An Economic Impact Survey

An Economic Impact Survey of the Calgary Corporate & General Aviation Communities

RP Erickson & Associates AVIATION CONSULTANTS To INDUSTRY April 1998 EXECUTIVE SUMMARY

This report documents the economic impact activity of 115 firms, operating within a 50 km radius of the city of Calgary, who were identified as being active in 1997 in corporate aviation or in the general aviation [GA] community.

The response rate to the survey questionnaire was exceptional: a 90 percent return rate to the actual questionnaire and a 98 percent return rate for core data requests. Only two firms chose not to participate in the survey.

In 1997, the Calgary area corporate and general aviation communities supported a significant level of economic activity.

In direct terms, this sector contributed:

 1534 full-time jobs  $69.2 million in annual labour income  $176.5 million in operations & maintenance expenditures  $36.8 million in annual tax base, including $3.1 million paid in municipal taxes  $310.4 million in gross revenue activity

When indirect and induced forms of economic activity are included, this sector contributed:

 4938 ful1-time jobs  $207.5 million in annual labour income  $337.9 million in value-added GDP activity

Although GA activities in the Calgary area are scattered throughout 11 airports within a 50 km radius of the city, the industry remains concentrated at the Calgary International airport. Aside from some minor charter activity at the Springbank airport, all of Calgary's corporate aviation activities are conducted at the Calgary International airport.

In addition to the above quantifiable economic benefits, the GA sector provides a sound foundation of aviation expertise which is of substantial benefit to commercial aviation. Additionally, it provides a wide expanse of social benefits to the residents of the Calgary area, ranging from recreational opportunities through air tourism development to volunteerism. Corporate aviation's social benefits are more restricted but also offer career development benefits to its employees and value-added time efficiencies to the executives which it serves.

Unquestionably, in 1997 the corporate and GA sector in the Calgary area provided substantive economic and social benefits to the local economy, within the province and to the economy of Canada as a whole. AN ECONOMIC IMPACT SURVEY OF THE CALGARY CORPORATE & GENERAL AVIATION COMMUNITIES

Table of Contents Executive Summary ii Table of Contents iii List of Tables iv

Chapter I - Introduction

1.1 About this report 1 1.2 Background 2 1.3 Inclusion criteria 3 1.4 Study area 5 1.5 The economic impact modelling process 6 1.6 A word about the multipliers used in this study 8

Chapter II - An Economic Impact Survey of the Calgary Corporate & General Aviation Communities

2.1 Economic Impact of Corporate Aviation at the Calgary International Airport 12 2.2 Economic Impact of General Aviation at the Calgary International Airport 14 2.3 Economic Impact of the Aviation Community at the Springbank Airport 16 2.4 Economic Impact of the Aviation Community at all Other Airports 18 2.5 Total Economic Impact of the Calgary Corporate & General Aviation Communities 20 2.6 Other Significant Socio-economic Factors 24 2.7 Conclusions 25

Appendices

I Survey Questionnaire II Aviation Directories List of Tables

Calgary Corporate Aviation: 1997 Economic Impact 13 Calgary General Aviation: 1997 Economic Impact 15 Springbank Aviation Community: 1997 Economic Impact 17 All Other Calgary Area Airports: 1997 Economic Impact 19 Calgary Area Corporate & General Aviation: 1997 Direct Economic Impact 22 Calgary Area Corporate & General Aviation: 1997 Total Economic Impact 23 Chapter I

Introduction

1.1 About this report

The report was undertaken by RP Erickson & Associates for the Calgary Transportation Authority under the direction of Mr. Robert Edwards, Chairman, General Aviation Committee. The purpose of the study is to provide a factual basis for understanding the economic impact of corporate and general aviation in the Calgary region. It is felt that an understanding of these elements will assist in addressing the future requirements of this industry segment.

