local airport development proposals to consider for future review and support.
It has been 20 years since the last comprehensive airport system plan was completed for Alabama. Since that time, aviation conditions and trends have changed throughout the nation and the state. The current study will provide a platform for coordinating airport development needs with other state agencies, regional/metropolitan planning organizations, and county/municipal governments. As stated above, the system plan will study the interrelationships of airports included in the system and support informed decisions that will lead to the effective allocation of financial resources. The system plan will help to determine if locally identified projects are supporting overall goals and needs of the state’s airport system.
Recommendations from the plan can help steer local airport planning decisions. The results can also help to educate state and local officials and stakeholders on the benefits of the system as well as its current and future needs. Individual airport planning efforts may not take into considerations activities and market forces occurring at nearby airports or even airports outside of Alabama. The system plan will provide a comprehensive look at how airports interact and where airport services may be lacking or duplicative. In addition, the system plan can benefit local airport sponsors’ planning efforts with forecasts, market area evaluations, system facility needs and neighboring airport influences. The system plan will also include an integrated list of airport development projects that represents both state and local needs.
The system plan focuses on the state’s 81 public use airports that are eligible for state funding support. That includes the airports identified in the FAA’s National Plan of Integrated Airports Systems (NPIAS). NPIAS airports are also eligible for federal support but must meet minimum requirements based on their activity levels, number of based aircraft, location, and other unique factors. Following is a listing of the airports included in this study.
FAAID |
Associated City |
Associated County |
Airport Name |
Service Type |
| BHM | BIRMINGHAM | JEFFERSON | BIRMINGHAM-SHUTTLESWORTH INTERNATIONAL | CS |
| DHN | DOTHAN | DALE | DOTHAN REGIONAL | CS |
| HSV | HUNTSVILLE | MADISON | HUNTSVILLE INTERNATIONAL-CARL T JONES FIELD | CS |
| MOB | MOBILE | MOBILE | MOBILE REGIONAL | CS |
| MGM | MONTGOMERY | MONTGOMERY | MONTGOMERY REGIONAL (DANNELLY FIELD) | CS |
| MSL | MUSCLE SHOALS | COLBERT | NORTHWEST ALABAMA REGIONAL | CS |
| 0J0 | ABBEVILLE | HENRY | ABBEVILLE MUNICIPAL | GA |
| 2A8 | ADDISON | WINSTON | ADDISON MUNICIPAL | GA |
| 8A0 | ALBERTVILLE | MARSHALL | ALBERTVILLE REGIONAL-THOMAS J BRUMLIK FIELD | GA |
| ANB | ANNISTON | CALHOUN | ANNISTON REGIONAL | GA |
| 26A | ASHLAND/LINEVILLE | CLAY | ASHLAND/LINEVILLE | GA |
| 0R1 | ATMORE | ESCAMBIA | ATMORE MUNICIPAL | GA |
| AUO | AUBURN | LEE | AUBURN UNIVERSITY REGIONAL | GA |
| 1R8 | BAY MINETTE | BALDWIN | BAY MINETTE MUNICIPAL | GA |
| EKY | BESSEMER | JEFFERSON | BESSEMER | GA |
| 0A8 | CENTREVILLE | BIBB | BIBB COUNTY | GA |
| M22 | RUSSELLVILLE | FRANKLIN | BILL PUGH FIELD | GA |
| 12J | BREWTON | ESCAMBIA | BREWTON MUNICIPAL | GA |
| 09A | BUTLER | CHOCTAW | BUTLER-CHOCTAW COUNTY | GA |
| 61A | CAMDEN | WILCOX | CAMDEN MUNICIPAL | GA |
| 14J | ELBA | COFFEE | CARL FOLSOM | GA |
| PYP | CENTRE | CHEROKEE | CENTRE-PIEDMONT-CHEROKEE COUNTY REGIONAL | GA |
