TABLE OF CONTENTS

NEW YORK STATEWIDE ECONOMIC IMPACTS STUDY

EXECUTIVE SUMMARY ...... i

1. STUDY CONTEXT: NATIONAL INDUSTRY & ECONOMIC FACTORS...... 3 1.1 Impacts of the Global Economic Recession on Aviation in ...... 3 1.2 Review of Other Economic Impact Studies ...... 9 1.3 Activity at New York’s Commercial Service and GA ...... 11 1.4 Air ’s Role in New York’s Economy ...... 17 1.5 Strategies for Revenue Generation and Increased Airport Economic Output ...... 20 1.6 NextGen Implementation and Anticipated Benefits in New York ...... 33

2. STATEWIDE ECONOMIC IMPACT OF AVIATION ...... 36 2.1 Job Impacts ...... 36 2.2 Income Impacts ...... 42 2.3 Output Impacts ...... 47 2.4 State & Local Tax Revenue Impacts ...... 52 2.5 Local Economic Impact ...... 55

3. ECONOMIC IMPACTS BY AIRPORT ...... 57 3.1 Commercial Service Airports ...... 57 Adirondack Regional Airport ...... 57 Albany ...... 58 Buffalo Niagara International Airport ...... 59 Chautauqua County-Jamestown Airport ...... 60 Elmira/Corning Regional Airport ...... 61 Greater Binghamton Regional/Edwin A. Link Field ...... 61 Greater Rochester International Airport ...... 62 Ithaca Tompkins Regional Airport ...... 63 JFK International Airport ...... 64 LaGuardia Airport ...... 65 MacArthur Airport ...... 65 Massena International Airport ...... 66 Ogdensburg International Airport ...... 67 Plattsburgh International Airport ...... 67 Stewart International Airport ...... 68 Syracuse Hancock International Airport ...... 69 Watertown International Airport ...... 70 Westchester County Airport ...... 70 3.2 Airports ...... 71 Akron Airport...... 71 Brookhaven Calabro Airport...... 72 Buffalo Lancaster Airport ...... 72

TABLE OF CONTENTS (continued)

Camillus Airport ...... 73 Canandaigua Airport ...... 73 Cattaraugus County-Olean Airport ...... 74 Chautauqua County-Dunkirk Airport ...... 74 Columbia County Airport ...... 75 Corning-Painted Post Airport ...... 75 Cortland County-Chase Field ...... 76 Dansville Municipal Airport ...... 76 Dutchess County Airport ...... 77 East Hampton Airport ...... 77 Finger Lakes Regional Airport ...... 78 Floyd Bennett Memorial Airport ...... 78 Francis S. Gabreski Airport ...... 79 Fulton County Airport...... 80 ...... 80 Great Valley Airport ...... 81 Griffiss International Airport ...... 81 Hamilton Municipal Airport ...... 82 Hornell Municipal Airport ...... 82 Joseph Y. Resnick Airport ...... 83 Kingston-Ulster Airport ...... 83 Lake Placid Airport ...... 84 Ledgedale Airpark ...... 84 Lt Warren Eaton Airport ...... 85 Malone-Dufort Airport...... 85 ...... 86 Niagara Falls International Airport ...... 86 Oneonta Municipal Airport ...... 87 Orange County Airport ...... 88 Oswego County Airport ...... 88 Penn Yan Airport ...... 89 Perry-Warsaw Airport ...... 89 Piseco Airport ...... 90 Potsdam Municipal Airport...... 90 ...... 91 Saratoga County Airport ...... 92 Schenectady County Airport ...... 92 Schroon Lake Airport ...... 93 Sidney Municipal Airport ...... 93 Skaneateles Aero Drome ...... 94 Sky Acres Airport ...... 94 South Albany Airport ...... 95 Sullivan County International Airport ...... 95 Ticonderoga Municipal Airport ...... 96

TABLE OF CONTENTS (continued)

Tri-Cities Airport ...... 96 Wellsville Municipal Airport ...... 97 Whitford’s Airport ...... 97 Williamson-Sodus Airport ...... 98 Wurtsboro-Sullivan County Airport ...... 98 Other Small Public-Use Airports – Aggregated ...... 99 Public-Use Heliports – Aggregated ...... 99 Privately Owned, Private-Use Airports – Aggregated ...... 100

LIST OF FIGURES

Figure 1 – Funding Sources for Small and Non-Hub Airport Operations ...... 24 Figure 2 – Study Airports ...... 37

LIST OF TABLES

Table 1 – Unemployment Levels and Enplanements ...... 5 Table 2 – Air Cargo Tonnage at NY Airports ...... 17 Table 3 – Economic Impacts of NYS Largest Air Cargo Airport Operations ...... 18 Table 4 – Revenue Generation Strategy Prioritization ...... 29 Table 5 – On Airport Employment Impacts ...... 38 Table 6 – On Total 2009 Output Impacts ...... 40 Table 7 – On Airport Income Impacts ...... 43 Table 8 – Total 2009 Income Impacts ...... 45 Table 9 – On Airport Direct Output ...... 48 Table 10 – Total 2009 Output Impacts ...... 50 Table 11 – 2009 State & Local Taxes ...... 53 Table 12 – Average Economic Impact of Walmart Store on NYS ...... 56

New York Statewide Airport Economic Impacts Study May 2011

EXECUTIVE SUMMARY

PURPOSE

The purpose of this study is to highlight the impacts of the aviation sector - specifically the impacts derived from public-use airports - to the economy of the state. It provides a benchmark of aviation’s contribution to our economy in 2009 by looking at the economic activity, jobs, and taxes generated by this sector. All of the airline airports (those with scheduled commercial airline service) - as well as many of the larger airports without scheduled airline service (called General Aviation airports) - are publicly owned and provide mobility for people and goods as well as vital links to the national and international transportation system. This study was made possible by a grant from the Federal Aviation Administration (FAA).

As an integral component of the state’s transportation system, the aviation sector has a positive impact on the state’s economy, in both direct and indirect terms. Investments in this area of the transportation system have the potential to help improve the health of local economies and the state as a whole. This FAA-NYSDOT-sponsored study quantifies the level of economic activity that is attributed to the aviation sector for the year 2009 and shows that this sector produces an impact greater than the level of public investment required to maintain the system in a state of good repair.

Findings from this study demonstrate the rationale for investments in the aviation mode by showing aviation’s contributions to the state’s economy. The Department’s multi-year capital plans stress the importance of a sound transportation system as a vital component of the state’s economy. Like other modes of transportation, the aviation system faces deteriorating infrastructure conditions; investments in these assets will ensure an aviation system that will continue to serve and provide positive economic impacts.

The scope of this study is statewide and utilizes surveys of individual airports to determine on-airport jobs, on-airport spending, visitor spending and other published data, to estimate direct and indirect impacts. The Port Authority of New York & New Jersey’s input and results were used where applicable. Please refer to Appendix A of the Technical Report for more details on the definition of direct and indirect impacts1 and the study methodology.

1 Definition of direct impacts in Appendix A: Study Methodology on page A-1; indirect impacts defined on page A-6.

i New York Statewide Airport Economic Impacts Study May 2011

1. IMPACT OF AVIATION IN NEW YORK STATE:

The economic impacts of New York State’s airports are varied:

 90 public-use airports.  $50 billion in annual economic activity for New York State businesses is attributable to aviation; equaling 4.4 percent of the total $1,144.5 billion Gross State Product, or $1 out of every $23.  Approximately 394,500 New York State jobs are related directly or indirectly to aviation, representing roughly 4.6 percent of the 8.5 million jobs in the state.  Payroll from aviation totals more than $18 billion, or 2 percent of total income in the state.  Economic impacts from aviation in New York State are 6 percent of the nation’s total aviation economic impact (three times more than for the average state).  Fortune 500 businesses, such as IBM, Pfizer, Verizon, American Express, Time Warner, Eastman Kodak, and many others, are significant users of New York’s aviation system and help sustain local economies. These businesses rely on commercial service and general aviation to meet their business transportation needs.  More than $4.5 billion in state and local tax revenues related to aviation were collected, roughly 4.1 percent of all 2009 state and local taxes.  More than $610 million was invested by federal, state, and local sources in capital development at New York State airports in 2009.  Airline markets across New York State have attracted low-fare carriers, such as Southwest , JetBlue, AirTran and , saving New Yorkers millions of dollars in air fares each year. Cities with low-fare carriers have made businesses more accessible to their clients and New York locations more accessible to tourists.

New York State Economic Impacts of Public-Use Airports SUMMARY IMPACTS Total Annual Earnings Annual Economic Activity Airport Categories Jobs* ($ million) ($ million)

JFK and LGA Airports 319,000 $15,161 $42,059 Other Airline Service Airports 66,400 $2,387 $7,072 Non-Airline Airports/Heliports 9,100 $504 $1,124 Total Statewide Airport Impacts 394,500 $18,052 $50,255 *Note: Total Jobs is defined as all direct and indirect jobs generated. Indirect impacts are those impacts resulting from the respending of income generated directly by an activity (direct impacts) within the economy.

ii New York Statewide Airport Economic Impacts Study May 2011

2. IMPACT OF THE GLOBAL RECESSION ON AVIATION IN NEW YORK

The impact of the current national/global economic recession has been significant to the aviation industry nationwide and in New York. In New York State, 367,400 jobs across all sectors were lost as a result of the economic downturn. Prior to the recession, the FAA predicted that the U.S. would experience 1 billion airline passengers by 2015. That time frame has been pushed back to 2023 because of the economic slowdown.

The decline in U.S. airline passenger traffic since 2007 has been significant, with an overall 8.3 percent drop through the end of 2009. In New York State, the 6.9 percent decline was less severe overall, due largely to the better-than-average performance of JFK International during the period. Five New York airline airports performed better than the U.S. benchmark, while seven performed worse:

 Three airports gained enplanements: Elmira/Corning Regional, Ithaca Tompkins Regional and Westchester County.  Two airports performed better than the national benchmark: Buffalo Niagara International and JFK International.  Airports in New York State hit harder by the recession than the national averages include: Albany International, Binghamton Regional, Greater Rochester International, LaGuardia, Long Island MacArthur, Stewart International, and Syracuse Hancock International. These airports experienced an average 12.8 percent decrease in enplanements for the 2007-2009 period.

A decline in U.S. general aviation operations (as measured by the FAA) of 8.3 percent during the 2007-2009 period was exceeded by a 12.4 percent decline in New York State during the same period. Thus, compared to a national benchmark, overall airline passenger activity in New York fared better, while total general aviation operational activity in the state was impacted more severely.

3. NEW YORK STATE’S AIRPORT SYSTEM

New York State has an airport system that includes 90 public-use facilities in the State Aviation System Plan. Scheduled airline passenger service is provided at 18 of these airports, generating much of the economic impact to the state. The other 72 public-use general aviation (GA) airports and heliports feature services, such as quick access for medical emergencies and law enforcement; charter flights for business and executives; flight training; and tourism and recreational flying. These general aviation airports and heliports are within a 30-minute drive for most New Yorkers. This study has found that many of these non-airline airports provide a critical transportation link for local businesses.

NYS Economic Impacts of Aviation – Detailed Impacts for Airline Airports Annual Economic Commercial Service Airports Total Jobs Annual Earnings Activity Adirondack Regional 74 $4,084,700 $7,885,600 Albany International 8,872 $288,002,700 $760,810,300

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NYS Economic Impacts of Aviation – Detailed Impacts for Airline Airports Annual Economic Commercial Service Airports Total Jobs Annual Earnings Activity Buffalo Niagara International 16,628 $384,019,500 $1,071,185,400 Chautauqua County-Jamestown 341 $17,365,800 $43,368,700 Elmira/Corning Regional* 3,377 $208,438,800 $1,543,279,400 Greater Binghamton 483 $23,236,400 $52,784,800 Greater Rochester International 9,998 $295,207,000 $800,363,800 Ithaca Tompkins Regional 510 $28,573,300 $66,836,400 JFK International** 224,621 $10,883,000,000 $30,314,000,000 LaGuardia** 94,367 $4,278,000,000 $11,745,000,000 Long Island Mac Arthur 6,085 $229,179,700 $577,016,600 Massena International 61 $4,177,300 $8,571,000 Ogdensburg International 53 $3,564,300 $7,445,600 Plattsburgh International 373 $15,652,100 $38,698,000 Stewart International 5,579 $333,621,900 $750,722,800 Syracuse Hancock International 7,552 $213,062,800 $596,918,100 Watertown International 87 $4,708,600 $9,881,700 Westchester County 6,328 $334,138,200 $735,879,600 Subtotal Commercial Service 385,389 $17,548,033,100 $49,130,647,800

NYS Economic Impacts of Aviation – Detailed Impacts for GA Airports Annual Economic General Aviation Airports Total Jobs Annual Earnings Activity Akron 11 $527,400 $1,160,900 Brookhaven-Calabro 101 $6,925,200 $16,174,500 Buffalo-Lancaster 25 $1,337,600 $2,913,100 Camillus 4 $180,000 $351,000 Canandaigua 57 $4,983,900 $12,030,500 Cattaraugus County-Olean 16 $1,040,000 $2,366,000 Chautauqua County/Dunkirk 44 $2,032,600 $3,968,600 Columbia County 95 $7,639,900 $20,429,200 Corning-Painted Post 27 $1,720,500 $3,915,100 Cortland County 25 $1,595,600 $3,106,100 Dansville Municipal 20 $1,193,000 $2,845,500 Dutchess County 238 $13,383,500 $44,047,500 East Hampton 91 $5,812,800 $12,605,100 Finger Lakes Regional 21 $1,444,300 $2,831,600 Floyd Bennett Memorial 53 $3,614,600 $8,395,000 Francis S. Gabreski 1,359 $67,232,500 $121,598,300 Fulton County 11 $638,600 $2,096,000 Genesee County 90 $7,548,600 $18,127,600 Great Valley 3 $228,800 $461,600 Griffiss International 510 $22,039,000 $66,931,100

iv New York Statewide Airport Economic Impacts Study May 2011

NYS Economic Impacts of Aviation – Detailed Impacts for GA Airports Annual Economic General Aviation Airports Total Jobs Annual Earnings Activity Hamilton Municipal 48 $2,997,800 $6,136,500 Hornell 6 $248,200 $525,900 Joseph Y. Resnick 12 $563,100 $1,278,000 Kingston-Ulster 17 $1,161,700 $3,181,900 Lake Placid 40 $2,442,300 $7,127,300 Ledgedale Airpark 62 $3,552,000 $7,875,200 Lt. Warren Eaton 11 $498,300 $1,005,900 Malone-Dufort 6 $255,700 $620,700 Montauk 7 $371,100 $876,500 Niagara Falls International 1,706 $84,764,200 $158,590,400 Oneonta Municipal Airport 20 $1,065,500 $2,228,400 Orange County 37 $1,826,200 $5,942,300 Oswego County 25 $1,241,200 $2,536,100 Penn Yan 199 $22,064,000 $52,843,800 Perry-Warsaw 17 $1,070,600 $2,007,500 Piseco Municipal 4 $88,500 $228,400 Potsdam 121 $10,343,500 $25,843,600 Republic 1,384 $78,025,500 $214,144,300 Saratoga County 59 $5,862,900 $13,383,700 Schenectady County 1,724 $81,457,300 $152,428,700 Schroon Lake 2 $91,400 $184,500 Sidney Municipal 18 $972,600 $2,988,100 Skaneateles 1 $30,900 $78,300 Sky Acres 42 $2,178,100 $4,437,000 South Albany 12 $723,700 $1,326,100 Sullivan County International 119 $11,873,600 $26,473,200 Ticonderoga 11 $478,500 $1,040,200 Tri-Cities 14 $492,800 $1,914,900 Wellsville 30 $1,614,800 $4,553,400 Whitford’s 9 $254,400 $713,300 Williamson-Sodus 15 $1,072,200 $2,662,600 Wurtsboro 13 $719,800 $1,616,500 Small Public Airports – Aggregate*** 91 $6,055,600 $12,338,300 Subtotal GA 8,683 $477,576,400 $1,065,485,800 Private Airports 18 $1,259,100 $2,403,300 Heliports 416 $27,223,900 $59,352,500 Subtotal Other 434 $28,483,000 $61,755,800 Grand Total 394,506 $18,054,092,500 $50,257,889,400 * Note: ELM included $1.28 billion direct impacts from helicopter manufacturer on the airport. ** Note: JFK International and LGA Airports data from Port Authority of NY & NJ. *** Fifteen (15) small public State Airport System Plan (SASP) airports were aggregated because of their small size and low levels of activity.

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4. BOOSTING AN AIRPORT’S ECONOMIC IMPACT

To increase an airport’s economic impact in its community, airport sponsors must find ways to attract businesses and new investment in their facilities. The following strategies are available for many airports, but they must be planned and applied locally to achieve maximum benefit:

 Airport Branding, Marketing and Promotion  Air Service Improvements  Partnerships with Other Public and Private Agencies and Institutions  Retention Strategies for Existing Tenants and Transient Clients  Development of Non-Aeronautical Real Estate  Attraction of Aviation Businesses and Manufacturers

This study has found that the highest rates of economic activity and employment are centered in five primary aviation businesses:

 Aviation Manufacturing o Sikorsky at Elmira Generated $1.3 billion with 1,250 Total Jobs  Maintenance/Repair/Overhaul (MRO) Facilities o Griffiss International MRO Produced $170 million and 900 Total Jobs  Corporate Jet o One Aircraft Can Generate $1 million in Spending and 5 Direct Jobs (excluding Indirect Spending and Jobs)  Airline Passenger Enplanements o Downstate: One Passenger Generates $1,215 and 107 Passengers = One Job (including Direct and Indirect Jobs). (See Page 32 of the Report.) o Upstate: One Passenger Generates $840 and 132 Passengers = One Job (including Direct and Indirect Jobs). (See Page 32 of the Report.)  Air Cargo o One Ton of Air Cargo Generates $2,600 and One Direct Job = 68 Enplaned Tons (including Direct and Indirect Jobs). (See Page 32 of the Report.)

5. TAXES RETURNED FROM AVIATION

More than $4.5 billion in state and local taxes are generated from aviation-related activity in New York State. This amount represents approximately 4.1 percent of the total 2009 state and local tax revenue. This tax revenue impacts all New Yorkers.

6. CONCLUSIONS ABOUT AVIATION’S ECONOMIC IMPACT

The aviation sector is important to New York State’s economy and to the communities served by airports.

 Annual Economic Activity attributable to aviation totals $50 billion.  The $50 billion impact is 4.4 percent of the $1,145 billion estimated Gross State Product (GSP).

vi New York Statewide Airport Economic Impacts Study May 2011

 Approximately 394,500 New York State jobs (almost 4.6 percent of total jobs) are related, directly or indirectly, to airports and the aviation industry. Combined these jobs pay $18 billion annually.  .  Airports and aviation pay more than $4.5 billion in state and local taxes each year – about 4.1 percent of the state’s total.  Aviation’s annual economic activity is $2,574 per New York State resident.

Convenient, affordable, and safe airline and commuter services are vital to New York State’s economic well-being.

 JFK International and LaGuardia Airports make up almost 84 percent of the state’s aviation economic impact.  The other 16 airline airports, with total direct and indirect impacts of more than $7 billion in economic activity and more than 66,400 jobs, account for more than 14 percent of the state’s aviation economic impact.

New York’s 72 non-airline public-use airports are also important to the local and state economies.

 Non-airline airports yield approximately $1.1 billion in annual economic activity and provide businesses and residents with access to air transportation while relieving congestion at busy commercial service airports.

Public investment leverages measurable economic return for local communities and the state.

 Federal, state, and local funding of airports for capital improvements, which helps maintain New York’s investments, amounts to 1.2 percent of the $50.3 billion annual economic impact generated by the airports. Much of this public funding is paid for by FAA grants from user fees and taxes. Grant funding may range from 75 percent to 95 percent of the total project.  Aviation impacts every citizen, whether he or she has ever flown in an aircraft or shipped air cargo, because aviation supports the entire New York State economy. In this regard, the multiplied effect of respending aviation-generated dollars within the state radiates the impacts of aviation to every county and every community.

The impact of airports and aviation use in New York; however, is more than these numbers can estimate. Similar to roads and bridges, airports provide connectivity to business markets, facilitating economic growth. Airports are unique; however, in that they connect regional, interstate, and even global markets in the most direct and time-effective way. As with other modes of transportation, strategic investment in New York State’s airport infrastructure is essential to long-term economic recovery and growth.

vii New York Statewide Airport Economic Impacts Study May 2011

NEW YORK STATEWIDE AIRPORT ECONOMIC IMPACTS STUDY

PURPOSE

The purpose of this study is to highlight the benefits of the aviation sector - specifically the impacts derived from public-use airports - to the economy of the state. It provides a benchmark of aviation’s contribution to our economy in 2009 by looking at the economic activity, jobs, and taxes generated by this sector. All of the airline airports (those with scheduled commercial airline service) - as well as many of the larger airports without scheduled airline service (called General Aviation airports) - are publicly owned and provide mobility for people and goods as well as vital links to the national and international transportation system. This study was made possible by a grant from the Federal Aviation Administration (FAA).

As an integral component of the state’s transportation system, the aviation sector provides significant impacts to the state’s economy, in both direct and indirect terms. Investments in this area of the transportation system have the potential help improve the health of local economies and the state as a whole. This study quantifies the level of economic activity that is attributed to the aviation sector for the year 2009 and shows that this sector produces a considerable level of impacts given the level of public investment required to maintain the system in a state of good repair.

The New York State Department of Transportation’s (NYSDOT) Capital Program Proposal for 2010-2015 recognizes that transportation is essential to our everyday lives and to the functioning of every aspect of our economy (p. 3). The 2010-2015 Proposal stresses the importance of a sound transportation system as the underpinning of a thriving economy and livable communities. Aviation serves a pivotal role in this interconnected, multimodal system serving New Yorkers and connecting them to the rest of the world. As such, the aviation system does not operate in vacuum. Highways and transit systems provide the means for passengers to access airports; and highways collect and distribute cargo carried by airlines and freight transporters.

As emphasized in NYSDOT’s 2010-2015 Proposal (as well as the Department’s 2007 Multimodal Investment Needs and Goals for the Future - the 20-year Plan), the Department must address a number of challenges, including the state’s aging infrastructure and growing congestion. The Proposal states that “investments in the transportation infrastructure beyond the system owned and controlled by the State are also necessary to serve the traveling public and to support the state’s economy” (p. 13) and justifies critical investments regardless of system ownership.

1 New York Statewide Airport Economic Impacts Study May 2011

Just like highways, railroads, and transit systems, aviation infrastructure is in need of repair, rehabilitation and reconstruction. To extend the service life of essential aviation facilities, the 2010-2015 Proposal advances goals for aviation and a level of investment which will allow the State to leverage Federal aid, promote economic development of commercial and general aviation airports, and improve connectivity of the overall transportation network. The Department’s 2008 State Aviation System Plan reiterates this need by proposing a multi-year investment program and a strategy to help a system of business airports aimed at helping local economies.

In 2002, NYSDOT undertook a similar economic impacts study. That study quantified the economic effects of aviation in terms of economic activity and jobs and provided a measure of aviation’s economic impacts locally and statewide. This study updates the 2002 report and is based on aviation activity occurring during the 2009 calendar year. The study also provides perspective on the current recession and points toward elements of the aviation industry that, if developed, are likely to enhance economic development. Much of the data used in this analysis was gathered from airport sponsors, NYSDOT and the Port Authority of New York & New Jersey (PANY&NJ).

The Statewide Airport Economic Impacts Study is documented in the following sections:

● Study Context: National Aviation Industry & Economic Factors ● Study Methodology ● Statewide Economic Impact of Aviation ● Economic Impacts by Airport

The scope of this study is statewide and utilizes surveys of individual airports to determine on-airport jobs, on-airport spending, visitor spending and other published data, to estimate direct and indirect impacts. The Port Authority of New York & New Jersey’s input and results were used where applicable. Please refer to Appendix A of the Technical Report for more details on the definition of direct and indirect impacts1 and the study methodology. Findings from this study show how aviation contributes to the economy by describing the level of direct and indirect dollars, and jobs, attributable to public use airports in the state.

1 Definition of direct impacts in Appendix A: Study Methodology on page A-1; indirect impacts defined on page A-6.

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1. STUDY CONTEXT: NATIONAL AVIATION INDUSTRY & ECONOMIC FACTORS

T THE OUTSET OF THE STUDY PROCESS, several issues facing the national aviation industry and the economy were considered. These issues and factors represent a snapshot of Abroader contextual forces that affect the economic impact of airports in New York State. In some way, airports of all sizes and levels of activity throughout the state are dealing with these forces that drive business and corporate activity, recreational , airline service, public and private investment at airports, air cargo and opportunities for building sustainable facilities. This section summarizes the issues considered here.

1.1 Impacts of the Global Economic Recession on Aviation in New York

The National Bureau of Economic Research pegged the start of the current recession to December 2007, making it the longest since the Great Depression.2 By definition, a recession is period of economic decline, typically measured by a decline in Gross Domestic Product (GDP) for two consecutive quarters. The effects of this recession have been particularly severe in New York State (NYS), where tax revenues from Wall Street have declined, along with housing prices, demand for durable goods, tourism and the service industry. In New York State, the economic downturn cost 367,400 jobs between April 2008 and December 2009.3 The aviation market in NYS has been affected by lower demand, reflecting the broad decline of these and other economic activity indicators. There are, of course, exceptions to this rule. But generally, the current recession has cut deeply into the state’s economic well-being.

This study examines the impacts of the recession on the aviation industry in the state. One method of measuring the impacts involved the correlation of unemployment to aviation activity. By comparing these correlations to a national benchmark, some notion of the severity of the impacts in NYS could be determined. Comparisons were made for airline use at all the non- subsidized airline airports in the state. For general aviation activity, aggregated statewide general aviation operations were used as the metric of comparison.

Defining Parameters

Parameters for measuring the impacts of the recession on NYS include both time frame and activity statistics. Since the current recession began in December 2007, measures of activity during the 2007-2009 period would capture the recessionary effects of the most recent completed calendar year. Aviation activity measures include:

● Airline Enplanements4: Airline enplanement statistics from all the non- subsidized commercial service airports in NYS were gathered from FAA data sources, along with the corresponding national totals for the same period.

2 Source: http://money.cnn.com/2008/12/01/news/economy/recession/index.htm . 3 Source: http://www.osc.state.ny.us/reports/economic/nys_economic_trends.pdf . 4 Definition: An enplanement, as defined by the FAA, is a single, revenue-generating passenger departing from or arriving at an airport.

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● General Aviation Operations5: GA aircraft statewide operations statistics were aggregated for 2007-2009 and compared to the national totals for the same period.

● Unemployment Statistics: Unemployment statistics were gathered for both the State6 and the United States7. For New York, county-level unemployment statistics were compiled for the 12 counties in which a non-subsidized commercial service airport was located. In addition, the statewide and U.S. unemployment statistics were compiled for the 2007-2009 period.

One indication of an ailing economy is a rising unemployment level. Thus, it is believed that a comparison of unemployment to enplanements would yield some correlation.

Correlation Statistics

Correlation is a measure of association between two variables. The variables do not have to be dependent upon one another in order to measure correlation between them. That is, the variables do not have to include cause-and-effect relationships in order to be correlated. However, the connection between rising unemployment and declining enplanements and aircraft operations is intuitively understood. To measure this relationship, a simple Pearson correlation (which determines the extent to which values of two variables are "proportional" to each other) was used that related the various enplanement and operational statistics to unemployment.

