Posted: February 26th, 2023

Delivering Value in the Air Transportation System

In preparation for this research effort, review the following resources and familiarize yourself with the Airport Categories (FAA) https://www.faa.gov/airports/planning_capacity/categories established by the FAA.

Also, read the following case study which is located in the attachment section.

Grubesic, T. H., Fuellhart, K., Wei, F., & O’Connor, K. (2017). Regional perspectives on general aviation and reliever airports: A case study of the Phoenix metropolitan area. Regional Science Policy & Practice, 9(2), 101-120.

Review the document on the role of reliever airports in the Minneapolis/St. Paul market which is located in the attachment section. 

The economic impact of reliever airports (Metropolitan Airports Commission)

Analyze the air transport system as you work to answer the following topics in APA format:

At a minimum your document should include the following topics:

o What is the general environment in the global airline industry driving delivery channel decisions?

o What factors led to the success of major metro areas to maintain their secondary and reliever airports?

o Given these projections in traffic growth and the existing air traffic delays at many of the most important hubs in the United States, do reliever airports provide an opportunity to ameliorate congestion and expand/enhance commercial operations in the United States?

o Research reflects various positive aspects of having a strong regional airport system. What are some of the negative aspects?

 Requirements:

· At least three sections, a 150-word introduction, body content containing subject headings, and wrap-up or summary.

· Include a title page with your name, course, assignment number, and title.

· Use current APA format in-text citations and include a reference page at the end.

· A minimum of 4 pages, double-spaced (not including the title or reference pages).

Prepared for

Prepared by

April 3, 2018

Metropolitan Airports Commission

ECONOMIC IMPACT OF

THE RELIEVER AIRPORTS

This document is made available electronically by the Minnesota Legislative Reference Library
as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp

Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study i

  • Executive Summary
  • The Metropolitan Airports Commission engaged InterVISTAS Consulting Inc. (InterVISTAS) to conduct an
    economic impact study to account for the operations of the six general aviation (GA) airports under its
    jurisdiction in the greater Minneapolis-St. Paul metropolitan area. Collectively, they are referred to as the
    MAC reliever airport system. This study updates a previous economic impact report prepared in 2005
    and provides a current snapshot of the airport’s economic contribution to the greater Minneapolis-St. Paul
    area.

    General aviation is defined as the operation of any type of aircraft certificated by the U.S. Federal Aviation
    Administration (FAA) other than those used for scheduled airline service, government or the military.
    General aviation aircraft include fixed-wing piston and turboprop airplanes, jets, helicopters, gliders, and
    hot-air balloons. General aviation covers everything from the personal use of aircraft by recreational pilots
    to operations of corporate aircraft to transport people and/or cargo for business purposes. The term
    general aviation also incorporates sight-seeing flights, aerial photography, air medical services,
    agriculture-related flights and flight training. The facilities primarily used by GA aircraft are commonly
    referred to as general aviation airports.

    The six general aviation airports that form the MAC reliever airport system are:

     Airlake Airport (LVN). Airlake Airport is located in Lakeville, a suburb south of the metropolitan
    area. It primarily serves private and recreational pilots on its single runway.

     Anoka County – Blaine Airport (ANE). The airport is located in Blaine, directly north of the Twin
    Cities. In terms of the number of aircraft based at the airport, it is the largest in the reliever
    system, serving the most diverse assortment of aircraft, including recreational pilots, corporate
    and antique aircraft.

     Crystal Airport (MIC). Northwest of Minneapolis and adjacent to Brooklyn Park and Brooklyn
    Center, Crystal Airport has three paved and one turf runway and two non-precision instrument
    approaches.

     Flying Cloud Airport (FCM). Southwest of the metro area in the suburb of Eden Prairie, Flying
    Cloud Airport serves both corporate and recreational flying. It is the busiest airport in the reliever
    system based on the number of aircraft operations.

     Lake Elmo Airport (21D). East of the Twin Cities, Lake Elmo Airport provides easy access to the
    metropolitan region along with the scenic destinations along the St. Croix River.

     St. Paul Downtown Airport (STP). Near the banks of the Mississippi River and in the shadow of
    downtown St. Paul, this airport is the only airport in the reliever system with a runway longer than
    5,000’.

    These six airports complement the operations of Minneapolis-St. Paul International Airport (MSP) and
    serve as significant economic contributors to the region. Collectively, the airports play critical roles within
    the metropolitan area by facilitating economic development. They support direct employment and
    facilitate trade of goods and services, tourism, investment, and enhanced productivity. Individually, each
    airport supports a relatively large number of aircraft operations (takeoffs and landings). Individually, each
    airport not only serves both a particular local community, but also contributes as part of an integrated
    system to support the regional economy. Altogether in 2016, the reliever airports supported an average

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study ii

    of almost 900 operations each day – or about 80 percent of the average number of daily operations at
    MSP.

    Overview of Economic Impact Concepts

    Economic impact is a measure of the spending and employment associated with a sector of the economy,
    a specific project, or a

    change

    in government policy or regulation.

    Economic impact can be measured along several dimensions. The most common are:

    1. Employment – person years of employment supported (expressed in terms of “full time
    equivalents” or FTEs).1 Because many jobs may be only part-time or seasonal, the number of
    jobs is greater than the number of person years of employment. Hours worked in part-time
    and seasonal employment are translated into FTEs.

    2. Earnings – includes wages, salaries, and benefits associated with employment tied to the
    airport.

    3. Economic output – the dollar value of industrial output produced. Sometimes referred to as
    “economic activity,” it reflects the spending (e.g., capital improvement plus revenue) by firms,
    organizations, and individuals. In the case of organizations that do not generate revenue
    (e.g., government-provided air traffic control services), annual operating expenses are
    counted.

    4. Gross Domestic Product (GDP). Sometimes referred to as Value Added, this is a measure
    of the money value of final goods and services produced as a result of economic activity. This

    measure is net of the value of intermediate goods and services used up to produce the final
    goods and services.

    The three major components of economic impact are classified as direct, indirect, and induced impacts.

    • Direct impacts account for the economic activity of the aviation sector itself. In the case of an airport,
    all of those people who work in an aviation-related capacity either on-site or off-site would be
    considered direct employment (e.g., ground handling, air traffic controllers, etc.). At GA airports,
    typically the businesses that handle aircraft operations – known as Fixed Base Operators (FBOs) —
    account for the largest concentration of employment.

    • Indirect impacts arise because of the direct impacts. For an airport, indirect impacts originate from
    off-site firms that supply goods or services to airport users. An example would be food wholesalers or
    restaurants that supply food for catering on flights.

    • Induced impacts are those created by the spending of wages, salaries, and profits earned in the
    course of the direct and indirect economic activities. For instance, if a maintenance employee re-
    models his/her home, the renovation would support activity in the home construction industry.

    • Visitor spending impacts. Another related economic impact that arises from the airport’s operations
    flows from visitors to a region who arrive and depart via the airport rather than by other means (e.g.,
    auto). The hospitality industry in particular benefits from visitors who spend money on lodging, meals,

    1 One person year is equivalent to 1,800 hours of work. Person years are the same as FTEs.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study iii

    entertainment, car rentals, and retail. Direct employment associated with those industries is counted
    as part of the economic impacts of the airport.

    Total

    impacts are the sum of direct, indirect, induced, and visitor spending impacts.

    Figure ES-1 provides a graphical overview of economic impact at airports.

    Figure ES-1:
    Economic Impact Overview –

    Airports

    Economic Impact of Ongoing Operations
    The economic impact of the MAC Reliever Airport System extends
    throughout the entire metropolitan region.

    Direct economic impact measures the factors directly associated with
    the six airports. This includes employment of all tenants located on the
    airports’ properties. The direct impacts of the reliever airport system in
    2016 are estimated to be nearly 1,030 direct jobs (equivalent to
    approximately 870 direct FTEs or person years of employment), earning
    approximately $56 million in direct wages. Direct employment generates
    $198 million in direct GDP and $355 million in direct economic output
    annually.

    Indirect economic impacts are those that are attributable to firms and
    organizations that supply goods and/or services to those directly
    involved in the airports and their operations. This measure accounts for
    the employment and economic activity that would not occur were it not
    for the operations of the reliever airports. All of these firms are located
    off airport properties, elsewhere in the metropolitan region. In 2016, the

    Ongoing Economic
    Impacts of the MAC
    Reliever Airports

    Annual Direct Impacts:

     1,030 jobs

     870 full-time equivalents

     $56 million in wages

     $198 million in gross
    domestic product (GDP)

     $355 million in economic
    output

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study iv

    indirect impacts associated with the reliever airports’ operations included 670 indirect FTEs or person
    years of employment, earning approximately $44 million in wages.

    The extent of the airport’s economic footprint reverberates throughout the region as employees in firms
    directly and indirectly associated with the airports spend their wages and salaries and generate another
    wave of economic activity. These “rippled effects” are known as the induced economic impacts of the
    airports’ operations. The induced impacts resulting from ongoing the reliever airports’ operations include
    an estimated 810 induced FTEs with an associated $36 million in wages.

    The total operational economic impact of the reliever airports’ operations on the region’s economy is
    calculated by summing the direct, indirect and induced impacts from the airports’ operations. Table ES-1
    summarizes the economic impact of the MAC reliever airport system’s operations on the metropolitan
    region in 2016. Altogether, in 2016, the economic impacts include a total of 2,340 FTEs in the
    Minneapolis-St. Paul regional economy. Total regional income of all employees amounts to $136 million
    in wages. Furthermore, the airports’ operations contributed an estimated $370 million and $662 million in
    total GDP and total economic output, respectively, to the regional economy.

    Table ES-1:
    Total Operational Economic Impact of the Reliever Airport System’s Operations, 2016

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 1,030 870 $56 $198 $355

    Indirect 780 670 $44 $100 $179

    Induced 950 810 $36 $72 $128

    Total 2,750 2,340 $136 $370 $662
    Note: Employment figures (jobs and FTEs) are rounded to the nearest ten. Totals may not sum due to rounding.

    Economic Impact of Airport-Related Visitor Spending
    in the Region
    Individuals who visit the region via the reliever airports support additional economic impacts by spending
    their travel dollars locally. The economic impact of visitor spending depends on the total number of “true
    visitors,” the amount they spend, the length of stay, and the distribution of their spending across different
    categories – mostly in the hospitality sector. Spending on hotels, restaurants, retail, and entertainment
    supports jobs and additional spending in the region.

    Little data is available on the number of visitors to the region who arrived via these airports. No
    government agency formally and systematically collects data on the number of travelers who use general
    aviation. The very nature of business aviation, which places a premium on anonymity, makes it difficult to
    gather data on passenger movements.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study v

    Many airports may not have statistically reliable data on the total number of aircraft operations that occur
    at the airfield. Moreover, not every operation at an airport brings “true visitors” to the area. Some aircraft
    operations are “local” in nature, as opposed to “itinerant.” In general, local operations are those that
    occur within the immediate area, originating and returning to the same airport while itinerant operations
    originated at or were destined to land outside the area. Local operations basically do not bring visitors to
    the airport, but itinerant operations do.

    Each of the reliever airports sees a number of itinerant operations, and some of those airports experience
    large numbers of these flights. With those flights, some pilots and visitors might only stop for fuel or to
    take a break from flying. A sizeable percentage, however, will spend several hours in the area visiting
    friends or relatives or conducting business. Some visitors will stay a night or more in the area for
    personal or business reasons. In those cases, the activity at the airport supports additional economic
    activity in the local economies, most directly in the hospitality industry. (The impact of business aviation –
    possibly including major business deals – is impossible to measure but can clearly have broad and
    significant impacts on the local and regional economies.)

    The total economic impact of non-local visitor spending is shown in Table ES-2.

    Table ES-2:
    Total Economic Impact of Reliever Airports’ Visitor Spending, 2016

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 620 520 $15 $27 $48

    Indirect 110 90 $6 $12 $21

    Induced 180 150 $7 $13 $24

    Total 910 760 $27 $52 $94
    Note: Employment figures (jobs and FTEs) are rounded to the nearest ten. Totals may not sum due to rounding.

    Consolidated Economic Impact on the Region
    The sum of the impacts of the airport’s ongoing operations and visitor spending constitute the reliever
    airports’ consolidated economic impact in the seven-county region. Table ES-3 summarizes these
    impacts.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study vi

    Table ES-3:
    Consolidated Economic Impacts of the Reliever Airports’ Operations and Visitor Spending, 2016

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total Direct 1,650 1,380 $71 $224 $403

    Total Indirect 890 760 $50 $112 $200

    Total Induced 1,130 960 $43 $85 $153

    Grand Total 3,660 3,100 $164 $421 $756
    Note: Employment figures (jobs and FTEs) are rounded to the nearest ten. Totals may not sum due to rounding.

    Annual Tax Impacts of Ongoing Operations
    In addition, ongoing operations at the reliever airport system’s airports contribute to government revenue
    including those received by federal, state, and local governments. Total taxes paid on an annual basis, by
    airport employers and employees as well as passengers, are estimated at $27 million per year. The
    majority of taxes accrue to the federal government at 59 percent overall, while the State of Minnesota and
    local governments receive 41 percent of the tax revenue generated by the airport. These figures exclude
    any estimated taxes levied on corporate profits.

    Figure ES-2:
    Annual Estimated Tax Revenues of the Reliever Airports by Level of Government

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study vii

    Contents

    Executive Summary …………………………………………………………………………………………. i

  • 1 Introduction and Background
  • ……………………………………………………………………. 9

    The Greater Minneapolis-St. Paul Region ………………………………………………………………….. 10
    General Aviation is a Substantial Economic Contributor ………………………………………………. 11
    The MAC Reliever Airport System …………………………………………………………………………….. 13
    Economic Impact Defined ………………………………………………………………………………………… 14
    Contributions to Local Governments from Airport Operations ……………………………………….. 17
    Overview of Methodology …………………………………………………………………………………………. 17

  • 2 Economic Impact of Airlake Airport
  • ………………………………………………………….. 19
    Direct Impacts…………………………………………………………………………………………………………. 19
    Multiplier Impacts…………………………………………………………………………………………………….. 20
    Total Operational Impacts ………………………………………………………………………………………… 20
    Visitor Impacts ………………………………………………………………………………………………………… 21
    Consolidated Impacts ………………………………………………………………………………………………. 21
    Tax Contributions from Airlake Airport ……………………………………………………………………….. 21

  • 3 Economic Impact of Anoka County-Blaine Airport
  • …………………………………….. 22
    Direct Impacts…………………………………………………………………………………………………………. 23
    Multiplier Impacts…………………………………………………………………………………………………….. 23
    Total Operational Impacts ………………………………………………………………………………………… 23
    Visitor Impacts ………………………………………………………………………………………………………… 24
    Consolidated Impacts ………………………………………………………………………………………………. 24
    Tax Contributions from Anoka County – Blaine Airport …………………………………………………. 25

  • 4 Economic Impact of Crystal Airport
  • …………………………………………………………. 26
    Direct Impacts…………………………………………………………………………………………………………. 27
    Multiplier Impacts…………………………………………………………………………………………………….. 27
    Total Operational Impacts ………………………………………………………………………………………… 27
    Visitor Impacts ………………………………………………………………………………………………………… 28
    Consolidated Impacts ………………………………………………………………………………………………. 28
    Tax Contributions from Crystal Airport ……………………………………………………………………….. 29

  • 5 Economic Impact of Flying Cloud Airport
  • …………………………………………………. 30
    Direct Impacts…………………………………………………………………………………………………………. 31
    Multiplier Impacts…………………………………………………………………………………………………….. 31
    Total Operational Impacts ………………………………………………………………………………………… 31
    Visitor Impacts ………………………………………………………………………………………………………… 32
    Consolidated Impacts ………………………………………………………………………………………………. 32
    Tax Contributions from Flying Cloud Airport ……………………………………………………………….. 33

  • 6 Economic Impact of Lake Elmo Airport
  • …………………………………………………….. 34
    Direct Impacts…………………………………………………………………………………………………………. 34
    Multiplier Impacts…………………………………………………………………………………………………….. 35
    Total Operational Impacts ………………………………………………………………………………………… 35
    Visitor Impacts ………………………………………………………………………………………………………… 36
    Consolidated Impacts ………………………………………………………………………………………………. 36
    Tax Contributions from Lake Elmo Airport ………………………………………………………………….. 36

  • 7 Economic Impact of St. Paul Downtown Airport
  • ………………………………………… 37
    Direct Impacts…………………………………………………………………………………………………………. 37

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study viii

    Multiplier Impacts…………………………………………………………………………………………………….. 38
    Total Operational Impacts ………………………………………………………………………………………… 38
    Visitor Impacts ………………………………………………………………………………………………………… 39
    Consolidated Impacts ………………………………………………………………………………………………. 39
    Tax Contributions from St. Paul Downtown Airport ………………………………………………………. 39

  • 8 Summary of Economic Impact Results
  • …………………………………………………….. 40
    Operational Economic Impacts …………………………………………………………………………………. 40
    Economic Impacts from Visitor Spending …………………………………………………………………… 41
    Consolidated Economic Impact of the Reliever Airports ……………………………………………….. 41
    Tax Revenue Impacts ……………………………………………………………………………………………… 42

    9 Comparison of 2005 and 2016 Economic Impacts ……………………………………… 43
    Comment on Changes over Time ……………………………………………………………………………… 44

  • Appendix: Methodology
  • ……………………………………………………………………………….. 46
    Estimating Current Economic Impact …………………………………………………………………………. 46
    Surveying Direct Employment …………………………………………………………………………………… 46
    Inferring Employment ………………………………………………………………………………………………. 47
    Estimating Indirect and Induced Impacts with Economic Multipliers ……………………………….. 47
    Study Time Frame …………………………………………………………………………………………………… 48
    Jobs versus Person Years of Employment …………………………………………………………………. 48
    Visitor Spending Analysis …………………………………………………………………………………………. 48
    Tax Impact Analysis ………………………………………………………………………………………………… 50

  • Glossary of Terms
  • ………………………………………………………………………………………… 51

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 9

    1 Introduction and Background
    The Metropolitan Airports Commission engaged InterVISTAS Consulting Inc. (InterVISTAS) to conduct an
    economic impact study to account for the operations of the six general aviation (GA) airports under its
    jurisdiction in the greater Minneapolis-St. Paul metropolitan area. Collectively, they are referred to as the
    MAC reliever airport system. This study updates a previous economic impact report prepared in 2005,
    and provides a current snapshot of the airport’s economic contribution to the greater Minneapolis-St. Paul
    area.

    General aviation is defined as the operation of any type of aircraft certificated by the U.S. Federal Aviation
    Administration (FAA) other than those used for scheduled airline service, government or the military.
    General aviation aircraft include fixed-wing piston and turboprop airplanes, jets, helicopters, gliders, and
    hot-air balloons. General aviation covers everything from the personal use of aircraft by recreational pilots
    to operations of corporate aircraft to transport people and/or cargo for business purposes. The term
    general aviation also incorporates sight-seeing flights, aerial photography, air medical services,
    agriculture-related flights and flight training. The facilities primarily used by GA aircraft are commonly
    referred to as general aviation airports.

