University of Tennessee, Knoxville

TRACE: Tennessee Research and Creative

Exchange

Masters Theses Graduate School

8-1977

The Socio-economic Impact of the Airport Upon the Community

Alfred F. Eaton Jr.
University of Tennessee - Knoxville

Follow this and additional works at: https://trace.tennessee.edu/utk_gradthes

Part of the Aviation Commons

Recommended Citation
Eaton, Alfred F. Jr., "The Socio-economic Impact of the Airport Upon the Community. " Master's Thesis,
University of Tennessee, 1977.
https://trace.tennessee.edu/utk_gradthes/3068

This Thesis is brought to you for free and open access by the Graduate School at TRACE: Tennessee Research and
Creative Exchange. It has been accepted for inclusion in Masters Theses by an authorized administrator of TRACE:
Tennessee Research and Creative Exchange. For more information, please contact trace@utk.edu.
To the Graduate Council:

I am submitting herewith a thesis written by Alfred F. Eaton Jr. entitled "The Socio-economic
Impact of the Airport Upon the Community." I have examined the final electronic copy of this
thesis for form and content and recommend that it be accepted in partial fulfillment of the
requirements for the degree of Master of Science, with a major in Aviation Systems.

Raymond S. Sleeper, Major Professor

We have read this thesis and recommend its acceptance:

Accepted for the Council:

Carolyn R. Hodges

Vice Provost and Dean of the Graduate School

(Original signatures are on file with official student records.)

To the Graduate Council:

I am submitting herewith a thesis written by

Alfred F. Eaton, Jr. entitled ''The Socio-economic Impact of
the Airport Upon the Community." I recommend that it be
accepted in partial fulfillment of the requirements for the
degree of Master of Science, with a major in Aviation
Systems.

��P rofessor

We have read this thesis

and recommend its acceptance:

Accepted for the Council:

V1ce Chancellor
Graduate Studies and·Research
U.T. Archives

lies;�
11
.F�f?

. .
THE S OCIO - ECONOMIC IMPACT OF THE AI RPORT
.. . . .
UPON THE COMMUNITY

· . A The s i s

Pre s ented for the · ··

Mas ter o f S c i�nc e

Degr e �
. .
· The Unive r s i ty o f· Tenne s s e e, Knoxv i i i e

A l fr e d F . E a ton, Jr .

Aug us t . 1 97 7

.1328448
 AC KNOWLEDGMENTS

The autho r wou l d l ik e to expr e s s h i s app r e c i a t i on to

a numb e r o f . p e op l e fo r the ir a s s i s t an c e in th i s·wo ik . He i �

.

. . .
e sp ec i a l ly �t�t etu l for the p a t i enc e , gu idant e� and

a ssi s tanc e of Profe s s o r R. aymond· s S l e ep e r , and the a id and

..

.
gtii�ance o t Dr . Ro b e r t L. Young and Dr . Maur i c e A · . Wr i g ht .

Re c o gn i t i on i s-g iven al sq to He l en Mas o n fo r her

inva l uable a s s i s t a nce in track ing down many ob s cu r e

· r e f e r enc e s .

Fina l ly , a s p e c i a l thanki to the many a i rp o r t

manag e r s w i th whom the autho r ha s c o m e in contac t f o r

. .

the i r though t s and i d e a s , e s pe c i a l ly S t ephen S chmi tt and

Edwfn Thurmond.
 ABSTRA C T

The purpo s e o f th i s s�udy · was to . ana ly z e the s o c i o ­

eco.nom i c impac t that an · a i rpo r t ha s upon a community and to

deve l op·a me thod of d e t ermin ing tha t impac t su i t abl e for

us age by an a ir po r t manag er .

D a t a i s pr e s ented wh i ch i l lu s tra t e s the · magn i tude

and · s c ope of the s o c i o-�c bnomfc · i mpac t of an a i rport . The
var ious me thods of ana ly z ing thi s impa c t are d i scus s ed .
F inal ly," a me thod o f det ermining the impa c t, <:le s i gned fo r
a irp��t manag e r s , i s pr e � ent ed .

S ome o f.the mai n conclus ions o f the r e�earch are a s

fo l lowi : tha t i t i s very dif f i cul t t o mea s ur e the t o t al
s o c i o - ·economi c impac t o f an a ir po r t upon the c ommun i ty, bu t a
u s e ful e s t i�a t ion o f the magn i tude c an.b e o b t a iried ; that a i r - .
port s, w i th a l l facto r s c on s ide red; genera l ly impac t upon a
. .

·commun i ty in a favo rab l e manne r ; that the ava i l abil i ty o f

a ir s erv i c e i s a n impor tant d e t erminan t o f � c�mmtin i ty's
g r owth r a t e; that the pr imary d i s - b enef i t s o f an a irpo r t ar e

e co l o g i c a l o r enyironmental i n nature ; and that a g o o d ,

ac t ive pub l i c r e l a t i on s P !Og r am i s a n ec e s s i ty .
F inal ly , i t is r e c ommend ed that airpo r t managers
pe rform impact . s tud i e s on all a i rpor � s under th e i r coritro l .

iii
 .
TABLE OF -CONTENTS .

CHAPTER · PAGE
.I. I NTRODUCT I ON . . 1

I I. WHAT . I S GENERAL AV I AT I ON ? . 6

De f i n i t i_o n . . . . . .· . 6

T h e S cop e · o f qene ral Avi a t ion . 7

· G en e ral Avi a t i on ' s Ro l e in Bu sine s s . . ·g

. Summary . . . . . . . . . . 21

-I I I • . THE RE LAT I ONSHI P B ETWEEN NEW JOBS AND

ECONOM I C- GROWTH FOR THE COMMUNI TY 23

I n tro duc t i on . . . . . 23

. I ndu s t� ia l i z � t ion of �ur al Co unti e s 26

. The E f fe c t s o f New Job s in Me tropol i tan

Ar e a s . . 31

The Cos t s o f Indu s t r i a l Growth . 36

I V. THE LARGE AND MED I UM HUB AI RPORTS ' S O C I O ­

E CONOM I C IMPAC T U PON THE COMMUNI TY :

AN OVE RVI EW . . 40

I n t r o duct i on · , . . . . .. 40

Pr imary S o c�o�e conom i c Imp ac t

(A irpo r t - Sp e c i f i c ) . . . . . . . . . . . . 47

S e condary S o c io-e c onom i c I mp a c t s

(Ai rpor t-Re l at e d ) . � . . . . . . . . . . 52

T e r tiary S o c i o - e conom i c Imp ac t s

. . . . . . 53
. (A i rp or t - I nduc ed) ' . . . . .

iv
 v
C HAPTER PAGE
Other S o c i o-e c6nomic Impac t s . . . . . . . . . . 54
.
V. THE . SO C I O .. E C ONOMI C IMPA C r" O F SMALL , NON - HUB,

AND G�NERAL AVI AT I ON A I RPORTS 62

I n t rodu c t i6n � .. .
. . . . . .. . . . . . 62
..

Pr imary Soc i o � econom i c Impact

(Airpor t�Spe�if ic) , · .. . . . . . . .
. . 63
S ec ondary S o�i o-ec onom i c I rnp�cts
. (Ai r port-Reiat e d) . . . . . . . . . . 65
· Tertiary S o c i o-ec_ o nom i c Impact s
(Airpor t-Induc ed) . . 65
O the r . S oc i o-economi c Impac t s . 66
At t r a�t ion o f n�w indu s try . a�d expans i ori of ·
pr e s ent indus try . . . . . . . . . . . 66
L and va lu e apprec i a t ion in.pr o�imi ty

to airpo r t s • . . . . .
. . • . . . 82
.
Mii� � l l�neou s b ene f i t s prov�ded . by the
c ommun i ty a i rpor t . . . . . . . . . 84
The Oh i o County Ai rpo rt Program 89
A Rev i ew o f S om e o f the D i �-b ene f iis of
Ai rpor t s . . . . . 94
VI, MEASURING THE SO C IO�ECONOM I C IMPACT OF AN

A I RPORT UPON THE C OMMUN I TY · . . . . . 96

I n t roduc t i on . .. • 41 • • . . 96

A R ev i ew o f the Methods U s ed · in S oc i o ..

e c onomi c Imp a c t Evalu a �ion . . . . . . . . . . .

. . 99
 vi

CHAPTER PAGE

A Me thod of Impac t Analys i s fo r ·

Airport Manag ers . . . , . . . • . . . . 112

. . .
VII .. THE ROLE OF A P UBL I C RELAT I ONS PROGRAM· . . 133

I ntroduct ion . . .. .. ' ' . . . . . . 133

The Ro l e, · . �· • • • ' . .. . . . . . ' . 133

S umma ry · , . , . ·• . . . . ,. . . . . . 136

V I II,· CONCLUS I ONS AND RE COMMENDAT I ONS . . .

.. . 138

C onclusions . . , . . . . . . . . . . .
. . . . . . 138

Re commenda t ions . . . . . . . ' . . . . 143

Conclud�ng Remark� . • • • • • • • • • • I
144

B I BL I OGRAPHY . . . . . . . • • 14 7

V I TA . . . . . .. . . 153
 L I S T'OF TABL ES

TABLE PAGE

1. E s t ima t e d Ac tual Hours F l own ·in General Av i a t i on

by Typ e of Fl ying (Tho·u s ands of. Hour .s ) [6 ] .. 8

2.
' .

Numb e r o f Busines s ·A i r c r a f t · by Type , 1 9 7 4 [ 8 ] 10

. '

3. · Ne t . I nc ome a s a P e rc�n t o f S al e s

(Af ter T �x e s ) [1 0] • . . . . . . . . . . . . . . . 15
.
4. Aircr a f t u · s t( Ac co r d ing to Bu s in e s s Func t ion , ·
.
·

1 9 7 4 , by P e �c entag � [1 2 ] . . . 17

5.- E s t ima t e d P e rc ent o f Bu s i ne s s F l ight s by

· �Airp o r t C a t egory [ 12] . . . 19

6. E s tima t ed A i rc raft Cont r ib u t i on t o.Cornpany

S a l ·e s [ 1 2 ] . .
.
. . . . . 20

7. · Manufac tur ing Emp l oyment , l9 6 0 and 1 9 7 0 [ 1 4 ] • 28

8. Emp l oyrnent . Chang e s in the Non -manu fa c tur ing

S e c t i on w i t h the I n tr o duc t io n o f ·1 0 0

.Addit i onal Manu f ac tur ing Job s ' [ 1 4 ] � . 29

9. U. S . Chamb er · o f Commer c e . E s t imat e o f

Add i t i 6n a l · Re t a i l · S a l e s . V6 lume D i s t � ibu tiori

. Re su l t ing from the I ntro du ct i on o f 1 0 0 New

Manu fa c tur ing Job s [1 4 ] . . 30

10 . Cha�g e s Be tw�en 1 9 6 0 and 1 9 7 0 in Count i e s Which

I ndus t r i ali z ed and Counti e s Wh ich d i d no t

Indu s t r i a l i z e [1 4 }. ·· . . .
32

v:li
 vi i i
. TABLE PAGE

11 . Chang e s B e twe en 1 960 and 1 9 7 0 in Metr opo l i t an

Ar ea· s wit h. Gr e at e r and L e s s e r Emp 1�yrnent

Growth l l 4 ] . , . , . • .. . . . . . .
.
.
· 35

12,. B e nefi t/Cos t Ra tio s fo r Bu s ine s s A � tivit {e s in

Montg omery C ounty, ·Maryl and ·[IS]. . . . . 38

13 . C omp ar i s �n of 1 9 7 4 Financ i a l Re�ul t s -.�Airpoiis

Enp l an ing Over Two �i l1ion P a s s eng e r s

(Amoun t s i n Thous an<:J.s) [ 1 7) . . . . . 41

· 1 4, . Compar i s on of 1 9 7 4 Financ i al S ta t i s t ic s - ,.Airp or t s

Enp l an ing Over Two · Mi l l i on Pa s s eng e r s

(Amounts in Thou s ands) [ 1 7 ] . . .4 4

.
1 5. Ec onomi c Vi ab i l ity o f A i r Carr ier Airpo r t s

( 1 9 69�19 7 1 F i nanc i al Dat a in 1 9 7 3 D o i l a r s ) [ 1 7 ] . . 46

16 . Ab ili ty of Ai rp o r t s t o Me e t Op e r ating Exp en s e s

and Deb t s��vic e Co s t s w i thout Lo c a l Gov ernment

T ax Supp o r t (1 9 6 9 ,.1 9 7 1 Financ i a l D a t a) [ 1 7 ] 48

1 7, Dir e c t Emp l oymen t and Annual Payrol l of Air

Carr i er A i rp o r t s . . . . . . . . . . . 50

18. P r i mary E�pnom ic Imp a c t . o f the San Jo s e A i rp o r t

o n the Marke t Are� i n FY 1 9 7 2 [ 2 ] . . . . . . . 51

1 9.· · R�p r e s en tative. Figur e s for I nco�e Der ived from

C6nv en t i on and Tour i s m Bu s i �e s s [1 9 ] . . . .. . 56

2 0,. A Summary o f the Econom i c I mp ac t b y the S an Jo s e

Airp o r t Upon the Marke t Are a [2] . . ·· . .. . . . . 59

 ix

TAB LE PAGE

21. Compar�t�ve Ra t irig s fo r F a c t o r s Rela t e d to

Growth [ 24 ] . 71

· 22 . P r i �c i p a l Co s t s and B en e f i t s t o b e Con s i d e r e d in

A i rpor t · P l ann in� [4 4 ] . . • i03 .

' .

23 . ��ckg round C en su s In format i o ri . . ·: . . . . . . . 114

24 . P e r s o nal I ncome by Maj o r S ourc e s ·(P e rtent· of

To t a l P e rso n�l I n c o m e)_. • . . . . . .· . 1 15

.. .

25 . Emp loyment D i s t r i bu t io n by · I ndu s t r i � l

S ec to r . • • · . . . . . . . . . .. . 11 6

26 . G e n e r a l A i rp o r t Data . . . . 117

27 . Tax L o s s C a l cu l a t ions , Un impioved L and (B a s ed on

P r e s en t Tax Ra t � and As s e s s ed Vaiu e) . . . .. 1 18

28 . · Qu e s t i onna i r e fo r Add i t ional Ai rp o r t Data . . . 119

29 . P e r Cap i t a I ncome and Per c e n tage D i s tr ibu t i on

fo r F arnili�s . • 4. • • " . . . . . . . . . 121

 .
CHAPTER I . ·

.
INTRODUCT I ON

An a i rp o r t; a s d e fine d by Web s t er's N ew World.

..
Dic t i onary [ 1 ] , 1. 1 s :

. . . A plac· e wh e r e a i rc raft c an land. and take o f f ,

usually _ e qu ipp e d wi th hang a r s , fac ili tie s f o r
r e fueling and r epa i r , var i ous ac commoda t,ions ·fo r
p ass enge r s , e t c .

Th i s d e f i n i t i on i s tec h�icall y c o r r e c t , bu t s o�ewhat b r o ad . ·

·
I n ac � � ali �y· , a.n a i. rpor· t niay b e · an· unatt e;nde d , le ·s s - than-

2;0 0 0 - foot-long p i ec e o f fla t ·ground wi th no one liv1ng ·or

-· wo rking ther e or � t may_b e . � larg� g e og r ap h i c al �r e a , in

fac t , a c i ty , the s i z e o f Manhat tan I s land , b i s e c t e d by

t�o -m ile long runway s and g e n�r a t i ng a half - b illion dolla r s

i n ec onom i c impac t on t h e surround ing_area .

F rom one extreme to the other , or any o f the

. hund r e ds of varie t i es i n b e tween , a i rpor t s hav e proven to b e_

of tremendou s b en e f i t to _the communi tie s th ey s e·r ve . Many

of the coinmun i ty ' s c i t i z ens c an , d i r ec tly , or indir e c tly ,

tr ac e a small p e r c ent a g e of the ir incom e to the a i rpo r t .

O the r s a r e b e ne f i t e d by the � o c i al , · cul t ural . and me d i cal

opp o r tun i t i e s ava i lab l e b e caus e of the a i rpo r t .

An a i rpor t may b e like any o the r_bus i ne s s, o r even a

c_i ty ; . i t g ener·a t�s · ·. employm e n t , pays s al.ar�e s , make s

1 Nu� b er s i n b racke t s r e f e r to. s im i la .rly numb e r e d

.
. r e f� r en�e� in the B ibli o g r aphy .
1
 2

exp �nditu � e�·fo r lo c al g o o d s and s ervi c e s and pay s t axe s .

The �i rpor t als o.ha s a clo s e �ela t i onship wi th o the r

· i ndtis t r i e s in the co�muni�y whos e level o f bu s in�s s a c t ivi ty

.
. . is par t i aily de�e n�ent up�n the a i rpor t. Ho t els , �o t els ,
trave� a g e nci e s , co� s t ruc tio n f irm � , �hole s ale r s , and manu ­

fac turing indu s trie s who s e go ods r e ach new mark e t s via the

· a i rpo r t� all pr o f i t fr om art a i rpor t in the i r v i c i ni ty . Mo re

· ·and mo � e , howeve � , a �rpo r t� are · acquir ing the char acter - · ·
.
i s t i c s ·rif c i t i�s--air cit i e s . · O ' Hare I n t e rnaiiorial Ai rpor t

.i n Chi c ag o is a ·. g o od examp � e o f s uch. a phenomenon. The a i r­

.
p o r t ha s b e c ome the c entro id 6f impo r t ance t o the area and

thi s ha s b ec ome the.nucleu s o f an informal c i ty .

Glenn Plyma t e [ 2 ] o f the B � chtel Corpo ra t i on li s t s

· four irit errela t e d e conomic imp�c t ·levels which sho�ld b e

c o n s ider ed i n an a�alys i s o f thi s subj ect . Brie fly , they

ar e:

·1. Pr imary e conQm i c imp a c t ( a i rpo r t - s p e c i f i c)�

2. S e c on�ar � � c6n6mi� imp•c t s ( a irpor t - rela t e d ) .

3 . . Terti ary econom i c imp ac ts ·(a irpor t�induced) .

4. Other e co nomi c imp ac t s .

The s e four levels will b e de fined and d i s cus s ed in lat ef

chap ter s.

The a i rpor t rif t o d ay i s a . g a t eway tti · the world.

H i ghway s or railr o a d s requ i r e mile s · .and mile s · of cos tly

. .

r i ght - o f - way acqui s i t ion. A. 10 0 - mile highway or ra ilway

linking two citie s is ·o f high value to · the two c i t i e s and to

 3

nearby inte .rven i ng ar ea s · bu t gener ally o f ·l e s s o r no

i nter e s t to the re s t 6f the r eg i on �in c e it do e s no t connect

the r e s t o f the r e g i on . An · a i rpor t , on the o t her hand , be

i t . larg e o r smal� ,. is linked to every o t h e r a i rp o r t in the

world , 1 3 �0 1 9 of whi ch � r e in ih� Un i ted: Sta t e s . Mo s t of

· the a i rpor t s in . the Uri i te d St at � � · �r e gen eral av i a t i on ( GA)

a i rpo r t s . Th e i r runway r�qtii r ement s , in many c ase s , can b e

thought o f a s b e�ng l i ke a mile o i ( country) road; i n fac t�

the . money u s e d �o hu i lci' one m ile . of. inter s ta t e . h i gh way

. .

. wpuld pay the coris ttuc t ion co s t of �ix · to e i ght GA a i rpo r t s .

. .

I n community ·a ft er c ommun i t y , · p eople who do no t fly

.
a r e p ay ing the p enalt i e s for inad equat e a irp o t t fac il i t i e s .

Corp o r a t e managemen t , in determin ing plant s i te lo cat i on ,

.
fin d s many c ominun i t i e s offer ing · comp a r able advantag e s and i t
.
i s o f t en mo r e e f f i c i ent to lo c a t e wh e r e the advantag e df a ir

t r avel i s mo s t conv e n i ent .

. Ther e i s mu ch mo r e to the a i rp o r t development than

the c ons t ruc t ion of runway s and hangar s . Airp o r ts hav e

. .

helped ·some towns fulfill their developm�nt plans. These

c ommuni ties hav· e c ome to r e ali z e the P<?t erit i al of. an airpo r t

and h ave exploit ed i t .

That av i a tion i s a s much a p a r t of mo de rn civ i l i ­

z a t i o ri a s i s the r a ilr o a d , s t e amsh ip a � d auto mo b ile a s a

� ea�s of transpor t a t i o n o f b o th fr e i ght and pas s erig e r s i s

· too obv 1ous fo r s e r io u s d i scus s i on . The p l a c e wh i ch

av i a t i on now · o�cup i e s wa s �nv i s a g e d , . �rob�bly in�t i ally , by

 4
Al fre� Lord Tennyson in hi s proph� t i c dream wh ich is found

. re corded in h i� frequently quot ed po em, " Lo ck s ley Ha l l , '· ' ·

.
·when he wro t e [ 3) :
.

For I d ipt into the . future, far a s huma n

.

eye could . s e e , .
S aw . the v is·�<?n . of the wo r�d, and a l l the.
· wonder tha t wou l d be ; _
S aw the heavens f i l l wi th comme r c e
ar gos i e s o f mag i c s a i l s ,
· P i l o t s o f the purpl e · twilight, qr opping
down wi th ·co s t ly b a l e s . ·

S everal �o de�n j tir i s t s h�v e d�pi�t e d . in . abl e,

cog en t.styl� th� p � s i ti6n �h i6h avia t i on ha � a t t a ined . · the·
· l a· t e Ju s t i c e . B . N . Car do z o in the ca s e of H e s s e v .· · - Ra. t h , ·

2 49- N . Y . 4 3 6 , · 1 6 4 N . E . 3 4 2 (i9 2 8 ) , . wro te [ 3 ] : ·

We t h ink the purpo s e �o b e s erved i s bo th

pub l i c and munc ipa l . A c i ty act s fo r c i ty
purp o s e s when i t bu i l d s a dock or a bri dge� . . .
I t s purpo s e i s no t d i fferent when i t bu i ld s an
a i rpo r t . . .. . . Av i a t i on · i s t oday · ari e s t ab l i s hed
me thod of transpo r t a t i on . . � . The city tha t i s
wi thou t the fo r e s i ght to · bu i l d the po r t. s for the ·
new traff i c m��-s o on be l ef t b e h ind in the ia�e
of compe t i tion, � The · · n e e d fo r v i s ion of the
·

fu ture in the g overnance of c i t i e s · has not

. .

l � s s eried w i th the year s . ·The dwe l l er wi thin _. the

g�t e s , even more . than the s tr anger fr om afar, .
wi l l pay the pr i c e �f �l indne s s .
To r e al i z e_ the po tentia l b erie f i t s o f av i a tion r equ i r e s _

imag ina t ion ' v i sion_, g o o d pl ann ing arid a conc erted e ffor t by
_

ded ic a t ed and informe d communi ty leaders . . The k ey to th e

suc c e s s.of an a i rpo r t in toinmun i ty deve l o pment i s the un'd er ­
s t and in i of i t s - po t ent i a l a s a dev e l6p� ent r e s our c � and
put t i ng i t to u s e . Th i s inv e s t ig a t ion w i l l ass i s t the

r e ad e r in und e r s tand ing the s e bene f i t� . W i t h this under ­

s tanding and the . informa t i on p�ovfded in l a t e r chap t er s, the

 5

r e ad�r should b e ab l e t o me a sure the impo r t arice , s o c i o ­

e co nomical ly , of th e a i rpo r t to th e co·mmun i ty. The me tho d ­
o l�gy d e s cr i�ed he r e in i s de � i g ned £o r the u s e of a i rp o r t

Armed-w i th · t h e k�ow l e dg e from thi s anaiys i s , the

- manag ers .
.
r�ader ��oul d th�n b e · �b l e to �e t t er d e t e�min e the mo � t
�ppr o�iia t e pa th for a irpo r t and _ c ommun i ty devel o�ment�
 .
. CHAPTER ·r-I

· · .- WHAT I S GENERAL . AV IAT I ON ?

.

De f in ition

It has b e en shown tha t a i r c ar r i e r a i rp6r ts s e rving

the metropol i t a� a r e a s o f th i s · coun try have a signi f i cant

· i mp ac t upon the l o c al - e c 6 nomy . Of the 1 3 , 2 51 land ing
·
. .
are as _ [ 4 ] i n . th� P�i t ed S t � t e s , a b r eakdown· o f the s e land in�
.

a r e a s s hows : 1 1 , 2 2 4 a i rp o r t s ; 1 , 5 2 4 · helipo r t s ; 35 STOL

p o r t s ; and 4 6 8.�e aplane p o r t s . _Ab ou t . 4 , 6 0 0 ·o f the a iipo r t s

-�r e publi cly o�rie d . w i th �oug hly 6 , 4 0 0 a i rpo r t s open t o ·

public u�e . l4 ] . · The r e ha� b e en a . slight d6wnw�rd trend in

the las t . numbe r s inc e 1 9 7 1 . Th i s i efl��t s problems �ith

'financ ing ; enc r o a "c hment ' manag ement ' n o i s e ' and so fo r th .
·
I t al s o poin t s : t o . the n e e d f o r a goo d · s oc i o - e c onomic imp a c t
_
s tudy and · an ac t iv� "good n e i ghb o r poli c y" · o n the· par t o f

a irpor t m an age�ent .

The r e a r e only 6 5 3 a i rp o r t s , o r ab ou t 5% , tha t are

� erve d by s chedul�d �ir · s erv i c e . [ 5 ] . . Of the 6 5 3 , only 4 0 2,

. o r about 3%, o f the nation ' s a i rpcir t s are ac tually s erved b y

c er t i f i e d a i r �ar r i e r s [6 ] . Mo r eover� s inc e 1 9 6 0�. the.

riu�b e r o f . � i rp o�t s s erved by c e r t i f i e d a i r c arr i e r s h a s

decre ��ed· b y 3 0% while small commun i ty a i rp o r t s have

6
 . 7

incr ea s ed 6 0% [6 ] . The s e sma l l commun i ty a i rpor t s , a l ong

· wi th the a i r ca r r i e r a irpor t s , are s erved by g en e r a l
.
· avia ti on .

One mig h t a s k , wha t i s g en e r a l av i�t ion ? ·I n a p o l l

.
c6riducted b y Opin i on � e s e arch · co rpor a t i on , i t w a s found th a t
.
5 9% cif the pub l ic �u�s t i on e d cou i � no t rec� l l hearing t h e

t erm . Of the 4 1% . who cl a imed to hav e hea�d t h e t e rm , very

few ha d a cl e a� �nde rstand ing · of . i t s intended me �n ing . Mos t

p eop l e .· e�ti� te i he t e rm · g eneral av i a t i on wi th a i r trav e l in

· g �ner a l , · including l arg e s ch�du l e d a ir l in e s .

General avi a t ion can b e · thought of as al l flying

act iv i ty · except tha t of the ce r t ifi e d a i r car r i er s and the

m i l i t ary.· Gene r a l av i a t i on can b e · s u-b d iv id e d into five

main ca t e g o r i e s 6f fl ying : p e r�on�i , bu s ine s s , commerci al ,

ins truct i onal , and s p e c i a l pu rp o s e . The d i s tr ibu t i on of

g e � era l av i�t ion f ly ing hour s by ca t e g o ry fo r s e l ected years

s ince 1 9 5 5 is shown in Tab l e . l . Und er F e de r a l Avia t i on

. .

Adm in i s t r a t ion ( FAA) cl a s s ificati on s , th e bu s ine s s ca t e g ory

subsumes .corporate/executive flight; commercial flying

� ax� , aer i a l app l icat i on , and indu s tr i a l

. .

. compr i�e s a i r

:£l i ght; and , th� ins truct i on a l cl a s s include s tra in ing and

r ental . fl i ght .

'The Scop e o f G ener a l Av i a t i on

Th e g e�e�� i �v i a t i 6n f l e e t r ep r e s en t s 9 8% of the

. t o tal tr an s por t a tion sys t em I7]. I� actual numb er s th i s

amount s .t o abou t 16 4 , 0 0 0 a i rcraft , outnumber ing · a i r carrie r s
 Tab le - · 1 . Es t imate d Ac tual Hou r s Flb�n in Gene r al . Avi a t ion
by Type o�. Flying . ( Thou s ands o f Hour s ) · [ 6 ] .

BUsiness. Jncluding
Total CorEorate/Executive · ·Commercial Instructional Personal . Other
Year Hours Hours Percent Hours Percent Hours Percent Hours Percent Hours . Percent

1955a 9,500 4,300 45 1,950. 21 1,,275 ·13 1,975 21

·1960a b
13,121 5,699 . 44 2;365 18 1,828' ·14 3,172 ·24. 57. (*)
c. 16,733
·1965 ·5,8�7 '35 3,348 20 3,346 20 4,016 24 166 .1
d . 26
l970 26,030' 7;204 28 4,582 18 6,79� 26 6, 896. '577" 2
:1974d 32,475 9�140 28 6,294 19 7,972 25· 8,404. 26. 665 2

a
No .s urvey wa s conduc ted cov e r ing the not e d y e ar . Data fo r · 1 9 6 1 have
b e en revi s e d u s ing a corre c t i on factor bas ed on . · the 1 9 62 . survey 6f a ir craf t u s e
in ·g e ne ral avi a tion .
b
L e s s than 0 . 5% .
c
· Es timated · from FAA Form 2 3 5 0 .
d .
E s t imated from AC Form . 8 0 5 0 - 7 3 .
.

00
 9

ne arly . 70 t o 1 � · By 1 9 So·, the g ene r al av i a t ion fle e t i s

exp ected t o r e ach 1 9 2 , 0 0 0 [8 ] . Pr e s en tly � th i s fle e t

. .
a c c ourit s fo r 79% o � all � i r c r aft fl i ght t ime and 71 % of all

· a i r mile s flown� . The to tal numb er of · p eople carr i e d by

iene r al av i a t ion a ir c r aft �lmo s t �qua i s � ha t . carr i e d by the
.
� ir lines ( �b oui 1 7� million � eopie to the a i rline s ' 2 0 8
. .
.

. .

milli on) [ 7 ] . General av i a t ion a i r c r aft irans p6ri 6ne ou t

of ev e ry t hre e .u. �. int e r c i ty a i r p a s � en g e � s . , The s e a i r ­

cr aft �rov i d e the only a i r link fo r �o re · than 1 9 jOOb of the

naf�on's . inc o rpo r a t e d commun i ties [ 9 ] . Add i t i onaily ,

g e neral · av i at ion s erve s 3 7 9 c i t i e s � wi th popula t i ons vary ing

. fr om . 2 5 , 0 0 0 'to 1 0 0 , 0 0 0 th at do no t hav e a �y other k ind of

ai� s e rv i c e . Iri do ing thi s, g eneral �v i ation a i r c r aft

acc otin t e d fo � le s s than 4 % of the j e t fu el c on�u� ed na tion ­

wide�� h d onli . 7 % . df the to t�l fu el . u s e d fo r.all

tran s p or ta t ion · [ 9] .
.

G e n e r al Av i a t ion ' s Role in Bus in e s i

Business-related flying composes · a significant

p o r t ion o� the ·��t ion ' s g eher al �v i a t i on ac t ivi ty . The

. . .

Na t i rinal · Bu s ine s s Air c r aft As s o c i a t ion (N BAA) e s t im a t e d tha t

�v e� 4 5 , 0 0 0 a i � ciaft are u s e d fo � bu sine s s pcirp o s e s .

Table 2 p r e s en t s a b r ea kd·ow·n by · a i r c raft. typ e . of the

·bu s ines s and g e�e ral . av ia t i on fle e t fo r 1 Q74 .

F o r s ev·e ral ye ar s Avi a t ion Da t a Serv i c e , I nc . ( ADS ) ,

in W i c h i t a , Kans a s , has analy z e d the li s t 6£ the lead ing

l ,OOO . U � s� indu s ��i e s · i den t if i ed by For tune . The e x t eht rif

 10

Table · 2 .• . N.umb. e.r. o f Bu s ine s s Aircr a f t by Typ e · , 1 9 7 4 [ 8 ]

Corporate/Executive All General Aviation

and Business Flrin& Aircraft
''Primary "Primary
Use" Projected Use" Projected
·TyPe.of Aircraft ReEorted Total Re;eorted Total

Jet 940 1,265 1,086 1,771

Turboprop(H) . 214 261 251 ' 352
Turboprop (L) 940 1,299 1,210 1,793
Piston Multi-
engine{H) 257 55i 651 1,546
Piston Multi-
engirte(M) 2,610
. 3,87.7 3,983 6,350
Piston Multi--
engine(L) 5,858 8,197 9,426 13,341
Piston ?ingle
Engine 21,118 29,�03 100,160 152,878
Helicopter 452 811 2,453 5,440
Total 32,389 45,364 11�,220 183,471

No t e :· B e c aus e the p r imary us e ( typ e o f f ly ing )

wa s �o t rep o r t ed for about 3 5 % Qf the a ircr a f t r eg i s­
t er e d w i th the · FAA , the t o t a l numb er of bu s ine s s
aircra ft i s a proj e c � ion .
 11

busin��s·aviation invol�ement by th�se supercorpor�tirins

provides some insight as to the attitude of American

_corpo�ation� · toward general aviation-aircraft· as business

too�s-. _

As in past years, only 9 �7 of the 1,000· corporations

were included· i� -�he study. Cessna, _Beech, and ·Piper

Cranking __ 3_�2, 5 5 9 , an� 743·, respectively) were eliminated

hec�use of the difficult� i� dist�n�uis�ing betw�en product

demonstration air·craft and those used for company business.

Nevertheless, it _is interesting to noie t��t in-terms of

-
sales volume, two of the - companies, Ce-ssna and. P-iper,

climbed in rank. from 444 and 947 , respectively, while the

other maintained its position. The companies ranked by

Fortune are bas�d pn sales volume, in this case, for 1�73.

The -Fortune 1,000 are importarit because they compose a

- significant p9rtfon of America's industry [10].

The:997 industries considered here have 17.5 million

employees, $736 billion in sales, $60S billion in assets,
$4 2 b i l � ion in after-tax net inc�me, and stockholders'

equity of $310_billion. This group accounts for 72% of the

sale� of all u. s. ind�strial corporations, 8 5 % of the .

_ and 8 5 % of the total after-tax net in�ome

employees,

recoided by the �ation's industrial establishment [10].

Of the 9 97 cornpahie�, 448 .can be identifie� as

owning and/or.op�rating busihess aircraft ·as of Janua�y 1,

1974 (91% rif.the top 100 corp6rations. operate air�raft).

�his' r�pres�ni� � 5� increase ov�r -�he 4 2 7 operating

 12
comp an i e s from the previo·u s y e ar . Compan i e s op e r a t ing

. bu s in�s s a i r�r�f t ( in the Fo rtune l , ooo·g roup ) had a t o t a l

of 1,427 a i rp l ane s · and h�l i cop t e r s �. This · al s o was an

increase o f 6 % . . o�er � he · p r i o r y e ar and a 9% incre�s e over
.. .
· the 1972 f i gure . 'Alt hough a i rc raf t-op e r a t ing compani e s we r e

in the mino!i ty , .they h a d 3 5 % g r e a t e r a s s e t s �e r emp l oye e ,

.
wh i l e . s a ies p e r · : emp l oyee were 1 5 % h i gher , and n e t income wa s

64 % ah e a d o f th� no � - op e r ating c o mpanies [ 1 0 ] .

.
. .
the i � t te r · tw(; f i gure s ·since. 1 969 i s � hown in Figs . 1 and 2 .
·
N e t i �6ome i s the · f i nal m e asu re for �every comp any . ·

It i s the s tandard · which mo s t c l ea r l y �emon�t ra tes ·th�

op e �a�irti e ff i c i ency o f a comp any and:de termin e s annu a l

suc c e s s or fai l ure .

To o b t a i n a mo re me an ingful p i c tur e of bus ine s s

av ia tion , ADS s ub d iv i de d t he 9 9 7 induit r i e s into b l o cks o f

1 00 , . b a s ed ·on s a l e s vo lume , and · comp .ared · · n e t income v e r s us

gro s s s a l e s ·wi thin each b l o c k . T�e r e su l t s are �hown in

Tab l e 3, · In e�ery ins tanc e� a ir c r a f t - op e r a t ing c ompan i e s

ou tp er formed the . non - ope rat ing comp an i e s . Lastly, Fig .. 3

pre s � n t s a quan t ita t iv e s ummary comp aring a i r c r a ft-o p e r a t ing

an� ri�n�op e r a t ing comp an i e s in . t h e Fo�t�ne � , 0 0 0 . Al though

oniy 4 5 % o f th e compan i e s op e r a t e buiine s s . a ir cr a f t , the s e

ope��ting comp an i e s aver � g e a 5 9 % advan t�g e o �er non­

.
ope�a tlng comp�n i e s in t e r�s o f t o t a l emp l o ye e s , n e t s a l e s ,

a s s e t s , s to ckholder s ' equi ty, and n e t . income.

It is ·in t e � e s t ing to note the manner in wh ich

bus in e s s e s tit i l i z e t heir aircr�f t. Tab l e 4 i ll u s trate s

 13

0 Business Al.rcraft Operators

0 Non�operating Companies

,-, .
. �· 45
Cl)

1'""4
1'""4
0
Q
t+-1
0
Cl)
40
�
fa ·
g
Cl)

t: 35
'-'

Q)
Q)
>-.
0

� 30
1'""4

�
f-4
Q)
r::l.t
Cl)

25
Q)
......
�
Cl)

. 20

. . .
Years 1969 . · 1970 1971 . " 1972 . 1973 1974
F igur e l, A comp ar i s on o f s a l e s p er emp l oy e e b e twe en
b�s in e s s air�r aft o pe r a t i ng . and non - op erat ing
c omp ani e s ( 1 0 , 1 1 ] ·. .
·
· ··

·
 14

() Business Aircraft Operators

· 0 Non ... operating Companie�

4,000
�
(/)
J-4
as
......
'8.
.....
3,500
.._;

(/)
Q)
�
E-t
$-.!'
Q)
+-'
�
...
� 2,500
�
o .
.....

i-
� 2 ,ooo
-�
�
· S
o·
g.
...... . 1,500
. ·

'+-I
Q)
z

1,000

Years 1969 1970 1971 1972 1973 1974

F igur e 2 , A c omp�ris o n o f n e t inc ome p e r employe� ( af t e r

t axe s ) _ .b etween bus in e s s a ir c raft op era t ing and
.non�op e r a t ing. comp anie s · [ 11] .
 15

Tab l e 3 . Ne t . I nc ome as a P e r c ent o f Sal e s

(Af ter Tax .e s ) [ 1 0]
Rank in Bus 1. n e ss
· ·Fo rtune Air craft Non - operat ing
I,OllO 0;2e r a t o r ComEanies

1- .100 6.5 4.2

1 01 - 2 00 . 5. . 3 . 4 .9
. .

201 - 3 0 0' . 4.9 4.2

3 0 1 .- · 400 5.4 4.8

' 4 0 1- 500 4 . 8· 3.9

. 5 0 1 - .. · 6 0 0 5.5 3.6

601 - 700 7 .7 . 3.3

701 - . 8 0 0 5.0 4.3

801 - 9 00 4.7 4.1

9 0 0 - 1; 0 0 0 5.9 4.5
 �-:- � �� --�-� ��- -� --
100

90

0 0__..0
G -- 0.
.·

70 0
tl)
.....
Q,) · Bus ine� s Aircraft Operators.
fa
60-
�
0

·SO
u
�
0

40
.f.J
r::
. a>
(.)

30
. $-1
Q)
Q..

[!]. . .
20
-- [!] [!] a__ [!]
:· to

Companies Empl oyees · Net Ass et s Stock-.· Net

Sal es ho lders' Income
Equity

Fi gur e. 3 � A quanti t a t ive summary compar i s on b e tween bus ine s s ai rcraft

op erating co mpan i e s and non - op erat ing c ompan i e s in 1 9 7 4 [ 1 1] .

�
0\-
 Tab l e 4 . · Ai rcraft Us� Ac c o r d i ng to Bus ine s s Func t i on , 1 97 4 �
by P e rc en t a g e a . [12] .
.

