lecture 8-the economic role of airports

8/7/2019 Lecture 8-The Economic Role of Airports

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Lecture 8:

The Economic &

Political Role of

Airports

By: Zuliana Ismail


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The Economic Role of Airports

Airport:

Encompass several thousand acres area

Same functions and infrastructure as a modern city

Provide necessary public services Operating budgets in the tens to hundreds of million dollars

Capital projects accounting for many millions or billions of

dollars

Hundreds of occupants and concessionaires engaged inaeronautical and general business generating revenues.


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The Economic Role of Airports

Among the largest public facilities , airport play significant

roles in shaping economic of the communities they serve.

Thus, airport management should responsible for leading the

airport positively contributing to the local economy whileminimizing the impacts of airport to the environments.


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How airports contribute

to theeconomic

prosperityofthe

communitiestheyserve?


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airportactivitystimulates

economic growth

1. TAXES

Airports generate billion dollar in taxes "annually

2. AIR ACCESS

Providing air access for various companies to expandtheir business.

3. BUSINESS OPPORTUNITIES

Local services-most airports generate billion dollar in

economic activity

4. EMPLOYMENT /JOB OPPORTUNITIES

Most airports generate hundred thousand jobs

5. TOURIST


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Taxes Airports generate billions of dollars per year in state and local

taxes.

These tax dollars increase the revenues available for projects

& services benefit the residents of each state & community.


economic growth


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economic growth

Air access

The airport has become important to the growth of business &

industry in a community by providing air access for various

companies that must meet the demands of supply,competition & expanding marketing areas.

Communities without airports or air service have limitations

for economic growth.

For example: limited industrial development & limitedpotential for attracting tourism

Airports play a key role in the communitys ability to attract

and retain businesses


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Business opportunities

The use oflocal services for air cargo, food catering to theairlines, aircraft maintenance, ground transportation also

stimulates the economic growth. Regular purchases of fuel, supplies, equipment & other

services from local distributors inject additional incomeinto the local community.


economic growth

FOOD SERVICE

Ground handling


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economic growth

Employment /job opportunities

Either aviation or non aviation business located at the airport

represent a major source of employment for many

communities around the country.

Most airports generate hundred thousand jobs.

Direct employment employment attributed to the operation

and management of the airport, airline operations and

associated services. Example: MAHB, KLAS Indirect employment employment in non-aviation industries

that result from airport activity. Example: ERL,

Concessionaries


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economic growth

Tourist

Cities with good airport facilities also profit from tourist &

convention business such hotels, restaurants, retail stores,

sightseeing & transportation.


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OTHER COMMUNITYBENIFITS

Variety of other public benefits:

Time & cost savings associated with air

transportation

Access to national and international markets global

connections

Enhancement to community well-being/quality of

life Support of increased tourism/conventions

Comfort and convenience

lecture 8-the economic role of airports

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