It is assumed that the natural relationship between enplanements and unemployment would be inverse. That is, rising unemployment would likely decrease enplanements. When there is a positive correlation between two variables, as the value of one variable increases, the value of the other variable also increases. The variables move together.

Recessionary Impacts on Airline Activity

Table 1 presents statistics that help demonstrate the impacts of the recession on airline activity in NYS. Shown in the table are the enplanement figures from 2007-2009, along with corresponding unemployment rates. For the U.S., the following correlation between total enplanements and national unemployment exists:

U.S. Enplanements U.S. Unemployment Rate ● 2007 756,525,465 4.6% ● 2008 746,909,759 5.8% ● 2009 689,323,986 9.3%

Correlation coefficient (R) between Enplanements & Unemployment Rate = -0.993

5 Definition: An operation is one takeoff or landing of air carrier, air taxi, general aviation and military aircraft. Operations Statistics Source: FAA Terminal Area Forecasts, http://aspm.faa.gov/main/taf.asp. 6 Source: New York Department of Labor. 7 Source: U.S. Department of Commerce, Bureau of Labor Statistics.

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This means that for every 1.0 percent increase in unemployment, total enplanements declined by 1.77 percent. Thus, given only these two variables for the nation, there is a highly correlated inverse relationship between enplanements and the unemployment rate. It can be noted that a 4.7 percent rise in unemployment occurred coincident with an 8.3 percent decline in total U.S. enplanements.

On a statewide basis, the following correlation exists between annual enplanements and the unemployment rate:

NYS Enplanements NYS Unemployment Rate ● 2007 45,394,082 4.7% ● 2008 44,404,139 6.7% ● 2009 42,460,291 8.9%

Correlation coefficient (R) between Enplanements & Unemployment Rate = -0.988

Thus, for NYS, the above analysis points to a strong correlated inverse relationship between enplanements and the unemployment rate. It can be noted that a 4.2 percent rise in unemployment occurred coincident with a 6.9 percent decline in total NYS enplanements. For every 1.0 percent increase in unemployment, total enplanements declined by 1.64 percent, which was slightly less than the national average. The above analysis shows that recessionary airline enplanement activity in NYS performed better than the U.S. benchmark through the end of 2009, due primarily to the better-than-average performance of JFK International.

Table 1 - Unemployment Levels and Airline Enplanements Airport County R Value Year Airport County R Value Enplanements Unemployment Rate Enplanements Unemployment Rate ALB Albany County R Value JFK Queens County 1,423,754 3.9% 2007 23,401,351 4.3% 1,365,854 4.8% 2008 23,620,948 4.9% 1,302,814 6.7% -0.984 2009 22,710,272 8.6% -0.935

BUF Erie County LGA Queens County 2,677,183 4.7% 2007 12,529,890 4.3% 2,744,501 5.6% 2008 11,567,586 4.9% 2,657,467 8.1% -0.464 2009 11,084,300 8.6% -0.835

ELM Chemung County ISP Suffolk County 99,211 4.6% 2007 1,167,515 3.9% 104,508 5.5% 2008 1,048,768 4.9% 114,519 8.9% 0.989 2009 929,902 7.3% -0.973

BGM Broome County SWF Orange County 120,465 4.5% 2007 455,045 4.3% 108,325 5.5% 2008 392,464 5.3% 98,090 8.2% -0.953 2009 197,655 7.8% -0.999

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Table 1 - Unemployment Levels and Airline Enplanements Airport County R Value Year Airport County R Value Enplanements Unemployment Rate Enplanements Unemployment Rate ROC Monroe County SYR Onondaga County 1,431,412 4.5% 2007 1,179,113 4.1% 1,349,694 5.4% 2008 1,105,143 5.1% 1,273,783 7.8% -0.962 2009 1,016,571 7.6% -0.982

ITH Tompkins County HPN Westchester County 85,665 3.4% 2007 823,478 3.7% 91,866 4.1% 2008 904,482 4.7% 109,991 5.8% 0.999 2009 964,927 7.1% 0.950 Sources: Enplanements – FAA Terminal Area Forecasts, Unemployment – New York State Department of Labor

As shown in Table 1, there are no unemployment rates in these New York counties above 8.9 percent, with almost two-thirds reporting rates under 8 percent. Although the national benchmark shows a highly correlated negative or inverse relationship, three NYS airports have highly correlated positive R values: Elmira/Corning, Ithaca Tompkins and Westchester County. At these airports, enplanement actually grew as unemployment continued to rise. Two other New York airports fared better than the national benchmark: Buffalo Niagara International and John F. Kennedy (JFK) International. Whereas the national benchmark showed a loss of 6.3 percent of enplanements, Buffalo lost less than one percent during the same period and JFK lost only 3.0 percent during the same period. In each case, there are reasons why the New York airports fared better than expected:

● Elmira/Corning Regional Airport gained a new airline (Allegiant) and has benefited from the Marcellus Shale natural gas exploration in the area. ● Ithaca Tompkins Regional Airport gained improved airline service and has benefited from the Marcellus Shale natural gas exploration in the area. ● Westchester County Airport has benefited from the expansion of capacity limits at the airport and introduction of low-fare airlines. ● Buffalo-Niagara International has benefited from Canadian usage of the airport that continues to grow. ● JFK International is believed to have fared better than the national benchmark due to low-cost carrier traffic and stronger international traffic.

The passenger growth at the above airports demonstrates market variables not wholly dependent on local economies, but rather new nearby industry, effects of a positive dollar exchange (i.e. Canadian and other international traffic markets) and attraction of low-cost carriers.

The seven remaining airline airports were not as fortunate in resisting the effects of the recession. In this regard, these airports suffered declines in traffic that exceeded the national percentage. At the same time, all of the unemployment rates in each associated New York county were lower than the national average. Thus, these New York airports were hit harder than average by the recession.

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Recessionary Impacts on General Aviation Activity

To estimate the effects of the recession on general aviation activity, two statistics were compared: statewide general aviation operations and statewide unemployment rates. Statewide general aviation operations are reported in the Federal Aviation Administration’s Terminal Area Forecasts. Statewide unemployment statistics were taken from the U.S. Department of Commerce, Bureau of Labor Statistics.

Using a similar methodology to that used for airline enplanements, general aviation operations were correlated to unemployment rates. General aviation incorporates all aviation activity except scheduled passenger operations and military operations. For the U.S., the following statistics were available for the 2007-2009 period:

U.S. GA Operations U.S. Unemployment Rate ● 2007 80,747,523 4.6% ● 2008 78,225,420 5.8% ● 2009 74,556,114 9.3%

Correlation coefficient (R) between GA Operations and the Unemployment Rate = -0.986

Thus, for the nation, there is a highly correlated inverse relationship between general aviation operations and the unemployment rate. It can be noted that a 4.7 percent rise in unemployment occurred coincident with an 8.3 percent decline in total U.S. general aviation operations. Thus, for every 1.0 percent increase in unemployment, total U.S. general aviation operations declined by 1.77 percent.

On a statewide basis, the following correlation exists between annual general aviation operations and the unemployment rate:

NYS GA Operations NYS Unemployment Rate ● 2007 2,557,311 4.7% ● 2008 2,389,031 6.7% ● 2009 2,275,406 8.9%

Correlation coefficient (R) between GA Operations and the Unemployment Rate = -0.990

As expected, there is a highly correlated inverse relationship between general aviation operations and the unemployment rate. It can be noted that a 4.2 percent rise in unemployment occurred coincident with a 12.4 percent decline in statewide general aviation operations. Thus, for every 1.0 percent increase in unemployment, total NYS general aviation operations declined by 3.0 percent, which was significantly higher than the national average. Thus, the recession has impacted general aviation activity more severely in NYS than in the nation as a whole.

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Summary and Findings

Specifics associated with the recession’s impact on each activity measure included the following:

● U.S. Airline Activity Impacts: A 4.7 percent rise in unemployment occurred coincident with an 8.3 percent decline in total U.S. enplanements. Thus, for every 1.0 percent increase in unemployment, total U.S. enplanements declined by 1.77 percent.

● NYS Airline Activity Impacts: A 4.2 percent rise in unemployment occurred coincident with a 6.9 percent decline in total NYS enplanements. Thus, for every 1.0 percent increase in unemployment, total enplanements declined by 1.64 percent, which was slightly less than the national average. Thus, recessionary airline enplanement activity in NYS performed better than the U.S. benchmark through the end of 2009.

● Individual NYS Airport Performance: Five New York airline airports performed better than the U.S. benchmark, while seven performed worse: - Three airports actually gained enplanements over the period: Elmira/Corning Regional, Ithaca Tompkins Regional and Westchester County Airport. - Two other airports performed better than the national benchmark: Buffalo Niagara International and JFK International. - Airports in NYS hit harder by the recession than the national averages include: Albany International, Greater Binghamton, Greater Rochester International, LaGuardia, Long Island MacArthur, Stewart International and Syracuse Hancock International.

● U.S. General Aviation Activity Impacts: A 4.7 percent rise in unemployment occurred coincident with an 8.3 percent decline in total U.S. general aviation operations. Thus, for every 1.0 percent increase in unemployment, total general aviation operations declined by 1.77 percent.

● NYS General Aviation Activity Impacts: A 4.2 percent rise in unemployment occurred coincident with a 12.4 percent decline in statewide general aviation operations. Thus, for every 1.0 percent increase in unemployment, total NYS general aviation operations declined by 3.0 percent, which was significantly higher than the national average. Thus, the recession has impacted general aviation activity more severely in NYS than in the nation as a whole.

In summary, it can be stated that the current recession has negatively impacted aviation activity in NYS. Compared to a national benchmark, NYS airline passenger activity fared better, while NYS general aviation operational activity was more severely impacted.

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1.2 Review of Other Economic Impact Studies

To place the results of this study in context of previous economic impact work, several older studies were reviewed. This section briefly considers the primary results or findings of three previous economic impact studies. These studies include:

 The Economic Impact of on the Economy Agency: FAA Air Traffic Organization (ATO) Date: December 2009

 The Economic Impact of the Aviation Industry on the New York-New Jersey Metropolitan Region Agency: The Port Authority of New York & New Jersey (PANY&NJ) Date: October 2005

 New York Statewide Airport Economic Benefits Study Agency: New York Department of Transportation Date: September 2003

For each of these studies, airport economic impacts were quantified to help demonstrate the impacts of a thriving airport as part of an integrated transportation system. Study results were used by some airports to demonstrate their economic impact to their communities and to elected representatives at local, state and federal levels. The following sections present a snapshot of results from these previous studies.

The Economic Impact of Civil Aviation on the Economy (2009)

In this study, the FAA recognized rising fuel prices and the effects of the nation’s sluggish economy, but anticipated that long-term trends will still result in significant increases in passenger demand and the emergence of new and different types of aircraft. Other topics analyzed included implementation of the Next Generation Air Transportation System (NextGen) and meeting future internal FAA challenges by managing costs and improving efficiencies.

Economic impacts published in the FAA ATO study covered the year 2007 and include:

 Total economic impact of civil aviation in the U.S. amounts to $1.3 trillion.  Commercial aviation generates $1,225 billion in total economic impacts, accounting for 93 percent of civil aviation’s total economic impact in the U.S.  General aviation contributes a total of $90.5 billion in impacts on all activity excluding major airlines and the military.

The FAA ATO study includes measures of jobs and earnings for aviation in the U.S. In this regard, total earnings from aviation were $396.3 billion in support of 11,512,000 jobs. New York’s portion of this was estimated at 368,400. For 2007, New York’s economic activity for aviation was estimated to be $45.26 billion.

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PANY&NJ Study (2005)

At the time of this study, PANY&NJ was not yet the owner/operator of Stewart International Airport, so the report considered only JFK International, LaGuardia and Newark Liberty International. Some issues affecting that study included the increased price competition of low-cost carriers in domestic markets; increased usage of AirTrain system by passengers for access to JFK and Newark; and continued security infrastructure investments as a result of 9/11/01 and the transfer of these costs to consumers, carriers and operators.

As described in the study’s Executive Summary, the Port Authority’s regional airport system served approximately 94 passengers and allowed the handling of almost 3 million tons of cargo in 2004. The impact of these activities accounted for the following during 2004:

 278,890 total jobs  $13.1 billion in wages  $37.1 billion in sales or economic activity

During the 2000-2004 period, the Port Authority and its business partners invested an average of nearly $1.5 billion annually ($7.4 billion in total) on infrastructure enhancements at the airports. The economic impacts of these investments were:

 14,500 total jobs  $724 million in wages  $2.4 billion in sales or economic activity

The study estimated 16.9 million domestic and international visitors came to the region by air in 2004. This tourism activity, specifically the cumulative spending on shopping, lodging, meals, entertainment and local transportation of these visitors, represents a major secondary benefit of the air transportation system. Tourism impacts in 2004 were:

 192,280 jobs  $6.6 billion in wages  $17.6 billion in sales or economic activity

While these numbers include Newark Liberty International in New Jersey, the results of the study point to significant impacts that represent 5.5 percent of the region’s non-farm jobs (485,670), paying $20.5 billion in incomes and $57 billion in total sales or economic activity.

NYSDOT Study (2003)

The incumbent of this current study was completed in 2003 using 2002 data from New York State. Similar to the current study, this process quantified the economic effects of aviation in terms of jobs, income, and overall dollar output. A critical part of this study was the generation of impacts prior to and after the tragic events of 9/11/01.

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According to the 2003 NYSDOT study, the economic benefits of New York airports were as follows:

 Almost $35.4 billion in annual economic activity of New York State businesses and institutions was attributable to aviation (including both direct and indirect impacts). - Of this total, $30.125 billion was attributable to JFK International and LaGuardia airports. Not included were visitor impacts to these airports. - In this current (2010) study, JFK and LaGuardia have included these visitor impacts, which add $14.079 billion to the overall economic impact of the two airports.  More than 347,500 New York State residents owed their jobs, directly or indirectly, to aviation. In 2002, this was 4 percent of all jobs in the state.  Payroll from aviation made up $13.5 billion or 2 percent of total income in the state.  $2.8 billion was generated in state and local tax revenues from aviation.  In 2002, total investment in New York airports cost only 1.4 percent of its total annual impact on New York State.

The report documented that the attacks of 9/11/01 resulted in declines in tourism and airline activity. These declines were responsible for a total employment decrease of 8.4 percent and total output decrease of 7.4 percent.

Summary

Considering the information presented in this section, it is clear that the aviation industry, with both commercial airline and general aviation airports, has significant impact on New York’s economy. The most recent national study indicated New York’s total economic impact to be $45.26 billion in 2007. This can be compared with the $35.4 billion estimated in 2002 for the state. While the Port Authority study is informative, it does not give a statewide estimate and, thus, cannot be compared to the other two studies. However, a comparison of the 2003 NYSDOT study results with the findings of this current study is informative and will be presented in a subsequent section of this Technical Report.

1.3 Activity at New York’s Commercial Service and GA Airports

Commercial service airports have far-reaching impacts throughout New York State. The 18 commercial service airports in the state range from subsidized air service at Ogdensburg International to the international hub at New York’s JFK International Airport; in total, these airports enplaned nearly 42 million passengers during the calendar year 2009.

Although nearly 75 percent of the state’s enplanements occur at LaGuardia or JFK, the contributions of the remaining 16 commercial service airports are important for their local economies. Each of the four airports along the NYS Thruway - Albany International, Syracuse Hancock International, Greater Rochester International and Buffalo Niagara International - has a wide variety of airlines, including service on low-fare airline networks. These airports each

11 New York Statewide Airport Economic Impacts Study May 2011 enplane more than 1 million passengers annually and have a catchment area that covers most of the population in upstate New York. The suburban area of contains three commercial service airports: Long Island MacArthur (Islip) and Westchester County Airport in White Plains each enplane near 1 million passengers annually, while Stewart International in Newburgh enplanes almost 300,000 passengers. The Southern Tier and Finger Lakes regions of New York contain three airports: Greater Binghamton, Elmira/Corning Regional and Ithaca Tompkins Regional, each having enplanements of more than 100,000 annual passengers. These airports provide service to key airline hubs that are essential for local businesses and universities. In other areas of the state, six airports receive scheduled air service as part of the Essential Air Service (EAS) program. The communities of Chautauqua County (Jamestown), Watertown International, Ogdensburg International, Massena International, Adirondack Regional (Saranac Lake) and Plattsburgh International each receive daily schedule service on . The only airport that received commercial service on a less-than-daily basis is the Niagara Falls International airport, which offers scheduled charter flights on leisure destinations several days per week.

Commercial Aviation Economy

Commercial aviation is an essential channel for global commerce; economies across the country and around the world are connected by numerous airline networks. The economic recession that began in December 2007 continues to affect economies on a global scale. Business travel is typically the most lucrative for the commercial airlines because of the propensity to buy costlier and less restrictive/refundable fare tickets and to make more frequent trips than leisure travelers. During an economic recession, business travel wanes and airlines experience a decline in revenue from their core travelers. Leisure traffic also suffers under weak economic conditions because most people will often cut back on discretionary travel; these cuts affect airports of all sizes.

Economic cycles cannot be systematically forecast; while the current recession has been likened to the Great Depression, periods of economic recession have historically occurred every 10-15 years. Similar but smaller economic downturns occurred in the early 1990s and early 1980s. Just as a recession cannot be forecast, oftentimes it cannot be avoided. It is important for airports and aviation-related businesses to operate efficiently in stronger economic times to minimize complications during weaker economic periods. Strategies that can help an airport management be better prepared for economic downturns include monitoring economic indicators, having a low-cost operating structure, deriving revenue from both aviation and non- aviation sources, having cross-trained employees, and updating its airport business plan.

Air Service Trends

During the past decade, several events have significantly altered the way airlines operate. The 9/11/01 attacks introduced new layers of security that lessened the convenience of flying, especially on shorter haul routes. An airline such as Southwest, that had an average trip length of 500 miles in the late 1990s, now flies an average length of almost 900 miles. Demand for most airports peaked in 2007, after demand following 9/11/01 had fully rebounded and before fuel costs escalated.

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The peak in passenger demand was a result of overcapacity from intense competition for market share among the airlines in the United States. In the past decade, numerous airlines that operated flights have ceased operations due to bankruptcy. These airlines include: , Midway Airlines, Skybus, America Trans Air (ATA), TransMeridian, Southeast Airlines, III, Boston & Maine Airways and . Additional airlines and competition were lost as a result of mergers such as (TWA) in 2001, America West in 2005 and in 2009. The trend of consolidation in the airline industry is expected to continue for both regional and national carriers, including the recently approved merger between and .

In addition to airlines ceasing operations entirely, some airlines downgraded or completely abandoned connecting hubs. Over the 2004-2010 period, significantly reduced operations at its Cincinnati hub, which was primarily oriented for connecting traffic. In 2005, Cincinnati had more than 25 daily flights to cities throughout New York (excluding LaGuardia and JFK); by the fall of 2010, there were just two daily flights (excluding LaGuardia and JFK). This period also saw the demise of the US Airways hub at Pittsburgh (2004) and a hub in Albany, N.Y. (2007). At their peak, these hubs provided service to most of the primary commercial service airports in New York. Nearly every commercial service airport in the state, including LaGuardia and JFK, has experienced a reduction in service from the downsizing of these facilities.

During this period of weak demand and overcapacity, in addition to reducing service, airlines began to downsize aircraft. Most major US airlines retired their fleets of older or less- efficient aircraft, such as the Boeing 737-200/300, Douglas, DC-9 and Fokker F100s. These aircraft, which typically seated 100 to 120 passengers, were often replaced with flights by regional aircraft, such as the Canadair Regional Jet (CRJ) 700/900, and Embraer 170/175/190, which typically seat 65 to 100 passengers. Low-cost carriers, including Southwest, JetBlue and AirTran, maintain newer aircraft fleets, such as the Airbus A320-200 with 150 seats, Boeing 717s (117 seats) and 737s with varying configurations from 122-137 seats. Delivery of new aircraft by these carriers for the 2007-2009 timeframe has been deferred to the 2011-2015 period.

Fuel Volatility

From spring to summer 2008, jet fuel prices began a rapid run-up culminating in pricing peaks that were nearly double those of the prior year. In 2009, the prices collapsed due to weak demand resulting from the global economic downturn. Since that time, prices have been slowly climbing. With fuel comprising one of the largest cost components of aviation, the volatility and uncertainty in fuel prices have adversely affected every aspect of aviation in recent years. Higher fuel costs mean less general aviation flying, especially recreational flying. Higher fuel costs also reduce the number of airline passengers due to the resulting higher fares that are passed along to the consumer. Increases in fuel prices, unpredictable costs and limited supply will hurt aviation demand and challenge airlines to operate profitably in the near term.

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Facility Cost

Most commercial service airports generate revenue from leasing terminal space, fuel sales, parking and charging landing fees for commercial aircraft. Most of the costs associated with the operation of a passenger terminal are fixed with only a few items having variable costs associated with increased activity. There are numerous types of lease agreements and fee structures that airports can employ with the airlines, although the budget process typically revolves around an anticipated level of activity.

When flights are suspended or downgraded, the result is reduced revenue for the airport to cover the fixed costs of the passenger terminal. Leased space revenue is also lost when airlines merge, reduce or cease service at an airport. Airports must then increase their charges to the airlines to cover the fixed cost operation of the terminal. While in most cases airlines end up paying the same amount by the end of the year, the average cost per passenger increases. The cost per passenger is a common measure used by airlines when evaluating airport facilities and is often a factor in the decision to start or to stop service at an airport. Therefore, airport management must carefully weigh facility pricing as a means to incentivize airline use.

Air Traffic Congestion

Air traffic congestion at JFK, La Guardia, and Newark International impedes economic growth. The following is provided according to a report by the Partnership for New York City8 study titled “Grounded the High Cost of Air Traffic Congestion,” February 2009. The economy of New York City and its 26-county region is fundamentally tied to its transportation networks including its air service. According to the U.S. Department of Transportation JFK, La Guardia, and Newark International Airports rank among the most congested airports in the country with only two-thirds of departures leaving on time in 2007. These airports combined handle about one-third of the nation’s flights.

Airport congestion in the New York region is largely a product of space limitations, including facilities on the ground and limited air space to accommodate the greatest concentration of aircraft movements in the world.9 Flight delays caused by air traffic congestion at the three airports were responsible for more than $2.6 billion in losses to the regional economy in 2008.10 Congestion delays cost shippers over $135 million in 2008.11 These are the conclusions of analyses conducted for the Partnership study by HDR/Decision Economics, with input from Accenture, the Port Authority of New York and New Jersey, and other sources.

The Port Authority of New York and New Jersey has identified actions at all three airports to provide some improvements in airfields, terminals, and roadways that will create

8 Newark International included for discussion purposes as it serves the NYC market. The Partnership for New York City is an organization of NYC’s corporate, investment, and entrepreneurial firms. Working with government, labor, and civic groups to provide business expertise and resources to inform public policy decisions and to promote regional economic growth and job creation. It may be found at www.pfnyc.org. 9 Partnership for New York City, pg 7 Grounded the High Cost of Air Traffic Congestion, February 2009. 10 Ibid, pg 4. 11 Ibid, pg 23.

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incremental capacity. The FAA has initiated a program to completely restructure services and air routes, based on what can be achieved with modern air navigation equipment and advances in technology.12

Strategies being explored by the FAA include: Improvement of ground traffic, development of Area Navigation (RNAV) allowing aircraft to choose any course within a network of beacons or satellites, improvement of flight routes, improving communication systems, and reduction of excess aircraft spacing through improved satellite surveillance systems.

Business General Aviation Airports

For communities with airports that lack scheduled service, general aviation is typically the fastest and most direct connection to other centers of commerce. While traveling by general aviation is normally not economical for the general public, it can often be a viable mode of transportation for business travelers. Quick and convenient access is crucial to business and the distance to the nearest airport capable of handling specific aircraft needs is often a factor when locating or expanding a business.

With business aviation, not all travel is on private jets or large turboprop. Airport users surveyed indicate that they regularly utilize their personal aircraft (typically single-engine piston) for business purposes. For this market segment, it allows virtually every airport in the state to contribute to the needs of businesses both large and small. Airports with improved facilities and services will have a greater opportunity to serve business aviation and add value to the local community. The 2008 New York State Aviation System Plan (SASP) identified three categories of airports that exist in the state:

 Large: Large business-class airports are defined as those with a of 5,000 feet in length or greater. These airports have facilities and services catering to large corporations and can accommodate most of the corporate aviation fleet. These airports will have a greater visitor economic impact because large general aviation aircraft typically transport more affluent clientele and carry more passengers and crew.

 Medium: Medium business-class airports are defined as those with a runway length of at least 4,200 feet, but less than 5,000 feet. Facilities and services at these airports cater to the mid-size corporate aviation needs that include most small and mid-size jet aircraft. While typically not as affluent as those utilizing larger business jets, this segment of general aviation will still generate notable visitor economic impacts.

 Small: Small business-class airports are defined as those with a runway length of at least 3,000 feet, but less than 4,200 feet. Facilities and services as these airports cater to small business aviation needs that typically include non-jet, piston and turboprop aircraft, though occasional jet operations may occur. These airports will still have

12 Partnership for New York City, pg 6 Grounded the High Cost of Air Traffic Congestion, February 2009.

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economic impacts associated with visitors using the airport, although values will be less than large and medium business-class airports. Many of the on-airport jobs at these airports accommodate recreational flying that often comprises a higher share of the traffic mix at small business-class airports.

Public-Use Heliports

For many years, helicopters have provided the quickest access to or from the Borough of Manhattan. These helicopters are often used for airport transportation to LaGuardia, JFK International and Newark Liberty International, where the helicopter trip time runs between 8 and 10 minutes, compared to an hour or more by car or mass transit. Helicopter service is also frequently used between Manhattan and nearby business destinations in upstate New York, New Jersey, and eastern Pennsylvania; leisure destinations served by helicopter from the Manhattan heliports include Atlantic City, NJ and eastern Long Island.

More than a dozen charter helicopter operators in the greater New York City metropolitan area specialize in helicopter charters from Manhattan to these surrounding areas or airports from any of the three heliports serving Manhattan. Companies providing these services employ approximately 160 people. Users of the helicopter service often conduct business as a day trip. Local restaurants likely benefit from the users of these services, as day trippers will typically eat at least one meal in the city.

The busiest of these heliports, the Downtown Manhattan Heliport, is in southern Manhattan, adjacent to the East River, just south of the Brooklyn Bridge. The Downtown Manhattan Heliport is popular for chartered helicopter operations because of its proximity to Wall Street. Facilities at this heliport consist of a terminal building and approximately 12 parking positions for helicopters. The location of the Downtown heliport, along with its facilities, make it popular with business executives and visiting dignitaries, up to and including Marine One, the transport of the President of the United States.

Two other heliports are in Manhattan, the West 30th Street Heliport and the East 34th Street Heliport. The West 30th Street Heliport is in midtown, along the Hudson River, and contains 11 helipad positions. This heliport was closed to sightseeing helicopter operations as of March 31, 2010, and is scheduled to close permanently on December 12, 2012. The other heliport, the East 34th Street, also is in midtown, along the East River, and provides five helipad positions. Hours of operation for the East 34th Street Heliport were recently reduced to daylight hours Monday through Friday.

In addition to the business and charter component of Manhattan helicopter operations, several companies specialize and offer sightseeing and tourist-oriented helicopter flights. These flights often include an aerial tour of Manhattan and popular sites such as Ellis Island and the Statue of Liberty. All sightseeing operations are now operated from the Downtown Manhattan Heliport.

