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Economic Impact Study Technical Report 2019 Table of Contents

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Economic Impact Study Technical Report 2019 Table of Contents NEBRASKA AVIATION COUNTS! Economic Impact Study Technical Report 2019 Table of Contents 1. Introduction 1 1.1 Objective of Study 1 1.2 Statewide Economic Impact Results 2 1.3 Overview of Approach 3 1.4 Summary of Findings 3 2. Overview of Nebraska Economy 4 2.1 General Economic Indicators 4 2.2 Heartland Floods and a “Particularly Harsh Winter” 4 2.3 Unemployment 5 2.4 Nebraska Economy Conclusion 6 3. Analysis and Summary Outcomes 6 3.1 Data Elements for Economic Modeling 7 3.1.1 Methods 8 3.2 Economic Modeling Process 8 3.2.1 Approach and Methods Used to Calculate Omaha Airport Authority Impacts 9 3.2.2 Approach, Methods, and Totals Used to Incorporate Military Aviation 10 Impacts 3.2.3 Margining for Retail 17 3.2.4 Rounding to Account for False Precision 17 3.3 Economic Impacts for Employment, Payroll, and Revenues 17 3.3.1 On-Airport Employment Activities 18 3.3.2 Commercial Service Visitor Spending Employment Impacts 21 3.3.3 General Aviation Visitor Spending Employment Impacts 22 3.4 Capital Expenditures on Construction 25 3.5 Overall Economic Impact by Airport 28 3.6 Summary of Economic Impacts 31 Table of Contents | i Table of Contents 4. Surveys and Data Collection Methods 33 4.1 Airport Manager Surveys 33 4.1.1 Approach 34 4.1.2 Key Data 34 4.2 Airport Tenant Surveys 35 4.2.1 Approach 35 4.2.2 Key Data 35 4.3 Commercial Passenger Surveys 36 4.3.1 Approach 36 4.3.2 Key Data 36 4.4 General Aviation Passenger Surveys 37 4.4.1 Approach 37 4.4.2 Key Data 37 5. Aerial Wildland Firefighting 38 5.1 Benefits 39 6. Value of Aircraft Assets in Nebraska 40 7. Air Cargo 41 8. Aerial Application 43 9. Regional Airline Service Challenges and the Impacts on Nebraska Airports 45 9.1 Nationwide Pilot Shortage 45 9.2 The Impact of the Pilot Shortage on Nebraska Airports 46 9.3 Fewer Carriers Available to Serve Small Communities 47 9.4 The Continuing Rising Cost of Essential Air Service 49 9.5 Nebraska Historic Regional Air Service Overview 50 9.6 Summary 61 Table of Contents | ii Table of Contents 10. Business/Industry Reliance on Aviation 62 10.1 Application of Survey Results, Energy Sector 67 10.2 Application of Survey Results, Finance Sector 68 11. Drones 69 Figures Figure 2.1 Unemployment Rates 5 Figure 2.2 Nebraska Farm Income 6 Figure 3.1 Flow of Direct Impacts and Spin-Off Effects 9 Figure 3.2 Economic Impacts of Military Assets in Nebraska Methodology 14 Figure 5.1 Nebraska Aerial Wildland Firefighting Bases 38 Figure 9.1 Historic Annual Scheduled Flight Departures by EAS Carriers in Nebraska 47 Figure 9.2 Historic EAS Subsidies and Enplanements at Nebraska Airports 49 Figure 9.3 Nebraska Commercial Service Airports 51 Figure 9.4 Historic Enplanements and Scheduled Departing Seats (2003-2018), 51 Nebraska Commercial Service Airports, Excluding OMA Figure 9.5 Historic Enplanements, Alliance Municipal Airport (2003-2018) 52 Figure 9.6 Historic Enplanements, Chadron Municipal Airport (2003-2018) 54 Figure 9.7 Historic Enplanements, Central Nebraska Regional Airport (2003-2018) 55 Figure 9.8 Historic Enplanements, Kearney Regional Airport (2003-2018) 57 Figure 9.9 Historic Enplanements, Lincoln Airport (2003-2018) 58 Figure 9.10 Historic Enplanements, North Platte Regional Airport (2003-2018) 59 Figure 9.11 Historic Enplanements, Western Nebraska Regional Airport (2003-2018) 60 Figure 10.1 Response by Industry - Air Usage 63 Table of Contents | iii Figures (cont.) Figure 10.2 Importance of Air Travel by Industry Sector 64 Figure 10.3 General Aviation Travel Usage by Industry 66 Figure 10.4 Nebraska Energy Production Estimates 2017 67 Figure 11.1 Nebraska Annual Employment 69 Figure 11.2 Nebraska Spending and Economic Impact 69 Figure 11.3 In Collaboration with the University of Nebraska - Lincoln’s Nebraska 70 Intelligent Mobile Unmanned Systems Laboratory, Homestead National Monument Launched a Prescribed Burn Program with a Drone (Courtesy: National Park Service) Tables Table 1.1 Total Annual Economic Contribution of Nebraska’s Aviation System 4 Table 3.1 Offutt AFB Military and Civilian Personnel and Payroll 11 Table 3.2 Offutt AFB Expenditures 12 Table 3.3 Overall Economic Impact of Nebraska Military Assets 15 Table 3.4 Aviation-Related Economic Impact of Nebraska Military Assets 16 Table 3.5 Economic Contribution of On-Airport Tenants, Airport Operations, and 18 Employees Table 3.6 Direct On-Airport Tenant and Management Impacts 19 Table 3.7 Annual Commercial Service Visitors in 2018 21 Table 3.8 Economic Contribution of Commercial Service Visitors 21 Table 3.9 General Aviation Visitor Spending by Airport 22 Table 3.10 Economic Contribution of Capital Expenditures on Construction 25 Table 3.11 Economic Contribution of Capital Expenditures on Construction