    The six general aviation airports that form the MAC reliever airport system are:

     Airlake Airport. Airlake Airport is located in Lakeville, a suburb south of the metropolitan area. It
    primarily serves private and recreational pilots on its single runway.

     Anoka County – Blaine Airport. Directly north of the Twin Cities in Blaine, the airport is the largest
    in the reliever system, serving the most diverse assortment of aircraft, including recreational
    pilots, corporate and antique aircraft.

     Crystal Airport. Northwest of Minneapolis and adjacent to Brooklyn Park and Brooklyn Center,
    Crystal Airport has three paved and one turf runway and two non-precision instrument
    approaches.

     Flying Cloud Airport. Southwest of the metro area in the suburb of Eden Prairie, Flying Cloud
    Airport serves both corporate and recreational flying. It is one of the busiest airports in the
    reliever airport system.

     Lake Elmo Airport. East of the Twin Cities, Lake Elmo Airport provides easy access to the
    metropolitan region along with the scenic destinations along the St. Croix River.

     St. Paul Downtown Airport. Near the banks of the Mississippi River and in the shadow of
    downtown St. Paul, this airport is the only airport in the reliever system with a runway longer than
    5,000.’

    These six airports complement Minneapolis-St. Paul International Airport (MSP), which hosts both GA
    and commercial airline operations. The reliever airports provide alternative points of access to the
    metropolitan region for GA operators and help alleviate congestion in the airspace and on MSP’s airfield.
    Collectively, the reliever airports play critical roles within the industry by facilitating the movement of
    people, goods, and services regionally, nationally, and internationally. The industry facilitates employment
    and economic development in the broader economy through mechanisms that include trade of goods and
    services, tourism, investment, and enhanced productivity.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 10

    The aviation sector is a major economic generator, and airports play a critical role within the industry by
    facilitating the movement of people, goods, and services throughout the nation and world. The industry
    facilitates employment and economic development in the broader economy through a number of key
    mechanisms including tourism, investment, trade of goods and services, and productivity.

    The Greater Minneapolis-St. Paul Region
    One of the great metropolitan regions in the United States, Minneapolis, Saint Paul, and the neighboring
    communities, collectively referred to as the Twin Cities, is renowned for its exceptional quality of life. The
    area boasts a vibrant culture, tremendous recreational opportunities, beautiful natural surroundings, and a
    thriving diverse economy.

    According to data from the U.S. Bureau of Economic Analysis, as of 2015, the metropolitan area included
    a population of over 3.5 million. The region’s population enjoys one of the highest per capita incomes in
    the nation (over $55,000). Total employment in the region exceeds 2.4 million jobs. The population is also
    recognized for being among the most highly educated in the nation.

    The diverse and growing regional economy
    features agriculture, food processing, computing,
    printing and publishing, large- and small-scale
    manufacturing, health care, arts and
    entertainment as well as medical instruments,
    education, and finance. The area is home to 17
    Fortune 500 companies, including five Fortune
    100 companies: UnitedHealth Group, Target,
    Best Buy, CHS, and 3M. The region also
    supports a large number of colleges and
    universities including the University of Minnesota
    and the University of St. Thomas. The area also
    hosts teams in five different major league
    professional sports: the Minnesota Twins,
    Minnesota Vikings, Minnesota Timberwolves,
    Minnesota Wild, and Minnesota United FC. St.
    Paul is the capital of Minnesota and is home to
    the Minnesota State Capitol, governor’s mansion,
    and most buildings in the state government.

    The Metropolitan Airports Commission (MAC)
    operates one of the largest aviation systems in
    the United States, consisting of MSP and the six
    reliever airports in the metropolitan area. Figure
    1-1 illustrates the location of all the MAC’s
    airports in the Minneapolis-St. Paul (Twin Cities)
    metropolitan area. The core metropolitan area
    includes seven counties surrounding the Twin
    Cities: Anoka, Carver, Dakota, Hennepin,
    Ramsey, Scott, and Washington. This seven-
    county metro region is home to a total population
    of over 3 million and 2.2 million jobs.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 11

    Figure 1-1: MAC Airports in the Seven-County Metropolitan Area

    Source: InterVISTAS

    General Aviation is a Substantial Economic Contributor
    Airports make substantial contributions to local and regional economies. They facilitate the movement of
    people, goods, and services throughout the nation and the world, allowing the economy to operate more
    efficiently. Most people have had the experience of flying on commercial aircraft, and have encountered
    employees at the airport who make that possible. But relatively few have had first-hand experiences with
    general aviation, so their knowledge of this sector of the economy tends to be limited.

    GA operations are typically managed by private companies called “fixed base operators” (FBOs). An
    FBO is a commercial business authorized by the airport sponsor to operate on an airport and provide
    aeronautical services such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft
    maintenance, flight instruction, etc. FBOs serve functions similar to terminals for commercial airline

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 12

    passengers. In addition to the functions directly related to servicing aircraft, they may include meeting
    spaces and food service. At smaller airports, these functions might be handled by the airport’s
    management. Larger airports may have more than one FBO, and they compete for customers based on
    service offerings, amenities and prices.

    Most people flying to the Twin Cities and surrounding region use commercial aircraft, arriving and
    departing from Minneapolis-St. Paul International Airport (MSP). But for many others, whether flying for
    personal recreational purposes or for business, fly into one of the MAC reliever airports. GA also includes
    other activities. According to data from the FAA’s most recent (2015) survey of GA, about half of all GA
    hours flown is for personal and business purposes. Others include instruction (flight training), aerial
    application of agricultural products, aerial observation, medical transport, air tours, and air taxi
    operations.2

    GA Activity Has Been Declining Nationally
    Nationally, GA activity has been declining. Data from the FAA show broad-based decreases in the
    number of GA pilots, the number of registered aircraft, and total annual and average flight hours. Since
    the last economic impact study of the reliever airports was completed in 2005, national-level measures of
    GA activity show that:

    • The total number of aircraft has declined. From 2004 to 2015, the number of active GA aircraft
    declined by more than 9,000 aircraft, a loss of four percent.

    • The number of active fixed-wing piston GA aircraft dropped by more than 24,000 (15 percent).

    • Offsetting that decline, the number of active fixed-wing turboprop aircraft increased by over 1300
    (16 percent) and the number of active fixed-wing turbojet aircraft increased by over 4,100 (45
    percent).

    • The number of active rotorcraft also increased. Turbine powered rotorcraft increased by nearly
    2,700 (34 percent).

    • GA hours flown in the U.S. have been declining since at least 1980. This is especially noticeable
    with piston aircraft traffic. Between 2004 and 2015, the total number of GA hours flown dropped
    by 14 percent. However, some GA sectors are growing. Hours flown by turboprop and turbojet
    aircraft, more often used for business rather than recreational purposes, increased by eight
    percent over the period.

    The FAA does not post data that show that change in the number of “certificated active airmen” back to
    2004. (The FAA defines an “active airman” as one who holds both an airman certificate and a valid
    medical certificate. The term includes men and women certified as pilots, mechanics or other aviation
    technicians.) Nationally, since 2010, the number of “certificated active airmen” declined by more than
    43,000 (7 percent). Of those, the number of individuals holding a private pilot’s license dropped by
    39,707 (20 percent). In Minnesota, FAA’s data show that the number of people holding a private pilot’s
    license declined over the same period by 15 percent.

    2 Under federal regulations, certificated operators may provide on-demand air taxi (charter) services.
    FAA regulations cover specific requirements and limits relating to the size (passenger or cargo capacity)
    of the aircraft, its powerplant (piston or turboprop), qualifications of the flight crew, insurance, and
    management. Scheduled commercial operations and those using turboprop or jet engines are not
    included in the GA statistics.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 13

    The MAC Reliever Airport System
    Each of the six reliever airports are described in general below.

    Airlake Airport
    Used primarily by recreational pilots, Airlake Airport (KLVN) has a single 4,098′ x 75′ runway and full
    length parallel taxiway. There is one fixed base operator at the airport, and no air traffic control tower. In
    2016, the airport was home to 139 based aircraft3 and had an estimated 38,618 flight operations (take off
    or departure).

    Anoka County-Blaine Airport
    The Anoka County – Blaine Airport (KANE) was acquired by MAC in 1950. The airport is considered by
    the MAC to be a primary reliever airport for the main Minneapolis – St. Paul International Airport (MSP).
    The airport has a non-federal aircraft control tower and two runways. Runway 9-27 is 5,000′ x 100′, and
    Runway 18-36 is 4,855′ x 100′. A precision approach is available on Runway 27. In 2016, the airport was
    home to 389 based aircraft and had an estimated 80,845 flight operations. More aircraft are based at this
    airport than at any other MAC reliever airports.

    Crystal Airport
    Northwest of Minneapolis and adjacent to Brooklyn Park and Brooklyn Center, Crystal Airport (KMIC) has
    three paved and one turf runway and two non-precision instrument approaches. The airport is served by
    a single FBO and has an FAA-operated air traffic control tower. In 2016, the airport was home to 164
    based aircraft and had an estimated 36,967 flight operations.

    Flying Cloud Airport
    Flying Cloud Airport (KFCM) has a reputation for serving the needs of busy corporate executives and
    their flight crews. The airport has parallel runways (one 5,000’ and the other 3,900’) along with a 2,691’
    cross runway. It is served by multiple FBOs and a FAA-operated control tower and an instrument landing
    system. In 2016, the airport was home to 361 based aircraft and had an estimated 84,038 flight
    operations, making it the busiest of the six relievers.

    Lake Elmo Airport
    The airport (21D) is served by a fixed base operator and an aircraft maintenance provider. Lake Elmo
    Airport has two runways. Runway 14/32 is 2,850′ x 75′, and runway 4/22 measures 2,497′ x 75.’ There are
    two non-precision instrument approaches to the airport, which has no control tower. Fueling, flight training
    and aircraft maintenance services are available. In 2016, the airport was home to 194 based aircraft and
    had an estimated 27,275 flight operations.

    St. Paul Downtown Airport
    The airport (KSTP) has the longest runway of the reliever airports and is closest to downtown St. Paul.
    KSTP has three runways: Runway 14-32, with 6,491′ x 150′; Runway 13-31, with 4004′ x 150′, and
    Runway 9-27, with 3,642′ x 100′. The airport is served by two fixed-base operators and an FAA-operated
    air traffic control tower. In 2016, the airport was home to 82 based aircraft and had an estimated 54,548

    3 “Based aircraft” are those permanently stored at one airport.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 14

    flight operations. While this airport has the smallest number of based aircraft, its long runway and
    proximity to downtown St. Paul makes this airport uniquely able to serve large private aircraft.

    Figure 1-2: Total operations

    Economic Impact Defined
    Economic impact is a measure of the spending and employment associated with a sector of the economy,
    a specific project, or a change in government policy or regulation.

    Economic impact is most commonly measured along several dimensions. The most common are:

    1. Employment – person years of employment supported (expressed in terms of “full time
    equivalents” or FTEs). Because many jobs may be only part-time or seasonal, the number of
    jobs is greater than the number of person years of employment. Hours worked in part-time
    and seasonal employment are translated into FTEs.

    2. Earnings – includes wages, salaries, and benefits associated with employment tied to the
    airport.

    3. Economic output – the dollar value of industrial output produced. Sometimes referred to as
    “economic activity,” it reflects the spending (e.g., capital improvement plus revenue) by firms,
    organizations, and individuals. In the case of organizations that do not generate revenue
    (e.g., government-provided air traffic control services), annual operating expenses are
    counted.

    4. Gross Domestic Product (GDP). Sometimes referred to as Value Added, this is a measure
    of the money value of final goods and services produced as a result of economic activity. This

    0

    20,000

    40,000

    60,000

    80,000

    100,000

    120,000

    140,000

    160,000

    180,000

    Flying Cloud St. Paul
    Downtown

    Anoka County-
    Blaine

    Crystal Lake Elmo Airlake

    Change in Total Annual Aircraft Operations
    2004 vs. 2017

    2004 2017

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 15

    measure is net of the value of intermediate goods and services used up to produce the final
    goods and services.

    The three major components of economic impact are classified as direct, indirect, and induced impacts.
    These classifications are used as a base for the estimation of total economic impact of an airport. Each of
    these three components requires different tools of analysis. Employment impact analysis determines the
    economic impact in terms of jobs created and salaries and wages paid out. In the case of the airport, the
    direct, indirect, induced, and total number of person years of employment created at the airport is
    examined to produce a snapshot of airport operations.

    • Direct impacts account for the economic activity of the
    aviation sector itself. Direct employment impacts are
    measured by counting those individuals who work in this
    particular sector of the economy. In the case of an airport,
    all of those people who work in an aviation-related capacity
    either on-site or off-site would be considered direct.

    At the reliever airports, a major source of employment are
    the Fixed Base Operators (FBOs). These are companies
    that have been granted the right by an airport (and the
    MAC) to operate at the airport and provide aeronautical
    services such as fueling, hangaring, tie-down and parking,
    aircraft rental or chartering, aircraft maintenance, flight
    instruction, de-icing and similar services. FBOs also take
    care of ground handling services, like towing and baggage
    handling, and other services, such as car rentals, hotel
    reservations and pilot lounges.

    Each of the reliever airports have at least one FBO.
    Several of the airports have multiple FBOs on the airfield.
    This allows both locally-based aircraft operators and
    visiting operators some choice for purchasing fuel and
    other handling services. Some FBOs may only sell limited
    types of fuel. Some may offer self-service fuel.

    Depending on the airport, there may also be air traffic control services provided on the airfield. Three
    of the reliever airports have air traffic control towers that are owned and operated by the FAA. Anoka
    County-Blaine Airport has air traffic control services provided by a private contractor, supported by
    funds from the FAA and MAC. The remaining two airports, Lake Elmo Airport and Airlake Airport,
    have no air traffic control towers.

    The MAC has staff assigned to support the reliever airports including maintenance staff, mechanics,
    and management and administrative personnel. Those staff’s direct employment and economic
    effects are included as part of this analysis and allocated across each airport based on information
    provided by the MAC.

    • Indirect impacts are the “upstream” impacts that arise because of the direct impacts. For an airport,
    indirect impacts originate from off-site firms that serve airport users. Indirect employment includes the
    portion of employment in supplier industries which are dependent on sales to the air transport sector.
    An example would be food wholesalers that supply food for catering on flights. Another example
    would be building suppliers that sell materials used for the construction of capital improvements (e.g.,
    a renovated building or hangar).

    Major Sources of Direct
    Employment at the Reliever

    Airports

    Aviation Support Services. This
    includes employment with FBOs,
    aircraft maintenance, and related
    companies.

    Government Enterprises. Examples
    of employment related to government
    agencies and departments include the
    MAC, FAA, and CBP.

    Building Maintenance & Janitorial
    Work includes all employment
    associated with the maintenance and
    care of buildings on airport land. This
    includes cleaning, janitorial, and
    maintenance staff.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 16

    • Induced impacts are economic impacts
    created by the spending of wages, salaries,
    and profits earned in the course of the direct
    and indirect economic activities. Induced
    employment is employment generated from
    expenditures by individuals employed
    indirectly or directly. For instance, if an airline
    maintenance firm employee decides to re-
    model his/her home, this would result in
    additional (induced) employment hours in the
    general economy. The home renovation
    project would support hours of induced
    employment in the construction industry, the
    construction materials industry, etc.

    • Visitor spending impacts. Another related
    economic impact that arises from the airports’
    operations flows from visitors to a region who
    arrive and depart via the airports rather than
    by other means (e.g., auto). The hospitality industry in particular benefits greatly from these visitors,
    who spend money on lodging, meals, entertainment, car rentals, and retail. Direct employment
    associated with those industries is counted as part of the economic impacts of the airport. The
    economic impacts associated with visitor spending are separately identified in this report. Some
    economic impact studies may incorporate these impacts into “indirect impacts,” but the project team
    accounts for them separately for technical econometric reasons.

    Clearly, MSP is the primary gateway to the Minneapolis-St. Paul region and millions of visiting
    passengers arrive and depart from the airport annually. While MSP welcomed approximately 37.5
    million passengers in 2016, only a portion of these travelers can be considered true visitors to the
    region. In 2016, the total number of visitors to the region that arrived and departed via MSP exceeded
    5 million. Domestic US visitors spent on average approximately $110 per day. Those averages
    include the effects of a sizeable portion of travelers who stay with friends and family during their visits,
    and thus tend to spend less. The estimated spending of domestic visitors at MSP is comparable to
    that found at other major U.S. airports, adjusting for differences in local costs.

    Some travelers who fly by GA come into MSP. But many use the reliever airports instead. Those
    airports offer the same direct access to the Twin Cities and its suburbs. This study accounts for the
    spending of those visitors who use the six reliever airports.

    • Total impacts are the sum of direct, indirect, induced, and visitor spending impacts.

    A related aspect of the airports’ economic impact is the contributions that flow from the supported
    economic activity to different levels of government in the form of taxes and fees. Accounting for these
    airports’ contributions to the public sector is important as part of their comprehensive impact.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 17

    Figure 1-3: Economic Impact Overview – Airports

    Contributions to Local Governments from Airport Operations
    The operations and employment supported by each of the reliever airports contributes to governmental
    revenues. Revenue contributions are divided into the following groupings, based on the origins of the
    resulting impacts:

    • Taxes Related to Employee Compensation. This category includes the federal, state, and local
    impacts of Social Insurance taxes paid by employers and employees at the reliever airports. It
    contains the tax impacts generated by retirement plans, temporary disability insurance, and
    workers’ compensation payments. These taxes contribute largely to federal government streams;
    however, smaller contributions are made to state and local governments as well.

    • Taxes Related to Household Income. This category contains the personal tax impacts
    generated by households related to employment at the reliever airports. The federal impacts
    include all applicable personal income tax payments. The state and local impacts contain
    personal income tax payments, fines and fee charges, motor vehicles licensing fees, property
    taxes, and other applicable taxes. The federal government receives over two-thirds of the tax
    impacts in this category, while state and local governments share the remaining third.

    • Other Taxes and Fees. These relate to taxes and fees that are paid by corporations to the local,
    state and federal levels of government.