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1.4 Air Cargo’s Role in New York’s Economy

The air cargo sector of the aviation industry is comprised of several components, including integrated express and charter freight, scheduled and small-parcel transport, and mail service. As the air cargo industry has evolved during the last 20 years, air cargo facilities and services have become an increasingly integral part of the development of airports in New York’s system of airports.

The FAA collects passenger and all-cargo data for a full calendar year to determine Airport Improvement Program (AIP) entitlement funding for the next full fiscal year (i.e., calendar year 2009 data determines Fiscal Year 2011 entitlement funds). Based on FAA’s database, approximately 3.4 percent of the all-cargo air freight in North America is handled at six qualifying airports in New York. In 2009, New York accommodated 2.13 million tons of landed air cargo weight. Of this total, JFK International had the majority of activity, with 1.6 million tons. Table 2 presents a summary of landed weight for each of the New York airports with significant amounts of all-cargo carrier activity.

Table 2 – Air Cargo Tonnage at New York Airports Airport w/All Cargo Activity 2009 2008 % Change JFK International 1,590,780 2,222,158 -28.40% Syracuse Hancock International 155,421 184,264 -15.70% Greater Rochester International 142,233 150,780 -5.70% Buffalo Niagara International 124,215 140,328 -11.50% Albany International 77,173 90,803 -15.00% Stewart International 44,628 60,845 -26.70%

Total 2,134,450 2,849,177 -25.0% Source: http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/

As shown, there was a significant decline of 25 percent in total air cargo for the state, while there was an overall 11 percent decline nationally. Although all of the NYS airports showed declines, the large negative impact of JFK International was responsible for much of this 25 percent decline. Thus, the effects of the current recession have impacted New York State air cargo activity more than in the rest of the nation.

Economic Impact of Air Cargo on New York State

In a research paper titled “Air Cargo: Engine for Economic Development”, the authors state that competitive advantage is fundamental to economic development. In this regard, air cargo enables nations (or states), regardless of location, to efficiently connect with distant markets and global supply chains in a speedy, reliable manner. “In the new fast-cycle logistics era, nations with good air cargo capability have competitive trade and production advantages

17 New York Statewide Airport Economic Impacts Study May 2011 over those without such capability.”13 This applies to individual communities and entire nations. Further, there is a well-established relationship between air cargo growth and growth in Gross Domestic Product (GDP). In North America, the r-squared correlation between air cargo and GDP growth is 0.973 (highly correlated) - supporting the notion that air cargo growth is a component part of growing economies.

In 2007, 3.15 million tons of freight was moved through the NYC region’s three principal airports, of which 900,000 were international shipments. There is no freight service at LaGuardia, but freight is carried in the cargo hold (belly) of many passenger flights. In fact cargo represents about 41 percent of air freight in New York.14 The most common types of goods shipped through New York’s airports are electronics, transportation equipment, manufactured products, machinery, and precision instruments as well as business documents. It is clear for regions like New York City with high concentrations of finance, insurance and real estate industries, that the ability of local airports to accommodate timely shipments of business documents is very important to regional economic health.15

For New York State, JFK International was the nation's busiest international air freight gateway by value of shipments in 2008. It was the third-busiest overall by value when compared with all U.S. air, land and sea freight gateways. By weight, JFK International ranked third among all air gateways, handling 10 percent of U.S. international air freight tonnage.16 JFK International was responsible for 75 percent of the state’s air cargo activity, while the other significant air cargo ports in New York State made up the remaining 25 percent of the total.

Jobs generated by the air cargo activity are significant. The most recent estimates from PANY&NJ showed air cargo economic impact at JFK International to be $5.211 billion in economic activity and 28,074 direct and indirect jobs. At LaGuardia, the totals were $34 million and 220 jobs. Air cargo activity at other airports in the state generated an additional $326 million in total economic activity and almost 3,000 total jobs. Table 3 presents the estimated impacts of New York State’s largest air cargo airport operations.

Table 3 - Economic Impacts of NYS Largest Air Cargo Airport Operations Annual Economic Commercial Service Airports Total Jobs Annual Earnings Activity Albany International 387 $17,519,400 $46,280,577 Buffalo Niagara International 766 $26,705,249 $74,491,621 Greater Rochester International 763 $31,461,035 $85,297,000 JFK International 28,074 $1,754,000,000 $5,211,000,000 LaGuardia 220 $15,000,000 $34,000,000 Stewart International 186 $11,894,831 $26,763,371

13 Source: Air Cargo: Engine for Economic Development, by Kasarda and Green, (The Center for Air Commerce, Kenan Institute of Private Enterprise, University of North Carolina), September, 2004. 14 Partnership for New York City, pg 23, Grounded the High Cost of Air Traffic Congestion, February 2009. 15 Freight volume and value figures from 2007 Provisional FAF Federal Highway Administration. 16 Source: Research and Innovative Technology Administration, Bureau of Transportation Statistics: http://www.bts.gov/publications/americas_freight_transportation_gateways/2009/highlights_of_top_25_freight_gate ways_by_shipment_value/jfk_international_airport/index.html.

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Table 3 - Economic Impacts of NYS Largest Air Cargo Airport Operations Annual Economic Commercial Service Airports Total Jobs Annual Earnings Activity Syracuse Hancock International 852 $33,287,797 $93,205,831 Subtotal Commercial Service 31,248 $1,889,868,312 $5,571,038,400 Source: JFK International and LaGuardia Impacts from PANY&NJ, Data for other airports updated from 2002 NYS Economic Impact study.

In 2009, the air cargo sector in New York State generated almost $5.6 billion in total economic activity, with $1.9 billion of that total being in payroll. Total direct and indirect jobs created after adding indirect impacts exceeded 31,200. It should be noted that JFK International accounted for 90 percent of the total jobs as indicated in Table 3.

Airport Ground Access Issues

Highway congestion around the Port Authority airports can affect economic growth. A recent Regional Plan Association study of airport congestion in the NYC area released in 2011 found that:

 Eighty-five percent of the daily passengers arrive at the airports in automobiles.17

 The addition of more air passengers using the highway system, competing with overall traffic growth, will translate into more congestion and delays, requiring more time to get to and from the airports.18

At JFK the highway network that delivers passengers, employees and cargo to the airport consists of four major access highways – the Van Wyck Expressway (VWE), which also handles most the cargo trips to and from the airport, the Belt Parkway from the west and east, and the Nassau Expressway. The VWE and the Belt Parkway are often congested and the Nassau Expressway handles only a small fraction of JFK Traffic.19

The Van Wyck Expressway is a major access highway to JFK; it is a congested six-lane roadway, with closely spaced exits and entrances and narrow shoulders. Traffic movement is further complicated by the merging of traffic where the Grand Central Parkway and the Jackie Robinson Parkway join it. The highway is flanked by fully developed land uses, much of it residential, and by service roads, making widening difficult. The VWE is also burdened by a high share of truck traffic, since alternate highway routes such as the Grand Central, Belt Parkway, and Southern State parkways all do not permit commercial traffic and truck routing via major arterial streets is restricted. The trucks destined for JFK are forced to use the VWE, adding time penalties to air-cargo traffic.20

17 Regional Plan Association, Chapter 11 pg 2. 18 Ibid, Chapter 11 pg 1. 19 Ibid, Chapter 11 pg 6. 20 Ibid, Chapter 11 pg 11.

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The city and state are taking steps to address some of the more severe bottlenecks on the Van Wyck and surrounding expressways, but none of these projects adds a significant amount of new highway capacity.21

LGA’s highway access is primarily by the crowded Grand Central Parkway, although a network of nearby arterial roads offers options to bypass some of the congestion.

The New York Metropolitan Transportation council has modeled how much traffic will increase on the region’s roadways by 2035. Segments of the roadways would experience severe levels of congestion, which will result in increased delays and greater travel times. Almost the entire roadway network around JFK and LGA would be affected. In contrast, most of the highway network serving Newark (EWR) would not experience severe levels of congestion by 150 MAP [Millions of Annual Passengers] with the exception of a few segments on I-78 and I- 98.22

Currently, NYSDOT is investing around $146 million to improve the safety and traffic flow at the Kew Gardens Interchange on the Van Wyck. This project began in 2010 and should be completed by 2015; it involves the construction of a new southbound travel lane for the Van Wyck Expressway, improving the connectivity between the Expressway, Jackie Robinson Expressway, and Grand Central Parkway.23

In 2009 the New York City Department of Transportation (NYCDOT) initiated the first phase of a project to reconstruct seven bridges on the Belt Parkway. Clearance will be increased to 14 feet 6 inches, which will allow the roadway to accommodate most commercial vehicles.24 As stated earlier the Belt Parkway currently prohibits commercial vehicles, limiting trucks to using the VWE, a chronically congested corridor.

NYSDOT is examining ways to improve local circulation around the airport as part of its Southeast Queens Transportation Study, which includes both the Nassau Expressway and the Cross Bay Boulevard.25 NYSDOT has also been studying various strategies to manage traffic on major highways in arterials in the five boroughs of New York City and Nassau and Westchester counties as part of a multi-year Managed-Use Lane study.

Physical improvements to the Van Wyck like the Kew Gardens Interchange reconstruction and the planned/proposed measures to relieve congestion on the Belt Parkway and Nassau Expressway should help conditions on the VWE. Additional relief should also be possible if commercial traffic were allowed on the Belt Parkway. However trucks only make up at most 11 percent of the traffic on the Van Wyck.

21 Regional Plan Association, Chapter 11 pg 15. 22 Ibid, Chapter 11 pg 8. 23 https://www.nysdot.gov/news/press-release/2010/2010-8-181. 24 http://www.nyc.gov/html/dot/html/bridges/reconstructin.shtml#7bridges. 25 NYSDOT – Region 11 Office, Southeast Queens Transportation Study Presentation, Fall 2010.

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1.5 Strategies for Revenue Generation and Increased Airport Economic Output

There are a variety of ways for airports in New York State to generate more revenues. Two primary means of achieving higher revenues involve either an increase in aviation activity or an increase in the lease revenue derived from tenants. For scheduled commercial service airports, several for-profit strategies are more common than at general aviation airports. These are built upon working with carriers to capture higher levels of commercial passenger activity as well as a market-based concessions and retailing strategy. For airports with declining activity, creative methods of leasing more airport property for aviation and non-aviation uses have been developed. In this regard, development of excess land not needed for aeronautical uses provides new and long-term revenue streams.

For all airports, this study has identified a significant segment of revenue generation and increased economic output in the form of aviation industry firms, such as manufacturers or maintenance/repair/overhaul (MRO) shops that work on large aircraft. For example, Griffiss International Airport had an MRO on the field (Empire Aero Center), which at its height of production generated a total of 900 direct and indirect jobs and $170 million in total economic activity. Although that MRO recently closed, the facility was quickly purchased by a Canadian- owned MRO that will retain some employees and grow employment to 275 in the first five years. Even more impressive, the Sikorsky helicopter plant at Elmira/Corning Regional Airport produced an output in 2009 of $1.3 billion in economic activity, while supporting more than 1,250 direct and indirect jobs. Keeping these jobs in New York and attracting more aviation manufacturers add economic development that wouldn’t have come to the state through increased air traffic.

Other strategies for both airline airports and general aviation airports are discussed in this section as follows:

 Aviation Market Perspectives  Airline Airports  General Aviation Airports  Summary of Strategies

Aviation Market Perspectives

To understand how different revenue generation strategies apply to airline and general aviation airports, a look at some of the major trends in aviation is warranted. This section presents a snapshot of these trends.

According to Forecast Highlights, FAA Aerospace Forecasts for Fiscal Years 2010 – 2030 (Highlights) aviation is expected to continue growing in the long term, despite current global economic conditions. This is because the number of passengers traveling is expected to increase, demonstrating the value of air transportation to the public. However, there has been a slowdown in growth, and the FAA is now predicting one billion passengers to be flown in 2023, pushed back from last year’s 2021 forecast. The most significant factor preventing recovery to prior forecast levels is the current recession. This recession led to an erosion of

21 New York Statewide Airport Economic Impacts Study May 2011 wealth, double-digit unemployment, declining corporate travel budgets and lower consumption, all of which contributed to a softened demand for air travel.

On the general aviation side, near-term prospects also have been dampened by the global economic recession. However, demand is anticipated to return as the active fleet continues to transition away from smaller aircraft and toward more sophisticated turboprop and jet aircraft serving business and corporate needs. Thus, revenue generation for these airports must be more responsive to changing domestic and international economic markets.

Highlights notes that activity dropped in all user categories, resulting in a decline in total operations at FAA and contract towers of more than 10 percent; this is the lowest activity level since 1982. Therefore, revenue generation activities at airports would need to focus on increasing operations by servicing both the provider of the service (corporate flight departments, business owners who pilot their own aircraft and/or other charter and air taxi operators that service businesses or individuals), and business travelers themselves who rely on corporate aircraft.

Airline Airports

Airline airports that generate most of their income from commercial airline service and related concessions are subject to the airline traffic cycles. When activity is high, airport revenues benefit through increased parking fees, terminal concessions and airline rentals and landing fees. Conversely, reductions in airline service, consolidations of carriers and an overall poor national economy can hurt revenue generating capabilities at airline airports in New York State.

Most large airline airports have staff people who market the facility, manage leased properties, push for new or improved airline service, negotiate on rates and charges, and so on. These airports have already considered lobbying airlines to provide more and better service. They have already worked with the conversion of non-aeronautical land to revenue producing property. They have already considered the impacts of rate increases for auto parking, terminal concessions and airline rents. They market their airports using conventional and social media.

In New York State, there is a demonstrated connection between enplanements and economic activity. This connection can be shown by comparing enplanements and total output, presented in Table 1 (Page 5) and Table 11 (Page 51), respectively. In this regard, the downstate commercial service airports (JFK International, LaGuardia, Long Island MacArthur and Westchester County) had the following averages in 2009:

 $1,215 of Economic Activity Generated per Enplanement (includes all direct and indirect impacts generated at airline airports)  107 Enplanements per Job (includes indirect jobs)

For the remaining upstate commercial service airports, the following averages held in 2009:

 $840 of Economic Activity Generated per Enplanement (includes all direct and indirect impacts generated at airline airports)

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 132 Enplanements per Job (includes indirect jobs)

Because of these relationships, attracting more commercial aviation activity through tourism or business activities can have a significant economic impact on the state.

One other area of airline impact that could be considered in this analysis is that of air cargo. In this regard, the accommodation and handling of air cargo can generate a significant economic impact on the airport and community. In a previous section, the statewide impacts of air cargo were documented to be almost $8.0 billion in total economic activity, with $2.7 billion of that total being in payroll. Total jobs generated by air cargo activity, after adding indirect impacts, was nearly 49,800. Although JFK International accounted for 91 percent of the total jobs, air cargo could add jobs and economic activity at other airports if they increased their air cargo markets. The relationships between jobs and economic activity and enplaned air cargo are as follows:

 $2,610 of Economic Activity per Enplaned Ton of Air Cargo (includes all direct and indirect impacts generated at airports with significant air cargo activity)  68 Tons of Air Cargo per Job (includes indirect jobs)

The above relationships emphasize the impacts of airline activities. However, there are few recommendations that could be made in this study that are not already being implemented at the larger airline airports in New York State. As such, the focus of recommendations for increasing revenues and economic activity at airports in the state is on the general aviation airport population.

Strategy Prioritization

While the revenue generation strategies summarized for airline airports in the state represent a range of options, they are not universally appropriate or achievable in every case. This is due to the combination of local market conditions and limits of what airport facility infrastructure can support. Therefore, pursuit of these strategies must be prioritized based on a sound understanding of what is possible in short, mid, and long term periods.

Guidance for the prioritization of revenue enhancement strategies at business-class airports can be found in a report published by the Airport Cooperative Research Program (ARCP), entitled ACRP Synthesis 19, Airport Revenue Diversification (Synthesis). In this report, research revenues were categorized as follows:

 Core Aeronautical: Those activities that take place on the airfield or in the terminal.  Passenger Dependent: Activities such as auto parking; food and beverage; retail concessions; parking and rental cars, taxis or other ground transportation; and lodging.  Ancillary Development: Non-passenger dependent activities such as on-site commercial/retail/industrial development, agricultural or recreational uses and utilities.

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From these general categories, Synthesis presented the following breakdown of funding sources for small and non-hub airport operations.

Ancillary Development, 14%

Core Aeronautical, Passenger 46% Dependent, 40%

Figure 1 – Funding Sources for Small and Non-Hub Airport Operations Adapted from Figure 11, Airport operating revenue by source for small and non-hub airports; Source: FAA, AAS-400: CATS: Report 127.

From these percentages, it can be shown that the core aeronautical and passenger dependent activities will provide the greatest return on the investment of time and money, while ancillary development activities are just that: ancillary. They can add to the bottom line, but efforts to develop non-aeronautical revenue sources will be unlikely to yield significant revenue support of the airport’s overall operation.

General Aviation Airports

Generating revenue at general aviation airports today and in the future will depend substantially upon operating some portions of GA airports as for-profit businesses rather than as strict public utilities. This shift must be balanced with the need to maintain airport infrastructure assets. In this regard, there typically are many improvements on Airport Capital Improvement Plans, whether they are related to compliance with FAA standards, state requirements or local wish lists that sponsors believe to be necessary prior to realizing significant revenue gains. However, airports must weigh their customers’ needs against the potential returns on their investments. This requires knowledge of an airport’s competitive position in its market and whether or not it can charge enough to repay its investment. Given this economic backdrop, several revenue generation strategies for GA airports are described:

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Market Expansion Strategies

 Service Improvements: To grow revenues at GA airports, many airports examine existing terminal services, airport amenities and activities that accommodate users’ needs. In cases where runway length will support it, airports desire to attract more corporate and business aviation. In this regard, it is important for business users to have all-weather operational capabilities (precision instrument approaches), ready access to business centers (car rental or courtesy car), business meeting locations on the airport, along with food/catering services, professional aviation services and tasteful aesthetics. GA airports that make strides toward improving customer service and amenities are in a stronger position to compete for the lucrative corporate and business air travelers.

● Partnerships with Private Service Providers: At GA airports, these public/private partnerships can take many forms and should be based on a sound legal framework. GA airport sponsors often partner with the following private operators to serve users and to meet their revenue goals:

Partnerships with Private Service Providers Private Operator Purpose

Fixed Base Operator

(FBO)  Fueling, aircraft parking, hangar rental, maintenance, line services, terminal services Specialty Aviation Service  Single or limited service (other than core FBO services) such Organization as avionics, painting/upholstery, air ambulance, banner towing, (SASO) skydiving, etc.

Non-Aeronautical  Service to segments of economy not directly related to Business aeronautical activities on the airport.

Partnerships between the airport sponsor and these or other private businesses are critical to attract new activity, especially corporate use, to the airport. Additionally, the business and corporate aircraft operating today require increasingly sophisticated technicians, parts and services to support higher frequency of use. Therefore, growth in corporate aviation is often linked to a full- service FBO and complimentary SASOs that offer the services needed.

Finally, non-aeronautical business activities offer great upside potential for creating long-term and diversified revenue streams at a GA airport and are not directly related to fluctuations in the aviation market. Therefore, fuel cost spikes or other changes that affect aviation do not directly affect such businesses and their ability to pay rents consistently.

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● Partnerships with Other Public Agencies and Institutions: In addition to partnerships with private interests, airports are also great locations for partnerships with other public agencies and institutions. GA airports often partner with the following agency or institutional operators:

Partnerships with Other Public Agencies and Institutions Public Purpose Agency/Institution

Universities/Community

Colleges  Satellite campus locations offering special programs or unique schedules, in addition to aviation-related course offerings, such as: airframe/powerplant technical certificates, pilot training, airport business degrees, etc. Non-Profit Groups  Groups such as aerospace or other local historical society museums, Civil Air Patrol, pilot associations, etc. can sometimes attract a range of interests from those not actively involved at the airport, building public support. National Guard and U.S. Military  Various U.S. Department of Defense missions

Partnerships with local universities and community colleges offer opportunities for revenue from rental payments and provide increased exposure for the airport to prospective users. This is especially the case for students in aeronautical programs, such as flight training, aircraft maintenance programs, air traffic control programs or other aviation-related courses. Such programs, if offered through a partnership with an FBO or SASO where students can acquire hands-on training, provide a means for offering local jobs to retain the next generation of trained aviators.

In addition, partnerships with the National Guard or U.S. Military are significantly valuable assets at GA airports and their host communities in terms of jobs and secondary economic impacts, as incomes are expended in the local economy. Such is the case at airports such as Schenectady County (680 full-time and 1,100-1,300 part-time jobs), Stewart International (756 full-time and 1,314 part-time jobs), Francis S. Gabreski (1,061 full- and part-time jobs), Niagara Falls International (1,782 full-time and 2,413 part-time jobs), and others in New York.

● Incentives for Corporate Aviation Activity: Corporate aviation generates a considerable share of revenues at GA airports, relative to smaller GA. As such, attracting more business and corporate aviation to GA airports is key to increasing airport revenues and generating jobs. For example, one corporate jet based at an airport can add up to 5 direct personnel and require between 1,000 and 1,500 gallons of jet fuel per week26. In addition to the fuel flowage fees, corporate

26 Source: Airport Survey Data, R.A. Wiedemann & Associates, Inc., 2009.

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clients lease land for hangar space and pay fees for use of other airport services. When the employment impacts and the hangar lease aspects of the operation are included, there is a significant potential revenue impact of attracting corporate aircraft to an airport. Based on the aircraft type, usage and the sophistication of corporate flight departments’ operations, direct revenue impacts have been found to provide up to five on-airport jobs and approximately $1 million in annual economic activity27.

● Retention of Existing Tenants and Transient Clients: Since most GA airport leases are long term, some sponsors overlook the value of maintaining good relationships with existing tenants. These tenants, whether large or small, provide jobs or support other aviation businesses on the airport. Often, the best way to retain existing clients is to maintain regular communications, transparency regarding rates and charges and understanding of a client’s concept of value.

● Airport Branding, Marketing, and Promotion: To create a platform for building a GA airport business, sponsors can consider branding, marketing and promoting the airport. In this regard, the branding process seeks to identify and to market the facility and its unique qualities to aircraft owners, businesses and general flying public. This typically includes targeted marketing, a slight or wholesale name change, new logos, website and advertising to create and to launch the airport’s new identity. Once the branding process is complete, and marketing and promotional materials are circulated to targeted prospects, the airport must deliver on its brand promise, whatever niche the facility is determined to best serve in the market. Essentially, this entails operating an airport as a for-profit business enterprise, with a proactive and daily focus on marketing the airport.

● Rates and Charges/Lease Agreement Structure: The rates and charges schedule at GA airports typically includes fees such as: rent for hangars, apron and other building leases; facility usage such as landing fees, parking/tie-down fees or overnight hangar space; and, FBO and/or self-service fuel flowage fees, among other items. It is important for the sponsors or FBO to review and to update these fees regularly to ensure that they have not priced their services above or below the market threshold for aviation services. Lease agreements support and reinforce the application of the rates and charges schedule at the airport.

● Development of Non-Aeronautical Real Estate: Another strategy for generating new revenue streams at GA airports is the development of excess real estate not needed for aeronautical purposes. The most significant value of this development to the airport sponsor is that in most cases, such development is not related to airline or GA industries. Thus, fluctuations in aviation markets, whether due to fuel price spikes, changes with legacy carriers or concerns, will not directly affect activities conducted by business on non-aeronautical land. In this way, GA airports can build into their revenue model some insulation from

27 Source: Airport Survey Data, R.A. Wiedemann & Associates, Inc., 2009.

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changes in the aviation market that could reduce revenues or make short- or long- term operations tenuous.

It is important to note that development of non-aeronautical real estate can occur via ground leases to developers, builders or business owners, or through outright sale of land to private interests. However, selling land not required for aeronautical purposes at a GA airport must meet stringent FAA standards and garner the federal agency’s approval, in addition to matching uses identified for this land in FAA-approved Airport Master Plan documents.

Finally, the construction of airside and landside improvements can also prove a viable means to generate revenue at GA airports. However, it is important to note that the construction of airside or landside improvements alone, following the notion that “if we build it and they will come,” is not recommended. Rather, taking on new debt for such capital improvements can prove profitable if pursued as part of a comprehensive growth strategy. In most cases, it is wise to secure pre-construction commitments and cash deposits prior to embarking on these projects.

● Airside Infrastructure Improvements: Runway length at GA airports is the primary factor that controls an airport’s ability to accommodate aircraft. As such, many GA airports are constantly seeking greater primary runway length in order to attract larger corporate aircraft users. This is a viable option for generating increased revenues at GA airports; however, simply having a runway that can accommodate corporate jet aircraft will not attract such operators. The local business environment must be healthy enough to attract these corporate and business users regularly.

● Landside Facility Improvements: At GA airports, development of landside facilities, such as hangars for aircraft storage and terminal buildings offer significant upside potential for generating revenue. However, as described for airside infrastructure improvements above, speculative landside building projects will only generate revenue if the market for such space is healthy. Therefore, a thorough understanding of a GA airport’s service area should be pursued prior to construction of hangars or expansion of a terminal building by a sponsor. In this regard, pre-construction commitments from tenants should be secured prior to finalizing public funding/financing of such projects to ensure that repayment schedules can be met.

● Fuel: Traditionally, aircraft fueling and additional services have been dependent on the airport having a staffed FBO; this was fiscally challenging for lower- activity airports. A popular trend over the past decade has been the installation of self-service fueling. These systems often allow for fuel purchases 24 hours per day when a credit card is used. So while the number of airports providing fuel has not increased significantly since the last impacts of aviation study, the convenience and accessibility of fuel for general aviation users has increased. Quick and convenient fueling systems can make an airport more appealing to users, resulting in higher activity levels. Increased fuel sales generate more money

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for the airport and FBO that often produces investment in airport facilities to support the additional activity.

Applying the above revenue development strategies to the airport business classifications (defined in Section 1.3), a prioritization can be established for each general aviation airport type as described in Table 4.

Table 4 – Revenue Generation Strategy Prioritization Business Classification Revenue Generation Priorities

Small Business-Class The focus for Small Business-Class airports should be attention to customer Airports service, maintaining existing activity as a baseline, providing a complement of basic services. The airport should strive to be an active economic Characteristics: development partner in the community.

 Runway Length: Top Priorities: > 3,000 feet < 4,200 feet.  Retention of Existing Tenants and Transient Clients  Facilities/Services: Cater to  Terminal Services and Amenities: non-jet, piston and turboprop o Minimum Ground Support: 24-hour access to fuel via credit aircraft, with occasional jet. card  On-Airport Businesses: o Ground Transportation: Courtesy car and on or off-site Primarily accommodate rental car recreational flying. o Terminal Services: 24-hour access to waiting area with telephone, restrooms, vending. o Amenities: Access to local catering services and lodging options  Rates and Charges/Lease Agreement Structure  Partnerships with Other Public Agencies and Institutions  Branding, Marketing, Promotion

In Response to Market Opportunities:  Partnerships with Private Enterprise  Attraction and Recruitment of Corporate/Business Operators  Development of Non-Aeronautical Real Estate

When Funding is Identified:  Airside Infrastructure Improvements  Landside Facility Improvements  Energy Saving – Green Technology Improvements

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Table 4 – Revenue Generation Strategy Prioritization Business Classification Revenue Generation Priorities

Medium Business-Class The focus for Medium Business-Class airports should be toward building and Airports maintaining the airport’s brand and market position, attracting and retaining business clientele and tenants that have an established user base, evolving Characteristics: services to meet changing user needs and expanding its role as a local partner with public and private interests.  Runway Length: > 4,200 feet < 5,000 feet. Top Priorities:  Facilities/Services: Cater to  Attraction and Recruitment of Corporate/Business Operators mid-size corporate aviation  Partnerships with Private Enterprise needs which include most  Branding, Marketing, Promotion small and mid-size jet aircraft  Terminal Services and Amenities:  On-Airport Businesses: o Enhanced Ground Support: Full-service FBO and 24-hour Accommodate mix of fueling corporate and recreational o Ground Transportation: Courtesy car(s) and on-site rental needs. car o Terminal Services: Executive meeting room(s), Internet access, 24-hour access to waiting area with telephone, restrooms, vending. o Amenities: On-site food service (café/restaurant) with catering, on-call shuttle or limousine service to local lodging.