Please direct any enquiries regarding this study to Mr. Don Brownie, Executive Director, Calgary Transportation Authority at (403) 266-6716. 1.2 Background

Calgary's corporate and general aviation (GA) community is an integral part of a vibrant local commercial aviation industry that pumps hundreds of millions of dollars in economic activity into the Calgary region. Within a fifty kilometre radius of Calgary is Canada's fourth largest airport - the Calgary International Airport ["y passenger activity], the country's fourth largest 'reliever' airport at Springbank [by aircraft movements], and eleven smaller general aviation airports ranging from the Beiseker Airport in the NE to the Okotoks AirPark south of the city. This infrastructure supports over one hundred firms offering diverse services such as pilot & flight training; private & recreational flying; corporate aviation; small rotary and fixed-wing charter firms; hot air ballooning; glider & sport parachuting; and, a range of specialized aviation maintenance and support functions. Calgary's corporate aviation community is centred upon the Calgary International Airport, where 21 major corporate flight departments exist.

In commissioning this study, the Calgary Transportation Authority and the Calgary Airport Authority have recognized the importance of the corporate and GA sector to Calgary and a requirement to catalogue, document and assess the socio-economic importance this sector provides to the community. The study will assist Calgary's aviation practitioners by providing an important core data set upon which future development and planning can be based.

The study will also provide its sponsors with a valuable communications tool. In particular, the economic impact assessment will serve to heighten political, business and community awareness as to the relative importance of the Calgary and area corporate and general aviation sectors. It will also serve as an important base-line against which future development or investments may be measured. 1.3 Inclusion criteria

One of the earliest challenges faced by the consultants and the General Aviation Committee was to define what general aviation is and what forms of economic activity would be included in this report. We approached a number of national and supranational organizations seeking definitions for general aviation. Defining corporate aviation activity was a far easier task, as we were able to obtain a comprehensive definition from the Canadian Business Aircraft Association. Oddly, no consensus on what constituted GA activity could be reached in our discussions with several provincial aviation councils, Transport Canada, the Canadian Owners and Pilots Association, the Recreational Aircraft Association, the Air Transport Association of Canada, the American Owners and Pilots Association, and the Federal Aviation Administration nor were IATA or ICAO helpful. Ultimately we used the Canadian Aviation Regulations [CARs]1 as a starting point for defining GA commercial activities, and later filled out our criteria through a process of internal discussion with input from the Steering Committee.

Within this report, corporate aviation is defined as:

"Corporate aviation is the use of aircraft, owned or leased, and operated by a corporation or a business firm for the transportation of personnel or cargo in furtherance of the corporation or firm's business in which the aircraft are operated by professional flight crews receiving a direct salary or compensation for the piloting services provided".

The Canadian Business Aircraft Association Ottawa

1 Canada's aviation safety regulations are contained in Transport Canada's Canadian Aviation Regulations [CARs]. The CARs contain precise definitions for commercial aviation activity which the authors of this report have found useful for defining small- scale, commercial aviation activity which we include in the GA category. Within this report, general aviation is defined as:

 all aviation activity pursuant to the permitted activity contained in CARs under: 'Aerial Work' [702.01]; 'Air Taxi' [703.01]; and, 'Commuter' [704.01] regulations - essentially, all non-scheduled, non 'common carriage' aviation activity performed for-hire by aircraft of less than 50,000 lb maximum take-off weight [MTOW] and operated with fewer than 19 seats;

 all pilot and flight training activities;

 all aviation services which support private & recreational flying;

 all hot air ballooning activities;

 all glider/soaring and sport parachuting activities;

 all aviation maintenance & specialized repair or support functions;

 all educational, promotion or support efforts whose goal is to further general aviation interests;

 that portion of government-provided services, also including NAV CANADA, required by the general or corporate aviation community; and,

 that portion of airport fuel sales utilized by the corporate or general aviation community. General aviation is not:  any scheduled or charter commercial air carrier activity undertaken at the Calgary International airport main airport terminal building, and/or any activity operated under CARs [705.01];

 any mainline air freight or courier operations feeding trunk services into major integrator hubs;

 any ad-hoc, air freight charter operations undertaken by turbine jet aircraft with an MTOW of greater than 50,000 lb;

 on-airport, non-aviation commercial services, such as gas stations and restaurants;

 off-airport support professional services in the fields of banking, accounting, legal or medical services; and,

 aerospace manufacturing. 1.5 Study area

The RFP called for a review of airports within a 50 km radius of Calgary. The 1988 Alberta Air Facilities Map produced by the Alberta Aviation Council for Alberta Transportation depicts nine 'general aviation' airports within a 50 km radius of Calgary, in addition to the major Calgary International and Springbank Airports.