    Overview of Methodology
    InterVISTAS conducted this study during the fall of 2017 based on operations and employment at the
    airport during calendar year 2016. To calculate the direct effects, the study team surveyed all employers
    associated with economic activity at each of the six airports (e.g., fixed base operators, government
    agencies, and other tenants) to determine the total number of individuals employed in directly-related
    occupations, as well as the total amount of earnings (wages) paid to those individuals. This included firms
    located both on-site at the airports and those located off-site.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 18

    The team estimated the impact of spending by visitors to the region who arrived via the airport (as distinct
    from those who may have driven to the area). These were based on interviews with airport managers and
    the FBOs, who provided their best professional estimates of the volume of itinerant aircraft traffic, number
    of people on board, and other variables that drive visitor spending. The average amount spent by visitors
    varied by airport, due to differences in the mix of business and leisure traffic, the average number of
    individuals (including pilots and any flight crew) on arriving aircraft, the percentages of visitors who
    overnight in the region, and other differences in their spending patterns.

    The team derived the indirect and induced effects associated with the direct and visitor impacts by
    application of econometric multipliers, which model the behavior of this sector of the economy. The
    indirect and induced effects have been calculated using the U.S. Bureau of Economic Analysis’s Regional
    Input-Output Modeling System (RIMS II).4 To ensure consistency with other economic analyses
    completed for the MAC, the overall method used was the same applied to the estimate of the economic
    impact of Minneapolis-St. Paul International Airport. See the Appendix for a more detailed description of
    the study’s methodology.

    4 The U.S. Bureau of Economic Analysis’s Regional Input-Output Modeling System (RIMSII) is a regional economic tool that
    measures the total economic impact of a region (https://www.bea.gov/regional/rims/rimsii/). The model measures demand shocks on
    employment, earnings, value added, and total gross output, and is based on 2007 national benchmark input-output data and 2015
    regional data.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 19

    2 Economic Impact of Airlake Airport

    Airlake Airport (LVN) is located in Dakota
    County, approximately 17 miles south of
    MSP, 20 miles south of the City of
    Minneapolis, and approximately 25 miles
    southwest of the City of St. Paul. The airport
    serves to relieve congestion at MSP by
    attracting general aviation traffic away from
    this larger airport.

    According to the draft final Airlake Airport
    Long-Term Comprehensive Plan (LTCP),5
    the airport’s primary role is to serve personal,

    recreational, and business aviation users in the southern metropolitan areas of Dakota and Scott
    Counties. It is a complimentary reliever airport to MSP. Examples of business services provided at
    Airlake Airport include flight training, aircraft rentals, charter flights, aircraft management services, and
    medical flight transportation.

    Airlake Airport has one primary hangar storage area on the northeast side of the airport that provides
    approximately 136 indoor aircraft storage spaces. The MAC also has a maintenance structure at the
    airport. The GA community here is served by a single FBO.

    Direct Impacts
    Based on responses to the employment survey by tenant organizations, the airport supports
    approximately 31 direct jobs. These jobs paid a total of about $0.9 million in wages. The total economic
    output of the direct employment was $4.1 million.

    5 Metropolitan Airports Commission, Final Draft, Airlake Airport 2035 Long-Term Comprehensive Plan
    (LTCP), November 27, 2017, available at https://www.metroairports.org/General-Aviation/General-
    Aviation-Documents/Airlake_Airport_reduced_2035_LTCP_FINAL_DRAFT_Narr.aspx

    Airlake Airport at a Glance

    Runways: 12/30, 4,099’ * 75’

    Based Aircraft (2016): 139

    Operations (2016): 36,618

    Percent of Operations that are Itinerant:
     FAA estimate: 60%
     FBO estimate: 40%

    Number of FBOs: One

    https://www.metroairports.org/General-Aviation/General-Aviation-Documents/Airlake_Airport_reduced_2035_LTCP_FINAL_DRAFT_Narr.aspx

    https://www.metroairports.org/General-Aviation/General-Aviation-Documents/Airlake_Airport_reduced_2035_LTCP_FINAL_DRAFT_Narr.aspx

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 20

    Table 2.1: Direct Economic Impacts of Airlake Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 31 11 $0.9 $2.3 $4.1

    Multiplier Impacts
    The direct economic impacts drive additional economic effects via their relationships with supplier
    industries and by stimulating spending in the local economy. Combined, these “multiplier impacts”
    substantially add to the effect from direct employment. Table 2.2 summarizes the combined indirect and
    induced economic impacts that flow from the operations of Airlake Airport.

    Table 2.2: Multiplier Impacts from Airlake Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Multiplier 22 8 $1.0 $2.1 $3.7

    Total Operational Impacts
    The total impacts of airport are calculated by adding the direct and multiplier impacts. Table 2.3
    summarizes the total employment impact of the airport.

    Table 2.3: Total Employment Impacts from Airlake Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total 53 19 $1.9 $4.4 $7.8
    Note: Earlier tables may not sum to these totals due to rounding.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 21

    Visitor Impacts
    Total operations at LVN in 2016 approached 37,000. Based on estimates from the FAA and interviews
    with the FBO and airport management, the project team estimated that about 59 percent of those
    operations were itinerant. Allowing for some small percentage of those operations to be “gas-and-go”
    types of flights (where the aircraft lands and only takes on fuel without any other local purchase), there
    was an estimated 9.320 flights at the airports where visitors spent money locally. According to
    information from the FBO, the majority of those visitors were for less than a day (i.e., the visitors did not
    spend the night in the area.) An estimated 20 percent of visitors spent the night. The total amount spent
    by visitors reflects a combination of the two, along with some catering sold by the FBO. Visitor spending
    at Airlake Airport is summarized in the table below.

    Table 2.4: Key Visitor Metrics

    Consolidated Impacts
    The consolidated economic impact of Airlake Airport sums the total employment impact with that from
    visitor spending. In 2016, the operations at Airlake Airport supported a total of 104 jobs (38 FTEs), which
    paid a total of $3.5 million in wages. The total economic output that the airport stimulated was $13.2
    million, with roughly $7.4 million in gross domestic product.

    Table 2.5: Consolidated Economic Impacts of Airlake Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Consolidated 104 38 $3.5 $7.4 $13.2
    Note: Earlier tables may not sum to these totals due to rounding.

    Tax Contributions from Airlake Airport
    As a result of the operations of Airlake Airport, state and local governments gained approximately
    $57,000 in tax revenues. In addition, federal tax revenue amounted to approximately $211,000.
    Altogether, this includes tax contributions for social insurance programs, income taxes, and other
    government-imposed fees and charges.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 22

    3 Economic Impact of Anoka County-Blaine
    Airport

    The Anoka County – Blaine Airport (KANE) has played
    an important role in the Twin Cities since the airport
    was acquired by MAC in 1950. The airport is located in
    the southern part of Anoka County and the City of
    Blaine, approximately 12 miles from downtown
    Minneapolis and 12 miles from downtown St. Paul.

    According to the 2010 long-term comprehensive plan
    prepared for Anoka County – Blaine Airport,6 the MAC
    considers that airport’s primary role to be as a primary
    reliever airport for MSP.

    Anoka County – Blaine Airport has its own air traffic control tower that is normally open for 14 to 15 hours
    daily, depending on the season. When the tower is not open, air navigation services are provided by the
    FAA’s local terminal area traffic control facility (TRACON). Two FBOs are onsite to provide services for
    local and itinerant traffic. The airport also has hangars and a MAC maintenance and equipment storage
    facility.

    Anoka County – Blaine Airport was the second busiest of all of the six reliever airports in 2016 in terms of
    total flight operations.

    6 Metropolitan Airports Commission, Anoka County – Blaine Airport (ANE), Final Adoption by MAC June
    2010, available at
    https://www.metroairports.org/Metroairports/media/Media/Documents/general_aviation/ANE-LTCP/ANE-
    LTCP-DOCUMENT

    Anoka County – Blaine Airport at a Glance

    Runways: 9/27, 5,000′ x 100′
    18/36, 4,855′ x 100′

    Based Aircraft (2016): 389

    Operations (2016): 80,845

    Percent of Operations that are Itinerant:
     FAA estimate: 48%
     FBO estimate: 40%

    Number of FBOs: Two

    https://www.metroairports.org/Metroairports/media/Media/Documents/general_aviation/ANE-LTCP/ANE-LTCP-DOCUMENT

    https://www.metroairports.org/Metroairports/media/Media/Documents/general_aviation/ANE-LTCP/ANE-LTCP-DOCUMENT

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 23

    Direct Impacts
    Based on responses to the employment survey by tenant organizations, the airport supports
    approximately 130 direct jobs. These jobs paid about $6 million in wages. The total economic output of
    the direct employment was $55 million.

    Table 3.1: Direct Economic Impacts of Anoka County – Blaine Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 130 110 $6 $30 $55

    Multiplier Impacts
    The direct economic impacts drive additional economic effects via their relationships with supplier
    industries and by stimulating spending in the local economy. Combined, these “multiplier impacts”
    substantially add to the effect from direct employment. Table 3.2 summarizes the combined indirect and
    induced economic impacts that flow from the operations of Anoka County – Blaine Airport.

    Table 3.2: Multiplier Impacts from Anoka County – Blaine Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Multiplier 250 200 $11 $25 $46

    Total Operational Impacts
    The total impacts of airport are calculated by adding the direct and multiplier impacts. Table 3.3
    summarizes the total employment impact of the airport

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 24

    Table 3.3: Total Employment Impacts from Anoka County – Blaine Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total 390 310 $17 $55 $101
    Note: Earlier tables may not sum to these totals due to rounding.

    Visitor Impacts
    Total operations at ANE in 2016 exceeded 80,000 in 2016. Based on estimates from the FAA and
    interviews with the FBO and airport management, the project team estimated that slightly under half of
    those operations (about 48 percent) were itinerant. Allowing for some small percentage of those
    operations to be “gas-and-go” types of flights (where the aircraft lands and only takes on fuel without any
    other local purchase), there was an estimated 16.400 departures from the airports where visitors had
    spent money locally. According to information from the FBO, about two-thirds of those visitors were for
    less than a day (i.e., the visitors did not spend the night in the area.) The remaining third of visitors spent
    the night. The total amount spent by visitors reflects a combination of the two, along with some catering
    sold by the FBO. The total number of visitors who spent money in the region in 2016 was nearly 74,000,
    and the total estimated amount spent was more than $8.5 million. Visitor spending at Anoka County –
    Blaine Airport is summarized in the table below.

    Table 3.4: Estimated Visitors and Total Amount Spent

    Consolidated Impacts
    The consolidated economic impact of Anoka County – Blaine Airport sums the total employment impact
    with that from visitor spending. In 2016, the operations at the airport supported a total of 560 jobs (460
    FTEs), which paid a total of $22 million in wages. The total economic output that the airport stimulated
    was $118 million, with roughly $65 million in gross domestic product.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 25

    Table 3.5: Consolidated Economic Impacts of Anoka County – Blaine Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Consolidated 560 460 $22 $65 $118
    Note: Earlier tables may not sum to these totals due to rounding.

    Tax Contributions from Anoka County – Blaine Airport
    As a result of the operations of Anoka County – Blaine Airport, state and local governments gained
    approximately $1.0 million in tax revenues. In addition, federal tax revenue amounted to approximately
    $1.9 million. Altogether, this includes tax contributions for social insurance programs, income taxes, and
    other government-imposed fees and charges.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 26

    4 Economic Impact of Crystal Airport

    Crystal Airport is located in Hennepin County, approximately seven miles northwest of downtown
    Minneapolis. It lies within the City of Crystal, with small portions of airport property overlapping into the
    City of Brooklyn Park and the City of Brooklyn Center. It is the closest MAC airport to downtown
    Minneapolis.

    According to the airport’s draft 2016 long-term comprehensive plan,7 Crystal Airport’s primary role is to
    serve personal, recreational, and some business aviation users in the northwest metropolitan area,
    including the cities of Crystal, Brooklyn Park, Brooklyn Center, and Minneapolis. Example business
    services include flight training, aircraft rentals, charter flights, aircraft and propeller maintenance, sale of
    aircraft avionics and parts, and medical flight transportation. The airport is a complimentary reliever to
    MSP.

    The airport is primarily designed to be used by small, propeller-driven airplanes with fewer than 10
    passenger seats.

    Crystal Airport is served by two FBOs. The airport also has numerous hangar facilities and a MAC
    maintenance facility.

    7 Metropolitan Airports Commission, Draft Crystal Airport, 2035 Long-Term Comprehensive Plan (LTCP),
    Narrative Report, September 12, 2016, available at https://www.metroairports.org/General-
    Aviation/Airports/Crystal.aspx.

    Crystal Airport at a Glance

    Runways: 14L/32R, 3,268′ x 75′
    14R/32L, 3,267′ x 75′
    6L/24R, 2,500’ x 75’
    6R/24L, 2,153’ x 150’ (turf)

    Based Aircraft (2016): 164

    Operations (2016): 36,967

    Percent of Operations that are
    Itinerant:

     FAA estimate: 56%
     FBO estimate: 20%

    Number of FBOs: Two

    https://www.metroairports.org/General-Aviation/Airports/Crystal.aspx

    https://www.metroairports.org/General-Aviation/Airports/Crystal.aspx

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 27

    Direct Impacts
    Based on responses to the employment survey by tenant organizations, the airport supports
    approximately 100 direct jobs. These jobs paid a total of about $4 million in wages. The total economic
    output of the direct employment was $35 million.

    Table 4.1: Direct Economic Impacts of Crystal Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 100 80 $4 $21 $35

    Multiplier Impacts
    The direct economic impacts drive additional economic effects via their relationships with supplier
    industries and by stimulating spending in the local economy. Combined, these “multiplier impacts”
    substantially add to the effect from direct employment. Table 4.2 summarizes the combined indirect and
    induced economic impacts that flow from the operations of Crystal Airport.

    Table 4.2: Multiplier Impacts from Crystal Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Multiplier 180 140 $8 $18 $30

    Total Operational Impacts
    The total impacts of airport are calculated by adding the direct and multiplier impacts. Table 4.3
    summarizes the total employment impact of the airport.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 28

    Table 4.3: Total Employment Impacts from Crystal Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total 270 220 $12 $39 $66
    Note: Earlier tables may not sum to these totals due to rounding.

    Visitor Impacts
    Total operations at MIC in 2016 approached 37,000. Based on estimates from the FAA and interviews
    with the FBO and airport management, the project team estimated that over half — about 56 percent — of
    those operations were itinerant. Allowing for some small percentage of those operations to be “gas-and-
    go” types of flights (where the aircraft lands and only takes on fuel without any other local purchase),
    there was an estimated 8,800 departures from the airports where visitors spent money locally. The
    project team estimated that about two-thirds of those visitors were on the ground for less than a day (i.e.,
    the visitors did not spend the night in the area.) The remaining two-thirds of the visitors spent the night.
    The total number of visitors who spent money in the region in 2016 was just under 20,000, and the total
    estimated amount spent was about $2.4 million. Visitor spending at Crystal Airport is summarized in the
    table below.

    Table 4.4: Estimated Visitors and Total Amount Spent

    Consolidated Impacts
    The consolidated economic impact of Crystal Airport sums the total employment impact with that from
    visitor spending. In 2016, the operations at Crystal Airport supported a total of 320 jobs (250 FTEs),
    which paid a total of $14 million in wages. The total economic output that the airport stimulated was $71
    million, with roughly $41 million in gross domestic product.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 29

    Table 4.5: Consolidated Economic Impacts of Crystal Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Consolidated 320 250 $14 $41 $71
    Note: Earlier tables may not sum to these totals due to rounding.

    Tax Contributions from Crystal Airport
    As a result of the operations of Crystal Airport, state and local governments gained approximately $0.7
    million in tax revenues. In addition, federal tax revenue amounted to approximately $1.6 million.
    Altogether, this includes tax contributions for social insurance programs, income taxes, and other
    government-imposed fees and charges.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 30

    5 Economic Impact of Flying Cloud Airport

    The airport is located in Hennepin County, in the south-central area
    of the City of Eden Prairie, approximately 14 miles from downtown
    Minneapolis. Its location in the southwest suburbs allow businesses
    to consider it an important part of their local operations. The MAC considers the airport to be a primary
    reliever airport for MSP.

    According to the 2010 long term comprehensive plan,8 the airport is designed to accommodate aircraft
    with wingspans less than 79 feet. Aircraft that fall into this category include most single engine and twin
    piston aircraft and smaller regional and corporate jets.

    Flying Cloud Airport has its own air traffic control tower that is owned and operated by the FAA. During
    the times when it is open, it provides air traffic control services. When the tower is closed, air navigation
    services are provided by Minneapolis Terminal Radar Approach Control (TRACON) located at
    Minneapolis-St. Paul International Airport and assisted by the Flight Service Station (FSS) at Princeton,
    Minnesota.

    The airport is served by six FBOs that offer both outdoor and indoor storage for aircraft. The airport also
    has other hangar storage areas that are not a part of existing FBO facilities. The MAC also has two
    maintenance and storage facilities at the airport.

    Flying Cloud Airport was the busiest of all of the six reliever airports in 2016 in terms of total flight
    operations. The extension of runway 10R/28L to 5,000’ in 2010 enabled the airport to accommodate
    larger aircraft than previously.

    8 Metropolitan Airports Commission, Flying Cloud Airport, Long Term Comprehensive Plan Update
    FINAL, October 2010, available at https://www.metroairports.org/General-Aviation/Airports/Flying-
    Cloud.aspx

    Flying Cloud Airport at a Glance

    Runways: 10R/28L, 5,000′ x 100′
    10L/28R, 3,898′ x75′
    18/36, 2,690’ x 75’

    Based Aircraft (2016): 361

    Operations (2016): 84,038

    Percent of Operations that are
    Itinerant:

     FAA estimate: 60%
     FBO estimate: 70%

    Number of FBOs: Six

    https://www.metroairports.org/General-Aviation/Airports/Flying-Cloud.aspx

    https://www.metroairports.org/General-Aviation/Airports/Flying-Cloud.aspx

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 31

    Direct Impacts
    Based on responses to the employment survey by tenant organizations, the airport supports
    approximately 340 direct jobs. These jobs paid a total of about $18 million in wages. The total economic
    output of the direct employment was $104 million.

    Table 5.1: Direct Economic Impacts of Flying Cloud Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 340 300 $18 $58 $104

    Multiplier Impacts
    The direct economic impacts drive additional economic effects via their relationships with supplier
    industries and by stimulating spending in the local economy. Combined, these “multiplier impacts”
    substantially add to the effect from direct employment. Table 5.2 summarizes the combined indirect and
    induced economic impacts that flow from the operations of Flying Cloud Airport.

    Table 5.2: Multiplier Impacts from Flying Cloud Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Multiplier 500 430 $24 $50 $90

    Total Operational Impacts
    The total impacts of airport are calculated by adding the direct and multiplier impacts. Table 5.3
    summarizes the total employment impact of the airport

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 32

    Table 5.3: Total Employment Impacts from Flying Cloud Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total 840 740 $41 $107 $194
    Note: Earlier tables may not sum to these totals due to rounding.