by Airport 26 Table 3.12 Total Airport Economic Impact 28 Table 3.13 Airport Tenant Summary 31 Table 3.14 Construction Summary 31 Table of Contents | iv Tables (Cont.) Table 3.15 General Aviation Visitor Summary 31 Table 3.16 Commercial Service Visitor Summary 31 Table 3.17 Military Summary 32 Table 7.1 2017 Air Cargo Tonnage at Nebraska Airports 41 Table 9.1 Carriers Providing Service at EAS-Subsidized Communities 48 Table 9.2 Scheduled Air Service Summary, Nebraska Commercial Service Airports, 52 Excluding OMA Table 9.3 Air Service Summary, Alliance Municipal Airport (2003-2018) 53 Table 9.4 Air Service Summary, Chadron Municipal Airport (2003-2018) 54 Table 9.5 Air Service Summary, Central Nebraska Regional Airport (2003-2018) 56 Table 9.6 Air Service Summary, Kearney Regional Airport (2003-2018) 57 Table 9.7 Air Service Summary, Lincoln Airport (2003-2018) 58 Table 9.8 Air Service Summary, North Platte Regional Airport (2003-2018) 59 Table 9.9 Air Service Summary, Western Nebraska Regional Airport (2003-2018) 61 Table 10.1 Response by Location and Industry 62 Table 10.2 Response by Industry - Air Usage 63 Table 10.3 Importance of Air Travel by Industry Sector 63 Table 10.4 Average Client Trips Response by Industry 64 Table 10.5 Average Annual Visits by Industry 65 Table 10.6 Business Reduction Without Air Travel 65 Table 10.7 General Aviation Travel Usage by Industry 66 Table 11.1 Economic Impact of Drones 2015-2025 69 Appendixes Appendix A Studied Airports Appendix B Individual Airport Brochures Appendix C Case Studies Table of Contents | v Preface — A Snapshot in Time, Jargon, Terminology, and Intended Use Economic impact reports are a snapshot in time. Data collection methods, including surveys, interviews and reviews of available financial data, create a snapshot view of the economic impact of aviation in a State at the time the study was conducted. As discussed in Airport Cooperative Research Program (ACRP) Synthesis 7, the interdependent nature of applying spending patterns determined by survey to utilization of airport facilities from FAA and airport records can result in the study quickly becoming outdated. When considering the collection dates of survey data and application of utilization data, this study is a snapshot of economic impact of airports in Nebraska during the summer of 2019. The economic and social implication of the the Covid 19 pandemic and financial crisis are not known at the time of final publication and may not be known for year. Supplemental to this written document, a web-based calculator was developed in an attempt to overcome the snapshot criticism discussed in ACRP Synthesis 7. The calculator does attempt to apply general rules to changes in airport circumstances, including capital investment and changes in utilization. The calculator is intended to assist in understanding the general nature of economic changes. It is not intended as an exacting tool. An intentional effort is made in this document to avoid jargon and simplify terminology. For instance, all economic impacts that require the use of multiplies are simplified as “spin-off” impacts in the Executive Summary, Individual Airport Reports, and explanatory videos. It is understood that the intended use of this study is to quantify the value of airports in the State of Nebraska. The products of the report are directed at non-academic users and the general public. 1. Introduction Nebraska’s airports are vital to daily life and trade because airports connect people and businesses for personal travel, air cargo, or business activity. The state’s aviation system keeps Nebraska connected to the global marketplace and drives the local economy. To better understand the aviation industry’s value to the state economy, the Nebraska Department of Transportation, Division of Aeronautics (NDOT DOA) teamed with George Butler Associates (GBA), Olsson Associates, Marr-Arnold Planning, Kimley-Horn, Inc., and Dr. Christopher Decker of the University of Omaha to conduct an economic impact study titled Nebraska Aviation Counts! The study demonstrates the benefits that airports provide in Nebraska that are quantitative and qualitative in nature. Beyond the A mile of numbers such as jobs and payroll that an airport contributes to the highway will economy, airports play an integral role in the state’s transportation take you a system. The airport, however, serves a much larger role in a mile, a mile community or region. As an example, a mile of road between a of runway rural hospital and an air ambulance-capable airport may be the most important mile to saving a life. During this study, Nebraska can take you experienced devastating flooding that resulted in communities anywhere losing highway access. Local airports served as primary depots for relief efforts and served as the only access when supplies could not be delivered by ground transportation methods.
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