Executive Managerial .
Sal e s Customer Att endanc e Vi s it s to P ar t s and
Deve l - Tran s - at Branch Pro4uct s Pub l ic Other
Aircraft Type opment portat ion Confer ences Facil ities nelivery Services Uses ·. Total

1. ·Jet . 14.6 9�3 30.9 37.9 o·. 9 1·. 3 5.1 100.0

2. Turboprop ( H) 16.8 14 3
•. .25.0 37.9 1.3 0.9 . 3.8 ."100.0
3. Turboprop ( L) 17.4 9.9 22.7 4 3.8 1.5. 0.8 3.9. 100.0
· 4. Muit i - engine
P i ston(H) 11.9 15.3 . 23 4·
. . 31.1 2.8 0 9
. 14.6 100.0
5. Mul ti -engine
P i ston ( M) 20.8 8.7 25.2 34.0 2.1 0.9 8.3 100.0·
6. Mul t i - engine
P i s ton (L) 29.0 7.7 22.5 24.9 3.7 2.4 9.8 100.0
7. Sing l e Engine
P i s ton 27.9 6.8 19.5 16.8 8.7 3.4. 16.9 100.0
8. Rotor.c raft 5.3 23.6 11�1 32.3 3.1 1.5 23.1 100.0
Total (Averag e) 18.1 11.9 22.4 32.3 3.1 . 1.5 10.7 100.-0

a The tab l e include s th� e s t im a t ed p e r c ent · o f us e o f the a i rc r a f t for

bus ine s s purpos e s only , when the air�r af t wa� c arrying ei ther p � s s eng e r s or
ta�g o .

......
-.....J
 18
a i r�r a f t u s ag e ac�rird ing to · bu s in�s s functidn for 19 74 . The
va s t maj o r i ty of bu s i ne s s avia t i on hour s are fl own to trans ­

·· p o r t p a s s erig er s . Sp e c i f i c a l ly , bus i ne s s a i r craft op e ra t o r s

favo r m�na g e rlal v i s i t s to brahch fac i l - i t i e s , e�ecu t i ve

a t t endanc e a t con�e r enc e s , and s�l e s � e� e l o�ment t r ip s. A

.
su rvey b y NBAA d e t e rmined tha t four ou t o � eve ry ten

bu s i ne s s fl i gh t s t erm iria t e a t a i rpor t s no t s etved by

. ' . �

s chedu l e d a i r l ines . One - ih i r d o� bu s i ne s s f l i ght s end a t·

a i rpo r t s s erved by s c hedu l ed a i r c arti ers for purpo s e s o f

p a ss eng e r o r c�rgo exchan g � wi th c arr i er s . The s e f i gur e s
ar e s hown i n Tab l e .s � The NBAA survey . a l s o d i s covered tha t ,

on the ave r ag e , 3 5 % o f an a i rc r a f t - op er a t i ng comp any's s a l e s

c an b e di re�tly o i indir e c tly a t tr ibu t ed t o the op e r a t ion o f
i t s. a i rcraft ' . Tab l e 6. pr e s ent s the s e f i gure s .

EVen wi th the r e a l i z a t i on tha t the r e sp ons e s to th i s

p o r t i on o f the s urvey are ne c e s s ar i l y subje c t ive , one majo r

conc lu s ion i s ap � ar ent : bu s i ne s s a i rcr�f t owne r s con ­

s � sterit ly ma int a in th� t the i r a i rc r aft contr ibute
sub s t an t ial ly to . c ompany s al e s [12].
The r e ar e s ome o t he r s tud i e s wh i c h d i spute the value
of th e a i rp or t , par t i cu l a r ly a g eneral av i at i on a i rpo r t , to
the . commun i ty . . Typ i c a l of the s e s tud i es is the one done by
O l d Dominion Un iv e r s i ty '[ 1 3 ] ent i t l ed , " G ener a l Av i a t ion and
C ommun i ty Dev e l opment . " The s tudy expr e s s e s a r a ther

negat ive v i ew o f g ene r a l av i a t i on ' s imp o r t ance and contr i -

. bution t o bu s in e s s and commun i ty d evel opmen t . The r e ar e

p r o b a b l y two p�im ary·r e a�o ns fo r th i s �i ew . Fir s t , the

 Tabl e 5 . Es t ima t ed P e r c en t o f Bu s ine s s . Fl ights ·

by A i rp o r t Cat e g o i� [ 1 2 ]
·

� b
Ca t e go ry�--Aa · Ca t-�g � ry B Cat e g.o ·r y. C c · Tot a l
Ai rc raft TyPe (%) ( %) ·

( t _) ( % .)
1 . Jet 3 0. ·. 6 34 . 1 3 5·. 3 100 . 0
2 . . Turboprop (H) ·30 . 5 32 . 6 3 6·� 9 100 . 0
3. Turb oprop (L) ·31 . 5 3 2 . 4: 36 . 1 100 . 0
4 . Mul ti - engine
P i.s ton (H) 18 . 4 42 . 1 39 . 5 100 . 0
5 . Mu lt i - eng ine
P.i s ton (M) 28 . 4 33 . 9
·
37 . 7 100 . 0
6 . Mul t i - eng ine
P is ton ( L ) 27 . 8 32 . 9 39 . 3 ·100 . 0
7. S ing l e Eng ine
P i s ton 24 . 8 31 . 8 43 . 4 100 . o.
8 . Ro torcraft 33 . ·7 2 6 ·. 3 40 . 0 . 100 . 0
T o t a l (Average) 27 . 8 32 . 7 . 39 . 5 100 . 0

a
. To a i rport s / h e l ipor t s s e rv e d by s ch e du l e d a i r carr i er s
( internati ona l , t runk , r e g iona l or c ommu t e r ) to p i ck u p or del iver
pa s s eng e r s or cargo · to s c hedu l e d a i r c a rr i e r s . . ·

b
To � i rpoi t s /he l ip o r t s s e rv e d by _ s c hedu l �d air c�t r i e r s · for
other r e a s ons . · ·

c
To a i rpo r t s / he l ip o r t s n o t s e rved by s chedu l e d a � r car r i e r s .

�
'-0
 20

Tab l e 6 . Es t ima t ed A i r c raft Cont r ibu t i o n

t o Comp any S a l e s [ 1 2 ]

Numoer o£
Compan i e s . Percent
Aircr aft trE;e ReEOTt in& Va lue

1. Jet 1 3 4' 28 . 9
2. Turbopr op ( H ) 19 : 50 . 7
3. Turboprop ( L ) 74 35 . 9
:

. 4 • . Mu l t i - . e ng ine P i s t .o n ( H ) 10 37 . 3
5 . . Mu l t i - eng ine P i s ton (M) 113 32 .1
6. Mu l t i :.. e ng ine P i s ton (L ) 267 36 . 5
7. S ing l e Eng i ne P i s t on 713 25 . 7
8. Ro t o r c r a f t 2 1. 25 .4
To tal ( Ave r ag e ) 1 ' 3 5_1 35 .0
 21
s tudy a t t emp t s to p a i n t the i s s u e s e i ther black o r whi t e

when they a r e ne i th e r . Th e s ec ond r ea s on i s that the s ta f f

.
wh i ch p r e p ar ed t h e s tudy s e ems to lac k t h e s p e c i f i c

exper t � s e r equ i r e� fo r th i s ar e a o f s tudy . F o r th e s e

r e a s o n s and the fa�t tha t the � r eponderaric e o f ev i d enc e

s e ems t o contrad i c t the n e g a t iv e p o s i t ion o f the afo r e �

men t � oned s tudy , the p r e s ent inve s t i g a t ion will dwell o n the

mo r � po s i t iv e . a s pe � ts of g eneral. av i a t i on and i t s r ela t ed

imp a c t s · .

Summa ry

I t has b e en d emo·n s t r a t ed that general av i a t i on a i r ­

c r af t c o mp� s e th e v a s t maj o r i ty o f the c iv i l av i a t ion fle e t

�nd tha t they c on t r ibu t e con s i d e r ably toward the coun try ' s

a i r t r ansp o r t a t i on n e ed s . Mo re imp o r t an tly , bus ine s s

fly ing ha s � s i gn i f i c ant imp ac t upon the na t i on ' s c o rpo ..

ra t i o n s and the manner in wh i ch the·y do bu s in e s s ; · The NBAA

[ 9 ] summ�r i z e s the tang ible b ene f i t s of bus ine s � av i a t i on

qu i t e well i n the i r pamp hle t , ''Th e Bus in e s s A i r c r aft : Key

to Mob il i ty . "

D e sp i t e th e s e v ery t ang ible bene f i t s , t her e

rema ins a gap o f unde r s t and ing c on c e rn ing bu s in e s s
avi � t i on , For ex ample , · in a su rv ey o f an ent i r e
m i d .-we s t ern h i gh s chool s t aff , no t o n e t e a cher could
. c o r r e c tly · d e f ine the t e rm , · ' ' g en eral av i a t i on . " .
The r e i s no way o f calcula t ing the t ime , mon ey , and
opp o r tun i t i e s lo s t to the e c 9 nomy b e c au s e o f la ck o f
informat ion .
Ex e cu t iv e man a g ement u t ili z e s a i rc r a f t t o c om - .
mun i c a t e e f f i c i ently w i th cli en t s and employe e s . In
cus tomer s e rv i c e ( the t e rm i s · s ynonymou s w i th s a l e s ) ,
the a i rplan e i s an inc omp arabl e too l . Sale s to
cus tomers who cou l d no t have b e en acqu i re d . o r
 22
r e ta i n ed exc ept . by a i r .-. b o rne m anag ement , coils t i ...
tute the min imum v alue o f a bus ine s s a i r c r af t .
Th e yalue o f inne r - c o rp o r a t e manag e�ent i s the .
valu e · o f manag eme n t i t s elf . E ff e c t iv e s up e rv i s i on
r e qu i r e s f a c e - to - f ac e c ommun i c a t i on ; g r e a t e r
c o�mun i c a t i on fr e qu ency m e ans . gr e a t e r c ontrol and
p ei fo rmanc e ; i t i s the glu e of the ind ividu all y ... :
owned bus i ne s s o r the mult i - s ta t e , mult i - na t i onal
co rpo ra t i on . Reg ardle s s o f a . c omp any ' s s ale s
v olum e , ne t · p r� f i t i s po s s i ble only through
e f fe c t ive man ag ement .
·

Ad d i tionally , the · f o l lowing le s s tang i ble

b enefi t s o f an a i r c r a f t s hould b e r ecogni z ed :
* L e s s ex ec�t ive fa t igu e .
* F r ing e ben e f i t o f . e f f o r tle s s t rav �l v e r s .u s .
c r owded t e rm in als , inconv e n i en t fli ght s , and
wa i t ing luggag e lin e s .
* F ewer· n ight s · away from �home and f am i ly .
*Ava ilab i li ty o f a sup e t i o r trav e l s e rv i c e
f o r cu s tome r s who s e t ime i s a s valu ab le a s any
· bus in e s sman ' s .
Though s ome time s lab e led ". intang ible , " the
. b e n e f i t s of h i gher_p e r s onnel mo rale , lower
f rris t r a t ion and g �n eral i r r i ta t i on levels , an d ,
ult ima t ely , lower turnove r o f a c omp any ' s mo s t
valhab le employe e s hav e an undoub t e d i f un s p e c i -
f i ed dollar s and c ent s v alue . . F ew thing s
· ·

fru s t r a t e t op grade execu t iv e s a s tho roughly a s

the la c k o f to ols or r � s ourc e s to d o a j ob .
S af e ty ( ac c i dent s ) f e ar c an b e put to r�s t . as
a f a c t o r in the d e c i s ion to u s e bus i n e s s a i r c r a f t .
C o rpor a t e a i r c r aft , pr o f e s s i9n aliy p i lo t ed · in 1 9 7 1 ,
had a f a t al a c c i d en t r a t e about 9 0% lower than
plan e s flown for p e r s onal u s e and r anked along w i t h
c omme rc i al carr i er s hav ing a r a t e le s s than o n e
. ac c id e n t p er fo o , o o o hour s fl owri .
 CHAPTER I I I

. THE RE LAT I ONSH I P BETWEEN NEW JOB S AND ECONOM I C

GROWTH FOR THE COMMUN I TY ·

I nt r o duc t i o n

.
Th i s chap t e r , as well a s t h e las t , i s p r e s ent � d f o r
b a ckground info rma t ion . A go .o d c ompr eh e n s 'i on o f t h e
.
ma t er ial in the s e two· chap t e.r s i s cru c i al to an under ­
.
a
s t and ing o f th e e c onomic imp c t o f an a irp o r t . The wo rld
may b e thought o f a s one g r e a t sys t em made up o f many s ub ­
sys t ems . I t i s very rare , inde ed , when a sub - sy s t em do e s
no t i n s ome way exe r t a n influenc e o n o the r sub - s y s t ems . So
i t i s w i th a irp o r t s and manufac tur i ng plant s . Th i s chap t e r
examine s th e e f fe c t s t hat exp and ing an · � l d plan t or building

� n e� plant have on a commun i ty . Ra th�r th an d i ff e r ­

ent i a t ing b e twe en the bu ild ing o f a n ew pl ant o r the

expans i on of an old plan t , the two c a s e s w ill b e con s i de r e d
.
. s imilar . T h e t erm "new plan t " cons truc t i on will r e f e r t o
· b o th .
When a n ew indus t ry locat e s in a c ommun i ty , the
r e sul t i s a ne t · · add i t i on to income for the a r e a . . The new
piyr �ll dollar s turn ov er many t fme s ( the mul t ipl i e r e ff e c t )
a s th ey pa s s through t h e l o c al mer chan t s and i n t o t h e b ank s.

Th � pla�t may l� c ally purcha s e many g o od s and s � rv ic e s , thus

h elp i�g the loc al . ec onomy t o expand . Th i s econom i c

23
 24
expan s i on i s u su a l l y r � f l e c t e d in inc r e a s e s in popu l a t i6n ,

s choo l enro l l�ent , and o the� - �oncomit an t s o f g ener a l

commuri i �y g r owth .

S ev e � a l at temp t s hav e b e en made to measur e the

qu an t i t a t ive e f fec t s o f a new indu s tr i a l p ayr o i l up on a
commun i t;y ·, Exac t meas urement i s very d i f f i cul t , i f no t
. . impo s s ib l e , b e c au s e -many o the r infl�e�c � s are s imu l t an eou� ly

a t work in th � p a_r t i cu l ar commun i ty .

.
S inc e 1 9 5 4 , the Na t i on a l Chamb e r o f Commerc e ' s
. .

Econom ic Ana l y s i s and S tudy Gro·up ha s a t t emp t_e d to ine a sure

the e ffec t s o f indu s try . · Thei r l a t e s t .repor t , pub l i shed in
1 9 7 3 � s tud i e s e conomic and o the r charig e s o c curr ing in t en
coun t i � s wh i ch b e c ame indus t r i a l i z ed b e twe en 1 9 6 0 �nd 1 9 7 0 ,
a s. contra s t ed wi th ten c oun t i e s wh ich d i d n o t indu s tr i a l i z e

[ 14] . The s tudy al s o inc lud e d 1 2 7 s t and�rd me trop o l i t an

s t a t i s t ic a l are a s . ( SMSA) h av ing g r e a t er emp loyment growth
(b o th manufac tu r ing and rion -manufac tur ing ) , a s contra s t ed
wi th 1 2 7 · areas havi ng l e s s er emp l oyment growth . Th i s s tudy

a l s o c ov� r e d the _ p e r i o d 19 6 0 t o 19 7 0 .

The de si ra b i l i ty and ty� � o f indus tr i a l g rowth i s

a fundam en t a l que s t io n e ach c ommun i ty m� s t an swe r . The t ime

. .
h� s l ong s inc e p a s s ed .w�en commun i t i e s · s ought growth a t any
· co s t . S t a t e and l o c a l g ove rnmen t s ·c an no l onger r e ly on th·e
o� t imi � t i c v i e� tha t a l l g rowth i s b ene f i c i �l p e r � e . Today

a mor e s oph i s t i c � t e d · � o s t/ b �n�f i t ana ly s i s o f indu s tr i a l i ­

. z a t i on tha r a c � er i z e s th � indus t r i a l �eve l opment . effo r t s o f

· many c ommun i t i e s .. · Thi s n ew awar ene s s i s f ound a t· · th e

 25
.
federal l ev e l a s we l l , a s ind i c a i e d bf 'r e c en t l e g i s l a t i on

· a ff e c t i ng produ c t · qua l � ty and s a fe ty , e·n vi ronmental qua l i ty ,

an d o c cupa t i onal hea l th and s a � e ty .
.
i t i s unwar r � n t e d to infe � f �om th i s · any �a lue

j udgfuent on the ie l a t iv� me r i t o f i � dus t r i a l growth . Th i s

qu e s t iqn . i s l e ft up t o the l o cal . .c ommun i ty . S ome o f the
fac to r s invo lved inc lude : the c ommun i ty ' � pr e s ent · env i ron ­
ment al qual i ty ; the cu rrent un emp l oyment r a t e ; t ax b a s e ;

. p opci l a t i on an� p opul a t i on dens i ty ; and s o fo � th . Furthe i ,

the commun i ty mu s t d e c i d e wha t tr end i t woul d l i ke t o s e e
th e s e fa c to r s t ake . From th i s , the c ommun i ty can examine
th� iyp e s o f indus try i t wou ld pre f6r to . have and typ � s it

can a fford t o have . Obv i ou s l y ; a r e s o r t - typ e commun i ty

m ight l ike t o have s everal sma l l , c l e an ( non .- po l lut ing )
f ac t o r i e s . "l o c a t e in t own ; b.ut i t "woul d probably no t want a
hug e s t e e l . m i l l to move in . The mo re a t t r ac t ive the
c ommun ity , howev er ( i . � . , good a i rpo r t fac i l i t i e s , we l l
manag e d indus t r i al parks ·; . amp l e l abor fo r c e , g o o d r e c r e -
. . .

� t i o n a l , med i c a l � and e du c a t i o n a l f a c i l i t i e � f avo r � b l e t a x

. ,

s t ructu r e ' and a.. g"e nera l ly favorab l e env i ronmen t ) ' t h e mo re
s e l e c t iv e it c an · b e in i t s indu s t r i a l r ec ru i tmen t .
E conom ic . growth w i l l s t i l l b e ne eded in the futur e ,
i f on i f t o p rov ide . the m e ans o f m a i n t a i n ing the qua l i ty o f

l ife . Growth c an · al s o · o c cur a s a r e sul t o f t e chno l o g i c a l

· pr�ire � s arid m � r e eff i c i ent u s e of r � s our c e s even · i f · p opu ­

l a t i on t ap e r s off � The r ea l i s sue i s no t growth o r the
 26
ab s �n�� o f g rowth , bu t r � ther the natu r e o f ec onom ic . growth

and the e ff e c t it has up on th � commun i t� ' s qu ai i ty . o f l i fe .

· Th e r e are s eye ral fac t o � s t o b e r ememb �r ed in th i s

an alys i s , F i r s t , every ca s e o f indu s t ri�l d evelopment i s

un i que . Se con4 , n o two · c ommun i ti e s � i l l exp e r i en c e the s ame

.
· e ff e c t s f�o � a new � ayroll . . Thi r d, th� r e l a t i onsh ip b e tween
indus t r i a l g rowth and g en e r al. comrnuni t
. y d eve l o pment is a
"chi cken .. and - eg g " rela t i on s h ip - - i t i s no t po s s ible to · have

· one wi thou t t h e other . Similarly � whi l e ind.u s tr i a l growth

.
s t imula t e s the r emainder of t he lo c al commun i ty , the p r i o r

ex i s t enc e o f the c ommun i ty' w i t h i t � dive r s e s e rv i c e s makes '

irtdbstr i al gr6wth po s s ible [ 1 3 ] .

I ndu s t r i ali z a t i on o£ Rural C oun t i e s

I n the 1 9 7 3 Cham b e r o f Comm e r c e Study , the r e wa s a ·

s trortg · conn e c t i on b e twe en the growth o f indu s tr i al p ayr o l l s

and ch�ng e s in o the r ind ei e s such a s b ank d epo s i t s and

� · r e t a i l s al e s [ 1 3 ] .

The t en c o un t i e s c ho s e n f o r the an a l y s i s m e t t h e

f ollowing c r i t e r i a :

1� Manufa c tur ing emp l oymen t in 1 9 7 0 wa s mo r e than

double t ha t of 1 9 6 0 , with a numer i c a l · inc r e a s e of ov e r

. . . .

1 , 0 0 0 m anufactu r ing employe e s .

2, Manu fa c tu r i�g emp � oyment was . m o r e than 2 0% o f

t'o tal employmen t in 1 9 7 0 �

3, The maj o r emp l oyment chang e b e tween 1 9 6 0 and

1 9 7 0 was an inc r ea s e in manu f a c tur ing· employment .

 27
4. The county was ne i ther a part o f , nor adj acent
to , a me tropo l i t an . area .

5. No mo.r e than on� cou.nty wa s cho s en from any . one ·

s ta t e ,

. The fo l l owing coun t i e s wer e s e l ec t ed for the s tudy :

. . .

Cul lman , Alabama ; B enton , Arkan s a s ; Mon t go�ery , Ken tuc ky ; .

Mc L eod , Minn e s o ta ; DeS o to ·, Mi s s i s s ipp i ; H a l l , Nebr a s ka ;

.
Wayne , No! th Caro l ina ; F l orenc e , S outh Carol ina ; John s on ,
T en�e s s e e · ; an � Hopkins , Texas .
. . . .. .

As a ma t t er o f int e r e s . t ,
e �ch c ouri�y in th� s tudy has at le � s t . one a i rp o r t wi thiri i t s .

b oundar i e s .
To t a l emp l oyment in 1 9 6 0 fo r the t en c oun t i e s wa s .
2 � . 4 % a g r i cu l tu r a l and 1 4 . 8 % manufac tur ing . I n 1 9 7 0 , the
fi gur e s w� r � 1 4 . 8 % ag r i c� l tu ra l and 2 8 . 1 % manufac tur ing .
. .

The manufac tur ing charact er i s t i c s o f the s amp l e count i e s are

·shoWn in· T ab l e · 7 . . The s e t en coun t i e s wer� comp ar ed ag a in s t

t en non � indu s tr i al i zed coun t i e s for c ontro l ptirp o s e s [i 4 ] .
.
For e v ery 1 0 0 add i t i on a ! manufa c tu � ing emp l oye e s ,
th e r e wa s an a c c o mp a n i e d inc r e a s e o f 6 8 non - manu f a c tu� ing

emp l o ye e s . The di s tr ibu tion of the s e emp l oy e e s is s hown in

T ab l e 8 ,
The $ 5 6 5 � 0 0 0 incr e a s e in annua l r e t a i l s � l e s a s s o ­

c i a t ed w i t h e a�h 1 0 0 new manufactur ing wo rker s was no t

. comput � d s ep ar a t e ly for indiv idtial bu s ine s s l ine s ; . however ,

b a s ed on t o tal re t a i l s al e s for the Un i t e d S t a t e s , th e
· chamb er o f C ommerce e s t imat e s the d i s tr ibut i on . a s shown in

T ab l e 9 �
 Tab le 7 . Manufactu r i �g Emp l oyment , 1 9 6 0 and 1 9 7 0 . [ 1 4 ]
of
-- - ------�--- -

-]Jercent
Change in · · Employed -
Manufactur ing Manufacturing · �erson s in
EDlploYment Empl oymen t Manufactur ing
County/State 1960 · 1 970 Number Percent 1 960 1 970

�u l lman ; Al abama 2 , 828 6 , 028 +3 , 200 +113 20 1 .• 32.2

Benton , Arkansas 2 , 725 6 � 639 +-3 , 9 1 4 +144 . 21 ·� 4 35.1
Montgomery , Kentucky 536 1 , 823 +1 , 287 + 240 12 � 1 33.2
· McLeod , Minne sota 1 , 579 3 , 426 +1 , 847 + 117 16.4 31.1
DeSoto , Mississippi 752 3 , 326 +2 , 574 + 342 10.8 29.0
Hal l , Nebraska 1 , 147 3 , 471 +2 , 324 +203 · 8. 7 20.1
Wayne , N . Caro lina . 3 , 041 6 , 271 + 3 , 230 +106 1 3... 5 ' 23.'2
Florence , S . Carolina 3 J 930. 8 � 6 11 +4 , 681 +119 14.3 26.2
Johns�n , Tenne ss ee 347 . 1 , 9 35 +1 , 58 8 + 458 12.8 ' 47.9
Hopkins , Texas 922 1 , 954 . +1 , 032 +1 12 14.2 24 . 7
Total 17 , 807 43 , 484 +25', 677 +14 4 ' · 8
14. 28 . 1
Total for 10 Counties
without Industrial
Growth 7 , 8 76 9 , 030 +1 ,.154 ' +15 15.2 18.0

N
00
 29

Tab l e 8 . Empl oymen t Chang e s i n the N on -manuf ac tur ing

S e c t i on wi t h the Int roduc t i on o f 1 0 0
A�d i t iona1 Manuf actur ing Jo b s [ 1 4 ]

Number of
Ar e a · Wo rke r s

Manu f a c tur ing +100

Non -manu fac tur ing

Who l e s a l e and Re t a i l · Trade +21
Pro f e s s i onal and Re l a t e d S e rv i c e s
. .
:t- 1 7
Tr ans p o r t a t ion , ' Commun i c a t i bn a�d
O t her Pub l i c U t i l i ti e s +11
F inan�e , In s uranc e and Rea l E s t a te +6
Bus ine s s and P e r s onal S e rv i c e s +5
Con s truc t i on +3
O t he r Indus �r i e s +5
 30

· Tab l e 9 . U � S � Chamb e r o f Comme r c e E s t imate o f

Ad d i t i onal Re t a il Sale s Volwile D i s t r i ­
bu t i on Re su l t ing from the Introduc t i on
of 1 0 0 N ew Man� f a c tur ing Job s [ 1 4 ]
Amoun t
($)
. · G r o c e ry Sto r e s 119 , q90 ,
. Mo t o r Vehi cle Deale� s 89 , 0 0 0
· _ Depa r tm ent Sto r e s · · 59 , 000
E a t ing and Dr ink ing Pla c e s 43 , 000 .
· Ga s o l ine Se rv i c e Stat i ons 41 , 0 0 0
Cl o th ing and Sho e Sto r e s 3 0 , 00 0 ·
.
Furn i tu r e , Hom� Furni shi � g s arid H6u s e ho l d
· App l i anc e S to r e s 2� , 000
Lumb e r , Bu i l d ing Ma t e r i al s and Hardware De aler s 23 , 000
Drug 'St o r e s 19 � 000
· . Other Re t a i l St o r e s 11 6 , 00 0
To t a l I n cre a s e i n Re t a il Sale s 5 65 , 0 0 0
 .
31

F ina l ly , Tab l e 1 0 s ummar i z e s the e c onom i c . chang e s

b e tween 1 9 6 0 and 1 9 7 0 for the two · group s of c oun t i e s . The

· t ab l e a l s o · s hows the change s corre sponding to an inc r � � s e o f

1 0 0 . manufac tur ing emp loye e s .

The E f fe c t s of New J o b s· in Me trop� l i t an Ar eas

� ix ty - nin e · p erc ent of the popul a t idn and 7 2 % of the

emp loyment is conc ent ra ted in 2 6 4 me tr ? p o l i t an a r e a s [ 1 4 ] .

B o th p opu l a t i on and emp l o yment inc r e a s ed tw � c e a s fa s t in

me tropo l i tan as in non -me tropo l i tan a r e a s b e twe �n 1 9 6 0 and . ·

'1 9 7 0 .

The 1 9 7 0 popu l a t i on o f the 2 6 4 SMSA ' s ranged from

5 5 , 9 5 9 to 1 1 . 5 . mil l ion . Th e t en � a rg e s t a r e a s we re

e l im ina t ed from th� an a l ys i s b ec au s e :

1. The s e· t en ar e a s have a t o t a l popu l a t ion o f

4 8 mi l l ion , or 3 4 % of t h e popu l a t i on o f al l 2 6 4 ar e a s .

I ncludirig the ten l ar g e s t ar e a s wou ld ob s cur e the . e c oriom i c

chang e s o f many sma l l er a r e a s .

2. Bank depo s i t s of the ten � arg e s t �r eas inc lude
.c ons i d e r ab l e fund s fr om the r e s t o f the Un i t e d S t a t e s and
from the r e s t of the wor l d . Depo s i t s in 1 9 7 0 ave r a g e d

$ 3 , 5 9 8 p e r c ap i t a in t h e t en l arg e s t a r e a s , but o n l y $ 1 , 8 8 9
in the o ther 2 5 4 ar e a s . B ank · depos i t chang e s in · the t en

l arg e s t are a s are much l e s s repr e s en t a t ive o f l o c a l econom i c

chang e s than in the o ther 2 5 4 areas I 1 4 ] . · ·

 .
Tab l e 1 0 . Change s B e tween 1 9 6 0 and 1 91 0 in C ountj e s Wh i ch I ndu str i a l i z e d
and . Count i e s Whi ch d i d no t I ndu s t� i a l i z e [ 14 ]

Net Change_" --Ne�Cliange per

Changes in Changes in Counties · Between Two Increase · of 100
Count ies Which Whi ch d id not Groups of Manufactur ing
I t em Industrial i z ed Industrial i z ea Counties Empl oyees

Popu l at ion + 56 , 7 96 -2 3 , 9 8 9 +.80 , 7 85 + 351

Fami l i es +19 , 642 -2 , 610 +22 , 252 +97

Personal IncomeR
Schoo l Enro l lme t +18 , 080 - 16 +18 , 096 +79
+$562 , 427 ,.o_o n + $ 324 , 109 , 000 +$ 238 , 31 8 , 000 + $ 1 , 036 , 000
Reta i l Estab l ish - .
c
ments +1 , 372 +158 +214 +1
c
Retail Sa l es +$24 1 , 143 , 000 . +$ 111 , 147 , 000 + $ 129 , 996 , 000 +$565 , 000
Bank D epos its +$276 , 962 � 000 + $ 164 , 200 , 000 +$ 112 , 762 , 000 +$49 0 , 000
Empl oyment in :
Manufacturing ·+25 , 677 +2 , 677 +23 , 000 +100
Who l esa l e and
Retai l Trade. +7 , 353 +2 , 485 +4 , 868 +21
Professiona l and
Related Services +10 , 812 +6 , 870 +3 , 9 42 +17
Transportation ,
Conununication
and Other Pub l ic
Ut i l it i es +2 , 791 +276 +2 , 515 +11
Finance. , Insurance
and Real E state +1 , 900 +585 +1 , 315 +6

t.N
N
 Tab l e 10 , ( C ont inue d)

---- - -----Net Net Change�per

-----c--��--

Cfiarige
Ch an ges in Changes in Cotmties Be :t ween Two Increas e 9f 100
Counties Which Which ' d id not Groups of Manufacturing
· I t em Indust.J�ial i zed Industrial i z ea Coimt i es Employees ·

Bus ines s and

Personal
· Services
· +436 -682 . + 1 , 118 +5
Construc t ion +2 , 428 · + 1 , 761 +667 +3
Agricu l ture ;
· Mining and
Industry
·

Not Reported -16 , 929 -18 , 210 +1 , 281 +5

Total ,.
Al l Industries + 34 , 468 -4 , 238 +38 , 7.06 +168

aAc tual change s in the s e count i e s mu l t ip l i ed by 2 . 3 2 to comp en ­

s at e · fo r . smal ler popul a t i on· · and emp l oyment in the g roup o f coun t i e s
wh i ch . . d id n6 t indus ti i a li z e .
b Change in per s onal income i s from 19 5 9 t o 19 6 9 .
c �h ange in ret a i l e s t ab l i s hmen t s and r e t a i l s a l e s i s from
19 5 8 . t o 1 9 6 7 .

t.J.:I
t.J.:I
 34

I n th i s ana lys is , the 2 5 � SMSA ' s were d ivided into

two g roup s according to chan g e in t o t a l emp l o yment b e tween

1 9 6 0 and 1 9 7 0 . The 1 2 7 ar e a s with g r e a t er emp l oymen t growth

( r ang ing from + 2 0 . 0 % to + 1 2 5 . 1 % ) wer e comp ar ed w i th the 1 2 7

a r e as w i t h l e s s e r growth ( rang ing from + 2 0 . 0 % t o - 8 . 8 %) .

For e a ch gro�p , t�� i 9 6 0 da ti wa s sub trac t ed from the 1 9 7 0

data and the d ifferen c e s a t tr i b� t e d t o incre a s e d emp l oym ent .

Tab l e 1 1 i l lu s tra t e s the . chang e s dur�ng the p e r i ci d 1 9 6 0 to

1 9 7 0 · in �he · m� tropo l i t an _ a r e a s · wi th greater and l e s s er

emp loymen t growth [ 1 4 ] .

S ev e r a l chang e s s hown in Tab l e 1 1 , re su l t ing from an

incre a s e of 1 0 0 manuf a c tur ing p lus non -manufa c tur ing emp l oy ­

ment , a r e c ons i der ab l y l e s s than the c o r r e s p onding chang e s

as s o c i a t ed with an incr e a s e o f 1 0 0 manuf ac tur ing emp l oyee s

s hown on Tab l e 1 0 . Th i s do e s no t ne c e s s a ri ly mean non ­

manufa c tu r ing emp loyment has l e s s imp a c t upon the commun i ty

than manu fa c tur ing emp l oym ent .

When � rur a l coun ty b e c ome s indu s t r i a l i z ed , the

incre a s e d manufac tur ing wo rke r s prov i de emp l oyment f o r mor e
s choo l t e acher s , mo r e s a l e s c l erks , and o th e r non ­
manufac tur ing worke r s in the imme d i a t e a r e a . On Tab l e 1 0 ,

the t o t a l chang e in the area wa s a s s o c ia t e d w i th - inc r e a s ed

manufa c turing emp l oye e s .

When non - manufac tur ing emp l oymen t incr eas e s in an

ar e a , �o re manufa c tur ed g oo d s a r e purcha s ed in the a r e a ;

hut , manuf a c ture o f much of the g o o d s ( and the r e su l t an t

incr e a s e in emp l oyment ) 'o c cur s ·in o ther par t s · o f t h e Un i t ed

 Table 1 1 . Chang e s B e tw e en 1 9 6 0 and 1 9 7 0 in Met rop oli t an · Ar e a s
wi t}?. G r e a t e r and L e s s er . Employment G rowth [ 14]

MetropoTitan �-.-Metro}xlf1 tan- - N-etc:Jl-angec-- ----rret-----cnang e

. Areas with Areas with Between Two per 100
·

Greater Employ- Lesser Employ- Groups of Increa se in

Item ment. Growth menth Growth a .Areas Employment
Employment
(Manufacturing and
Non-manufacturing) +5,690 �652 +2,000,430 +3,690,222 +100
Population . +12,519,000 +3 , 461,000 +9,058,000 +245
Famil ies +3 , 533,540 +971,171 +2,562,369 + ()9
School Enrol lment +6,012 , 287 +3,069 , 701 +2,942,586 + 80
Personal Incomeb +$11�,598,000,000 + $ 80,42�,000,000 +$ 32,17�,000,000 + $872,000 . .
Retail
Estab l ishments +42,969 -31,882 +74,851 +2
Retail Sales c + $37,193,000,000 . + $ �2,612,000,000 +$14,58 1,000,000 . +$ 395,000 .
Bank Deposits +$ 54,984,000,000 +$ 37,252,000,000 + $17,732 ,000,000 + $481,000

a
. Actual · change in the s e ar eas mult ipli e d by 1 2 3 to c omp ens a t e
..

fo r smaller to tal 1 9 6 0 populat i on · in th e g roup o f ar e as . w i th le s s � r

employment growth .
b
Change in p e r s onal incom e . i s fr om 1 9 5 9 t o 1 9 6 9 .
c
Chang e in r e t a i l e s t abli s hm ents and r e t a il s ale s i s from
1 9 5 8 t o · l9 6 7 .

(.N
V1
 36
States . Due t o the imp o s s ib i l i ty of measur ing such chang e s

i n o ther areas , the Chaml? e.r o f. Commerc e S tudy me a sur ed only

chan g e s in the ind iv idu�l m� trop o l i t an ar e � s [ 1 4 ] .

�he C o s t s o f I ndu s t r i �l Growth

.
The h i s t o ry o f th i s co un t ry has b e en charac t e r i z e d ·
by i? dus t r i a l growth w i � h �orkers mov ing from a g r i cu l tur e to
.
h i g h e r . p ay ing manufac �u r ing and s e rv i c e indu s try j '6 b s . I n

� a s t · yea r s , indus t r i a l dev e l opment wa s wel comed wi thout

que s t i on a s it b r ought a . h i gher s t andard �f l iving to th i s
. .

country . · The h i gher non - f arm 1nc �me s prov i ded t ax r evenue s
t o g ove rnmen t , suppo r t ed r � t a i l bus ine s s and . prov ided
marke t s fo r s erv i c e indu s t r i e s .
Re c ent ly , however , i t has b e en real i z ed that

indu s t r i al growth o f t en b r ing s r i s ing s b c i a l co s t . Th e s e

s o c ia l c o s t s inc lude s uch th ing s a s smo g , wa t e r po l lu t ion ,

exce s s ive no i s e , ove r - crowding , arid urb an sprawl . Al s o ,

g over�mental �o s t s incre a s e a s s ch o o l sys t ems , l ib rary and

r e c re a t ional fac i l i t i e s , ho s p i t a l s , t r an s p o r t a t i on , po l ice ,

f i re , wa s t e d i s po s al , and _ o ther s erv i c e s mus t exp and to

k e ep pace w i t h . g rowth _ The s e r e c en t dev e l opments have

c au s e d s ome commun i t i e s and count i e s t o r e � evalua t e the ir

p l an s fo r i ndus t r i a l g rowth . S ome have even adop t e d a

"no - growth" p o l i cy . I n 1 9 7 0 , a c o s t / b enef i t analys i s o f

d i f f erent typ e s o f ec onom i c ac t ivi t i e s wa s p e r fo rmed in

. Mon� gomerf Courity , Maryl and [ 1 5 ] . E l even · .typ e s . o f econom i c

 37

a c t iv i ty · con s i de r e d imp o r t an t t o the fu tur e growth o f the

coun ty w e r e inve s t i g a t e d in the s tu dy�

The s tudy · cons ide red tho s e co s t s incurr ed b y the

county i n p r ov i d ing s e rv i c e s to ind ividua l s and ins t i ­

tu t i ons invo lved in t h e s�ec i f i e d ac t iv i t i e s . Tax r evenu e s

r e c e iv ed by the . c ounty fr6m ind ivi dua l � and ins t i tu tions are

cons i d e r e d as b ene f i t s .

A b en e f f t/ c o s t r a t i o wa s d e r ived for e a c h of the 1 1

c a tego r i� s s tu d i e d . A bene f i t / c o s t rat id o f 1 � 0 wou l d mean

tha t t h e coun ty r e c e ived one do i l a r in rev enue fo r eve ry

do l l ar i t e xp e nd e d in supp or t o f a par t i cu l a r typ e o f

e c onomic ac t ivi ty and the county r e s ident s empl oyed b y such

an a c t iv i ty , Th e 11 c a t e g o r i e · s . inv e s t i ga t e d and the ir

a s s oc i a t e d b ene f i t / c o s t r a t i o are s hown in Tab 1 e 1 2 . Du e to

the d i f f icu l ty in g a the r ing ac cur a t e , up - t o - da t e irifo tmat ion ,

c aut ion s ho u l d b e exerc i s e d in t r e a ting the b en e f i i/�o s t

rat i o s i n a b s o l u t e t e rms , Al s o t o b e c on s i d e r e d are the

i n t e r r e l a t i o n s h ip s b e twe en the v ar i qus a c t i v i t i e s . An

· _ exa�p l e o f th is is the mote l and · hote l cate g o ry and federal

g ove rnment ins t a l la t i ons c a t e g o r i e s . W i t hout s uch f ed e r a l

in s ta l l a t i ons (wi t h a re l a t iv e l y l ow r a t i o o f 1 . 5 8 7 ) , the

. r a t io for mo t e l s and ho t e l s wou l d p ro b a b l y be s om ewha t l ower .