    Visitor Impacts
    Total operations at FCM in 2016 exceeded 84,000, the most of all six MAC reliever airports. Based on
    estimates from the FAA and interviews with the FBO and airport management, the project team estimated
    that nearly 60 percent of those operations were itinerant. Allowing for some small percentage of those
    operations to be “gas-and-go” types of flights (where the aircraft lands and only takes on fuel without any
    other local purchase), there was an estimated 21,400 flight departures from the airport where visitors
    spent money locally. According to information from the FBOs, about 60 percent of those visitors spent
    less than a day (i.e., the visitors did not spend the night in the area.). The remaining 40 percent of visitors
    spent the night. The total number of visitors who spent money in the region in 2016 was over 115,000,
    and the total estimated amount spent was over $18 million. Visitor spending at Flying Cloud Airport is
    summarized in the table below.

    Table 5.4: Estimated Visitors and Total Amount Spent

    Consolidated Impacts
    The consolidated economic impact of Flying Cloud Airport sums the total employment impact with that
    from visitor spending. In 2016, the operations at Flying Cloud Airport supported a total of 1,190 jobs
    (1,040 FTEs), which paid a total of $52 million in wages. The total economic output that the airport
    stimulated was $229 million, with roughly $127 million in gross domestic product.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 33

    Table 5.5: Consolidated Economic Impacts of Flying Cloud Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Consolidated 1,190 1,040 $52 $127 $229
    Note: Earlier tables may not sum to these totals due to rounding.

    Tax Contributions from Flying Cloud Airport
    As a result of the operations of Flying Cloud Airport, state and local governments gained approximately
    $2.6 million in tax revenues. In addition, federal tax revenue amounted to approximately $4.2 million.
    Altogether, this includes tax contributions for social insurance programs (i.e., Social Security,
    unemployment insurance, Medicare, the Pension Benefit Guaranty Corporation program, and the
    Railroad Retirement Board program), income taxes, and other government-imposed fees and charges.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 34

    6 Economic Impact of Lake Elmo Airport

    Lake Elmo Airport is located in Washington County, approximately 12 miles east of the downtown Saint
    Paul business district. According to the 2016 long-term comprehensive plan for Lake Elmo Airport,9 the
    MAC believes the primary role of Lake Elmo Airport is to accommodate personal, recreational, and some
    business aviation users within Washington County and the eastern portion of the metropolitan area.
    Example business services provided at the airport include flight training and aircraft maintenance. The
    aircraft that normally use the airport on a regular basis are small, propeller-driven airplanes with fewer
    than 10 passenger seats. The airport is a complimentary reliever to MSP.

    The airport is home to a single FBO. The airport also has two main hangar storage areas and a MAC
    maintenance building.

    Of the six MAC reliever airports, Lake Elmo Airport is the quietest in terms of flight operations (takeoffs
    and landings). In 2016, the airport recorded an estimated 27,000 operations, an equivalent of about 75
    per day.

    Direct Impacts
    Based on responses to the employment survey by tenant organizations, the airport supports
    approximately 14 direct jobs. These jobs paid a total of about $0.4 million in wages. The total economic
    output of the direct employment was $5.8 million.

    9 Metropolitan Airports Commission, Lake Elmo Airport, 2035 Long-Term Comprehensive Plan (LTCP),
    Volume 1 Narrative Report, Final MAC Adoption September 2016, available at
    https://www.metroairports.org/General-Aviation/General-Aviation-
    Documents/Lake_Elmo_Airport_2035_LTCP_FINAL_Narrative_Re-(2).aspx

    Lake Elmo Airport at a Glance

    Runways: 14/32, 2849’ x 75’
    4/22, 2,496′ x 75′

    Based Aircraft (2016): 194

    Operations (2016): 27,275

    Percent of Operations that are
    Itinerant:

     FAA estimate: 39%
     FBO estimate: 5%

    Number of FBOs: One

    https://www.metroairports.org/General-Aviation/General-Aviation-Documents/Lake_Elmo_Airport_2035_LTCP_FINAL_Narrative_Re-(2).aspx

    https://www.metroairports.org/General-Aviation/General-Aviation-Documents/Lake_Elmo_Airport_2035_LTCP_FINAL_Narrative_Re-(2).aspx

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 35

    Table 6.1: Direct Economic Impacts of Lake Elmo Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 14 10 $0.4 $3.2 $5.8

    Multiplier Impacts
    The direct economic impacts drive additional economic effects via their relationships with supplier
    industries and by stimulating spending in the local economy. Combined, these “multiplier impacts”
    substantially add to the effect from direct employment. Table 6.2 summarizes the combined indirect and
    induced economic impacts that flow from the operations of Lake Elmo Airport.

    Table 6.2: Multiplier Impacts from Lake Elmo Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Multiplier 26 18 $1.2 $2.6 $4.8

    Total Operational Impacts
    The total impacts of airport are calculated by adding the direct and multiplier impacts. Table 6.3
    summarizes the total employment impact of the airport.

    Table 6.3: Total Employment Impacts from Lake Elmo Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total 40 28 $1.7 $5.8 $10.6
    Note: Earlier tables may not sum to these totals due to rounding.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 36

    Visitor Impacts
    Total operations at 21D in 2016 exceeded 27,000. Based on estimates from the FAA and interviews with
    the FBO and airport management, the project team estimated that less than 40 percent of those
    operations were itinerant. Allowing for some small percentage of those operations to be “gas-and-go”
    types of flights (where the aircraft lands and only takes on fuel without any other local purchase), there
    was an estimated 4,500 flights at the airports where visitors spent money locally. According to
    information from the FBO, the vast majority of those visitors were for less than a day (i.e., the visitors did
    not spend the night in the area). Only about five percent of visitors spent the night. The total number of
    visitors who arrived at Lake Elmo Airport was slightly above 10,000, and the total amount spent by those
    visitors was nearly $1.1 million. Visitor spending at Lake Elmo Airport is summarized in the table below.

    Table 6.4: Estimated Visitors and Total Amount Spent

    Consolidated Impacts
    The consolidated economic impact of Lake Elmo Airport sums the total employment impact with that from
    visitor spending. In 2016, the airport’s operations supported a total of 60 jobs (42 FTEs), which paid a
    total of $2.3 million in wages. The total economic output that the airport stimulated was $12.8 million, with
    roughly $7.0 million in gross domestic product.

    Table 6.5: Consolidated Economic Impacts of Lake Elmo Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Consolidated 60 42 $2.3 $7.0 $12.8
    Note: Earlier tables may not sum to these totals due to rounding.

    Tax Contributions from Lake Elmo Airport
    As a result of the operations of Lake Elmo Airport, state and local governments gained approximately
    $49,000 in tax revenues. In addition, federal tax revenue amounted to approximately $174,000.
    Altogether, this includes tax contributions for social insurance programs, income taxes, and other
    government-imposed fees and charges.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 37

    7 Economic Impact of St. Paul Downtown
    Airport

    The St. Paul Downtown Airport (STP), also known as Holman
    Field, is located just five minutes from the St. Paul business
    center and 15 minutes from downtown Minneapolis. Along with
    Flying Cloud Airport and Anoka County – Blaine Airport, the MAC
    considers STP to be one of the primary relievers for the
    Minneapolis – St. Paul International Airport.

    Two FBOs serve the airport. The FBOs provide indoor storage
    for aircraft. On a limited basis, they may park aircraft outside on
    their apron areas but generally, airplanes are housed indoors.

    The MAC also owns several structures on the airport property.
    These include the original administration building that was
    constructed in 1939. That building formerly hosted the air traffic
    control facility until the replacement opened in 1999. The MAC
    also owns several maintenance and storage buildings. U.S.
    Customs and Border Protection operate out of the administration
    building when clearance is needed for international flights.

    Aircraft based at and using the airport includes primarily
    business jets, but also single-engine, twin-engine piston and
    turbo props, helicopters and military aircraft (primarily helicopters). It is assumed that flights in and out of
    the airport are of both a business and a recreational nature. The airport’s longest runway allows for
    operations of relatively large corporate jet aircraft, with wingspans of up to 118’.

    Of all of the MAC reliever airports, STP has the longest runway. This enables it to handle larger aircraft
    than any of the other relievers.

    Direct Impacts
    Based on responses to the employment survey by tenant organizations, the airport supports
    approximately 410 direct jobs. These jobs paid a total of about $27 million in wages. The total economic
    output of the direct employment was $150 million.

    St. Paul Downtown Airport at a
    Glance

    Runways: 14/32, 6,491’ x 150’
    13/31, 4,004′ x 150′
    9/27, 3,642’ x 100’

    Based Aircraft (2016): 82

    Operations (2016): 54,548

    Percent of Operations that are
    Itinerant:

     FAA estimate: 64%
     FBO estimate: 50%

    Number of FBOs: Two

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 38

    Table 7.1: Direct Economic Impacts of St. Paul Downtown Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Direct 410 360 $27 $84 $150

    Multiplier Impacts
    The direct economic impacts drive additional economic effects via their relationships with supplier
    industries and by stimulating spending in the local economy. Combined, these “multiplier impacts”
    substantially add to the effect from direct employment. Table 7.2 summarizes the combined indirect and
    induced economic impacts that flow from the operations of St. Paul Downtown Airport.

    Table 7.2: Multiplier Impacts from St. Paul Downtown Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Multiplier 760 670 $35 $75 $133

    Total Operational Impacts
    The total impacts of airport are calculated by adding the direct and multiplier impacts. Table 7.3
    summarizes the total employment impact of the airport

    Table 7.3: Total Employment Impacts from St. Paul Downtown Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Total 1,160 1,030 $62 $159 $283
    Note: Earlier tables may not sum to these totals due to rounding.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 39

    Visitor Impacts
    Total operations at STP in 2016 approached 55,000. Based on estimates from the FAA and interviews
    with the FBO and airport management, over 64 percent of those operations were itinerant. Allowing for
    some small percentage of those operations to be “gas-and-go” types of flights (where the aircraft lands
    and only takes on fuel without any other local purchase), there were nearly 15,000 flights at the airports
    where visitors spent money locally. According to information from the FBOs, the majority of those visitors
    spent less than a day in the (i.e., the visitors did not spend the night in the area.) About 25 percent of
    visitors spent the night. The total amount spent by visitors reflects a combination of the two, along with
    some catering sold by the FBO. Because the aircraft that make itinerant operations at STP tend to carry
    relatively large numbers of individuals, the total number of visitors attributed to STP was nearly 90,000.
    These visitors spent over $15 million locally.

    Table 7.4: Estimated Visitors and Total Amount Spent

    Consolidated Impacts
    The consolidated economic impact of St. Paul Downtown Airport sums the total employment impact with
    that from visitor spending. In 2016, the operations at STP supported a total of 1,430 jobs (1,260 FTEs),
    which paid a total of $70 million in wages. The total economic output that the airport stimulated was $312
    million, with roughly $174 million in gross domestic product.

    Table 7.5: Consolidated Economic Impacts of St. Paul Downtown Airport

    Impact
    Employment Wages

    ($ millions)
    GDP

    ($ millions)
    Output

    ($ millions)
    Jobs FTEs

    Consolidated 1,430 1,260 $70 $174 $312
    Note: Earlier tables may not sum to these totals due to rounding.

    Tax Contributions from St. Paul Downtown Airport
    As a result of the operations of St. Paul Downtown Airport, state and local governments gained
    approximately $6.7 million in tax revenues. In addition, federal tax revenue amounted to approximately
    $8.1 million. Altogether, this includes tax contributions for social insurance programs, income taxes, and
    other government-imposed fees and charges.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 40

    8 Summary of Economic Impact Results
    Operational Economic Impacts

    The ongoing operations at the six MAC reliever airports support a total of 2,750 jobs (2,340 FTEs or
    person years of employment) in the state, including multiplier impacts. Of this total employment figure,
    1,030 jobs (870 FTEs) are attributable to direct employment. As jobs related to the airport extend far
    beyond its boundaries, the bottom line
    total also includes approximately 780
    additional indirect jobs (670 FTEs) and
    950 induced jobs (810 FTEs).

    The statewide economy benefits
    significantly from the day-to-day
    operations of the airports. Annually, the
    airports contribute an estimated total of
    $370 million in GDP, alongside an
    estimated $662 million in economic
    output. All impacts relating to
    employment, wages, GDP, and output
    are illustrated in Table 8-1.

    Table 8-1:
    Total Economic Impacts of MAC Reliever Airports Operations, 2016

    Impact
    Employment Wages

    ($ Millions)
    GDP

    ($ Millions)
    Output

    ($ Millions)
    Jobs FTEs

    Direct 1,030 870 $56 $198 $355

    Indirect 780 670 $44 $100 $179

    Induced 950 810 $36 $72 $128

    Total 2,750 2,340 $136 $370 $662
    Note: Employment figures (jobs and FTEs) are rounded to the nearest ten. Totals may not sum due to rounding.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 41

    Economic Impacts from Visitor Spending
    Individuals who visit the region via the reliever airports support additional economic impacts by spending
    their travel dollars locally. The economic impact of visitor spending depends on the total number of “true
    visitors,” the amount they spend, the length of stay, and the distribution of their spending across different
    categories – mostly in the hospitality sector. Spending on hotels, restaurants, retail, and entertainment
    supports jobs and additional spending in the region.

    Table 8-2 summarizes the total impacts from non-local visitor spending affiliated with the reliever airports.
    In 2016, visitor spending across all six airports amounted to $48 million, which in turn supported 620
    direct jobs (520 FTEs) and $15 million in direct wages. With multiplier impacts included, the total
    economic impact from visitor spending includes 910 total jobs (760 FTEs) and $27 million in total wages.

    Table 8-2:
    Total Economic Impact of Visitor Spending at the Reliever Airports, in 2016

    Impact
    Employment Wages

    ($ Millions)
    GDP

    ($ Millions)
    Output

    ($ Millions)
    Jobs FTEs

    Direct 620 520 $15 $27 $48

    Indirect 110 90 $6 $12 $21

    Induced 180 150 $7 $13 $24

    Total 910 760 $27 $52 $94
    Note: Employment figures (jobs and FTEs) are rounded to the nearest ten. Totals may not sum due to rounding.

    Consolidated Economic Impact of the Reliever Airports
    The total economic impact associated with the MAC reliever airports’ operations and visitor spending in
    2016 was approximately 3,660 jobs, with wages and earnings of $164 million. The total contribution to
    the region’s GDP was approximately $421 million, with a total economic output of $756 million, as shown
    in Table 8-3.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 42

    Table 8-3:
    Consolidated Economic Impacts of MAC Reliever Airports’ Operations and Visitor Spending, 2016

    Impact
    Employment Wages

    ($ Millions)
    GDP

    ($ Millions)
    Output

    ($ Millions)
    Jobs FTEs

    Total Direct 1,650 1,380 $71 $224 $403

    Total Indirect 890 760 $50 $112 $200

    Total Induced 1,130 960 $43 $85 $153

    Grand Total 3,660 3,100 $164 $421 $756
    Note: Employment figures (jobs and FTEs) are rounded to the nearest ten. Totals may not sum due to rounding.

    Tax Revenue Impacts
    The six MAC reliever airports generate considerable tax revenues across all levels of government. On an
    annual basis, an estimated $27 million in tax is contributed by airport employers, employees, and
    passengers. Nearly two-thirds of that amount (59%) flowed to the federal government, with the remaining
    41% going to state and local governments. These figures exclude any estimates of corporate profit taxes.

    Figure 8-1:
    Annual Estimated Tax Revenues of MAC Reliever Airports by Level of Government

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 43

    9 Comparison of 2004 and 2016 Economic
    Impacts

    This report provides an update on information about the MAC reliever airports published in 2005 based
    on data for 2004. Comparisons can be complicated because of differing industry conditions and
    methodologies, so readers should bear both of those factors in mind.

    The total economic impact of the MAC Reliever Airports in 2016 is higher relative to 2004. Employee
    FTEs from total ongoing operations (airport operations, onsite-site tenants and visitor spending impacts)
    increased from 2,260 to 3,100, between 2004 and 2016. Airport operations have seen growth in
    employment, despite the natural decline in general aviation activity and total operations at each of the
    reliever airports (as previously outlined in Section 1 and discussed in further detail below). In 2016, visitor
    spending is estimated to contribute roughly half the impact that was seen in 2004. Table 9-1 summarizes
    the change between 2004 and 2016.

    Table 9-1: Comparison of 2004 vs. 2016 Results

    Impact Measurement 2004 2016 % Change
    (2016 vs. 2004)

    Total Airport Operations – Total Impacts

    Employment (FTEs) 901 2,340 160%

    Activity ($ millions) $169 $662 N/M

    Visitor Spending – Total Impacts

    Employment (FTEs) 1,358 760 -46%

    Activity ($ Millions) $86 $94 N/M

    Total Impacts (Airport Operations & Visitor Spending)

    Employment (FTEs) 2,259 3,100 36%

    Activity ($ Millions) $255 $756 N/M
    Note: Figures may not sum to totals due to rounding. N/M = not meaningful.

    However, some portion of the change between the 2004 and 2016 results is attributable to differences in
    methodology. For instance, in the 2004 analysis, the impact of airport operations was calculated based on
    the dollar volume of operations rather than a direct survey of employment. Further, the 2004 impacts are
    assessed across a broader geographic scope (i.e., the 2004 results refer to impacts across the 13-county
    extended Minneapolis-St Paul region – which includes two counties in Wisconsin) as opposed to the
    geographic region encompassed by this study – the 7-county metropolitan area. In addition, although
    multiplier impacts were calculated using RIMS II in both studies, the studies use different versions of the
    RIMS II multipliers based on the most current data available at the time. The 2004 study also used a
    non-traditional definition of economic “activity,” based only on operating expenses and fuel sales. This
    current study applies the textbook definition of economic activity, which captures ALL spending (e.g.,

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 44

    capital improvement plus revenue) by firms, organizations, and individuals. In the case of organizations
    that do not generate revenue (e.g., government-provided air traffic control services and expenses by the
    MAC to staff and maintain these airports), annual operating expenses associated with these facilities are
    counted.

    Comment on Changes over Time
    The entire aviation industry has undergone significant changes in the last 12 years. On the commercial
    airline side, the major changes include significant consolidation in the industry (e.g., the merger of Delta
    Air Lines and Northwest Airlines) and a developing pilot shortage that has affected the ability of major
    airlines and their regional partners to serve smaller communities. In the general aviation industry, GA
    activity has been declining steadily for years, mostly because of a drop in recreational or leisure flying.
    Data from the FAA show broad-based decreases in the number of GA pilots, the number of registered
    aircraft, and total annual and average flight hours. Offsetting those declines, however, are increases in
    business flying, the expansion of the fractional aviation market, and increases in rotorcraft (helicopter)
    activity.