Organized and Proactive Business Development Functions:  Retention of Existing Tenants and Transient Clients  Development of Non-Aeronautical Real Estate  Partnerships with Other Public Agencies and Institutions  Rates and Charges/Lease Agreement Structure

A Funded Capital Improvement Plan (CIP) Program in Pursuit of Attractive Facilities:  Airside Infrastructure Improvements  Landside Facility Improvements  Energy Saving – Green Technology Improvements

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Table 4 – Revenue Generation Strategy Prioritization Business Classification Revenue Generation Priorities

Large Business-Class The focus for Large Business-Class airports, where passenger-dependent and Airports core aeronautical revenues are healthy, should be expanding the airport’s market position to capture a larger share of local business travelers using Characteristics: scheduled commercial service at competing facilities, partnering with local economic development agencies to develop land for non-aviation uses in  Runway Length: commercial/industrial parks and building top-quality airside and landside > 5,000 feet facilities that can attract the most sophisticated aircraft and corporate  Facilities/Services: Cater to operators. large corporations and can accommodate majority of Top Priorities: corporate jet fleet.  Branding, Marketing, Promotion  On-Airport Businesses:  Attraction and Recruitment of Corporate/Business Operators Accommodate local corporate  Partnerships with Private Enterprise needs and broader market.  Terminal Services and Amenities: o Top-Quality Ground Support: Multiple FBOs, SASOs, and fueling options o Ground Transportation: Multiple on-site rental car agencies, executive shuttle or limousine services o Terminal Services: Executive meeting rooms and/or business center, Wi-Fi Internet access, concierge services to ensure passenger transitions. o Amenities: On-site restaurant with catering, on-site or adjacent lodging.

Fully Staffed Business Development Function, Chamber Partnership, Consultant or Within Airport Department:  Rates and Charges/Lease Agreement Structure  Development of Non-Aeronautical Real Estate  Retention of Existing Tenants and Transient Clients  Partnerships with Other Public Agencies and Institutions

Fully-Funded CIP Program in Pursuit of Top-Quality Facilities:  Airside Infrastructure Improvements  Landside Facility Improvements  Energy Saving – Green Technology Improvements

The priorities of revenue enhancement strategies are presented here as general guidance. Importantly, the success of revenue enhancement activities will be based on the airport’s facilities, local market conditions and existing levels of business and user activities.

Alternative Sources for Revenue Generation

A number of alternative sources for revenue diversification were cited by the ACRP Synthesis. These are summarized briefly, as follows:

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 Temporary Uses and Special Events: Given some airports’ vast supply of land, parking and building facilities, a variety of temporary uses can return revenues for operations. Local governments can use airports as staging areas to fight fires, respond to emergencies, test equipment and aircraft and carry out training sessions. Additionally, airports have served as sets for television programs and movies. Airports can also lease land for temporary storage of vehicles and equipment or event parking. Open houses, air shows, rodeos, fundraisers and fairs are all special events that take place at many general aviation and some commercial service airports.

 Agriculture: Many airports lease out land for agricultural uses. Leased on a per-acre basis to local farmers, low-height crops, such as wheat, sunflowers and corn, can produce revenues that are then shared between the farm operator and the airport based on terms negotiated in a lease agreement.

 Renewable Energy: While not a revenue-generation source per se, the development of renewable energy systems offers airport sponsors the ability to reduce energy costs over the long term. Projects such as low-profile solar arrays, wind turbines and geothermal heating/cooling systems can also be funded in part by state and/or federal grants; these grants can reduce or even eliminate installation costs, thus helping an airport’s bottom line.

 Utility Services: As the ACRP Synthesis notes, the development of utility systems and services on airports holds promise for generating electricity or providing water and sewer services for airport tenants and the surrounding areas. Many involve long- term purchase agreements at favorable rates and revenue-generation potential, as utilities can be purchased wholesale from providers and re-sold to airport tenants.

Highest Output/Employment Generators at NY Airports

From the results of the study, presented later in this technical report, it was shown that the highest output for New York airports was aviation manufacturing. In this regard, the output at Elmira/Corning was $1.3 billion in economic activity and 1,250 direct and indirect employees. Following this was the large MRO facility at Griffiss, which produced $170 million in economic activity with 900 direct and indirect jobs. Third in the overall ranking of output generators was the attraction of corporate jets that created five direct jobs and more than $1 million in annual spending per jet aircraft. The fourth item was airline passenger enplanements, which generated between $840 and $1,215 of total economic activity per passenger based on the level of service and market. It took between 107 and 132 passengers to generate one job (includes direct and indirect jobs) in 2009. The fifth item was enplaned air cargo tonnage. In this regard, each enplaned ton of cargo generated $2,610 of economic activity and one job (includes direct and indirect jobs) was produced for every 68 tons of enplaned cargo.

Attracting more of these aviation industries can be a strategy for increasing or saving New York State jobs.

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1.6 NextGen Implementation and Anticipated Benefits in New York

The Federal Aviation Administration is developing the Next Generation Air Transportation System (NextGen) to transform the Air Traffic Control (ATC) system that utilizes technology dating back to the 1950s. The NextGen platform is due for implementation in various stages with the goal of having a fully functional system by 2018. Current FAA estimates include a 21 percent reduction in flight delays and cumulative savings of 1.4 billion gallons of fuel and $22 billion in savings to the traveling public nationwide.

The foundation of the NextGen ATC system is the changeover from ground-based radar and navigational aids to a system utilizing satellite-based GPS technology. Currently, all aircraft must rely on and navigate via ground-based systems; satellite-based air traffic control and improved technology in the cockpit will allow for more direct flying. This new satellite-based technology is referred to as Automatic Dependant Surveillance-Broadcast (ADS-B); the ADS-B system relays surveillance data from the aircraft via Mode-S transponders to satellites rather than using ground-based radar systems. Unlike the current air traffic control system, the ADS-B will be supplemented by Traffic Information Services Broadcast (TIS-B) that will increase situational awareness in the cockpit by providing pilots with a visual depiction of all aircraft known to the ATC system. This system will provide pilots with critical information about nearby aircraft that will enhance safety when flying in congested airspace or in close proximity to other aircraft.

NextGen technology also will provide for enhanced communication between controllers and aircraft utilizing a data link program. With this program, it will be possible for properly equipped aircraft to receive various instructions, such as clearance, via the data link as opposed to voice instructions over radio transmissions. The data link will enable a Flight Information Services-Broadcast (FIS-B) that will include items such as weather text, Notices to Airmen (NOTAMs), Automated Terminal Information Service (ATIS) and similar information. This system will enhance the efficiency of air traffic control personnel while providing precise information between both the pilots and controllers, reducing the opportunity for error due to frequency congestion or misinterpretation of verbal instructions or important flight data. Access to fast, accurate air traffic data and instructions is especially important for congested airports such as those in the New York City Metropolitan area.

With the variety of user interfaces that exist across the air traffic system today, NextGen is proposing System Wide Information Management (SWIM) that will reduce data redundancy and better facilitate multiuser information sharing. Items such as the National Airspace System (NAS) Voice Switch, which currently contains 17 different systems in place, will also be consolidated to a single system.

The combination of the SWIM and data link technology will allow for enhanced weather information to be shared between controllers and pilots/aircraft. The Next Generation Network Enabled Weather (NNEW) will provide shared and current weather resources to users system wide including controllers, pilots and dispatchers, allowing for enhanced safety and timely decision making regarding weather.

33 New York Statewide Airport Economic Impacts Study May 2011

When fully integrated, NextGen will provide numerous efficiencies over the current air traffic system. Faster and more precise communication will enhance safety; satellite navigation and TIS-B will create the ability to fly more direct flight paths that will reduce fuel burn and carbon emissions; and reduced separation will increase system capacity. Other benefits include:

 Reduced Instrument Flight Rules (IFR) spacing on approach  Improved ATC services in areas of little/no radar coverage (primarily over water)  Closer spacing for parallel/simultaneous IFR approaches  Reduced runway incursion risk  Improved visual acquisition of traffic (primarily general aviation)

The increase in the efficiency of air traffic workload and creation of more direct flight routes are expected to yield substantial cost savings to the aviation industry from reduced delays and fuel savings ($22 billion28). Employment levels are not expected to change significantly since the local airport control towers are not affected; the increased technology will assist the projected shortage in air traffic controllers at air route traffic control centers.

While it is expected that the ability to fly more direct paths will save millions of gallons of fuel throughout the national aviation system, it is not anticipated that a drop in fuel sales, primarily Jet-A, will be noticed on the local level, but rather in cumulative annual savings by aircraft operators. By reducing cost and enhancing efficiency, the airline industry will be better equipped to deal with fuel costs and changing economic conditions. In addition, the reduction of air traffic delays will benefit passengers across the system economically by regaining time that was once lost.

Although the NextGen technology is being gradually implemented over the next decade, PANY&NJ is seeking ways in which this technology can enhance activity at New York City area airports. While no specific changes have been made yet, the proposed uses of NextGen technology includes “deconflicting” the major airports (Newark, LaGuardia and JFK) to allow each airport to operate more independently than they do today. NextGen-related improvements will also allow for the creation of additional routes into/out of the New York airspace that will have the ability to increase airspace capacity by up to 15 percent.

Airspace Redesign

Separate but parallel to the NextGen program is a complete redesign of the airspace over New York City, New Jersey and Philadelphia. This area of airspace covers portions of five states and services approximately 70 percent of U.S. flights on a daily basis. The airspace redesign is intended to address the severe airspace congestion issues in the New York City area, as well as the New Jersey and Philadelphia areas. The redesign is under way, starting in 2007 following the necessary environmental approvals. The completed program is targeted for 2012.

28 Source: FAA NextGen Data Communications, Frequently Asked Questions, http://www.faa.gov/about/office_org/headquarters_offices/ato/service_units/techops/atc_comms_services/datacomm /documentation/media/brochures/90818_DataComm_11x17_PRINT.pdf.

34 New York Statewide Airport Economic Impacts Study May 2011

The first stage of the program in 2007 included a limited trial of departure dispersal headings at Newark Liberty International and at Philadelphia International. This program was found to produce an increase in the number of departures per hour. With airspace redesign and changes, this program is expected to be more widely implemented and expanded to LaGuardia and JFK International. The second stage of the program, under way as of 2009, will expand the Philadelphia Terminal Area Airspace and consolidate New York Center and the New York Terminal Radar Approach Control (TRACON) facility. Future stages will provide additional arrival and departure routes to/from the New York City area.

When completed, the redesign will become the foundation so that all of the benefits of NextGen can be fully achieved in the New York City area. Reduced separation and closer IFR spacing will improve arrival flows into the congested airports, producing fewer delays and additional cost savings. In addition to JFK and LaGuardia, this program will improve existing air traffic constraints at Westchester County and Republic airports, which are also located in the New York City metropolitan area. Outside of the New York City area, Buffalo Niagara International, Greater Rochester International, Syracuse Hancock International, Albany International and Ithaca Tompkins Regional have flights to LaGuardia and/or JFK International and will experience fewer delays to New York City and reduced cost and inconvenience resulting from these delays. The airspace redesign program is expected to generate savings across the New York, New Jersey and Philadelphia areas in addition to the $22 billion in savings projected under the NextGen Program.

35 New York Statewide Airport Economic Impacts Study May 2011

2. STATEWIDE ECONOMIC IMPACT OF AVIATION

N EXTENSIVE NETWORK OF PUBLIC-USE AIRPORTS IS available to accommodate New York's air travel needs. Figure 2 shows the 85 airport locations throughout the state that Awere analyzed as part of this study. These airports contribute jobs, payroll and output to the economy. Many of the airports have on-airport businesses that are engaged in aviation- related activity whose impacts were included in this analysis. Impacts from air traveler visitors using general aviation and commercial service aircraft were also assessed.

Four components of economic impact were measured for the calendar year 2009 related to aviation’s contribution to New York State’s economy:

 Jobs: The number of jobs associated with each airport is based on full-time equivalent positions.  Income: Income is the sum of annual salaries paid to workers. It is a component of overall output.  Output (Economic Activity): Output or economic activity for on-airport businesses is typically assumed to be the sum of annual gross expenditures associated with each airport.  State and Local Taxes: These tax revenues are estimated as the result of aviation activity in New York State.

Payroll and output cannot be combined because elements of economic benefit related to payroll are also contained in the output estimate. Each of the four impact components (employment, payroll, output and taxes) stands alone as a measure of an airport’s or the airport system’s total economic impact.

2.1 Job Impacts

This study’s findings indicate that airports and the aviation industry in New York are an important source of jobs. Jobs, as defined in this analysis, are based on “full-time equivalent” (FTE) estimates where, except for military installations, two part-time jobs are generally assumed to equal one full-time job. At military installations, three part-time jobs were assumed to equal one full-time job, due to the predominant nature of weekend activity for part-time reservists. Employment impacts are calculated for both on-airport businesses and off-airport visitors.

Direct Airport Employment

Table 5 lists the total number of full-time equivalent jobs generated based on surveys of each airport. In addition, Table 5 lists the number of direct jobs, which are those of the full-time equivalent workers plus on-airport jobs generated by capital spending, plus jobs related to air traveler spending off the airport. In the case of on-airport military units at public airports, the full- and part-time military personnel and the military-related civilian employees were included.

36 New York Statewide Airport Economic Impacts Study May 2011

Figure 2 – Study Airports

37 New York Statewide Airport Economic Impacts Study May 2011

Table 5 - On Airport Employment Impacts 2009 Full Time 2009 Direct Airport Equivalent (FTE) Employment Commercial Service Airports Adirondack Regional 31 56 Albany International 1,709 6,591 Buffalo Niagara International 1,737 12,827 Chautauqua County –Jamestown 89 228 Elmira/Corning Regional 1,501 1,669 Greater Binghamton 201 346 Greater Rochester International 1,922 7,304 Ithaca Tompkins Regional 204 364 JFK International 69,945 132,610 LaGuardia Airport 17,830 55,142 Long Island MacArthur 1,194 4,870 Massena International 21 39 Ogdensburg International 15 34 Plattsburgh International 90 266 Stewart International 3,125 3,636 Syracuse Hancock International N/A 5,630 Watertown International 37 67 Westchester County 1,313 4,946 Subtotal CS Airports 100,964 236,625

General Aviation Airports Akron 3 7 Brookhaven Calabro 48 71 Buffalo Lancaster Regional 4 16 Camillus 2 3 Canandaigua 21 29 Cattaraugus County-Olean 3 10 Chautauqua County-Dunkirk 15 34 Columbia County 42 57 Corning-Painted Post 4 18 Cortland County 12 17 Dansville Municipal 4 14 Dutchess County 124 151 East Hampton 43 65 Finger Lakes Regional 9 15 Floyd Bennett Memorial 19 37

38 New York Statewide Airport Economic Impacts Study May 2011

Table 5 - On Airport Employment Impacts 2009 Full Time 2009 Direct Airport Equivalent (FTE) Employment Francis S. Gabreski* 1,114 1,146 Fulton County 6 7 Genesee County 38 52 Great Valley 1 2 Griffiss International 320 315 Hamilton Municipal 14 32 Hornell Municipal 2 5 Joseph Y. Resnick 1 9 Kingston-Ulster 6 10 Lake Placid 16 27 Ledgedale Airpark 26 37 Lt. Warren Eaton 6 8 Malone-Dufort 1 5 Montauk 1 5 Niagara Falls International* 1,130 1,241 Oneonta Municipal 5 15 Orange County 17 22 Oswego County 15 19 Penn Yan 87 96 Perry-Warsaw 8 14 Piseco 1 3 Potsdam Municipal 52 59 Republic 784 874 Saratoga County 21 36 Schenectady County* 1,310 1,407 Schroon Lake 1 2 Sidney Municipal 7 13 Skaneateles Aero Drome 1 1 Sky Acres 23 31 South Albany 1 9 Sullivan County International 45 63 Ticonderoga Municipal 4 9 Tri-Cities 14 9 Wellsville 14 22 Whitford’s 1 7 Williamson-Sodus 4 10 Wurtsboro-Sullivan County 10 10

39 New York Statewide Airport Economic Impacts Study May 2011

Table 5 - On Airport Employment Impacts 2009 Full Time 2009 Direct Airport Equivalent (FTE) Employment Other SASP Airports 44 58 Subtotal SASP GA Airports 5,504 6,234 Heliports – Aggregated 160 277 Subtotal SASP GA Airports & Heliports 5,664 6,511 Private GA Airports N/A 12

GRAND TOTAL 106,628 243,148 * This airport supports a large level of military jobs, quantified previously.

In total, there were 106,628 workers employed at New York airports, not counting workers employed for capital improvements. When those workers and off-airport visitor spending-related jobs are included, the direct number of jobs sustained by New York’s airports in 2009 exceeded 243,100. This jobs total does not include the large number of indirect jobs, which are described later.

Total Employment

Table 6 identifies the direct, indirect and total numbers of employees whose jobs are directly related to activities at the airports in the state. Indirect economic impacts are the multiplied effects of the direct impacts. Indirect impacts are created by the successive rounds of spending in the local economy until the original direct impact has been incrementally exported from the local area. Indirect impacts associated with the day-to-day operation of New York’s airports add more than 151,400 full-time equivalent positions to the economy. As a result of on- airport businesses and visitors using commercial service and general aviation airports, as well as the multiplier effect, there were more than 394,500 jobs attributable to New York's airports during 2009. Of this total, 385,400 jobs were associated with the commercial service airports and nearly 9,100 jobs were associated with public and private general aviation airports and heliports.

Table 6 - Total 2009 Employment Impacts Airport Direct Indirect Total Commercial Service Airports Adirondack Regional 56 18 74 Albany International 6,591 2,281 8,872 Buffalo Niagara International 12,827 3,801 16,628 Chautauqua County -Jamestown 228 113 341 Elmira/Corning Regional 1,669 1,708 3,377 Greater Binghamton 346 137 483 Greater Rochester International 7,304 2,694 9,998 Ithaca Tompkins Regional 364 146 510 JFK International 132,610 92,011 224,621

40 New York Statewide Airport Economic Impacts Study May 2011

Table 6 - Total 2009 Employment Impacts Airport Direct Indirect Total LaGuardia Airport 55,142 39,225 94,367 Long Island MacArthur 4,870 1,215 6,085 Massena International 39 22 61 Ogdensburg International 34 19 53 Plattsburgh International 266 107 373 Stewart International 3,636 1,943 5,579 Syracuse Hancock International 5,630 1,922 7,552 Watertown International 67 20 87 Westchester County 4,946 1,382 6,328 Subtotal CS Airports 236,625 148,764 385,389

General Aviation Airports Akron 7 4 11 Brookhaven Calabro 71 30 101 Buffalo Lancaster Regional 16 9 25 Camillus 3 1 4 Canandaigua 29 28 57 Cattaraugus County-Olean 10 6 16 Chautauqua County-Dunkirk 34 10 44 Columbia County 57 38 95 Corning-Painted Post 18 9 27 Cortland County 17 8 25 Dansville Municipal 14 6 20 Dutchess County 151 87 238 East Hampton 65 26 91 Finger Lakes Regional 15 6 21 Floyd Bennett Memorial 37 16 53 Francis S. Gabreski 1,146 213 1,359 Fulton County 7 4 11 Genesee County 52 38 90 Great Valley 2 1 3 Griffiss International 315 195 510 Hamilton Municipal 32 16 48 Hornell Municipal 5 1 6 Joseph Y. Resnick 9 3 12 Kingston-Ulster 10 7 17 Lake Placid 27 13 40 Ledgedale Airpark 37 25 62 Lt. Warren Eaton 8 3 11

41 New York Statewide Airport Economic Impacts Study May 2011

Table 6 - Total 2009 Employment Impacts Airport Direct Indirect Total Malone-Dufort 5 1 6 Montauk 5 2 7 Niagara Falls International 1,241 465 1,706 Oneonta Municipal 15 5 20 Orange County 22 15 37 Oswego County 19 6 25 Penn Yan 96 103 199 Perry-Warsaw 14 3 17 Piseco 3 1 4 Potsdam Municipal 59 62 121 Republic 874 510 1,384 Saratoga County 36 23 59 Schenectady County 1,407 317 1,724 Schroon Lake 2 0 2 Sidney Municipal 13 5 18 Skaneateles Aero Drome 1 0 1 Sky Acres 31 11 42 South Albany 9 3 12 Sullivan County International 63 56 119 Ticonderoga Municipal 9 2 11 Tri-Cities 9 5 14 Wellsville 22 8 30 Whitford’s 7 2 9 Williamson-Sodus 10 5 15 Wurtsboro-Sullivan County 10 3 13 Other SASP Airports 58 33 91 Subtotal SASP GA Airports 6,234 2,449 8,683 Heliports - Aggregated 277 139 416 Subtotal SASP GA Airports & Heliports 6,511 2,589 9,099 Private GA Airports 12 6 18

GRAND TOTAL 243,148 151,358 394,506

2.2 Income Impacts

Jobs supported by aviation-related businesses and contracted employees and visitors to New York’s airports result in payroll expenditures being introduced in the statewide economy. These income impacts were calculated for aviation-related businesses and on-airport contracted

42 New York Statewide Airport Economic Impacts Study May 2011 employees, commercial service visitors and general aviation visitors using airports in New York.

Direct Income

Table 7 identifies the income associated with direct on-airport aviation-related businesses and contracted employees at each of New York’s airports during 2009. Total payroll for these employees exceeded $10.35 billion for 2009. Of this total, more than $9.96 billion was attributable to commercial service airports. Direct on-airport payroll associated with public and private general aviation airports and heliports exceeded $392.5 million.

Table 7 - On Airport Income Impacts Airport 2009 Direct Income Commercial Service Airports Adirondack Regional $3,445,800 Albany International $190,076,500 Buffalo Niagara International $233,645,100 Chautauqua County -Jamestown $13,488,100 Elmira/Corning Regional $132,517,200 Greater Binghamton $18,092,100 Greater Rochester International $188,246,100 Ithaca Tompkins Regional $22,441,400 JFK International $6,127,000,000 LaGuardia Airport $2,200,000,000 Long Island MacArthur $168,269,600 Massena International $3,399,200 Ogdensburg International $2,880,700 Plattsburgh International $11,645,300 Stewart International $254,870,100 Syracuse Hancock International $136,880,800 Watertown International $3,933,600 Westchester County $251,026,700 Subtotal CS Airports $9,961,858,300

General Aviation Airports Akron $367,200 Brookhaven Calabro $5,298,200 Buffalo Lancaster Regional $927,200 Camillus $134,800 Canandaigua $3,931,400 Cattaraugus County-Olean $848,900 Chautauqua County-Dunkirk $1,673,900

43 New York Statewide Airport Economic Impacts Study May 2011

Table 7 - On Airport Income Impacts Airport 2009 Direct Income Columbia County $6,039,900 Corning-Painted Post $1,322,100 Cortland County $1,346,400 Dansville Municipal $985,300 Dutchess County $9,551,400 East Hampton $4,414,400 Finger Lakes Regional $1,243,800 Floyd Bennett Memorial $3,000,200 Francis S. Gabreski $56,489,600 Fulton County $492,500 Genesee County $6,184,700 Great Valley $190,500 Griffiss International $14,732,300 Hamilton Municipal $2,358,600 Hornell Municipal $197,200 Joseph Y. Resnick $429,400 Kingston-Ulster $885,900 Lake Placid $2,027,200 Ledgedale Airpark $2,361,000 Lt. Warren Eaton $419,200 Malone-Dufort $202,800 Montauk $273,700 Niagara Falls International $65,513,200 Oneonta Municipal $852,800 Orange County $1,125,300 Oswego County $1,060,000 Penn Yan $18,873,600 Perry-Warsaw $951,700 Piseco $80,300 Potsdam Municipal $8,002,900 Republic $54,119,400 Saratoga County $4,926,900 Schenectady County $69,015,900 Schroon Lake $78,500 Sidney Municipal $768,900 Skaneateles Aero Drome $20,100 Sky Acres $1,697,700 South Albany $604,800 Sullivan County International $9,668,400

44 New York Statewide Airport Economic Impacts Study May 2011

Table 7 - On Airport Income Impacts Airport 2009 Direct Income Ticonderoga Municipal $405,300 Tri-Cities $301,300 Wellsville $1,370,200 Whitford’s $208,600 Williamson-Sodus $901,800 Wurtsboro-Sullivan County $577,600 Other SASP Airports $4,107,600 Subtotal SASP GA Airports $373,562,500 Heliports - Aggregated $18,076,600 Subtotal SASP GA Airports & Heliports $391,639,100 Private Airports $888,300

GRAND TOTAL $10,354,385,700

Total Income

The direct, indirect and total impacts of the combined on-airport aviation-related businesses and contracted employees, commercial service visitors and general aviation visitor- related income are identified in Table 8. Businesses that supply and service these visitor-related industries owe a portion of their employees’ payroll to the service industries. As employees in the service industries spend their incomes, the monies continue to circulate, generating additional employment and subsequent payroll. When all direct impacts were combined for 2009, New York’s airport system was responsible for generating nearly $10.4 billion in direct payroll. With nearly $7.7 billion in indirect payroll impacts, a total of nearly $18.1 billion in annual payroll was created in New York as a result of business and visitor spending at general aviation and commercial service airports. Of this total, more than $17.5 billion was associated with commercial service airports and nearly $506.1 million with public and private general aviation airports and heliports.

