Prepared for: North Dakota Aeronautics Commission

Prepared by: Wilbur Smith Associates and Kadrmas, Lee & Jackson | 2010

STUDY GOALS

• Quantify the economic

contribution of 89 airports

• Evaluate benefits of certain

off-airport aviation-related

industries

• Use FAA approved

methodology

ECONOMIC IMPACT IS:

• Employment

• Payroll and benefits

• Output (value of goods and services produced)

ECONOMIC IMPACT CONSISTS OF:

• On-airport impacts – business tenants

and government organizations

• Visitor impacts – expenditures by

people arriving in the region by

commercial service or general

aviation aircraft

• Induced impacts – secondary impacts

resulting from the re-spending of first

round impacts

• Non-quantitative impacts – benefits

related to health, welfare, and safety

STUDY PROCESS

TOTAL

ECONOMIC

IMPACTS

Multiplier

Effect

First Round Impacts

On-Airport Impacts:

Tenants

Gov. agencies

Capital Projects

Visitor Impacts:

Airline passengers

GA travelers

+Secondary

Impacts =On-Airport and Visitor

Impacts

Total

Impacts

Secondary Impacts

ON-AIRPORT IMPACTS BY MARKET SEGMENT

Airport Impacts Employment Payroll Output

Aerial Applicators 552 $ 24,491,400 $ 142,545,700

Air Ambulance 57 $ 2,522,100 $ 10,353,500

Air Cargo 339 $ 13,354,700 $ 52,935,400

Aircraft Maintenance 144 $ 5,358,300 $ 19,398,800

Airlines 429 $ 19,823,800 $ 60,296,400

Airport Management 803 $ 25,748,800 $ 90,757,400

Concession 228 $ 7,734,100 $ 47,037,800

Corporate Flight Departments 160 $ 7,363,500 $ 24,496,200

FBOs 673 $ 20,750,800 $ 109,271,700

Flight Instruction 711 $ 22,178,400 $ 77,527,300

Government 859 $ 48,499,500 $ 84,489,400

Military 1,627 $ 86,726,800 $ 145,450,500

Visitors 3,210 $ 81,307,200 $ 198,196,400

Airport Impact Totals 9,792 $ 365,859,400 $1,062,756,500

ON-AIRPORT MARKET SEGMENT IMPACTS

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Air Ambulance

Aircraft Maintenance

Corporate Flight Departments

Concession

Air Cargo

Airlines

Flight Instruction

Government

Airport Management

FBOs

Aerial Applicators

Military

Visitors

1%

2%

2%

4%

5%

6%

7%

8%

9%

10%

13%

14%

19%

ECONOMIC IMPACTS

On-Airports

– Total Jobs: 9,792

– Total Payroll: $365.9 million

– Total Output: $1.1 billion

Off-Airports

– Total Jobs: 5,688

– Total Payroll: $223.6 million

– Total Output: $560.2 million

AVIATION’S TOTAL ECONOMIC IMPACT

Total Jobs: 15,480

Total Payroll: $589 million

Total Output: $1.6 billion

STATEWIDE RESULTS

• Aviation continues to be a major

economic catalyst to North Dakota’s

economy

• Impact increased 29% over 2004 study

• Total output of $1.6 billion comprises

5.1% of North Dakota’s GDP

HECTOR INTERNATIONAL AIRPORT

• Largest Economic Impact

– 40% of ND Airport Impact

• Airline Visitors

– 725,000 passengers in 2010

– $52.8m impact

– $335 per visitor

• Diverse operations

– FBO

– Manufacturing

– Corporate Flight Departments

– Aircraft Parts distribution

– Air cargo

HECTOR INTERNATIONAL AIRPORT

• North Dakota Air National Guard

119th Wing:

– The “Happy Hooligans” fly C-21s

(switching to C-27s in 2011) and

MQ-1 Predators

– Largest employer on the field

HECTOR INTERNATIONAL AIRPORT

$52.8 million

$198.0 million

$174.3

million

4,001

$170.0 million

$425.1 million

NORTH DAKOTA

ECONOMIC IMPACT OF AVIATION

Thank you