These are:  Airdrie Airport ft  Beiseker Airport ft  DeWinton Airport ft  DeWinton/Highwood ft  Okotoks Air Park ft  Indus - Winters Aire Park ft  Strathmore/Nelson Airfield *  Strathmore/Jackson Airfield *  Strathmore McClain Airfield *

Certified aerodromes are those which require the operator to maintain and operate the site in accordance with applicable Transport Canada standards. Regular inspections are conducted by Transport Canada to confirm compliance.

Registered aerodromes are those listed in the Canada Flight Supplement but are not certified. Information for these airports is provided by the owner/operator, and is verified by letter from the operator once a year with Transport Canada who maintain~ a three to five year inspection cycle for such airports.

* Not in operation at the time of the survey.

All of the above airports were visited by the consultants and all aviation related, commercial activities which met the Inclusion Criteria were reviewed. In addition to these airports two other airfields - located at Okotoks West and wholly owned by the Cu Nim Gliding Club, and the Westport Heliport within the western reaches of Calgary's city limits, were also reviewed. 1.6 The economic impact modelling process

Economic impact analysis is based on the premise that operations within various industries in an economy are closely related or linked to each other; that is, an increase in the activity levels in one industry will produce a positive 'domino' effect on other industries. Economists discuss the impact that one sector has on another in terms of indirect and induced effects. The total economic impact is the sum of the direct, indirect and induced effects.

In this report:

Direct economic effects are those which include all of the economic activity required to mount a corporate or general aviation presence at any of the eleven airports in the study area.

Indirect economic effects are those due to the parallel co-activities which support corporate or general aviation operations. Some broad examples would be: the inputs required to find, process and ship refined oil products used aboard aircraft, the office supply industry which supports aviation administration functions, or the construction industry which is impacted by expansion or renovation plans, etc. This economic activity is accounted for by multipliers which attempt to quantify the interactive linkages within the economy impacted by corporate and GA's direct activity.

Induced economic effects are those due to the overall increase in the goods and services produced within an economy, arising from the spending power of direct and indirect employees. For example, the auto mechanic whose services are in demand by an employee of a corporate or general aviation firm who requires the use of his/her car to get to/from the airport, or the movie theatre operation which benefits from the disposable income of corporate or general aviation workers, etc. As in the case in calculating the indirect benefits, multipliers are used to identify induced activity.

Southern Alberta's aviation industry is a good example of a highly integrated sectoral industry which has significant linkages throughout the domestic economy. The multipliers associated with the aviation sector are higher than most primary sectors and, as such, the potential impact to the overall economy linked to an increase in corporate or general activity is significant. The most common economic measures used in economic impact surveys are employment [broken down to include full-time equivalents [FTEs] and annual labour income], value- added gross domestic product [GDP], taxes and total output - more commonly referred to as gross revenue activity.

In this report:

Employment is measured by direct FTEs and by annual income of the employees required to mount a corporate or general aviation presence. FTEs are expressed in person-years and labour income by dollar value. Employment multipliers are used to generate the associated indirect and induced impacts.

Value-added Gross Domestic Product (GDP) is defined as the amount of value to the local economy created through operations and maintenance expenditures, net the cost of 'leakages' to other parts of the country. Leakages outside the Alberta economy are accounted for by a ratio multiplier produced by Statistics Canada. A GDP multiplier is used to generate the associated indirect and induced impacts.

Total Taxes is the aggregate of all of the federal, provincial and municipal taxes paid. The questionnaire asked that municipal taxes be also stated separately~. No multiplier effort has been extended to taxes due to the differing federal, provincial and municipal tax tiers and since both commodity and non-commodity tax information has been sought.

Gross Output/Total Revenues is the aggregate of all of the goods and services, capital costs and profits resulting from corporate or general aviation activities. However, this category is prone to the 'double counting' of inputs and also features significant leakages to other areas of the country. Thus, value-added GDP is an indicator generally preferred by economists as a more accurate reflection of local economic activity. No multiplier effort has been extended in this study to gross output/total revenue activity.