G ov ernment d e c i s i on -make r s shou l d c on s i d e r such

b enef i t/ c o s t analys i s when p l ann ing for an a r e a ' s . g rowth and

de�e l opmeni. In � ddi t i ori t o i h e s e convent iona l b en e f i t / co s t

c ompa r i s ons , m o r e and mo r e l o c a l g ov ernmen t s ar e b e ing

f o rc e d b y pub l i c op i n i on to t ake int o acc ount s o c i a l co s t s

 Tab l e 1 2 . Bene f i t/ C o s t Ra t io s fo r Bu s ine s s Ac t ivi ti es
in Mon t gomery · C oun ty , Mary l and f l S ]

Benefft/Co s t
type of Activity Ratio

1. Larg e White Co l l ar Activit ies , Con s i st ing of Private Organi zat ions
Emp l oying Several Thousand· P er s onnel and Uti l i zing Soph i s t i cat ed .
Data Processing Equipment 2 . 337
2. Motels and Hote l s 1 . 587
3. C ommerc ial Recreat ion , Cons i s t ing Larg e l y of Go l f C ours es , etc . 1 . 505
4. Medical and Heal th Care Fac i l i t i e s Owned by Tax -Paying Organ i zat ions ' 1 . 087
5. Maj or Shopping Centers 1 . 06 1
6. Cons truction F i rms and As sociated Bui l di�g Mat erial Act iv i t i e s 1 . 02 8
7. O ff i c e Bui ldings with a Vari ety of Tenan t s . · 0 . 98 5
8. Res earch and Devel opment Ac tivi t i es of Pr ivat e Tax -Paying F irms 0 . 963
9. Serv i c e Di stribution Cent ers , Inc l uding Warehouses and Repair Centers
Serving the Metropo l itan Area 0 . 886
10 . Light Manufacturing Activ i t i e s 0 . 793
11 . F ederal Government Instal l at i on s , as Repres ented by the Larger Res earch Types (> . 687
12 . Medical and Hea l th Care F ac i l i t i e s Owned by Non - tax - Paying Ac tiv i t i es . 0 . 559
13 . Large White Co l l ar Ac tiv i t i es , Owned by Non- or Limi t ed -Tax - Paying Ac tiv i ti e s
Other than the F edera l Gov ernment 0 . 55 3

(.N
00
 39
. .
and b enef i t s in evaluat ing · the ne � b en e f i t o f new bus ine s s
.
· f i rms t o the commun i ty . Commun i t i e s a r e b e g i nning to

r e a l i z � that it is not advan t a g eous . to �t t� a c t new enter­

p r i s e s ff · · the fu l l c o s t s to the commun i ty ( i nc l ud ing s o c i a l

.
co s t s ) exc e e d the bene f i t s . I f the advan t a g e s o f indu s t r i ­

al i za tion . a r e to b e � e a l i z �d f� l ly and . w i �hou t of f s e t t ing

d i s advan t a g e s , a commun i ty mu s t exer c i s e car e in the

a t trac t i on of n ew f i rms .
 . · cHAP TE R I V

THE LARGE AN D MED I UM HUB A I RPORTS ' SOC I O - ECON OM I C ·

IMPACT UPON THE COMMUN I TY : AN OVE RVI EW

lnt r oduc t i on

. .. .

L a rg e and med ium hub � i r c arr i � r a i �por t s , s u c h a s

t h e on e s . in Lo s Ang e l e s , At l ant a , S an Fr anc i s co , o r N e w York �

a r e very much l i ke c i t i e s o r b � g bus in e � s e s � For the

purpo s e s o f th i s ana l ys i s , the t e rms l a rg� and me d ium hub

a i rp or t a r e as de fi�e d by the C iv i i Ae ronatit i c s B o ard ( CAB ) .

Tha t i s , a l arg e hub a i rp o r t i s one whi ch enp l an e s 1 . 0 % or

md r e of the to t � l numb er of p a s s eng �rs enp l an e d by al l the

CAB c e r t i f i c a t e d a i r carr i e r s . A medium hub a i rpo r t is · one

t ha t e np l an � s l e s s th�n 1 . 0 % but mor e than . 2 4 % o f the to t a l

numb er of p a s s e ng e r s [ 1 6 ] . T h e r evenue � and exp ens e s for

th� s e a irp o r t s run i�to the m i l l i on s o f dol l ar s . Mo r e

imp o r t ant ly , how eve r , the s e a i rpo r t s s how a n e t incom e i n

t h e m i l l i on s o f do l l a r s . Obv i ou s l y , any bus ine s s wh i c h

s e rve s ove r · 1 2 m i l l i on cu s tomer s and repo r t s a n e t inc ome o f

n in e m i l l i on do l l a r s cou l d b e i d en t i f i ed a s a s u c c e s s . Tha t

i s exa c t l y wha t t h e At l anta I n t irna t i on a l Ai rpo rt do e s .

Thi s , in i t s � l f , con s t i tu t e s a con s id e r�b l e s o c i o - e conom i c

imp a c t up o� the . At l an t a ar e a .

Tab l e 1 3 p re s en t s the . f inanc i a l re s u l t � · fo� a i rpo r t s

e np l an ing · ov er two mi l l i on p a s s eng e r s . A s s howri i n Tab l e 1 3 ,

40
 Tab l e 1 3 . Compar i s o n o f 1 9 7 4 F inanc i a l Re su l t s - -Airp o r t s Enp l ani ng
Over. Two M i l l ion P a s s eng e r s ·(Amo unt s in Thou s ands ) [ 1 7]

Passenger Operating Depre­ Net

Enplane- Operat ing ($ ) Non -operating ($ ) Income ciat ion Income
Airport ��!�� - Revenue Expenses Profit Rev enue Expens es ($ ) ($ ) ($)

At l anta 1 2 , 699 25 , 97 7 5 , 12 2 20 , 835 2 08 10 , 797 1 0 , 246 1 ; 265 8 , 981

;Los Ang e l es 1 1 , 927 ' 40,472 1 7 , 44 4 . 2 3 , 028 5 , 3 08 . 6 , 755 21 , 58 1 3 , 521 1 8 , 060 .
San Francisco . 8 , 6 14 · 25 , 3 23 1 0 , 996 14 , 3 27 315 ' 1 ; 910 1 2 , � 32 3 , 961 8 , 771
. a
Ml ami 6 :, 5 00 .2 1 , 999 1 5 , 748 . 6 , 251 1 20 552 5 , 8 19
Washing ton
Nat ional 5 , 989 13 , 4 60 . 6 , 420 7 , 04 0 698b 6 , 34 2 2 , 182 4 � 1 60
D�nver 5 , 751 14 , 707 4 , 5 76 10 ; 131 3 , 524 2 , 64 2 1 1 ', 0 1 3 3 � 2.8 7 . 7 , 726
Dal l a s -
. Ft . Worthc 5 , 067 2 6 , 633 . 6, 111 20 , 522 2 , 4 04 ' 20 , 6 1 8 2 , 308 '
Phi l ad e lphia 3 , 949 13 , 3 30 4 , 8 53 8 , 747 ' 297 3 , 995 5 , 04 9
Detro it 3 , 8 30 24 , 63 5 12. , 6 28 1 2 , 007 1 , 919 7 , 4 43 6 , 4 83 4 , 09 5 2 , 388
Minn eapo l i s -
d ' 3 , 162 14 , 04 4 5 , 527 2 , 070 4 , 169 6 , 419 4· , 3 2 5 2 ; 093
St . Paul , 8 , 51 7
St . Lou i s 2 , 9 59 8 , 6 45 4 , 489 4 , 1 56 1 , 968 2 , 1 20 4 , 004 2 , 245 ' 1 , 7 59 '
Hous ton 2 , 919 1 1 , 9 09 . 7 , 518 4 , 391 2 , 7 60 5 , 1 24 2 , 0 28 2 , 4 55 ( 4 2 7)
Seatt l e 2 , 863 27 , 0 1 9 1 0 , 862 16 , 1 57 9 , 5 25 6 , 632 � , 56 8 ' 4 , 064
Las Vegas 2 , 8 61 7 , 8 79 3 , 388· 4 , 491 599 874 4 , 216 1 , 413 2 , 803

+:::­
t--1
 Tab l e 13 . ( C on t inu e d )

Passenger Operating Depre- Net .

Enplane- Non-o2erating . ($ ) · Income c iation Income
Airport merits Revenue Ex2enses · Profit Revenue ExEenses ($ ) ($ ) ($ )

New Orl eans 2 , 224 5 , 626 2 , 497 3 , 1 29 254 981 2 , 402 1 , 005 1 , 397
Phoen ix 2 , 000 8 , 061 3 , 908 4 , 153 1 , 369 1 , 760 3 , 762 1 , 660 2 , 102
Kansas C i ty 1 , 972 10 , 344 5 , 029 5 , 315 885 2 , 697 3 , 503 . 3,817 ( 3 � 4)

a
Re � enue s and expens e s for s ome s p e c i a l · f�c i l i t i e s no t inc lude d .
b lnt er e s t imputed .
c January 1 3 to Sep .
t emb e r 30 , 1 9 74 .

dl9 7 3 f i�anc i al data .

.p,.
N
 43
the re i s a wide r an g e in op e ra t ing and non - op e r a t ing
I

r ev enue s and expen s e s b e twe en a i rp o r t s wi th s im i l ar enp l an e -

me n t l eve l s ; Op e r a t ing revenue � and exp e � s e� r e s u l t from ·
. .
I

a c tual op era t i on o f the a i rp o r t wh i l e non - op� r � t �ng . revenu e s

and exp e n s e s cons i s t l ar g e l y o f int e r e s t inc6me and exp ehs e .
S e a i� l e � a � �� examp l e , w i th 2 . 9 mi l l i on �nnu al enp l arie ­
men t s , r ep o r t s mo r e o p e r a t ing r evenu e s than At l anta w i th
1 2,. 7 enp l an emen t s . Th i s wide va r i a t i o·n i s · the r e su l t o f
l a r g e d i fferenc· e s i n a i r l fn e . l anding. f e e s e s tab l i s hed t o

m e e t the a i rp o r t s ' deb t s e rvi c e co s t s . Var i a t i on s in

op er a t ing exp en s e s ar e du e t o a c omb i n a t i on o f the phys i c a l

s i z e , age , and �ond i t ion o f a irp o r t fac i l i t i e s a n d t h e

s e rv i c e s provi d ed by t h e a irpo r t .
Non - ope r a t ing r evenu e s and exp en s e s vary depending
.
upon the amount b f bond · iund s inv e s t e� and d eb t out s tariding .
F o r the 1 7 a i rp o r t s s hown , o p e r a t ing income var i e s· from
$ 2 . 3 to $ 2 1 . 6 mi l l i on .

Tab l e 14 s hows s ome o f the o ther f inanc i a l . .

�tat i s t i c s � s u c h a s a i rp o r t i �v e � t �en � , deb� out s tand ing ,

r e turn o n inve s tment and u s e s of fund s for a i rp o r t · imp rove ­

ment s , and d e b t · r e t i r emen t .
The f in anc i a l s ta tu s o f 1 14 sma l l e r a i rp o r t s i s

s hown in T ab l � 1 5 ; and ind i c at e s that the op erat ing pro f i t

and r e turn on inv e s tmerit o f the s � a i rp or t s i s sub � tan t i a l l y

b e i ow t h a t o f t h � l ar g e r a irpo r t s . Th e s e re sul t s are b a s ed

on 1� 6 9 � 1 9 7 1 d a t a and ar e in 1 9 7 3 do l l a r s . A moie m � an ing �

fu 1 a s s e s sment of the ec onomic . v i abi l i ty o f the s e sma l l e r

 Tab l e 1 4 . Compar i s on o f 1 9 7 4 F in anc i a l S t at i s t i c s - -Airpor � s . Enp l an ing
Ove r Two Mi l l ion Pa s s e ng e r s (Amounts in Thous ands ) [ 1 7 ]
Property,--viant" and ·egui�men.t Ret\11:11- --·�use of Funds·
Construction Depre.;.;· Debt on Debt Debt
Pas s enger in cia ted Out - Invest :.. Improve - · Retire -
Enplane - At Co s t Progres s Va lue standing ment ment s ·rn ent
Airport ments ($). ($l {fl . ($l (�l . ($_l . ($l
. a
At lanta 12 , 699 . 258 , 463 . 32 ' 908 280 , 3.71 18 9 , 471 7.2 1 8 , 008 · 2 , 914
b
Los Angel es 1 1 , 927 392 , 99 1 9 , 399 360 , 179 . 232 , 625 6�4 7·, � 2 7 6 , 212
San Fran c i s co 8 , 614 159 , 034 22 , 968 134 , 265 111 ,. 093 10.7
-
11 , 456 5 , 675
Miami 6 , 500 250 , 768 121 , 472 - 220 , 1 96 - 3 , 596
Washington
Nationa l 5 , 98 9 62 , 302 3 , 326 30 , 59 3 - 22.3 719 .
Denver 5 , 751 121 , 494 12 , 057 99 , 200 85 , 140 10.2 11, 376 1 , 034
Dal las -
Ft . Worth .5 , 067 618 , 879 - - 55 8 , 88 0 3.3 32 , 245 720 ·.
Detroit 3 , 830 116 , 000 49 , 9 35 120 , 477 133 , 769 10 . 0 17 , 581 2 � 440
Minneapo l i s -
· S t .. Paul a 3 , 162 9 8 , 509 43 , 414 lOS , 158 94 , 425 8 .1 3 , 827 3 , 780.
St . Lou i s 2 , 959 . 63 , 324 3 , 452" 4� , 316 38 , 060 9.0 . 2 � 930 535
Hou ston 2 , 919 86 , 902 . 905 75 , 786 97 , 611" 5.8 10 , 746 425
Seatt l e 2 ; 863 200 , 000 3 , 000 179 , 760 171 , 185 9.0 7 , 604 2 , 940

�
�-
 Table 14 . (Cont inu e d )

})roperty, Plant · and Equipment

· Return -�c - - --use · of Funds
Construction Depre - Debt on Debt
Passenger in ciated Out- · Invest- Improve - Retire -
Enplane- At Cost Progres s Va lue standing ment ments ment
Airport ments ($) · ($) · �l__ � _($1
.
.. (\) ($) ($)

Las Vegas 2,861 31,553 16,138 ·. 39,213. 28,933 11 . 5 10,831 1,534 .

New Orleans 2,224 39,500 23,462 52,147 17,740 6.0 585
Kansas City 1,972 96,855 16 90,731 51,004 5.9 3,514 1,120 .

a
l9 7 3 financ ial data .
b
Exclude s payment s · to lo cal gove rnmen t s .

�
U1
 Tab le 1 5 . E c onom i c V i ab i l i ty o f A i r C arr i e r Airpo r t s
· ( 1 9 6 9 - � 9 7 1 F i nanc i a l D a t � i n 1 9 7 3 Do l l ar s ) · [ 1 7]

Average .
Annua l Nuaber Pas se�ger operating Airport Debt
Enp1anement of Enp1anements Profit Investment Outstanding I nvestment
Group Airports (000) ($000) ($ 000) ($ 000) (%)

500,000 to
2 mif1ion 30 937 1 , 233 26,964 16,467 4.6

250,000 to
500 , 000 . 10 383 440 12,519 6,095 3.5
125,000 to
250,000 . 29 181 136 . 11,192 3,169 . 1·. 2
50,000 to
125,000 17 . 93 97 6,045 1,777 1.6
Under 50,000 28 19 ( 15) 1,907 270 ( 0 . 8)
Total 114

+:;.
a.
 47
a i rpor t s i s t o examine th e i r ab i l i ty to me e t o p e r a t ing

·expens.e s and d e b t s e rv i c'e co s t � wi thout l o c a l g ov e rnment tax

suppo r t . Re su l t s of t � i s exam i ri �t i on , shown in . Tab l e 16 ,

ind i c a t e that the ab i l i ty o f a � �p o r t s to · m e e t the s e exp en s e s

d e c re a s e s a s enp l anemen t s d e c r e a s � . . A i rp o r t s i n th e l a s t
two g roup � c an b e · s e en t o b e · l a rg e l Y unab l e t o m e e t t h e i r
>
.
•

deb t s erv i c e c o s t s from· op e r a t ing · r evenue s . Th e me thod o f

f inanc ing f o r a i�po r t s b e l ow 2 5 0 , 0 0 0 enp l anemen t s � l s o can
b e s e en t o b e l ar g e ly throu gh g ene ral ob l i g a t i on bonds o r
l o an s ,

Th e a i rp o r t ' s sphere o f e conomi c influenc� , ; however ,

i s not re st r i c t e d to the s e f ac t o r s · a l one . I n the a r e a o f .
.
ec o nom i c imp ac t , i t mi ght b e s a i d tha t rie t· inc ome i � only
the " t ip of the i c eberg . "

The S an Jo s e , C a l i fo rn i a Airp o r t w i l l b e exam ined a s

a typ i c a l a i r c arr i e r a i rp o r t � The S an J6 s e marke t ar e a

r e f er r ed to in l a t e r s e c t i ori s i s define d a s a g e og r aphic

a r e a de s c r i b e d by � ten -mi l e radius c i rc l e wi th the a i rp 6 r t
a s i t s c en t er { 2 ] . T h e mar k e t area i s pe cul i ar t o e ach a i r ­
p o r t · and mu s t b e d e t e rmined on· a c a s e by c a s e b as i s
dep en4ing upon the ai rpo r t ' s environment .

Pr imary S o � i o - e c onomic I mp ac t . (Ai rp o r t - Sp e c i f i c )

Th e f ir s � l eve l o f s o c i o - ec onom ic imp a� � a? a i rp o r t

ha s i s p r imary s o c i o - ec onom i c · impac t ( a i rp o r t - spe � i f i c ) .
P r imary s oc i o - e c onomic imp a c t cons i s t s o f tho s e econom i c

var i ab l e s that · are. d i i e c t l y a _ func t i dn o f the ac t iv i t i e s a t

Table 1 6 . Ab ility o f Airp o r t s t o Me e t Op era tlng Expens e ? and D e b t Serv i c e C o s t s
without Local . Gov e rrunent _Tax Suppo r t ( 1 9 6 9 - 1 9 7 1 F inanc i al Da ta ) [ 1 7. l

Numbe r
JJn.TitY to--Meet
a
R·evenu e Bond �
_

Annua l . of - Ope r a t ing G . O . B ond o r Loan s

Enp l �nement Group A i rpo r t s Expen s e s I nt er e s t Principal Int e r es t Princ 1pal

5_ 0 0 , 0 0 0- to
2 m illion . 30 2 9/ 3 0 1 0/ 1 1 . 10/11 1 2/ 1 4 11/14
2 5 0 , 0 0 0 . to
500 ,000 10 1 0/ 1 0 5/ 5 4/ 5 8/8 . 6/ 8 .
1 2 5 , 0 0 0 to
2 50 , 000 29 · 2 5/ 2 9 �/4 3/4 • . 1 0/ 2 0 7/ 2 0
5 o , o o o to
� 2 5 , 00 0 17 1 3/ 1 7 3/4 3/4 2/ 1 1 " 2/ 11
Und er 5 0 , 0 0 0 28 8/ 28 0/3 0/ 3 1/1 2 0/13
To tal 114 ' 8 5/ 114 2 1/ 2 7 2 0/ 2 7 3 3/ 6 6 2 5/ 6 6

a .
Data not ava il able f o r al1 · a i rp o r t s . _ Some airp o r t s have b o th r ev enue
and g ene r al obligat ion bonded indeb t e dne s s .

+:a.
00
 49

. the a i rp o rt . T o eva lua� e . the ci�gn i tude o f th i s typ e o f

i �p a c t· , a tho ro � gh and de t a i l e d c o l l e c t i o n o f d a t a from a l l
.
.
bu s ine s s en t i t i e s , b o th pub l i c and pt i i a t e , sp e c i f ic a l ly

l o ca t e d . on the a i rp o � t , i s n e c � s s ary . �tiiveys and int er �

v �ews s hou l d b e conducted wi th the ai r ii n � s , conc e � s ibn -
.
·

.
.

a i r e � � car rental firms , a i rpor t admin i s t r a t i�n , f ix ed b a s e

·
. op era. t o r s , a � d g overnm ent ag enc i e s invo lved . i n t h e op e ra t i on
. o f the a i rp o r t . S ome · o f the ex amp l e s o f p r imary imp a c t
·
.
are : the numbe r o f emp l o ye e s ; · the g ro s s · p ayrol l ; exp end i ­
tur e s fo r l o cal go o d s and s e rv i c e s , including adver t i s ing ;
l o c a l · t ax payment s , inc luding s t a t e s a l e s t ax ; c ap i ta l
irives t11:1ent exp end i tur e s ; and annua l r ev enue s .
.
Obv i ou s ly � la! g e h�b a i rp o r t s p r ov id e an eno rmous
p r imary econom i c imp ac t . The s co�e of . t � i s l ev e l of imp a c t ,

however , ha� p roven to b e a surp r i s � t o mo s t ind iv idua l s .

ou t s id e ·the indu s try . . A i rp o r t s s uch a s N ew York C i ty ' s

c omp l ex · · ·of thr e e a i � p o r t s ( K enne dy , · N ewark , and LaGua r d i a ) ,
.
o r Miam i ' s I nt e�nat i onal Ai r p o r t , d i r e c t ly emp l oy. over
7 0 , 0 0 0 p e r s on s w�th annua l p a y r o l l s o f $965 mi l l i o n and ·

$ 5 9 0 mi l l i on � r e s p e c t ive ly , Even sma l l ei a i rpo r t s l i ke

.
Las V�g a s emp l oy 1 , 6 0 0 p e op l e wi th a p ayro l l o f $ 7 m i l l ion .
T ab l e 17 d e t ai l s the numb er o f emp l o y� e s and annua .l payro l l s
fo r s ome o f the nat i on " s a ir carr i er a frpor t s . Tab l e 1 8
. .

i i lus tr a t e s the ' typ e o f d a t a co l l ec t e d fo r a d e t erm ina t i on

o f pr imary econom i c impa c t .

 50

Tab l e 17 . D i r e c t Emp l oyment and Annu al �ayr o l l o f

A i r Carr i e r Airpor t s

Annual
A i rpor t Emp l oye e s Payro l l Do ll ar s
N e w YQrk - New J�r s e�
( Kennedy , Newark , .
and LaGu ard i a ) 77 , 800 96 5 , 000 , 000
Miam i . -73 , 000 590 , 000 , 000
Lo s Ang e l e s 3 7 , 0 76 447 , 6 0 0 , 0 0 0
S an Franc i s co ? 9 , 4 18 3 2 2 , 0 04 , 0 0 0
At l ant a 17 , 5 4 1 " 2 0 9 , 2 36 , 7 12
Minn e ap o l i s 1 5 , 3 4"0 18 8 , 3 2 5 , 0 0 0
S e at t l e 15 , 200 16 1 , 0 0 0 , 0 0 0
Bo s t on 10 , 0 0 0 98 , 000 , 000
Hou s t on 6 , 300 7 6 ,_ 0 0 0 , 0 0 9
Na s hv i l l e · 7 ; 44 6 6 5 , 8 2 6"· , 3 8 7
· · S t . L ou i s s , ioo 4 8 , 19 0 , 0 0 0
New Or l e an s 4 , 000 33 , 568 , 000
C inc inna t i 1, 900 " 17 , 9 .0 0 ; 0 0 0
Har t f o r d - 1 , 500 17 , 4 0 0 , 0 0 0
L a s Ve g a s 1, 594 13 , 6 9 1 , 7 5 0
Rho de I s l and 7 18 7 , 1 2 1 , 1_24
 Tab l e 1 8 . Pr imary E c onom i c Impact o f the S an Jo s e · A i rpor t
on the Mark� t Area in FY 1 9 7 2 [ 2 1 -
Air Concess 1on:.- Aircraft ��Gov ernment
Economic Variable Carriersa aires Services b AgencyC Total
Total Ent it ies 11 9 10 5 35
Total Responding to Survey 10 9 9 5 33
Numb er of Employees 198 193 1 16 1 44 651
Annua l Grpss Payro ll $2 , 090 , 500 $ 1 , 2 11 , 000 $ 1 , 1 05 , 000 $ 1 , 696 , 700 $ 6 , 022 , 200
Expend itures (G&S) 1 , 056 , 900 1 , 163 , 900 737 , 000 1 , 625 , 000 4 , 58 2 , 8 00
Tax Payments 49 8 , 8 00 440 , 000 1 75 , 000 1 1 , 700 1 , 126 , 400
Capital Expenditures 150 , 000 41 , 000 74 , 000 708 , 700 9 73 , 7 00
Total . FY 1 972 $ 3 , 715 , 200 $ 2 , 856 , 800 $ 2 , Q9 1 , oo o · $ 4 , 040 , 1 00 $ 1 2 , 7 05 , 100
a
P l anned Capi al ExpenditUres ·
to FY 1978 $ 205 , 000 $ 1 , 050 , 000 $ 625 , 000 $ 26 , 575 , 000 $2 8 ;500 , 000 .

3
. There are 1 6 a i r c arr i er s in t o t a l op e r a t ing out . o f the S an Jo s e
Muni c ip a l Airport ; howev e r , only 1 1 a r e r e lev ant t o the s tudy ; i . e . ; A i r
C al iforni a hand l e s Go lden We s t bu s in e s s , C on t inental h andl e s Swi f t A i r e , Un i t e d
h andl e s G o lden Pac i f ic , and Va l l ey . handl e s Tran� S i e rra .
·

b
F�x ed b a s e operato r s .
c
_ Airport Admini s t ra t ion , Gov ernment ( FAA) , and Cus t oms .
. .

d
N ine ou t of 1 1 a i r c arr i e r s d i d no t know , o r more l ike ly d i d n o t w i sh
t o revea l , w:hat p l anned exp e � d itur es we re fo.r 1 9 7 3 - 1 9 7 8 .

V1
J--l
 52
S e c ondary S o c i o - e conom i c Impac t s (Airpo rt - Re l at e d )

S e c ondary s o c i o - ec onomic imp ac t s a r e th o s e t r a c e ab l e

· to a i rpor t - r e l at e d bus ine � s e s . s uch a s h 6 t e l s , mo t e l s , and

trave l a g enc i e s , � l ong w i th the proport i on . o f the ir
ac t iv i t i e s wh ich are a i rp o r t - g en e r a t e d . The r e is g eneral ly
.
.
·. a s ub s t e�:n t i a l e c onom i c imp ac t on the !ll ark e t ar. e a r e sul t ing
.
from tho s e �ndu s tr i e s whi c h are h i ghly dep endent up on a i r
trave l ers u s ing the a i rp or t . Th i s i s e s p e c i a l l y t rue o f
ho t e l s ' mo t e l s ; travel _agenc i e s , and th e i r re l a t e d con -
s t ruc t ion , ·
Th e ho t e l /mo t e l indu s try i s mor e h i ghly dep endent
on proxim i ty to the a i rp o r t for imp a c t s than o ther ·

bus ine s s e s i n the marke t ar e a . Due t o th i s ch aract er i s t i c ,

the radius o f the ho t e l /m o t e l imp a c t e d a r e a i s g enera l l y
r e s t r i c t e d ( t o a . radius o f four mi l e s in the c a s e o f S an
Jo s e ) .I n the S an Jo s e , C a l i fo rn i a ar e a , 4 7 7 p eop l e w i th an
.
annua l p ayro l l o � $ 2 , 0 6 3 , 0 0 0 we re emp l oyed in th e ho t e l /mo t e l
trade w i thin a f our -mi l e r adius o f the a i rp o r t [ 2 ] .
The r e are approx ima t e ly 6 3 trav e l ag enc i �s in th e
S an Jo s e market area . The s e ag e n c i e s , on the av erag e , pro ­

v i ded emp l oyme n t for f ive p e op l e e a ch , w i t h the t o t a l rnimb er

__
o f e mp l oye e s b e ing 3 1 5 p er s ons in 1 9 7 2 . Survey s · ind i c a t e
that approx ima t e ly 3 0 % o f t h e t o t a l bus in e s s i nvo lved a i r

t r an sp or t at i o n � I n t h i s c a s e , four out o f f ive t i cke t s were

for tr ip s throu gh the S an F r anc i s c o Ai rpo r t . I f cons i d e r ing

· only . the t r ave l genera t ed by the S an Jos e A i rpo r t , the

 53
. trave l a g enc i e s cons t i tu t ed a . s e c ondary e conom i c imp ac t of

1 9 p eop l e wi th a · . g ro s s p ayro ll o f $ 1 7 1 , 0 0 0 for 1 9 7 2 . [ 2 ] .

Ter t i a ry S o c i o - ec onom i c · I�p a � t s (Ai rp o r t - I nduced)

th e p rev i ou s l y d i s cu s s �� ec onom i c impac t s �hi ch

.
re su l t fr om the pr imary and s e c ondary l �ve ls provide t he
s t imulus . to prop a g a t e e c.o nom i c w·ave s · whi ch a ff e c t the en t i r e
ma rk e t area . · Referred to a s t h e t e r t i ary l ev e l o f e c onom i c
imp ac t s , the s e · induc ed impac t s · con s i s t of s t imu l i to

emp l6yment . arid p ayro l l .

Eac h empl o y e e in a pr imary impact l ev e l ( a i r l irie s ,
conce s s i on s , gove rnment �genc i e s , · and a i rp o rt � sp e c i f i c
c on t r ac t ing f i rms ) and · in the s e c ondary . impac t l ev e l
( ho te l s � . mote l s , irave l ag �nc i e s , � nd th e i r r e sp e�tive
co�s truc t i o ll: ac t iv i t i e s ) c au� e t e r t i ary or · induced emp i oy ­

ment in who l e s a i e �nd r e t a i l trade , g ov ernmen t , banking and

. f inance , and o th e r s . Th i s indu c e d emp l oyment i s known a s

t h e emp l oyment mul t ip l i e r e ff ec t , a we l l - known phenomenon
and · p r inc ip � e of e c onomi c s .
The ·i i z e of the mul t ip l i e r e ffec t var i e s w i th

· g e o g r aph i c l oc a t i on and indu s try . · The va lu e o f · t.he mu l t i ­

p l i e r i s g e ner a l ly in the range o f two to four I 1 8 l . . . The

mul t {p l i e r for the S an Jo s � marke t area i s 3 . 0 { 2 ] � Th i s

means iha t for each . emp l oy e� i n the . p r imary o r s e condary

· l eve l o f the a irpo r t indus t ry , an induce� emp l oyment f o r two

add i t ional worke r � wi thin the marke t a r e a i s g en e r a t e d .
 54
Ano th e r examp l e o f the mul t ip l i e r e f f e c t i s s e en iii

C inc i nn at i . At .t h e g r e a t e r C i_n c inn a t i · A i rpo r t th e r e are

1 , 9 0 0 p e op l e d i r e � t l y emp l oye d in av fat i o� a c i iv i i y � The ·

t o t � l numb e r o f p e op l e , . howeve r , i n �he g r e a t e r C inc inn�t i -

. .

no i the rn Ken tuc ky a r e a d i r e c t lt or ind i r e c t l y �mp l oyed in

av i ati on and by _ f i rms prov i d i n� supp 9 r t and s erv i c � s to the

.
· indus try and trave l - re l a t e d bu s i ne s s e s r each e s 2 5 , 0 0 0 [ 1 9 ] .
Al t e rna t e ly , ther e i s ari · income mu l t i p l i e r e f f e c t .

I n th i s c a s e , e ach payro l l do l i ar o f income from the . p r imary

or s e condary a i rp or t indu s try emp l oyme � t g en e r a t e s

addi t i ona! d o l l ar s f n induc ed t e r t iary emp loymen t·. For the

San Jo s e ma rk e t are a , the income mu l t ip l i e r value i� e s t i ­

m a t e d to b e 3 . ·s [ 2 ] . L i kewi s � , in Hous ton , the $ 7 6 mi l l i on

annua l av i a t i on payro l l r e s u l t s in the d i r e c t and ind i r e c t

pur �ha s e o f n ea r l y $ 2 0 0 m i l l i on i n g o o d s and s erv i c e s [ 19] .

Th i s mu l t ip l i er e f f e c t op e r a t e s in a l l c i t i e s · a s av i a t i on

do l l ars are c h.anne l ed t_h rou gh�ut th e c ommun i ty .

Other S o c i o - e conom i c Impa c t s

The r e a r e many o t h e r s o c i o - e c onom i c impac t s wh i ch

ar e e qua l ly impor tant , but t hey t end t o b e ob s cure b e c au s e

.
in mo s t c a s e s they _ a r e v e ry d i f f i cu l t t o quan t i fy and .

eva lu a t e in a s t a t i s t i ca l ly me an ingfu l mann e r . . S � me o f th e

mo r e imp o r t an t o� the s e r a t h e r sub t l e t � c t o r s are imp ac t s

from b r o adened �arke t s : th e b ene f i t s occurr ing f r om the

 55
ab i l i t y t o exp o r t l o c a l g o o d s and s �rv i c e s ; impac t s on l and

va�u e s ; and of very sub s t ant i a l magni tu d e , a i r · v i s i t or

exp end i tu r e s . ·

Tran � i t a i r t r �v � l e r s t o th� marke t ar� � , wh� th er

fo r bu s i n e s s o r p l e a s ure , a r e an impor tan t e l emen t in the

. .

comp o s i t i on o f the metro e conomy . Obv i ous l y , the d e g r e e to

. .

wh i ch thi s typ e o f imp ac t affec t s the c ommun i ty v a r i e s

.
cons id � rab ly b e twe en �eg ions and even b e twe en a r e a s w i t hin a ·

re g i on , S an Jo s e i s · a g o o d examp l e o f · th i s . Du e to S an

J o s e ' s c l o s e p r o x im i ty t o San Fran c i s c o , i t i s r e a s onab l e to

as sume that it is not a b ig tour i s t de s t inat i on a r e a . In

o t he r . c olinnuri i t i e s , howeve r , · t our i sm and conven t ion r e l a t e d

b� s i�e s s e s . inj e c t a cons i de r a b l e amount o f moriey i n t o the

ar e � • s e conomy . Tab l e 1 9 i l lu s tr a t e s . ihe l ev e l of annua l

income d e r ived from the s e a c t iv i t i e s .

I ri . mo s t ca s e s , th e �on - r e s ident bu s iri e s s a i r

· t r av e l e r · sp ends only the t im e r equ i r e d to tran s act h i s

.
.
bu s ine s s i n the marke t � r e a . A s tudy done by S t anfo rd

Re s e ar ch I n s t i tu t e shows that about 3 2 % of a l l dep l an ing

p a s s e� g e r s a t . S an J o s e w e r e non - r e s i dent bus ine s s . a ir

t r ave l e r s . The bus ine s s t rans i ent s t ays an ave rag e o f 1 � 5

.
d a y s in the marke t ar e.a a nd . s p ends about $ 4 5 p e r day fo r

f o o d , l o�g ing , t r anspo r t a t ion , ent e r t ai nment , and mi s c e l ­

l an� 6 u � i t em s ���
A �hara c t er i s t i c o f comme rc i a l and indu s t r i a l

p r o� e r ty l o c j t e d around maj o r a i rp o r t s is th a t · a s the

prox im i ty o f the p rop e rty to the a i rp o r t incr e a s e s , · the

 56

Tab l e 1 9 � Repr e s e n t a t ive F i gu r e s fo r I ncome Der ived

fr om Convent i on and Tou�i sm Bus i n e s s [ 1 �

Ari�uai Monetary. Imp a c t

'
(.$)
. .

' '•

New York 1 , 201 , 500 , 000

Chi cago . 838 , 800 , 000 .
L a s Ve g a s 187 , 000 , 0 00
S t · . Pau l -Minne apo l i s 184 , 000 , 000
. Denv e r 105 , 000 , 000
A t l an t a 84 , 0 00 , 000
S t . L ou i s . 71 , 000 , 000
New O r l e an s 5 5 , 7 00 , 000
Bo s ton 40 , 000 , 000
Seattle 29 , 0 00 , 000
C inc innat i 18 , 000 , 000
 57
va lue · o f the prop e r ty inc r e a s e s . Th i s i s a l s o tru e o f
r e s ide �i i al property . I n a F l o r id� c � s e [ � } � the · j Udge

he i d · fo r th e def endan � , M i am i I n t e rna� ion a l Airp o r t . Th e

ca s e inv o lved the homeown e r s o f Grap e l and He i ght s , a Miam i

suburb near the a irpo r t , who � ere s� ing the a i rp o r t fo r

da�age s . The a i rp o r t , they c l a imed , had � �duc e d the value
o f the i r home s . Judg e Goo dhart [ 3 } in ru l ing for the

de fendant , h ad thi s · to s ay :

. �e g a rd l e s s o f wha t th e ( s t a t e } Cons t i tu t i on pro ­

v i d e s , i , e . , taking , _ damag e s or de s troying , the
t e s t of damag e s in inve r s e condemnat ion is s t i l l
the - r e duc t i o n o f fa i r mark e t valu e . .
We are thu s confronted w i th a l e g a l �noma ly .
Al thou gh s om e d amag e has b e en proven as s t a t e d
ab ove , and . the re ha s b e en s ome infr ing ement upon
the u s e and enj oyment of the P l a int i ffs ' l and , the ·
t e s t imony c onc l�s ive l y s hows tha t any one o f the
ind ividual P l a in t i f f s cou l d now s e l l the i r .
prop e r ty a t . an inc r e a s e o f anywh e r e b e twe�n z o b �
3 0 0 % o f the or i g inal - pur cha s e pr i c e . Inf l a t ed
real e s t a t e valu e s and · g eneral appr e c i a t i on of
r�al · e s t a t e in ' th i s s t a t e , and par t i cul a r l y in
Dat e County , undo�b t edly a c count s for th i s
· inc r e a s e ., · . . The r e fo r e , n o d im�nut ion . o f
prop e r ty v alue s exi s t s and thu s n o sub s t an t i a l
d am a g e s . c an _ b e p rov ed b y t h e · 8 4 1 P l a in t i ff s a s
r �qu i r e d b y the c a s e l aw iri thi s s ta t e and · o ther
s t at e s .
. .

Acc o rd ing to Wi l l i am G ib b s [ 2 0 ] , As s i s t ant Co�nty

At t o !ney for Dade C ounty , a s urvey o f prope r ty valu e s in the

county wa s p e rfo rm e d in p r ep � rat i on for the c a s e . Th ir ty ­

e i ght suburb s comp a r ab l e to Grap e l and He i ght s an d we l l away

from the a irpo rt were s e l ec t ed for t he s tudy . The G r ap � l and
:He i ght s p ro p e r t i e s are zoned r e s ident i a l wi th . the maj o r i ty
.
of the prop e r t i e ·� b e ing s ing l e ... fam i ly dwe l l ing s . The value
·

o f app r ox imat e l y ,- 9 , 0 0 0 proper t i e s , h a l f of whi ch were fn

 58
G r ap e l and H e i ght s , was t r a c e d f rom the o r i g ina l d a t e o f

pur cha s e t o t h e pre s ent . On th e a l l e g e d d a t e o f taking ,

January 1 7 , 1 9 7 2 , the ave rag e marke t value - o f prop e r t i e s i n

G r ap e l and H e i g h t s had incr e a s ed 2 6 3 % wh i l e prope r t i e s in th e

o ther a r e a s h ad inc r e a s e d ori an ave r a g e o f � 5 3 % . S ince then ,

·
the d i ff er en t i a i · · in · prop e r ty valu � has incr ea s ed even mo r e .

The av e r � g e ma rk�t va lue . o f prop e r t i e s · in G r ap e l atid H e i ght s

. .

in 1 9 7 3 inc r e a � ed t o 3 0 � % g r e a t er than the or i g inal p�rcha s e

p r ice whi l e c omp ar ab l e prop e r t i e s inc � e a s ed on ly 2 8 2 % in

value . G i b b s [ 2 0 ] summed up ·. th e s i tu a t i on wh en he s t a t e d :

Th e r a t e o f appr e c i a t i on in the Grap e land

H e i ght s wi s m e asurab l y g reat e r than the r es t · o f
Dade County o n comparab l e prop e r ty .

An o th e r g o o d . e x amp l e o f l �nd v al ue appr e c i a t i on in

p rox imi ty to maj o r a i rp o r t s is the . prop e r ty surround ing

C h i c a g o ' s O ' H are I n t e rn at i onal A i rpo r t . Prop �r ty wh i ch s o l d

for n o mo re than $ 8 0 0 p e r a c r e in the 1 9 5 0 ' s has a cur r ent

ma rke t value o f ovei $ i o o , o o o p e r acre . Near Pho en ix S ky

Har b o r A i rp o r t ·, comme r c i a l l and v a l ue has r i s en from

$ 2 6 , 0 0 0 per acre in 1 9 6 1 to a h i gh of $ 1 3 0 , 0 0 0 per a c r e

· t6day . F i n a l ly , prop e r ty n e � r the L ou i s vi l �e , Ken tu�ky

Airpor t whi ch s o l d f o r $ 4 , 0 0 0 p e r ac r e in 1 9 5 9 now s e l l s fo r

$ 1 8 , 0 00 per acre {19 ] . Th e s e a r e j us t a f ew examp l e s o f the

incr e a s ing v a lue o f prop e r ty wh ich is i n p ro x im i ty to the

n a t i o n ' s a i rpor t s .