    In general, the FAA’s data show a drop of 8 percent in the number of active aircraft in the U.S. between
    2004 and 2015 (the latest available data at the time of this report). The number of active fixed-wing
    piston aircraft dropped by over 24,000 (-15 percent). On the other hand, the number of active turboprop,
    turbojet, and rotorcraft increased. Similarly, the number of aircraft used primarily for personal or
    recreational purposes declined by about 7 percent, and the number of aircraft used for business purposes
    (with paid flight crew) dropped by 34 percent. Over the same time period, the number of aircraft used for
    business purposes (without a paid flight crew) grew by 10 percent. Flying for instructional and other
    purposes (e.g., sightseeing, agricultural) also increased.

    Table 9.2: National Changes in Active Aircraft by Type and Primary Use

    Notes: 1 = Prior to 2014 this category was labeled “Business.”
    2 = Prior to 2014 this category was labeled “Corporate.”
    Source: FAA.

    These national trends are reflected in the change in movements at the MAC’s reliever airports. Since
    2004, the number of operations has declined substantially at all of the reliever airports, with each airport
    showing anywhere between a one- to two-thirds decrease in operations. At Flying Cloud Airport, the
    busiest reliever airport, the number of operations fell by 49% between 2004 and 2017. Some of that
    decline may be attributable to changes in how personnel at the airport’s air traffic control count aircraft
    operation, but that cannot be determined with certainty.

    The FAA does not separately report data for GA operations specific to Minnesota. Some data are
    available on the number of active pilots whose records indicate that they reside in the state. These
    records go back only to 2011, so the comparison since 2004 is unavailable. It is probably safe to assume
    that the overall trends in the number of Minnesota’s active pilots broadly corresponds to the national
    trends in active aircraft and number of hours flown.

    Type of Aircraft 2004 2015 % change
    Fixed Wing 182,867 164,293 -10.2% 2004 2015
    Fixed Wing – Piston 165,189 141,141 -14.6% Personal 149.7 139.7 -6.7%
    Fixed Wing – Turboprop 8,379 9,712 15.9% Business with paid flight crew1 24.2 15.9 -34.3%
    Fixed Wing – Turbojet 9,298 13,440 44.5% Business without paid flight crew2 10.2 11.3 10.4%
    Rotorcraft 7,821 10,506 34.3% Instructional 13.1 15.7 19.6%
    All Other 28,738 35,231 22.6% Other 22.2 27.5 23.6%
    Total 219,426 210,030 -8.3% Total 219.4 210.0 -4.3%

    Primary Use
    (in thousands) %

    change

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 45

    Table 9.3 summarizes the changes in Minnesota’s active pilots and non-pilot airmen.10 It highlights that
    the total number of pilots in Minnesota declined by 7 percent between 2011 and 2016, although the
    number of individuals holding private pilot’s licenses (as opposed to commercial, air transport, or some
    other type of certificate) decreased by 16 percent. Similarly, the number of other aviation professionals
    such as mechanics, repairmen, and dispatcher, fell by 11 percent over the same period.

    Table 9.3: Active Minnesota Pilots and Non-pilot Airmen

    The MAC has also supported numerous changes within the reliever airport system since 2004, some of
    which have had impacts on operations at those airports. These include but are not limited to:

     Installing a floodwall at St. Paul Downtown
     The acquisition of Regent Aviation by BBA Aviation (Signature Flight Support)
     The buyout of Modern Aero at Flying Cloud by Premier Aviation
     Lengthening runway at Flying Cloud
     Lengthening runway at Anoka County – Blaine
     Adding precision landing system (instrument landing system) at Anoka County – Blaine
     Constructing a new building at Flying Cloud

    Taken together, these changes highlight the dynamic nature of the GA industry in the greater
    Minneapolis-St. Paul region.

    10 FAA defines the term “airmen” to includes men and women certified as pilots, mechanics or other
    aviation technicians. An active airman is one who holds both an airmen certificate and a valid medical
    certificate. Airmen who must have a valid medical to exercise the privileges of their certificate are all
    airplane pilots, rotorcraft pilots, flight navigators, and flight engineers. Glider pilots are not required to
    have a medical examination but the numbers represent only those who had a valid medical certificate on
    record at the Aeronautical Center.

    2011 2016 Change % change
    Students 1,885 2,033 148 8%
    Private 1/ 4,705 3,965 (740) -16%
    Commercial 1/ 2,641 1,943 (698) -26%
    Airline Transport 1/ 3,502 3,923 421 12%
    Misc. 2/ 85 108 23 27%
    Flight Instructor 3/ 2,469 2,627 158 6%
    Remote Pilots 3/ N/A 381 N/A N/A
    Subtotal – Pilots 12,818 11,972 (846) -7%

    Ground Instructor 1,533 1,189 (344) -22%
    Flight Engineer 1,512 1,086 (426) -28%
    Mechanic 6,893 4,708 (2,185) -32%
    Repair men 583 504 (79) -14%
    Parachute Rigger 108 57 (51) -47%
    Dispatcher 579 433 (146) -25%
    Flight Attendant 5,514 6,322 808 15%
    Subtotal – Non Pilot Airmen 16,722 14,299 (2,423) -14%

    29,540 26,271 (3,269) -11%

    Non-Pilot
    Airmen

    Active
    Pilots &
    Flight

    Instructors

    Category

    Total

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 46

    Appendix: Methodology
    InterVISTAS conducted this economic impact study during the second half of 2017. The study is based
    on employment data collected from survey respondents for calendar year 2016.

    To calculate the direct employment impacts, the study team surveyed all the employers associated with
    the operation of each of the six reliever airports (e.g., the FBOs) to determine the number of individuals
    employed in directly related occupations, as well as the amount of wages paid out to those individuals.
    The firms surveyed as part of this study are located both on the airport site (on-site) and off airport
    property (off-site). The employment survey was used to classify the total employment and average wages
    paid out by business type. In turn, this data was used to calculate the associated tax impacts
    (government revenue) generated by the airports’ operations.

    InterVISTAS estimated the indirect and induced effects using the RIMS II model, which is based on 2007
    national benchmark input-output data and 2015 regional data. The previous study conducted in 2005 also
    used the RIMS II model, with multipliers derived from 2002 benchmark input-output data and 2010
    regional data.

    To derive estimates of the impact of non-local visitors arriving and departing from the reliever airports,
    InterVISTAS consulted with the FBOs operating at each of the airports and further corroborated the
    findings with MAC.

    Wherever possible, the results of this study were validated and measured against recognized and reliable
    external sources.

    Estimating Current Economic Impact
    Direct employment related to ongoing operations at each of the reliever airports is measured first.
    Employment figures are generally more understandable by the public than more abstract measures, such
    as economic output or GDP. Employment figures also have the advantage of being a more accurate
    measure, both because firms are more likely to provide data on employment rather than information on
    revenues, earnings, and other monetary amounts, and because there is less chance of double counting
    economic activity.

    The study team then assessed the indirect and induced (or “multiplier”) employment supported by each
    airport’s operations, as well as economic activity in terms of economic output and GDP using economic
    multipliers. The tax revenues generated annually by operations at each airport are also estimated.

    Surveying Direct Employment
    To quantify the total amount of employment attributable to ongoing operations at each of the reliever
    airports, the project team began by surveying tenants and employers located at the airports. The team
    followed up with firms and organizations that had not responded to the emailed survey via telephone and
    email to encourage them to submit information. In total, 70% of the businesses and organizations
    contacted responded to the survey, representing roughly 86% of total person years of employment
    covered by the survey. In total, 51 survey responses were received from on-site tenants.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 47

    Inferring Employment
    For non-responding firms, the project estimated the amount of employment by company using a proven
    and accepted methodology. At commercial service airports which are under security requirements
    established by the U.S. Transportation Security Administration, airport operators must require employees
    of tenant firms/organizations who work at the reliever airport to obtain security badges allowing them to
    work on the airport properties. This TSA requirement is not applicable to the reliever airports, so the team
    was not able to estimate total employment based on the number of badges issued. Instead, the team
    generated inferred amounts of employment for non-responding firms based on a combination of internet
    research as well as statistical estimates based on responses from similar firms that did submit a survey.
    The team provided those estimates to the MAC staff with responsibility for and knowledge of operations
    at each of the airport for their review. The team also referenced the survey results of similar firms and
    examined information from other credible external sources like the U.S. Bureau of Labor Statistics.

    There may be firms located off-airport that were not surveyed because their relationships to airport-
    related industries were not known. An estimate of employment for these non-surveyed firms was not
    provided because there was no basis for an assessment. If there were any omissions, it is expected that
    the volume of missed employment would be minimal.

    Estimating Indirect and Induced Impacts with Economic
    Multipliers
    Measurement of indirect and induced economic activity is difficult. While it may be possible to conduct a
    survey of downstream employers, the survey would need to cover thousands of firms in order to
    completely cover indirect employment. For induced employment, the entire economy would need to be
    scrutinized. In addition to the time and financial resources needed to conduct such surveys, the quality of
    responses would be suspect.

    As an alternative to costly and inaccurate surveys, indirect and induced effects are typically measured
    using economic multipliers. Multipliers are derived from models of the general economy. They come in a
    variety of forms and differ greatly in definition and application.

    InterVISTAS purchased the multipliers used for this study from the U.S. Bureau of Economic Analysis
    (BEA). Those multipliers are based on BEA’s most recent Regional Input-Output Modeling System (RIMS
    II). RIMS II is based on a highly detailed accounting of national and regional economic structures or
    relationships. The model tracks how the goods and services produced by one industry are used by other
    industries and final users. RIMS II adjusts these national relationships to account for regional supply
    conditions. This version of the RIMS II model is based on 2007 national benchmark input-output data and
    2015 regional data.

    The specific multipliers selected for this study model the economy of the seven-county core metro area —
    Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington counties. This region – rather than
    other potential geographic areas, such as the entire State of Minnesota — was selected based on the
    concentration of airport- and airline-related employers in the area, the economic relationship among those
    firms and organizations, and the residency of the vast majority of employees.

    InterVISTAS acknowledges that the use of multiplier analysis – and indeed any econometric model — is
    inevitably subject to certain theoretical and practical constraints and limitations. These include:

    • the accuracy of the structure and parameters of the underlying model;
    • the level of unemployment in the economy;

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 48

    • the assumption of constant returns to scale in production;
    • the assumption that the economy’s structure is static over time; and
    • the assumption that there are no displacement effects.

    That said, the project team believes that the use of this model in entirely consistent with recognized and
    common professional economic impact modeling.

    Study Time Frame
    The employment survey was conducted between October 2017 and January 2018. The results reflect
    employment for calendar year 2016.

    Jobs versus Person Years of Employment
    Traditionally, employment is measured by the number of jobs. However, when part-time and/or seasonal
    workers are used, this can be a misleading measure resulting in an overstatement of economic impact.
    Whenever possible, employment impacts are measured both in terms of the number of jobs and the
    number person-years of employment, often referred to as “full-time equivalents” (or FTEs).11 We convert
    hours worked by part-time and/or seasonal employees into FTEs.

    Visitor Spending Analysis
    Visitors who fly into the reliever airports contribute to the local, regional, and state-wide economic impacts
    in ways similar to passengers who arrive via Minneapolis-St. Paul International Airport. The project team
    developed estimates of the amount and type of spending who arrived at the reliever airports using
    multiple approaches.

    Estimating the Number of Non-Local Visitors
    Verifiable data are not available on the number of people who arrive at an airport on general aviation
    aircraft. However, there are relatively reliable data on the number of aircraft operations that occur at each
    airport, and whether those operations were “local” or “itinerant.” (An operation refers to a take-off or
    landing; total operations count both.) The MAC maintains data on total operations at each airport. The
    FAA also maintains data on operations at most airports in the U.S. (including the six reliever airports).
    The FAA’s data includes estimates on the number of operations that are local versus itinerant. With
    these data, the team estimated the number of itinerant aircraft operations at each airport.

    The project team interviewed the FBO managers at most of the airports to develop information on the
    number of persons on-board each itinerant operation. Based on the data reported by those staff, the
    team estimated the total number of visitors who arrived in the region at each airport.

    Estimating Average Spending per Visitor
    First, the team asked each manager of the airport or the local FBO to report some basic metrics about
    aircraft operations at their facilities, and estimates of visitors and their spending. Airport managers were
    asked to estimate:

    11 One person year is equivalent to 1,800 hours of work. Person years are the same as FTEs.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 49

    • The percentage of their operations that were local vs. transient;
    • Average number of persons on board, including the pilots;
    • The percentage of visitors who used local ground transportation (e.g., rental cars, car services);
    • Average catering purchases by visiting aircraft;
    • Average length of stay for visitors; and
    • Whether the FBO had any relationships with local hotels.

    The project team used these data to generate estimates of the total number of visitors who arrived at
    each airport, the average length of stay, and spending by those visitors.

    Discussions with these staff also provided insight into the nature of the travellers who used each airport –
    that is, whether the persons on board tended to be traveling for business or personal/leisure reasons.
    Generally speaking, aircraft activity at St. Paul Downtown tends mostly to be corporate/business aviation.
    Flying Cloud Airport also supports a high percentage of corporate and business traffic, as does Anoka-
    Blaine County. Airlake, Crystal, and Lake Elmo airports generally are more oriented toward recreational
    and leisure flying.

    In general, business travellers tend to spend more per person per day than leisure travellers. Higher
    concentrations of corporate and business flying are thus associated with higher amounts of spending.

    To gauge the reasonableness of the estimates, the project team compared against multiple other
    estimates:

     In 2017, InterVISTAS Consulting issued an analysis of the total economic impact of the
    operations of MSP, which included estimates of the average amount spent by different categories
    of visitors, including those who arrive by GA.

     The prior (2005) economic impact analysis of the reliever airports included estimates of the
    average amount spent by visitors to each of the reliever airports. Those estimates were based
    originally on data from Greater Minneapolis Convention and Visitors Bureau and from the
    Minnesota Office of Tourism.

     Other estimates of the average spending by visitors who arrive at GA airports in other areas. For
    example, InterVISTAS generated estimates of average spending by GA travellers who arrived at
    GA airports in Virginia in 2017. Similarly, in January 2018, the Allegheny County Airport Authority
    released a study from another consulting firm that estimated the average amount spent by GA
    travellers who used both Pittsburgh International Airport and the nearby Allegheny County (GA)
    Airport.12

    The combination of passenger spending profiles and the calculation of non-local visitors were used to
    develop the estimate of total visitor spending for 2016. The final results are provided in Table I-1.

    12 As of the writing of this report, the Commonwealth of Virginia has not released the technical report that
    describes the visitor impact at Virginia’s 66 public use airports. For information on the amount spent by
    visitors who use the Allegheny Airport Authority’s airports, see
    http://www.flypittsburgh.com/newsroom/economic-impact

    http://www.flypittsburgh.com/newsroom/economic-impact

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 50

    Table I-1: Summary of Trip Characteristics of Non-Local Visitors Using Reliever Airports

    Airport Number of
    Visitors

    Average Expenditure
    per Visitor / Day ($)

    Total Visitor
    Spending ($000)

    Airlake 22,300 $121 $2,819

    Anoka County-Blaine 73,700 $116 $8,581

    Crystal 19,740 $120 $2,378

    Flying Cloud 115,720 $159 $18,437

    Lake Elmo 10,130 $108 $1,098

    St. Paul Downtown 89,920 $168 $15,077

    Total* 332,500 $146 $48,390
    Note: Total average (mean) expenditure per visitor is calculated by dividing the total visitor expenditure amount by the total number
    of visitors that passed through the airports in 2016. Figures may not sum to totals due to rounding.

    Tax Impact Analysis
    Direct employment figures related to the operations of the reliever airports were entered into the IMPLAN
    model to generate the resulting federal, state, and local government tax impacts. No indirect or induced
    impacts (multiplier effects) were considered as part of the tax analysis.

    Tax revenue contributions are divided into the following groupings:

    • Taxes Related to Employee Compensation. This category includes the federal, state, and local
    impacts of Social Insurance taxes paid by employers and employees at the airports. It contains
    the tax impacts generated by retirement plans, temporary disability insurance, and workers’
    compensation payments. These taxes contribute largely to federal government streams; however,
    smaller contributions are made to state and local governments as well.

    • Taxes Related to Household Income. This category contains the personal tax impacts
    generated by households related to the airports. The federal impacts include all applicable
    personal income tax payments. The state and local impacts contain personal income tax
    payments, fines and fee charges, motor vehicles licensing fees, property taxes, and other
    applicable taxes. The federal government receives over two-thirds of the tax impacts in this
    category, while state and local governments share the remaining third.

    • Other Taxes and Fees. These relate to a taxes and fees that are paid by corporations to the
    local, state and federal levels of government.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 51

    Glossary of Terms
    Contract Work: Any work which is done for a company by an individual who is not on the payroll or work
    done for a company by another company. Generally speaking, firms will contract out work in areas in
    which they do not have expertise or when there are cost advantages to doing so.

    Direct Employment: Direct employment is employment that can be directly attributable to the operations
    in an industry, firm, etc. It is literally a head count of those people who work in a sector of the economy. In
    the case of the airport, all of those people who work in an aviation related capacity would be considered
    direct employment.

    Economic Activity: (also Output, Production) The end product of transforming inputs into goods. The
    end product does not necessarily have to be a tangible good (for example, knowledge), nor does it have
    to create utility (for example, pollution). Or, more generally, the process of transforming the factors of
    production into goods and services desired for consumption.

    Economic Output: (also Economic Activity, Production) The end product of transforming inputs into
    goods. The end product does not necessarily have to be a tangible good (for example, knowledge), nor
    does it have to create utility (for example, pollution). Or, more generally, it is defined as the process of
    transforming the factors of production into goods and services desired for consumption.

    Employment Impact: Employment impact analysis determines the economic impact of employment in
    terms of jobs created and salaries and wages paid out. In the case of the airport, the direct, indirect,
    induced and total number of jobs or person years created at the airport is examined to produce a
    snapshot of airport operations.

    Fixed-Base Operator (FBO): An organization granted the right by an airport to operate at the airport and
    provide aeronautical services such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft
    maintenance, flight instruction, and similar services.

    Full Time Equivalent (FTE): (also Person Year) One full time equivalent (FTE) year of employment is
    equivalent to the number of hours that an individual would work on a full-time basis for one year. In this
    study we have calculated one full time equivalent year to be equivalent to 1,800 hours. Full time
    equivalent years are useful because part time and seasonal workers do not account for one full time job.

    General Aviation (GA): Refers to all segments of aircraft activity that are not related to the commercial
    airlines or the military. GA is often divided into two broad categories: leisure or recreational flying and
    business aviation.

    Gross Domestic Product: (GDP, also value-added) A measure of the money value of final goods and
    services produced as a result of economic activity in the nation. This measure is net of the value of
    intermediate goods and services used up to produce the final goods and services.

    Ground Transportation: Ground Transportation at the airport includes any vehicles which transport
    passengers from the airport to the cities or from the cities to the airport. This would include taxicab
    service, limousine service and hotel van service. Transportation network companies such as Uber or Lyft
    are also included in this category. Valet services as well as skycaps are included in this category.