2 It is the consultant's observation from feedback received from the questionnaire respondents that this category of data was the most difficult to accurately access. Most noted that they were unable to precisely assess federal payroll contributions and the varying levels of excise and provincial fuel taxes. As a result, it is suggested that this category of data be cautiously interpreted. 1.7 A word about the multipliers used in this report

Multipliers are used to infer indirect and induced economic activity from a measure of direct economic activity. Multipliers are not directly observed; they are inferred from an economic model. By far the direct measure is the most accurate, however, multipliers are virtually the only tools available to researchers attempting to identify the overall impact of a sectoral activity within a national or regional economy.

Considerable thought was directed at choosing the most appropriate multipliers for this report. The consultants have chosen an Alberta-specific, Statistics Canada open multiplier set derived from that agency's 1984 Input-Output Model, under the 'Air Transport & Services Incidentals' category contained in the Make/Use/Demand Matrix, The Input-Output Structure of the Canadian Economy, 1992, Statistics Canada, Cat. No 15-201. This is the latest Catalogue 15-201 available and was released in February, 1997.

In this report, the absolute multipliers applied to the aggregate direct corporate and general aviation data collected are: Labour Value-added Employment Income GDP Direct + Indirect 1.79 1.55 1.74 Induced 1.43 1.45 1.39 Total 3.22 3.00 3.13

A ratio multiplier of 1: 0.61179 is used to convert Operations and Maintenance expenditures to value-added GDP, that is for every $1,000,000 of O&M direct expenditure activity, the Statistics Canada model identifies $611,790 of value-added. GDP activity as occurring in Alberta. Chapter II An Economic Impact Survey Of the Calgary Corporate & General Aviation Communities

The Calgary area supports an active corporate aviation sector. Since Calgary is the headquarters for Canada's oil and gas sector, it is not surprising that a number of major corporate flight departments exist to support the multi-billion dollar activities of these companies. The level of corporate activity in the Calgary area has also provided opportunities for the growth of several, significant corporate charter companies. Further, two major corporate FBOs can also trace their presence to the overall level of corporate aviation activity generated by Calgary's head office environment. Corporate aviation in the Calgary area is centred within the McCall South and McKnight aviation parks at the Calgary International Airport. Several, smaller charter firms operating from the Springbank airport reported a "very minor amount" of corporate aviation activity.

General aviation in the Calgary area is a multi-faceted sector with diverse activities ranging from private pilot operations, flight training, soaring, ballooning, sport parachuting, small charter operations - both fixed and rotary wing - all of which are supported by a multiform aviation sales, professional services, maintenance and support sector. Calgary's GA community is located primarily in the McCall South and McKnight aviation parks at the Calgary International airport and at the Springbank 'reliever' airport. Some GA firms have located in the adjacent industrial parks surrounding the Calgary International airport. Significant specific GA activities also occur at several of the smaller airports within 50 km of Calgary; such as the concentration of sport parachuting activities at the Airdrie airport and the soaring/gliding activity at the Okotoks West airfield.

As this Chapter will depict, the economic impact of corporate and general aviation in the Calgary area is significant. It has been measured in terms of employment [FTEs], labour income, total operations and maintenance expenditures [converted to value-added GDP output as detailed in Section 1.6], total taxes, municipal taxes, and gross revenues. Data has been sought for the 1997 calendar year. These leading indicators are expressed in dollar values and in person-years of employment [FTEs]. Direct, indirect and induced forms of activity have been considered for employment and GDP output.

The data compiled in this study was obtained via a questionnaire circulated amongst 110 firms identified as meeting the Inclusion Criteria [Section 1.3], and located within the Study Area [Section 1.4]. A copy of the Survey Questionnaire is located in Appendix I. Where necessary, only that portion of a firm or agency's overall activities which met the Inclusion Criteria has been included [e.g. all government organizations were asked to differentiate and to only include their activities directly related to supporting corporate& or GA]. Throughout the study, a conservative approach has been intentionally undertaken.