Tab l e 2 0 summar i z e s the San Jo s e · A i rp o r t e c onom i c -

imp �c t s at the var i ou s l eve l s . The �s t im a t e s · , and th e

fo l lowing imp a c t f a t t o.r s wh i ch ar e n o t a s iden t i f i ab l e in

 59

Tab l e 2 0 � A Summary o f the Economic Impac t by the

S an Jo s e Airpo r t Upon the · .
Marke t Ar e a I 2 ]
Employmen t . and Payr o1I · (M1II 1 ons 1n 1972 Do ll ar s)
FY 1 9 7 1 - 1 9 7"2 : Elllp·toyment Payro l l
Pr imary Impact L eve l
Ai rpo r t - Sp e c i f i c 651 $ 6 . 022
S ec ondary Imp�c t Leve l
Ai rpo r t - Re l a t ed 496 2 . 235
Cons truc t i on Ac t iv i ty
Pr imary 20 . 277
S e c ondary
Ter t i ary Impac t Leve l 2 , 3 34 21 . 3 33
Sub to t a l 3 , 501 $29 . 867
Othe r Bconom 1 c Facto r s (M1ll1ons 1n 1972 Dollar s )
· Pr imary Impa ct Leve l .
Exp. end i tur e s for G & S $ 4 . 583
Tax P aymen t s 1 . 126
Cons t ru c t i o n Ma t e r i a l s . 280
S e condary Imp ac t Lev e �
Hot e l /Mo t e l Cons truc t i on
Mater iat s
Tax Paymen t s N .A .
Othe r Impac t L ev e l
A i r V i s i to r Expend i ture s 9 . 113
Sub t o t a l 15 . 102
To t a l $44 . 969
 60
ab s o lu t e t erms but �ev e r thel _ e s s are v ery s i gn i f i cant � are
ho t e i /mo t e i t ax payment s , trav e l ag ency t ax p ayment s ,
a i rpor t � re l a t e d l abor content of tr av e l ag ency cons truc t i on ,
.
valu� o f t ime s aved by t h e � i rp o r t ., · and imp ac t on comme r c i a l
and indu s t r i al l and valhe s � · Add i t ion*l ly and mo s t · im

importan t ly , there a r e incr ement a l r ev enue s g a ined by l o cal

merchant s , manJ fa c turer s , and tra d e r s who have s i gn i f i c antly
b r·o adened the mark e t av ai l ab l e for the i r produc t s via th e
a i rp o r t . Th i s means intremen tal a dd i t ions of emp l oy e e s and
p ayrol l s , tax payment s , and l o c a l pur ch a s e s of o t_her g o o d s

and s e rv i c e s , It i s d i ff i cu l t t o e s t ima t e a c cur a t e ly the

po t ent i a l ni�gni tude of th i s imp a c t on th e marke t ar e a
e conomy ,

An inter e s t ing ex amp l e o f an a i rp o r t b e ing the

eco nom i c p ivo t a l po int �o"r a commun i ty i s found in B angor ,
Ma ine , Thi s t i ty o f 4 0 , 0 0 0 r ec e iv e d a s evere shock i n 1 9 6 4
when theri Deferis e S e c r e tary Rob er t McNamar � announc e d th a t

nearby . Dow Air : Force B a s e wou l d b e shu t down . B ang o r ,

a l r e ady d e s � gn a t ed a pov e r ty a r e a , wo ul d now l o s e ano ther

s , o o o j ob s and a $ 2 0 m i l l i on payro l l wi th the c l o s ing of
b ow · { 2 1] , Many of the townsp eop l e b e l i eved McNamara had
s i gned their c i ty ' s d e a th warrant , Th e p eop l e o f Bang o r

s o on r ea l i z e d � however , t h a t the f o rmer Ai r F o r c e b a s e

cou l d b e turned into an a s s e t , Th e b a s e ho s p i ta l . s o on

b e c am e the new c1 ty h o sp i t a l ; and m i l i t ary hou s ing ar eas

were turne d into l ow � income hou s ing proj e c t s . The 1 1

. .

indus tr i a l bu i l d ing s on the b a s e were turned into an

 61
. indus t r i a l p ark . I t took cominun i ty l e ade r s s ome t ime ,

though , t o dec ide wha t to do w i th Dow ' s b i gg e s t a s s e t - - a

runway 3 0 0 f e e t wi de and 1 1 , 4 4 0 f e e t l ong . . I n 1 9 6 8 , No rman

Kay , a N�w York r e a l e s t a t e deve i op e r , f ina l l y fi gur ed out

how to u s e the a i rpo r t . He deve loped B angor � s new a i r f i e l d
i n t o a d iver s i on ba s e fo r the conge s t ed a i rp o r t s o n the
e a s t c o a� t , p r in c ip a l l y New York ' s . Wh en K ay p rov id ed the
thre e e s s en t i a l s e rv i c e s - - a U . S . Cu s t oms Of f i c e , food
c a t �i ing fac i l i t i e s , and the t ax - f r e e bonded fu e l u s e d by
i n t e rnat ional a i r c a r r i e r s - - Pan Am de s i gnated B an g o r a s · i t s

pr ime al t ern� t e t o Kenne dy I nt e rn�t i on a l A irp o r t [ 2 1 ] .

F i f ty o the r for e i gn an d dome s t i c a i r l ine s fol l owed Pan Am ' s
l e ad . I n 1 9 7 3 , . Ban g o r hand l e d over 4 0 0 , 0 0 0 p a s s en g e r s ,
· mak ing i t the s ixth b us i e s t entry po int into the Uni t e d

S t a t e s [ 2 1] .

. T h e r e s u l t o f a l l th i s a c t iv i ty i s a · b o om t o B ango r .
. .

Ov er _ 2 , 0 0 0 p e op l e a t t r ibute the i r emp l oyment to the new

ent erp r i s e . Th e c i ty · o f B ang o r rec e ive s l anding f e es from

the a i rpo r t , a p e r c en t a g e of the cus toms co l l e c t i on , and a
p enny tax on e ach g al lon o f j e t fue l s o l d . Ab out 6 0 0 n ew

mo t e l ro oms have b e en bu i l t [ 2 1] � Wha t cou l d have b e en a

r e al di s a s t e r for � ango r has turn ed . into a r e al opp o r tun i ty .

 CHAPTER V

THE SOC I O - E C ONOM I C IMPACT OF SMALL , NON - HUB ,

· AND. GENERAL AVI AT I ON A i RPORTS

I ntroduc t i on

The s o c i o - e conom i c impa c t . o f the maj or a i rpor t s a t

N e w York , Ch i c ago , o r Lo s Ang e l e s i s r e ad i l y app arent t o

mo s t p e o p l e . Ci o s ing one o f the s e a i rp o r t s for e v e n a f ew

hour s c an cau s e �er ious r ep e r cu s s ions throughou t the

na t i on ' s tran s p o r t a t ion s y s tem . L ik ewi s e , inj e c t ing 7 0 , 0 0 0

add it iona l p e op l e into the j o b mar k e t o f t he s e c i t i e s wou ld

have a s e r i ous e f f e c t upon the loc a l eco nomy .

The imp o r tance o f the s e a i rp or t s i s e a s y to

env i s ion . · Bu t , what ab ou t th� smal l a i r ca r r i e r o r g en e r a l

av i a t ion a i rp o r t s e rvi ng many of th i s na t 1 on ' s commun i t i e s ?

·The s o c i o - e conom i c impact s o f th e s e a i rpo r t s a r e , a t b e s t ,

mo r e d i f f i cul t to d e t e rmine accura t e ly [ 2 2 ] .

The l ac k o f s cho l a r l y a t t en t i on to g eneral

av i a t i on is r a th er surpr i s ing when one cons i d e r s
i t s impo r t anc e . Th i s imp o r t ance i s s ub s tant i a t e d
b y any conc e ivab l e m e as ur e o n e car e s to make ,
whe ther numb er o f a i r c r a f t , m i l e a g e or hour s .
f l own � pas s eng e r s car r i e d , l anding s or t a ke o ff s ,
o r r a te o f gro wth .

The r e a r e s eve r a l r e a s ons f o r t h i s c i rcums t anc e .

F i r s t , s ince the op e ra t i o n o f the s e a irpo r t s i s on a much

sma l l e r s c a l e , the quant i f i ab l e i t ems are much sma l l e r and

mo r e d i f f i cu l t to d e t ermine . S e c o nd , t he s e sma l l a i rp o r t s

62
 63

u sual ly do n6 t have the fund s nec e �s ary to c arri out the

. .

ex tens ive survey s and anal ys e s o f da t a requ i r ed for · an

. in - dep th eva lua tion of econom i c imp ac t . T h i s do e s no t

imp ly , .however , tha t s ome e ffor t s hould no t b e taken to
eva � u � i e the economic i�p �ct o f the a i r � o r t . On the
co ntrar r , ev e ry e ffbrt �ho�l d b e made , wi thin th � · budg e tary

l i�i t s . , to evaluate the impac t . F i na l l y , the p r imary ,

� 6 ·
. s e condary , a d t er t i ary s o c i o - ec nom i c imp a c t s o f the s e .
.
sma l l e r a i rpo r t s t end to b e sma l l , a l though. no t ins ign i f i ­
cant . The pr imary · imp o r t ance · o f the s e communi ty a i rpo r t s ·
may we l l l i e in the area o f "o ther · imp a c t s . " As s ta t e d
pr ev i ous ly , the s e " o ther imp ac t s " c an b e ob s cur ed · b e cau s e in
mo s t c as e s they ar� very d i f f i cu l t to quan t i fy and · eva l�a t e
in a s t �t i s t i ca i ly meaning fu l manner .
Th i s chap t e r , wi th the a i d o f Chap t e r s I I and I I I a s
b a ckg r ound , wi l l p r e s ent d a ta t o . help answe r the que s t io n :
Wha t i s the s o c i o .-·econom i c imp a c t o f a sma l l communi ty
a i rp o r t ?

Pr imary S o c i o � e conom i c Imp a c t (Airp or t - Sp e c i f i c )

G en e r a l av i at i on a irpor t s vary - g r e a t ly in s i z e . On

the t op end o f the s c a l e are tho s e such a s Van Nuy s o r

Torranc e � C a l i f � rni a , and Op a - l ocka , F l or i da , wh i ch have
4 0 0 , 0 0 0 + op e r a t ions annua l ly and r ank among . the t en bu s i e s t

a i rpo r t s i n the coun try I S] . The maj o r i ty o f g en e r a l

av i a t ion a i rprir t s � howeve r , are t h e typ e wi th 2 0 , 0 0 0 t o

s o ; b o o op e r a t i ons p e r year _ F o r the purp o s e s o f . th i s

 64

analys i s , t h e terms sma l l and non - hub a i rp o r t a r e a s d e f i ned

by the C iv i l Aeronaut i c s Board ( CAB ) . That i s , a sma l l hub
a i rpo r t i s one wh { ch enp l ane s no mo re . than . 2 4 % bu t no t l e s s
tha·n . 0 5. % o f the t o t al numb e r o f pas s eng e r s enp l aned by a l l
the CAB c er t i f i c a t e d a i r carr i e rs . A non - hub a i rp o r t i s one
th� t e np l an e s l e s s than . 0 5 % o f the to tal riumber of
· p a s s eng er s [ 1 6 ] . Con� er s e ly , the s e ai rpo r t s may emp l oy · from
two o r thr e e p er s o n s up to 2 0 0 o r 3 0 0 p e r s ons .
A i rp o r t emp l oy e e s may inc lude such p e op l e as the
f ix ed b a s e op era tor ( FBO ) , s e rv i c emen who maintain the run �
way s and e l e c tronic equ ipment , FAA p e rs onne l , a i r l ine
p er s onne l , s e c re tar i e s ; and an a i rpor t · manag er . An FBO is a
r e t a i l f i rm tha t s e l l s _ g eneral av i at i on produ c t s o r s e rv i c e s
a t a n � i rpo r t . the s i z e and s erv i c e s o f fer�d by FBO ' s vary
abou t a s much a s the s i z e and ac t ivi ty of a i rpo r t � . S ome o f

t h e s e rv i c e s a n FBO might p r ovide i nc lud e a i rcraft a i rframe ,

eng ine and/ or av ion i c s r ep a i r s , f l ight train ing , a i r t ax i
s erv i c e and cha r ter fl ight s , a i rcraft s a l e s , fue l and p a r t s ,
a i rcraft s to ra g e , and ai rcraft ex t � r i o r and/ or . · int e r i o r
mod i f i c a t i on s . To prov i d e the s e s e rv i c e s requ i r e s the
s k i l l s of av i at io n me chan i c s , f l i ght ins truc to r s , and a i r ­
craft s a l e smen .
S ome a i rpor t s ma inta in conce s s i on s a t the t e rm inal .
The s e may inc lu d� re s t aurant s , news s tand s , g i ft and · b o ok
s hop s , and c ar r ental �g enc i e s .
Reg ardl e s s o f i t s s i z e , mo s t a i rp o r t s emp l oy s ome o f
the s e type s o f · p eop l e , . The s e · ind iv idua l s a l l . make
 65

contr i bu t ions to the l o cal e c onomy . Mo r e imp o r tan t ly , many

. .

o f th e s e p e o p l e wi th t he i r spec i a l i z e d s k i l l s may no t have

s e t t l ed in t h e communi ty ha d i t no t b e en for the a i rpo r t �

T � e s e emp l oye e s and thei r fami l i e s are inj e c t i ng money into

.
the commun i ty ' s e conomy .

Al s o iri<; lud ed in .t he pr imary impac t o f . the com ­

mun i ty a i rp or t are l o c a l t ax. and s a l e s t ax payme n t s and

cap i ta l inve s tment exp endi tur e s . F i na l l y , l i ke any o ther

bu s ine ·s s in the commun i ty , the a i rpo r t mu s t pu � chas e i o c a l

g o o d s a n d s e rv i c e s ( s uch a s j an i t or i a l s e rv i c e s ) . Th i s ,

too , a i d s the · e c onomy .

S e c o ndary �oc i o - econom i c I mpa c t s (Airpor t - Re l a t e d )

Sma l l c ommuni ty a i rpor t s have a s e c o ndary l eve l of

imp a c t up on the commun i ty j us t as the maj o r a i rpor t s , bu t on

a smal l e r s ca l e , Here a g a i n , bu s ine s s e s such as ho t e l s ,

mo t e l s , trav e l �genc i e s , and the ir r e l a t e d cons tru c t i o n

a c t iv i t i e s owe s ome of the ir bus ine s s to a i rp o r t s . Th i s

l eve l o f imp ac t i s o f p ar t i cu l ar s i gn i f i c anc e i n r e s o r t

l o c a t i ons whe r e the r e are a cons i derab l e numb e r o f tran i i t

a i r t r ave l e r s . An examp l e o f t hi s wou l d b e t h e imp a c t o f

t h e a irpo r t a t Wal t D i sney Wo r l d in F l o r i da .

T e r t i ary Soc io - e c onom i c I mpa c t s (Ai rpo r t - I nduc e d)

As wi th t he l a r g e r a i r carr i er a i rp or t s , the sma l l

commun i ty a i rp o r t s a l s o provide a t e r t i ary imp ac t . Th i s i s

the r e su l t an t o f p r imary and s e condary imp a c t s t imu l a t i on o f

 66
r e curr ing wav e s 6 £ e c o nom i c imp ac t . Th e s e induced imp ac t s

cons i s t o f s t imu l i to emp l oyment and payto l l . E a c h emp l oy e e

in t h e p r imary o r s e condary imp a c t l eve i s cau s e s indti c e d

emp l oyrn eiit and payr o l l do l l ar s in t h e who l e s a l e and r e t a i l

. trade , f inance and bank ing ; g ov e rnmen t , and s o f o r t h . As

p r ev i ou s l y no t e d , t h e s e phenomena a r e c a l l e d the emp l oyment

and inc ome mu l t ip l i er e f f e c t s .

Other Soc i o - e c onomi c I mp ac t s

At tr a c t ion o f N e w I ndu s try and Expans i o n o f P r e s ent I n du s t ry

Wh i l e none o f the f i r s t thr e e l ev e l s o f imp ac t may

b e v e ry l arge fo r the smal l e r a irpo r t s , ne i th e r ar e the

commun i t i e s th es e a i rpo r t s s erve . The maj or impac t o f a

sm a l l g eneral av i a t i on a i rpo rt i s no t the pr imary , s e condary ,

or t e r t i ary l ev e l , · bu t ra ther the c a t e g o ry o f "o ther

impac t s . ' ' Th i s i s the ar e a wh i ch is mo s t d i f f i cu l t to

qu an� i fy ; howev e r � it is a very s i gn i f i c ant and v i t al ar ea

wh i ch mu s t b e c o n s i dered ,

Prob ab l y the mo s t s i gn i fi cant contr ibu t ion an a i r ­

p o r t c an mak e to a c ommun i ty i s the a t t r ac t i on o f indu s t ry . .

Am e r i can bu s i ne s s e s own o r op e r a t e mo r e than 4 5 , 0 0 0 a i r ­

craft [ 8 ] , The r e i s one ma j o r r e a s on for a comp any to

o p e r a t e an a i rp l ane - - i t he l p s the c omp any be more p r o duc t ive

arid c omp e t i t ive . I t only s t ands to r e a s on tha t any c omp any

wh i ch op er ate s an a i r cr a f t woul d be inc l fned to i o c a t e i t s

fa c i l i t i e s n ear an a i rp o r t ,
 67

L e onard Wheat · fr om the Economic Devel opment Adm in i s ­

trat i on , U . S . Dep ar tment o f Comme r c e , ha s ex t en s ive ly
. .
. r e s earched the c au s a l fac t o r s for e c onomi c g rowth [ 2 3 , · 2 4 ,
25] . p r imar i ly , · h i s wo rk has focu s e d o n c i t i � s o f 1 0 � 0 0 0 to
.
5 0 , 0 0 0 p opul a t i on . Of 23 l o ca l fac to r s Whe a t inv e s t i g a ted ,
1 6 we r i s i gn i fi��h t l y r e l a t e d to giowth in the s outhe a s t and
.
s outhw e s t - . - the " stinb el t . " Cau s a l f ac to r s are tho s e f a c t o r s
wh ich , a t l e a s t in p ar t , c au s e fa s t or s l ow g�owth � Non ­
c aus a l fact 6 r s ar e tho s e fac t o r s �hi ch act chi e fly , i f �o t

exclus iv e ly , a s p rox i e s f6 r s ome th ing e l s e , bu t are

.
neve r the l e s s u s e ful . · whe a t l i s t s e i ght caus a l and e i ght
non � c au s a l fac tor s { 2 4 ] . Th e c aus a l fac to r s are :
. · 1. Martu fa�turlng c an h e l p or h inder growth :
A. Hi gh l eve l s o f cap i ta l - intens iv e manu ­
fa ctur ing s t imu l a t e g r owth in the s outh ea s t ,
p ro b ab l y b e c au s e such indu s try i s gener a l l y fas t
g r owi�g .

B .' H�gh l ev e l s o f l ab o r - intens ive manufactur ing

i nh i b i t grow�h in the s ou the a s t , mainly b e c aus e
l ab o r mark e t c omp e t i t i on d e t e r s new . growth - - and
b e c au s e thi s indus try has s l ow g rowth .
c_ U l t r a - l ow l eve l s o f manufactur ing s t imu l a t e
g r ow th in b o th sub r � g i on s b e cau s e of l ow wag e s . , non - ·
comp e t i t iv e l ab o r marke t s , opp o r tun i t i e s for
commun i ty influence · , and l ack of r e s i s t an-ce· from
ex i s t i � g manuf� ctur i�g .
 68

2. Air s erv i c e ; e sp e c i al ly a t an a i rpor t l o c a t e d

wi thin · 2 5 or 3 0 mi l e s (bu t he l p ful ou i to 5 0 mi l e s ) , h e l p s

g r owth more �h�n any o the r fac tor - - by fac i l i t a t ing con t a c t
. .

_b e tween b ran�h p l an t s and h e adqu ar t e r s and wi th · o ther

bus ine s s e s .

3. Inter s t a t e sys t em highways , i f l o c a t e d wi thin ·

ab ou t e i gh t m i l e s , help growth - - ma inly in the s ou the a s t - - by

. o f f e r ing fr e i ght s av ing s � o ne� manufac tur ing .

4. Co l l eg e s prac t ical ly guaran t e e � a s t growing - - du e
t o c l imb ing enrol lment s - - bu t non - co l l e g e c i t i e s a r e no t
n ec e s s ar i ly s l ow .
5. Wage s , i f l ow , a t t ract manufac tur ing and th e r eby
help growth but m a inly in the s ou thea s t ( l ab o r - intens ive
manufac tur ing ) .
6. Prope rty tax e s , i f l ow , a t tract manufa c tur ing
and thereby help g rowth but mainly in the s outhwe s t
( c ap i t a l - intens ive manuf ac tur ing ) .

7. N on - wh i t e popu l a t i on perc en t age s , i f l ow ,

a t trac t manuf ac tu r i ng and ther eby .he lp growth , e spec i a l l y
in the d e ep s o u t h whe re the h i g he s t no·n - wh i t e p e r c en t ag e s
g ener a l l y exc e e d 2 0 % .
8. Un empl oyment r a t e s , if low , help growth - -m a i nly
in the s ou the a s t - - b ec aus e low un emp l oyment a t t rac t s j ob
s e eke r s and high unemp l 6yment l e ads to outmi gr�t i on .
The non - c au s a l f ac to rs are :

1. Bus ine s s impo r t ance go e s w i th l ow growth in the

s o �thea s t p r imar i l y b e c au s e non -�anufa cturing c i t i e s t end to

 69·
have l ow bu s ine s s · · . impo r t anc e , but p e rhap s a l s o b e c au s e

bu s in e s s , l ik e manuf ac tur ing , c ontr i bu t e s t o t h e l ab o r

marke t comp e t i t i on .

.2 . Trade impor tance go e s wi t h l ow growth in the

s o u thea s t fo r the s ame r e a s ons . ·

3. Sc hool ing , wh i ch " appa r e n t l y i s a proxy for

rur al -urb an fa c t or s , ha s opp o s ing r e l a t io n s h ip s to growth in

the t�o subre g i ons :

A. Low p er c e n t a g e s o f · c-h i l d ren ( a g e s 1 4 - 1 7 ) in

s c ho o l go w i t h high growth in the s ou the a s t whe re

manufac tur i ng i s · i abo r - int ens ive a�d p r e f e r s rur al

l o ca t i o n s ( l ow wag e s ) .

B. H i gh p e r c en ta g e s go w i t h h i gh gr o�t h in the

sou thwe s t whe re manuf ac tur i ng is c ap i t a l - intens ive

and p r e f e r s urban p l a c e s .

4. D i s tance to ne a r e s t maj or SMSA ( 2 5 0 , 0 0 0 or mo r e ) ,

app ar ent l y a proxy for wag e s in the s ou th e a s t , but for

r e g ional a s s e t s in the s ou t hwe s t , a l so ha s opp o s ing r e l a ­

t i on s h i p s to gr owth .

5. Populat ion o f n e are s t maj o r SMSA i s l inke d to

growth in the s outhwe s t - - hi g h popul a t i on , h i gh growth - ­

p robab l y b e c au s e of c ommon caus at i on : r e g i onal mark e t s and

.
r e s ourc e s s t imu l a te b o th the SMSA and surr ound ing non ­

me tropo l i t an c i t i e s .

6. G r ow t h r a t e o f n ear e s t maj o r SMSA i s l ink ed t o

non - m e t r op o l i t an g rowth in t h e s ou thwe s t , a g a i n through

common c au s a t ion .
 70

·7 . P r i o r g rowth ( 1 9 5 0 - 6 0 ) i � l ink ed to sub s equent

( 1 9 6 0 - 7 0 ) gr owth - - s t rong l y i n t he s ou t hwe s t and we.akly in

the s ou t h e a s t - - t hroug h h i dden fac t o r s affe c t ing gr owth in

bo t h p e r iods .

8 .- P r i o r ne t m igra t i on ( 1 9 5 0 - 6 0 ) i s s imi l ar l y

l i nked to s ub s e quent growth in t he "s outhwe s t .

Wh e a t rank s hi s 1 6 s i gni f i cant f a c t o r s in an e s t i ­

mated order o f impo rtance . Th i s i s s hown in Tab l e 2 1 . · It

i s int ere s t ing to no te tha t _ a i r s e rvi c e heads the l i s t as

th e mo s t impor tant fac to r r e l a t e d to g r owth .

Dec e n t r al i z at ion i s a charac t e r i z a t i on of Ame r i c an

bu s ine s s to day . Department o f Comm e r c e f i gur e s ind i c at e

t ha t s ince 1 9 5 4 , 9 0 % o f t h e new p l an t s i t e s hav� b e en

l o c a t e d out s i de o f the coun try ' s 2 2 . maj or metrop o l i t an

c ent e r s [ 2 6 ] , Fur thermo r e , s i nce 1 9 7 0 , emp l oymen t in a l l

maj o r i ndu s t r i e s excep t gov ernme n t has grown a t a fas t e r

p a c e in rur a l c oun t i e s , wh i c h inc l ud e s towns and sma l i

c i ti e s , than iri l a r g e urban are as [ 2 7] . The Fantus Comp any ,

a New York con su l t i ng f i rm , b e l i ev e s t ha t the s e rur a l a r e a s

o f t h e s ou t h and we s t wi l l acc ount for 5 5 to 6 0 % o f t h e new

manu f a c tur i ng emp l oyment . in 1 9 7 6 [ 2 7] . L e onard Y a s e en ,

Cha i rman of th� Fantus Company , exp ec t s th i s t r end t o

a c c e l e ra t e a s p l an t s in the c entra l s t a t e s and t h e n o r th e a s t

b e come mo r e and mo r e ant i qua t ed and manag ement mu s t d e c i d e

�he r e to bu i l d the company ' s n e w f ac i l i t i e s [ 2 7 ] .

The dec entra l i z a t i on o f bus ine s s has a c omb ined

caus e � and � e f f e c t r� l at i o n s hip w i th the incr e a s �d �s� of

 71

Tab l e 2 1 , Comparat ive Ra t i ng s f o r Fac t o r s

Re � a t ed to · Growth { 2 4 ]
· Rank Factor Sou the a s t Southwe s t south To tal

( � ) A i r S e rv i c e 26 18 23 67
( 2 ) Un emp l oyme�t . Rat e 25 1 25 51
( 3 ) Pr i o r Growth 4 18 . 22 44
( 4) Pr op e r ty Tax e s 11 18 13 42
( 5 ) Manu f a c tu r ing ,
N e g at ive S i de 10 14 15 39
( 6 ) I n t e·r s t a t e H ighway ·
Sys t em 24 3 11 ' 38 ·
· t · 7 ) C � l l eg e � 7 14 16 37
· ( 8 ) D i s tan c e . to Maj o r SMSA 0 21 12 33 .
( 9 ) . Wag e s 8 7 9 24
( 1 0 ) Ra c i a l Mi x 7 7 6 20
·

( 1 1 ) Pr ior M i g r a t i on 0 8 4 12
( 1 2 ) H i gh S choo l P e r c en t ag e . 3 2 4 9
( 1 3 ) · Manu f a c tur in� ,
Po s i t ive S ide 5 0 4 9
( 1 4 ) P e r c ent in S choo l 4 4 0 8·
( 1 5 ) Bu s in e s s and Trade ·
7 I 0 8.
( 1 6 ) SMSA P o pu l a t i on
and G rowth 0 . 5 0 5
 72
bus in e s s a i r c r a f t . The incr e a s ing ava i l ab i l i ty and

e f f e c t iv en e s s o f bus ine s s a i r c r a � t have h e l p e d . make the

. s hi f t away fro� · me tropo l i t an a r e a s f e a s ib l e .

One prob l em r e sul t i ng from d e c en t ra l i z a t i on i s

c ommun i c at i on . Even wi th al l o f to day ' s e l ec tro n i c

· t e l e - commun i c a t ions s y s t ems , bus in e s s s t i l l r e l i e s he av i l y

6n fic � - to - f ac e manag emen t commun i c a t i 6ns . I f th e comp any ' s

fa c i l i t i e s are wi d e ly d i sp e r s ed , face - t o - f a c e c ommu n i c a t ion

can invo l ve a g r e a t deal of execu t ive trave l t ime . Th i s is

whe r e air tran spo r t a t i on , part i cu l a r ly tha t provi ded by

g en e r a l avi a t i on a i r c r a f t , ent e r s the p i c t ur e . I n th e wo r l d

o f bus in e s s and c ommer c e , t ime i s mon ey . By ut i l i z ing a i r

tran s por tat ion , trave l t ime c an b e s i gn i f i c an t l y r edu c e d .

I n s ome cas e s , g en e r a l avi a t i on a i r c r a f t c an d e l iver the

ex e cu t iv e s r i g ht to the p l ant ' s fr on t door . As shown in

Tab l e 4 , pag� 1 7 , manager i a l v i s i t s to b r anch fac i l i t i e s

nor�a l ly c on s t i tu t e s the maj o r u s ag e o f the c o r p o r a t e a i r ­

craft . On the ave r ag e , bu s in e s s a i r cr a f t are u s e d for the s e

man ager i a l v i s i t s · 3 2 , 3% o f th e t ime [ 1 2 ] . Two o th e r a r e a s of

bus ine s s a i r c ra f t u s ag e , wh i c h are c l o s e l y r e l a t e d to the

f i r s t , ex e cu t ive a t t endan ce a t conference s and s a l e s

dev e l opment tr ip s , c omp o s e 2 2 . 4% and 1 8 . 1% us ag e ,

r e s p e c t ive l y [ 1 2 ] .

The imp o r t anc e tha t c o rp o ra t i ons p l ace on th e i r

e x e cu t ive s ' t ime i s s e en in the fac t that the corpo r at e a i r ­

c r a f t i s us ed 7 2 , 8% o f the t im e to t r ansp o r t the s e

execut ive s { 1 2 ] . The r ema in ing t ime i s us ed for cus tomer

 73
transpo r tat i on , pa r t s a nd p r o duc t s d e l ivery , pub l i c s e rv i c e ,

and mi s c e l l an e o u s u s e s .

Many p l an t s have kep t the i r a s s emb ly l i n e s open by

f l y i ng in c r i t i c a l l y n e e d e d raw m a t e r i a l s , such as Ten�e s s � e

Appa r e l Comp � ny di d .
__ The · a i rp o r t and a i rp l arie have c ome to

the re s tue on two s �pa rate o c c a s io n� for the T e nne s s e �

App arel Comp any in Tu l l ahoma , T e nne s s e e [ 2 8 ] . The f ir s t

i n � tanc e o c c ur r e d when t he comp any had di ff icu l ty in .

o b t a in ing a sp e � i f i c typ e o f thr ead from the p r o ducer in

No rth Caro l ina . B e c au s e th e thr ead was to b e u s e d in th e

manuf ac ture of · m i l i tary un i f o rm s , no sub s t i tut i o n s · were

a l l owe d . T enn e s s e e App arel wa s , ther e f o r e , fa ced w i th a

wo rk s t oppa g e i f a · new sh ipment of .thr ead did no t arr i v e

b e fo r e the i r p r� s ent s to c k w a s dep l e t e d . T h e comp any ' s

pr imary supp l i e r (who u s e s hi s own a i r c r a f t ex tens iv e l y in

his bu s i n e s s ) f l ew from Na s hv i l l e to N o r th Caro l ina to p i ck

up the thre ad at the f a c t o ry and then f l ew it d i r e c t l y to

the p l an t in Tu l l ahoma . The supp l i e r and thr ead a r r iv e d

in t h e " n i ck - o f - t ime " a s t h e p l ant wou l d have ha d to c l o s e

do�n l e s s than one hou r l a t e r .

The s e c ond i n s tanc e o c curr ed when Tenn e s s e e App a r e l

ran l ow · on z i pp e r s . Th e z ipp e r s we r e n o rmal ly broug h t in a

truck fr om L ong I s l and C i ty , New York , b u t in thi s c a s e ,

the r e was no t enough t ime for th i s m e thod of sh ipm�nt . The

ed by a i t fre i ght to N a shv i l l e whe r e the

. z ipper s were s h ip�
s upp l i e r p i cked them up and f l ew them to Tu l l ahoma . Ag a i n ,

thi s o c curr ed a i th e e l even th hour .

 74

Th i s , o f c our s e , wa s a b ene f i t t o the Tenn e s s e e

Appa r e l C omp any , bu� i t a l s o ind i r ec t ly b enef i t e d the

c ommu� i ty . Had �he c 6 mp any cl o s e d down du e to a l a ck o f

mat e r i a l s , t h e emp l oye e s wou l d , o f �cur s e , b e l a i d o ff .

Th i s wou l d m e an smal l e r payche cks , · � hu s l e s s d i s po s ab l e
income t o b e sp ent in the · cornrnun i ty .
. .

For a hypo the t i ca l c a s e , cons i d er a p l ant

emp l oy i ng 4 0 0 p e op l e , p a i d an hour ly wag e o f $ 3 . 5 0 . For a
p l ant thi s s i z e · the ove rhead � ou l d ave r ag � $ 5 , 0 0 0 p e r day
and (dep endi ng on the pro duc t and demand l ev e l ) the pr o f i t
l o s s may a l s o a � erage $ 5 , 0 0 0 p e � d � y . I t i s r e ad i l y
app �r ent , und � r the s e c i rcums tanc e s , why a p l ant manag er
wou l d l i ke t o b e c l o s e t o an a i rp o r t . The p e r � day wag e l o s s

i n th i s s ame ca s e wou l d b e $ 1 1 , 2 0 0 . A two - day p l an t c l o s ing

�ou l d r e duce the p ayr o l l by $ 2 2 , 4 0 0 . I f the econom i c

mu l t ip l i e r for t h e communi ty we r e 1 . 5 to 2 . 0 , t h e t o t a l
e f f e c t wou l d b e $ 3 3 , 6 0 0 to $ 4 4 , 8 0 0 , r e s p ec t iv e l y . Tha t ' s

$ 4 4 , 8 0 0 l e s s to s p end at t he l o c a l gro c e ry s to r e , " s ho e s t o r e ,

mov i e th e a te r , hardware s to r e , o r dep a r tment s to r e . Th i s

s ame c i rcums t ance cou l d o c cur i f a v i t a l p i ec e of machinery

b roke down whi ch .wou l d c l o s e · th e p l an t . A i rc r aft have b e en

u s ed many t im e s to fly in n e eded p ar t s and t echn i c i ans .

Comp an i e s hav e al s o us ed the i r a i r c r aft to b r ing in
t e chn i c i an s and p ar t s to r ep a i r v i t al mach in ery . I n th i s
way the comp any c an r e duc e the down - t ime o f the ir p l an t .
The s e aie j u s t a few r e a s ons comp ani e s u s e a i r c r af t in the i r

bus ine s s a c t iv i t i e s .
 75
S o m e o f the f i nd ings fr om the F e d e r a l Av i a t i o n

1\ dm i n i s tra t i on ' · s r e p o r t , "Th e A i rpo r t - - I t s I n fluence on t h e

Commun i ty Economy , " i l l u s t r a t e fur ther t h e r e l a t i o n sh ip

be twe en av i a t io n and bu i ine s s · [ 2 9 ] . I n the repoi t , the y

s t a t e d , "The · ex i s tenc e o f an adequa t e a i rp o r t wa s _a s trong

fa c t o r in a t trac t i ng new indu s t r i e s to each o f the com -

mun i t i e s surveyed . " Commun i ty l e ade r s and many c omp any

ex e cu t iv e s s t a t ed tha t the av a i l ab i l i ty o f a i r tr an s p o r t a ­

t ion was a s t r ong f ac tor in dec i s ions to l o c a t e in th e

surveye d a r e a s . Fur thermo r e , i t was . d i s cov � f e d ihat th e

av a i l ab i l i ty o f a mo dern a i r po r t was e s s en t i a l to · the .

re t e nt ion o f many o f the exi s t i ng indu s t r i al e s t ab l i s hmen t s .

The s tudy found tha t through the ye ar s , a i r t r anspo r t at io n ·

h a s · b e come incr e a s ing l y mo re imp o r t an t to such c omp ani e s by

he lp ing .them to r e t a in and improve the ir comp e t it ive

po s i t i ons in l o cal , nat i onal , and int ernat ional marke t s .

F i nal ly , the FAA s tu dy iden t i f i e d the a i rp o r t as a v a l ua b l e

a s s e t t o l o c a l indu s t r i e s ' maint enanc e pro g r ams . Th e s tudy

co nc lude d tha t :

A i r t r an s po r t a t ion ha s made i t po s s i b l e for k ey

indu s t r i e s to · k e ep equ ipment down - t ime. to a m in imum
by rap i d r e p l acement of supp l i e s and p a r t s , thu s
r educ ing the n e e d for a l ar g e p ar t s invent ory .

The sma l l we s t T ex a s c ommuni ty o f H e r e ford i s a g o o d

ex amp l e o f t h e influ enc e a n a i rp o r t c an ex e r i [ 2 9 ] :

The a irp o r t wa s the fac t o r tha t " t ipp e d the

s c a l e s " in H e r e f o rd ' s b e ing cho s en ov e r s im il a r
l o c a t i o n s in w e s t T ex a s f o r con s t ru c t i on o f a
Ho l ly S� g ar p l an t .
_
 76

Th e Here ford are� was growihg a t a rap id r a t � . Th �

devel opment o f a c ommun i ty a i rpo r t was j u s t one natural s t ep

in a c ompr ehens ive commu n i ty pro gr am . Alone , dev e l opment o f

t h e a i rp o r t m i ght no t have had muc h imp ac t o n t h e commun i ty

e conomy ; howeve r , comb ined w i t h o ther ac t i on s · t ak en . by the

c ommun i ty to expand i t s e c onomy , the a i rp o r t ha·s proven · o f

gr e a t va lue b y inc r e a s ing inc om e , emp l oyment opp o r tuni t i e s ,

· and diver s i ty to the commun i ty ' s e conom i c s truc tu re . The

s ame g enera l conclu s i ons c an be drawn ab out the o ther

c ommun i t i e s s u rveyed by the FAA s tu dy . The c i t i e s inc luded

in the s tudy we r e Sum t e r , South C ar o l ina ; Hayward ,

Ca l i f o rn i a ; F r e d e r ick , Maryl and ; and F a i rmont , M i nne s o ta .

The G en e r al Av i a t i on Manufa c tur e r s ' As s o c iat i o n

( GAMA ) has comp i l e d a l i s t o f b r i e f ca s e h i s to r i e s wh i ch

d emons t r a t e the inf l u en c e a i rp o r t s and a i r transp o r t a t ion

have on a bus in e s s . Th e c a s e hi s t or i e s c over 16 repr e ­

s entab l e commun i t i e s acro s s the country and ar e · s hown in

Re f . I 7] .
The s ma l l communi ty a i rpo r t s e rve s as a c a t a l y s t and

a nuc l eu s f o r c omme r c i a l , indu s t r i al , and r e s i dent i a l

expans ion i n t h e surround ing ar e a . Attr a c t ing new bu s ine s s

and indu s t r i a l dev e l opment t o a commun i ty , however , i s a

v ety d i ff i cu l t and comp l ex t as k . Suc c e s s ful indu s t r i a l

r e cru i tment u sual ly r equ i r e� an intens ive pr 6mo t i on a l

p r o gram p o s s i b l y e x t end i ng o v e r s ev e r a l year s . Commun i ty

o f f i c i a l s s hou l d con s i d e r prov i s i on s for an a i rpor t in the

e ar ly s t �g e s of a c ommun i ty ' s deve l opm ent p r o g r am so tha t

 77

the fac i l i ty wi l l b e r e ady when needed . Th i s wi l l a l s o help

insur e the a i rp o r t ' s comp a t ib � l i ty w i th sur round ing ar e a s

and h e 1p r e dti c e th e po s s { b i l i iy o f di s - b e ne f i t s a r i s ing fro�

the a i rp o r t .

Airp o r t s can b e c ome the fo cu s for a l a rg e p l anned

iridus tr i a l development ar e a � Bus i ne s s and indus t � i a l coh -

· centr a t i on s c a n l o c a t e wi th i n a f ew minu t e s dr ive to the

a i rpo rt . I n sma ll c ommun i t i e s , the re l a t iv e l y s ho r t ground

trave l di s t ance to al l po int s in the l o c a l ar e a may m � ke i t

unnec e s s ary t o deve l op indu s tri al ar e a s n ex t t o the a i r �

poit s ; ' bu t , h i s tory ind i c a t e s tha t indu s try do e s tend t6

l o c a t e in the a i rp o r t v i c in i ty . Larg er c ommun i t i e s , how ­

ever , �an b ene f i t by deve l op ing p l anned indu s tr i a l di s tr i c t s

o n and a b ou t th e i r a i rp o r t s . A i rpor t - c ommun i ty acc e s s i ­

b i l i ty wa s c on s i de r e d an imp or t ant p l ann ing e l ement by each

of the commun i t i e s i n the FAA survey [ 29] . The speed and

conv e n i e n c e o f air t r anspo r t at i on c an be fu l ly r e a l i z e d only

wh en the a i rp o r t is mad e d i r e c t l y a cc e s s ib l e to bus ine s s and

indu s tr i a l ar e a s .
. The ab i l i ty o f the a i rp o r t to concentra t e and r e t ain

sp e c i f i c typ e s o f e conom i c a c t iv i t i e s in a l im i t e d
i c env i r on ­
. g eo g r ap h i c s p a c e h a s l ed to a b en e f i c i a l e conom
ment o n the a i rpor t and i n the n ear v i c i n i ty of the a i rp o r t

b oundar i e s . An a s p e c t o f th e e conom i c a c t iv i ty in t h e ar e a

h a s be en that c e r t a in indus tr i e s owned �nd manag � d b y p eop l e

who f l y may t end t o g r av i t a t e tow�rd an a i rp o r t l o ca t i on a s

a co�veni ent way to m a in t a in bu s ine s s contact s .