Table 8 - Total 2009 Income Impacts Airport Direct Indirect Total Commercial Service Airports Adirondack Regional $3,445,800 $638,900 $4,084,700 Albany International $190,076,500 $97,926,200 $288,002,700 Buffalo Niagara International $233,645,100 $150,374,400 $384,019,500 Chautauqua County -Jamestown $13,488,100 $3,877,700 $17,365,800 Elmira/Corning Regional $132,517,200 $75,921,600 $208,438,800 Greater Binghamton $18,092,100 $5,144,300 $23,236,400 Greater Rochester International $188,246,100 $106,960,900 $295,207,000 Ithaca Tompkins Regional $22,441,400 $6,131,900 $28,573,300

45 New York Statewide Airport Economic Impacts Study May 2011

Table 8 - Total 2009 Income Impacts Airport Direct Indirect Total JFK International $6,127,000,000 $4,756,000,000 $10,883,000,000 LaGuardia Airport $2,200,000,000 $2,078,000,000 $4,278,000,000 Long Island MacArthur $168,269,600 $60,910,100 $229,179,700 Massena International $3,399,200 $778,100 $4,177,300 Ogdensburg International $2,880,700 $683,600 $3,564,300 Plattsburgh International $11,645,300 $4,006,800 $15,652,100 Stewart International $254,870,100 $78,751,800 $333,621,900 Syracuse Hancock International $136,880,800 $76,182,000 $213,062,800 Watertown International $3,933,600 $775,000 $4,708,600 Westchester County $251,026,700 $83,111,500 $334,138,200 Subtotal CS Airports $9,961,858,300 $7,586,174,800 $17,548,033,100

General Aviation Airports Akron $367,200 $160,200 $527,400 Brookhaven Calabro $5,298,200 $1,627,000 $6,925,200 Buffalo Lancaster Regional $927,200 $410,400 $1,337,600 Camillus $134,800 $45,200 $180,000 Canandaigua $3,931,400 $1,052,500 $4,983,900 Cattaraugus County-Olean $848,900 $191,100 $1,040,000 Chautauqua County-Dunkirk $1,673,900 $358,700 $2,032,600 Columbia County $6,039,900 $1,600,000 $7,639,900 Corning-Painted Post $1,322,100 $398,400 $1,720,500 Cortland County $1,346,400 $249,200 $1,595,600 Dansville Municipal $985,300 $207,700 $1,193,000 Dutchess County $9,551,400 $3,832,100 $13,383,500 East Hampton $4,414,400 $1,398,400 $5,812,800 Finger Lakes Regional $1,243,800 $200,500 $1,444,300 Floyd Bennett Memorial $3,000,200 $614,400 $3,614,600 Francis S. Gabreski $56,489,600 $10,742,900 $67,232,500 Fulton County $492,500 $146,100 $638,600 Genesee County $6,184,700 $1,363,900 $7,548,600 Great Valley $190,500 $38,300 $228,800 Griffiss International $14,732,300 $7,306,700 $22,039,000 Hamilton Municipal $2,358,600 $639,200 $2,997,800 Hornell Municipal $197,200 $51,000 $248,200 Joseph Y. Resnick $429,400 $133,700 $563,100 Kingston-Ulster $885,900 $275,800 $1,161,700 Lake Placid $2,027,200 $415,100 $2,442,300 Ledgedale Airpark $2,361,000 $1,191,000 $3,552,000

46 New York Statewide Airport Economic Impacts Study May 2011

Table 8 - Total 2009 Income Impacts Airport Direct Indirect Total Lt. Warren Eaton $419,200 $79,100 $498,300 Malone-Dufort $202,800 $52,900 $255,700 Montauk $273,700 $97,400 $371,100 Niagara Falls International $65,513,200 $19,251,000 $84,764,200 Oneonta Municipal $852,800 $212,700 $1,065,500 Orange County $1,125,300 $700,900 $1,826,200 Oswego County $1,060,000 $181,200 $1,241,200 Penn Yan $18,873,600 $3,190,400 $22,064,000 Perry-Warsaw $951,700 $118,900 $1,070,600 Piseco $80,300 $8,200 $88,500 Potsdam Municipal $8,002,900 $2,340,600 $10,343,500 Republic $54,119,400 $23,906,100 $78,025,500 Saratoga County $4,926,900 $936,000 $5,862,900 Schenectady County $69,015,900 $12,441,400 $81,457,300 Schroon Lake $78,500 $12,900 $91,400 Sidney Municipal $768,900 $203,700 $972,600 Skaneateles Aero Drome $20,100 $10,800 $30,900 Sky Acres $1,697,700 $480,400 $2,178,100 South Albany $604,800 $118,900 $723,700 Sullivan County International $9,668,400 $2,205,200 $11,873,600 Ticonderoga Municipal $405,300 $73,200 $478,500 Tri-Cities $301,300 $191,500 $492,800 Wellsville $1,370,200 $244,600 $1,614,800 Whitford’s $208,600 $45,800 $254,400 Williamson-Sodus $901,800 $170,400 $1,072,200 Wurtsboro-Sullivan County $577,600 $142,200 $719,800 Other SASP Airports $4,107,600 $1,948,000 $6,055,600 Subtotal SASP GA Airports $373,562,500 $104,013,900 $477,576,400 Heliports - Aggregated $18,076,600 $9,147,300 $27,223,900 Subtotal SASP GA Airports & Heliports $391,639,100 $113,161,200 $504,800,300 Private Airports $888,300 $370,800 $1,259,100

GRAND TOTAL $10,354,385,700 $7,699,706,800 $18,054,092,500

2.3 Output Impacts

Output, or economic activity, is defined as the total value of goods and services produced by an airport. Direct output is measured by the total expenditures at an airport or as the result of the airport’s existence (such as air visitor spending off the airport). These visitor-

47 New York Statewide Airport Economic Impacts Study May 2011 related expenditures are typically in the hotel/motel, restaurant, transportation and retail sectors.

Direct Output

Table 9 identifies the direct aviation-related output for each airport in the state for 2009. Total direct annual output by on-airport aviation-related businesses and contracted employees was estimated at over $32.1 billion during 2009. Of this total, more than $31.3 billion was attributable to commercial service airports. Direct on-airport output associated with public and private general aviation airports and heliports exceeded $792.8 million.

Table 9 - On Airport Direct Output Airport 2009 Direct Output Commercial Service Airports Adirondack Regional $5,953,400 Albany International $474,741,900 Buffalo Niagara International $620,556,200 Chautauqua County -Jamestown $31,469,300 Elmira/Corning Regional $1,329,071,900 Greater Binghamton $36,768,000 Greater Rochester International $484,625,400 Ithaca Tompkins Regional $48,939,600 JFK International $19,344,000,000 LaGuardia Airport $7,120,000,000 Long Island MacArthur $399,116,900 Massena International $6,288,900 Ogdensburg International $5,440,600 Plattsburgh International $27,357,700 Stewart International $510,428,900 Syracuse Hancock International $369,781,200 Watertown International $7,585,600 Westchester County $500,089,600 Subtotal CS Airports $31,322,215,100

General Aviation Airports Akron $699,800 Brookhaven Calabro $11,415,100 Buffalo Lancaster Regional $1,735,300 Camillus $220,300 Canandaigua $8,838,500 Cattaraugus County-Olean $1,781,800 Chautauqua County-Dunkirk $2,870,300

48 New York Statewide Airport Economic Impacts Study May 2011

Table 9 - On Airport Direct Output Airport 2009 Direct Output Columbia County $15,518,700 Corning-Painted Post $2,797,900 Cortland County $2,347,100 Dansville Municipal $2,200,100 Dutchess County $32,088,500 East Hampton $8,606,600 Finger Lakes Regional $2,168,800 Floyd Bennett Memorial $6,611,500 Francis S. Gabreski $89,176,800 Fulton County $1,622,500 Genesee County $13,770,300 Great Valley $346,700 Griffiss International $45,714,200 Hamilton Municipal $4,271,100 Hornell Municipal $381,300 Joseph Y. Resnick $879,000 Kingston-Ulster $2,321,800 Lake Placid $5,798,900 Ledgedale Airpark $4,492,100 Lt. Warren Eaton $746,800 Malone-Dufort $464,000 Montauk $594,400 Niagara Falls International $100,893,900 Oneonta Municipal $1,595,000 Orange County $3,868,700 Oswego County $1,935,300 Penn Yan $42,298,100 Perry-Warsaw $1,626,400 Piseco $197,000 Potsdam Municipal $19,167,900 Republic $147,093,600 Saratoga County $10,388,700 Schenectady County $115,313,300 Schroon Lake $143,800 Sidney Municipal $2,329,200 Skaneateles Aero Drome $47,100 Sky Acres $3,005,400 South Albany $1,000,400 Sullivan County International $19,417,900

49 New York Statewide Airport Economic Impacts Study May 2011

Table 9 - On Airport Direct Output Airport 2009 Direct Output Ticonderoga Municipal $808,800 Tri-Cities $1,280,600 Wellsville $3,745,600 Whitford’s $573,700 Williamson-Sodus $2,073,800 Wurtsboro-Sullivan County $1,170,100 Other SASP Airports $6,878,600 Subtotal SASP GA Airports $757,333,100 Heliports - Aggregated $34,153,700 Subtotal SASP GA Airports & Heliports $791,486,800 Private Airports $1,367,400

GRAND TOTAL $32,115,069,300

Total Output

The direct, indirect and total combined impact of aviation-related businesses, commercial service and general aviation visitor output is identified in Table 10. Indirect impacts associated with the day-to-day operation of New York’s airports add more than $18.1 billion in output to the economy. Adding these impacts to the direct output results in the generation of $50.3 billion in output attributable to New York's airports during 2009. Of this total, more than $49.1 billion in output is associated with the commercial service airports and more than $1.1 billion in output is associated with public and private general aviation airports and heliports. Table 10 shows the total output generated at the state’s airports ($50.3 billion). By way of comparison, New York’s 269 colleges and universities generated a total economic impact of $62.2 billion.29

Table 10 - Total 2009 Output Impacts Airport Direct Indirect Total Commercial Service Airports Adirondack Regional $5,953,400 $1,932,200 $7,885,600 Albany International $474,741,900 $286,068,400 $760,810,300 Buffalo Niagara International $620,556,200 $450,629,200 $1,071,185,400 Chautauqua County -Jamestown $31,469,300 $11,899,400 $43,368,700 Elmira/Corning Regional $1,329,071,900 $214,207,500 $1,543,279,400 Greater Binghamton $36,768,000 $16,016,800 $52,784,800 Greater Rochester International $484,625,400 $315,738,400 $800,363,800 Ithaca Tompkins Regional $48,939,600 $17,896,800 $66,836,400 JFK International $19,344,000,000 $10,970,000,000 $30,314,000,000 LaGuardia Airport $7,120,000,000 $4,625,000,000 $11,745,000,000

29 Source:http://www.osc.state.ny.us/reports/economic/nys_economic_trends.pdf .

50 New York Statewide Airport Economic Impacts Study May 2011

Table 10 - Total 2009 Output Impacts Airport Direct Indirect Total Long Island MacArthur $399,116,900 $177,899,700 $577,016,600 Massena International $6,288,900 $2,282,100 $8,571,000 Ogdensburg International $5,440,600 $2,005,000 $7,445,600 Plattsburgh International $27,357,700 $11,340,300 $38,698,000 Stewart International $510,428,900 $240,293,900 $750,722,800 Syracuse Hancock International $369,781,200 $227,136,900 $596,918,100 Watertown International $7,585,600 $2,296,100 $9,881,700 Westchester County $500,089,600 $235,790,000 $735,879,600 Subtotal CS Airports $31,322,215,100 $17,808,432,700 $49,130,647,800

General Aviation Airports Akron $699,800 $461,100 $1,160,900 Brookhaven Calabro $11,415,100 $4,759,400 $16,174,500 Buffalo Lancaster Regional $1,735,300 $1,177,800 $2,913,100 Camillus $220,300 $130,700 $351,000 Canandaigua $8,838,500 $3,192,000 $12,030,500 Cattaraugus County-Olean $1,781,800 $584,200 $2,366,000 Chautauqua County-Dunkirk $2,870,300 $1,098,300 $3,968,600 Columbia County $15,518,700 $4,910,500 $20,429,200 Corning-Painted Post $2,797,900 $1,117,200 $3,915,100 Cortland County $2,347,100 $759,000 $3,106,100 Dansville Municipal $2,200,100 $645,400 $2,845,500 Dutchess County $32,088,500 $11,959,000 $44,047,500 East Hampton $8,606,600 $3,998,500 $12,605,100 Finger Lakes Regional $2,168,800 $662,800 $2,831,600 Floyd Bennett Memorial $6,611,500 $1,783,500 $8,395,000 Francis S. Gabreski $89,176,800 $32,421,500 $121,598,300 Fulton County $1,622,500 $473,500 $2,096,000 Genesee County $13,770,300 $4,357,300 $18,127,600 Great Valley $346,700 $114,900 $461,600 Griffiss International $45,714,200 $21,216,900 $66,931,100 Hamilton Municipal $4,271,100 $1,865,400 $6,136,500 Hornell Municipal $381,300 $144,600 $525,900 Joseph Y. Resnick $879,000 $399,000 $1,278,000 Kingston-Ulster $2,321,800 $860,100 $3,181,900 Lake Placid $5,798,900 $1,328,400 $7,127,300 Ledgedale Airpark $4,492,100 $3,383,100 $7,875,200 Lt. Warren Eaton $746,800 $259,100 $1,005,900 Malone-Dufort $464,000 $156,700 $620,700

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Table 10 - Total 2009 Output Impacts Airport Direct Indirect Total Montauk $594,400 $282,100 $876,500 Niagara Falls International $100,893,900 $57,696,500 $158,590,400 Oneonta Municipal $1,595,000 $633,400 $2,228,400 Orange County $3,868,700 $2,073,600 $5,942,300 Oswego County $1,935,300 $600,800 $2,536,100 Penn Yan $42,298,100 $10,545,700 $52,843,800 Perry-Warsaw $1,626,400 $381,100 $2,007,500 Piseco $197,000 $31,400 $228,400 Potsdam Municipal $19,167,900 $6,675,700 $25,843,600 Republic $147,093,600 $67,050,700 $214,144,300 Saratoga County $10,388,700 $2,995,000 $13,383,700 Schenectady County $115,313,300 $37,115,400 $152,428,700 Schroon Lake $143,800 $40,700 $184,500 Sidney Municipal $2,329,200 $658,900 $2,988,100 Skaneateles Aero Drome $47,100 $31,200 $78,300 Sky Acres $3,005,400 $1,431,600 $4,437,000 South Albany $1,000,400 $325,700 $1,326,100 Sullivan County International $19,417,900 $7,055,300 $26,473,200 Ticonderoga Municipal $808,800 $231,400 $1,040,200 Tri-Cities $1,280,600 $634,300 $1,914,900 Wellsville $3,745,600 $807,800 $4,553,400 Whitford’s $573,700 $139,600 $713,300 Williamson-Sodus $2,073,800 $588,800 $2,662,600 Wurtsboro-Sullivan County $1,170,100 $446,400 $1,616,500 Other SASP Airports $6,878,600 $5,459,700 $12,338,300 Subtotal SASP GA Airports $757,333,100 $308,152,700 $1,065,485,800 Heliports - Aggregated $34,153,700 $25,198,800 $59,352,500 Subtotal SASP GA Airports & Heliports $791,486,800 $333,351,500 $1,124,838,300 Private Airports $1,367,400 $1,035,900 $2,403,300

GRAND TOTAL $32,115,069,300 $18,142,820,100 $50,257,889,400

2.4 State & Local Tax Revenue Impacts

Airport activity in 2009 in New York State generated federal30, state and local tax revenues paid by the individuals directly employed by airports, as well as individuals employed

30 Federal tax impacts were not included in this Study.

52 New York Statewide Airport Economic Impacts Study May 2011 in activities indirectly related to on-airport spending. State and local taxes include the following:

 Corporate profit taxes  Dividend taxes – taxes paid on dividends earned by corporate stock owners  Corporate motor vehicle licenses – fees paid to states for registering vehicles  Other taxes paid by businesses  Sales taxes – taxes paid as a portion of the sales price of a good or service  Estate and gift taxes  Personal income taxes  Personal motor vehicle licenses – fees paid to states for registering vehicles owned by individuals  Non-tax fees and fines on individuals  Other taxes paid by individuals  Personal property taxes – taxes paid by individual property owners  Social Security taxes paid by both businesses and individuals

IMPLAN (see Appendix A, p.1) estimated that airport activity across the state generated $4.52 billion in state and local tax revenues. Most taxes collected at the state’s airports come from JFK International Airport, which in 2009 accounted for $2.85 billion in state and local taxes. LaGuardia contributed an additional $1.1 billion in state and local taxes. The remaining commercial service airports contributed $485 million, while public and private general aviation airports and heliports added $75.8 million in state and local taxes. State and local tax revenues estimated for each airport in this study are presented in Table 11.

Table 11 - 2009 State and Local Taxes Airport Total Commercial Service Airports Adirondack Regional $670,500 Albany International $59,292,900 Buffalo Niagara International $84,436,700 Chautauqua County-Jamestown $2,160,400 Elmira/Corning Regional $30,463,100 Greater Binghamton $3,457,400 Greater Rochester International $62,375,200 Ithaca Tompkins Regional $5,332,900 JFK International $2,851,969,500 LaGuardia Airport $1,104,980,600 Long Island MacArthur $54,284,700 Massena International $604,600 Ogdensburg International $427,500 Plattsburgh International $2,730,200 Stewart International $60,775,500

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Table 11 - 2009 State and Local Taxes Airport Total Syracuse Hancock International $45,337,500 Watertown International $694,300 Westchester County $72,056,200 Subtotal CS Airports $4,442,049,700

General Aviation Airports Akron $78,300 Brookhaven Calabro $1,461,900 Buffalo Lancaster Regional $173,600 Camillus $33,300 Canandaigua $731,800 Cattaraugus County-Olean $152,900 Chautauqua County-Dunkirk $356,200 Columbia County $1,167,900 Corning-Painted Post $193,600 Cortland County $328,700 Dansville Municipal $188,800 Dutchess County $2,784,100 East Hampton $1,339,000 Finger Lakes Regional $308,800 Floyd Bennett Memorial $481,800 Francis S. Gabreski $8,518,800 Fulton County $121,000 Genesee County $1,097,600 Great Valley $152,900 Griffiss International $3,423,600 Hamilton Municipal $564,800 Hornell Municipal $42,900 Joseph Y. Resnick $73,700 Kingston-Ulster $171,600 Lake Placid $384,900 Ledgedale Airpark $488,300 Lt. Warren Eaton $89,800 Malone-Dufort $32,300 Montauk $79,800 Niagara Falls International $9,960,000 Oneonta Municipal $167,800 Orange County $311,400 Oswego County $254,700

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Table 11 - 2009 State and Local Taxes Airport Total Penn Yan $4,068,700 Perry-Warsaw $193,400 Piseco $11,400 Potsdam Municipal $1,395,600 Republic $13,490,500 Saratoga County $853,500 Schenectady County $8,735,000 Schroon Lake $12,700 Sidney Municipal $150,800 Skaneateles Aero Drome $5,300 Sky Acres $452,600 South Albany $115,400 Sullivan County International $1,752,000 Ticonderoga Municipal $55,300 Tri-Cities $91,700 Wellsville $298,600 Whitford’s $57,200 Williamson-Sodus $152,200 Wurtsboro-Sullivan County $136,400 Other SASP Airports $1,086,300 Subtotal SASP GA Airports $68,831,200 Heliports - Aggregated $5,929,900 Subtotal SASP Airports & Heliports $74,761,100 Private Airports $234,100 GRAND TOTAL $4,517,044,900

2.5 Local Economic Context

In providing a context for the economic impact numbers shown in previous sections, a question may be asked: What is the comparison of the results for a local airport to a local business? That is, can the magnitude of the economic impacts of airports be better understood as they are compared to known local businesses? For this study, a well-known local business was selected to use as a benchmark comparison to the economic impacts of airports.

One brand known worldwide is Walmart, a global retail company with stores in thousands of cities across the U.S. According to Walmart’s 2009 annual report, the company earned $401.2 billion. It employs 1.4 million people in the U.S. at several types of stores:

 891 Discount Stores 108,000 square feet  2,612 Super Centers 185,000 square feet

55 New York Statewide Airport Economic Impacts Study May 2011

 153 Neighborhood Markets 42,000 square feet

The average store size is 160,250 square feet. The average number of employees for the Discount Stores is 225, while the Super Centers employ an average of 350. Excluding the Neighborhood Markets, there is an average of 318 employees per store. The average sales per store in 2009 were $48,504,500.

Given the above inputs, Table 12 presents the IMPLAN analysis of the economic impact of an average Walmart store on the local economy in New York State. As shown, Walmart’s sales of $48.5 million translate into a trade margin (or output) of $13.24 million. Included in this output margin would be value-added (labor and factor income) of $8.6 million. IMPLAN calculated that the 318 employees per store translated into 208 full-time equivalent employees earning an average of $27,908 per year (labor income divided by 208).

Since a large proportion of Walmart’s sales are on goods made outside New York State (and outside the U.S.), there will be limited ripple effects on the producer’s purchase price. Almost all the ripple effect impact will come from wages and salaries spent by employees. In fact, all the top 10 sectors affected by this spending are non-manufacturing – reflecting the origin of the primary impacts (wages and salaries). In total, the average Walmart store has a total local impact of 273 jobs and $25.0 million in total output.

Table 12 – Average Economic Impact of Walmart Store on NYS Impact Type Employment Labor Income Total Value Added Output Direct Effect 208 $5,805,060 $8,629,672 $13,241,728 Indirect Effect 65 $4,081,706 $7,291,006 $11,795,058 Total Effect 273 $9,886,767 $15,920,678 $25,036,787 Multiplier 1.31 1.7 1.84 1.89

By way of comparison, the following airports have similarities in either employment or output numbers or both:

 Sullivan County International 119 Jobs $26.4 Million in Output  Potsdam (primarily from UPS) 121 Jobs $25.8 Million in Output  Dutchess County 238 Jobs $44.0 Million in Output

Greater Binghamton Airport has two times the output ($52.8 million) and sustains almost twice the number of jobs (483). Similarly, Griffiss International Airport has almost twice the number of jobs (510) and more than twice the impact ($66.9 million).

Overall, 14 of the 18 airline airports have significantly more employment and output than the average Walmart store. Airline airports with lower economic impacts were all Essential Air Service points: Adirondack Regional, Massena International, Ogdensburg International and Watertown International. Of the 67 general aviation airports studied, nine had greater output or employment than the average Walmart store: Dutchess County, Francis S. Gabreski, Griffiss International, Niagara Falls International, Penn Yan, Potsdam, Republic, Schenectady County and Sullivan County International.

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3. ECONOMIC IMPACTS BY AIRPORT

HIS ECONOMIC IMPACT ANALYSIS HAS DEMONSTRATED THE level of contribution that New York State’s airports made to the economy during the calendar year 2009. The airports T act as economic catalysts, supporting direct as well as indirect jobs, incomes and output (economic activity) impacts. Further, as identified through this study’s surveys, businesses throughout the State rely on the availability of commercial service and general aviation airports. The following section presents the impacts of the 90 New York public-use airports and heliports studied. Qualitative impacts provided by each airport are also noted. These airports were identified for specific study, while the impacts for remaining public and private use airports in New York State were estimated by grouping and extrapolating results. The impacts of JFK International and LaGuardia were provided by PANY&NJ, while the impact of Stewart International was derived from PANY&NJ inputs. The remainder of this Section is organized as follows:

 Commercial Service Airports  General Aviation Airports

3.1 Commercial Service Airports

Commercial service airports in New York include 18 facilities throughout the state. These airports range in size from six small Essential Air Service points (Adirondack, Jamestown, Massena, Ogdensburg, Plattsburgh and Watertown) to the large Port Authority Airports in New York City – JFK International and LaGuardia.

Adirondack Regional Airport

Adirondack Regional Airport is a commercial service airport serving the Saranac Lake region. As the “major air center for the Tri-Lakes Area and Northern New York State,” Adirondack Regional serves the Boston, MA market with three departures and arrivals per day provided by . Adirondack Airport attempts to attract passengers by offering cost savings on airport parking fees and promoting valuable time savings in a faster passenger processing scheme versus a larger facility. The airport touts a great location with respect to Olympic venues and tourist attractions. According to 2009 FAA enplanement activity data, about 4,800 enplanements occurred at Adirondack Regional during the calendar year. In addition to commercial service, Adirondack Regional supports general aviation activity.

In addition to the employees of Cape Air, the airport supports employees of rental car companies, aircraft maintenance, fuel sales personnel, law enforcement and airport management. The significance of the airport to area commerce is underscored by its business clientele. Prominent corporate users of Adirondack Regional Airport include Cape Air, NetJets Aviation, Wells Fargo, Citation Air, Coca-Cola, US Bankcorp and others. The attraction of corporate and large charter aircraft is a natural market niche due to the long runway length and other amenities available at the airport.

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Study surveys of sponsors and businesses revealed that 56 full- and part-time jobs and $5.9 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures and visitor spending at the airport. Including indirect expenditures, the total impact for Adirondack Regional Airport was $7.9 million, supporting 74 jobs.

Adirondack Regional Type Direct Indirect Total

Employment 56 18 74 Income $3,445,800 $638,900 $4,084,700 Output $5,953,400 $1,932,200 $7,885,600 State and Local Taxes $670,500

Albany International Airport

Albany International Airport offers scheduled commercial airline service to airport users who are flying into and out of the east-central region of New York State. According to 2009 FAA enplanement activity data, more than 1.3 million enplanements occurred at Albany International during the calendar year. In addition to its commercial service role, Albany International serves a high level of general aviation activity, including corporate, recreational and military aircraft.

Albany International Airport is the major air center for the Capital Region. The airport has recently completed multi-million-dollar capital improvements to the passenger terminal, parking garage, control tower and cargo facilities. Albany International is served by five major airlines: Southwest, Continental, Delta, Air Canada and US Airways. In addition, Cape Air, a commuter airline, also serves Albany International by connecting it with three smaller Essential Air Service airports in New York State: Watertown, Ogdensburg and Massena. In total, 24 non- stop destinations are served by Albany International. The major airlines at the airport connect to popular U.S. destinations such as: Baltimore, Newark, Detroit, Dulles, Philadelphia, Chicago, Atlanta, Tampa and Toronto, Canada. Several western U.S. destinations, such as Las Vegas, Portland and Kansas City, are accessible from Albany International.

Many businesses are located at the airport including airlines, car rental agencies and other aviation services, such as food service, air cargo, airline support and the National Guard. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization airport users have included Verizon Communications, KeyCorp, Bank of America, InfoEd International and Taconic Farms, among others.

Surveys of on-airport employers revealed that 6,591 full- and part-time jobs and more than $474.7 million in expenditures are a direct result of on-airport businesses, capital spending and visitor spending. It should be noted that the impact of all direct spending is multiplied by successive rounds of spending within the local economy. Including indirect expenditures, the total impact for Albany International was $760.8 million, supporting 8,872 jobs.

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Albany International Type Direct Indirect Total

Employment 6,591 2,281 8,872 Income $190,076,500 $97,926,200 $288,002,700 Output $474,741,900 $286,068,400 $760,810,300 State and Local Taxes $59,292,900

Buffalo Niagara International Airport

As a commercial service airport in Erie County, Buffalo Niagara International Airport serves a considerable commercial service market niche and a high level of corporate general aviation activity. In addition to airline and corporate/business activity, shipping of just-in-time commodities, air cargo and police and law enforcement activities occur regularly at the airport.

Buffalo Niagara International Airport offers commercial service to airport users flying into and out of the northwest region of New York State. According to 2009 FAA enplanement activity data, more than 2.65 million enplanements occurred at Buffalo Niagara International during the calendar year. In this regard, Buffalo Niagara International Airport is host to an average of 110 daily flights with nonstop service to 23 airports. Nine major airlines and one commuter airline provide service to the Buffalo Niagara Airport. Airlines at Buffalo Airport include AirTran, American, Continental, , Delta, JetBlue, Southwest, United and US Airways.

In addition to the employees of the numerous airlines serving Buffalo Niagara International, the airport supports employees of rental car companies, air cargo operators, federal agencies (including FAA, TSA, National Weather Service, Post Office, and Customs), aircraft maintenance and fuel sales personnel, law enforcement, concessions, corporate flight departments and airport management. As evidenced by its business clientele, Buffalo Niagara International Airport is important to area commerce. Prominent corporations in the area include Honeywell, Bank of America, Verizon, Samsung, Ford Motor Co., Geico, Fisher Price, Gateway Computers and Dunlop Tires.

Study surveys of sponsors and businesses revealed that 12,827 full- and part-time jobs and more than $620.5 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Buffalo Niagara International Airport was $1.07 billion, supporting 16,628 jobs.