Key principals at each identified firm were visited by the consultants where the underlying rationale for undertaking the study was explained, where the objectives of the study could be examined; the value of their participation fully explored; where the confidentiality of their data could be assured; and, where each of the firms or organizations could be invited to a Participants' Seminar. Further, this exposure permitted the consultants an opportunity to enquire as to the geographic dimensions of a firm or organization's overall activities. As noted, our intent was to undertake a conservative approach in arriving at the economic impact attributable to GA and corporate aviation in the Calgary area Therefore, we only sought to document that economic activity which was benefiting the Calgary area. Thus, where a firm may have maintained a head office function at Calgary and field operations elsewhere in the province, Canada or abroad, we ensured that only that economic activity which occurred in the Calgary area was documented.

This approach resulted in an exceptional response rate. Of the 115 firms surveyed, 104 returned or completed the questionnaire and another 9 provided incomplete information. Two firms chose not to participate. This resulted in a 90 percent response rate to the questionnaire, and a 98 percent response rate to what was considered the critical information base - employment by FTEs, labour income, and O&M expenditures which was provided by the 9 firms who returned incomplete results. The economic activities of the two, smaller GA firms choosing not to participate were estimated.

The names of the firms and organizations surveyed are located in the Aviation Directories included in Appendix II. It is noted that several firms operate under two or more trade names, although we may have only included a single contact in a given Directory for that organization's overall activities.

The economic impact of the Calgary area corporate and general aviation community is provided in Section 2.5. The overall impact has been sub-divided into four categories; the impacts associated with corporate aviation [Section 2.1]; the Calgary International airport general aviation community [Section 2.2]; the aviation community at the Springbank airport [Section 2.3]; and, the combined economic activity of all of the aviation firms located at the 11 other airports within the study area [Section 2.4]. 2.1 Economic Impact of Corporate Aviation at the Calgary International Airport

Within Calgary's corporate aviation community 28 firms or organizations were identified as meeting the Inclusion Criteria. Virtually all of this activity occurs on-airport at the Calgary International airport.

A total of 269 annual full-time equivalent employees can be attributed to Calgary's corporate aviation sector. Their aggregate labour income for the 1997 calendar year was identified at $16.995 million. Total

O&M expenditures were $46.357 million. A total tax base of $8.930 million was identified, of which $1.053 million was paid in municipal taxes to the City of Calgary. The gross revenues for this sector were identified at $30.955 million, but it is important to note the 16 'not-for-profit' flight departments reporting no revenue activity.

When the indirect and induced multipliers are applied to the above direct economic activity, the significant impact of Calgary's corporate aviation sector on the local economy can be realized. Within the Calgary area, 866 full-time, annual jobs are dependent upon corporate aviation, generating an annual labour income of $50.985 million. The total value-added GDP activity created by corporate aviation in 1997 was $88.769 million.

This information is provided in tabular form on the following page.

2.2 Economic Impact of General Aviation at the Calgary International Airport

Within the Calgary International airport's general aviation community, 58 on and off-airport firms or organizations were identified as meeting the Inclusion Criteria.

A total of 1118 annual full-time equivalent employees can be attributed to the Calgary' International airport's GA sector. Their aggregate labour income for 1997 was identified at $46.079 million. Total O&M expenditures were $1 13.987 million. A total tax base of $25.519 million was identified, of which $1.947 million was paid in municipal taxes to the City of Calgary. The gross revenues for this sector were identified at $258.875 million.

When the indirect and induced multipliers are applied to the above direct economic activity, the significant impact of Calgary's GA sector on the local economy can be realized. Within the Calgary area 3600 full- time jobs are dependent upon GA, generating an annual labour income of $138.237 million. The total value-added GDP activity created by GA at the Calgary International airport in 1997 was $2 18.274 million.

2.3 Economic Impact of the Aviation Community at the Springbank Airport

At the Springbank airport 21 firms or organizations were identified as meeting the Inclusion Criteria. All of the direct economic activity created by the Springbank airport occurs on-airport.

A total of 117 annual full-time equivalent employees can be attributed to Springbank's GA sector. Their aggregate labour income for 1997 was identified at $5.033 million. Total O&M expenditures were $15.299 million. A total tax base of $2.212 million was identified, of which $66,000 was paid in municipal taxes to the Municipal District of Rockyview. The gross revenues for this sector were identified at $18.632 million.

When the indirect and induced multipliers are applied to the above direct economic activity, the significant impact of Springbank's GA sector can be realized. Within the area 377 full-time jobs are dependent upon GA, generating an annual labour income of $15.099 million. The total value-added GDP activity created by GA at the Springbank airport in 1997 was $29.296 million.