| 02A | CLANTON | CHILTON | CHILTON COUNTY | GA |
| 11A | CLAYTON | BARBOUR | CLAYTON MUNICIPAL | GA |
| 9A4 | COURTLAND | LAWRENCE | COURTLAND | GA |
| SEM | SELMA | DALLAS | CRAIG FIELD | GA |
| CMD | CULLMAN | CULLMAN | CULLMAN REGIONAL-FOLSOM FIELD | GA |
| DYA | DEMOPOLIS | MARENGO | DEMOPOLIS REGIONAL | GA |
| 3M2 | DOUBLE SPRINGS | WINSTON | DOUBLE SPRINGS-WINSTON COUNTY | GA |
| EDN | ENTERPRISE | COFFEE | ENTERPRISE MUNICIPAL | GA |
| GZH | EVERGREEN | CONECUH | EVERGREEN REGIONAL - MIDDLETON FIELD | GA |
| 0J4 | FLORALA | COVINGTON | FLORALA MUNICIPAL | GA |
| 5R4 | FOLEY | BALDWIN | FOLEY MUNICIPAL | GA |
| 67A | FORT DEPOSIT | LOWNDES | FORT DEPOSIT-LOWNDES COUNTY | GA |
| 04A | LUVERNE | CRENSHAW | FRANK SIKES | GA |
| 07A | UNION SPRINGS | BULLOCK | FRANKLIN FIELD | GA |
| 33J | GENEVA | GENEVA | GENEVA MUNICIPAL | GA |
| AIV | ALICEVILLE | PICKENS | GEORGE DOWNER | GA |
| 7A0 | GREENSBORO | HALE | GREENSBORO MUNICIPAL | GA |
| 8A1 | GUNTERSVILLE | MARSHALL | GUNTERSVILLE MUNICIPAL - JOE STARNES FIELD | GA |
| CQF | FAIRHOPE | BALDWIN | H L SONNY CALLAHAN | GA |
| 5M0 | HARTSELLE | MORGAN | HARTSELLE-MORGAN COUNTY REGIONAL | GA |
| 0J6 | HEADLAND | HENRY | HEADLAND MUNICIPAL | GA |
| MDQ | HUNTSVILLE | MADISON | HUNTSVILLE EXECUTIVE AIRPORT TOM SHARP JR FIELD | GA |
| 4A9 | FORT PAYNE | DE KALB | ISBELL FIELD | GA |
| JKA | GULF SHORES | BALDWIN | JACK EDWARDS NATIONAL | GA |
| 4R3 | JACKSON | CLARKE | JACKSON MUNICIPAL | GA |
| 4R9 | DAUPHIN ISLAND | MOBILE | JEREMIAH DENTON | GA |
| M55 | VERNON | LAMAR | LAMAR COUNTY | GA |
| 7A3 | LANETT | CHAMBERS | LANETT MUNICIPAL | GA |
| 1A4 | SAMSON | GENEVA | LOGAN FIELD | GA |
| PRN | GREENVILLE | BUTLER | MAC CRENSHAW MEMORIAL | GA |
| HAB | HAMILTON | MARION | MARION COUNTY-RANKIN FITE | GA |
| SCD | SYLACAUGA | TALLADEGA | MERKEL FIELD SYLACAUGA MUNICIPAL | GA |
| BFM | MOBILE | MOBILE | MOBILE DOWNTOWN | GA |
| MVC | MONROEVILLE | MONROE | MONROE COUNTY AIRPORT | GA |
| 06A | TUSKEGEE | MACON | MOTON FIELD MUNICIPAL | GA |
| 3M8 | REFORM | PICKENS | NORTH PICKENS | GA |
| GAD | GADSDEN | ETOWAH | NORTHEAST ALABAMA REGIONAL | GA |
| 71J | OZARK | DALE | OZARK AIRPORT - BLACKWELL FIELD | GA |
| 1M4 | HALEYVILLE | WINSTON | POSEY FIELD | GA |
| 1A9 | PRATTVILLE | AUTAUGA | PRATTVILLE - GROUBY FIELD | GA |
| DCU | DECATUR | LIMESTONE | PRYOR FIELD REGIONAL | GA |
| 41A | TALLASSEE | TALLAPOOSA | REEVES | GA |
| M95 | FAYETTE | FAYETTE | RICHARD ARTHUR FIELD | GA |
| 7A5 | ROANOKE | RANDOLPH | ROANOKE MUNICIPAL | GA |
| 20A | ONEONTA | BLOUNT | ROBBINS FIELD | GA |
| 5R1 | CHATOM | WASHINGTON | ROY WILCOX | GA |
| 4A6 | SCOTTSBORO | JACKSON | SCOTTSBORO MUNICIPAL-WORD FIELD | GA |
| EET | ALABASTER | SHELBY | SHELBY COUNTY | GA |
| 79J | ANDALUSIA/OPP | COVINGTON | SOUTH ALABAMA REGIONAL AT BILL BENTON FIELD | GA |
| #N/A | THOMASVILLE | CLARKE | SOUTHWEST ALABAMA REGIONAL AIRPORT | GA |
| PLR | PELL CITY | ST CLAIR | ST CLAIR COUNTY | GA |
| 2R5 | ST ELMO | MOBILE | ST ELMO | GA |
| 7A6 | STEVENSON | JACKSON | STEVENSON | GA |
| ASN | TALLADEGA | TALLADEGA | TALLADEGA MUNICIPAL | GA |
| ALX | ALEXANDER CITY | TALLAPOOSA | THOMAS C RUSSELL FIELD | GA |
| TOI | TROY | PIKE | TROY MUNICIPAL AIRPORT AT N KENNETH CAMPBELL FIELD | GA |
| TCL | TUSCALOOSA | TUSCALOOSA | TUSCALOOSA REGIONAL | GA |
| A08 | MARION | PERRY | VAIDEN FIELD | GA |
| JFX | JASPER | WALKER | WALKER COUNTY-BEVILL FIELD | GA |
| EUF | EUFAULA | BARBOUR | WEEDON FIELD | GA |
| 08A | WETUMPKA | ELMORE | WETUMPKA MUNICIPAL | GA |