    Indirect Employment: Indirect employment is employment which results because of direct employment.
    For the airport, it would include that portion of employment in supplier industries which are dependent on
    sales to the air transport sector. In some cases, contract work would be considered indirect employment.

    Metropolitan Airports Commission – 2017 Reliever Airport System Economic Impact Study 52

    Induced Employment: Induced employment is employment created because of expenditures by direct
    and indirect employees.

    Maintenance Repair and Overhaul (MRO): Generally, a company whose primary mission involves
    fixing any sort of mechanical, plumbing, or electrical device should it become out of order. In the aircraft
    maintenance market sector, MRO services also include inspection, rebuilding, alteration and the supply of
    spare parts, accessories, raw materials, adhesives, sealants, coatings and consumables for aircraft
    manufacturing.

    Multiplier Analysis: Analysis using economic multipliers in which indirect and induced economic impacts
    is quantified. Essentially, a multiplier number is applied to the “directly traceable economic impact” to
    produce indirect and total effects (see Multiplier.)

    Multiplier: Economic multipliers are used to infer indirect and induced effects from a particular sector of
    the economy. They come in a variety of forms and differ in definition and application. A multiplier is a
    number which would be multiplied by direct effects in order to calculate indirect or induced effects. In the
    case of the airport, as in many other cases, multipliers can lead to illusory results, and thus must be used
    with great care.

    Tenant: A firm which pays a lease to a leasing company or to the airport authority directly.

    Value-Added: (also GDP) A measure of the money value of final goods and services produced as a
    result of economic activity in the nation. This measure is net of the value of intermediate goods and
    services used up to produce the final goods and service.

    Prepared by

    InterVISTAS Consulting Inc.
    1150 Conn. Ave., NW

    Suite 601
    Washington, DC 20036

    Telephone: +1-202-688-2220

    www.intervistas.com

      Executive Summary

      1 Introduction and Background

      The Greater Minneapolis-St. Paul Region

      General Aviation is a Substantial Economic Contributor

      GA Activity Has Been Declining Nationally

      The MAC Reliever Airport System

      Airlake Airport

      Anoka County-Blaine Airport

      Crystal Airport

      Flying Cloud Airport

      Lake Elmo Airport

      St. Paul Downtown Airport

      Economic Impact Defined

      Contributions to Local Governments from Airport Operations

      Overview of Methodology

      2 Economic Impact of Airlake Airport

      Direct Impacts

      Multiplier Impacts

      Total Operational Impacts

      Visitor Impacts

      Consolidated Impacts

      Tax Contributions from Airlake Airport

      3 Economic Impact of Anoka County-Blaine Airport

      Direct Impacts

      Multiplier Impacts

      Total Operational Impacts

      Visitor Impacts

      Consolidated Impacts

      Tax Contributions from Anoka County – Blaine Airport

      4 Economic Impact of Crystal Airport

      Direct Impacts

      Multiplier Impacts

      Total Operational Impacts

      Visitor Impacts

      Consolidated Impacts

      Tax Contributions from Crystal Airport

      5 Economic Impact of Flying Cloud Airport

      Direct Impacts

      Multiplier Impacts

      Total Operational Impacts

      Visitor Impacts

      Consolidated Impacts

      Tax Contributions from Flying Cloud Airport

      6 Economic Impact of Lake Elmo Airport

      Direct Impacts

      Multiplier Impacts

      Total Operational Impacts

      Visitor Impacts

      Consolidated Impacts

      Tax Contributions from Lake Elmo Airport

      7 Economic Impact of St. Paul Downtown Airport

      Direct Impacts

      Multiplier Impacts

      Total Operational Impacts

      Visitor Impacts

      Consolidated Impacts

      Tax Contributions from St. Paul Downtown Airport

      8 Summary of Economic Impact Results

      Operational Economic Impacts

      Economic Impacts from Visitor Spending

      Consolidated Economic Impact of the Reliever Airports

      Tax Revenue Impacts

    • 9 Comparison of 2004 and 2016 Economic Impacts
    • Comment on Changes over Time

      Appendix: Methodology

      Estimating Current Economic Impact

      Surveying Direct Employment

      Inferring Employment

      Estimating Indirect and Induced Impacts with Economic Multipliers

      Study Time Frame

      Jobs versus Person Years of Employment

      Visitor Spending Analysis

      Estimating the Number of Non-Local Visitors

      Estimating Average Spending per Visitor

      Tax Impact Analysis

      Glossary of Terms

    Regional perspectives on general aviation and reliever airports:
    A case study of the Phoenix metropolitan area

    Tony H. Grubesic1, Kurt Fuellhart2, Fangwu Wei3, Kevin O’Connor4

    1 Center for Spatial Reasoning & Policy Analytics, College of Public Service & Community Solutions, Arizona State
    University, Phoenix, AZ, USA (e-mail: grubesic@asu.edu)
    2 Department of Geography &Earth Science, Shippensburg University, Shippensburg, PA, USA
    (e-mail: kgfuel@ship.edu)
    3 School of Geographical Sciences and Urban Planning, Arizona State University, Tempe, AZ, USA
    (e-mail: fangwu.wei@asu.edu)
    4 Department of Urban Planning, Faculty of Architecture, Building and Planning, University of Melbourne, Parkville,
    Australia (e-mail: kevin.oconnor@unimelb.edu.au)

    Received: 12 April 2017 / Accepted: 7 June 2017

    Abstract. Reliever airports hold a special place within the National Plan of Integrated Airport
    Systems (NPIAS) in the United States. Established in the 1960s, the purpose of reliever airports
    was to draw general aviation traffic away from congested primary airports located in larger met-
    ropolitan areas. In time, many of these airports evolved from simply relieving local air traffic
    congestion to functioning as both operational and economic hubs for the communities they
    serve. The purpose of this paper is to highlight the development of the reliever airport network
    in the United States and to explore their role (existing or potential) in the larger air transport sys-
    tem, as well as the associated regions that they serve. Specifically, a case study of the Phoenix
    Arizona metropolitan area and its reliever network is conducted. The results suggest that
    although many relievers are destined for their original purpose, others may have the opportunity
    to diversify their form and function.

    JEL classification: L93, R58, O21

    Key words: Air transportation, regional development policy, planning models

    1 Introduction

    The national air transportation system in the United States is large and complex. Of the 3,340
    airports identified in the National Plan of Integrated Airport Systems (NPIAS), 382 are consid-
    ered primary airports by the Federal Aviation Administration (FAA) (FAA 2016c). This group
    includes all large, medium, small and non-hub facilities. FAA designated large hubs (e.g., ATL)
    handle 1 per cent or more passenger enplanements, medium hubs (e.g., STL) 0.25–1 per cent,
    small hubs (e.g., TUS) 0.05–0.25 per cent and non-hubs (e.g., MFR) enplane at least 10,000
    (but less than 0.05%) of all US passengers per year. To put these numbers in perspective,

    doi:10.1111/rsp3.12091

    © 2017 The Author(s). Regional Science Policy and Practice © 2017 RSAI

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    FAA large hubs (n = 31) handled 580,568,021 passenger enplanements (i.e., 72.7%) of the na-
    tion’s passengers in 2015 (FAA 2016a).

    The airports detailed above are those that most people are familiar with – functional gate-
    ways served by commercial carriers. However, there are 2,950 additional facilities in the
    United States that are classified as non-primary airports, which consist of general aviation
    (GA) (n = 2,564), non-primary commercial service (n = 127) and reliever airports (n = 259).
    As detailed by the FAA (2016a), general aviation airports do not receive any commercial service
    (or not enough to satisfy the NPIAS criteria), but do serve as the closest source of air transpor-
    tation for about 19 per cent of the population, including many rural areas. General aviation air-
    ports also support a range of critical functions for local communities, including flight training
    and law enforcement operations (FAA 2015b). That said, a small group of non-primary com-
    mercial service airports (n = 127) offer scheduled passenger service at low volumes (2,500 to
    9,999 passengers per year). For example, during 2015, the airport in Bar Harbor, Maine
    (BHB) handled 9,579 passengers, while the Purdue University airport in Lafayette, Indiana
    handled 2,504 passengers.

    The remaining non-primary airports are classified as relievers and provide functionality
    somewhere between a general aviation and non-primary commercial gateway. For example,
    the operation requirements for smaller, general aviation aircraft are drastically different than
    those for larger commercial jets. As a result, general aviation pilots often have difficulty
    accessing and operating their aircraft in urban areas, especially at primary airports where the dif-
    ferentials in aircraft size and speed and can cause problems (FAA 2015b). Thus, in an effort to
    provide broader access to the national airspace, the FAA has developed a network of reliever
    airports in/around metropolitan areas. To obtain reliever status, an airport must provide general
    aviation access to the surrounding area, have 100 or more based aircraft or have 25,000 annual
    itinerant operations.1 To reiterate, contrary to the nomenclature, most airports that are desig-
    nated as relievers serve their own economic and operational role and do not exist to relieve com-
    mercial jet congestion at another primary airport. However some reliever airports have the
    capacity to provide this function. It is this fact that makes them both interesting and highly rel-
    evant to their local communities, as well as the future of the national air transportation plan.

    Specifically, reliever airports are important for several reasons. First, as will be detailed later,
    they have substantial regional economic implications, contributing millions to local economies
    every year. Second, and relatedly, relievers facilitate the general aviation industry, which sup-
    ports $219 billion in total economic output and 1.1 million total jobs in the United States
    (GAMA 2015). Third, relievers have a potential role in the development of future commercial
    air transport, especially in communities where existing primary airports are heavily congested.
    Fourth, reliever airports can present significant land use conflicts for communities, where noise
    and related development concerns can become contentious issues. Lastly, it is important to re-
    member that most reliever airports were sited decades ago. So, like many infrastructure systems,
    reliever airports reflect a legacy of community priorities and investments, but their geographic
    positioning is important to consider and/or reconsider given the massive growth that many urban
    areas have experienced over the past several decades.

    Given this context, the purpose of this paper is to highlight the development of the reliever
    airport network in the United States and to explore the role of relievers (existing or potential) in
    the larger air transport system, as well as the associated regions that they serve. Specifically, a
    case study of the Phoenix Arizona metropolitan area and its reliever network is conducted.
    The results suggest that although many relievers are destined for their original purpose, others
    may have the opportunity to diversify their form and function, greatly expanding and enhancing

    1 Itinerant operations are operations performed by an aircraft, either Instrument Flight Rules (IFR), Special Visual
    Flight Rules (SVFR) or Visual Flight Rules (VFR), that lands at an airport, arriving from outside the airport area,
    or departs an airport and leaves the airport area (FAA 2014).

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    their role in the local metropolitan fabric. It is also important to note that research on general
    aviation in the United States, in any form, is sparse – especially in the regional science and/or
    transport geography literature. Aside from some basic work on general aviation crashes (Baker
    and Lamb 1989; Kearney and Li 2000; Grabowski et al. 2002), and an early effort to evaluate
    the employment impacts of reliever airports (NewMyer 1983; NewMyer et al. 2007), we are
    not aware of any work concerning the regional implications of general aviation in the US.
    Again, considering that the general aviation industry supports $219 billion in total economic
    output and 1.1 million total jobs in the United States (GAMA 2016), this is a huge oversite.
    In an effort to mitigate this gap, a secondary purpose of this paper is to develop a foundation
    for future research concerning general aviation and its importance to communities and their as-
    sociated regions. However, because this work is structured as an overview and case study for
    Phoenix, the small sample size (n = 6) prevents us from developing an inferential framework
    that explains local drivers for all general aviation activity. We view this as a strength, rather than
    a limitation as it allows us to highlight the many economic, operational and spatial subtleties that
    permeate the reliever airport network in the United States, and Phoenix, Arizona in particular.

    2 General aviation

    In order to understand reliever airports, it is necessary to explore the many facets of general avi-
    ation operations in the United States. In brief, general aviation fills the gaps left behind by
    scheduled commercial airline service. Each year, the FAA conducts a general aviation survey
    and categorizes the uses of general aviation aircraft as follows:

    • personal and recreational flying;
    • business transportation without a paid crew;
    • business transportation with a paid, professional crew;
    • instructional flying;
    • sight-seeing (i.e., commercial sight-seeing operations under FAR Part 91); and2

    • air taxi, air tours and air-medical operations (i.e., on-demand FAR Part 135).3

    It is remarkable to note that the bulk of yearly aircraft operations in the United States (~75%)
    fall within the bounds of general aviation. These are little planes moving in/out of little airports.
    As detailed above, this includes the use of corporate jets, medical evacuation helicopters and
    airplanes owned by small businesses and/or individuals. To be clear, this also includes general
    aviation for agricultural functions, law enforcement and border control, fire suppression, time-
    sensitive air cargo services (e.g., organ donation) and a range of other important civil and
    municipal functions. Clearly, the scale and scope of general aviation activity is significant in
    the United States. Of the 268, 443 registered GA aircraft in the United States 204,408 (77.9%)
    were active in 2014, flying more than 23.2 million hours (GAMA 2016). GAMA (2016) is also
    projecting a 1.4 per cent growth in GA hours flown in the US. (2014–2035), but this projected
    growth runs counter to other trends that indicate some softening within the GA industry. For
    example, the number of registered pilots in the United States has steadily decreased since
    1980, falling from 827,071 to 590,038 in 2015, a decline of more than 33 per cent (GAMA 2016).

    In 2012, the FAA developed a basic typology of general aviation airports to better delineate
    their local, regional and national functions (FAA 2012):

    2 For more details on Part 91, see: http://tinyurl.com/z9ewsz4.
    3 For more details on Part 135, see: http://tinyurl.com/jt6vmmq.

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    http://tinyurl.com/z9ewsz4

    http://tinyurl.com/jt6vmmq

    • National: supports the national and state system by providing communities with access to na-
    tional and international markets in multiple states and throughout the United States;

    • Regional: supports regional economies by connecting communities to statewide and interstate
    markets;

    • Local: supplements local communities by providing access primarily to intrastate and some
    interstate markets;

    • Basic: supports general aviation activities such as emergency service, charter or critical pas-
    senger service, cargo operations, flight training and personal flying.

    • Unclassified: airports with limited activity and eight or fewer based aircraft.

    Each category for GA airports is associated with several criteria that help determine mem-
    berships.4 For example, to be classified as a regional general aviation airport, the facility must
    be located in a census designated micropolitan or metropolitan area, have 10 or more annual do-
    mestic instrument flight rule (IFR) flights over 500 miles, 1,000 or more IFR departures and one
    based jet or 100 or more based aircraft.

    Roberts Field (RDM), located in Redmond, Oregon is a good example of this category.
    RDM is the primary commercial airport for Central Oregon, serving as the local air gateway
    for nearby communities such as Bend, Prineville and Madras. Currently, RDM is served by four
    commercial carriers, including Alaska Airlines, American Airlines, United Airlines and Delta
    Airlines. Non-stop destinations include Phoenix, Los Angeles, San Francisco, Salt Lake City,
    Denver, Seattle and Portland. As of 2015, 68 aircraft are based at RDM, 55 of which are single
    engine, nine are multi-engine, three are jets and one is a helicopter (AirNav 2016). RDM aver-
    aged 125 operations per day in 2015, 48 per cent of which were local general aviation, 25 per
    cent transient general aviation, 15 per cent air taxi, 10 per cent commercial and 2 per cent mil-
    itary (AirNav 2016). Interestingly, one of the major general aviation functions at RDM is its use
    as a base for regional firefighting efforts. The United States Forest Service (USFS) Redmond Air
    Center is located at the airport, providing support for firefighting operations, training and hous-
    ing for smokejumper teams (USFS 2016).

    2.1 Reliever airports, secondary airports and multi-airport regions

    2.1.1 Multi-airport regions (MARs) and secondary airports

    Given the sheer number of airports recognized by the NPIAS in the United States, it should not
    be surprising that most metropolitan areas are home to more than one airport. However, local
    context is important when attaching the term multi-airport region to commercial air transport
    markets. As outlined by De Neufville (1995) multiple airport regions correspond to metropolitan
    markets and/or regions that have more than one commercial gateway option for travelers. Again,
    this subset of facilities consists of 382 primary airports, or about 11.5 per cent of all NPIAS
    airports in the US.

    Within the broader context of MARs it is important to delineate the differences between core
    airports and secondary airports. To be clear, reliever airports should not be confused with, nor
    do they correspond to ‘secondary’ airports in multi-airport regions (MARs) (De Neufville
    1995; Loo 2008; O’Connor and Fuellhart 2016). Secondary airports are commercial gateways
    that have emerged near heavily congested core airports. These gateways are often served by
    low-cost carriers (LCCs) (e.g., Southwest, JetBlue, Frontier, etc.) and their geographic location
    typically caters to densely populated secondary cities or suburban population centers located

    4 Space limitations prevent us from detailing the requisite characteristics for all of these categories, but interested
    readers can consult the FAA (2012) report, General Aviation Airports: A National Asset, for more information.

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    near major cities (Bonnefoy and Hansman 2005). In short, secondary airports are the ‘multi’ part
    of the MAR system.

    For example, consider the Tampa, Florida region, which includes three primary airports –
    Tampa International (TPA), St. Petersburg/Clearwater International (PIE) and Sarasota/
    Bradenton (SRQ). TPA is considered the ‘core’ airport in the region, maintaining an 86.7 per cent
    market share of passenger traffic within the MAR during 2015 (BTS 2016a). Accordingly, PIE
    and SRQ are classified as secondary airports for the region, maintaining a 7.52 per cent and
    5.77 per cent market share of passenger traffic, respectively. These are not the only airports in
    the region, however. There are five reliever airports within 35 miles of Tampa (CLW, SPG,
    TPF, VDF and LAL), but none of these airports factor into the MAR designation, nor are they
    considered ‘secondary’ airports.5 Interestingly, the Lakeland Linder Regional airport (LAL), lo-
    cated near Lakeland, FL is a NPIAS designated reliever airport, but it currently holds a Part 139
    operating certificate from the FAA (2016b), which allows for scheduled air carrier operations
    with aircraft designed for more than 9 passenger seats, but less than 31 seats. In fact, as recently
    as 2012, Direct Air offered service to Myrtle Beach, SC, Niagara Falls, NY and Springfield, IL –
    anticipating that LAL would become a hub for tourist traffic to the area (Chambliss 2011) – but
    scheduled services ceased in March of that year and LAL resumed its status as a reliever.

    In other MARs, such as Washington, DC, multiple core airports may exist without any sec-
    ondary gateways. For example, Baltimore (BWI), Dulles (IAD) and Reagan National (DCA) are
    all considered core airports, because their share of passenger traffic within the region is rela-
    tively equal. BWI processed 35.02 per cent of all traffic in the region for 2015, while DCA
    and IAD processed 32.77 per cent and 31.7 per cent, respectively (BTS 2016a). In the case of
    Washington, the International Air Transport Association (IATA) denotes the region (and all
    three component airports) as ‘WAS’, although as noted by O’Connor and Fuellhart (2016),
    the use of these codes for MARs are not applied consistently on a global basis.