2.4 Economic Impact of the Aviation Community at all Other Airports

At all other airports within a 50 km radius of Calgary only 6 on-site firms were involved in commercial aviation activities, and all met the Inclusion Criteria.

A total of 29.5 annual full-time equivalent employees can be attributed to the other airports' GA sector. Their aggregate labour income for 1997 was identified at $1.053 million. Their total O&M expenditures were $812,000. A total tax base of $179,000 was identified, of which $20,000 was paid in municipal taxes to the Municipal Districts. The gross revenues for this sector were identified at $1.918 million.

When the indirect and induced multipliers are applied to the above direct economic activity: within the area, 95 full-time jobs are dependent upon GA, generating an annual labour income of $3. 159 million. The total value-added GDP activity created by GA at the other airports in 1997 was $1.555 million.

2.5 Total Economic Impact of the Calgary Corporate & General Aviation Communities

Within the Calgary area, 115 firms or organizations were identified as meeting the Inclusion Criteria.

A total of 1534 direct annual full-time equivalent employees can be attributed to the corporate and GA aviation sector in the Calgary area. Their aggregate labour income for 1997 was identified at $69.160 million. Total O&M expenditures were $176.455 million. A total tax base of $36.840 million was identified, of which $3.086 million was paid in municipal taxes. The gross revenues for this sector were identified at $3 10.380 million.

When the indirect and induced multipliers are applied to the above direct economic activity, the significant impact of the Calgary area corporate and GA sector on the local economy can be realized. Within the Calgary area 4938 full-time jobs are dependent upon the corporate and GA sector, generating an annual labour income of $207.480 million. The total value-added GDP activity created by this sector in the Calgary area in 1997 was $337.894 million.

This information is provided in tabular form on pages 22 and 23.

On a percentage basis by airport, the above economic benefits are distributed:

Labour Value-Added Tax Municipal Gross FTEs Income GDP Base Taxes Revenues Corporate 18% 25% 26% 24% 34% 10% Calgary GA 73% 67% 65% 69% 63% 83% Springbank 8% 7% 9% 6% 3% 6% All Other 2% 2% P/o 1% 1% 1%

When the aggregate impact of the Calgary International airport is isolated, the above economic benefits are distributed:

Labour Value-Added Tax Municipal Gross

FTEs Income GDP Base Taxes Revenues

Calgary Int 90% 90% 89% 92% 96% 92% All Others 10% 10% 11% 8% 4% 8%

From the above table, it is obvious that the industry is overwhelmingly concentrated at the Calgary International airport.

The percentage split of economic activity between Corporate and GA activity over the study area was:

Labour Value-Added Tax Municipal Gross FTEs Income GDP Base Taxes Revenues

Corporate 18% 25% 26% 24% 34% 10% GA 82% 75% 74% 76% 66% 90%

2.6 Other Significant Socio-economic Factors

The Survey Questionnaire sought general comments from the respondents related to their views on other important socio-economic factors which they felt were associated with corporate or general aviation.

The following trends are noted from the information collected:

 virtually all respondents commented on the employment opportunities, above average incomes, taxes paid, local expenditures and generally positive benefits to the local and regional economy provided by the corporate & GA sector;

 the sector was seen by others as a valuable development tool for creating and building a skilled aviation workforce. Many of the GA participants noted that their sector provided a foundation of skilled and experienced workers for commercial and corporate aviation and, as importantly, acted as a means for furthering individual career development;

 several participants suggested that corporate and GA attracts business and industry to Calgary;

 The GA sector was noted as an important source of recreation for many local residents, including the enjoyment by non-aviation residents of the Calgary area when airshows are undertaken at Springbank;

 a number of the corporate operators commented on enhanced productivity for senior management's time and the ability to conduct business away from Calgary and to return in a day as positive benefits;

 corporate and GA's generally 'clean' environmental record was noted;

 GA was seen as supporting inbound aviation tourism into the Calgary area,

 the sector provides vital support for air ambulance/medevac operations; and,  as a valuable outlet for volunteerism - one organization noted that its existence was entirely due to the goodwill of roughly 20,000 hours of volunteerism annually, and that its presence materially improved the social well-being of its volunteer workforce.