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Buffalo Niagara International Type Direct Indirect Total

Employment 12,827 3,801 16,628 Income $233,645,100 $150,374,400 $384,019,500 Output $620,556,200 $450,629,200 $1,071,185,400 State and Local Taxes $84,436,700

Chautauqua County-Jamestown Airport

The Chautauqua County-Jamestown Airport serves the transportation needs of travelers in western New York and northwestern Pennsylvania. In addition to scheduled commercial airline service, the airport is used for corporate/business aviation and recreational flying. The airport also serves as a gateway for visitors; provides for shipping of just-in-time materials; accommodates police and law enforcement; aerial photography; search and rescue; medical shipments; and serves as a location for community facilities. According to 2009 FAA enplanement activity data, more than 3,500 enplanements occurred at the airport during the calendar year. Continental Airlines is the only carrier at the airport and provides twice-daily nonstop service to Cleveland-Hopkins International Airport.

The airport’s economic impact was measured through surveys that revealed 228 full- and part-time jobs and nearly $31.5 million in direct expenditures. This includes on-airport businesses, airport sponsor expenditures on operations and capital improvements, and visitor spending. Including indirect expenditures, the total impact for Chautauqua County-Jamestown Airport was $43.4 million, supporting 341 jobs.

Chautauqua County – Jamestown Type Direct Indirect Total

Employment 228 113 341 Income $13,488,100 $3,877,700 $17,365,800 Output $31,469,300 $11,899,400 $43,368,700 State and Local Taxes $2,160,400

In addition to the employees of Continental Airlines, the airport supports employees of Hertz Rental Car, air cargo operators, aircraft maintenance and fuel sales personnel and airport management. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization airport users include Chautauqua County, FedEx, Gulfstream Airlines, NetJets Aviation, Wachovia Financial, PNC Financial and Bank of America. The airport supports the Jamestown Community College Professional Piloting Program and the Civil Air Patrol. In addition, the airport has hosted events, such as an Open House, Skyjam and school tours.

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Elmira/Corning Regional Airport

Elmira/Corning Regional Airport serves a significant commercial and general aviation market niche in Chemung County. In addition to scheduled commercial airline service, Elmira/Corning Regional Airport accommodates helicopter manufacturing, air cargo, corporate/business, recreational flying, aerial inspections, police/law enforcement, aerial advertising and photography, emergency medical evacuation, environmental patrol, agricultural spraying and prisoner transport. Immersed in rich aviation history, Chemung County is often referred to as “the soaring capital of America” and houses the largest sailplane collection in the United States at its National Soaring Museum.

According to 2009 FAA enplanement activity data, more than 114,500 enplanements occurred at Elmira/Corning Regional during the calendar year. Carriers serving the Elmira market are Delta, US Airways and Allegiant that serve three nonstop destinations: Detroit, Philadelphia and Orlando-Sanford airports, respectively. The airport supports employees of several rental car agencies, air freight operators, aircraft maintenance and fuel sales personnel, FAA, Sikorsky, Elmira Soaring School, Wings of Eagles Museum, concessions, Atlantic Aviation and airport management. Prominent corporate users and local businesses include the Hilliard Corporation and CVS Pharmacy, among others.

The airport’s economic impact was measured through surveys that revealed 1,669 full- and part-time jobs and more than $1.3 billion in direct output. Most of this output is related to the helicopter manufacturing plant (Sikorsky) at the airport. Other direct expenditures included in the totals are for other on-airport businesses, airport operations, capital improvements, and visitor spending. Including indirect expenditures, the total impact for Elmira/Corning Regional Airport was $1.54 billion, supporting 3,377 jobs.

Elmira/Corning Regional Type Direct Indirect Total

Employment 1,669 1,708 3,377 Income $132,517,200 $75,921,600 $208,438,800 Output $1,329,071,900 $214,207,500 $1,543,279,400 State and Local Taxes $30,463,100

Greater Binghamton Regional/Edwin A. Link Field

Greater Binghamton Regional/Edwin A. Link Field is an important commercial service airport in south-central New York. Other activities at the airport include recreational flying, corporate/business activity, aerial inspections, police/law enforcement, aerial photography, search and rescue, emergency medical evacuation, medical shipments and prisoner transport.

Greater Binghamton is home to three airlines: US Airways, United and Delta, serving three nonstop destinations to major hubs in Philadelphia, Detroit and Washington, D.C. (Dulles). According to 2009 FAA enplanement activity data, more than 98,000 enplanements occurred at

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Greater Binghamton Regional/Edwin A. Link Field. Approximately half of the daily departures from Greater Binghamton are operated on 50-seat regional jet aircraft.

In addition to the employees of the airlines (including US Airways Express, Delta and ), the airport supports employees of rental car companies, air cargo operators, aircraft maintenance and fuel sales personnel, law enforcement, FAA, Customs, concessions, corporate flight departments and airport management. Flight training toward private, instrument and commercial ratings and CFI training is offered by Goodrich Pilot Training Center.

The airport’s economic impact was measured through surveys that revealed 346 full- and part-time jobs and more than $36.7 million in direct expenditures. This includes on-airport businesses, airport sponsor expenditures on operations and capital improvements and visitor spending. Including indirect expenditures, the total impact for Greater Binghamton Regional Airport was $52.8 million, supporting 483 jobs.

Greater Binghamton Regional Type Direct Indirect Total

Employment 346 137 483 Income $18,092,100 $5,144,300 $23,236,400 Output $36,768,000 $16,016,800 $52,784,800 State and Local Taxes $3,457,400

Prominent corporate and institutional organizations in the area include Raymond Corporation, Universal Corporation, BAE Systems, United Health Services, Lockheed Martin, Federal Systems, Binghamton University, Endicott Interconnect Technologies, Broome County Government, Lourdes Hospital, IBM Corporation, New York State Electric and Gas and Maines Paper and Foods.

Greater Rochester International Airport

Greater Rochester International Airport serves 18 nonstop destinations, including large hubs such as New York’s JFK and LaGuardia, Chicago, Orlando, Newark, Detroit and Atlanta. According to the airport, New York City destinations are the most popular, accounting for 15 percent of all passengers destinations. Rochester Airport also serves the Canadian market with daily service to Toronto. According to 2009 FAA enplanement activity data, more than 1.27 million enplanements occurred at Greater Rochester during the calendar year. Eight carriers operate from Rochester including: Air Canada, AirTran, , Continental, Delta, JetBlue, United Airlines and US Airways,

The airport hosts an annual air show, Boy Scout and Girl Scout sleepovers in Airport International Arrivals Hall and “Walk the Runways” fundraiser for the lifetime assistance program. The airport also provides services such as Monroe County Sheriff’s Department Airport Security and Airport Fire Department and Emergency Medical Services.

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In addition to the employees of the numerous airlines serving the community, the airport supports employees of several rental car agencies, concessionaires including restaurants and gift shops, corporate flight departments, TSA, an on-site hotel, air freight operators, FBOs, aircraft maintenance and fuel sales personnel, FAA, Customs and airport management. The National Guard also has a significant presence on the airfield.

The airport’s economic impact was measured through surveys that revealed 7,304 full- and part-time jobs and more than $484.6 million in direct expenditures. This includes on-airport businesses, airport sponsor expenditures on operations and capital improvements and visitor spending. Including indirect expenditures, the total impact for Greater Rochester International Airport was $800.4 million, supporting almost 10,000 jobs.

Greater Rochester International Type Direct Indirect Total

Employment 7,304 2,694 9,998 Income $188,246,100 $106,960,900 $295,207,000 Output $484,625,400 $315,738,300 $800,363,800 State and Local Taxes $62,375,200

The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent employers in Monroe County include Eastman Kodak, Xerox Corporation, University of Rochester/Strong Memorial Hospital, Via Health, Wegmans Food Markets, Delphi Energy and Engine, Frontier Corporation, Unity Health System, Hickey Freeman, Bausch & Lomb and numerous others.

Ithaca Tompkins Regional Airport

Ithaca Tompkins Regional Airport is host to three major airlines: Delta, Continental and US Airways. The airport serves four nonstop hubs: Newark, LaGuardia, Philadelphia and Detroit. The airport is marketed as a major international and national gateway to Cornell, Ithaca Colleges, and Tompkins Cortland Community College. According to 2009 FAA enplanement activity data, more than 109,900 enplanements occurred at Ithaca Tompkins Regional during the calendar year.

In addition to the employees of three airlines, the airport supports employees of several rental car agencies, ground transportation, TSA, FAA, concessionaires, corporate, security, aircraft maintenance and fuel sales personnel and airport management. Faculty and students at Cornell University are major users of the airport.

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Ithaca Tompkins Regional Type Direct Indirect Total

Employment 364 146 510 Income $22,441,400 $6,131,900 $28,573,300 Output $48,939,600 $17,896,800 $66,836,400 State and Local Taxes $5,332,900

The airport’s economic impact was measured through surveys that revealed 364 full- and part-time jobs and more than $48.9 million in direct expenditures. This includes on-airport businesses, airport sponsor expenditures on operations and capital improvements and visitor spending. Including indirect expenditures, the total impact for Ithaca Tompkins Regional Airport was $66.8 million, supporting 510 jobs.

JFK International Airport

As a host to more than 70 air carriers, JFK International Airport serves as the premier eastern United States gateway to the world. Since its first commercial flight in 1948, JFK International has grown to serve 152 global destinations nonstop as both a hub and connector for all major airlines. In 2009, the airport hosted 300,670 scheduled passenger aircraft movements and more than 45.9 million passengers supported by 125 aircraft gates and seven terminals. According to 2009 FAA activity data, more than 22.7 million enplanements occurred at the airport for the calendar year. As of 2009, JFK International was ranked sixth in the nation and 12th in the world in terms of passenger traffic. More than 63 percent of aircraft movements at JFK International are serving domestic destinations with an additional 16.5 percent of movements serving the transatlantic market. The top five airlines in terms of passengers carried at JFK International are: JetBlue, Delta, American, United and British Airways.

The economic impact of JFK International was estimated by PANY&NJ at $30.3 billion, which included the impacts of on-airport business spending, airport operations, capital spending and visitor spending. More than 224,600 jobs are supported by this airport.

JFK International Type Direct Indirect Total

Employment 132,610 92,011 224,621 Income $6,127,000,000 $4,756,000,000 $10,883,000,000 Output $19,344,000,000 $10,970,000,000 $30,314,000,000 State and Local Taxes $2,851,969,500 Source: Port Authority of New York & New Jersey

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LaGuardia Airport

LaGuardia Airport is host to 20 airlines serving 91 nonstop destinations. In 2009, LaGuardia accommodated 168,033 scheduled passenger aircraft movements and nearly 11.1 million enplanements. This airline activity is supported by 72 aircraft gates and four main terminals. As of 2009, LaGuardia Airport was ranked 21st in the nation and 55th in the world in terms of passenger traffic. At LaGuardia Airport U.S. Airways and Delta have dedicated terminals while the Central Terminal building serves most of the airport’s other scheduled domestic airlines. The top five airlines in terms of passengers carried at LaGuardia Airport are: Delta, American, US Airways, United and AirTran Airways. Delta and US Airways also provide a popular hourly shuttle flight from LaGuardia to Boston and Washington, D.C., airports.

The economic impact of LaGuardia was estimated by PANY&NJ at $11.7 billion, which included the impacts of on-airport business spending, airport operations, capital spending and visitor spending. More than 94,300 jobs are supported by this airport.

LaGuardia Airport Type Direct Indirect Total

Employment 55,142 39,225 94,367 Income $2,200,000,000 $2,078,000,000 $4,278,000,000 Output $7,120,000,000 $4,625,000,000 $11,745,000,000 State and Local Taxes $1,104,980,600 Source: Port Authority of New York & New Jersey

Long Island MacArthur Airport

As a commercial service airport, Long Island MacArthur serves an important market niche in the region. The airport is also home to major corporate general aviation users. Aviation activities in addition to the major airline service that occur at the airport include significant business, recreational flying, police/law enforcement, aerial photography and surveying, search and rescue, emergency medical evacuation and forest firefighting.

MacArthur Airport features airline service from US Airways, which serves Philadelphia, and from , which serves multiple destinations in Florida as well as Baltimore, Chicago and Las Vegas. In all, there are 13 nonstop destinations. According to 2009 FAA enplanement activity data, 929,900 enplanements occurred at Long Island MacArthur.

In addition to the employees of the airlines that provide service to Long Island MacArthur Airport, the airport supports employees of several rental car agencies, concessionaires, corporate flight departments, FAA, Customs, security, aircraft charter firms, flight training (helicopter and fixed wing), New York Army National Guard, aircraft maintenance and fuel sales personnel and airport management. Nearby Fortune 1,000 companies that utilize the airport are Arrow Electronics, Henry Schein, Olsten, Cablevision and Computer

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Associates International. In addition, high-profile companies, such as Liz Claiborne and Rolling Stone Magazine, have frequented the airport.

The airport’s economic impact was measured through surveys that revealed 4,870 full- and part-time jobs and nearly $399.1 million in direct expenditures are a result of on-airport businesses, including airport management. Visitor spending is added to this impact to derive the total economic activity at the airport. Including indirect expenditures, the total impact for Long Island MacArthur Airport was $577 million, supporting 6,085 jobs.

Long Island MacArthur Type Direct Indirect Total

Employment 4,870 1,215 6,085 Income $168,269,600 $60,910,100 $229,179,700 Output $399,116,900 $177,899,700 $577,016,600 State and Local Taxes $54,284,700

Massena International Airport

Massena International Airport is one of two locations that serve the air travel needs of passengers departing from or arriving in St. Lawrence County (Ogdensburg is the other location). The airport serves a commercial service market niche in St. Lawrence County and for general aviation activity in the region. According to 2009 FAA enplanement activity data, just 3,250 enplanements occurred at Massena during the calendar year. Cape Air provides nonstop flights to Albany. In addition to the employees of Cape Air, the airport supports employees of TSA, aircraft maintenance and fuel sales personnel and airport management. The significance of the airport to area commerce is in many ways defined by its business clientele; prominent corporate and institutional organizations in the area include CSX, Alcoa, Bank of America, NetJets Aviation and Power Authority of the State of New York.

The airport’s economic impact was measured through surveys that revealed 39 full- and part-time jobs and more than $6.2 million in direct expenditures. Including indirect expenditures, the total impact for Massena International Airport was $8.6 million, supporting 61 jobs.

Massena International Type Direct Indirect Total

Employment 39 22 61 Income $3,399,200 $778,100 $4,177,300 Output $6,288,900 $2,282,100 $8,571,000 State and Local Taxes $604,600

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Ogdensburg International Airport

Ogdensburg International Airport serves a small commercial service and general aviation market niche in St. Lawrence County. It is used for corporate/business activity, recreational flying, emergency medical evacuation and environmental patrol.

Ogdensburg International Airport offers commercial service to airport users who are flying into and out of the Adirondack region of New York State. According to 2009 FAA enplanement activity data, more than 2,000 enplanements occurred at Ogdensburg during the calendar year. Cape Air provides nonstop flights to Albany.

The airport’s economic impact was measured through surveys that revealed 34 full- and part-time jobs and nearly $5.4 million in direct expenditures. Including indirect expenditures, the total impact for Ogdensburg International Airport was $7.4 million, supporting 53 jobs.

Ogdensburg International Type Direct Indirect Total

Employment 34 19 53 Income $2,880,700 $683,600 $3,564,300 Output $5,440,600 $2,005,000 $7,445,600 State and Local Taxes $427,500

In addition to the employees of Cape Air, the airport supports employees of TSA, aircraft maintenance and fuel sales personnel, and airport management. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization airport users include Bank of America, EMS Services of New York and numerous others.

Plattsburgh International Airport

The Plattsburgh International Airport serves the airline and general aviation needs of residents in northeastern New York and up to Montreal, Canada. The airport is 20 miles from the U.S.-Canada border along Lake Champlain, across from Burlington, VT. According to 2009 FAA enplanement activity data more than 71,800 enplanements occurred at Plattsburgh International Airport during the calendar year. Allegiant offers nonstop flights to Fort Lauderdale, Orlando and St. Petersburg/Tampa. provides nonstop flights to Myrtle Beach and Punta Gorda/Fort Myers. US Airways Express provides multiple daily flights to Boston.

The airport serves an important aviation and multimodal market niche in Clinton County. As a former air base that was closed in 1995, the facility is managed by Plattsburgh Airbase Redevelopment Corporation (PARC). PARC is responsible for the 5,000-acre facility, including development of the significant industrial park. There are 80 tenants that perform manufacturing,

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medical care, food processing and jet engine testing, to name a few. Tenants include Bombardier, GSM Vehicles and Wyeth Pharmaceuticals.

The airport’s economic impact was measured through surveys that revealed 266 full- and part-time jobs and more than $27.3 million in direct expenditures. Including indirect expenditures, the total impact for Plattsburgh International Airport was $38.7 million, supporting 373 jobs.

Plattsburgh International Type Direct Indirect Total

Employment 266 107 373 Income $11,645,300 $4,006,800 $15,652,100 Output $27,357,700 $11,340,300 $38,698,000 State and Local Taxes $2,730,200

The significance of the airport to area commerce is shown by the significant increase in passenger activity since Clinton County Airport was relocated to Plattsburgh in February 2007. Prominent corporate and institutional organization users include Wells Fargo, EMS Services of New York, Power Authority of New York and several others.

Stewart International Airport

Stewart International Airport serves an important commercial service and general aviation market niche in Orange County. The former Air Force Base had been operated by the New York State Department of Transportation (NYSDOT) prior to being leased to National Express Group PLC in 2000. PANY&NJ acquired the airport in November 2007. Stewart International Airport offers commercial service to users who are flying into and out of the southeast region of New York State. The carriers providing service are primarily using regional jet equipment, supplemented by some turboprop aircraft. According to 2009 FAA enplanement activity data, more than 197,600 enplanements occurred at Stewart International during the calendar year.

Stewart International Airport serves as a business platform for both aviation and non- aviation companies and organizations. In addition to the employees of the airlines that provide service to Stewart International Airport, the airport supports aviation-related employees of several rental car agencies, concessionaires, corporate flight departments, federal government (U.S. Customs, U.S. Department of Agriculture, U.S. Department of Army, FAA), security, aircraft charter firms, flight training (helicopter and fixed wing), aircraft maintenance and fuel sales personnel, State government (Marine Aerial Refueler Transport Squadron, Marine Aviation Logistics Squadron, New York State Police, New York State Air National Guard) and airport management. Non-aviation employers in the industrial park include Anheuser-Busch, Epicor Software, New York State Police, Bank of America and the Newburgh Enlarged School District.

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The airport’s economic impact was measured through direct employment inputs from PANY&NJ, along with capital spending and visitor spending estimates. These inputs revealed that 3,636 full- and part-time jobs and nearly $510.4 million in expenditures are a direct result of on-airport businesses, including airport management. Including indirect expenditures, the total impact for Stewart International Airport was $750.7 million, supporting 5,579 jobs.

Stewart International Type Direct Indirect Total

Employment 3,636 1,943 5,579 Income $254,870,100 $78,751,800 $333,621,900 Output $510,428,900 $240,293,900 $750,722,800 State and Local Taxes $60,775,500

Syracuse Hancock International Airport

Located in Onondaga County, Syracuse Hancock International Airport provides convenient access to central New York. In addition to its important commercial service role, the airport is used for recreational flying, corporate/business activity, aerial inspections, police/law enforcement, aerial photography, search and rescue, emergency medical evacuation, medical shipments and prisoner transport. According to 2009 FAA enplanement activity data, more than one million enplanements occurred at Syracuse Hancock International during the calendar year.

The airport’s economic impact was measured in concert with a recent study.1 This study did not estimate the number of jobs generated by the total economic impact of the airport. The current study used the information on total output generated by the Cheek-Taylor study, as inputs to the IMPLAN model, to derive total jobs. This modeling revealed direct impacts of 3,755 full- and part-time jobs and $369.8 million in direct expenditures. Including indirect expenditures, the total impact for Syracuse Hancock International Airport was $596.9 million, supporting 7,552 jobs.

Syracuse Hancock International Type Direct Indirect Total

Employment 5,630 1,922 7,552 Income $136,880,800 $76,182,000 $213,062,800 Output $369,781,200 $227,136,900 $596,918,100 State and Local Taxes $45,337,500

In addition to the employees of the numerous airlines serving Syracuse, the airport supports employees of rental car companies, air cargo operators, aircraft maintenance and fuel

1 Study of the Economic Impact of the Syracuse Hancock International Airport of the Greater Syracuse, New York Area (William V. Cheek & Associates and William Taylor Architects) 2009-2010.

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sales personnel, FAA, concessions, Hancock Field Air National Guard Base, New York State Police, U.S. Customs, U.S. Immigration, U.S. Postal Service, corporate flight departments and airport management. The significance of the airport to area commerce is emphasized by its business clientele. Prominent corporate and institutional organization airport users include Upstate Medical University, Syracuse University, UPS, FedEx and Delaware North Company Travel and Hospitality Services. Other nearby prominent companies are Johnson Controls, Welch-Allyn Inc., and Verizon.

Watertown International Airport

Watertown International Airport is a commercial service facility near Watertown. Watertown is 70 miles north of Syracuse and 30 miles south of the Canadian border. The airport serves a commercial service and general aviation market niche in Jefferson County. In addition to scheduled commercial airline service, the airport is used for corporate/business aviation, recreational flying, air cargo, police and law enforcement, aerial photography, search and rescue and medical shipments.

According to 2009 FAA enplanement activity data, more than 2,100 enplanements occurred at Watertown International during the calendar year. Cape Air provides three daily flights from Watertown to Albany, NY. In addition to the employees of Cape Air, the airport supports employees of businesses such as Brouty Aircraft Service and Mike Williams Flying School. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization airport users include Hawker Beechcraft Corp., NetJets Aviation, New York State Police, Gulfstream International, Bank of America, Wachovia Financial Services, New York Power Authority, Conoco Phillips and many others.

The airport’s economic impact was measured through surveys that revealed 67 full- and part-time jobs and more than $7.5 million in direct expenditures. Including indirect expenditures, the total impact for Watertown International Airport was $9.9 million, supporting 87 jobs.

Watertown International Type Direct Indirect Total

Employment 67 20 87 Income $3,933,600 $775,000 $4,708,600 Output $7,585,600 $2,296,100 $9,881,700 State and Local Taxes $694,300

Westchester County Airport

Westchester County Airport provides commercial service to air passengers in the greater New York metropolitan area. The airport was built during World War II to operate as a defense satellite base for New York City and today boasts one of the largest based aircraft corporate fleets in the United States. According to 2009 FAA enplanement activity data, more than

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964,900 enplanements occurred at Westchester County during the calendar year. More than 70 businesses are at the airport, including airlines, car rental agencies and other aviation services, such as food service, freight forwarding and airline support. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization airport users include Citigroup Corporate Aviation, General Electric Co., IBM Corporation, JP Morgan Chase, McGraw-Hill Companies, PepsiCo Inc., Phillip Morris Inc. and the Xerox Corporation.

The airport’s economic impact was measured through surveys that revealed 3,374 full- and part-time jobs and more than $500 million in direct expenditures. Including indirect expenditures, the total impact for Westchester County Airport was $735.9 million, supporting 6,328 jobs.

Westchester County Type Direct Indirect Total

Employment 4,946 1,382 6,328 Income $251,026,700 $83,111,500 $334,138,200 Output $500,089,600 $235,790,000 $735,879,600 State and Local Taxes $72,056,200

3.2 General Aviation Airports

The 72 public-use general aviation airports and heliports analyzed in this study feature important services such as: quick access for medical emergencies and law enforcement; charter flights for business and executives; flight training; and tourism and recreational flying. These well-maintained general aviation airports and heliports are within 30 minutes drive for most New Yorkers. This study has shown that many of these non-airline airports provide a critical transportation link for local businesses. These non-airline airports together yield approximately $1.1 billion in annual economic activity and provide businesses and residents with access to air transportation while relieving congestion at busy commercial service airports.

Akron Airport

Akron Airport serves a general aviation community in Erie County. Activities at the airport include recreational flying, corporate/business use, staging area, aerial photography, emergency medical flights and search and rescue. The airport hosts breakfast fly-ins and its significance to area commerce is in many ways defined by its business clientele. Prominent business and corporate airport users include Michael F. Yates and Company Inc., Basin Industries and Rare Air.

Study surveys of sponsors and businesses revealed that seven full- and part-time jobs and nearly $700,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Akron Airport was $1.16 million, supporting 11 jobs.

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Akron Type Direct Indirect Total

Employment 7 4 11 Income $367,200 $160,200 $527,400 Output $699,800 $461,100 $1,160,900 State and Local Taxes $78,300

Brookhaven Calabro Airport

Brookhaven Calabro Airport is a general aviation airport on 600 acres in southeastern Long Island, just 60 miles from downtown Manhattan. The airport is growing to meet business and corporate needs in the area. Activities at Brookhaven Calabro Airport include corporate/business, recreational flying, flight instruction and aviation education. Prominent corporate and institutional organization users include: Dowling College, Air Hamptons, USM Associates Inc. and Crow Executive Air Inc.

Study surveys of sponsors and businesses revealed that 71 full- and part-time jobs and $11.4 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Brookhaven Calabro Airport was $16.2 million, supporting 101 jobs.

Brookhaven Calabro Type Direct Indirect Total

Employment 71 30 101 Income $5,298,200 $1,627,000 $6,925,200 Output $11,415,100 $4,759,400 $16,174,500 State and Local Taxes $1,461,900

Buffalo Lancaster Regional Airport

The Buffalo Lancaster Regional Airport is three miles northeast of Lancaster, NY, and serves an important general aviation role in Erie County. Activities at Buffalo Lancaster Regional Airport include corporate/business and recreational flying. Prominent corporate and institutional organization users include , Aero-Tech Services, Northeastern Aero Services and FMT.

Study surveys of sponsors and businesses revealed that 16 full- and part-time jobs and $1.7 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Buffalo Lancaster Regional Airport was $2.9 million, supporting 25 jobs.

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Buffalo Lancaster Regional Type Direct Indirect Total

Employment 16 9 25 Income $927,200 $410,400 $1,337,600 Output $1,735,300 $1,177,800 $2,913,100 State and Local Taxes $173,600

Camillus Airport

The Camillus Airport, just eight miles northwest west of Syracuse, serves a variety of general aviation needs in central New York. Activities at Camillus Airport include corporate/business and recreational flying.

Study surveys of sponsors and businesses revealed that three full- and part-time jobs and $220,300 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures. Including indirect expenditures, the total impact for Camillus Airport was $351,000, supporting four jobs.

Camillus Type Direct Indirect Total

Employment 3 1 4 Income $134,800 $45,200 $180,000 Output $220,300 $130,700 $351,000 State and Local Taxes $33,300

Canandaigua Airport

The Canandaigua Airport serves a local general aviation market niche in Ontario County, roughly 30 miles from Rochester. Activities at the airport include corporate/business, recreational flying, aerial inspections and photography, medical shipments and patient transfer and agricultural spraying. The significance of the airport to area commerce is emphasized by its business clientele. Local institutional organizations known to use the airport include EMS Air and Mercy Flight.

Study surveys of sponsors and businesses revealed that 29 full- and part-time jobs and $8.8 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Canandaigua Airport was $12.0 million, supporting 57 jobs.