    2.1.2 Reliever airports

    The concept for reliever airports was developed in 1962 in an effort to more fully integrate gen-
    eral aviation activity into the fabric of metropolitan areas (FAA 2012). Again, the basic idea was
    that smaller planes and commercial jets did not mix particularly well when simultaneously
    operating at larger commercial airports. Reliever airports provided smaller aircraft alternative
    gateways for accessing metropolitan airspace without interfering with larger commercial opera-
    tions at large or medium hubs. By 1968, 147 reliever airports were active in/around the 22
    largest commercial airports in the United States. In time, the network of relievers expanded as
    new reliever airport standards were established in 2000 (FAA 2000). Specifically, general
    aviation airports could be included in the NPIAS and granted reliever status if the following
    criteria are met (FAA 2000):

    1. The airport currently (or is forecasted) to have at least 100 based aircraft or 25,000 annual
    itinerant operations,

    2. The relieved airport serves a metropolitan area with a population of at least 250,000 or
    enplanes 250,000 passengers annually.

    3. The relieved airport operates at 60 per cent or more of its capacity, or would be operated at
    such a level before being relieved, or is subject to restrictions that limit activity that would
    otherwise reach 60 per cent of capacity.

    5 Clearwater Air Park (CLW) is located in Clearwater, FL, Albert Whitted Airport (SPG) is located in St. Petersburg,
    FL, Peter O. Knight Airport (TPF) is located on Davis Islands, FL, the Tampa Executive Airport (VDF) is located six
    miles east of the Tampa central business district in an unincorporated portion of Hillsborough County and the Lakeland
    Linder Regional Airport is located in Polk County, FL.

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    4. Privately owned airports that were already designated as relievers (but did not meet these
    newly established criteria) could be grandfathered into the system and maintain reliever sta-
    tus for 10 years. If these airports did not meet the new criteria within that timeframe, they
    were to be deleted from the NPIAS.

    Today, the FAA recognizes relievers using their established typology of non-primary air-
    ports detailed above. This includes 65 relievers within the national category, 151 classified as
    regional, and a handful of other reliever airports that are considered local (n = 20), basic
    (n = 1) or unclassified (n = 22) (Figure 1). The spatial distribution of the airports is not unex-
    pected. Figure 1 illustrates that relievers are clustered in metropolitan areas (e.g., Dallas/Fort
    Worth, Los Angeles, Chicago), but there are standalone relievers, including those near Albu-
    querque, NM, Boise, ID, Spokane, WA, Des Moines, IA, Omaha, NE and many other smaller
    metropolitan areas in the US.

    Reliever airports in the United States are diverse in both size and function. Consider, for ex-
    ample, Phoenix Deer Valley Airport (DVT). DVT is a national airport that is home to 881 fixed
    wing aircraft (single engine, multi-engine and jets). During 2015, DVT had 379,616 tower op-
    erations, which includes both general aviation, commercial and military activity (GAMA 2016).
    In fact, DVT is so active, that as recently as 2010 it ranked as the 25th busiest airport in the
    world for aircraft movements (368,737 total), ahead of Salt Lake City (SLC), New York
    LaGuardia (LGA), Boston (BOS) and many others (ACI 2010). Conversely, consider the St.
    Clair County Airport (PLR), located near Pell City, Alabama, which serves as a reliever for
    Birmingham-Shuttlesworth International Airport (BHM). PLR is a non-primary local airport
    that houses 84 fixed wing aircraft and had 34,572 operations during 2015 (GCR 2016). In terms

    Fig. 1. Reliever airports in the United States, by Type, 2015

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    of operations, DVT is more than 165 per cent larger than PLR. So, while they are both consid-
    ered relievers, the scale of operations between the two airports is enormous. For example, DVT
    covers 914 acres, has two asphalt runways, hosts two flight schools (Westwind School of Aero-
    nautics and TransPac Aviation Academy) and a charter airline (Westwind Air Service) (DVT
    Airport 2016). Conversely, PLR covers 200 acres, has a single asphalt runway and is home to
    Holder Aviation, an avionics repair and installation company (PLR Airport 2016).

    3 Reliever airport development

    Clearly, general aviation plays an important role in the United States and reliever airports serve
    as the most significant locations of general aviation functions. Given the recent growth in both
    global and US domestic airport traffic, it is important to explore opportunities for leveraging key
    air transportation assets, including reliever airports, when considering strategies for expansion
    of the commercial air transport system. For example, IATA expects global air traffic for 2016
    to increase 5.4 per cent to 3.7 billion passengers (3.5 billion in 2015) and it is expected to double
    by 2034 (IATA 2016b). To put this in perspective, for 2016, about 9.8 million passengers flew
    each day – 5.83 million international and 3.97 million domestic passengers (IATA 2016a).
    Although much of the projected growth will occur in developing markets (e.g., Asia and the
    Middle East), mature markets, such as North America, are also anticipating growth. For
    example, IATA (2016b) analysis suggests that North America will grow 3.3 per cent annually
    and carry a total of 1.4 billion passengers (an increase of 649 million) by 2034. Considering that
    only 78 per cent of flights departed on time at airports such as SFO, JFK, LAX, FLL, ORD,
    LGA, EWR and MIA between January and October of 2016 (BTS 2016b), and that only
    78 per cent or less of scheduled flights arrived on-time to BOS, MIA, FLL, LAX, JFK, EWR,
    SFO and LGA (71.50%) during that same period, congestion delays at existing commercial
    hubs will continue to increase (Ruud 2015).

    Given these projections in traffic growth and the existing air traffic delays at many of the
    most important hubs in the United States, do reliever airports provide an opportunity to amelio-
    rate congestion and expand/enhance commercial operations in the United States? Answering
    this seemingly simple question is fraught with complications, including economic, planning, op-
    erational, and environmental challenges. In addition, it is recognized that airport capacity, con-
    gestion, demand and performance, for both passengers and freight, comingle in diverse ways.
    For interested readers, the literature offers a thorough exploration of these interactions
    (Hamzawi 1992; Gillen and Lall 1997; Slack 1999; Forsyth 2007). Here, we are asking two in-
    terrelated questions. First, can reliever airports shift from just serving general aviation to a rising
    share of commercial traffic in a growing global, national or regional market? If so, how and
    where? Second, are there alternative development trajectories, not necessarily involving com-
    mercial operations, that could spur local and regional economic development? If so, how and
    where?

    3.1 At least two paths

    It is important to acknowledge that there is significant debate surrounding reliever airport devel-
    opment throughout the United States. In this context, development could include additional
    charter and corporate/business jet traffic along with larger scale passenger operations. That de-
    bate has negative and positive dimensions. The negative dimension queries whether a reliever
    airport should be developed to accommodate larger volumes of traffic at all. It is well expressed
    in the controversy surrounding a proposal for an $11.5 million runway expansion to accommo-
    date more business travel at the Lake Elmo, MN airport (21D), which serves as a reliever for

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    Minneapolis-St. Paul International (MSP (Divine 2015). However, residents in/around Lake
    Elmo have expressed strong displeasure with the proposed expansion citing the potential for
    more noise from increased activity at the airport and an encroachment of the airport facility
    on valued open-space (Divine 2015). Ultimately, the proposed runway expansion was short-
    ened, but only by 100 feet (3,600 ft. to 3,500 ft.) (Divine 2016). Similar opinions were
    expressed when a proposal to expand the Flying Cloud Airport (FCM) in Eden Prairie, Minne-
    sota, also a reliever for (MSP). Again, community groups were concerned about the potential for
    additional noise in the community that a larger FCM would generate (Blake 2008). Regardless,
    plans for expanding FCM are moving ahead.

    The positive dimension of this debate centres on the benefits that are expected to flow from
    the role of a local airport as an economic hub (Weisbrod et al. 1993). It expresses the potential
    economic impact, not only directly via the additional traffic, but also from aviation support in-
    dustries or businesses that rely on the logistical advantages attracted by the additional traffic
    (MASC 2016). Analyses of the local impact of an airport have been carried out and although
    returns vary, it is suggested that for every dollar invested in an airport, the associated economic
    benefit exceeds $2 (MASC 2016). This is confirmed by research carried out on the total eco-
    nomic impacts of commercial airports in each of the US states in 2013 by CDM Smith
    (2014). That showed the 19 commercial airports in the state of Florida, for example, generated
    over 1.1 million jobs, and had a payroll approaching $38 billion and an economic output of
    $143.5 billion. In Arizona, the numbers were smaller, but still considerable. Specifically, the
    11 commercial airports generated 324,000 jobs with a payroll exceeding $14 billion and an eco-
    nomic output of $43.3 billion. In sum, the total economic output tied to commercial airports in
    the U.S. for 2013 was $1.1 trillion, approximately 7 per cent of the total gross domestic product
    that year (CDM Smith 2014).

    Needless to say, reports of these economic returns spur significant interest in airport devel-
    opment for smaller communities especially for those that already have existing air transport in-
    frastructure such as reliever airports. As an example, in 2000, Stafford County, Virginia, which
    is located on the Interstate 95 corridor approximately 35 miles southwest of Washington, DC,
    aggressively pursued the construction of a new reliever airport to support economic develop-
    ment in the region (Infanger 2000). Unlike many other locales, Stafford County did not have
    any existing air transport infrastructure, so the newly established local airport community pur-
    chased 550 of land acres at a cost of $9 million (Infanger 2000). Subsequent development of
    the airport increased overall costs to $35 million and includes a ~ 5,000 ft. runway. By 2010,
    Stafford Regional Airport was contributing $18.2 million to the local economy and actively
    serving as a reliever airport for both Dulles International (IAD) and Reagan National (DCA)
    in the DC area (SRAA 2014). What makes this an interesting example is that all of the major
    local government entities, including Stafford County, Prince William County, the city of
    Fredericksburg and many others supported its development and worked collaboratively to
    complete the project.

    Hence reliever airport development is not a straightforward matter, and opportunities and
    outcomes depend on local circumstances and community organization and attitudes to local eco-
    nomic development. To illustrate how these issues play out in a metropolitan region, we carry
    out an analysis of the reliever airports in the Phoenix metro area.

    4 Reliever airports in the Phoenix metropolitan area

    With over 1.5 million residents, Phoenix is the most populous city in Arizona and the sixth most
    populous in the United States (Census 2015). More broadly, the Phoenix metropolitan area,
    which includes numerous suburbs (e.g., Scottsdale, Mesa, Chandler) throughout Maricopa

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    and Pinal Counties, has a population of over 4.5 million (Census 2015), making it the twelfth
    largest metropolitan area in the United States. Although larger than most, the overall urban
    and suburban structure of Phoenix is quite similar to many other large cities found in the Sun-
    belt, including Las Vegas, San Antonio, Albuquerque, Sacramento and Austin. The Phoenix
    area is also growing rapidly, but the majority of this growth is occurring in the suburbs.
    Figure 2 displays population growth from 1990 to 2014 for a range of suburban locales through-
    out the metropolitan area. The growth in these suburbs is remarkable. For example, the city of
    Chandler had a population of 91,030 in 1990, but as of 2014 had grown to 254,276 (+94.55%).
    The city of Surprise grew from 7,207 people in 1990 to 126,275 (+174.4%) in 2014. It is impor-
    tant to highlight this suburban growth because reliever airports for the Phoenix area are firmly
    embedded within (or nearby) many of these suburbs. Again, Figure 3 highlights reliever loca-
    tions, all of which are located in first or second-ring suburbs in the metropolitan area.

    The state of Arizona has appreciably strong ties to the aviation industry. The Arizona De-
    partment of Transportation (AZDOT 2015) estimates that nearly 16.8 per cent of all employ-
    ment in the state is connected to the aviation industry. More importantly, AZDOT (2008)
    projects significant growth in aviation activity throughout the state over the next several de-
    cades, including massive increases in both enplanements and general aviation operation
    (Table 1). This mimics the national and global trends of projected growth highlighted previously
    (IATA 2016b). AZDOT (2008) estimated that $9.72 billion in funding would be required to
    meet basic infrastructure needs and associated aviation facility expansions to meet this projected
    demand in aviation services.

    The commercial air transport landscape of Arizona is largely dominated by Phoenix Sky
    Harbor International Airport. During 2015, PHX was the 11th busiest airport in the United
    States, enplaning over 21.3 million passengers (FAA 2016a). This is not to say that commercial
    activity does not exist elsewhere in Arizona. For example, Tucson International (TUS) enplaned
    1,549,253 passengers in 2015, while the Grand Canyon National Park Airport (GCN) enplaned
    332,050. Enplanement statistics, however, mask the sheer volume of passengers processed in
    hubs like PHX. For example, 44,006,205 passengers made their way through PHX during
    2015, setting a new record for the airport (AZ Central 2016). In addition to being a hub city
    for American Airlines (which processed 48% of all passengers (~23 million), PHX also serves
    as a focus city for Southwest Airlines (which processed 32% of all passengers (~14 million) in
    2016 (AZ Central 2016). In sum 20 different commercial airlines operate at PHX, providing
    service to over 300 cities in North America and Europe.

    In the next subsection, we provide a structured overview of reliever airports in the Phoenix
    metropolitan area by grouping them into four functional classifications based on their opera-
    tional characteristics as well as their role in the community. It is important to note that these
    are not ‘hard’ assignments, many of the detailed airports could easily be grouped in one or more
    categories, but for the purposes of this paper, they are assigned to their best fitting group for
    2016. As detailed throughout this paper, reliever airports are dynamic entities, as are the com-
    munities that they belong to. Thus, the functional classifications of these airports may change
    over time.

    4.1 Reliever becomes commercial

    Phoenix-Mesa Gateway International airport is located in Mesa, Arizona. AZA covers 3,020
    acres and maintains three runways. AZA represents the most interesting development in com-
    mercial air transport in Arizona over the past decade – emerging as a second commercial airport
    in the Phoenix metropolitan area. Phoenix-Mesa Gateway International Airport (IWA or AZA)
    is located 20 nautical miles east-southeast east of Phoenix (Figure 3) in the community of Mesa,
    AZ. As recently as 2007, AZA was classified as a reliever airport in the NPIAS and had no

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    Fig. 2. Population growth in metropolitan Phoenix suburbs: 1990–2014

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    commercial flights. However, in October of that year, Allegiant Airlines began offering service
    to a handful of US destinations. In time, both Spirit Airlines and Frontier Airlines also began
    offering service from AZA, but the presence of multiple carriers was short-lived. Both Spirit
    and Frontier uprooted from AZA and began offering service from PHX instead, with Spirit
    Airlines citing higher levels of traveller familiarity with PHX as the reason for leaving (Polletta
    and Wang 2013). With the departure of Spirit and Frontier, WestJet Airlines (based in Canada)
    began offering service from AZA in 2015 to multiple destinations in Canada.

    Fig. 3. Phoenix reliever airport network, 2015

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    The transition of AZA from a reliever airport to a small hub is significant for many reasons.
    First, these types of large scale transitions from general aviation/reliever airports to commercial
    hubs are rare. As detailed by Poole and Butler (1999), this is not an easy process, even if smaller
    regional jets were used for providing the service to relievers. In short, it requires significant
    upgrades to the landing aids and associated technology, as well as changes to the regional air
    space and air traffic control procedures. AZA managed to make these changes, leveraging a sig-
    nificant capital funding effort exceeding $754 million, much of which was eligible for FAA sup-
    port (~$400 million) (PhxMesa 2009). Second, the return on this investment has been significant.
    AZA has become amassive economic engine for the East Valley andGreater Phoenix region. The
    most recent economic impact analysis for AZA suggests a direct impact of $767 million for the
    region. In addition, estimates suggest the secondary impacts of AZA exceed $544 million
    (ASU 2014). In sum, over $1.3 billion in economic activity is attributable to Phoenix-Mesa Gate-
    way, with payrolls exceeding $390 million, as well as adding 10,470 jobs in the region (ASU
    2014). Expansion plans for AZA are also underway. For example, in an effort to attract additional
    carriers, AZA is offering incentives for new service at levels of at least two roundtrip flights per
    week to new markets. Specifically, AZA will provide 24-months of terminal use fee and landing
    waivers and $200,000 in marketing assistance (PhxMesa 2017). Further, for providing additional
    non-stop service to underserved markets, AZA is offering 12-months of fee waivers and
    $100,000 in marketing assistance (PhxMesa 2017). Lastly, AZA is also part of the FAA Phoenix
    Metroplex plan which is a large scale effort to improve the efficiency of the airspace in the Phoe-
    nix area by optimizing arrivals and departures. The Phoenix Metroplex project includes all of the
    reliever airports in Phoenix, as well as Tucson International (TUS) (FAA 2017).

    4.2 Relievers as economic growth engines

    Phoenix Deer Valley Airport is located in Phoenix Arizona. DVT covers 914 acres and main-
    tains two runways. It is the busiest general aviation airport in the country (FAA 2015a), and
    likely the world. As detailed in Table 2, DVT had 379,616 tower operations in 2015, but there
    is no scheduled commercial service, aside from an occasional charter flight, at DVT. Given the
    sheer volume of activity at DVT, Phoenix City Council recently passed a 20-year master
    improvement project for the airport. This includes the improvement of existing taxiways, the
    addition of new taxiways, upgraded lighting and hangar expansion (CBS 5 2015). In addition,
    all of the runways at DVT will be improved. Cutter Aviation, the DVT fixed-base operator,
    has also announced plans to build a new, multimillion-dollar facility at the airport (Epstein
    2015). Recent estimates suggest that DVT is responsible for direct (on airport) revenues of more
    than $32 million, employing 282 people with a payroll of $6.89 million for 2015.

    Phoenix Goodyear Airport is located in Goodyear, Arizona. GYR covers 789 acres and
    maintains one runway and one helipad. GYR was once known as Litchfield Naval Air Facility
    (LNAF) and was used to receive and test aircraft modified for the Navy by the Goodyear Air-
    craft Corporation during the Second World War (AZ Central 2014). After the Second World

    Table 1. Projected Growth in Aviation Activity for the State of Arizona

    2007 2012 2017 2030

    Enplanments (including air tours) 23.2 M 25.3 M 29.0 M 41.1 M
    Based aircraft 8,043 8,757 9,523 11,892
    General aviation operations 3.84 M 4.21 M 4.63 M 5.93 M
    Total operations (including military) 4.84 M 5.23 M 5.75 M 7.32 M
    Cargo tonnage 0.17 M 0.19 M 0.22 M 0.32 M

    Note: M = Million.