 78

Wh en the benef i t s to indu s try and comme r c e near an

a i rpo r t are c on s i de re d , the d ev e l opmen t of a irpo r t

i ndu s tr i a i p ar k s b e com e s inc r e a s ingly mor e d e s i r ab l e [ 2 � } .

The fu ttir e dev e l opment · o f mo s t g eneral av i a t ion

a i rp o r t s sho� l d b e finan c e d from fu tu r e a irp o r t .
s urp l u s e s ; thi s . wi l l . r equ ir e the adop t ion o f a i r ­
p o r t p o l ic i e s and p r i c ing pr inc ip l e s tha t wi l l
u l t imat e ly g en er a t e such surp l u s e s ·. Organ i z ing and ·

admi n i s t e r i ng a i rp o r t s . as sy s t ems w i l l ma�e i t

po s s ib l e to achi ev e c ond i t i ons o f financ i a l s e l f ­
suff i c i ency .

I f the a i rp o r t i s to b e o p e ra t e d wi thout a de fi c i t
and ob t a in the · s a id f inanc i a l s e l f - suff ic i ency , the r e gul ar

co s t of op e r a t i o n and ma i n t enanc e mu s t be m e t by tak ing fu l l

advantag e o f al l . po s s i b l e s our c e s o f r evenue tha t woul d b e

�v- i l ab l � f r om an a i rp o r t indus tr i a l p a r k i n comb inat i o n

wi th r�gu l a r a i rp o r t comme rc i a l ac t iv i t i e s . The indu s t r i a l

park cou l d b e l oc a t e d on a i rpo r t l and tha t i s · in exc e s s o f

cur r ent ne eds . Th e r e are a numb � r o f i ndu s t i i a l and

c ommer c i al ac t iv i t i e s wh i ch are a t t r a c t e d to and ar e

compa t i b l e wi th a irpo r t s . Such ac t iv i t i e s cou l d inc lude :

a i r c r a f t and a i rc r aft p ar t s · manu fac tur e r s ; a i r fre i g ht

t e rm ina l s , t ru ck 1�g fre ight t erm inal s , and o ther a l l i e d u s e s ;

av i a t i on s choo l s ; · a i r c r a f t r ep a i r s hop s ; warehous e s , � e r i a l

surv ey , and o th e r s im i l ar comp an i e s ; . a� i a t i o n r e s e ar ch and

t e s t ing l ab o r a to r i e s ; a i r l ine s c ho o l s ; au to s t orage . ar e a s ;

park i ng l o t s ; a irpo r t mo t e l s and ho t e l s ; r e s t aur ant s ; t a x i

and bu s t erm inal s ; who l e s al e d i s t r i bu t i on c en t er s ; g a s

s t a t i on and au t o �a s h i�g fac i l i t i e s ; r en t a l o f o ff i c e s p a c e ;

consul t an t s e rv i c e s and f i rm s ; m i l i t ary p r o duc t i �n · o f

 79
equipme nt and p a r t s ; commo d i t i e s such a s shipp ing f l owe r s ,
. .

p e r i shab l e food s , c a t t l e , pharmaceu t i ca l s , e l e c t roni c s ,

h i g h . value . i t ems , and s o fo r th ; and . tonce s s i on s ' tha t r el a te ·
t o avi a :t i on a c t iv i t i e s ·.

The integra t i on o f a P!Operly p l anned a�d o r g an i z ed

indu s t r i a l deve lopment in c onj unct i on with an a i rpo r t s e rve s
a · dua l p�rpo s e . I t can b r ing l ong term e c onom i c b ene f i i s to
the c ommun i ty and t o the a i rp o r t wh i ch s e rv e s it arid a l s o
b r i ng r e l i ef to the pr e s s ing pro b l ems o f a i rpo r t z on ing and

comp a t i b l e l and u s e in the a i rp o r t env i r ons .

Rob e r t Bo l ey in , " I ndu s tr i al D i s tr i c t s - Pr inc ip l e s

i n Prac t i ce , " c i t e s s ix r e l a t e d facto r s influenc ing the
deve lo pment of indu s try in prox im i ty to a i rp o r t s ( 3 0 ] :

1 . H i gh qu al i ty , h i g h c ap ac i ty highway ac c e s s
p ro v i d e d t o s erve �he a i rp o r t . a l s o p rovi d e s d i r e c t
and � f f i c i ent acc � s s t o nearby indu s tr i a l faci l i t i e s .
2 . Op en l and b eyond the inten s e ly dev e loped
s e c t i on s of the urban a r e a s s e rved by the a i rp o r t s
p r ov i de s t he r equ i r ed s p a c e f o r mo dern , ho r i zont a l -
typ e indu s tr i al fac i l i t i e s . .
3 . F l a t t e rr a in r equ i r e d for a i rp o r t d eve l op ­
.

ment me e t s the needs o f mo dern , l arg e - s c a l e

indus t r i a l s i t e d ev e l opment .
4. U t i l i t i e s ins ta l l e d to s e rve a i rp o r t s can
a l s o s e rv e ne arby indu s t r i a l fac i l i t i e s .
5 . Ava i l ab i l i ty o f a i r t r an sp o r t a t i on , .
includ ing comme r c i al , a i r cargo , and p r iv a t e l y owned
· bus ines s a i rc r a f t , is a b onu s whi ch r e sul t s from a i r - ·
f i e l d p r oximi ty , e sp ec i a l l y for s e le c t ed indus t r i e s . :
· . 6 . Pr e s t ig e l o ca t i on r e su l t s from th� archi -
·

t e c tura l ly d i s t ingui s he d surround ing s o f t en found in

ma j o r a i rp o r t fac i l i t i e s .

B o l ey make s the val i d o b s e rva t i on tha t a i rpo r t ­

o r i en t e d di s tr i c t s are no t equal ly app e al ing to a l l
indu s tr i e s b e c aus e o f env i r onmen tal charac t e r i s t i c s s uc h a s

no i s e , vib r a t i on , and e l e c t r i c a l d i s turb anc e s , a s we l l a s

 80
he i g ht l im � ta� ions impo s e d on s truc tu re s in the v i c ini ty o f ·

the a i rp o r t .
Th e FAA E a s t ern Re g i on ' s s tudy on , " G en e r a l Av i a t i on
and I t s Re l a t i on s hip · · to I ndu s try and the C ommuni ty , "

r e sul t ed in the fo l l owi n g f �nd ing s . [ 3 1 ] :

1 . F i rms · � uch a s tho s e survey ed or o theiwi s e
inc lud e d i n th i s s tudy , contr ibu t e l arg e ly to the
e c onomy of the a r e a s in wh ich they ar e l o c a t ed .
The r e fo r e , i t i s conc lud ed tha t . the a ir c r aft ,
b e ing n e c e s s ary to bu s in e s s , i s ind ir ec tly an .
e c onom ic a s s e t to the commun i ty . I t fo l l ows tha t
the a i rp o r t i t s e l f i s a d i r ec t ec onom i c a s s e t . ·

2 . The r e a r e do cumented c a s e s whe r e the

ex i s t ence o r no n - ex i s t enc e o f adequ a t e a i rpor t
fac i l i t i e s has b e en the contro l l ing factor in
indu s try dec i s ions to move into or out o f a
commun i ty . The r e a r e numerous o ther c a s e s whe r e
i t was a n impor tant c ontr ibut ing f ac t o r .
3 . The l ack o f a t tent ion to the i ndu s t r i a l
infl�ence on a i rpor t p l anri ing r e su l t s in a s e r ious
shor t c om ing in ac h i ev ing op t imum ind iv i du a l a i r ­
p o r t d ev e l opment as we l l as adequa t e over al l
transp o r t a t i on - p l ann ing .
The r e su l tant econom i c imp ac t o f an indu s try mov i ng

into a c ommun i ty was s hown p r ev i ou s ly in Chap t er I I I .

I ndu s tr i a l growth wi l l produce s everal o ther b ene f i c i a l and
a dve r s e e c onom i c e f fe c t s wi thi n the commun i ty . The adv e r s e

imp a c t s wi l l b e d e a l t wi th i n a l at er s ec t ion . Other b en e ­

f i c i al imp a c t s ' in c lude such thing s a s cap i t a l inv e s tment in

p l an t and equ ipment , con s t ru c t i on ou t l ays fo r i ndu s tr i a l
fac i l i t i e s , c ommer c i al supp o r t ing fac i l i t i e s , r e s i d enc e s ,
and i nc r e a s ed car e e r oppo r tun i t i e s i n non - farm occup a t i o n s .
A s po inted ou t pr ev i ou s ly , an a irpor t i s no t the

p anac ea fo r the commun i ty s e e king econom i c gr owth and

dev e l opme n t . " The r e are many o ther cr i t e r i a wh ich influen ce

 81
p l ant s i t e l oc at ion . The s e inc lude trad i t iona l fac tor s such
as the ex i s tenc e and acc e s s i b i l i ty of marke t s , ut i l i t i e s ,
raw m�ter i a l s , l abor , and t r arispor t a t i on ; ins t i tut i � nal
factor s such a s · the typ e o f g ove rnment and tax r a t e s ; com ­
mun i ty fa c t o r s s uc h a s a t t i tud e s , popu� a t ion s i z e and
dens i ty , and am en i t i e s ( cul tural and r e c r e a t i o nal fac i l i t i e s
and natural env i r onmentai c ond i t ions ) ; per s ona l pr e ferenc e s
such a s the d e s i r e s of manag em ent and the r e s id enc e o f the
owne r s ; and s i te fa c t or s such as l and and bu i l d ing s . Th e r e
are many commun i t i e s wh i ch offer s im i l ar , i f no t equa l ,

advant ag e s to a company d e s i r ing to l o c a t e a new p l ant . The .

dec i s i on wi l l probably go to the commun i ty w i th a smal l

compe t i t ive edge . Th i s " e dg e " c ou l d very we l l be a s trong · ,
hea l t hy a i rpo r t or a i r indus tr i a l park . I t ha s b e en s hown
that many � omp �n i e s do cons ider the ava i l ab i l i ty of an a i r -
p o r t imp o r t ant to the ir l iv e l i hood . I t app ears that any

commun i ty fa i l ing to acqu i re acce s s to an a i rp o r t and the

na t i on ' s a i r t r anspo r t a t i on sys tem cou l d v e ry we l l s t ag na t e .
A s im i l ar op i n i on · was vo i c ed by the Amer i c an Academy o f
Po l i t i c a l and S o c i a l Sc i enc e in 1 9 3 0 , when i t � a i d [ 3 2 ] :
Eve ry commun i ty mu s t have an a i rpo r t i f - i t
i s t o have a sha r e i n the r ap i dly expand i ng com ­
mer ce o f the s k i e s . I t needs an a i rp o r t today
for ex a c t l y the s ame r e a son that i t fi r s t nee � ed
a r a i l road s t a t i on 60 to 70 year s ago . And , 1f
the av i a t ion i ndus try is unab l e t o harid l e the
he avy bu rden of furn i s h ing g round fa c i li t i e s wh i ch
c anno t b e exp e c t e d to p ay for thems e l v e s in the
imm e d i a t e futur e , then c i t i e s mu s t a s sume the
r e s pons ib i l i ty .
 82

J o s eph Fo s t e r re - enfo r c e s th i s in h i s p ap e r , " The

A i rp o r t - A C en t e r of Econom i c Grav i ty , " when he s t a t e s [ 3 2 ] :

At the s ame t ime a s the a i rp o r t has b e �n pro ­

gr e � s ive ly hemmed in by t he s e demog r aphic fac t or s , .
i t ha s a l s � b � c ome an e c onom i c c ent er 6 f . gr�v i ty
w i thin the communi ty whi c h it s e rve s . The a i rp o r t
ha s b e c ome vi tal to t h e gTowth o f bus ines s and
indus try in a commun i ty by p r ov i d ing a i r ac c e s s for
comp ani e s . wh i c h mu s t me e t the d emand _o f supp ly ,
c omp e t i t i on , and expa ns ion o f marke t i ng ar e a s .
The r e i s now l i t t l e doub t that c ommuni t i e s w i thou t ·

a i rp o r t s may b e p l ac ing l imi t a t i ons 6n the ir c ap ac i ty

for e c onom i c growth .

F inal ly , an o f f i c i a l o f the S t a t e o f No r th Caro l i na

in a r e c e nt newsp ap er interv i ew focus ed on the imp o r t anc e

o f the commun i ty a i rpo r t when he s a i d [ 3 2 ] :

Many s t a t e s , count i e s , and mun ic i p a l i t i e s � impl y

do no t unqer s tand the ro l e that a i rpor t s p l ay 1n
. the i r e c onomi c and indu s t r i al fu ture . They do no t
r e a l i z e tha t ava i l ab i l i ty o f a i r t r ans p o r t i s
s hap ing up a s a s i gni f i c ant fac tor i n d e t e rmining
wh ic h �ommun i t i e s wi l l grow and pro sper .

The a i rpo r t might b e c a l l ed the front do o r to a

commun i ty and the bu s i ne s s a i rcr a f t the key w � i ch can unl o c k

t h e door and expo s e t h e communi ty t o a g r e a t many opp or -

tun i t i e s .

Land Va l u e Appr e c i at i o n in Prox im i ty t o A i rpo r t s

Land value on prop e r ty in pr o x im i ty to a i rp o r t s

gen e r a l l y inc r ea s e s . The s ame phenomenon wh i c h o c cur s

· around l ar g e and med ium hub a i rp o r t s a l so o c cu r s ar ound the

sma l l e r a i rp o r t s , a l though no t to the s ame as tronomi c a l

l ev e l . An examp l e o f l and v a lu e appr e c i a t i o n a� ound a

ge ner a l av i a t i on a i rpo rt i s D e l aware , Ohi o . Here , l and

adj acent t6 the new mun i c ip a l a i rp o r t ro s e in value fr om

 83
$ 4 0 0 p e r acr e i n 1 9 6 5 t o $ 7 , 0 0 0 p e � acre i n 1 9 6 9 [ 3 3 ] .
Lo g i c wou l d s e em to d i c t a t e tha t l and value s wou l d inc r e a s e ,
such �s thei have , : when the prop er ty i s l o c a t e d in proxim i ty ·
to an a irpor t . Throughout c i v i l i z a t ion , man ha s . s e t t l ed
a l ong l in e s o f transpo r t a t �on . Th i s happ �ned wi th water ­
ways , then r a i l ways , ne � t h i �hway� , and now a i rp o r t s . · Ther e
_
i s only a l im i t e d · amount o f. l and ar ound an a i rpor t , and the
. .

ec onom i c "Law of Supp i y an d De � and " r e qu i r e s tha t· the pr i c e

inc r ea s e a s t h e de m an d · b e c om e s g r e a t e r .
. .

Unfo r tuna t e ly , the appr e c i at i o n o f prope rty valu e s

in p ro x im i ty to a i rp o r t s ha s w6rked t o the d e t r iment o f �orne
a irpo r t s. . Al l t o o frequen t ly , c ommun i ty o ff i c i a l s have
f a i l ed t o r e c o gn i z e that the airp o r t and the bu s ine s s i t
g enera t e s i s an e conom i c a s s e t that s hou l d b e afforded ev ery
pro t e c t i on p o s s i b l e to a s s i s t in maint a i ning the econom i c
f l e x ib i l i ty o f t h e comniun i t y wh i ch i t s erv'e s . Re gardl e s s o f
. .

th e a irpo rt ' s ownership (pub l ic o r pr ivat e ) , the contr i -

bu t io n wh i ch i t m ake s to the e conomy of the commun i ty ·
d e s erv e s s trong cons idera t i on in p l ann ing commun i ty deve l op �
�ent . F a i lure to r e co gni z e th� � alue o f the a i rpor t and the
prop e r ty ar ound it by commu n i ty o ff i c i a l s c an and . ha s
r e su l t e d in the l o s s o f a irport f ac i l i t i e s . I t i s . para ­

dox i c a l tha t the a i rp o r t shou l d cau·s e the prop er ty

· surround ing i t . to b e come s o pr i z ed that i t thr e a t en s the

a i rpo r t ' s own · ex i s t enc e . Th i s can happen i n s eyeral way s .
I n s om e c a s e s , c i ty o ff i c ia l s have s ac r i f i c e d the a irpo r t in
the name o f i ndus t r i a l dev e l opment . At o ther t ime s , they
 84
.
have s imp ly · fa i l e d to pro t ec t the a irpo r t from encr o achm ent ,

thu s mak ing f l i ght op e r a t i ons ha z ardou s and expans ion to

me e t g rowi n g demand , i mp o s s i b l e . F i n a l l y , t h e r e is the ca s e
whe r e land i s ava i l ab l e for · exp ansion bu � i t i s s o exp ens iv�
·a s to mak e purcha s e ·imprac t i c a l . I n · e s s ence , the . communi ty
l e ade! S ar e ' 'k i l l ing the g o o s e tha t l a i d the · go l den e g g . "
Wi t � � deq � a t e. p l anning _ and fore f hought t h e s e s i tua t i ori s c an
_
b e min :l mi z e d i f no t tu rned to" the a d.v a ntag e " o f th e a irpo r t .
As . men ti on�d p r evious ly , a ir indti s tr i a l · p arks � erve two

· purpd s e s : prov id ing comp a ti b l e l and us e , thu s . minimi � irig

unw:an ted e ncro achment ; and provid ing . adde d · r ev enue to
�u � p o r t a i rport ope ra t i oris . ·

Mi s c e l l aneou s Bene f i t s Prov i ded by the Communi ty Airpo r t

The commun i ty a i rp o r t p r ov i de s many o ther s erv i c e s
t o the c i t i z en s wi thin i t s sphe r � o f influenc e . Many o f
the s e s e rv i c e s · are d i f f i cu l t ' i f no t impo s s ib l e ' to
· quant i fy . Ju s t b e c aus e a b e ne f i t (or fo r that mat t e r , a
di s - b ene f i t ) canno t b e quant i f i ed i s no r e a s on - to d i s r e g ard
it in the con s i de r a t i on of imp a c t .
Wha t value can you · pu t on the s erv ic e s o f a
p h� s i � i an such � � a r ad i o l o g i � t , card i o l o g i s t , o r
p a tho l o g i s t ? S ome c ommuni t i e s , l i ke N e l igh , Ne b r a s ka ,

· � ep end upon the i r a irpo r t for th e inva luab l e s e rv i c e s o f

.
. t � e se me d i ca l spec i al i s t s . I n o ther c a s e s , c r i t i c al ly i l l

p a t i ent s may need to b e a i r - ev a cu a t e d to a l ar g e me tro ­

p o l i t an ho sp i ta l wi th sp e c i a l fac i l i t i e s . How c art a value
 85
b e p l ac ed ·on the l i fe tha t m i ght b e s aved o r the suffer ing

tha t m i gh t b e redu c e d ? Today , a phys i c i an , j u s t a s the

c o rp o ra t e e x e cu t ive , c anno t a fford to was t e h i s va luab l e

t ime i n dr iv ing fr om town t o t own .

The a i r de l ivery for r a d i o a c t ive i s o tope s for

. .

rad i o l 6 gy. and r �d i a t ion th��apy and d i ag rio s i s ha� mad� th i s

te chno l o gy ava i l ab l e t o s rime o f the na t i on ' s �o r e . iur a l ·

ho sp i t a l s . S i nce many o f the � e mat e r i a l s hav e a hal f - l i f e

o f about 7 2 hour s , no ne o f th i s wou l d · b e p o s s i b l e , or at

l e ait f e a s i b l e , wi t hou t . a i r transpo r ta t i on .

Ano t her way _i n whi c h t he a i rpo r t b enef i t s the com ­

mun i ty i s by b r o ade ning the tax b a s e . Obv ious ly , indus tr i a l

dev e l opment wi t h t h e accomp anyi ng popu l a t ion and p e r cap i t a

income g r owth , w i l l incr e a s e prop e r tr , s a l e s , and i nc ome t ax

co l l ec t i on s . I ncr e a s ed popu l a t i on wi l l a l s o _ mean g r e ater

f e d e r a l r evenue s �ar i ng funds . I ncre a s e d · l and v a l u e l e ads ­

to i nc r e a s e d prop"e rty tax c o l l "e c t i o n s i f the commun i ty m a i n ­

t a i ns a current app ra i s a l o f the prop erty . Many communi t i e s

c o l l e c t prop e r ty tax o n the a i r c r a f t b a s e d a t the a i rpo r t .

The v a lu·e o f t he s e a i rc raft may vary anywhe r e from $ 5 , 0 0 0 to

$ 3 , 0 0 0 , 0 0 0 · o r mo r e each .

The commun i ty a i rpor t and a s s o c i a t ed g en e r a l

av ia t i on a i r craf t are ti s e d ex tens ive ly in p ip e l ine p a t r o l ,

a e r i a l crop du s t ing , l arg e r arich p a tr o l l ing , h i g hway tra f f i c

c o n tr o l , and in i nc r e a s i ng p o l i c ing a c t iv i t i e s . Ju s t a s the

a s s im i l a t i on of the c om�ut e r into the bu s in e s s �or l d h e l p e d

many indu s tr i e s , ihe a ir� l ane has in� r e a s �d the f r e quen2y ,

 86
e ffect ivene s s , and . eff i c i ency in · a l l the s e a r e a s [ 3 4 ] '. Th i s ,

· in turn , bene f i t s the commun i ty and the · na t i on b y making the

c oun try mor e p r o duct ive .

Mo r e o b s cur e in · the m inds o f many p e op l e i s the ·

j u s t i fi c a t i on o f the u s e o f gene ral avi a t ion - for recre -
' .

a t iona l purpo s e s . The communi ty a i rp o r t i s much l ike the

c � rnmun i ty g o l f cou r s e , swimm ing p o o l , o r tenn i s c our t fo r .
the p eop l e who l ik e t o fly f o r the ftin o f i t . Many p e op l e
make hun t ing and f i s hing tr ip s into a r e a s no t s erve d b y a i r
c arr i e r a i rp o r t s whi l e o t h � r s u s e the pr iva� e a i rp l �ne t o
v i s i t o ther r e c r e a t i onal ar e a s n o t . s erved by the a i r l ine s .

S t i l l o ther s s imp l y p r e f e r the fl ex i b i l i ty o f the p r iva t e

a i r cr a f t . Th i s bene f i t wo rk s i n two way s ; i t prov i d e s
p e op l e in sma l l commun i t i e s mo r e f l e x i b i l � ty in the i r travel
p l an s �nd o f fer s . mo re p o t e n t i a l · to r e s o r t ar e a s . · Sur e l y ,

Wa l � Di s ney Wor l d mu s t hav e r ec o gni z ed the incr e a s ed opp or ­

.
tun i t i e s prov i d e d by an a i rp o r t when i t dec i d e d to bui l d an
.

Again , the a i rp o r t and the . a irp l ane

.

a i rp o r t in the p a rk .

o f fer th e benef ii s o f mob i l i ty , fl ex ib i l i ty , · and r e cr e a t i on

to the popu l ac e .
The prov is ion for emerg ency s e rv i c e s i s ano ther
ac t iv i ty tha t is a p o t ent i al u s e of the a irpor t . · In areas

l i ke s outhern Cal i forn i a w i t h a h i gh p o t ent i a l . for

deva s t a t in i , r eg ion - wi d e b ru s h and fore s t f ir e s , the a i r ­

p o r t o f f e r s l and ing fac i l i t i e s fo r a ir b o rne f ir e - f i ght ing

equipmen t . I t al s o o f fer s fac i l i t i e s for the b a s i ng and

supp or t ing of p e r s o nn e � u s e d iii _ de al ing w i th p o t ent i al c iv i l

 87 .
d i s turb ance s . Aft er a g r e a t na tur a l d i s a st e r , the com ­
mun i ty a i rp o r t may b e the only fe � s i� l � �o int o f contact
w i t h the out s i de wor l d . Emerg ency supp l ie s �nd di s as t e r
r e l ie f t e ams can b e qu ickly fl own i�to the area . Th i s was
the ca s e in Managua , N i c aragua , a f t er the ear thquake and the
Mi s s i s s ipp i . gul f co a s t in . the wake of hur r i c ane C am i l l e .

Hop eful lt , thi s typ e o f b e�e f i t wou l d nev e r b � needed by a

communi ty ; but , i f i t i s , i t could niean the s aving o f l iv e s .
The nat ion · ' s sys t em o f a i rpo r t s i s a l s o a factor iri
na t ional d e f en s e . A ne two rk of a i rpor t s he lp s t o · encour a g e
the , g e o g r aphic d i sp � r s a l o f t h e popu l a t i on . Th i s , in turn ,
.
r e duc e s the na t ion ' s · vu lner ab i �i ty to nuc l e ar a t t ac k . At
the s ame t ime , the a i rpor t n e twork cou l d prov i de a v a luab l e
comniun i c a t ion and transpo r t a t i on l ink a t a time when no
o ther may ex i s t ." I f a fu l l - s c a l e war d id d eve l op , the com .­
.
me rc ia l air l ine f l e e t wou l d b e p r e s s ed i nto mi l i tary s er v i c e
. .

and c iv i l i an a ir f i e l d s us ed a s 4 i sp er s a l b a s e s f o r m i l i taiy
a ir cr af t . I n t h i s event , i t i s. b e l i eved that the avai l a ­
b i l i ty o f a sub s i � n t ial pr ivate a i r c r aft t l e e t ( 1 6 4 , 0 0 0
.. a ir cr aft s tr ong ) wou ld b e . mo s t valuab l e in the · movement o f

p e r sons , suppl i e s , do c t or s , nur s e s , and s o for th , f r om one

area sub j e c t to contaminat i on or fa l l - ou t to ano ther ar ea
whe r e surv iva l wo.u l d b e po s s ib l e .
The a irp or t p er f o rms in one o ther a r e a o f em erg ency
s e rv i c e . Th i s . i s a b a s e o f op er a t i ons for the C iv � l Air

P a t ro l . The s erv i c e s o f th i s o r g an i z a t ion , invo lv i ng

non - m i l i t B:ry a i r c r a f t , ar e frequent l y invo lved in s e arch ,

 88
r e scue o r d i s a s t er mi s s i ons . Unfo r tuna tely , the s erv i c e s o f
the C iv i l Air Patro l and the po s s i b l e emerg ency app l i c a t i ons
. o f · the communi ty a irpo rt . ar e too fr equent ly over l � o ked �h t i l
they · a r e · ne eded .

The a i rp o r t sys t em and a sma l l comp any c a l l e d Mid ­

we s t Air ar e impor tant to the nat ion ' s b ank ing sys t em .
Every n i g h t , Midwe s t ' s a i r cr aft fly . about the couritry t r ans ­
fer r i ng che c k s �hrough the F e dera l Res erve Bank sys t em �
Sp e ed i s o f the utmo s t imp o r t ance in the b ank ing sys t em .
Obv ious ly , the l e s s t ime the checks sp end in trans i t , the
fa s t er b anks can proce s s them . Th i s is vi tal to . the
na t i on ' s ec onomy b e caus� of wh at the F ed e r a l Re s erve cal l s
the " f l ·o a t . " The f l o a t i s the sum o f al l checks in trans i t .
I t s s i z e i s one of the maj or unc e r t a int i e s wh ich the F ed e r a l
Re s erve mus t face in try ing t o contr o l · the nat ion ' s money
supp ly [ 3 5 ] . Midwe s t Air h � l p s r e duce that unc e r t a inty by
r edu� i ng the f l o a t .

The commun i ty a i rp or t c an al s o he �p exp en d the

marke t are a for l o c a l indus try . H i gh ly p e r i s hab l e goods ,
s uch as fr e s h s hr imp , crab , l ob � t er , fru i t s , veg e tab l e s , and
so fo r th , c an b e s h ipp ed much farther by a i r than by sur fac e
transpor ta t i on , thu s exp and ing the mer chant s ' marke t ing
ar e a . Th i s ha s the po tent i a l for incr e a s ing the s i z e of the

l o ca l indu s try ; i t s emp l oyment r equ irement s , and i t s p'r o f i t ­

ab i l i ty . Conve r s e ly , the a i rpo r t may exp o s e the commun i ty

t o new produc t s wh i c h were unava i l ab l e pr ior to the a i rp or t '� ·

ex i s t enc e .
 89

Al l o f t h e pr e c edi ng · fa c t o r s me nt i oned · b e ne f i t the

commun i ty ; ye t , to quant i fy the hene f i t s i s an a lmo s t

impo s s i b l e t a s k . As s t a t e d prev ious ly , the inab i l i ty t o

qu an t i fy b en e f i t s in · no way r end e r s them ins i gn i f i c ant .

The s e b ene f i t s do enh�nce man ' s s ty l e o f l i fe , s t anda rd o f

l iving . ; and · ihe na t i on ' s p r o duc t iv i tf .

The O h i o County . A i rpo rt Pr o g t am

Pro b ab ly the mo s t fr equent ly c i t-ed examp l e of how

airport s c an be nef i t a commun i ty , and c o l l e c t iv e l y � s t a t e ,

· i s s hown in . the Ohi o County Airp o r t expe r i enc e . In 1 9 6 5 ,

r ea l i z i ng tha t mo dern a i r fa c i l i t i e s were b e com ing

incr e a s ing ly s t r a t e g i c to the a t trac t i on · o f ne� indu s try and

the s t imu l a t i on of e c onom i c d eve l opment , _Ohi o ins t i tu t e d a

mas s iv e county a i rpo r t deve l opment program . The Oh io

G ener a l As s emb ly appr oved · a progra� to prov i de f�r the

a l l o c a t ion of $ 1 0 0 , 0 0 0 to e a ch of 5 0 Oh io count i e s for

bu i l ding or upg rading g e neral av i a t ion a i rp o r t s . An add i ­

t ional $ 1 . 2 m i l l i o n was l a t e r al � o c a ted by the l e � i s l a tur e ,

en�b l ing a to t a l o f 6 4 coun t i e s · to par t i c ip a t e · in the

program ( 3 6 ] .

The b a s ic c onc ep t o f the Ohio Airpor t Pr o g r am i s

ra ther un ique . Mo s t o ther a i rpor t cons truc t i on pr o g r ams ,

r

p ar t i cul arly t ho s e spon s or ed by the FAA , have approp � i a t e d

fund s . only t o tho s e a r e a s wi th a proven n e e d i n adv anc e .

The Ohio p r o gr am , however , wa s b a s e d on the · p r em i s e that

incr � a s i ng a i r t ra f f i c wi l l f l ow from the i ncr e as ed e c onomi c

 90

ac t iv i ty c r e a t e d by each new a i rpor t [ 3 6 ] . An examp l e o f

thi s i s s e en i n Mad i s o n Coun t y , Ohi o . I n 1 9 6 4 , the r e w a s

.
only o n e a i rp l ane r eg i s � e r e d i n the county ; bu t , b y 1 9 7 4 ,

the r e we r e 5 2 b a s ed a t the . county a i rpo r t [ 3 6 ] .

The county a � rpo r t au tho r i t i e s s o l i c i t ed l and ,

funds , l abo r , �nd equ ipment from l o c a l o r g ani z at�ons and

c i t i z ens to cons tru c t a county a i rp o r t fa c i l i ty . After a

g � e a t d e a l o f e f f � r t on the par t o f No rman Crab tr e e ;

D i r e c t o� o f the Oh i o D iv i s ion o f Av i a t ion , l o cal c i v i c

org ani z a t i o ns b eg an to supp o r t t h e pro g r am heav i l y . I n s ome

c ount i e s , do or - t o - do o r camp a i gn s wer e condu c t ed by c i v i c

g roup s , there�y ac quir ing funds to ma t ch the $ 1 0 0 , 0 0 0 s t a t e

.
al l oc a t i on and to ini t i ate c ons tru c t ion [ 3 6 ] .

I n o r der to p ar t i c ipa te in the · a i rp o r t p r o g r am , the

c ounty had to own the r e qu i s i t e i and nec e s siry for a new

.
a irpo r t , p rov i de al l the ne c e s s ary eng i n e er ing , b e

r e spo ns ib l e f o r a l l c o n s truc t i o n , and ent er into a g r ant

a g r e em ent wi th the s t a t e · o f . Oh io that the � i rpor t wi l l b e

o � e r a ted and m a inta ined f o r pub l i c us e f o r 2 0 years .

One o f the pr ime o b j e c t iv e s o f th i s p r o g r am wa s t o

.
s t imu l a te i ndu s tr i a l d eve l opme nt in ru ral Oh i o . · From 1 9 6 6

(when the f i r s t a i rp o r t wa s d e d i c a t ed ) t o 1 9 7 0 , 5 8 a i rpor t s

· wi th pav ed runw ay s o f 3 , 5 0 0 f e e t o r longer wer e· bu i l t [ 3 3] .

To day , the r e are 6 2 a irp o r t s in the coun ty system . To

d e t ermine the e c onom ic imp a c t of the a i rpor t p r o g r am ,

s ever a l ind i c a t o r s o f e conom ic deve l opment wer e cons i d e r e d .

They we r e : bu s i ne s s and c omrn erc i a l · u s e o f a irp o r t s ;

 91

emp l6yment and iri��me ; · i � du s t r i a l dev e l opment ind c api ta l

inve s tme n t ; and l and v a lu e s .

To d e te rmine bu s ine s s and c ommerc i a l · a i rpor t u s e , a

r andom s ampl ing o f 2 0 o f the county a i rpor t s was taken

dur ing 1 9 6 9 [ 3 3 ] . F ind in i s · ind i ca t e d that n e ; rly ha l f o f

.
a l l t akeo f f s and l and ing s at the s e a i rpo r t s we r e p e r fo rmed

by � o rpo r a t e a i r c r af t or comme r c i a l air cargo a i r c r a f t .

. Ano th� r r andom survet [ 3 3 ] o f 1 5 0 Oh � o manu f a c tur ing f i �m s

found �ha t a maj o r i ty o f al l f i rms surv eyed u s e d a i r t rans ­

po r ta t ion f ac i l i t i e s frequ en t l y . . Appr ox ima t e l y ha l f of th e

f i rms re s p ond ing v i ew the Oh i o A irpo r t P r o g r am a s , " l i k e l y

. .

to hav e an influence on th e i r futur e exp an s i on de c i s i ons . ' '

· Emp l o ym en t a nd payro l l f i gu r e s fo r 1 3 p ar t i c i p a t ing

count i e s we r e comp a r e d to th.o s e of s even non - pa r t i c ip a t ing

coun t i e s . I t w a s found that the p ar t i c ip a t ing c o �nt i �s

ave ra g ed a . 3 % h igher r a t e of p ayro l l inc r ea s e · and a 5 %

h i gher r a t e o f emp l oyment inc r ea s e · than non - p ar t i c ip a t i ng

count i e s [ 3 3 ] . I t was e s t ima t e d that the County · A i rpo r t

P r o g r am , in fou r ye a r s , ne t t e d Oh io $ 2 5 0 mi l l i on i n a dd e d

p e r s onal income and c r e a t e d 6 0 , 0 0 0 new j ob s . B a s ed on the

U. � · · Depar tment o� Labor . consume r d o l l ar exp e�di tur e

b r e �kdown , the new j qb s and inc om e s c r e a t ed ove r $ 1 5 0

m i l l i on in new r e t a i l trade wh i c h w a s enough r ev enue t o

supp o r t 2 0 0 n e w r e t ai l f i rm s [ 3 3 ] .

Ano ther int e r e s t ing s t a t i s t i c i s found in the l ev e l

.
o f indu s t r i a l dev e l opment whi c h o c cu r r e d b e fo r e and a f t e r

cons truc t i on o f t h e a i rp or t . The m e d i an numb e r o f new and

 92

exp and e d i ndu s t r i e s i n c oun t i e s par t i c ip a t ing in the pr o g r am

amounted to 6 % per year b e f o r e a i r p o r t ins ta l l a t i on and 1 3 %

p e r year a f t er � irport ded i c a t ion . The s ta t e o f Oh io e s t i ­

m a t e d _ t � at ne a r l y 1 , 5 0 0 new or exp and �d i ndu s tr i e s and
.$ 1 b�l
i i on in indu � tr i a l cap i ta l inv� s tment �ere c r e a t e d by
. the a i rp o ! t program · [ 3 3 ] .

The marke t va lue o f p r op e r t i e s adj acent to the new ·

county a i rpor t s wa s comp�r ed · - to value o f the s ame proper ty

pr i o r to the a i rp o r t· d e d i c at ion . Ov er 9 0 % of the co"un t i e s

inve s t i g � t e d ex� er i enc ed · p� ope r ty value incr e a s � s o f · mo r e

than 1 0 0 % o f o r i g inal va lu e w� thin o n e year fo l l ow i ng a ir ­

por t ded ic a t i on [ 3 3 ] . I nc r e a s e s in �r oper ty val�e a s h i gh

a s 5 0 0 % wer e r e c o rded in s ome ar e a s such a s De l awa re Coun ty ,

oh i o [ 3 3 1 .

The Ohio County Airp o r t Prog ram runs c o n trary to , i n

s ome ins tanc e s , the Fede r a l A i rp o r t Dev e i opment P r o g ram .

The pr imary d i fferenc e i s Oh i o p r ov i ded money to bu i l d

c ounty a i rpo r t s wi thout a pr ed e t e rm ined need b e ing

e s tab l i s hed - - e s s ent i al l y tak ing · the po s i t i on tha t if an a i r ­

p o r t i s bu i l t , · av i at ion demand wi l l deve l op t o u t i l i z e the
a i rpo r :t . The FAA requi re s mo r e j u s t i f i c at i on ( a s to d· ernand)
. b e fore they wi l l comm i t fund s to the p r o j e c t .

I n 1 9 7 4 , the FAA c ontrac t e d for a s tu dy of a irpor t s

bui l t w i th and wi thou t fed e r a l a id [ 3 7 ] . The Bu rns . and

McDonne l l s tudy found that s ta t e progr ams were ab l e to

c on s t ru c t a i rpo r t s_ fas t ei and at l ower c o s t s than the

federa l pr o g r ams ,_ The s t a t e p r � g � ams we r e a l s o ab l e to

 93
produc e a � rpo r t s w i th qua l i ty equiv�l ent � o that o f feder al

program s . Th� s tudy conc luded tha i the spon s o r is mo r e o f a

d e te rminant o f the qua l i ty o f t h e a irp o r t than t � e program .

F inal ly , the . s tudy · s e ems t o confirm the i d e a tha t s t a t e ·

. p r og ram s , l i ke Oh i o ' s County A i rpor t Prog ram , may b e mo r e

produc tive in - dev e l op ing a i rpo r t s than th� F e de � a l A i rp o r t
De vel o pment Pro g r am .
_ .,

M i c ha e l � o b s on , . D i r e c t o r o f the O h i o Deve lopment

D epa r tment , · ·summar i z e d the e co nom ic imp a c t of a i rp o r t s in .

the c ounty p r o gr am in thi s w a y [ 3 6 ] :

An ana ly s i s o f 1 5 coun t i e s - whi c h p ar t i c ip a t e d

i� the Ohio Airp o r t ·Dev e l opment Pro gr am s trongly
ind ic a t e s tha t the ins tal l a t ion o f airport s ,
c apab l e o f accommod a t ing l ar g e bu s ine s s a i r c raft ,
i s l i ke l y to . gener a t e an improved e c onom i c b a s e .
to the c ommun i t i e s whi ch surrou�d each new fac i l i ty .
· An ana lys i s o f the emp l oyment data -u t i l i z e d in ·
the s tudy i�d i c a t e s tha t , a f t e r ins tal l a t ion of a
new a i rport � sur r ound ing commun i t i e s are l ik e l y t o
exp e r i enc e b o th inc r e a s e d t o t a l emp loyment and
d e c r e a s e s in unemp l oyment .
· Bus in e s s a c t i v i ty in an area wh ich has r e c en t ly
acqu i r e d a new airpQrt fac i l i ty t end s to exp and
and i s · r e f l e c t ed in t o t a l p ayr o l l inc r e a s e s . ·
·

I t i s prob ab l e that the exp an s ion of ex i s t i ng

manu fa c tu r ing f i rms and the a t t rac t i on o f new manu ­
factur e r s w i l l b e a s s oc i a te d · w i th a n�w a i rp o r t
fac i l i ty . I n addi t i on , c ap i t a l · i nv e s tmen t s by _ new
and exp and e d f i rms a·r e l i kely to b e sub s t ant i a l l y
· augmen t e d . · ·
·

I nc r e a s ed r e a l e s t a t e va lu e s in each o f the 1 5
c oun t i e s included in the - s tudy t end t o r e info r c e
e ach o f t h e abov e - s ta t e d ind i c a t o r s o f e conom i c
growth . Taxab l e r e a l e s tate value incre a s ed i n
the s e count i e s , fo l l owing the · a�qu i si t ion o f new
a i rp o r t s , by a yearl y ave r a g e of 4 . 5 % .

I t app e a r s from i� e s e f i gur e � tha t the c i t i z en s · o f

Oh i o r e c e ived a very g o o d r e tu rn o n t h e inv e s tment o f the ir

t ax· do l l a r s in the Coun ty A i rp o r t Pr ? g ram .