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Canandaigua Type Direct Indirect Total

Employment 29 28 57 Income $3,931,400 $1,052,500 $4,983,900 Output $8,838,500 $3,192,000 $12,030,500 State and Local Taxes $731,800

Cattaraugus County-Olean Airport

Cattaraugus County-Olean Airport is owned by the City of Olean and serves as a general aviation resource for Cattaraugus County. The airport offers corporate aviation, private aviation and air taxi services. A previous study found that the airport is used by casinos from Atlantic City for gambling charters, Saint Bonaventure University and Chandler Whitford. Other prominent airport users include Advantair, NetJets Aviation, Wellsville Flying Service Inc., Bombardier Aerospace, Jack Henry and Associates Inc. and Koldking Energy Corporation.

Study surveys of sponsors and businesses revealed that 10 full- and part-time jobs and $1.8 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Cattaraugus County-Olean Airport was $2.4 million, supporting 16 jobs.

Cattaraugus County-Olean Type Direct Indirect Total

Employment 10 6 16 Income $848,900 $191,100 $1,040,000 Output $1,781,800 $584,300 $2,366,000 State and Local Taxes $152,900

Chautauqua County-Dunkirk Airport

Chautauqua County-Dunkirk Airport is a significant general aviation airport that provides aviation services for northern Chautauqua County, attracting activity from as far away as Buffalo. The airport is also used for training, search and rescue, cadet orientation, counter-drug activities, flight instruction and recreational flying. The significance of the airport to area commerce is underscored by its business clientele. Prominent corporate and institutional airport users of Chautauqua County-Dunkirk Airport include Cider House Aviation, Bob Evans Farms Inc., LuftLadder Inc., Cessna Aircraft Co. and EMS Services of New York.

Study surveys of sponsors and businesses revealed that 34 full- and part-time jobs and $2.9 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Chautauqua County-Dunkirk Airport was $4.0 million, supporting 44 jobs.

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Chautauqua County-Dunkirk Type Direct Indirect Total

Employment 34 10 44 Income $1,673,900 $358,700 $2,032,600 Output $2,870,300 $1,098,200 $3,968,600 State and Local Taxes $356,200

Columbia County Airport

Columbia County Airport serves a significant general aviation market niche in the Hudson Valley area. Activities at the airport include recreational flying, corporate/business use, police/law enforcement, career training, emergency medical flights and search and rescue. The airport also supports the Parker O’Malley Aviation Museum and the Columbia County Commerce Center. Prominent corporations and institutional organizations in the area include Whittier Healthcare Holdings Inc. and Seneca Foods Corporation. Aviation-related companies linked to the airport include NetJets Aviation, Cheyenne I Limited, Peco Air, Richmor Aviation and others.

Study surveys of sponsors and businesses revealed that 57 full- and part-time jobs and $15.5 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Columbia County Airport was $20.4 million, supporting 95 jobs.

Columbia County Type Direct Indirect Total

Employment 57 38 95 Income $6,039,900 $1,600,000 $7,639,900 Output $15,518,700 $4,910,500 $20,429,200 State and Local Taxes $1,167,900

Corning-Painted Post Airport

The Corning-Painted Post Airport is in Steuben County Activities at the airport include corporate/business, recreational flying, aerial advertising, aerial photography and career training. Aviation-related companies linked to the airport include Reliant Air, Costa Flying Service, Sierra-Bravo Inc. and Personal Air.

Study surveys of sponsors and businesses revealed that 18 full- and part-time jobs and $2.8 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Corning-Painted Post Airport was $3.9 million, supporting 27 jobs.

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Corning-Painted Post Type Direct Indirect Total

Employment 18 9 27 Income $1,322,100 $398,400 $1,720,500 Output $2,797,900 $1,117,200 $3,915,100 State and Local Taxes $193,600

Cortland County-Chase Field

Cortland County-Chase Field is a general aviation airport used primarily by aircraft owners and businesses in Cortland and Cortland County. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization users include Contrail Inc., Select Turbines and Components Inc. and MPS Farming.

Study surveys of sponsors and businesses revealed that 17 full- and part-time jobs and $2.3 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Cortland County-Chase Field was $3.1 million, supporting 25 jobs.

Cortland County-Chase Field Type Direct Indirect Total

Employment 17 8 25 Income $1,346,400 $249,200 $1,595,600 Output $2,347,100 $759,000 $3,106,100 State and Local Taxes $328,700

Dansville Municipal Airport

Dansville Municipal Airport is a general aviation airport in Livingston County, NY and is owned by the Town of North Dansville. Activity at the airport is primarily related to two flying clubs, the Dansville Pilots Association and the Finger Lakes Soaring Club. The significance of the airport to area commerce is in many ways defined by its business clientele. Aviation-related businesses linked to the airport include Kennedy Aviation, Wisconsin Aviation and Six Wings Inc.

Study surveys of sponsors and businesses revealed that 14 full- and part-time jobs and $2.2 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Dansville Municipal Airport was $2.8 million, supporting 20 jobs.

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Dansville Municipal Type Direct Indirect Total

Employment 14 6 20 Income $985,300 $207,700 $1,193,000 Output $2,200,100 $645,400 $2,845,500 State and Local Taxes $188,800

Dutchess County Airport

Dutchess County Airport is seven miles south of the City of Poughkeepsie, in the Town of Wappinger, and provides corporate and general aviation transportation services. The airport is located midway between Albany and New York City, and serves as a gateway to Dutchess County. It is considered an important infrastructure and transportation facility in the development of the County and the local economy. In addition, the airport hosts the Great Hudson Valley Balloon Race and Air Show and the War Birds Fly In. Dutchess County Airport supports jobs at each of the FBOs, as well as the jobs of staff and management of the airport. Regular corporate users of the airport include NetJets Aviation, , Banc of America Leasing and Capital, Hormel Foods Corporate Services, Acadia Transport Inc., Wells Fargo Bank, Seneca Foods Corporation, Mass Air, Wingabago Inc. and Hawker Beechcraft Corporation.

Study surveys of sponsors and businesses revealed that 151 full- and part-time jobs and $32.1 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Dutchess County Airport was $44 million, supporting 238 jobs.

Dutchess County Type Direct Indirect Total

Employment 151 87 238 Income $9,551,400 $3,832,100 $13,383,500 Output $32,088,500 $11,959,000 $44,047,500 State and Local Taxes $2,784,100

East Hampton Airport

East Hampton Airport is a general aviation airport on the east end of Long Island. The airport serves the air transportation needs of resident users and those visiting second homes, along with business and corporate users. Prominent corporate and business users of the airport include NetJets Aviation, Center for Disease Detection, SBL Services International, Bombardier Aerospace, Seneca Foods Corporation, Coastal Wings Inc., Calvin Klein Studio, Auerbach Aeronautic Associates, Sounds Aircraft Flight Enterprises, Sound Aircraft Systems, Myers Aero

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Fuels, Hertz Corporation, Aviation Resources Inc., Wells Fargo, Cape Air and Banc of America Leasing and Capital.

Study surveys of sponsors and businesses revealed that 65 full- and part-time jobs and $8.6 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for East Hampton Airport was $12.6 million, supporting 91 jobs.

East Hampton Type Direct Indirect Total

Employment 65 26 91 Income $4,414,400 $1,398,400 $5,812,800 Output $8,606,600 $3,998,500 $12,605,100 State and Local Taxes $1,339,000

Finger Lakes Regional Airport

Finger Lakes Regional Airport is a general aviation airport near Seneca Falls in Seneca County. Activity at the airport improved with the involvement of Seneca County government, in collaboration with the private sector. Corporate aircraft and courier services are frequent users of the facility, bringing executives, technical staff and parts for manufacturing processes and equipment repair. Aviation-related businesses that rely on the airport include Milton Air and Citation Air, among others.

Study surveys of sponsors and businesses revealed that 15 full- and part-time jobs and $2.2 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Finger Lakes Regional Airport was $2.8 million, supporting 21 jobs.

Finger Lakes Regional Type Direct Indirect Total

Employment 15 6 21 Income $1,243,800 $200,500 $1,444,300 Output $2,168,800 $662,800 $2,831,600 State and Local Taxes $308,800

Floyd Bennett Memorial Airport

Floyd Bennett Memorial Airport is in Warren County, NY, approximately 45 miles north of Albany. The airport is used to accommodate business/corporate activity, as well as recreational flying. A previous survey of aircraft owners conducted on behalf of the airport indicated that one-third of the flights at the airport are for business purposes. Floyd Bennett

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Memorial supports on-airport employees of the county, the FBO and the FAA. Prominent corporate users of the airport include Airbill Inc., New Connermara, Northern Holdings, Indel Inc., Saratoga Aviation, NetJets Aviation, Rich Air, Cider House Aviation, Bank of America and Bombardier Aerospace Inc.

Study surveys of sponsors and businesses revealed that 37 full- and part-time jobs and $6.6 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Floyd Bennett Memorial Airport was $8.3 million, supporting 53 jobs.

Floyd Bennett Memorial Type Direct Indirect Total

Employment 37 16 53 Income $3,000,200 $614,400 $3,614,600 Output $6,611,500 $1,783,500 $8,395,000 State and Local Taxes $481,800

Francis S. Gabreski Airport

Francis S. Gabreski (Suffolk County) Airport is adjacent to the Village of Westhampton Beach in the Town of Southampton, Suffolk County, New York. The airport occupies approximately 1,451 acres of land three miles north of the Atlantic Ocean. Westhampton Beach is 78 miles east of New York City and has long been a popular summer vacation destination for residents of the metro area. Suffolk County Airport has three runways. Runway 6/24 is 9,000 feet long and 150 feet wide. Runways 1/19 and 15/33 are 5,000 feet long and 150 feet wide. Landside development, consisting of numerous military surplus buildings and approximately 12 acres of paved apron, is primarily on the west side of the airfield. The 106th Rescue Wing of the New York State Air National Guard (NYANG) occupies a 90-acre site in the southwest portion of airport property. Regular corporate users of the airport include NetJets Aviation, Wells Fargo, Banc of America Leasing Corporation, Bombardier Aerospace, Hawker Beechcraft, Gulfstream Aerospace, Bridgeport Associates Inc., Calvin Klein Studios, SheltAir, Malloy Inc., Hertz Rental Car, Enterprise Rental Car and Wachovia Financial Services.

Study surveys of sponsors and businesses revealed that 1,146 full- and part-time jobs and $89.2 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Gabreski Airport was $121.6 million, supporting 1,359 jobs. A major portion of this total comes from the Air National Guard unit located at the airport.

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Francis S. Gabreski Type Direct Indirect Total

Employment 1,146 213 1,359 Income $56,489,600 $10,742,900 $67,232,500 Output $89,176,800 $32,421,500 $121,598,300 State and Local Taxes $8,518,800

Fulton County Airport

The Fulton County Airport, two miles east of Johnstown, serves a variety of general aviation needs within eastern New York. Activities at the airport include corporate/business, recreational flying, aerial inspections, police/law enforcement, career training, medical shipments and real estate tours. The airport hosts Fulton County’s Annual Fireworks and a semi- annual Circus Benefit. Prominent corporate and institutional organization users of the airport have changed over the years but have included Benjamin Moore Paints, Walmart Regional Distribution Center and Spalding Sports Worldwide.

Study surveys of sponsors and businesses revealed that seven full- and part-time jobs and $1.6 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Fulton County Airport was $2.1 million, supporting 11 jobs.

Fulton County Type Direct Indirect Total

Employment 7 4 11 Income $492,500 $146,100 $638,600 Output $1,622,500 $473,500 $2,096,000 State and Local Taxes $121,000

Genesee County Airport

Genesee County Airport is a general aviation airport located near Batavia, midway between Buffalo and Rochester. The recent expansion of the runway to accommodate jet traffic has increased its role as a corporate aviation facility. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization users include Thunderun Aviation Corporation, Wells Fargo Bank Northwest, Sierra Alpha Aviation, Mercy Flight Western New York, Boshart Enterprises, New York State Police and Fifth Third Leasing Co.

Study surveys of sponsors and businesses revealed that 52 full- and part-time jobs and $13.8 million in expenditures are the direct result of on-airport businesses, including airport

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sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Genesee County Airport was $18.1 million, supporting 90 jobs.

Genesee County Type Direct Indirect Total

Employment 52 38 90 Income $6,184,700 $1,363,900 $7,548,600 Output $13,770,300 $4,357,300 $18,127,600 State and Local Taxes $1,097,600

Great Valley Airport

Great Valley Airport is a small general aviation airport located four miles northeast of Salamanca, New York. The airport serves the general aviation needs of Cattaraugus County. Study surveys of sponsors and businesses revealed that two full- and part-time jobs and $350,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Great Valley Airport was $460,000, supporting three jobs.

Great Valley Type Direct Indirect Total

Employment 2 1 3 Income $190,500 $38,300 $228,800 Output $346,700 $114,900 $461,600 State and Local Taxes $152,900

Griffiss International Airport

The 1,680-acre Griffiss International Airport features an impressive airfield, with a primary runway measuring 11,820 feet in length by 200 feet in width. The airfield has the capacity and approach capability to accommodate operations of all aircraft in the civil and military fleet, especially during periods of low visibility and poor weather conditions. Landside facilities consist of approximately 20 structures, including airport administrative and FBO offices; an aircraft rescue and fire fighting (ARFF) building; large conventional hangars for storage and aircraft maintenance; and, a set of five “nose dock” hangars that were once used for maintenance of B-52 aircraft. Griffiss Business and Technology Park has tenants such as Air Force Research Laboratory, Lockheed Martin, Goodrich Corporation, ITT Industries, a Family Dollar distribution center, Northeast Air Defense Sector and a variety of other businesses.

The airport’s economic impact was determined as part of an Airport Business Plan process in 2009. The results of that study revealed the economic impact of Griffiss International Airport is dynamic and will continue to expand and contract in the years to come. The effect of

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Empire Aero Center (EAC) on the county was significant, with the airport accounting for roughly $237.2 million in total output and nearly 510 jobs. For 2010 (with the exit of EAC), this impact was estimated to decrease to about $66.9 million in direct output and support of 510 jobs. Added to these numbers are the successive rounds of spending that occur in the local economy.

Griffiss International Type Direct Indirect Total

Employment 315 195 510 Income $14,732,300 $7,306,700 $22,039,000 Output $45,714,200 $21,216,900 $66,931,100 State and Local Taxes $3,423,600

The significance of the airport to area commerce is shown by the success of the associated Business & Technology Park, the location of several Maintenance/Repair/Overhaul operators on the airport, and by business and military fueling clientele that drive activity at the airport today. Prominent corporate and institutional organization users include BAE Systems, Air Force Research Laboratory, Defense Finance Accounting Service, Family Dollar Distribution Center and Lockheed Martin.

Hamilton Municipal Airport

Hamilton Municipal Airport is a general aviation airport in the Syracuse region of central New York. The airport FBO, Valley View Aviation, provides services that include flight instruction, fuel and maintenance. Mid-York Business Airpark is adjacent to the airport. The significance of the airport to area commerce is in many ways defined by its business clientele.

Study surveys of sponsors and businesses revealed that 32 full- and part-time jobs and $4.3 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Hamilton Municipal Airport was $6.1 million, supporting 48 jobs.

Hamilton Municipal Type Direct Indirect Total

Employment 32 16 48 Income $2,358,600 $639,200 $2,997,800 Output $4,271,100 $1,865,400 $6,136,500 State and Local Taxes $564,800

Hornell Municipal Airport

Hornell Municipal Airport is a general aviation airport that provides general aviation access to personal users and various industrial and service-related industries in northwest

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Steuben County and neighboring Allegany County. The airport is owned by the City of Hornell and is operated through a contract with an FBO, Sterling Airways Inc. Prominent corporate and institutional organization users include NetJets Aviation, City of Hornell Industrial Development Agency and Frank H. Robinson and Company Inc.

Study surveys of sponsors and businesses revealed that five full- and part-time jobs and $381,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Hornell Municipal Airport was $526,000, supporting six jobs.

Hornell Municipal Type Direct Indirect Total

Employment 5 1 6 Income $197,200 $50,900 $248,200 Output $381,300 $144,600 $525,900 State and Local Taxes $42,900

Joseph Y. Resnick Airport

Joseph Y. Resnick Airport is one mile northeast of Ellenville, NY, and serves general aviation needs in the Hudson Valley. The airport is used primarily for recreational flying and is a gateway for resort visitors to the Catskill Mountains. The Town of Wawarsing Sheriff’s substation is located in the terminal.

Study surveys of sponsors and businesses revealed that nine full- and part-time jobs and $879,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Joseph Y. Resnick Airport was $1.28 million, supporting 12 jobs.

Joseph Y. Resnick Type Direct Indirect Total

Employment 9 3 12 Income $429,400 $133,700 $563,100 Output $879,000 $399,000 $1,278,000 State and Local Taxes $73,700

Kingston-Ulster Airport

Kingston-Ulster Airport is a general aviation airport serving the Upper Hudson area in Ulster County. Law enforcement agencies at the state and local levels and emergency service providers routinely use the airport. River Aviation also maintains a flight school there.

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Study surveys of sponsors and businesses revealed that 10 full- and part-time jobs and $2.3 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Kingston-Ulster Airport was $3.2 million, supporting 17 jobs.

Kingston-Ulster Type Direct Indirect Total

Employment 10 7 17 Income $885,900 $275,800 $1,161,700 Output $2,321,800 $860,100 $3,181,900 State and Local Taxes $171,600

Lake Placid Airport

Lake Placid Airport serves an important general aviation market niche in Essex County in the Adirondack Mountains region. Aviation activities occurring at the airport include significant business, recreational flying, police/law enforcement, aerial photography and surveying, search and rescue, emergency medical evacuation, operated by Adirondack Flying Service, flight instruction and air freight.

Study surveys of sponsors and businesses revealed that 27 full- and part-time jobs and $5.8 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Lake Placid Airport was $7.1 million, supporting 40 jobs.

Lake Placid Type Direct Indirect Total

Employment 27 13 40 Income $2,027,200 $415,100 $2,442,300 Output $5,798,900 $1,328,400 $7,127,300 State and Local Taxes $384,900

Ledgedale Airpark

Ledgedale Airpark is three miles southeast of Brockport, NY, and serves general aviation needs in the greater Rochester area. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization users include Air 2, SOMA Corporation and Big Fella Enterprises Inc. The airport also offers flight instruction and aircraft rental.

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Study surveys of sponsors and businesses revealed that 37 full- and part-time jobs and $4.5 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Ledgedale Airpark was $7.9 million, supporting 62 jobs.

Ledgedale Airpark Type Direct Indirect Total

Employment 37 25 62 Income $2,361,000 $1,191,000 $3,552,000 Output $4,492,100 $3,383,100 $7,875,200 State and Local Taxes $488,300

Lt. Warren Eaton Airport

Lt. Warren Eaton Airport serves the general aviation market in Chenango County. Aviation activities occurring at the airport include business, recreational flying, aerial inspections, police/law enforcement, aerial photography and surveying, career training and education, search and rescue, emergency medical evacuation, environmental patrol, forest firefighting and traffic/news reporting. The airport hosts an annual “airport day” that starts with breakfast and daylong activities to promote aviation. Air shows have also been conducted at the airport. Prominent corporate users have included Procter and Gamble.

Study surveys of sponsors and businesses revealed that eight full- and part-time jobs and $747,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Lt. Warren Eaton Airport was $1 million, supporting 11 jobs.

Lt. Warren Eaton Type Direct Indirect Total

Employment 8 3 11 Income $419,200 $79,100 $498,300 Output $746,800 $259,100 $1,005,900 State and Local Taxes $89,800

Malone-Dufort Airport

Malone-Dufort Airport is less than 12 miles from the Canadian border and just west of the Malone central business district. The airport serves general aviation needs in the area including business/corporate and recreational flying.

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Study surveys of sponsors and businesses revealed that five full- and part-time jobs and $464,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Malone-Dufort Airport was $621,000, supporting six jobs.

Malone-Dufort Type Direct Indirect Total

Employment 5 1 6 Income $202,800 $52,900 $255,700 Output $464,000 $156,700 $620,700 State and Local Taxes $32,300

Montauk Airport

Montauk Airport is a privately owned airport at the eastern tip of Long Island, three miles northeast of Montauk. The airport serves general aviation and tourism needs in the eastern Long Island area. Aviation activities occurring at the airport include business/corporate, tourism and recreational flying.

Study surveys of sponsors and businesses revealed that five full- and part-time jobs and $594,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Montauk Airport was $877,000, supporting seven jobs.

Montauk Type Direct Indirect Total

Employment 5 2 7 Income $273,700 $97,400 $371,100 Output $594,400 $282,100 $876,500 State and Local Taxes $79,800

Niagara Falls International Airport

The Niagara Falls International Airport is transitioning from a general aviation and military facility to add airline traffic. Current service from Direct Air connects the airport to southern tourist destinations, while Jet Rainbow offers three daily flights to New York City. The airport is operated by NFTA, which sees an opportunity to market the airport for international airline and charter flights. Tourism is the top industry in Niagara Falls and the airport is poised to take advantage of better pricing points than those in Toronto, Canada. Aviation activities at the airport include significant military, airline, tourism, business/corporate, recreational flying, police/law enforcement, traffic/news reporting and prisoner transport. The airport operates under a joint agreement with the military. International charter and cargo activities are also

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The significance of the airport to area commerce is in many ways defined by its business clientele. In addition to the military, charter and cargo carriers, prominent corporate and institutional organizations, airport users include Xtra Airways, NetJets Aviation, MPS Farmings, SE Aviation, Quest Diagnostics, Calspan Corporation, USA Jet Airlines, New York Power Authority, , Wells Fargo Bank Northwest and Manitoba Aeronautical Corp.

Study surveys of sponsors and businesses revealed that 1,241 full- and part-time jobs and $100.9 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, military spending, and visitor spending at the airport. Including indirect expenditures, the total impact for Niagara Falls International Airport was $158.6 million, supporting 1,706 jobs. Most of these jobs are generated by the military installations at the field.

Niagara Falls International Type Direct Indirect Total

Employment 1,241 465 1,706 Income $65,513,200 $19,251,000 $84,764,200 Output $100,893,900 $57,696,500 $158,590,400 State and Local Taxes $9,960,000

Oneonta Municipal Airport

Oneonta Municipal Airport is the closest paved airport to Cooperstown, which is located 20 miles to the north. The airport features services such as air ambulance, air cargo, air taxi and charter service. Tourism is one of Otsego County’s largest industries. In this regard, Oneonta Municipal is the primary general aviation gateway to Cooperstown, home of the National Baseball Hall of Fame. During major ceremonies or inductions at Cooperstown, Oneonta Municipal is filled to parking capacity with high-performance aircraft. The airport plays a key role in the transportation of sports figures, dignitaries and other visitors to the area. While the airport is used heavily in the summer for regional attractions, it serves many other strategic purposes including business transportation, new business development, medevac, law enforcement and others.

Study surveys of sponsors and businesses revealed that 15 full- and part-time jobs and $1.6 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Oneonta Municipal Airport was $2.2 million, supporting 20 jobs.

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Oneonta Municipal Type Direct Indirect Total

Employment 15 5 20 Income $852,800 $212,700 $1,065,500 Output $1,595,000 $633,400 $2,228,400 State and Local Taxes $167,800

Orange County Airport

Orange County Airport is owned by Orange County and serves as a full-service general aviation facility. The airport is considered an important component of business and corporate travel infrastructure due to the county’s high number of corporations, headquarters locations and administrative offices. The airport offers charter, flight instruction and aircraft rental. Prominent corporate and institutional organization users include 44X Inc., Aztruck Air, TM Aero, Aero Service Unlimited Inc., North East Aero, Taylor Aviation, Freedom Air Inc. and Unlimited Aircraft Inc.

Study surveys of sponsors and businesses revealed that 22 full- and part-time jobs and $3.9 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Orange County Airport was $5.9 million, supporting 37 jobs.

Orange County Type Direct Indirect Total

Employment 22 15 37 Income $1,125,300 $700,900 $1,826,200 Output $3,868,700 $2,073,600 $5,942,300 State and Local Taxes $311,400

Oswego County Airport

Oswego County Airport is a general aviation airport serving local and corporate/business aviation needs. The airport, near Fulton, has intersecting runways of 5,200 feet and 4,000 feet. Prominent corporate and institutional organization users include Lake Placid Flying Service, NetJets Aviation, Palm Air and Aviation and Electronic Services.

Study surveys of sponsors and businesses revealed that 19 full- and part-time jobs and $1.9 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Oswego County Airport was $2.5 million, supporting 25 jobs.

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Oswego County Type Direct Indirect Total

Employment 19 6 25 Income $1,060,000 $181,200 $1,241,200 Output $1,935,300 $600,800 $2,536,100 State and Local Taxes $254,700

Penn Yan Airport

Penn Yan Airport is a general aviation airport serving aviation needs in the Finger Lakes region. The airport has two major businesses on-site, Penn Yan Aero and Seneca Flight Operations. Seneca Flight Operations manages jet aircraft for companies in the region. Five jets are currently based at the airport. The Penn Yan Flying Club was the original airport owner and supports 150 to 200 members. Penn Yan Flying Club offers training, as well as aircraft and hangar space for club members. Other services provided at the airport include engine rebuilding and air freight and corporate charter. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization users include Seneca Foods Corporation, NetJets Aviation, Bombardier, Gulfstream Aerospace Corporation and Wells Fargo.

Study surveys of sponsors and businesses revealed that 96 full- and part-time jobs and $42.3 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Penn Yan Airport was $52.8 million, supporting 199 jobs.

Penn Yan Type Direct Indirect Total

Employment 96 103 199 Income $18,873,600 $3,190,400 $22,064,000 Output $42,298,100 $10,545,700 $52,843,800 State and Local Taxes $4,068,700

Perry-Warsaw Airport

Perry-Warsaw Airport is a general aviation airport serving aviation needs in Wyoming County. The airport has a small number of based aircraft and caters mostly to private flying and itinerant business use.

Study surveys of sponsors and businesses revealed that 14 full- and part-time jobs and $1.6 million in expenditures are the direct result of on-airport businesses, including airport

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New York Statewide Airport Economic Impacts Study May 2011 sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Perry-Warsaw Airport was $2 million, supporting 17 jobs.

Perry-Warsaw Type Direct Indirect Total

Employment 14 3 17 Income $951,700 $118,900 $1,070,600 Output $1,626,400 $381,100 $2,007,500 State and Local Taxes $193,400

Piseco Airport

Piseco Airport in Hamilton County serves general aviation needs in the Adirondack region. The airport is within the Adirondack Park, a mountainous wilderness tourism area. Aviation activities occurring at the airport include business/corporate, recreational flying, aerial photography, search and rescue, medical shipments and patient transfer and environmental patrol. The airport serves as a gateway for resort visitors to the region because it is within the Adirondack Park. Visitors can participate in hiking, mountain biking, cross-country skiing and snowmobiling. The New York State Department of Environmental Conservation uses the airport regularly as does Golden Eagle Wings, Adventure Air and Brave Cow Equipment.

Study surveys of sponsors and businesses revealed that three full- and part-time jobs and $197,000 in expenditures are the direct result of airport sponsor and other expenditures at the airport. Including indirect expenditures, the total impact for Piseco Airport was $228,000, supporting four jobs.

Piseco Type Direct Indirect Total

Employment 3 1 4 Income $80,300 $8,200 $88,500 Output $197,000 $31,400 $228,400 State and Local Taxes $11,400

Potsdam Municipal Airport

Potsdam Municipal Airport is in the Town of Potsdam, St. Lawrence County. From a regional perspective, the airport is approximately 17 miles southeast of the St. Lawrence Seaway and the Canadian border. The airport serves most types of light general aviation aircraft and provides a base for economic development in the region. The United Parcel Service (UPS) facility adjacent to Potsdam Municipal Airport is the largest employer that directly uses the airport for business purposes. Other corporate and institutional users of the airport include

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itinerant flights from Clarkson University, the Civil Air Patrol, the New York State Police, Mercy Flight, Life Flight, EMS Services of New York Inc., NetJets Aviation and weekly freight shipment outgoing.