Some of the respondents chose to voice their concerns for the future of the industry and these comments included:

 numerous concerns were directed at the perception that increased levels of taxation and new service fees, including the impending NAV CANADA fees on recreational aircraft, would be harmful to the sector; and,

 a number of the Springbank-based operators voiced concerns that near-by land development would negatively impact the future viability of the airport.

2.7 Conclusions

In 1997, the Calgary area corporate and general aviation communities supported a significant level of economic activity in the Calgary area.

In direct terms, this sector contributed:

 over 1500 full-time jobs  roughly $70 million in annual labour income  over $175 million in O&M expenditures  roughly $37 million in annual tax base  over $300 million in gross revenue activity

When indirect and induced forms of economic activity are included, this sector contributed:

 roughly 5000 full-time jobs  over $200 million in annual labour income  a third of a billion dollars in value-added GDP activity

Although GA activities in the Calgary area are scattered amongst 11 airports, the industry remains concentrated at the Calgary International airport. Aside from some minor charter activity at the Springbank airport, all of Calgary's corporate aviation activities are conducted at the Calgary International airport.

In addition to the quantifiable economic benefits, the GA sector provides a wide expanse of social benefits to the residents of the Calgary area, ranging from recreational opportunities through tourism development to volunteerism. Corporate aviation's social benefits are more restricted but nonetheless offer career development benefits to its employees and value-added time efficiencies to the executives which it serves.

Unquestionably, in 1997 the corporate and GA sector in the Calgary area provided substantive economic and social benefits to the local economy, within the province and to the economy of Canada as a whole. APPENDIX I

SURVEY QUESTIONNAIRE SURVEY QUESTIONNAIRE

SURVEY OF THE ECONOMIC SIGNIFICANCE OF THE CALGARY CORPORATE & GENERAL AVIATION COMMUNITY

Please complete this survey using data for 1997 or for your most recent fiscal year. All data will be treated in strict confidence and will not be released in a disaggregated form to any individual or agency. Only aggregate industry data will be included in the final report.

Please answer the questions as completely as you can. If you are not entirely certain of an answer, please give your best estimate - your estimate will surpass by far our best guess in accuracy.

Feel free to direct any questions pertaining to this questionnaire or study to either: RP Erickson & Associates Mr. Don Brownie Aviation Consultants to Industry Executive Director Calgary, Alberta Calgary Transportation Authority Tel. (403) 241-9633 Tel. (403) 266-6716 Fax. (403) 241-8696 Fax. (403) 269-4339

Section A: General Information

(i) Name of firm, a contact person, and telephone number.

(ii) Please circle the classification(s) that best describe your firm's activities.

Pilot or Flight Training Private or Recreational Flying Corporate Aviation Air Taxi or Charter Operator Aircraft Sales & Support Maintenance & Overhaul Other aviation support services Other______Section B: Employment, Expenditures and Tax Data We are seeking the impact from that portion of your firm's business activity which pertains to general aviation or corporate aviation. Round all financial data to the nearest $'000.

Employment - 1997

(i) Average number of employees working for your firm. Please estimate in full- time equivalents [e.g., 1 part-time worker @ 20 hrs/week = .5 full-time employee].

(ii) Total payroll expenses for employees including wages, salaries, and all employee benefits.

$______

Expenditures for Goods and Services - 1997

(i) Total operating expenditures for goods and services, excluding wages, salaries, and employee benefits.

$______

Taxes - 1997

(i) Total municipal, provincial, and federal taxes including payroll, sales, GST, fuel taxes and other applicable taxes.

$______

(ii) Please estimate the percentage of the above tax total which your firm paid in local municipal taxes. Section C: Revenues

(i) Gross annual revenues for 1997 or the last complete fiscal year from all sources. $______

Section D: General Comments

(i) In your opinion, what are the principal socio-economic benefits of general or corporate aviation to the Calgary area.

(ii) What are the major advantages to the community and region which result from the existence of the airport. (iii) What, in your view, is the future of general or corporate aviation in the Calgary region.

Any additional comments you feel may be appropriate can be added below or to the back of the questionnaire.

Your co-operation is very much appreciated - thank you, APPENDIX II

AVIATION DIRECTORIES