 94
A Rev i ew o f Some of the D i s - b ene f i t s o f A i rp o r t s

I n t oday ' s comp l ex s o c i e ty there are b enef i t s and

d i s - b e ne f i t s to a lmo s t every fac e t · of da i ly a c t iv i t i e s .

A i rp o r t s ar e no exc ep t i on . The r e ar e s ome who r ema in

uri�onv iri�ed a s t o the s i �n�f i ca � t ro l e an �i r� o r t p l at s
. �

w i th in a commun i ty . S t i l l o th e r s argu e tha t the. d i s ­

b enef i t s outwe igh the b ene f i t s o f an a i rpo r t . Ano ther

argum ent aga ins t a i � p o r t s i s tha t they do no t g en er a t e any

.
add i t i onal na t i onal we a l th , bu t merely d iv e r t i t from o ther
ar e a s .
Gary L an tne r ·, in h i s the s i s on " Commun i ty Opp o ­
s i t i on t o Airport Dev e l opment , ' ' l i s t s thr e e c a t eg o r i e s of
a irpo rt opp o s i t �on by c i t i z en s ' group s [ 3 8 ] . The f ir s t
c a t e g. ory o f pub l i c oppo s i t io n wi l l app e ar in c ommuni t i e s
that w i l l have t o b e r e l o c a t e d b y the acqu i s i t io n o f
add i t io na l a irpo r t l and s . No t only tho s e p e r s on s a c tu a l l y
. mov ed , b u t tho s e who b e come c l o s er t o no i s e and o ther

adve r s e env i ronmen t a l e ffec t s , may expr e s s d i s cont ent w i th

a irpo r t dev e l o pment p l ans . The s e cond c a t � gory i s comp o s e d

o f the abu t t e r s ' o r tho s e who wi l l b e . in the inun e d i a t e

ne i ghb orho o d o f · � h e a i rp o r t . F in al ly , a th i rd c a t e g o ry o f

oppo s i t ion may dev e l o p a t a r e g ional o r naiional leve l .

Th i s i s u su a l ly in the name o f pro tec t ing " the na t i ona l
pub l ic int e r e s t . "
Th e op� o s i t ion from t h e s e group s i s usua l ly oyer

env i ronmen t a l f a c t o r s . Airpo rt s do c aus e . adv e r s e

 95
env i ronmen t a l e f fe c t s , bu t th i s a l one i � no r e a s on to hal t

a i rpor t d ev e l opment , b ec au s e there . may b e m i t i g a t ing · c i rc um ­

s t ance s . For mo s t sm � l l g ener a l . av i a t i 6 n a i rp or t s , the

adve r s e e nvir o nment a l imp a c t s are m in imai . For i arger a i r �

p o r t s , �he impac t may b e come s evere . Thi s fac t ·mu s t b e

r ecogni z ed and deal t w i th . Hop e fu l l y , t e chno l o gy wi l l . ·

· ev entual ly r emove the s e prob l em � ; bu t , un t i l then , l ong ­

r ang e p � an� ing , c omp a t ibl e l and dev e l opment , f l i ght

r e s t r i ct i ons , and a g o o d pub l i� r e l a t i on s progr � wil l help
r e duce oppo s i t i on .
A c oncep t that s hou l d b e und e r s tood by everyone i s
tha t a i rp or t s don ' t c au s e no i s e ; a i rcraft c au s e no i s e .
Ab ou t the orily t h ing an a i rpo r t manager c an do i s try to
r educ e the a ir and · no i s e p o l lu t i on t o an a c c ep tab l e l eve l
and· wo rk t o imp r ove c omm� n i ty under s tand ing .
 CHAPTE R V I

MEASUR I NG THE S OC I O - ECONOM I C IMPACT O F AN

AI RPORT UPON THE COMMUN I TY

I n t rodu c t i on

.
In the p reviou s chap ter s , the var i ou s l eve l s and
typ e s � f s o c i o - e conomic impac t an a i rp o � t may ex e r t upo n a
commun i ty have b e e n di s cu s s ed . The nex t l o g i c a l s t ep · i s to
e s tabl i s h a me tho do l ogy fo r mea sur ing the magni tude of t h i s
impa ct . Th i s l e ads to a very d ifficu l t and , unfo r tunat ely ,
. .

l i t t l e exp l o re d area . Unfo r tuna t e b e cau s e a r i g o rous

metho do l o gy for the d e t erm ina t i on o f the s o c i o - e conomi c

impact o f an a i rpor t upon the commun i ty might answer many

mor e que s t i ons abou t an a i rpo r t ' s valu e to the c ommun i ty .

Th i s m i ght a l s o l e ad to a mo r e r e f ined ben e f i t / co s t r a t io
fo r p l ann e r s . As with mo �t thing s , howev e r , the co s t s of
such a s tudy s houl d no t ex c e ed the b en e f i t s der iv ed from the

s tudy .
· The r e are s everal r e a s on s why th i s ev a lua t i on tas k

i s s o comp l ex · . F i r s t , s ome a i rp o r t s imp ac t up on a b ro ad

r e g i on in a vari ety o f ways wh i ch do no t hav � a d i r e ct
c onn e c t ion to the a i rp o r t . An ex amp l e o f thi s m i ght b e the
inf luence that Nas�v i l l e Me t ropo l i tan Airpo r t ex e r t s upon

Tu l l ahoma , Tenne s s e e , which is 70 m i l e s away , or Los Ang e l e s

I nt e rn a t i onal A i rp o r t upon B ak e r s f i e l d , C a l i fo rn � a , 1 1 4

96
 97

m i l e s away . S e c ond , many of the b en e f i t s ar e no t qu ant i ­

f i ab l e . I t i s very d i f f i cu l t t o as s i gn a v a l u e to the l iv e s

wh i ch we r e s av ed and the r edu ce d s u f f e r ing wh i ch r e su l t ed

from m e d i c a l a i r evacua t i ons . . Gary Fromm in , " C iv i l

Av i a t i on Exp end i ture s , " · c a l cu l a t e d the av erage v a l u e o f a
. .

l i fe l o s t in a g en e r a l av i a t ion a c c iden t to b e $ 4 4 2 , 0 0 0 [ 3 9 ] .

I t m i ght we l l b e a r gued tha t an a i rp o r t co s t ing $ 3 0 0 , 0 0 0 to

$ 4 0 0 , 0 0 0 wou l d mor e than p ay for i t s e l f i f , over the p e r i o d

_ o f i t s ex i s t ence , the a i rp o r t r e sul ted in the ne t s av ing o f

j u s t o n e l i fe . Th i s a r e a n e e ds a g r e a t d e a l o f . add i t i onal

s tudy s in c e it c ou l d a c c ount . for a h i g h p o r t i o n of an

a i rp o r t ' s total b ene f i t . The prob l em is concep tua l l y

manag e ab l e , howev e r , only i f one i s w i l l i ng t o make t enu ou s

a s s ump t i on s ab ou t the va lu e o f human l i fe . and s u f f e ring .

F inal ly , l i ke ind iv i dua l s , a irpo r t s have a

"p e r s ona l i ty . " They vary wide,l y in th e i r ind iv idua l cha ra c ­

t e r i s t i c s and _ e a ch mu s t be c ar e fu l ly s c ru t i n i z e d to

d e t e rmine wha t mean ing fu l 1mpa c t s they c au s e . Th e r e is no

s ue� thing as an ave r a g e a i rpor t any mo re than there is an

. av e ra g e i nd iv i dua l . A i rp o rt s , in · fac t , may b e de fined mo r e

b y the i r d i ffer enc e s than b y the i r s im i l ar i t i e s . Some

cha rac t e r i s t i c � may app e ar s im i l ar , but when exam ined . i h

dep th , t h e r e ar e va s t d i s p ar i t i e s . · Gl enn P lyma t e o f the ·

B e ch t e l C o rp o rat i on i l lus tra t e s thi s po in � w i th the

.
fo l l owing thr e e examp l e s [ 2 ] :
 98

. 1 . G e n e ral· Av i a t ion A i rc ra ft in Re l a t i on to
Pnu l a t i on - . In a r e c ent s tudy comple t ed for the
F , the r e l a t i onship · be tween numb ers o f ai r c r a f t
and popu l a t i on was ex am ined . But , t h e s tudy s e ems
· to s how more o f a non - r e l a t i on S h ip than i t . db e s a
r e l a t i o ns h ip b e twe en · the s e e l ement s . S t andard
Me trop o l i tan S t at i s t i c al Ar e a s of S O i O O O and up
were sury eyed in t erm s of popu l a t i on v e r s u s
r e g i s t e r e d a i r craft . A med i an was de t ermined to b e
6 · . s a i rc r a f t p e r 1 0 � 0 0 0 popu l a t i on : Onl y s ev en
a r e a s in the country , ou t o f 2 2 7 surv eyed , are c l o s e
t o " av e r a g e , " the s e b e ing : B e aumont , Texas ; Provo ,
. t ah ; T acoma , Wa sh ing ton ; Ba t t l e Cre ek·, M i c h i g an ;
U
Spr ing f i e l d , I l l inq i s ; G adsden , Al ab ama ; and N a s hua ,
New Hamp s h i r e .
N o t e the wide d i s tr ibu t i on of the s e "av e rage " .
� r e a s throu gh ·a l l p a r t s o f the c ountry . There s e ems
to be l i t t l e opp o r tun i ty to r e l a t e thes e ar e a � one
to ano ther . ·

Th e o ther 2 2 0 a r e a s r an g e from a s li t t l e a s . 5
a i rcraft p e r 1 0 , 0 0 0 popu l a t i on to a s many a s 3 4 . 6 · ,
a v ery . w i d e s p e c trum · c on s i d e r ing the "av e r ag e . " I t
wou l d b e fo ll y to e s tab l i sh a norm , b a s ed qn ·the s e
data , and app l y i t t o a s p e c i f i c ar e a and exp ec t
meaning fu l r e s u l t s . I nd iv idual f a c t o r s wh i ch c on ­
s i der the " p e r s onal i ty " o f the a r e a mu s t b e analy z ed .
2 . Per Cap i t a I nc ome Var i ab l e s - C l o s e r to the
subj e c t o f e conomic s , a r e c ent A1 rpo r t Sy s t em P l an
c omp l e t e d by Bechtel fo r S tan i s l au s County ind i c a t e d
a p e r c ap i t a income sub s t anti a l l y d if fere�t from the
av erage o f . the s ta t e o f C a l i fo rnia , b a s e d o ·n an
analy s i s of l o c a l cond i t ions . · Th i s was s omewha t
surp r i s ing s inc e i t was no t ini t i a l ly thou ght ther e
s hou l d b e a wide d i sp ar i ty b e tween the l o c a l s i tu ­
a t io n and the " averag e ' � wh i ch inc luded a l l c oun t i es
in the . s ta t e , many wi th s e em ing ly qu i t e s im i l ar
ch ara c t e r i s t i c s .
3. Parking · L o t Revenu e "Av e r a�e s " - C l o s e r y e t
t o . the subJ e c t of e conom 1c 1mpac t 1 s an examp l e of
an ex tremely mi s l e ad ing " av e r ag e " I d i s cov e r e d · wh i l e
Mana g e r o f the Oakl and I n t e rna t i onal Airpo r t .
Revenu e r ep o r t s from a irpor t s a l l around the coun try ,
including Oakland and " s im i l ar a i rpor t s , " many in
C a l i f o rn i a , we r e u s ed to e s t ab l i s h an " aver a g e "
r ev enue fac tor for park i ng l o t s re l a t ive to enp l an i ng
p a s s eng e r s . I f the " avera g e " had b e en app l i � d . a t
Oakl and , the s e imp ac t s f rom aut o s u s ing t h e a i rpo r t
wou l d have b e en sadly under s t a t e d . I t w a s fo�nd o n
d e t a i l ed ana l� s i s tha t Oakl and generated · parking
r evenu e s nearly f iv� t ime s that o f - the na t i qnal
av erage .
 99

I t i s far · b eyond the s c op� · o r intent o f thi s s t�dy , ·

howev e r , to dev e l op such a me tho do l o g y . As s t a t e d · p re �

v � ous l y , the methodo l o gy d e s cr i b e d in th i s chap t er i s

in t end ed for the u s e o f the a i rp o r t mana g e r s wi th l i t t l e

t ime 9 r mo ney t o unde r take an invo lv ed s t it i s t i ca l ana ly s i s

. .

and· deve l o p a compl ex e c o nome tr i c mo de l . Ac � ord ing · t o

S t anford Re s e a r c h I n s t i tu t e [ 4 0] ,

I t i s no t po s s i b l e t o m e a sur e an a i rpo r t ' s to t a l

e c onomic b en e f i t s to t h e communi ty i n ab s o l u t e .
t e rms , - but ce r t a in sp e c i f i c typ e s of b enef i t s c an
. be id ent i f i ed and p erhap s quant i f i e d .
·

Th i s i s p robab ly an a�cur a t e s t a t em e n t , bu t p r e s en t me t ho d s

o f e co nom i c imp ac t ana l y s i s c ou l d b e u p g r a d e d to improve

the i r c r e d i b i l i ty .

A Rev i ew o £ the Me tho ds U s e d in Soc i o - e co nom i c

I mpac t Eva lua t i on

A t r ad i t i onal me t ho d for de t e rm in ing the impac t o f

e c onomic ac t i v i ty on a reg ion or communi ty h a s b e en to u s e

a j o b s and income ra t i o [ 4 1 ] . Th i s u su a l l y inv o l v e s the

ap p l i c a t ion of data such as t ha t in the U. S . Chamb er o f

Comm e r c e s tudy c i t ed i n Chap ter I I I [ 1 3 ] . Ano ther pro ­

c e dure i s t o us e a s t andard incom e and emp l o yment mu l t"ip l i e r

of two t o four . .When app l i e d to a i rp o r t ac t iv i ty , i t

r e sul t s in an e s t ima t e o f imp a c t up on the l o c al ar e a .

Ano ther me thod [ 4 1 ] us e d i n de t e rm ining the va lue o f

an e co nomi c act iv i ty in a r e g i on i s s ome t ime s ref e rr ed to as

a " r epu t a t i o na l � yp e . " Th i s p r o c e dur e dep ends up on the

 100

survey ing o f bu s ine s s e s and e c o nom i c l e ader s in t h e a r e a and ·

a� kin � the i r op i n i on a s to the b ene f i t to b e g a in e d o r l o s t

wi th · the in t r o du c t ion o r e l im ina t i on o f � par t i cul a r

a c t iv i ty in t h e r e g i on . Th i s m�thod o f ana lys i s . was u s e d

in the FAA 1 9 6 7 r e p o r t [ 2 9 ] , "The A i rp o r t - I t s I nflue nc e o n

the Commun i ty E. c ono�y , " and L e e B . Z ink ' s 1 9 6 7 s tudy [ 4 2 ] ,

"The Ec onom i c I mpa c t o f A i rp o r t s . "

�he r e i s a l so the me thod u s e d by G l enri P l �ma t e [ 2 ]

whi ch wa s · d i s cu s s ed at some l eng th in e ar l i er chap t e r s .

B a s i c a l l y , P l yma t e ' s me thod c a l l s fo r the c anva s s ing o f th e ·

a i rpo r t and the imme d i a t e imp a c t e d a r e a . . Added t o th i s a r e

a f e w ba s i c l aw s o f e c onom i c s ( the mu l t ip l i e r e f f e c t) and

then the imp a c t . i s compu t e d .

Nevins Bax t e r [ 4 3 ] u s e s the t e chn i qu e s o f b �nef i t/

c o s t ana ly s i s w i th e qu a t i ons wh i c h he deve l op s in h i s s tudy ,

" Pub l i c I nv e s tment in G en e r a l Av i a t i on A i rp o r t s : An App l i ­

c at ion o f Cos t - Bene f i t Ec onomi c s . " ·

The s o c i o - e c onom i c imp a c t o f an a i rp o r t may a l s o b e

e v a lu a t e d b y deve l o p ing a s c enar i o o f the r e g i on wi thou t an

a i rpo r t . Th i s c an p r ov i de v aluab l e ins i gh t s . into the impac t

o f an a i rpo r t . Th i s u s u�l l y supp l emen t s o the r typ e s o f

s tu d i e s and m ay prove very u � e ful · a s a n e a s i ly unde r s t o o d

summ�ry o f wha t t h e a irpo r t r ea l ly m e an s t o t h e c om.m un i ty .

D i s coun t e d c a s h f l ow ana l y s i s , wh ich i s no rma l ly a .

.
g o o d me thod f o r eva l u a t ing f inanc i al p r o j e c t s , i s no t

suf� i c i ent in . m e a s u r ing the e conom ic e f f e c t s o f a new o r

exp anded a i rp o r t upon the surround ing communi ty . _ The r ea s on

 1 01

for the m e thod ! s insu ff i c i ency i s tha t a numb e r o f the

e con6mic b ene f i t s and d i s � b ene f i t s ar i s e r e g ar d l �s � of

wh e th e r the a i rpo r t is comme rc i al ly p r o f i tab l e o r no t .

. .

Rud z in s k i [ 44] n ame s thr e e fac .t o r s whi c h hav e d im i n i s he d the . ·

e f f e c t ivene s s o f c l a s s i c a l me tho d s s uc h a s d i s coun t e d c a s h

f l ow . anal y s i s in j ud g irtg t h e wd r i h o f � i rp o r t i nv e s tm�nt

pro j ec t s . He l i s t s the � e a s : the h i g h r � t e s 6f int e r e s t ;

the f a s t g r � wth o f tra f f i c ; �nd , mo s t impor tarit l y , th�

· impac t o.·f · a i rp o r ts on the e c o nomy and env i r oriment .

Rud z i n s k i p o int s t o · the fa�t · tha t pub l i c fun.d�ng · i s u sua l l y

ne c e s s ar y fo r maj o r a i rpo rt c ons t ru c t ion pT o j e c t s b e c au s e

exc � s s a i r po r t r evenu e s ar e · insu ff i cf e ht and deb t fundi ng

su�h ·a s r evenue b onds are l im i t e d by the . t o t a l cap i t a � i ­

z a t i on o f a � s e t s .

Th� p r in� ip a l · b en e f i t s , as d e f i ned b y Rud z i n s k i , are

the v al�e o f t im e s av ing s to p a s s eng e r s a�d fre ight , the

g e ne t a t i o n of emp l oym�rit , and the va lue o f d e f en s e [ 44] . . He

de f �n � s th e p r inc i p a l d � s - b erie f i t s a � t h e e c o n6� i c e f f e c t s

o f no i s e , t h e l o s s e s t o r e c re a t i ona l fac i l i t i e s , ag r i �

cul tur a l pro du c t ion , to surface . a c c e s s op e r a to r s , and to

comp e t ing f o rms · o f t r an s p o r t a t i on .

One o f the pr imary func t i on s o f e co nom i c r e s e a r c h i s

the r e c. ommenda t io n of p o l i c i e s d e s i g n e d to a t t a in an e f f i -
'

c i en t a l l o c a t i on o f r e sour c e s .

By app l y i�g co s t/ b ene f i t ana l y s i s , the · r e l a t iv e

o rde r s o f m �gn i tud e o f the s e c o s t s a n d b e n ef i t s s hou l d b e

� � a s ur e d . C o s t/b eri ef i t ana ly s i s w i l l a l s o prov i d e gu i danc e

 10 2

on qu e s t i ons of fi nanc e and pr i c ing b e c au s e i t ind i c a t e s , on

b a l anc e , who m i ght b e wi l l ing t6 pay for add i t i o na l s e rv i c e s ·

r e c e ived and , in par t i cu l ar , he l p s · in dec i di ng whe ther an

�i rp o r t s ho u l d b e sub s i d i z ed [ 4 4 ] . _

A l i s t o f pr inc ip a l _ co s t s and . b ene f i t s co n s i d e r e d b y ·

Ru � z in s k i . in a i rp o r t p l anning i s shown in Tab l e 2 2 . He

. . . .

p o irit s out that the l i s t ing s hown in Tab l e 2 2 i s· no t

exhau s t ive . Rud z in s k i sug g e s t s tha t t he l o s s o f ag r i ­

cul tu ra l l and wi l l hav e an e f f e c t on the supp l i e r s o r on the

c l i ent s of the farming i � dus t ry , such a s mi l l e r s and bake r s .

· - He d e t i n e s t h i s as a s e �o nda ry d i s - b ene fi t . Th e dec i � i o n on

i n c lu s ion in the c o s t / b ene f i t ana lys i s o f su�h . d i s - b enef i t �

·
p
s hou l d b e b a s ed u on the ex i s t ence of a "fo rma l marke t for

the · go o d s - o r s e rv i c e s invo lved [ 4 4 ] . . S hou l d a fo rmal mark e t

ex i s t , a s in the c a s e w i th b r ead , the chang e i n t h e supp l y

o f whe a t wi l l , �ride r t h e cond i t io ns o f op t ima l mana g ement ,

l e ave · the b a�e r s ' - n e t inc ome u na l t e r e d b e cau ie they w i l l no t

b e exp e c t e d t o vary the ir e f f i c i ency . A pr i c e . incre a s e wi l l

m a i n t a i n the ne t income . The re i s no - . mark e t , howev e r , for

intang ib l e s such a s t ime .

Th e l a s t c o l umn o f Rud z i n s k i ' s t ab l e ( shown in

Tab l e - 2 2 ) g iv e s a b ro ad ind i c at ion of the me tho d s u s e d- in

m e a s ur ing b en e f i t s and d i s - b ene f i t s . Ryd z i n s k i d e s c r i b e s

the b a s i c pr inc ip l e s o f h i s p r o c e dure thi s w ay [ 4 4 ] :

· The unde r ly ing pr inc ip l e i s tha t the b en e f i t �
c a n o n l y b e cons i d e r ed by t h e d i f f e rence i t make s
t o hav e a c e r t a in a i rp o r t p r o j e c t carr i ed ou t o r ,
a l t e rna t ive l y , pu t i n t o ab eyan � e � ; Th i s i s � e cau s e
a i r c r a f t a r e u s e l e s s w i thou t a 1 rp o r t s and a 1 rpo r t s
 Tab l e 2 2 . Pr inc ipal Co s ts and B en e f i t s to b e C o n s i d e r e d in Airpo r t P l �nning [44]
Main Payee Projects Main Means
Type of Cost Type of or . Key in · Which of
o f Benefit Market Benefi ciary Determ inant Appl icable Est imation

Reduct ion of Tr ip Times Intang ib l es Pa s s engers D i s tanc e New Airport s Market Survey
. for Ex i s t ing Traffic and Airl ines D ifferentia l s
Reduct ion of Tr ip Times Intangib l e s Pas s engers · Un it Va lues of New Airports Gravity Model s
for Diverted Traffic and Air l ines Bus iness an d and Siting
Lei sure Time
Generated Traffic Regul ated Airl ines, Populat ion Ne� Airports Gravity Mode l s
Airports and S i t ing
Reduct ion o f Delays Intang ib l es Airl ines, F l eet S i z e Extens ions Analysi s · of
Airport s Operation
Extra Airport Pro fit Free Airport Capital Cost Al l . Quant ity Survey
( Los s)
No i s e Costs Intangib l e s Res idents Removal Costs Al l . Except in Fal l in Property
Desert.ed Areas Values
Safety Intangib l es Pas sengers Value of Human S i ting Fog Record,· Bir d
L i fe Strike Records
Defen s e Costs Co ll ective Commun ity Remov al Co sts Extens ions Cost of New Defen se
F ac i l ity
Defense Benefits Co l l ective Commun ity Common New Airport s Operat ional Sav ings
· Fac il ity

.......
0
t.N
 T�b l e 2 2 . · ( C ont i nu e d)

Miln Payee Projects Main Means

Type of Co s t Type of or Key in Whi ch · of
of Benefit Market Beneficiary Determinant Appl i cabl e Es t imation

Agr icul ture Subsided Farmers Land Affec t ed Al l Except in Val uing Av erage
D e s erted Areas Profit per Acr e

Lo s s ·in Profi t s of Free ' Airports Lo s s of Al l Mu l t i ­ Ana lys i s of

Other Ai rpor t s Traffi c ai rport Operat ion

Extra Ground Ac ces s Free Pas s engers D i s tance N ew Airport s . Gravi ty Mode 1 s
Cos t s

Ex tra Urbani zation . Free Communi ty Topography N ew .Airport s S earch for Extra
Cos t s and S i t ing · Cos t s

Tour i sm Income Free Indus try Proportion of Al l Foreign Tour i s t

Touri s t s Expend i ture per
Head

Amen i t i es and · Intangib l e s Counnunity Den s i ty o f Al l Exc ep t ·in I n surance Va lues ,

Recrea t ion H i s toric and· Des ert ed Ar eas Trav e l Expend iture
Amenity S i t es

U s e of Underemp l oyed Regu lated Communi ty Wag e �a t � s Devel op ing Degree of Under ­
Resourc es · (Labor , et c . ) Countri e s uti l i z at ion

N et Change in Profits Free Indu s try Numb er of New . Airport s Market Survey
F irms Affect ed and S i t ing

�
0
�
 105

c anno t do wi thou t a i rcra ft . Forec a s t s o f tra ffic

vo lume s and ' o f a ircraft s i z e ar e thus nec e s s ary
in the e s t ima t ion of v ir tual ly al l the i t ems . Th e
. metho d s o f · e s t ima � i on vary from one i t em to
ano the � . I n gene!al , they are emp i r ic a l te chn i qu e s
b a s e d on deduc t i on . Th� app rox ima t e v a lue s p e op l e
a t tach t o un spo i l e d rur a l surround in g s , t o p e a c e
and qu i e t and to s aving t ime c ari b e . dedu c ed from
o b s e rving the i r behavi o r � for examp l e the exp endi ­
tur e p e op l e incu r to v i s i t th� countrys ide at week �
ends .
· ·

�hen e s t tma t in g the e f fe c t s on the u t il i z a t ion

of r e s our c e s , such a s fo r ins t ance the gener a t i on
o f new emp l oymen t , i t i s imp o r t ant to check · .whe th e r
r e sourc e s a r e i n fac t under - u t i l i z ed . A t t im e s of
fu l l emp l oyment , · .thi s typ e o f b en e f i t i s wo rth to
the c oun try far l e s s than could b e exp e c ted a p r i o r i .
I n f a c t , th e in t e r e s t ing th ing about the e s t i ­
mat i on o f thes e i t ems i s tha t they do no t inva r i �bly
r e sul t in n e t b enef i t s o r in n e t c o s t s in a way one
wou l d exp e c t " a p r i o r i . " Thus . , when as a re ·su l t of
·

cong e s t ion , a new runway is c on s tru c t ed a t an

ex i s t ing a i rp o r t , the a ir l ine s wi l l u sual ly be
p e r fe c t l y w i l l i ng to incur ad d i t ional l and ing
charg e s b e c au s e of the benefi t s of t ime s aving s .
S im i l ar l y ,' b en ef i t s to p as s eng er s . The m arg ina l
value o f t ime s av ing s to pas s eng e r s w i l l for s ome
c a t e g o r i e s of the popul at i on be more than . the .ex t r a
fare s , bu s f e e s , o r a irp o r t t ax e s to b e p a i d ; an
a i r c r a ft de l ay may r e sul t in a l o s s o f t ime no t
only to a bu s in e s sman bu t a l s o to h i s c o l l eague s ,
cont r a c to r s , c i i en t s , e t c . , who awa i t him for a
me et ing . . Me tho d s o f an al y z ing pas s enge r s by c at e ­
g o ry have b eeri evo lv e d to deal w i th t h i s p rob l em . .
Thirdly , the b ene f i t s to a i rp or t � . Con t r ary to
w i d e s p r e a d b e l i e f , for an a i rpo r t , s i z e do e � no t
warr ant p r o f i tab i l i ty . S i t e charac t er i s t i cs may
in fac t reduce traff i c and inc re a s e c ons t ruct ion
c o s t s . Th i s i s b e c au s e the e·conom i e s of s c a l e o f
o p e r a t ion , whi ch may t ake a one - runway a irpo r t
pr o f i t ab l e when the numb er o f movement s nears i t s
c ap ac i ty , d o no t app l y . Each add i t i onal runway has
i.t s own e conom i e s of s c a l e but g rowth . o f t r aff i c has
to be " s p r e ad " over the ex i s t ing runway s and �h e
e c onomi e s o f s c a l e a r e tha t mu ch s l ower to come ·.
Fou r thly , the benef i t s to the r e s i dent s . I n
indu s t r i al count r i e s the n e t e ffec t (no t cpunt ing
p a s s eng e r s) can be neg ativ e . The nu i s anc e 'tb ene f i t "
o f a i rcraft no i s e i s o ft en t h e l arg e �t � f such i t em s .
The me thod o f m ea sur ing t h i s di s - benefit fo r �
s in g l e hou s eho l d shou l d b e b a s ed on e i t her the to ta l
r emova l co s t.s o r o n the "co s t " o f �ndur ing . the no i s e , .
wh ich ev e r i � the l ower .
·

\
 106

. Mo s t of th e s e cr i t e r i a have an economic b e ar ing .

The us e o f a s i ng l e cr i t er i on in · an a i rp o r t inve s t ­
� ent dec i s ion may r e su l t in the d i s c ard ing o f a
proj ec t whi ch i s wo r thwh i l e or wo r s e i b e c au s e no t .
r eve r s ib l e , . in the . cons truc t � on o f an a i rp o r t wh ich ·
shou l d no t b e there .
·

C o s t /b ene f i t ana lys i s s houl d b e con s i de r e d a s only

an �id to d e c i s ion mak ing . The mon e tary c a l cu l a ti on s pro -

· V i ded by c o s t / bene f i t ana ly s i s c an prov e t o b e a va i uab i e

to b l , but i t do e � no t a lways d i c t a t e the f inal s o lu t i on t o a
p r o b l em . I t i s ent i r e l y p o s s ib l e tha t a _ pro j e c t p r ov i d ing
the . g r e a t e s t net do l l ar b e ne f i i cou l d b e r e j e c t e � on ·
. d i s t r i bu t i onal ground s o r . tha t a p r o j e c t ' s · imp ly ing do llar

cos t g r e a t e r than do l l ar ben e f i t s co� l d be accep t ed b e c au s e

of de s i r ab l e d i s tr ibu t i onal e ff e c t s [ 4 3 ] .
.
N ev in s B ax t e r [ 4 3 ] has a l s o deve l op ed s ome c o s t/

b enef i t an a lys i s t ec hn i qu e s for a i rpo r ts . H e def ine s

pr iva t e c o s t s and b enef i t s a s , " .t ho s e wh i c h a r e exp e r i enced

by a s ing l e ind i v i �u al and whi ch do no t a�f ec t the · happ in e s s
.
o f any o ther i nd iv i dua l s in the · s oc i e ty . " S o c i a l co s t s and

b e ne f i t s a r e con sumed by a l l ind ividu a l s , r e g ardl e s s - of

wh e ther o r no t they make par .t i.c.u l ar money ou t l ays . B ax t e r ' s

an a ly s i s o f p r iva t e b en e f i t s and · c o s t s a s sumes a p�rf e c t l y

comp e t i t ive , ful l emp loym.e nt eco nomy .
B ax t e r { 4 3 ] fur ther define s p r ivate b e ne f i t s a s ,
.
" t he co s t o f t ime and money · s av e d in th e transpo r t a t i on o f

retre a t i on a l and bu s in e s s fl yer s an� f r e ight to · the n ew

a irpor t r a ther than the next mo s t c onven i en t t r av e l

fac i l i ty . " Thi s co s t s av i!lg s r e s ul t s i n a · d e cr e a s e i n the

 107

p r i c e o f f l y ing wh i c h adds to the we l f ar e o f mo s t a i rpo r t

us er s . T o eval u a t e the l ev e l of incr e a s e d we l f are , a do l l ar

e s t i�a t e i s d eve l oped by e s t imat irig the av e� ag e t im� and

. · . money s av ing p er u s er and . mu l t ip l y ing th i s by the · p r e d i c t ed

numb er o f annual u s er s .

On e o £ the mo s t di ff i cul t c on c ep tua l prob l ems i s

. a t t aching a mone t ary v a lue t o t ime s ave d . I n B ax t er ' s

analys i s [ 4 3 ] , i t i s a s sumed that l e i sur e t ime · u s e d

t r av e l ing to and from the a i rpo r t i s was t ed and tha t the

�arg ina l co s t of a l e i s ur e hour was t ed i s a s ium ed to be

�qu a l to the hourly wage r a t e . The s ame cou l d be s � i d for

bu� ine s s hour s l o s t in trans i t . I t i s thi s way the b en e f i t s

o f us ing a i r trav e l ver su s s ome o ther mo de for bu s ine s s

purpo s e s c an b e ev a luat ed .

Bax t er s epara t e s the pr ivat e · b en e f i ts into tho s e

wh i ch a c c rue t o the l o ca l a r e a abou t the a i rp o r t and t ho s e

wh i ch a c crue t o o.ther ar ea s . Under fu l l emp l oyment c on ­

d i t io n s , s om e l o c a l b e ne f i t s wi l l b e m a t ched b y c o s t s

e l s ewher e .

B ax t e r ' s ana l y s i s f ir s t c ons i der s only pur e l f l o ca l

b e ne f i t s i n a Re g i on A whe r e ther e i s n o unemp l oyment . Al l

new j o b s g en e r a t e d by the a i rp o r t ar e taken by worker s who

wer e prev i ou s l y emp l oyed in Re g i on A . The b e nef i t · c r e a t ed ·

by the a i rpo r t i s me a s ur ed by the i n cr e a s e in p r o du c t iv i ty

. a s s o c i a t e d w i th . the a i rpor t a s def ined by :

 108

( 1 ).
. .

. where

6Y = c.ha�g e in agg .reg a t e income in Reg i o D: A,

A

wn = ave rag e . wag e r e c e ived in the new

a i rpor t - r e l a t e d · j ob s ,

. w = av erage wag e r e c e ived previous ly by

0
p e op l e who mov ed to new j 9bs ,

J = new emp l oym ent . ( in · man - y e ar s ) ,

and the· p er cap i ta income by

�YA
Jr ,

whe r e E i s the t o t a l l abo r force in Reg i on A.

I � , du e to ful l emp l oyment , s ome o f the new j o b s are

f i l l e d by wo rke r s · who moved from Re g i on B to Reg i on A , a new

incr e a s e in agg � e g a t e income i s g iven by :.

(2)

wh ere " a " i s the prop o r t ion o f the a irport - r e l a t e d j ob s

f i l l ed . by r e s i dent s o f Re g ion A. S inc e w

o
< w and · a
·n
< 1,·
the chang e in a gg r e g a t e income i s c l e ar ly po s i t ive �

I t i s unc l e ar , however , a s to whe ther the r e s i dent s

o f Re g i on A are always be t ter off a s a r e sul t o f the new
 109

·j o b s . I t i s p o s s i b l e tha t p er c ap i t a income wi l l £�11 s i nc e

. .

the labor force has b e en enl arg e d by ( l - a ) J worke r s who

mus t s hare the incr e a s e d income [ 4 3 ] . I n the s p e c ial c a s e

whe r e a = . o , per c ap i t a inc ome

. wi l l dec l ine
. i f wn i s l e s s

� han th� ave rag e wage for Reg ion A . b e fo r e �h� a i rp o r t was
c ons truc t ed .
For the c a s e wher � unemp l oyment ex i s t s , i he · l o c� l ·

.
b e nef i t s a r e exp e c t ed to b e g r ea t e r . I f un emp l oyment do e s
ex i s t in Reg ion A , the r e wi l l usua l l y · · b e much l e s s immi ­
� r at ion fr � m Re � ion B . I n thi s c a� e , · t h e inc r e a s e . in
ag g r e g a t e income i n Reg i on A c an b e wr i t t en a s �

(3)

and . the p e r c ap i t a iric ome · change a s :

w J - a w J aw E - ( 1 - a ) (w o J )
�YA n
(4}
o . .
+
e ,o .
.,..
(- 1---a--):"""'J,_+
' --E -....·
=
(1 a)J + B
· ·

where e i s the prop or t i on o f wo rke r s t ak ing the new j ob s

who . wer e p r evious ly emp l oyed . At e = o , th� l o ca l b ene f i t

. i s equa l to the ent i r e payro l l ; and in the o ther ex t r eme

c a s e where e = 1 , the b ene f i t is iden t i c a l to tha t in th e
fu l l emp loyment c a s e [ 4 3] . I f t r ans fer paymen t s to . the .

unem� l oyed w � rkers ar e cons ider ed , th� l o c al b en e fit t o

Re g i on A , wher e e = o and a = 1 , i s :

(5)
 110

whe r e y i s the p ropo r t i on o f trans f e r s to un emp l oyed wo rker s

p a id by · Reg i on A ; and w 1 s t he · wag e s ub s i dy · p a i d to

s
unemp l oyed worke r s in Re gion A . As y approaches cin i ty , the

l o c a l bene f i t w i l l b ec o�e · g r e a t e r . . Equa t i on ( 5 ) is c l early

p o s i t ive w - w > o when y o , ' the be.n e f i t is smal l e s t

A s
=

and · · eq� ival ent t o the d i ffer enc� b e tween the . wag e and . th�

t �an s fer � ayme n t r e c e ived by une�p l o�ed wor k e r s [ 43] .

Ano ther under lying a s sump t i on o f th i s p r o c edur e i s

.tha t ·g o v e .rnment a im s at . a :targ e t rate o f unemp l oymen t . · An

a irpor t con s truc t i on p r o j ec t may b e come ari ins trument to

achi eve tha t l evel . Th i s is one of many al t e rna t ive s to

a�hi ev irtg the d e s � r ed � o a l ; and , ther e for e , the money wag e

o f l ab6� i s a g o o d ind i c a t i on o f i t s s oc i a l �a lu� .

Ano ther me thod � f d� t erm i n i � g t�e i�p a c t 6f an a i r ­

po r t i s to deve l op a s c enar i o for the .a r e a w i thout the

a irpor t . The Av i a t i on D eve l opment · Coun c i l o f New J er s ey ­

N ew York Me t r op o l i t an Reg i on had a s tudy c o ndu c t ed i n 1 9 6 6

to de t e rm ine the p r o b ab l e c ons equ enc e s o f the imp o s i t i on o f

a cur f ew on n � g h t t ime op � r a t i o n s [ 4� . The fo l l ow in� ar e

s ome o f the f i nd in g s .

1 . The Un i t ed S t a t e s · P o s t Of f i c e info rmed that

a m idn i ght t o 7 a . m . cur f ew wou l d b e d i s as trou s to
the movement o f ma i l by a i r ou t o f and into the
Me tropo l i t an Reg i on . I t wou l d me an ( & ) s ec ond - day
. .

d e l ivery t o a maj o r i ty o f tho s e po int s whi ch ar e now

r e c e iv ing next -morning d e l i�ery , ( b ) d iver s i on o f
s om e ma i l t o s ur f a c e tran sp o r t a t ion , ( c ) the ec onomy
o f the N ew York a r e a wou l d su f f e r by n� t b e ing ab l e
t o commun i c a t e o r s h ip p arc e l s for next - morning
d e l ivery , . and ( d ) s in c e , g enera l !� , �a i l mov e � a t
n i ght and p a s s eng e r s in t h e dayt ime , s er i ou s ove r �
l o ad s and tr aff i c c o�g � s t i on wou l d r e sul t .
 111

. W i th an ou tgo ing v o l ume about equal to inc om ing

ma i l , about one b i l l ion ·l e t t e r s a j e ar wou l d b e
s e r i ou s l y d e l ay e d b e cau s e o � a. cur f ew .
. . I t i s o bvious that a cur f ew on n i ghtt �me o p e r ­
at ions a t the a i rpo r t s wou l d s e r iou s l y imp ede the
movement of ma i l and make ov ern i ght d e l ivery
impo s s ib l e ..
. 2. Sp e c i f i c f i rms and sp ec i f i c indu s t r i e s
wou l d ex� e r i ence a s e r ious . d i s l o ca t i o n t o the ir
no rma l op e r a t i on wi th . co n s equen t financ i a l l o s s .
C i t e d we re one maj or manufac tur e r of ophtha lm i c
p r o duc t s , · ano ther of e l �c tr oni c p r oduct s , t h e New
Yo rk fur indus try , au tomob i l e p a rt s , f r e s h s t r aw ­
b e r r ie s , Ch in e s e ve g e t ab l e s , and n ewspap e r s �
The d e l ays in the sh ipmen t o f a i r ca rgo cau s e d
by a cur few wou l d incr e a s e coniid e r ab l y the c o s t s .
o f do ing bus in es s for innumerab l e indu s t r i e s b e c aus e
o f inc r e a s e d inv e s tment in invent or i e s , g r e a t e r
l o s s e s through incr e a s ed spo i l ag e and � i gher c o s t s .
from incr e � s e d handl ing . I nc r e a s e d _ c o s t s o f do ing
bus i n e s s , in tu rn , d e trimenta l l y a f fe c t th� numb e r
o f j o b s ava i l ab l e .
3. A curf ew wo u l d co s t New York b anks
$ 3 4 , 8 7 0 , 0 0 0 a year in l o s t i n t e r e s t , so ex t e n s ive :
i s the f i nanc i a l indus try ' s · u s e o f con s o l i d a t e d a i r
expr e s s s h ipme n t s o n n i g h t f l i gh t s for da i l y trans ­
a c t i o ns , a c c o r d i ng to the Fe d e r a l R e s e rv e B ank and ·

the N ew York C l ear ing Hou s e .