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    War, the facility shifted the scope of its operations and began serving as a preservation depot for
    surplus or antiquated aircraft from the Navy, Marines and Coast Guard (AZ Central 2014).
    When the LNAF closed in 1967, it was purchased by the city of Phoenix to serve as a reliever
    for Sky Harbor Airport. Because of federal budget cuts in 2013, the FAA threatened to close the
    tower at GYR (Jansen 2013), but because of its proximity to Luke Air Force Base, the tower
    remained (and remains) operational. As detailed in Figure 2, GYR is located in the second ring
    suburb of Goodyear, AZ, which is one of the fastest growing cities in the country (Zetner 2016).
    Similar to DVT, there is no scheduled commercial service in/out of GYR, but it is a busy airport,
    with 128,377 tower operations in 2016. The bulk of these operations are attributable to the Air-
    line Training Center Arizona (ATCA), which trains pilots for both Lufthansa Airlines and the
    German air force. In fact, the ATCA programme is so large, it has constructed dormitories for
    students at GYR. At one point ATCA and Oxford Aviation Academy (OAA), a second flight
    school based at Goodyear, housed nearly 600 students per year. Although Oxford departed
    GYR to consolidate training operations at Falcon Field in Mesa, AZ, expansion plans for pilot
    training are currently in the works for GYR, with CTC Aviation Group slated to invest $7 mil-
    lion to equip and open a training centre at GYR (Madrid 2014). Within three years, CTC plans
    on training approximately 200 pilots per year at GYR. The broader plans for GYR includes a
    partnership between the Phoenix Aviation Department and the city of Goodyear to create an avi-
    ation, defence and technology centre near the airport. A range of local development projects are
    in the works, including a $9.7 million corporate jet hangar and facility operated by Lux Air Jet
    Centers (Trowbridge 2015). In addition, the city of Goodyear also operates the Gateway South
    industrial park which is classified as a foreign trade zone (FTZ). This allows companies to store
    and move products within the FTZ, duty free. For example, Estes (2016, p. 1) notes that ‘British
    Airways can send orders to the warehouse in Goodyear where it ships to caterers who then de-
    liver to airlines in Seattle, San Francisco and Los Angeles. Duties are only assessed when items
    reach their final destination’.

    Chandler Municipal is located in Chandler, Arizona. Established in 1928, CHD covers 550
    acres and maintains two active runways and a helipad. Today, it is the 7th busiest general avi-
    ation airport in the United States, with more than 226,000 tower operations in 2015. As detailed
    previously, Chandler is one of many fast-growing suburbs in the Phoenix metropolitan area,
    adding more than 163,000 residents between 1990 and 2014. Given the boundary restrictions
    for the city, especially where Chandler abuts the Gila River Indian Reservation, the corridor sur-
    rounding CHD represents a ‘final frontier’ of growth and development for the municipality.
    Plans for this corridor, formally known as the Chandler Airpark, include a recently announced
    50-year ground lease agreement for the WingSpan Aviation Center at CHD. The first phase
    of this project will include 80,000ft2 of hangar/office space (City of Chandler 2015), but the

    Table 2. Phoenix reliever airport operations, 2015

    Facility Airport operations Tower operations* Enplanments

    CHD 219,853 226,681 360
    DVT 369,759 379,616 28
    FFZ 250,725 260,664 21
    GEU 77,835 81,589 13
    GYR 111,330 116,598 10
    SDL 147,753 157,457 1,164
    PHX 440,411 462,603 21,351,504
    AZA 214,409 223,178 666,187

    Notes: *Tower operations include all itinerant traffic and overflight activity at a given airport.

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    five-year build-out plan include an additional 170,000ft2 of hangar/office space and enhanced
    taxi access to the CHD runway. This is in addition to the development of a 302,000ft2 package
    distribution center under development by Federal Express (Gabel 2014). A recent economic
    impact analysis of CHD suggests that the airport is directly responsible for over $32 million in
    revenues and 163 jobs with a payroll of $6.89 million (CAC 2016). More importantly, when
    direct air visitor impacts and associated secondary economic impacts are considered, CHD is
    responsible for over $109 million in revenues, 795 jobs and $31.45 million in payroll. These
    numbers are expected to grow over the next decade, with estimates suggesting that the Chandler
    Airpark area eventually hosting more than 28 million square feet of non-residential space and
    account for 30,000 jobs (Quigley 2013).

    4.3 Relievers as specialized economic nodes

    Falcon Field is located in Mesa, Arizona opened in 1941 to serve as a training base for pilots
    during the Second World War. FFZ consists of 794 acres and has two active runways. FFZ is
    an active airport, with over 260,000 tower operations in 2015, ranking it as the 12th busiest gen-
    eral aviation airport in the country (FAA 2015a). However, FZZ is best known as a centre for
    aerospace/defence manufacturing. For example, MD Helicopters is located at Falcon Field
    and is one of the largest manufacturers of high-performance helicopters in the United States
    (MDH 2016). Also, adjacent to FFZ is a Boeing Corporation campus that manufactures the
    AH-64 Apache helicopter. Boeing employs more than 5,000 people in the state of Arizona, with
    its largest concentration of employees in Mesa. Nammo Talley and Timken (both defence con-
    tractors) also maintain a presence in/around the Falcon Field Economic Activity Area (Mesa
    2014). In sum, there are more than 90 businesses providing more than 1,300 jobs at Falcon Field
    (FF 2016) and much like Goodyear, AZ, Mesa also offers a FTZ to companies seeking this type
    of operational support.

    Scottsdale Airport is located in Scottsdale, Arizona and was established in 1942 as a training
    facility for Second World War Army Air Corps pilots (Scottsdale 2017). SDL covers 282 acres
    and maintains a single asphalt runway. SDL is one of the busiest single runway airports in the
    country and had the most enplanements of any reliever airport in the Phoenix metropolitan area
    during 2015 (Table 2).6 Recent economic impact statistics suggest that aviation activity at SDL
    and its associated airpark created $536 million in total economic benefits for the region,
    supporting 3,462 jobs with incomes of $186.2 million (SCC 2015). On an average day, SDL
    visitors inject $120,000 into the area economy (SCC 2015). One of the major geographical ad-
    vantages for SDL is its location in north Scottsdale and its proximity to the major resort desti-
    nations in Scottsdale and Paradise Valley. There are more than 16,000 rooms and 86 resorts
    in the immediate area (Scottsdale 2015) and economic analysis suggests that an overnight vis-
    iting travel party arriving to SDL by private jet will spend an average of $5,255 during their stay
    in the area (SCC 2015).

    4.4 Relievers on the decline

    Glendale Municipal is located in Glendale, Arizona and was established in 1987. GEU covers
    720 acres and maintains one active runway. GEU is the least active reliever airport in the
    Phoenix region (Table 2), with less than 82,000 tower operations in 2015. The University of
    Phoenix Stadium is located in Glendale (home to the Arizona Cardinals, a professional football
    franchise) and the stadium plays frequent host to major sporting events, including the Copa
    America Centenario soccer games (June 2016) and major college football games (e.g., 2011

    6 All of these enplanements are tied to charter airline operations.

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    NCAA Championship). Recent strife at the airport, including a major lawsuit from pilots, sug-
    gests that GEU is both poorly managed and unpopular with local pilots (McGlade 2014). The
    most recent economic impact statistics for GEU (Glendale 2002) are extremely dated, but sug-
    gested that its direct, indirect and induced economic impacts exceeded $52 million annually,
    generating 516 local jobs, a payroll of $15.5 million and $36.7 million in sales.

    5 Discussion – expanding and synthesizing views on relievers

    The examples from the greater Phoenix region make clear that reliever airports are embedded in
    multiple spatial, political and economic frameworks that sometime draw contradictory views.
    Although the case studies presented for Phoenix are somewhat limited in both scale and scope,
    it is important that readers view them in the broader context of reliever airports nationwide. Spe-
    cifically, while AZA, DVT, CHD, FFZ, SDL and GEU are local to the Phoenix metropolitan
    area, they are part of a much larger, nationwide network of general aviation ports that provide
    both a foundation for regional economic and transport activity (usually evidenced by positive
    regional economic modeling results). However, many relievers in the United States, including
    some of those found in the Phoenix area, can also become targets of criticism. As a result, re-
    liever airports, can be assessed from a variety of aviation and non-aviation perspectives, based
    on factors both on and off the airport grounds. In an effort to synthesize the reliever experience
    here in Phoenix, and beyond, it is important to succinctly summarize both the promise and peril
    of reliever airports in broad strokes. We recognize that each reliever airport and their associated
    community, will have some local quirks that make their site and situation unique. However,
    there are a handful of themes which are emergent, regardless of location, reflecting the current
    mix of thinking on reliever airports in the academic literature, gray literature (e.g., newspapers,
    community development reports, etc.), by practitioners in the field and the case studies
    presented above.

    Specifically, reliever airports promise to:

    1. act as important nodes in the US’s overall aviation infrastructure as origin–destination points
    for many types of operators;

    2. clear some traffic from busier ‘hub’ airports, potentially increasing regional air transport
    efficiency (Lindsay 2005);

    3. reflect trends in GA and private air transportation in the nation and within their regions
    (Adams 2011);

    4. provide a site for organizing emergency and other public service aviation activities (Eisler
    2005; ACRP 2008);

    5. support, many aviation-related enterprises that related or linked to the civil air network
    (Mulliger 2016);

    6. generate economic multiplier effects which provide benefits that go beyond the airport itself
    (ACRP 2008; FAA 2015a);

    7. provide potential catalytic effects on regional productivity (ACRP 2008);
    8. promote tourism (Chambliss 2011); and
    9. provide a land use for which new alternatives are extremely difficult to site.

    At the same time, relievers may become lightning rods for criticism on many grounds. While
    these would differ substantially by region and context, they include:

    1. excessive noise in and around the airport region (ACRP 2008; Blake 2008; Remmers 2015);
    2. enhanced traffic or road congestion in and around the airport region (Remmers 2015);

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    3. ineffective or inefficient use of funds (high opportunity costs);
    4. ineffective or inefficient use of lands (Divine 2015; Olson 2004);
    5. ineffective or inefficient relative source of taxes (Eisler 2005); and
    6. ineffective or inefficient management / regional integration (Glendale 2002).

    In sum, when evaluating the potential impacts of reliever airports in a community, the rela-
    tive importance (or weight) that is given to both the positive and negative aspects of a facility
    and its operation might vary between communities, but the factors considered likely reflect a
    combination of those detailed above.

    Within this context, it is important to reiterate that reliever airports are strongly enmeshed
    within a city’s socioeconomic, demographic and infrastructural fabric. As detailed previously,
    the vast majority of reliever airports were designed and built at (or beyond) a city’s
    ‘perimetripolitan bow wave’ (Hart 1991) – close, but not too close. Strategically, this made good
    sense because relievers were located in places where they could perform their roles with mini-
    mal negative externalities to their local community, but were proximal enough to add economic
    benefits and provide the necessary decentralizing function(s) to the larger city’s air traffic. How-
    ever, metropolitan areas are dynamic and this dynamism can gradually change the context of re-
    liever airport locations. For example, as local and regional land use pressures evolve in major
    metropolitan areas, divisions can emerge between various constituencies as airports’ uses and
    function are contemplated for the future. This is especially salient for reliever airports, which
    are often one of the more visible and/or high profile facilities within a community (Eisler 2005).

    Consider, for example, the impacts of growth pressures in a community where suburban de-
    velopment has pushed into the frontier and toward a once, relatively isolated, reliever airport.
    For these newer residential areas, noise suddenly becomes an important element of an airport’s
    regional perception. According to Nelson (2004), residential property values decrease by almost
    0.6 per cent per decibel of noise (when proximal to an airport) in the United States. Although
    this finding is not consistent (Lipscomb 2003; see also, ACRP 2015) between areas, noise is un-
    doubtedly one of the core issues relating to airport operations, development and quality of life
    for most communities in the United States and elsewhere.

    These interrelated views – one towards the relievers’ air network functions at various scales
    and the other towards their integration within their regional and local communities at various
    scales, coupled with the priorities of local constituencies – form the context within which the
    development of research on relievers both generally and within individual cities can move for-
    ward. Importantly, while economic impact studies form the basis of many arguments regarding
    the benefits, need for, and usefulness of reliever airports, they may not necessarily be the ‘last
    word’. Understanding the operational nature of reliever airports, as well as the political climate
    of communities they are located in is also absolutely essential.

    6 Conclusion

    As detailed in this paper, reliever airports can take many forms, serve many functions and have a
    wide variety of impacts in their communities and regions. The Phoenix metropolitan area and its
    reliever airports are illustrative of this diversity in form, function and impact. Not only does
    Phoenix have a major international commercial airport (PHX), it is also home to a booming
    regional airport that has increased its role in commercial aviation (AZA) and a robust group
    of traditional reliever airports, including the busiest reliever in the United States (DVT).

    However, it is important to reiterate the context of the Phoenix case study, in that it may not
    be directly generalizable to all cities or their experiences with reliever airports. As mentioned
    previously, the local metropolitan morphology is not dramatically different from places like

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    Dallas/Fort Worth, Denver or many other large urban complexes in the Sunbelt, particularly
    when evaluating the geographic distribution of reliever airports. However, the relative strengths
    of Phoenix in the domains of commercial, corporate and general aviation, as well as the pres-
    ence of multiple flight schools, aviation manufacturers and a large air force base in the region
    make it somewhat unique. To some extent, this may obfuscate some of the local challenges
    faced by suburban communities and their reliever airports in/around Phoenix, but it does not
    render the metropolitan area immune to airport development problems. For example, noise gen-
    erated by new FAA mandated flight paths for PHX remain a serious concern for many
    neighbourhoods in the metropolitan area, and residents are going to court to lobby for changes
    in the air traffic management for the region (Goth 2017).

    From a development perspective, it is also clear that within the current aviation environ-
    ment, Phoenix’s collective airport system provides substantial economic benefits to the region,
    with the impacts underscored by a suite of diverse input–output studies (Glendale 2002; ASU
    2014; SCC 2015; FF 2016; CAC 2016). While these studies can be coarse, such metrics are crit-
    ical. They represent fundamental economic arguments for the continued operation of the airports
    from a cost–benefit perspective and can be used both in time-series as well as in geographic
    comparisons (with other regions) to provide a sense of on-going changes, methodological
    opportunities, and prospects for discovering new for aviation-community linkages. Yet there
    is no doubt that Phoenix too will face difficult development questions pertaining to its reliever
    network in the future. In particular, issues pertaining to who exactly reaps the benefits (e.g.,
    employment, product movement) versus those that pay the costs (e.g., noise, congestion) from
    reliever airports may soon emerge as the Phoenix area continues to grow. More importantly, as
    with most spatial problems, it is likely the two groups will not be one and the same.

    Land use, safety, and sustainability may also form the backdrop for other concerns over
    the future use and management of reliever airports both in Phoenix and across the US. It is
    already clear that some regions see the very existence of an airport in close proximity to a
    CBD or suburban development as a tremendous opportunity cost that might be ‘paid’ through
    the land use conversion of airport properties into parks, residential units, or commercial areas.
    Where arguments for safety and sustainability are both compelling and actionable, opportuni-
    ties for re-location are attractive, although the process for decommissioning and converting the
    airport will take many years. The ability to balance economic development and urban
    growth, with issues of sustainability, safety and concerns regarding noise are not limited
    to Phoenix, as many communities, including Boise, Idaho (Loughrey 2017), Longmont,
    Colorado (LTC 2017), Santa Monica, California (Croft 2008; City of Santa Monica 2017;
    Weikel and Smith 2017) and Portland, Oregon (Sparling 2017) are also attempting to find
    an appropriate balance.

    The review of reliever airports and the case study of Phoenix has suggested many of the
    positive aspects of having a strong regional airport system. The benefits accrue widely. Yet
    the questions that surround the future of reliever airports in Phoenix and elsewhere will no doubt
    multiply over time and involve political and economic arguments of tremendous complexity.
    The relative paucity of systematic research to date into both general aviation and reliever
    airports is somewhat odd given the volume of GA flying, the sheer number of reliever airports,
    and the (occasionally controversial) impact of both. This leaves significant opportunities for
    future research along at least two tracks. First, it is essential to more thoroughly document the
    role of reliever airports’ aviation functions. This includes both current uses and potential options
    for future roles in metropolitan, regional and national plans to effectively handle air transport
    demand. Second, ‘from the ground’, the impact of relievers on urban morphology will have
    to be more adequately accounted for along the lines of land use, economic growth, and commu-
    nity planning. Ultimately, as is often the case, a third research track – one that synthesizes both
    perspectives – may prove most fruitful.

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    Resumen. Los ‘aeropuertos de alivio’ constituyen un grupo especial dentro del Plan Nacional
    de Sistemas Aeroportuarios Integrados (NPIAS, por sus siglas en inglés) en los Estados Unidos.
    Establecidos en la década de 1960, el propósito de los aeropuertos de alivio fue el de desviar
    hacia ellos el tráfico aéreo de carácter general de los aeropuertos principales congestionados
    situados en las áreas metropolitanas más grandes. Con el tiempo, muchos de estos aeropuertos
    evolucionaron para pasar de simplemente aliviar la congestión del tráfico aéreo local a funcionar
    como polos operativos y económicos para las comunidades a las que sirven. El propósito de este
    artículo es poner de relieve el desarrollo de la red de aeropuertos de alivio en los Estados Unidos
    y examinar su papel (actual o potencial) dentro del sistema de transporte aéreo en general, así
    como en las regiones asociadas a las que sirven. Específicamente, se trabaja en un estudio de
    caso del área metropolitana de Phoenix (Arizona) y su red de alivio. Los resultados sugieren
    que aunque muchos aeropuertos de alivio están destinados a cumplir su propósito original, otros
    pueden gozar de la oportunidad de diversificar su forma y su función.

    抄録:抄録: リリーバー空港は、米国におけるNational Plan of Integrated Airport Systems
    (NPIAS:国家空港総合整備計画)が定める特殊な位置づけの空港である。これは、ゼネ
    ラル・アビエーションの航空交通を大都市圏の主要な空港の混雑から分離する目的で
    1960年代に設立された。リリーバー空港の多くは、現地の航空交通の混雑を緩和する
    だけであったのが、時間の経過とともに現地コミュニティにおける運用と経済のハブ
    の両方として機能するようになった。本稿の目的は、米国におけるリリーバー空港の
    ネットワークの発展を明示することと、より大きな航空輸送システムおよびその空港
    に関連する地域における役割(既存の役割と潜在的な役割)を探索することである。具

    体的には、アリゾナ州のフェニックス大都市圏(Phoenix Arizona metropolitan area)
    とそのリリーバー・ネットワークについてのケーススタディを実施する。結果は、多
    くのリリーバー空港が元来の目的を果たすだけであるが、一部の空港には形式と機能

    を多様化できる機会がある可能性があることを示す。

    doi:10.1111/rsp3.12091

    © 2017 The Author(s). Regional Science Policy and Practice © 2017 RSAI

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