Study surveys of sponsors and businesses revealed that 59 full- and part-time jobs and $19.2 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Potsdam Municipal Airport was $25.8 million, supporting 121 jobs.

Potsdam Municipal Type Direct Indirect Total

Employment 59 62 121 Income $8,002,900 $2,340,600 $10,343,500 Output $19,167,900 $6,675,700 $25,843,600 State and Local Taxes $1,395,600

Republic Airport

Republic Airport is one mile east of Farmingdale and is an important general aviation business airport on Long Island. Republic Airport serves as a general aviation reliever airport and has a significant corporate aviation fleet. In addition to serving as a major corporate aviation facility, the airport also has flight training (with seven flight schools), charter activity, aerial advertising and filming, aircraft sales, aircraft catering, aircraft cleaning and maintenance and provides a base for tours of Atlantic City.

The airport has two FBOs, SheltAir Aviation Services Farmingdale and Atlantic Aviation Services. Owned by NYSDOT, Republic Airport is privately managed under contract to URS. The airport is also home to the American Air Power Museum and the Long Island Historical Society.

Republic Airport has the highest economic impact of any general aviation airport in New York State. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization users include Farmingdale State University, NetJets Aviation, Geico, Wells Fargo, Coca-Cola, Allegro Air Corporation, Vitamin World Inc., Mustang Sally Aviation and Bank of America.

Study surveys of sponsors and businesses revealed that 874 full- and part-time jobs and $147.1 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Republic Airport in 2009 was $214.1 million, supporting 1,384 jobs.

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Republic Type Direct Indirect Total

Employment 874 510 1,384 Income $54,119,400 $23,906,100 $78,025,500 Output $147,093,600 $67,050,700 $214,144,300 State and Local Taxes $13,490,500

Saratoga County Airport

Saratoga County Airport is a general aviation airport serving aviation needs in the Capital District. The FBO and on-site manager for the airport is North American Flight Service. Activities at the airport include corporate/business, recreational flying, charter, aircraft sales and rentals, aircraft maintenance, and flight training. The airport supports the region’s local business activity, including the summer horse racing season in August.

Study surveys of sponsors and businesses revealed that 36 full- and part-time jobs and $10.4 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Saratoga County Airport was $13.4 million, supporting 59 jobs.

Saratoga County Type Direct Indirect Total

Employment 36 23 59 Income $4,926,900 $936,000 $5,862,900 Output $10,388,700 $2,995,000 $13,383,700 State and Local Taxes $853,500

Schenectady County Airport

Schenectady County Airport is a general aviation airport serving aviation needs in the Capital District. The airport serves as the primary reliever for Albany International Airport. The airport has two major businesses on-site, Richmor Aviation and Fortune Air Aviation. The New York Air National Guard 109th Airlift Wing is based at the airport (Stratton Air National Guard Base) and conducts a significant level of annual operations with the C-130 cargo aircraft. The Unit conducts military and scientific missions in the Arctic and scientific work in the Antarctic in support of the National Science Foundation’s work. The Empire State Aerosciences Museum is at the airport. The airport also hosts air shows and supports charter and flight training activities, emergency medical evacuation and traffic/news reporting. The significance of the airport to area commerce is in many ways defined by its business clientele. Prominent corporate and institutional organization users include Bombardier Aerospace, NetJets Aviation, Cushing

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Stone Company Inc., Chieftain Ltd., Seneca Foods Corporation, Wachovia Financial Services Inc. and Richmor Aviation Inc.

The airport’s economic impact was determined as part of a recent Airport Business Plan. The study revealed the economic impact of Schenectady County Airport accounts for more than $115.3 million in direct output and supports 1,407 jobs. Including indirect expenditures, the total impact for Schenectady County Airport was $152.4 million, supporting 1,724 jobs.

Schenectady County Type Direct Indirect Total

Employment 1,407 317 1,724 Income $69,015,900 $12,441,400 $81,457,300 Output $115,313,300 $37,115,400 $152,428,700 State and Local Taxes $8,735,000

Schroon Lake Airport

Schroon Lake Airport is a general aviation airport east of Interstate 87, approximately 18 miles west of Ticonderoga. The airport is a low-activity facility, used mostly by local pilots and itinerant visitors to the Adirondack Park.

Study surveys of sponsors and businesses revealed that two full- and part-time jobs and $144,000 in expenditures are the direct result of airport sponsor and other expenditures at the airport. Including indirect expenditures, the total impact for Schroon Lake Airport was $185,000, supporting two jobs.

Schroon Lake Type Direct Indirect Total

Employment 2 0 2 Income $78,500 $12,900 $91,400 Output $143,800 $40,700 $184,500 State and Local Taxes $12,700

Sidney Municipal Airport

Sidney Municipal Airport is operated and managed by the Village of Sidney. The airport serves a general aviation role in the Southern Tier region. The airport’s FBO, Delaware Aviation, provides flight training, charter, and aircraft rental and maintenance. Other services at the airport include air freight, air ambulance, cargo handling and Glider Towing. The airport also hosts two breakfast fly-ins each year to promote general aviation.

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Study surveys of sponsors and businesses revealed that 13 full- and part-time jobs and $2.3 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Sidney Municipal Airport was $3.0 million, supporting 18 jobs.

Sidney Municipal Type Direct Indirect Total

Employment 13 5 18 Income $768,900 $203,700 $972,600 Output $2,329,200 $658,900 $2,988,100 State and Local Taxes $150,800

Skaneateles Aero Drome

Located in Onondaga County near Syracuse, Skaneateles Aero Drome serves general aviation interests in central New York. Activities at the airport include flight training, aerial tours and sightseeing and personal flying.

Study surveys revealed that one part-time job and $47,000 in expenditures are the direct result of airport sponsor and other expenditures at the airport. Including indirect expenditures, the total impact for Skaneateles Aero Drome was $78,000, supporting one job.

Skaneateles Aero Drome Type Direct Indirect Total

Employment 1 0 1 Income $20,100 $10,800 $30,900 Output $47,100 $31,200 $78,300 State and Local Taxes $5,300

Sky Acres Airport

Sky Acres Airport, in the Upper Hudson region, is a general aviation airport serving local and itinerant users. Several aircraft maintenance facilities are on-site; there are also aircraft sales and rental firms and a restaurant. Prominent corporate and institutional organization airport have fluctuated but have included IBM Poughkeepsie, Dutchess County Government, St. Francis Hospital, Wappingers Central School District, Vassar College and NYSDOT. Local companies include White Air Service, The Perfect Landing Café, Cawley Aviation Inc. and Styles Logistics Inc.

Study surveys of sponsors and businesses revealed that 31 full- and part-time jobs and $3 million in expenditures are the direct result of on-airport businesses, including airport sponsor

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New York Statewide Airport Economic Impacts Study May 2011 expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Sky Acres Airport was $4.4 million, supporting 42 jobs.

Sky Acres Type Direct Indirect Total

Employment 31 11 42 Income $1,697,700 $480,400 $2,178,100 Output $3,005,400 $1,431,600 $4,437,000 State and Local Taxes $452,600

South Albany Airport

South Albany Airport serves general aviation needs in the Capital District. Activities at South Albany Airport include corporate/business, recreational flying, police/law enforcement, aerial photography and career training. The airport is used as a staging area for community events and serves as a gateway for visitors to the region. Prominent users of the airport have fluctuated but have included Walmart, Eckert Drugs, General Dollar, Great American Food store management and Eldridge Preserve.

Study surveys of sponsors and businesses revealed that nine full- and part-time jobs and $1 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for South Albany Airport was $1.3 million, supporting 12 jobs.

South Albany Type Direct Indirect Total

Employment 9 3 12 Income $604,800 $118,900 $723,700 Output $1,000,400 $325,700 $1,326,100 State and Local Taxes $115,400

Sullivan County International Airport

Sullivan County International Airport is located in Monticello. The general aviation airport is used for flight training, personal flying and business/corporate activities. Aerial tours, aircraft maintenance and aerobatics training are also provided at the airport. The significance of the airport to area commerce is underscored by its business clientele. In this regard, prominent users include NetJets, MBL Aviation Services Inc., Cable Air, Shamrock, Woodstock Air and First Choice Equipment.

Study surveys of sponsors and businesses revealed that 63 full- and part-time jobs and $19.4 million in expenditures are the direct result of on-airport businesses, including airport

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sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Sullivan County International Airport was $26.5 million, supporting 119 jobs.

Sullivan County International Type Direct Indirect Total

Employment 63 56 119 Income $9,668,400 $2,205,200 $11,873,600 Output $19,417,900 $7,055,300 $26,473,200 State and Local Taxes $1,752,000

Ticonderoga Municipal Airport

Ticonderoga Municipal Airport serves general aviation needs in northern New York. Activities at the airport include business and recreational flying. In the past, prominent corporate and institutional organization users have included International Paper and Bernier, Peck and Gozalkowski & Carr Realty.

Study surveys of sponsors and businesses revealed that nine full- and part-time jobs and $809,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Ticonderoga Municipal Airport was $1 million, supporting 11 jobs.

Ticonderoga Municipal Type Direct Indirect Total

Employment 9 2 11 Income $405,300 $73,200 $478,500 Output $808,800 $231,400 $1,040,200 State and Local Taxes $55,300

Tri-Cities Airport

Tri-Cities Airport is in the Village of Endicott. The publicly owned airport offers corporate and private aviation services, including pilot instruction. The airport is near Binghamton and serves a significant general aviation role in that area.

The airport’s economic impact was determined as part of a recent Airport Business Plan. The results of that study revealed the economic impact of Tri-Cities Airport to account for more than $1.9 million in expenditures, supporting 14 jobs.

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New York Statewide Airport Economic Impacts Study May 2011

Tri-Cities Type Direct Indirect Total

Employment 9 5 14 Income $301,300 $191,500 $492,800 Output $1,280,600 $634,300 $1,914,900 State and Local Taxes $91,700

Wellsville Municipal Airport

Wellsville Municipal Airport is two miles southwest of the Village of Wellsville; the airport provides general aviation services for regional air transportation. With the longest runway in the service area (5,300 feet), the airport can accommodate general aviation business jet aircraft up to Gulfstream III class. Aviation services available at the airport include air freight, air cargo, charter service, flight training, aircraft rental, aircraft sales, hangar rentals, apron tie-downs, fuel sales, major aircraft repair and scheduled aircraft maintenance. The significance of the airport to area commerce is in many ways defined by its business clientele.

Study surveys of sponsors and businesses revealed that 22 full- and part-time jobs and $3.7 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Wellsville Municipal Airport was $4.6 million, supporting 30 jobs.

Wellsville Type Direct Indirect Total

Employment 22 8 30 Income $1,370,200 $244,600 $1,614,800 Output $3,745,600 $807,800 $4,553,400 State and Local Taxes $298,600

Whitford’s Airport

Whitford’s Airport is in Weedsville. The general aviation airport offers business and private aviation services, including pilot instruction and aerial tours. Study surveys of sponsors and businesses revealed that seven full- and part-time jobs and $574,000 in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Whitford’s Airport was $713,000, supporting nine jobs.

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Whitford’s Type Direct Indirect Total

Employment 7 2 9 Income $208,600 $45,800 $254,400 Output $573,700 $139,600 $713,300 State and Local Taxes $57,200

Williamson-Sodus Airport

The Williamson-Sodus Airport, located midway between Syracuse and Rochester, serves general aviation users in the Finger Lakes region. Aviation services available at the airport include corporate/business, recreational flying, aerial inspection, staging area for community events, police/law enforcement, aerial photography, search and rescue, emergency medical evacuation and prisoner transport. The airport hosts fly-in breakfasts and accommodates activity during the annual Williamson Apple Blossom Festival. The Coast Guard and Civil Air Patrol also operate at Williamson-Sodus Airport.

Study surveys of sponsors and businesses revealed that 10 full- and part-time jobs and $2.1 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Williamson-Sodus Airport was $2.7 million, supporting 15 jobs.

Williamson-Sodus Type Direct Indirect Total

Employment 10 5 15 Income $901,800 $170,400 $1,072,200 Output $2,073,800 $588,800 $2,662,600 State and Local Taxes 152,200

Wurtsboro-Sullivan County Airport

Wurtsboro-Sullivan County Airport serves general aviation needs in the Hudson Valley region. Primary activities at the airport include the Civil Air Patrol and recreational and personal flying.

Study surveys of sponsors and businesses revealed that 10 full- and part-time jobs and $1.2 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for Wurtsboro-Sullivan County Airport was $1.6 million, supporting 13 jobs.

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Wurtsboro-Sullivan County Type Direct Indirect Total

Employment 10 3 13 Income $577,600 $142,200 $719,800 Output $1,170,100 $446,400 $1,616,500 State and Local Taxes $136,400

Other Small Public-Use Airports - Aggregated

The remaining public-use airports (15) were aggregated in the analysis due to their small size and low levels of business activity at the airports. The airports aggregated are:

 Argyle  Mattituck  Bayport  North Buffalo Suburban   Pine Hill  Cooperstown-Westville  Randall  Elizabeth Field  Royalton  Frankfort-Highland  Spadaro  Freehold  Warwick Municipal  LeRoy

Study surveys of sponsors and businesses for these airports revealed that 58 full- and part-time jobs and $6.9 million in expenditures are the direct result of on-airport businesses, including airport sponsor expenditures, and visitor spending at the airport. Including indirect expenditures, the total impact for these 15 airports was $12.3 million, supporting 91 jobs.

Other Small Public Airports – Aggregated Type Direct Indirect Total

Employment 58 33 91 Income $4,107,600 $1,948,000 $6,055,600 Output $6,878,600 $5,459,700 $12,338,300 State and Local Taxes $1,086,300

Public-Use Heliports – Aggregated

Five public-use heliports were included in the analysis and were aggregated due to their location and function. The heliports that were aggregated for analysis included:

 Downtown. Manhattan/Wall Street  Southampton  East 34th Street  West 30th Street  Haverstraw

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Similar to the airports, study surveys of sponsors and businesses for these heliports revealed that 277 full- and part-time jobs and $34.2 million in expenditures are the direct result of heliport businesses, including sponsor expenditures, and visitor spending. Including indirect expenditures, the total impact for these five heliports was $59.4 million, supporting 416 jobs.

Public-Use Heliports - Aggregated Type Direct Indirect Total

Employment 277 139 416 Income $18,076,600 $9,147,300 $27,223,900 Output $34,153,700 $25,198,800 $59,352,500 State and Local Taxes $5,929,900

Privately Owned, Private-Use Airports - Aggregated

There are more than 300 privately owned, private-use airports in New York State. These airports are primarily made up of turf strips at a farm or rural residence. They serve the private interests and general aviation needs of their owners and specific acquaintances that have permission to the use facilities. It is estimated that 146 aircraft are based at these private facilities. Using survey information about average annual expenditures for these types of aircraft, an estimate of the aggregated spending, employment, and output of these facilities was made. In total, this segment of aviation supports 18 jobs and $2.4 million in expenditure output.

Privately-Owned, Private-Use Airports Type Direct Indirect Total

Employment 12 6 18 Income $888,300 $370,800 $1,259,100 Output $1,367,400 $1,035,900 $2,403,300 State and Local Taxes $234,100

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Appendix A: Study Methodology

New York Statewide Airport Economic Impacts Study May 2011

Appendix A Study Methodology

O ADEQUATELY MEASURE ECONOMIC IMPACTS, AN ANALYSIS that follows an industry- accepted methodology was used in this Study. The methodology used, the input-output method, has been accepted by the FAA and is by far the most prevalent used to analyze T 1 aviation impacts . That methodology first identifies the direct spending and employment at airports (called direct impacts) and includes the direct spending at off-airport sites such as hotels and restaurants. All data collected and impacts reported are for the calendar year 2009. Armed with this information, regional multipliers are applied to the data to determine the multiplied impacts of direct spending (called indirect impacts). The technical processes involved in developing the analysis included the following:

● Direct Impacts ● Indirect Impacts

It is important to note that for purposes of this Study, surveys were used to gather data on impacts for 60 airports, data from business plans prepared by the Aviation Services Bureau of NYSDOT was used for five airports, and data from the PANY&NJ was obtained for three airports. These studies all used similar methodologies and provided a means to compile a significant amount of economic data to relate the impacts of New York’s aviation system.

Direct Impacts

By way of definition for this Study, direct impacts are associated with providers and users of services at the airport. They are immediate consequences of airport economic activity. The value of direct impacts is the sum of all payroll, capital expenditures, operating and maintenance costs, taxes and fees incurred by providers and users of services at the airport. Direct impacts include the employment and expenditures related to on-airport contracted employees such as construction workers or contracted air traffic control employees. Direct impacts also include off-site economic activities that are attributable to the airport. The value of these impacts is the sum of the fees and charges paid, time and cost savings, expenses related to food, lodging, ground transportation and similar outlays.

The collection of data concerning direct impacts was essential for the accurate assessment of overall economic impacts of aviation. That is why time and effort were expended to survey various components of aviation in New York, such as airport management and on-airport businesses. Response to these surveys varied by airport, but overall, much valuable information was collected. In some cases, extrapolation of the survey information was needed to cover non- respondents. For example, on-airport tenants were asked to specify their annual expenditures. From this statewide pool of information, averages for airports with similar tenant profiles and

1 ACRP Synthesis 7, Airport Economic Impact Methods and Models, A Synthesis of Airport Practice, Transportation Research Board, Airport Cooperative Research Program, 2008.

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New York Statewide Airport Economic Impacts Study May 2011 activity levels could be compiled and extrapolated for non-respondents. In other cases, the IMPLAN model was used to estimate expenditures for businesses and organizations for which employment levels were known.

Collection of Data for Direct Impacts

There were a number of ways that the direct impacts of aviation in New York were estimated. These included surveys, published data and visitor expenditure estimates. From the surveys, specific questions were asked concerning on-airport spending and employment. This spending came from one of two primary sources: the airport sponsor, and on-airport businesses and employers. From published data, information regarding average wages and labor cost components in various industries was collected. For the visitor spending, estimates of the numbers of actual visitors and their per-capita spending was made, based upon both general aviation and airline passenger statistics. Both the survey data and the published data collected were for the calendar year 2009, and could be interpolated and extrapolated to estimate direct impacts of aviation.

Airport Sponsor Survey

In addition to questions about the operational activity and number of businesses and employers located at an airport, the Airport Sponsor Survey requested information concerning the number of full- and part-time administration/operations employees. Also, the survey requested an estimate of the annual expenditures for airport operations and employment over the last five years. This information concerning employment and sponsor expenditures on an airport was considered direct airport-related impact and was not duplicated by other sources. The data was used directly from the surveys to input the direct spending component for the airport sponsor.

On-Airport Employer Survey

The On-Airport Employer Survey was distributed to all employers located on New York airports. Employers such as Fixed Base Operators (FBOs), corporate flight departments, the Air National Guard and so on, were included in the aviation-related impact base. Key questions in this survey included the number of full- and part-time employees and estimated annual expenditures. The direct economic impact of these employers could be measured from the responses. For most of these employers, estimates of wages were made using the IMPLAN model by classifying the industry type of employment base. While these numbers represent industry averages, they do provide a reasonable estimate of what is spent by on-airport employers for wages and salaries. In addition, using final-demand multipliers, an estimate of the final demand output was made using the employment numbers.

Off-Airport Business Survey

In addition to surveys of on-airport activity, NYSDOT desired an additional look at off- airport business reliance on airports and air travel. Therefore, concurrent with previously

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New York Statewide Airport Economic Impacts Study May 2011 described surveys of airport sponsors and on-airport employers, a third survey was administered. This survey was conducted for off-airport businesses of significant size to determine the importance of air access to their operation.

This off-airport business survey was administered via electronic mail to 2,500 employers in New York State, with a primary focus on companies with 50 or more employees. An e-mail invitation to complete a survey was sent, providing a link to the survey website. The survey was distributed directly to primary contacts at these companies, being the president, chief executive officer or owner. Unfortunately, while the survey effort was considered a statistical success in e- mail marketing terms (between 1 percent and 2 percent of recipients clicked through to the survey website), just 16 surveys were completed. While this is a small sample, some helpful insights were gained, including:

 Respondents averaged 106 full-time and 137 part-time employees.  Respondent companies averaged gross revenues of more than $61 million in 2009, with a total of over $490 million reported.  80 percent of respondents reported that their businesses are dependent on the local airport.

As a supplement to the electronic mail survey, additional information on business/corporate users of airports in New York State was pursued. In this regard, data available from FlightAware was queried to identify private flight departures by companies to New York airports. Other parameters of the data analysis included:

 Focus on Business Class Airports: The analysis focused on 73 small, medium and large business-class airports as defined in Section 1.3 and excluded 12 major airline airports. In this way, the analysis was not mixed with activity data from hub airports, such as JFK, LaGuardia, Albany, Syracuse, Rochester and others.

 12-month Activity Period: Data analyzed for this survey was for the 12-month period from September 2009-August 2010.

 Attention to Aircraft Type: The analysis excluded single-engine piston aircraft, selecting instead to focus on private flight activity by companies operating jet and multiengine turboprop/piston aircraft. Combined with the focus on business-class airports, this parameter served as the control point for reducing data generated by private flights that were more recreational and/or personal in nature, rather than for business purposes.

 Fractional Owner Operators Included: The analysis also included private flights operated by fractional owners of aircraft (i.e., NetJets, , and others) as well as charter operators. Inclusion of fractional owners and charter operators in the analysis allowed the retention of significant private flights occurring for business purposes in New York State that would have otherwise not been considered.

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Using these parameters, the survey analysis returned nearly 10,100 private flights by jet and multiengine aircraft to business class airports in the state during the 12-month period. In terms of volume, 25 percent of these flights originated within New York, while 23 percent originated in Massachusetts. Other states with a higher percentage of originating flights included Florida, Delaware and Pennsylvania. Table A-1 serves as a representative snapshot of the diversity of businesses accessing New York State via general aviation, both in terms of industry segments and geography.

Table A-1 – Off-Airport Business Survey Industry/Company Headquarters Location Products & Services Coca-Cola Company Atlanta, GA Hormel Foods Austin, MN Johnson & Johnson Brunswick, NJ Target Corporation Minneapolis, MN Finance & Insurance Bank of America Charlotte, NC Fifth Third Bank Cincinnati, OH Wells Fargo San Francisco, CA GEICO Corporation Chevy Chase, MD Higher Education Bowling Green State University Bowling Green, OH Delaware State University Dover, DE Farmingdale State University Farmingdale, NY Ohio University Athens, OH Aerospace Bombardier Aerospace Corporation Montreal, QC, Canada Cessna Aircraft Group Wichita, KS Gulfstream Aerospace Savannah, GA Pittsburgh Jet Center Pittsburgh, PA State Government Commonwealth of Pennsylvania Harrisburg, PA Kentucky State Police Frankfort, KY Maryland State Police Pikesville, MD State of Tennessee Nashville, TN Energy, Utilities & Transportation ConocoPhillips Houston, TX Nebraska Public Power District Norfolk, NE New York Power Authority White Plains, NY Pan Am Railways North Billerica, MA

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New York Statewide Airport Economic Impacts Study May 2011

The results of this analysis speak directly to the attractiveness of New York business class airports to companies conducting business in the state. This snapshot of business activity provides support for estimates of visitor spending impacts that follow, as well as indirect impacts.

Visitor Spending

Visitor spending includes expenditures at local hotels, restaurants and other businesses as a result of airport use. As can be imagined, a survey effort needed to track the expenditures of airport users in New York would require resources much greater than those available for this effort. Therefore, a surrogate measure of air visitor spending was developed that did not require surveys of arriving passengers. This method first estimates the number of visitors to an airport. Then, an estimated expenditure per visitor is applied to the total number of visitors, quantifying indirect economic impacts. This method was used for both airline and general aviation visitors.

To estimate the number of general aviation visitors in New York, it was assumed that only the transient pilots and passengers would be counted as visitors. To estimate the true number of visitors, it was assumed that 10 percent2 of itinerant arrivals are conducted by transient aircraft (the other 90 percent were assumed to be conducted by aircraft based locally). Further, the FAA estimates that on average, there are 2.5 occupants aboard each general aviation flight. Thus, to calculate the actual number of visitors, one-half of the itinerant arrivals are multiplied by 2.5.

● Itinerant Arrivals = Itinerant Operations divided by 2 ● Visitors = 0.10 times Itinerant Arrivals times 2.5

Using this method, the number of general aviation visitors was estimated for each airport in New York. To estimate the individual economic impact of general aviation visitors using New York airports, the number of annual visitors was multiplied by a per-trip assumed expense level based on the airport’s location. For example, airports in rural areas were assigned an average expense level of $289. Airports in upstate New York urban areas were assigned an average level of $425, while airports in the New York City metropolitan area were assigned an average expense level of $496 per passenger. This assumed expense level is based on airport economic impact studies conducted previously in New York State3. To estimate the individual economic impact of air transportation visitors using New York commercial service airports, the number of annual visitors was multiplied by these per-trip expense levels based upon the airport’s location in the state.

Public Sector Capital Spending

A final category of direct spending involved the amount of capital development expenditures that could be quantified for each airport. In this regard, information was collected

2 Source: Based on discussions with multiple airport managers. 3 Source: Longwoods Travel USA 2007 Visitor Report for New York State, October 2008, and The Benefits of Aviation in New York, 2002 Report, NYSDOT.

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from NYSDOT and PANY&NJ on FAA Airport Improvement Program (AIP) spending and the state’s AIR 99 program, GA security, and business development grant spending. These capital expenditure amounts for New York airports were used to estimate the number of direct jobs and output conducted by construction companies at each facility. A five-year average provided a reasonable estimate of annual spending and served to smooth out unusual periods of high and low spending.

Indirect Impacts

Indirect impacts are those impacts resulting from the recirculation of direct impacts within the economy. Recirculation of direct impacts within an economy is frequently referred to as the “multiplier effect.” For example, as an airport employee spends his or her salary for housing, food or services, that spending circulates through the economy and leads to increases in associated spending, payroll, and employment throughout the local community and region. Regions that are more economically self-sufficient have higher respending "multipliers" than do regions that are more dependent on regional imports, since less of the money is siphoned out of the community for goods and services.

The effects of secondary economic impacts can be demonstrated through the following example. A new firm opens up in New York, generating 200 new jobs, most of them filled by local residents. At the end of the year, the regional labor office notes that employment has risen by 350 – yet only 200 new jobs were created. Why did an additional 150 jobs appear in the state? The process by which these jobs were created is known as the multiplier or ripple effect and is a result of several factors – the new firm making purchases of inputs from other firms in the region (thereby generating additional output and potentially employment), as well as the impacts of the expenditures of wages and salaries earned by the 200 new employees. It would be a tedious and difficult process to trace the impacts on a case-by-case study. Fortunately, an accounting system and associated model exists to make this more feasible.

IMPLAN, developed originally by the US Forest Service, is a comprehensive impact system that is built on the framework on input-output and social accounting methodology. The database is maintained at the county level, affording the analyst an opportunity to create regions for study that are aggregations of counties. The database includes the latest business Censuses supplemented by county business patterns and other data derived from the Bureau of Economic Analysis. The ability to edit data makes IMPLAN a dynamic economic modeling tool. Software users have the ability to edit all underlying data, from value-added, employment and final demands to production functions, byproducts, regional purchase coefficients and many other components.

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