4. The l o s s o f n i g h t t ime s e rv i c e s wou l d co s t
· the D epar tment o f D e f ens e an add i t iona l $ 7 , 7 5 0 , 0 0 0
annu a l l y for the trans p o r t a t i o n o f p e r s o nne l . . The
DOD is a l ar g e u s e r of n i g ht fa r e s for the · mov em�n t
o f m i l i t ary p e rs onn e l . A cu r f ew on ni ghtt ime
op e r a t i o n s , of cour s e , _ wo u l d r emove th e s e oppor ­
tun i t i e s , r e qu i r ing a l l movem e n t s · to b e made du r i ng
the day t ime op e r a t i ons at the h i g her r a t e s .
5. I n s ummary , the Me tro po l i t an Reg ion wou l d
l o s e ab out 4 2 % o f i t s a i r c a r g o capab i l i ty ,
r e s u l t ing i n far r e a c h i ng and de � e ter i ou s ef fec t s
upon indu s �ry and bu s i ne s s i n t h e r e g i o n , as we l l
a s thr oug hou t the na t i on .

I t i s impor tan t to r ememb e r tha t the s e w e r e j u s t th e

pr o j e c t ed e f f e c t s . r e s u l t i ng from a cur f ew , no t a comp l e t e

c l o s ing o f the r e g i on ' s a i rp o r t s . I t i s d i ff i cu l t t o

s ta t i s t i c a l l y . ana l y z e the e f f e c t s o f t h e l a ck o f a n a i rp o r t

u p o n a l a r g e me tropo l i t an a r e a . Th i s i s b e c au s e ther e are

no maj o r m e t r op o l i t an ar e a s in the Uni t e d S t a t e s · l a� k ing a i r

 i12
t r anspo r t a t i o n fac i l i t i e s w i t h wh i ch compar is ons c ou l d b e

made . · Ai r po r t s have b e come s o impo r t an t t o me t � op o l i t an

Ame r i ca tha t · t o c on s id e r s uch � r e � i on w i t hou t s uch s e rvi c e s

i s ab s ur d . To s ome ex t e nt , the s.ame s i tu a t ion , a l though

l e s s · o bv i ou s to the l aym an , . i s · d ev e l op ing in the sma l l e r

· communi t i e s o f thi s count r y .

Al though t h i s typ e . o f ana lys i s i s ve ry indiv i du ­

. a l i z e d , �aluab l e in s i� ht s as to the �o r t h o f the a i rp o r t t o

the commun i ty c a n b e g a ined from thi s typ e o f ana lys i s � .

A Me thod o f I mp a c t Ana l y s i s for A i rp o r t Manag e r s

As s t a t e d p r evi ou s l y , t h e pr imary obj e c t i ve o f th i s

chap t e r i s t o d emons t r a t e a me thod o f impa c t m e a s ur ement

wh i ch is r e a s o nab l y · ac cura t e and r e l a t i ve l y s t r a fgh t f orw a r d .

I nve s t i g a t i o n s wou l d s e em to ind i ca t e th a t a c omb in at ion o f

me t ho d s b e s t sui t s t h e above s t a t e d g o a l . Th i s comb inat i o n

o f me t ho d s s hou l d inc lude surveys of emp l oye e s and

emp l o ye r s , c o s t /b e �e f i t analys e s , e c onom i c pro f i l e s , and

hypo t he t i c a l s c ena r i o s . ot cour s e , s p e c i f i c a i rpor t s may

c a l l fo r s ome � l t e t a t ion o r mo d i f i c a t i o n o f the s t a t e d

me tho d . Any me t ho d o f ana ly s i s w i l l r e qu i r e a g r e a t d e a l o f

o b j e c t iv i ty o n t h e a i rp o r t manag e r ' s p a r t i f i t i s · ·t o ha�e

any cr e d i b i l i ty .

An emp ir i� a l ana l y s i s , u s ing the four l ev� l s o f

imp a c t d i s cu s s ed i n P l yma t e ' s conc ep t s , s e ems t o � e the mo s t

f e a s i b l e me t ho d f o r d eve l o� ing a founda t i on fo r � he a i rp o r t

. . .

manag er ·to u s e in . d e t e rmin i�g the · s o c io - e c onom i c imp a c t o f ·

 113

· h i s a i rpor t .
The ma ins tay o � _ t h i s typ e o f ana ly� i s i s the
.
survey . I t �u s t b e app l i e d· obj e c t iv e l y and l o g i c a l ly .
�
.
. . ..

The f i ! s t s t ep in p e r fo rm ing an e c onom i c imp a c t

� s s � s sment i s t o 4eve l op a s o c i d - � c orio� i c p ro f i l e o f the

c ommun i ty , �ounty , �nd � r e ferab ly the s t�te , � l ong - wi th a

•. . . .

. b r i e f - h i s t o r y o f the fac ii i ty �nd h i s to r i c a l e conom i c data

f o r tr end an�lys i s . By o b t a ining the r equ i r e d . infoimat ion

fo r Tab l � s . 2 3 thr ough · z g , the a irpor t manag e r �i l l · b e ab l e

to � 6 n s truc t a profi l e o f the a r e a and h i � to ry o f th e a i r ­

.
�ort . i f the inform a t ion i s co l l e c t ed �ver a per i o d o f

t ime , then a devel op�eri� tr end cou l d b e - e s t ab l i s hed .

A g o o d f6tinda t i 6n fro � wh ic h t o b ui l d � s er i e s o f

survey f o rm s i s t? e A i r_ Tr an sp o r t A s s o c i a t i on ' s (ATA)

pub l i c a t i on [ 4 6 ] , "Av i a t ion and the Ec <?nomy : How to Mea su r e

· the . I mp ac t o f - Av i a t ion on t h e Lo c a l Economy . " Th i s d o cum ent

was o r i g ina l l y de s i gn�d for a i r c arr i er � i rpo r t s , bu t it c an

b e u s e fu l ly app + i e d to -· gene r a l avi a t i on a i rpor t s . At non ­

a i r c ar r i er a irp d r t s · , the ATA survey may b e conduc t ed by the

s po �s o r . A t a i r · c arr i e r a ir p o � t s , however � the ATA r eque s t s

t h a t the survey b e condu c t e d through them and t ha t the

s �ons o r o b t � in a i r l ine �gr e emen� to p ar i i c ip a t e in the

survey b e fo r e s ending ou i que s t i onna i i e s . B e caus e s ome of

the info rma t ion mu s t c ome from a i r l ine co rpora t e he�d ­

quar t er s , thi s a gr e �men t. c anrio t usual l y b e g iven by l o c � l

.
� i r l iri e s ta t i on �anag er s , bu t mu � t ins t ead c ome fr om ai r l in e
headquar t e r s .
 114

T ab l e 2 3 . Background Censu s I riforma t i on

city County St a t e

To t al Popu l a t i_on

Num b e r of Hous eho l d s

Ave r a g e Hou s eho l d . S i z e

Numb e r o f Fam i l i e s
. .

_ Av erag e · F am i l y S iz e

. P e r Cap i t a I n come
Me d i an F ami l y I n come
 115

T�b l e 2 4 . P e r s o n a l I n c ome by Ma j p r S ourc e s

( P e r �e nt o f To t a l P e r s o n a l I n c ome )
·
county · St a t e

To t a l P e r s onal ln�ome
To t a l Wag e and S a l a ry ·
D i s bur s eme n t s ·

O t h e r L a b o r I n c ome ·
P'r op r i e t o r ' s Income·
Parm P r opr i e t o r ' � _ I ncome
Non - farm Propr i e t o r ' s I ncome
Pro p e r ty I nconi e
Trans f e r P ayme n t �
··· Le s s : ·. P e r s onal C on t r i bu t i on s
fo r � o c i a l I n su r anc e .

T o t a l Earn in g s
· Farm E a rn ing � .
To � a l : Non � farm E � rn i ng s
. G ov e rnme nt . E arning s
To t a l F e d e ra l
F e d e r a l C iv i l i an
· M i l i t a ry
S t a t e and · �o c a l .
P r iv a t e · Non - far� Earning s
Manufac tur ing ·
Min i n g .
Cont r ac t C ons t ruc t i on
Tr ans p o r t a t i on ,' C ommun i c a t i ons
and· Pub l i c U t il i t i e s
Who l e s a l e �n� Re t a i l Trad e
F in an c e , I n s ur ance and
Real E s t a t e
S e rv i c e s
O th e r
 116

Tab l e 2 5 . Empl oyment D i s tr i bu t i on_ by Indus t r i al S e .c t o r

County · St a t e

Wo rk Fo. r c e

Unemp l oym ent ·

.
To tal Emp l o ynient

Non � a g r i c� � tur a l . Wa � e / S a i ary

Manu � a c tu � ing . .

. Min ing
Contr a c t Coris t r�c t i ori

rrari s por t a t ion and

Pub l i c Ut i l i t i e _s

Who l � s a l e and Re t a i l Tr a d e

F i nanc e , .. I n�urance · arid

Re a l E s t a te ·

Serv i c e s and M i s c e l l aneous

G ove rnment

Al l O t h �r Nori - a� r i cti l tural ·

Ag r icu l tur B:l

 117

T�b l e 2 6. General Airpo t t . Da ta

D i s tance from Airp o r � to C B D

O�neis hip o f Airpo r t

Numbe i b � B a s e d A i r c raft ·

.. · · Pr iv a t e Bus ine s s
Numb e r o f .· D a i l y F i i g h t s (Av. e r a g e )

S che du l e d Coniin er ·cial

I t Lneran t

Lo c a l

Maj o r U s e r s ( Bu s ine s s s e c t o·r .)

.
At t i tude o f Commun i ty
· Toward A i rport

Type . o f M� i n t e nance S e rv i c e s
Av ai l ab l e ·

· A i r cra ft D e a l e r o r Rep r e s enta t iv e

C h a r t e r S e rv i ce . Ava i i ab l e
·
F l igh t I n s truc t {on· Av a i l ab l e

Runway ( s )

Numb e r ( L eng th , · Width)

· Sur face , L i ght ing

I n s trum en t a t i on ·
 118

Tab l e 27 . Tax Lo s s Ca1 cu l a tioris , Un impioved L and

( B a s ed on Pr� s ent Tax Ra te �n d
·

As s e s s e d Value )

A i rpor t S i z e (Acr e s ) .
.
E s timat ed Va l u e p � r Acr e

To t al Value· . o f Land
a
Levy p e r $ 1 , 0 0 0 A s s e s s e d Va lue

P e r -Ac r e Pro � e r �y Tax _ Lb s s

. .

Coun ty P r op er ty _ Tax Lo s s·

C i ty Prop e r t y Tax Lo s s

S c ho o i D i s t r i c t P rop e r ty Tax L o s s
· s t � t e Prop e r ty Tax Lo s �

Prop e r ty Tax Lo s s p e r Y e ar

To t a l Va lue o f Tax abl e Ai r c r aft

B a s e d a t A irpor � · .

Levy . p e r $ 1 , 0 0 0 As s e � i e� Va lue a

L e s s . T ax ·Revenu e s Der ived f rom · ·

Prop e r ty T ax on A i r c r a f t .
per Year .

To t a l Prop e r ty Tax G a in o r ( L o s s )
p e r Ye ar

a
D ep ends upon l o ca t i on o f a i rppr t ( i . e . · � itis i d e o r
. o� t s i d e o f c i ty ' s l im i t s �
 119

Tab l e 28 . Que s t ionn a i r e for Add i t ional Airp o r t D a t a

1. _ Wh en wa � the a i rpo r t e s t ab l i s h e d ?
·
2. . Wh at wa s t� e in i t i a l c o s t o f each
prop e r ty acqui s i t i o n ?

3. I f the prop e r t� was a g i f t . or _ g r ant ,

wha t wa� " the e s � imat ed � a lu � ?
· ·

4. Wha t i s th e s i z e - of the a i rp o r t
in · ac re s ? ·
·

s. Wh at i s the p r e s ent value o f the

l arid s ?

6. Wh at i s t h � valtie - p er acre of vac artt .

l and around the a i rpor t ?

7 . Typ e , date , co s t , t ime o f imp rov�men t s - . ­

runways � hang ar s , l i ght ing and o ther ­
bu i l d ing s - - S t a t e , F e de r a l , and i o c al

8� How mu ch i s �pent on a i rp o r t _ o p e r � t i on
and m a in t enance p e r year - -
l abor cos t s and no n - l abor c o � t s ?
. Lab o r Non - l abor

.9. Fue l · supp i i er ( s )

10 . Numb er o f · t i e - downs

11 . T i e � down da i ly rental f e e -

12 �- Numb e r qf pub l i c T - harig a r s

13 . Monthly r � n t a l f e e o f T� hang a r s
. .
Numb e r o f o ther pub l i c hartg ars and · .
c apaci ty
·

.
Monthly rent a l fe � O f the s e hang ars
per un i t
· ·

Numb er o f p r iv a te hangar s and

c ap. a c i ty.
 120

Tab l e . 2 8 . ( C ont inued )

14 . N e a r e i t c i ty w i t h s ch e dul e d
a ir . s e rv i c e
Fr om t�a t c i ty , whi c h . c it i e s · c an
be . �e ach e d by d i r e c t , non - s top
comm e r c i a l a ir s e rv i c e .?

· 15 . N e ar e s t FAA s erv i c e. s t a t i o n
 121

· rab l � 2 9 . P e r Cap i t a I ntome · and P e r c en t a g e D i s t r ibu t i o n

for Fam i l i e s

Inc ome D1 s t r 1bu t 1 on fo r Fam1 l 1 e s .

P � r Capi ta I n come City Cou n ty St a t e

Le s s than $ 1 -, 0 0 0

$ 1 , 0 0 0 to 1 , 999

2 , 0 0 0 to 2 , 999
. .

3 , 0 0 0 .t o 3 ;· 9 9 9

4 , 0 0 0 to 4 .", 9 9 9

5 , 0 0 0 to 5 , 999

6 ' 0 0 0 to 6 , 999

. 7 ' 0 0 0 to 7 , 999

8 , 0 0 0 to 8 , �99

. 9 ' 0 0 0 to 9 , 9 99

1 0 , 0 0 0 to 11,999

1 2 , 0 0 0 to 14 , 999

1 5 , 0 0 0 to 24 , 9 9 9

2 s ,· o o o t ·o 49 , 999

s o , o q o o r more

To t a l
 122
Th i s p r o c edur e a t a ir c a rr i er a i rp o r t s i s ne c e s s a ry
i f an ac cur a t e s t�dy i s to b e conduc t ed � Th e ATA p o s i t i6n ·

i s exp l a in ed b e l a � by Wi l l iam Osmun o f the ATA I .4 7] :

Th e p r o c edur e . tha t we fo l l ow i s to conduc t
· surveys on ly a t tho s e a i rp o r t s whe r e the a i r
c a r r i er s r equ e s t i t and ar e wi l l ing t o d o the l o cal
s urvey wa r� . S ince s ome o f the info rma t i on · r eque s t ed
from the a i r l i n e s is p r iv i � e g e d da t a , we have an
a g r e eme nt no t to d ivu l g e the sp e c i f i c data from arty
a i r l ine but j u s t to c ons o l i d a t e into a g r and t o t a l .
On thi s b a s i s , the a i r l ine s are w i l l i ng · to prov ide
· u s w i t h th i s informa t i on . Whe re the survey is con ­
�uc t e d und e r the au sp �c e s o f the ATA , i t i s always .
a j o int ventur e w i th the · � i r l ine s and the a irpo r t
manag e r .
It i s sugg e s t e d tha t a i rp o rt mana g e r s · c ontac t the
ATA and r equ e s t . a copy of the ��rvey form s- . Th e a i rp o r t
manag e r s h o u l d a i � o p er fo rm a n o r ig in - d e s t inat ion s tudy t o
d e t e rmine the t ime and d i s t anc e s aved by u s e r s who wou ld b e
f o r c e d to u s e the next cl o s � s t a l t erna t e . Th i s w i l l prov ide
an ins i ght a s . t o the va lu e of the a irport to air pa s s eng e r s .
Ther e i s a good d e a l o f deb a t e about the value o f t ime to .
the trave l e r . As s ta t ed e ar l i er· , . one common me tho d o f
a s s e s s ing t h e v a lu e of t ime i s to a s s i gn i t the s am e value
as a p er s on ' s norma l produc t ive t ime ; I n . o ther wo rds , · if a
pers on no rma l ly e arns $ 1 0 p e r hour , then th e va lue o f h i s
t rave l t ime s hou l d b e c omputed a t tha t r a t e . Th i s s e em s to

be a · v a l id and a c c ep t ab l e a s sump t ion , the r e fo r e � tha t ·· w i l l

b e the ca s e fo r t h e pu rp o s e o f th i s s tudy .
Th e value o f a co11lril.u n i ty ' s a i r carr i e r a irpo r t · to

th e a i r l ine u s e r s ( in t erms of t ime and money s aved by no t

hav ing t o dr ive. to a mor e d i s tant a i rp o r t ) i s d e f ined a s VAC

'
 123

wh e re :

wh·e r e :

Pi =
the to t a l numb e r o f o r i g in and de s t i ­

n�t i on pa s s eng e r s on CAB c e � t i f i c a t e d

· int er - s t a t e and s t a t e c e r t i f i c a t ed

intra - s t a t e a i r ta rr i e� s ,

c =
the c o s t o f d r i v �ng · to the nex t c l o s e s t
l
.
a i rp ort w i th s chedu i ed a i t carr i e r

s e r v i c e ( fu e l co s t , roadway t o l l s , park ing

fe e s , e tc � ) . , one way ,
. .

·c =
the communi ty med ian income d iv i ded by
2

2 , 0 8 0 , the av e r a g e annual number . of hour s

wo rked by fu l l - t ime emp l oy ee , a l l mul t i ­

p l i e d by · a z fa c t or ,

Z a fa c t o r whi c h b i a s e s c mo re c l o s e l y to
2
-

the med i �n income o f the air pas s eng er ;

Z w i l l norma l l y b e gr e a t e r than one ( Z > 1) ;

for s imp l i f i c a t i on o r th e i ack o f da �a . i t

can b e a· s s umed t o b e . equa l t o one ( Z = 1) , ·

r1 =
the ave r a g e t ime for · s omeone in the com �

rilun i ty to dr ive· to ano ther · su i t ah l e a i r

carr i e r a i rpo r t ,
 124

r =
the ave rag e t ime fo r a pas s eng er to dr ive
2
t� the commu � i ty a i rp o r t p l u s the fl i g ht
. .

t ime · to the a l t e rnat e · a i rp o r t ,

F =
the a i r far e t o f l y from the · c ommun i ty a i r - · ·
1
·

por t to the n�x t s ti i ta b l e · a i rp o r t . whe r e

t h e pa s s en g e � cou ld c � tch a tl i gh t . i o h i s

f in a l de s t inat i on ,

JF =
a .j o irit �are f a c t o r � - tha t p er c en t a g e o f

the t i cke t s s o l d i n the c ommun i ty o n a

j o int fare b a s i s wh i c h reduc e s F - 1;

1
a s sume th i s p e rc en t�g e ho l d s true for

o r � g in and de s t ina t i on p as s eng e r s . a l i k e .

I n c a l cu l at i�g c , 1 7 ¢ p er m i l e i s a s s umed to b e the

1
c o s t of op e ra t �ni an au � omob i l e . · rhe a irpor t mana� e r wi l l

have to do . a li tt l e em� i r i c a l ana l y s i s t o d e t e rm irie ave rage

tr ip � e�gth and · � a r k i � g fees at the al t e rna t iie a i rp o r t and

th en su b tra c t the commun i ty airpo r t ' s p � rk ing fe e s · to

d e t e rmine the d i f f e r enc e . Any ro ad . to l l s or o t her m i s c e l �

l a � eou s a i rp o r t fe e s wh i ch the av e r a g e air tr ave l e r m i ght

encotint er s houl d be inc luded in c �

1

G· =
T + . 17 D + (AS / 2 ) { P F PF � + MF , ( 7)
1 2 1 ,

·w her e :

T = road . to l l s , ·

D = one � way m i l ea g e t o a l ternate a irpor t ,

 125
AS =
l eng th o f aver ag e . s t ay in days (no t e :

th i s figure i s d ivided by . t�o s ince

cl
i s orie - way c o s t ) ;

PF 1 =
parking fe e p e r day a t c ommun i ty a irpor .t

(no t e : · th i s f igu r e shou l d b e adj u s t e d

fo r · the p e r c entage · o f peop l e who hav e ·
s omeone e l s e d r iv e them to t h e a i rp o r t
. ari& d o no� p ark a car ,
. .

PF 2 =
park ing f e e pe r day a t a l t erna t iv e � i rpo r t .;
make no �dj u � tmerit to thi s figur e - � a s sume
c o s t o f driving b ack �o co�un i ty o ff s e t s
s av ing o f rio t pay ing f o r parking ,

MF = m i s c e l l aneou s .� i r� o r t f e e s - - fe e s stich a s
.
. . .

to l l s for � eople mov e r s o r · tram� .

E qu a t ion ( 6 ) . a s s ume s that a l l · a ir trav e l er s who ·

.
wou l d u s e the commun i ty ' .s a irpo r t · wou l d a l s o us e th e
a l t ernat ive a i rpo r t .- · Further , i t a s sume s � t h a t a l l a i r
� a s � eng � r s a c i ind ividu a l ly ( i . e . , n o fam i ly 6r g�oup s of
I .

p a s s �n g e r s · wh ich would u s e a car �oo l to . ihe . a l t e rnat ive

a irpo r t ) .
Th e f i r s t a s sump t � on g r e a t l y s imp l i f i e s Eq . ( 6 ) .
For . the a i rport manag er �ho w i s he s to devel �p a mor e " r e a l
wo r l d " answe r , . the fo l l o w ing fine ·o f thou ght i � g iv en .

F i gur e 4 s hows the t rave l er ' s a l t e rn a t ive s � H e c an � i ther

p r o c e ed to h i s d e s t inat i on d i r e c t ly ( rout e Y ) via surface

. tr an s p o r t a t ion · o r pr iv�t� a i ic raft · c as �urn i ng a � eneral
 126

F i gur e 4 . Tr ave l �r ' s rou t e a l t ern � t ive s .

The trave l er d ep a r t ing the o r i g in c ommun i ty (A) has
two · a l ternat ive rout e s t o the d e s t inat ion c ommun i ty ( C ) ;
e i the r . vi a the a l t e rnat iv e commun i ty a i rp o r t ( B ) a long
route- X + Z or d i t e c t l y to the d � s t ina t i on a l ong rou t e Y .
 · i27
av ia t {on a irpor � i s conven i eri t - - in th i s c a s e a s sume none i s ) ,
or he may cho o s ·e to ·t a ke surfac e t ranspor t a t ion t o the

· a l t e rnat ive a i rpor t arid th�n fly to h i � d e s t i na t i on ( rou t e

.· x + z ) · .
.

.At thi s po int , the m anag er mu s t r em emb e r that there

are two differ ent , ba s i c group s which f ly - - the p l ea sur e
t r avei er· and the bu s {n� s s trave l e r . E ach g roup i s a ff�ct ed
d i ff e r en t ly by c o s t and time r e qu i r ed fo r . e ac h a l t erna t ive .
The a�e r ig e t our i s t �i i l probab ly take the c heap e s t
(mone t �r i iy ) a l t ernat iye , but only t o a p o int . A s the t ime
.
fci r � ou t e Y inc r e a s e s , rou t e X + Z bec om e s more and mo re
a t trac t ive . . A f a i r l y · s ound a s sump t i on , t o s imp l i fy th i s
matter , i s tha t �o s t tour i s t s who or i � ina l ly choo s e a i r
trans p o r t a t i on f o r the i r vac a t i�n trav e ls w6u ld cont in�e t o
d o s o and c ho o s e . t h e X + Z route . · The l im i t irig factor i n
thi s a s sump t ion i s tha t a s t h e x . + .Z t ime ( T x z l app r oache s
the Y t ime ( Ty ) , mor e p e op l e wi l l cho o s e the op t i on o f
s ur fac e transpo r t a t i o n . Ther e fo r e , i f X + Z co s t < Y c o s t ,

· t h�n trave l er t ak e s X + Z op t i on ind fl i e s . . If X + Z

c o s t > Y co s t , then trave l �r comp�r e s · t ime op t io n . If

T y . > 2 (T xy l · but no t l e s s than e i ght hour s , then . trave l e r

t ak e s X + Z a l t e �nat ive . I f Ty < 2 ( Tx z l or _ T y < 8 hour s ,

then trave l er t ake s Y al t ernat ive .

The a irpo r t manag er . s hould e s t ab l i s h a p ro f i l e o f

.
the p a s s eng e r s_ mov ing thr ough th e commun i ty ' s a i r t'ermina l .
Arme d · wi th thi s · informat i on , he can de t ermine mo r e

r e a l i s t ic a l ly t h e va lues o f the · above -ment i oned factor s .

 128

I n a s s e s s in� the a l t e rnat ive s � f the bus ine s s

trave l er , i t' mu s t b e r ememb e r e d tha t t ime i s very impor tant

to . bus i ne s smen . . · As sum e then , that the bu s in e s s tr ave l e r

· � i l l · ta �� t h e opt i on whi th requ ir e s the l � a s t · t ime to · g e t t 6

the - de s t ina t i on .

I f t � e · next s ti i � ab l e a i r � ar� i er airpo r t . i s al s o the

next s u i tab l e commu te·r a irpo r t , then Eq . ( 6 ) c an be

r ewr i t t en to cover . commu t e r s e rv i c e s a l s o . Equa t ion ( 6 )
wou l d then · be wr i t t en �s :

· where :

V = value o f s chedu l ed a i r s e rvi c e ( a ir

. ss
.

c ari i er p l u s c6mmuter s erv i c e ) ,

P2 = th e to t a l numb er o f o r i g in and · d e s t i n a t i on

p a s s eng e r s on c ommu t e r s e rv i c e a i r cr a f t .

O f c our s e , i f thi s i s no t the c a � e , then a s epar a t e

equa t i on s im i l a r to E q . ( 6 ) c an be s e t up for t h e commu t e r

imp a c t and a l s 6 . fo r g en e r a l av i a t i on impac t . One o ther

no t e of c au t i o n : th i s e qu a t i on c on s i d e r s only or i g ina t ing

�n � t ermi nat ing p a s s eng e r s - - at sma l l a i rpo r t s , th i � i s

usua l �y a l l the r e i s . . A t l arg e a i rp or t s , such a s At l ant a ;

howev er , the t r an� i tory p a s s eng er ( that i s a p a s s eng er who

i � . a t t he a i rp o t t to chang e from 6ne a i rc�aft to - �no the r )

may c ompo s e as . much as 7 0 % o r mor e o f the . t o t a l enp l an ement .

· The s· e p a s s eng e r s mu s t b e d i s c ount ed in · th e equat i on . The y

 129
�i l l hav � . an · imp a c t on t�e i e ta i l s a l e i a t the � i rp o r t wh i c h

c an b e · tal l i ed l a t e r ; . but , to inc lude trans i tory p a s s eng e r s

iri · Eq · . ( 6 ) , wo� l d be to ov e r � t a t e th i s · impac t . F inal ly ,

. Eq . ( 6 ) a s s um e s iha t ev �ry p a s s � ng er · � r iv e s s epar a t e ly to

the a lternate a i �p or t . Aga i n , through a p a s s enger survey ,

. . . .

the a i rpo r t manag e r cou l d d e t ermine a good approx ima t i on o f

t he numb e r o f . p e op l e who woul d drive t o the al t erria t e a ir ­

.
por t and · the ave ra g e numb er o f a i r l ine p a s s eng e r s p e r car .

Ar�ed w i th the s e two � s t imat e s , the a i rp o r t man�� er c �n then

adj u s t E q . ( 6 ) · a cc oi�ing ly �

To i l l us t r a t e how Eq s . ( 6) and . · ( 7 ). may b e . ap p l i e d ,

.
Bakers f i e l d , C a l i fo rn i a , i s u s ed a s an · ex amp l e . I ri 1 9 7 6 ,

B a ke r s f i e l d moved 2 2 1 , 7 2 6 p a s s eng e r � on c e rt i f i ca t ed a i i

c a rr i er s through i t s fac i . l i ty a � Me �dows F i e l d . App ro x i ­

ma t e l y 5 9.% o f the p a s s enge r s w e r e bus in e s s t r ave l e rs { 4 8 ] .

B e c au � � o f the natur� o f the Baker s f i e l d mar k e t mo s t 6 f

t ho s e p a s s en g e r s now choo s i ng c omme r·c i a l a i r transp o r t a: t ion

· . a s th e ir mode of t r av e l wou l d probab ly s t i l l choo s e that

�o de . I f Bake r � f i e l d d i d no t have a i r l ine s erv i c e they

w 6 uld dr ive to L o � Ang e l e s . I f i t wer e a s s ume d t hat a l l the

p a s s eng e r s drove to Lo s . Ang e l e s ind i v i dual ly and then

b o arded an a i r c r a f t for the i r . d e s t ina t i on , the addi t i ona l

exp ens e t o the c ommuni ty ( the n e g a t ive imp a c t o f hav ing to

dr iv e t o Los Ang e l e s o r the po s i t ive impac t o f hav ing an a i r

c a r r i e r a i rp o r t a t B ake r s f i e l d) wou l d b e · � � l cul a t e d · a s

fo l l ow s : ·
 130

where :

P = 2 2 1 , _ 7 2 6 _ p a s s e ng er s ,
1

D = ·110 miles ,

.z = 1'

r 2 . 4 4 hour s ,
1
=

T . = 0 . 6 2 hour s ,
2

F1 · = · $ 1 8 . 2 5 ,
.

JF = ( 1 _ -_ - . B 0) = 0 . 2 0 ,

AS - 4 days ,

PF = $ 0 . 00 ,
1

PF . = . $ 4 . 0 0 ,
2

MF = " $0 . 25 ,

· c = $ 1 4 , 5 0 0/ 2 , 9 8 0 = $ 6 . 9 7 p e r hour ;
2

and u s ing Eq . ( 7) :

ct = o + - . 17 (110) + (4/ 2) ( 4 . oo - b) + . 2 5 ,

c = $ 1 8 . 7 0 -+ $ 8 . o o + $ 0 . 2 5 ,
1

c
1 = $ 26 . 9 5 ;

the r e for e , VAC equ a l s :

.VAC �- ? 2_ 1 , 7 2 6 I 2 6 � 9 5 "+ ( 6 � 97 ( 2 . 4'4 - . 6 2 ) .) ""I 18 . 2 5 ( � 20) J , ·

VAC . = - 2 2 1 , 7 2 6 [ 3 5 . 9 8 ] ,

VA C = . $ 7 , 6 7 8 , 8 9 8 -�
 1 31
The aver a� e trave l in � p arty s i z e a t Baker s f i e l d i s 1 . 5 5

p a s �eng e r s p er trip { 4 8 ] ; · the r e for e , V · woul d hav e a va lue .

AC
. of :
. . .

VAc = ( 2 2 1 , 7 � 6 / 1 . 5 5 ) [ 3 5 . 9 8 .]

YAc � ·$ s , 1 4 6 ; g o � .
_

I t c an b e conctuded from thi s ana ly·s rs tha t i f

B ak�rsf i e � d d i d no t have a n a ir c arri e r a i rp o r t at Me ado�s
F i e l d and a l l p a s s eng e r s had t o dr ive to Los Ang e l e s

I n t ernat i onal Ai rport , i t wou l d c o s t the GOmmun i ty app rox i �

ma t e l y $ 5 mi l l i on p e r year in addi t i ona l trav e l exp en s e s .
Th i s s am e g ene ral m e thod o f analy s i s can b e �pp l i�d for

commun i t i e s and g enera l av i a t ion s e rv i c e s .

I n deve lop ing a no - a irport s c enar i o , the a i rpo r t

manag er s ho ul d contac t l o c a l bus ines s e s , ho sp i t al s , l aw
e nfor c ement ag eric i e s , ot any o ther a i rp6r t us e r s ,_ and to
d e t e rmine the imp a c t o f an a i rp o r t c l o s ur e . Th i s may v ery

e a s i l y b ec ome a r e a l i ty i f the a irport has only one runway

wh i ch mu s t be c l o s e d for r econs truc t i o n . Th e a i rpor t
manag e r may find tha t i t i s che ap er in the l ong _ run to p ay
a pr em ium for n i g ht work on a cons truc t io n proj e c t rather
than c l o s e the a irpo rt for a p er i o d o f t im e .
I t wou l d a l s o b e wi s e for the a i rp o r t manag er · t o p ay
a v i s i t to th� l o c a l t ax a s s e s s or ' s o ff i c e to d e t erm ine the

tax e s g en er a t ed by the a i rpor t . I n the c a s e o f Me adows

F i e l d in B aker � f i e l d ; C a l i forn i a , thi s me ant over $ 3 0 0 , 0 0 0

 132

. · fo r the g eneral t ax fund of Kern County fo r 1 9 7 5 [ 4 8 ] . ·Th i s

_ f i gure �o e s no t . i n c l � de the federal o r s t ate av i a t ion t ax e s

· co l l e c t ed b e c au s e of Me adows · F i � t d • s op er a i i ons .
The � �o ma j o r d i s � b enef i t s to an a i rp ort are a ir and
n o i s e p o l lut i on . I nform a t i on on· a i rport envi ronmental
.
fa c to r s affec t ing the commun i ty can be found in the a i r ­
.
p o r t , s l a te s t Ma s t er P l an o r . Env ironm� n t a l - I mpac t As s e s smen t.
I f the s e . ar e ou tdated or un � va i l ab l e , " it i s s ug g e s ted tha t
the a i rp o r t manag e r cont a c t the l o c�l hea l th d�partment or
environmen t a l ag ency for ·a s s i s tanc e .
Onc e iil the . dat a has b e en co l l e c ted , i t s hou l d b e

s e t up much l i ke a b a l anc e she e t wi th c o lu�n s for the

b enef i t s and d i s - b ene f i t s .
The s e co lumn s s hould then b e
.
s ummed . and the r e sul t ant . di s p l ayed at the b o t tom .
 CHAPTER . VI I

THE ROLE OF A PUBL i C RELAT iONS PROGRAM

- I ntro du c t ion

Th i s cha� t e r cout d a c tua l l y b e summed up in one

s�nt enc e . A g b o d pub l i c r e l a t i ons p r o g r am · i s v i t a l to an

airp o r t . � An a i rpor t ex i � ts to s erve p eopl e ; wi thou t the

s upp o r t of the c ommuni ty , it c anno t l ong s urv ive . . · An

a c t ive , p o s i t ive , pub l i c r e l a t i on s p r o g r am i s nec e s s ary i f

the . . a irpor t manag er i s to - g a in publ ic support . Al thou g h

ev erything may b e " smoo th s a i l ing " r i ght now , a t s ome

p o int in the fu tur e a cr i s i s w i l l dev e l op . Fo r g e t about

s tar t ing a pub l i c r e l a t io n s p r o g r am then - � i t ' s too l a t e .

A pub l i c r e l a t ioris p r o g ram i s a l o t l ike f i r e insur anc e ;

i t ' s g r e a t � r o t � c t i on a g a ins t f i r e s but one ha s to t ake

the · p o l i c y out befo r e the fire s ta r t s .

The Ro l e

I f a c ommuni ty al r e ady ha s an a irpor t then i t a l s o

has a pub l i c r e l a t ioils p r o g r am . The qu e s t i on i s , ' ·"What

k ind of pub l i c r e l a t ions p r o g r am is i t ? "

I f the a i r po r t and the c ommun i ty i t s erve s ar e in

c onfl i� t , the b a s ic p rob l em c an usua l l y b e t r a c e d to a lack

o f knowl edg e and unde r s t and ing o f the g o al s and obj e c t iv e s

o f th e a i rp o r t and the c ommun ity . I n mo s t c a s e s wher e the s e

133
 134
g o a l s and ob j e� t i�e s ar� we l l d e fined ; they · are a l s o

com:pa t ib l e . When the r e i s a l a c k o f . unde r s t and ing , . the

·

c ati s � c an u su a l ly _ . b e traced t6 a i rpo r t m�nag ement and p�b l i c

o ff i c i a l s n e g l e c t ing t o pub l i c i z e the . goa l s · and - obj e c t i ve s . ·

o f the - commun i ty or the a i rp o r t .

A · pub l ic r e l a t ions prog r am shou l d keep the commun i ty

i ri formed · ab ou t � very a sp e c t o f t h e a i rpor t . Th i s can take

.
the fo r� o f gti �de d tour s for anyone · from � ch � o l ch i l dr en to

. s en i o r c i t i z ens" ; c o l o r ing bo oks ; pub l i c me e t ing s ; sp eake r s

fo r s e rvi c e c l ub s ; and - pre s s r e l ea s e s . �n exc el i e � t e l ement .

o f a pub l i c r e l a t i ons p r o g r am wh i ch many a i rp o r t s u s e i s the

Chamb e r of Commer c e Av i a .t i on Comm i t t e e . The key to a

suc c e s s fu l pub l i c r e l � t ions program i s . ·g e t t ing the . c omniuni ty

invo lv ed , I t i s imp o r t ant tha t th e pub l i c b e kep t - informed

as to wha t i s . hap p ening at the a i rpo r t and how it i s

b ene. f i t in g the c ommun i ty . · . Many p eop l � _ f � e· l the ·a i rp o r t i s

only f o r p e op l e who own a i rp l ane s b r fly � i n s ho r t , the

" r i ch p eop l e . " A s i t h a s b e en · s hown , th i s is no t true .

.
The a i rpo r t do e s· b e ne f i t the en t ir e - · commun i ty and th i s fac t

mu s t b e pub l i c � z ed . Unf o r tuna t e ly , too many a i rp o r t

s pon� o r s d o rio t pub l ic iz e the i r c6�tr i bu t i o n s to the

c ommun i ty .
Char l e s Spenc e , V i c � P r e s i d en t for Ptib l i c Re l a t i o n s

o f the A i r c raft Own e i s arid P i l o t s A s s o c i a t i on , l i s t s s even

gti i d e l i rte s fo r a i t�o r t pub l i t r e l a t i oris [ 4 9 ] . The s e can b e

s ummar i z ed · a s .fo l l ows : .

 135
1. Always b e hone s t and s tr a i g h t �orwa�d in

N ever . try to cove· r up . o r . dev e l op c o sm e t i c

. . .

c �mmunica t i ons .

pub l i � � el � � i on s programs o r , . a s a �toup , d e c ide o n a

' 'pa r ty · l ine " f� r · the · a i rp o r t .

2. . on e p e r son s h oul d b e r e �pons ib l e fo r head ing up

. . '
commun i c.a t i o Ii s and c o o r d i�at i c>n o f i riforma t lon ' d i s tr i bu t i on .

I de a i l y � thi s p e r son s hou l d hav e exp e r i e � c e in pub l i c

.
·T e l a t i oris o r c onunun i c a t i .on's � Th i s p er s on wou ld P ! OVi de

s our c e ma t e r i a l on a� i a t i on and the a irpo r t for s p e e ch e s ,

p r e s s r e l ei s e s , me e t ing� , · an � s o for fh .

3. I d ent i fy th� p reb l e � a r e a s ; exp l a i n the s i tu ­

a t i on to the pub l i� and l e t th�m know wha t i� be ing do ne t o

corr e c t t h e s i tu a t i on . . I f t h e p r o b l ems c anno t b e r e c t i f i ed

inuned i a t e i y , ex p� a in why .
· Th ere sho u l d b e a fr ee f l ow o f
.
i n forma t i on s o a s to prov i d e fo r . an a tmo sph�r e o f : d i scus s ion .

4. G e t · the c omm�n i ty invo lved w i th th e . a i rpor t .

S o�e · a i r po r t s have d6rie thi s b y buil d ing s o f tb al l d i �monds

and s ponio r ing t� ams · . . S how· the publ� c · that the a i rp o r t i s

an int e g r a l p a r t o f the c ommun i ty .

·. ? • . Ke ep the communi t:Y adv i s ed on who u s e s · the . a i r ­

p o r t . and why . Pub l ic i z e sucb . f ac t � � � · an indus try ' s

a t trac t i on t o th·e c ommuni ty b e c au s e o f the a i rpo r t . Conduc t

.
a survey ( such a s the · ATA s.urvey) to d e t e rmine the e conom i c

imp a c t o f t h e � i rp o r t and u s e th i s to s how · the � i rp o i t ' s

.
con t r 'i bu t i o n · .. t o the co mm\in ity . Show · the pub l i c , f ac tua l ly ,

how . the a i rport b en e f i t s the en t i r e . commun i ty , no t j u s t . a

sm� l l � e gment .
 1 36

6. Dev e l op a s c enar i o o f _ the communi ty w i tho u t · an

a i rp o r t . Po int ou t the a l te rna t iv e � a nd s ec ondary � ff e c t s

o f the : s i tu a t i on . Man� p eop l e may t a k � t h e a i rp o r t for

g � �nted .

?� I d ent i fy oni � s a l l i e s . I t i � m�ch · b � t t e r to

. ; .

have a th i rd p a r ty to champ ion - the c au s e . The r e are · many .

g roup s such a s the chamb e r o f . t ornm e rc e , labo r un i ons ,

s e rv i c e g roup s , o r homeown e r a s s oc i a t i ons who may supp o r t

t h e c au s e . · · .

S ome o f the s e p o in t s . are r e dundani , having a l � eady

b e en s ta t ed , bu t t hey b e ar r ep e at ing b e c au s e they a r e s o

. imp o r t an t .
Ano ther imp o r t ant a s p ec t o f a . . good pub l ic r e l a t i o ns
.·

prog r am i s tha t of e du c a t ing the a irp o r t u s er s , pr inc ip al ly

the a i rp o r t t enari t s , · a i r c r a ft owne r 5 , · and p i l o t s . No l ong er

c an the avia t i on commun i ty ho l d the a t t i tude tha.f " th e a i r ­

p o r t w a s h e r e . f i J;" s t - -why c an ' t the su b d iv l. s ion mov e ·. " The s e ·

a i rp o r t u s e � s mu s t und e r s tan d the c ommuni ty ' s prob l ems and

· c oop e r a t e w i t h a irpo r t manag emen� in e s t ab li s h ing a g o o d

n e i g hbor p o l i cy .

Summary · ·

Mo s t a i r p o r t / commun i ty confl i c t s r e su l t from one o f

two p rob l em s . E i ther a i rpor t minage�ent d i s r e g ar d � the

c ommun i ty ' s needs ··a nd d e s i r e s o r the r e i s a " l a ck of g o od

commun i c a t i o n b e tween the two f a c t i ons , l ea d ing to a m i s ­

under� tand ing � Mri s t p to fe s s i ona l a i r po r t manage r s r e co gn i z e

 137

the value o f a g � od ne i ghbor p o l ic� · and s e ek t o s a t i s fy the

C:ommun i ty ' s ne eds - and d e s i r e s � Th i s then l eave s the

s e cond a l t e rna i iv e . A good , ic t i�e pub l i c r e l a t i ons p r o g r am

_shoul d · . e s t �i b l i s h a c ommun i c a t i on l. i nk w i th the c ommu n i ty and

r � duc e or e l im i na t e the po s s ibf l i �� of an a irpo r t /

communi ty. confl i c t .

One · (ina l a s p e c t o f a pub l i c r e la t ions p r o g r am i s

'
'tha t . th ere i s ri o p o int l. n de t erminin g the e c onom i c imp a c t
. ·
. 6 f an a i rp o r t �f � ne i s rio t go i�g t 6 pub l i c i z e he f ind ing s .
t

A good ; o b j e c t ive ·s oc i o -. e c �nom i c imp a c t s tudy o f the a i r -

. '•

por t c an fo rm the · c o rne r s tone o f a pub l i c r e l a t i o n s p r o gr am .

A s tudy su ch a s thi s shou l d b e u s e d . to he lp · the pub l ic

b e t t er unde r s t and the imp o r t ance of the c ommun i ty a irp o r t .

. Edwin Thurmond o f the Pho e n ix , Ar i zona , Av i a t i o n

Dep ar�men t summed i t u p b e s t when he s a id [SO] :
Pub l ic r e l a t i ons � - pub l i e a f f a i r s - - pub l i c imag e !
Tha t ' s wha t you ' r e r e a l ly s � r iving to do ; imp r ove
your pub l i c imag e . Rememb e r , the succ e s s ful pub l i c
r e l a t ion s mari i s the f e l l ow who l o o k s l i ke . he ' s
. ·l e ading the · b and i n .the par a de wh en he ' s r e a i ly
b e ing run ou t o f t own .
 CHAPTER VI I I

. ' . .

CONCLU S I ONS AND RE COMMENDAT I ONS

· Conc l u s i ons

Wh en this p ro j e c t was . f i r s t ent e r ed into , it wa s

thought t ha t the sub � e c t and the sub s e qri e nt ana ly s f s wou l d .

. .

.
b e � e l a t iv e l y s t ra i g htfor�ard . Su ch wa s n o t t h e . c a s e � Th i �

i s du e p r im_a r i l y t o th e fact t ha t a n a i rp o r t impac t s upon a .

_v ery . b r o ad s p e � trum o f the communi ty .

Wh i l e the s t a t ement b y S t anford Re s e ar c h j n s t i tut e

abou t the imp o s s i bi l i ty o'f mea sur ing 't o t a l impa c t ' may no t

b e an ab s o l u t� truth , i t come s v e ry c l o s e [ 4 0 ] · . One

c onc l � s i on upon crimp l e t jon of thi s p r � j �c t i s : th� t i t i s

v e ry d i f f i cu l t to me a s ure t he' 't'o t'a l s o c i o - ec onom ic imp act

o f a_n airport upon th� commun i �Y , bu t a us eful e s t ima t i on of

.
th� magn i�u d e c ari - b e o b t a in e d . W i th mo s t s ub j e c t s , the
. . .

l e� e l o f ana lys i s can b e t a i l o r e d to the ri e e d . Such i s the

c a s e w i t h t�e s o c i o - e c onom i c im�a � t o f an a i rpo r t . As

s t a t e d previ ous l y , a pr a c t i c al me t ho d of an alys i s . for a i r ­

p o r t · manag er s wa s . s o ug ht . I t i s b e l i ev e d tha t s uc h a me thod

ha s b e en · found .

Mo s t p rev i ous m e t h� d s o f ana ly � i s ut i l i z ed one

pr imary me thod o f ana l y s i s and conc ent r a t e d i n one area o f

imp ac t . F o r exa�p l e , pr ev i o� s me thods d e a l t s o l e l y w i th

c o s t / b ene f i t ana l y s i s , · survey ing , o r pr o f i l e ave r�g ing .

138
 .139

the s e · · rne tho d s w e r e u sua l ly l im i t ed in th� i r s c o p e · such as

j o b c r e a t i on , t ime s aved , qua l i ty o f l i fe improvement , and

.. .·
· s o f o r th . The impa c t of an ·a i rp ort i s very broad iri na tut e ;
.
t h er e f o r e , the anal y s i s s houl d b e b road .

. I f the ai rp ort mana�er fo l l ows the g�a lys i s � a s

.
· o u t l ined in Chap t e r V I , h e wi l l dev e l op a � r o ad · ana lys i s
o f h i s a i rpor t ' s s o c i o - e c onom i c fmp a c t up o n the c ommun i ty .

One add i t i onal wo rd to · the � i�p o r t manager , howev e r . He

shou l d a lway s s t a � � l � rt t o � orne n ew im� a c t to h i s aitpo r t .

I t i s ent i r e l y : po s s i b l e that a par t icul ar a i rpor t impa c t s
.
a conimuni t y i n a way whi ch · i s . to t a l ly un ique . Thi s s hou l d

b e re c o gn i z e d and · c �ns i d e r e d in the ana l y s i s .

Ano ther c onc lu s ion r·e ached from th i s ana iy s i s i s

that a i rp o r t s g ene r a l l y imp a c t upon the c ommun i ty i n a

favri ra b l e mann er . At the l ar� er a i rpor t s such a s · L o s · ·

Ang e l e s I n t e rna t i onal or · ch i c a g o ' s O ' Hare whe r e no i s e

p r e s en t s a s i g n i f i c an t p r ob l �m , the b ene f i t s s t i l l outwei gh

the d i s " bene f i t s . Who c ou l d even c onc e iv e o f Los Ang e l e s ,

o r for tha t m a t t e i , � o � thern C a l i fo rn i a , wi thout .Lo s

.
.

Ang e l e s I n t erna t i ona l ? True , · s ev e � a l thous and p e op l e may b e

a dver s e ly a f f e c t ed b y th e no i .s e p r o duced b y the a i r c r a f t

u s ing t h e a i rpo r t , bu t m i l l i ons o f p e op l e a r e s erve d ' by the

a irpo r t . Lo s Ang e l e s I n t e rna t i onal A i rp o r t r ep r e s en. t s �

$ 2 0 . 3 m i l l i on pe r day imp ac t to � he c i ty o f L o s Ang e l e s [ 5 1 ] .

To c l o s e an a irp or t b e cau s e o f i t s adver s e imp a c t s on a · f ew
..
whi l e b ene f i t ing many wou l d .b e to " throw the b.aby out . wi t h .

the b ath wa t er . "

 140
Sma l l er a i rpo r t s , par t icularly tho s e w i th s chedu l e d
a i r · s erv i c e , a l s o hav e a po s i t ive impac t upon the - commun i ty .
The · airp o i t may we l l b e the mo s t _ s ig n i f i c ant fac t6r
influe n c ing indu s tr ia l .d ev e l opment o f the c ommun i ty . Th i s ·
a s sumes · that the c ommun i. ty d e s i r e s growth and dev e l opmen t .
. .

Wh i l e the qu� s t i on o f gro�th _ o r no - growth i � i va lue

.
j udgm e n t qu � it i on to b e an swer e d by th� ind i � i dua 1 com -
. .

mun i ty , i t i s b e l i ev e d tha t th e no - growth a l tern a t iv e i s a .

ve ry p o o r cho i c e . The fu tur e sh .o u ld prove · tha t thi s

a l terna t ive wi l l· . l e ad . to a d eg enera t io n o f the qu'B. l i ty o f

l i fe and a s t agna t ion o f · the l o c a l cul tu re . O n t h e o ther ·
hand , a g r owth phi l o s ophy , one o f c ontro l l ed s el ec t iv e
g r owth ' can he lp a c ommu .n i t y rema i n' v i t a l a n d dynami c .
Th e piimary d i s - b ene f i t s o f an a i rpor t ar e
eco l � g ic a l or - env i ronment a l in n a ture . The a i rp o r t u su a l l y
d o e s no t d i r e t t ly cau s e thes e · d i s - b ene f i t s , r a ther the . a i r ­
p o r t mo re o f ten a c t s a s a c a t a lys t or an ind ir e c t caus e .
Airp o r t s do no t g ener a t e no i s e or a i r p o l lut ion , the
ac t iv i t i e s and r e l a t ed deve l opm ent around the · a i rp o r t cau s e
the s e prob l em s . Reg a rd l e s s o f th e s ourc e , the a i rp o rt i s
u s�a l l y held re spons i b l e s o the a i �p o r � mana g � r s hbald
d evo t e his b e �t �£fo r t s to r educ ing the s e d i s - b e ne f i t s .

Two j u s t i c e s o f the F l o r i da cour t h ave thi s to s ay

ab ou t an a i rpo r t ' i t s r o l e in the c ommuni ty ' ancf i t s d i s -

b en ef i t s [ 3 ] :
 141

I n the ca s e o f S t eng e i v . �randon , 1 5 6 F l a .

.
5 9 2 , 2 3 So . � d 8 3 5 , 8 3 8 , 1 6 1 A . L . R . 1 2 2 8 � Mr .
Jus t i c e Thoma s , in �n 6p i n i on on the subj � c t o f
· avi a t i on ' s p l a c e i n modern a f f a i r s , · s t a t ed :
. I n any m e t ropo l i tan c en t e r o f Amer i c a the
ftroning · o f a i tp l ane mo tor s is · a lmo s t cons t ant and
obv i ou s l y a i rt raf t b e a r ing �� s s eng e r s , ma i l , and
.
fr e i ght in and out of c i t i e s cou l d not op e r a t e w e r e
the ir appro�ch e s a n d dep a r tur e s c o n f i n e d to terr i ­
tory uni nhab i t ed and untrave r s ed . by ro ads a·nd .
h ighways . I n . a lmo s t ev e ry town o f any cons e qu en c e
• . · . t h e s ound o f a i rp l anes ha s b e en a lmo s t
inc e s s an t a s men t r a i n e d in them fo r the very
purp o s e o f s a fegua rd ing the cohs t i tu t i onal guar an ­
t e e s , . inc lud ing the one tha t a p e r s on may no t b e
dep r iv e d o f prop e r ty wi thou t due p ro c e � s b f l a� , by
wardi n� off the a t t acks of enem i e s advo cat irig the ·

ideo � o g i � s w� i ch were the i¢ry arit i th� s � s o f ' the ·

Ame r 1 can · sys t em o f gove rnment . The s e a i rp l anes ar e

n o t me r e no i s y nu i s anc e s , nor are they v eh i c l e s
·

s t i l l in . the exp er imen t a l s t ag e , but they · r ep r e s ent

the l a te s t �e�ns of tran�pci r t a t i ori ; and c e r t a inly . i f
w e are t o progre s s. , . the e s t a b l i s hment o f a i rpo r � s to
a cco�odate them shou l d b e encourag e d .
·

Mr . Ju s t i c e Ter r e l l · in the cas e o f S t a t e o f

F l o r ida � . . County o f D ad� , 2 7 S o . · 2 d - 2 8 3 , 2 8 5 , made
the fo l l ow ing appropr i a t e ob s erv a t i ons : ·
The a c t in ques t i on de a l s w i th a i rp o r ts an d
a c c e s s o r i e s ; bu t th i s Court knows tha t a i r transpor �
t a t i o n i s o�e o f the g r e a t i nnova t i ons o f the
ag e . • . . I t i s qu i t e t ru e tha t . the re were no Ju l e s
Verns o r Wr ight Bro the r s i n th e . Cons t i tu t ional Con ­
ven t i o n to p o r t end the marv e l ou s chan g e s the fu ture
h�d . in s t o r e ,. bu t it wa s no t int ended b y tho s e p r e s ent
that the de ad hand o f th e p a s t s houl d s hap e th e
, d e s tiny o f the fu ture . Cons t i tu t i ona l manda t e s are
. w i s e in propo r t i on to the manner i n wh ich they
r e spond to th e pub l i c we l fare and s hou l d be c o n s tru e d
t o eff e c tua t e tha t purp o s e when p o s s i b l e . . The l aw
d�e s no t l orik w i th f avor · on s o c i al . or p r o g r e s s iv e ·
s ta l ema t e s .

Ano ther conc lus i on i s tha t an a i rpor t i s· an

impor t ant e l emen t o f a commun i ty ' s . qua l i ty o f l i f e and

deve l opment p l ans . Whe the r a c ommuni ty i s l ar g e · or sma l l , ·

i t n e e d s g o o d acc e s s to the nat i on ' s a i r t ran s p o r t � t ion

sys t em i f it is t o g row and p ro s p er . I t i s b e l i eved that

Whe a t ' s analy� i s i s ·;f a c tu a l and val i d I 2 3 , 2 4 , 2 5l . An other

 14 2

conc lu s i on , t.h erefor e , i s tha t for commun i t i e s wi th p opu ­

l a t i ons o f 1 0 , � 0 0 to 5 0 , 0 0 0 , . a i r s erv i c e i � the �o s t
fmpo r t an t f �i'c t o r iriflu enc i�g . g r owth in . a commun i ty . It is
s u � � e c t e d tha i this ho ld � t�u e fcir al i ��mmuni t i e s , but the
ana l� s i s b ec om� s too c ompl ex for . c i t i e s over 5 0 , 0 0 0 p opu ­
l a t i on . An a i rp o r t shou l d a l s o help p l a c e a · comm1:1n i ty in
. . .

an adv antag e ou � . p o � i t i on wh en i t c om� s to induitr i a l

r ec ru i tment . As s t a t e d p � ev i ou s ly � a . commun i ty w i th a
g r e a t de a l t o · o ffer iri the · form o f g o o d a i �por t f�c i l i t i e s ,
. .
g o ? d c onne c t ions wi t h o ther trans p o r t a t i on n e tworks ' an
amp l e l ab o r fo r c .e , .an a i r indus tr i a l PB:i"k , g o o d · educ a t i on ,
m e d i ca l and r e c r e a t i onal fac i l it i e s· , a favo rab l e t ax
s truc tur e , and a . . g enerally f a�orab l e · env i ronment , can afford
to be s e l e c t ive abou.t the · typ e . of indu s try and the ex t en t
o f indu s t r i al i z a t i on i t des i r e s . . T h e a i rp o r t p l ays a key
( but no t s o l o ) ro l e in e s �abl i s hing · the c ommun i ty ' s
a t t r ac t iven e s s · to indu s try . .

The a i rp o r t .o ffer s many opp o r tun i t i e s wh i ch ar e

n e �r ly imp o s s ib l e to m ea s ur e quan t it a t iv e l y . S oniE r o f the s e

b enefi t s inc lude · · the s erv i c l.ng o f ag r i cul tu�a l a i rcraft ,

eme rg ency med i c a l s erv ic e s , d i s a s ter r e l i e f , p ip e l ine ·
patr o l , b ank ch e c k trans fer s , b e t t er mai l and p ackage
s e rv :l c e , and an ov eral l improvement in th e qu a l i ty of l i fe .
F in a l ly , a g o o d pub l ic r e l a t i ons pr�gram i s a

. n e c e s s i ty . · wi thciti t such a program , the a i rp o r t manager i s

invi t ing di s a s t er . M o r eove r , the c ommuni ty has a r i ght t o

kn6w wha t g o e s d rt a t the i r a i rp o r t . . I f a n a i rp o r t man� g e r

 143

d id ev erything . e l s e r i ght bu t ne g l ec t e d a commun i ty

r e l a � i ons p r o g r a� � a l l o f h i s a � t ions m ay go £or naught .

· Re commenda t i ons

The fo l l ow. in� � · b r i ef recomm�nda t i ons a r e. made fo r the

. . .

re ader ' . s e d i f i c a t i on :
1. The FAA shou l d a g a i n b e com e invo lv ed in the
s tudy of an a i _r p o r t ' � imp ac t up on the commun i ty ·. . The .
. . .

E a s t e rn Reg i o n o ·f th e F� produ c ed a g o o d · repor t on the

s ubj e c t [ 3 1 ] , but it ne ed� · to b e updated and exp anded . t� e
FAA s e eiris t o hav e aband o ned thi s ar � a o f s tudy . App ar ent ly ,
the· FAA was sub j e � t e d to c r i t i c i sm · fo r d�l v ing into an area
. .
.

.
�h i ch S ?� e � hotight inapp rop r i a t e i or . ih� a g ency . Wha t ev e r

.the � e a s ons , · the current s i t�a t i on ca l l s fo r th e FAA to

ins t i tu t e a new s er ie s of inv e s t i g a t ions in the area o f the
s o c io - e conom i c imp a c t of · · the a i rp o r t upon the coinmun i ty .

2. Th e . FAA s hou l d r e qu i r e a mo r e · compr ehens ive

e co nomic impac t ana ly s i s for . ai�p o r t m a s ter p l ans . The

e conom ic . impa c t ana ly s i s · done fo r mo s t mas t e r p l ans . i s

inadequa t e . A p o s s ib l e s i de ben e f i t t o thi s i s tha t i t may
h e l p p l a c e env i ronmental cons i d e r a t ions in t h e i r proper
p e r s p e c t ive . F or ex amp l e , th e s earch fo r the "Mo j ave

. s qu i rr e l " h e l d . up a $ 7 5 0 m i l l i on a i rp o r t p r o j e c t a t
� almda l e , C a l i fo r n i a . The a irp o r t . wou l d even tu a l ly prov i de

emp l o yment f o r ·ab ou t 3 0 , 0 0 0 peopl e .

 144

3. An Econom i c · Imp a c t S ta t ement ( E I S ) s hou l d b e

r e qu i red fo r a l l pub l i ca l l y own ed ai rpo r t s and e l i g i b l e for

F ede ral . Airpo r t Tru � t Funds und e r the P l ann ing Gran t

· Pr�·g r am o f the A i r p o r t and A i rway·s· . · D ev e l opment Ac t . Th i s

wo u l d encou ra g e· · th� dev e l o pme n t o f E I S ' s .. ·

4, · Tha t · a l l a i rpo r t s h ave an E I S p e r f o r��d . Th i s

wi i l a l low the .commun i ty t o s e e wha t the a irpo r t a c t iv i ty

me ans · t o th e ar e a , · · I t i s hop ed tha t thi s wou l d put the

c ommun i. t y and i t s e l e c t ed o ff ic i a l s in a b e t t e r po s i t ion to ·

make d e c i s i on s · about · the 'a i rp o r t ,

s· . That . eyery a i rpo r t es t abl i s � · a po s i t i ve and

ac t ive pu b i i c r e l a t ions p r o g ram . The communi ty mu s t know

· wha t i s happ en ing a t the a-i rp o r t .

Con c l ud ing Remarks

Th e a i rp o r t s and the · a s s o c i a t e d air . t r an s p o r t a t i on

o f th i s count ri h�v e b e c rime a . v i t al . e l em� nt o ! the Un i t ed

S t a te s . ln s ome re sp e c t s , the a i rpo rt has b � come l ike the

e l e c t r i c l i g h t swi tch . I t i s ex trem e l y i�p o r t an t t o our

.
qu a l i ty of l i fe ,. exp e c t e d . to op e r a t e p e r f e c t l y on dernan 4 ,

a lmo s t c ruci a l to th e Ame r i c an cul tur e ; and ye t the a i rp o r t

i s frequ en t l y · t aken f o r· g r an t e d b y many p eopl e .

i t i s up to a i rp o r t management to i n su r e tha t t h e

c ommun i ty ' s a i rp o r t i s a h e a l thy , v i ab l e one . Man � g ement

shoul d s tr ive to put the a i rpor t on a s e l f - sus t a in ing ,.

us er pays b a s i s . Manag e�en t wou l d a l s o do we l l to ma i n t a in ·

. a . good ne � ghb o r p o l i cy . Many a irpo r t s hav e b e en · c l o s e d

 145

b e c au s e they ant�gon i z ed the communi ty du e to a la ck o f

und e r s tarid ing b e twe en the two . · I t i s b e l i eve� tha t . the

b� � ic i s su e in the maj or i ty o� c a s e s is th e p o c ke tb ook . If

th e commun i ty· u � der s t a n d s the e c onom ic s o f the s i tua t i on ,

.
. t ha t is the mon e t ary imp a c t upon t;he �hole communi ty ' the
·· ·
· · commun i ty ma r ·b e more to l er an t o f s ome of the d i s - b enefi t s .
Th i s do e s · nci t r e duce th� · oblig a t i on � f a irp o f t �ana � ement ,

howeve r � to s �r � ve to make the a i rp o � t . a g o o d n�i ghb o r �o

.
the c ommun i ty . F r e que n:tly , the cu ltural advantag e s ,

�. � erg ency a s p e c t s , and s o forth , · a r e s implr - mo re - " i c ing on

· t he c ake .· "
.
Mob ili ty has b e come the b rword o f the Amer i c an

cultur e ; and · the a i rp O i t s y s t em i s i n t e g r al t o th i s

.
�ob � � i ty . I f th i s couritty · i s · to c ontinue t � g row arid

p r o s p:e r , s o mu s t i t s a irp o r t sys t em . Con s i d e r · wha t would

happ en . to Amer i c an bu s ine s s . i f a i r tr an spo r t a t ion . w e r e rio t

.
. .

ava i l ab l e . In . all probab ili ty , thi s country would b e much

le s s pro du c t iv e .

The a irp o r t s hou l d b e v i ewed by i t s c ommu n i ty as �

tran s por t a t i on link w i th every o ther a irpo r t i n th e world ,

an imp o r tan t employment c en t e r , a v aluable _ tool for

a t t r a c t ing new i ndu s try and j ob s , an add i t i onal ·s our� e o f

t ax r ev enu e , and a s t imulu s fo r incr e a s ed loc al s ale s and

g eneral bu s in e s s ac t iv i ty .
 146

An o f t en · u·s ed , bu t very appropr i a t e quo t a t i on by . the

famou s av i at ion p � oneer , · B i l ly M i t che l l · [ 5 2 ] , sums it up .
. -
He -�a id , " I f you wouid inea �ur e the heartb e a t o f a c i ty

.- t ake the pu l s e o f her a i rp o r t . "

.
B I BL I OG RAPHY
 B I BL I O G R.APHY

1. Gur a l n i k , Davi d B . , and Jo s eph H . F r i end ( e ds . ) .

�
W eb s t e r ' s New Wo r l d . D i c t ion a r o f · Amer ican
! !
Lan '!a 7 · Colle g e ed1t1on .
. Company , 1 9 6 4 .
· ew Yo rk : Wo r l d
Pub 1 s 1ng · · .

2. P l ymat e , G l enn . "Atyp i c a l A i rp o r t E c onom i c E f f e c t s , " ·

Thi r t e en t h S hor t Cour s e i n A i rpo r t Mana�ement .
�e rkeiey : Univer s�ty of, Cal1fo r n 1 a , Ins titu t e o f
Tra f f i c and Trans p o r ta t i on Eng ine e r. ing , 1 9 7 3 . . .
Pp � 1 6 - 2 5 · �

3. · G o o dhar t , Dav i d . " C l aude Adams , e t a l . , P l a i nt i ffs ,

·

v . County o f Dade , De fendant . , " C a s e No . 7 2 - 1 0 2 1 .

Op i n i o n by Jud g e G o o dhar t in · the Gi rcu i f Cour t o f
t h e E l ev enth · Jud i c i a l C i rcu i t in and f o r Dad e ·
County , F l o r i da , . Apr i l 9 , 1 9 7 5 .

· 4. · Hoy t . , Kenda l l K . "When an Ai rpo r t D i e s , Who W i l l

· Mo urn for I t ? " Wa s h i ngton Wa t ch , 4 : 7 , Apr i l , ·1 9 7 6 .

5. Av i a t i o n Fac t C a r d . Wa s h ing t on : A� r c r aft Owner s '

and P1lo t s ' As s o c i a t i o n , 1 9 7 6 .

6. McGu ir e , F r ank G . , and R . C o r kh1 1 1 ( e d s . ) . Na t i ona l

Bus ines s A i r c ra ft A s s o c i at i on Bus ine s s . flyins .
Se c t 1on 1 . Washington : National Bus 1 n e s s A1 r ­
c r a f t As s o c i a t i o n , 1 9 7 6 .

�
Th e Ec onom i c I rn o r t an c e o f Ai rpo rt s and G enera l
Av1 ation . a shirtg ton : Gen e ral Av 1 a t 1 on Manu ­
fa c tur e r s ' As s o c i a t i o n , n . d .

8 •

10 . "Bus i ne s s Av i a t ion and the F o rtune 1 0 0 0 C o rp o r a t i ons , "

Bus i n e .s s and C omm e r c i a l Av i a t i o n , 3 5 : 5 2 - 6 3 ,
Nov embe r · , 1974 .

148
 149
11 . Mc Gu i r e , Frank G . , . and R . Corkh i l l ( ed s . ) .
Bu s ine s s Aircraft As s o c i a t ion Bus ine s s
· e c t 1on . a s 1ng ton :
c ra f t As s o c i a t ion , 1 9 7 6 .
12 .

13 . S inco ff , M . Z . , and J . S . Daj an i ( e ds . ) . General .

Av i a t ion and Communi ty D ev e l opment . 1 975 Summer
t'aculty Fellowship P�o g r a� 1n Engine e r ing Sy s t ems
De s i gn , . Ol d Domini on Un iver s i ty . No r fo l k , . ·

Vi r g in i a : O l d Dom i n i o� Unive r s i ty Re s earch

Founda t i on , 1 9 7 5 .
·

1 4 .. Wha t New Jo b s Me an t o a Conununi ty . . Un i t ed S t a t e s

Chambe r of Commerc e . Wa shing t on : Government
Print ing Off ic e , 1 9 7 3 .
15 . · rhe Re l at iv e Impor t ance t o Montgomery C ounty o f ·
Selec ted Economit At tivities . Wash1ng ton : Bo i s e
Cas c ade Ce n t er fo r Commun1 ty Deve l opmen t , 1 9 7 0 .
16 , Airport Ac t ivi ty S ta t i s t i c s o f C er t i f i c a t e d Rou t e Air
. . Air Car rier s . C1vi! Aeronautic s Bo ard F1nancial .
and Traff1 c Da t a S ec t ion , Uni t ed S t at e s Depar tment
of Transp o r ta t � on . Wash ing ton : Na tional Tech ­
n i c al · I nfo rmat i on S erv ic e , . 1 9 7 5 .
17 . Ne i s s � Jo s eph A· . · "Termina l Ec onom i c s and F ina�c ing . "
Pap e r pr e s ented a t the I nter s o c i e ty Conference on
Trans�o r t a t i on , Atl an ta , G e o�g i a , Ju l y 1 7 , 1 9 7 5 .

I s .·.
, I

B it as , · R . . A . Pr iva t e communic. a t ion . Ca l i fo rn i a · s t a t e

Un iver s i ty , Baker s f i e l d , F ebruary , 1 9 7 7 .
19 . Airpor t s • B i l l ion Do l l ar Bo o s t i o Nat i on ' s
. . .
. . l3conomy . Wa shing ton : Airp o r t Ope r a t o r s ' Counc i l
�nt erna t i onal , I nc . , n . d .
20 . G ib b s , W . W . Pr iva t e c ommun i c a t i o n . O f f i c e · o f County
A t t o rney , Av i a t i on D i v i s i on , M i am i , F l o r ida ,
February , . 1 9 7 6 .

21 . "The .C i ty That C ame Back , '' . Newsweek , 7 5 : 5 8 -. 5 9 ,

F e b ruary 9 , 1 9 7 0 .
 150

22 . Wa r fo r d , J e remy J . · Pub l i c P o l icy Towa rd

. G e ne r a l Av ia t i on . Wa sfi1ng ton : The B ro o k ing s
·

In s t1tut 1 on , 1971 .

23 . Wh e a t , Le onard F . The E f f e c t o f A i r l ine S e rv i c e on

Manufac tu r i rig Growth In C1 t i e s Below 4o10o6 .
Popula tion . Ec qnorn ic Dev elopment Admin i s t r a t i on , ·
Un i t ed St a t e s D ep ar tment o f Comme r c e .
Wa s h i � g ton : Gov e rnmen t Print ing Offi c e , . l 9 7 0 .

24 . Wh e a t , L e onard F . Wh� C i t i e s D o or Don ' t Grow in the

Non - me tropo l i tan ou th . Ec onomic Developm ent
Adminis tra tion , Unit ed S t a t e s . Dep a r tment o f
C omm e rce . Wa s h ing ton : Gov ernment Pr inting
C? ff i c e , n . d .
.2 5 . ·Wh e a t , L e onard F . Urb an Growth in the Non ­
m e tropo l i t an South . (Draft manu s crip t ) .

Et onomic D�velopment Adm in i s t r a t ion , Un i t ed S t a t e s

· Dep ar tment o f Comme r c e . W�sh ington : G oyernme nt
Pr int ing Off i c e , n . d .

26 .. A i rpl an e s Ar e Bu s in e s s Too i s - - The Sky.' s No L im i t .

Wa shing ton : Gener al Avia tion Manufa c tur er s • ·
As s o c ia t i on , n . d .

27 � Mo rr ow , L anc e . "Amer i c ans on the Move , " �,

1 0 7 : 5 4 - 6 4 , · March 1 5 , · 1 9 7 6 .

28 .· Jo rdan , . E . Pr iv a t e c ommun i ca t ion . T enne s s e e App are l

C ompany , Tu l l ahoma , Tennes s e e , May , 1 9 7 6 .

30 . B o l ey , Rob e r t E . " Indu s tr i a l D i s t r i c t s - - Pr inc ip l e s

in Prac t ic e , " U r b an Larid I n s t i tu t e Rep o.r t T B 4 4 ,
Wa s h ing ton , D . C � , D e c emb er , 1 9 6 2 .

31 . G en e r a l Av i a t ion and I t s Re l a t i on s h i and

t e . ornmun 1 tr . ama 1 c a , e w o r : e e r a
Avia t i on Admin i s tra t i on E a s t ern Re g i on � . A i rpor t s
D iv i s ion , 1 9 6 4 .

32 . Fo s t er , J . A . " The A i rpor t - - A C ent er o f Ec onom i c

G r av i ty . " S o c i e ty · o f Au t omo t ive Eng i�eer s Pap e r
7 2 0 5 9 7 , N e w York , N ew York , S ep t emb e r , 1 9 7 2 . . ·
 151
33 . Farnswo r th , Don W . "The . Ohio County Airp o r t S t o ry ,
·

1 9 6 4 - 1 9 7 5 ·, " D i v i s i on o f Av iat ion Repo r t ,

Wo r thing ton , Ohi o , n . d .

3'4 . Coke r , G e o rge P . " G eneral Av i a t i on in Our · Air

Transp o r t at i on Sys t em . " Pap e r pre s en t ed at
Sp e c i a l ty Confer enc e of the Amer ic an S o c i e ty o f
C iv i l Eng ine e r s , Arl ing ton , Texa s , March 7. - 9 ,
1 9 73 .

· 3S . J aro s l ov s ky , Rich . · " F ed Bank on Ai r l in e · to · Pu t Checks

A l o f t , Ke ep Do l l ar in Che ck , "· The Wa l l S t r e e t
Journal , ' February 2 , 1 9 7 6 , p . l , col . 4 .
36 .· Hob s on , Michael A . , and F . A . S ex ton . "A S tudy on
the Ec onpmic I mp a c t of S e l e c t e d A i rpo r t s Genera t ed
from the Oh io C oun ty Airpor t Dev e l opmerit . Prog r am , "
S t a t e o f Oh i o - - Dev e l opment Dep artment Ec onomic
Re s e arch D ivi s ion , n . d . ·
37 . ' 'Ana l y s i s o f Gene ral Av i a t i on Airp or t s Deve l oped Wi th
and Wi thou t F e deral F inan c i a l As s i s tanc e , "
Dep artment o f Transpor�at ion DOT - FA7 4WA3 4 3 4 ,
Burn s and McDonne l l , Kan s a s· C i ty , Mis s our i , May ,
1975 .
38-. Lantner , Gary H . "C ommuni ty Opp o s i t i on to Airp o r t
Dev e l opment . " Unpub l is hed Mas ter ' s the s � s , .
Mas s achu s e t t s I n s t i tute o f T echno l o gy , C am� r i dg e ,
1972 .

39 . " C iv i l Av i a t ion Exp end i tur e s , "

Bene f i t s o f G overnment I nv e s tment ,
as 1ng ton : e r o o ing s
Pp . 3 7 - 49 .
40 . "Economi c Princ ip l e s for P r i c ing A i rpor t S erv i c e s , "
S t anfo rd Re s e arch I ns t i tut e Proj ec t No . I - 3 1 0 0 ,
Air Tran� p o r t As s o c i at i on , Wash ing ton , D . C . , .
Novemb e r , 1 9 6 1 .
41 . F i c hman , D . � and A . . Wal dman . "Po s i t ive Value o f a
G ener al . . Av i at i on A i rpo r t Sys t em , " Coun ty . � f S an
D i e g o , Dep artment o f G eneral S erv ic e s , S an D i ego ,
C a l i forn i a , Ap r i l , 1 9 7 5 .

42 .
of
 152

43. B a� t er , Nev ins , et al , "Pub l i c I nv e s tmen t in G eneral

Av i a t .ion Airpo r t s - - An App l i c a t ion o f Cos t - Bene f i t
E c o nomi c s , " Federa
. l Av i a t ion Admin i s tra t ion
C ont rac t �o . FA6 6WA - 1 5 4 9 , Was h ington ; D . C . , May ,
1967 .

44. Rud z in s k i , J . E . ''Measur ing the Ec onomic E ff ec t s · · o f

· an Airp.or � o n t h e C ommuni ty /' Airpo r t F o rwn ,
1 · : 6 3 - 6 9 , Janu ar y , 1 9 7 1 .

45 , Howard ,· G eo r g e P .. "The Airpo r t Eriv i ro�ment - Ec onomi c

Imp a c t o n th e Commun i ty , " Airpor t E conom i c
·pl ann ing , · G � H.oward , e d i tor . Cambr 1dge ,
·

.
Ma s s achu s e t t s : The M I T Pre s s , 1 9 7 4 . Pp . 5 6 9 - 5 8 2 .

.4 6 . · Avi a t i on and the Econom :

o V 1 at 1 on on t e o c a conomy .
Air �r ans p o r t As s o ciat l.On ; n . a .

47 . O smun , : Wi l l i am G . Pr iva t e commun i ca t i on . . · Th e

Un i ve r s i:ty o f Tenne s s ee Spac e . I ns � i tut e · , Tul l ahoma ,
Tenne s s ee , May , 1 9 7 5 .'

48 . Meadows F i e l d Mas t e r P lan . S an . F r anc i s c o : Wi lbur .

Sm1 tli . and As s ocia t e s and Augu s t· W . Comp ton and
As s o c i at e s , 1 9 7 6 .

49 . Sp en c e , C h a rl e s . "A Qui c k Look at Airpor t Pub l i c

Rel a t ions , " Air craft Owner s ' and P i l o t s � · A� s o �.
c ia t i on Repor t ,· Was h i�g ton· , D . C . � n . d .· .

SO . Thurmond , Edwin M . "The Airp o r t"- - ' A Pub i i c Aff a ir . ' "
.

�ap er pre s en t e d a t S eminar on the So c i o - e conom i c

Iinpac t o f t h e A i rp o r t Upon t h e C ommu n i ty , The ·
Un ive r s i ty o f . Tenne s s e e Space I n s t i tu t e ,
Tu l l ahoma , Tenne s s e e , · June 2 , 1 9 7 6 .
· ·

51 . Mo o r e , C l i fton A . · P r ivat e c ommun ica t i on . Ke rn County

B o a r d o f Trade , Bake r s f i e l d , C a l i forni a ,
F e b ru ary , 1 9 7 7 .

52 . Thurmond , Edw in M . . "Ai rpo r t/ C ommuni ty Re l at ions , ''

A i rpo r t Wor l d , 7 : 1 7.- 2 4 , F ebruary , 1 9 ? 4 .
·
 VI TA

A i fred F . Ea ton , Jr . , wa s born in Y a z o o C i ty ,

.
Mi s s i s s ipp i , · o n Janu ary 1 4 , 1 9 4 8 . · B e c au s e h i s · fa the r wa s

w i t h the Un i t ed S t a t e s A i r Force · , li e a t t ended s ever� ! grade

schoo l s and wa s . g r adu a t ed from O s coda Area H i gh S cho o l in

O s coda , Mi ch i g an , iri June , � 9 6 5 . The fo l l ow ing S ep t emb e r ,

he ent e r e d M i s s i s s ipp i St a t e Un ivers i ty ; and in May , 1 9 7 0 ,

he r e c e ived a B ache l o r o f S c i enc e d �g r e e in Ae ro s p a c e

Eng in e er i�g .

I n June � 1 9 7 0 , he � nte�ed the Un i t � d S t a t e s A i r

Forc e and b eg an h i s tra in ing a s a p i l o t . Sub s e qu en t ly , in

June , 1 9 7 1 , h e . gr aduat ed f r om p i i o t train ing and b � gan

f l y i�g .c 1 4 1 ' s for the Ai r Force ' s Mi l i tary A i r l i ft Command

�

. .

. a t · Ch a r l e s ton A i r F o r c e B a s e , South Caro l ina .

· Af t� r a four · ye ar tour o f 4u ty . wi th the Air F o r c e �

he ac c ep t ed a r e s e arch a s s i s t ant s h ip a t The Un iver s i ty o f

\

Tenne s s e e Sp ac e I n s t itu t e in .Tu l l ahoma , T enne s s e e , in

S �p t embe r , 1 9 7 4 . In Augus t , 1 9 7 7 , he r ec e ived a Ma s t e r o f

·s c i enc e d e g r e e . i n Av i at ion Sys t ems .

Th e au thor i s a memb er o f the Am e r i can As s o c i a t ion

.
o f A i rp o r t Exe cu t iv e s , the Cal i fo rn i a A� s o c i a t i on of A i r �

· p o r t Exe cu t ive s , the Amer i can I n s t i tu t e of Aeronau t i c s and

.·

As t ronau t i c s , and i s on th e A i r S erv i c e C ommi t t e e o f the

A i rp o r t Op er a t o r s C ounc i l I n t e rnat i ona l . H e i s· cu rr ent ly

153
 154

· · emp l oy e d w i th the K e rn Coun ty D ep a:rtment : o f A i rpo r t s in

. Ba k er s f i e l d , Cal i fo rn i a .

Th e au tho r is . ·marr i e d to the former E l i z ab e th

P egu e ? N ic ho l s of O r ang eburg , South C�ro l i�a .