NY Aviation Economic Impact Huge According to Study

ALBANY, NY (07/11/2011)(readMedia)-- A newly released study of New York airports and the aviation industry's contribution to the State's economy found that $50 billion in annual economic activity for New York State businesses is attributable to aviation.

"The data contained in this long-awaited update of the "Benefits of Aviation" study released in 2003 reveals an aviation sector that is highly resistant to recessionary pressures and a smart investment for public and private capital," said Carl Beardsley, President of the New York Aviation Management Association. "The new study finds that convenient, affordable and safe commercial and general aviation air services are vital to the State's economic strength," Beardsley reported.

The study, "New York State Economic Impacts of Aviation," funded jointly by the Federal Aviation Administration and NYS Department of Transportation, looked at 90 public-use airports across the State and the economic activity, jobs and taxes generated by the aviation sector. The evidence shows an impact greater than the level of public investment required to maintain the system in a state of good repair.

The new 2010 data shows an increase of 47,000 in aviation employment over the employment level reported in the 2003 study.

Some of the findings include:

•In 2009, aviation facilities generated $50 billion in annual economic activity for New York State businesses, equaling 4.4 percent of the total gross State product;

•Federal, state and local funding for capital improvements at airports accounts for approximately 1.2 percent of this total, most of which comes from user fees and taxes;

•Approximately 394,500 jobs in New York State are related directly or indirectly to aviation, representing 4.6 percent of the 8.5 million jobs in the State. Payroll from aviation totals more than $18 billion, or two percent of total income in the State;

•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;

•Economic impacts from aviation in New York State account for 6 percent of the nation's total aviation economic impact; and

•Fortune 500 businesses, such as IBM, Pfizer, Verizon, American Express, Time Warner, Eastman Kodak and 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.

State Assemblywoman Donna Lupardo (D-Endwell), a leader on aviation issues and Co-Chair of the New York Legislative Aviation Caucus – a group of over 100 New York State legislators – said: "This report clearly illustrates the importance of airports and the aviation industry to our State's economy. It will also be valuable in our efforts to promote legislation, such as the Aviation Jobs Act, which will help support aviation and make New York competitive with neighboring states."

State Senator William Larkin (R-Cornwall-on-Hudson), Co-Chair of the New York Legislative Aviation Caucus and the Senate sponsor of the Aviation Jobs Act praised the study's results. "The study shows the benefits of attracting aviation assets to New York as each business aircraft based in the State generates $1 million in spending and creates 5 direct jobs!" Senator Larkin pointed out. "New York needs to recognize airports and the aviation industry for the economic engines that they are and this study provides the numbers to back that up," the Senator said.

"The data contained in the study will be useful in marketing the State's aviation assets and attracting private sector investment to New York airports," according to Beardsley. "This study underscores NYAMA's contention that increased public support for airports and aviation tax reform to improve our competitiveness with neighboring states should be the focus of State leaders and economic development officials to promote the aviation sector as an incredible economic driver for the New York," Beardsley concluded.

The "New York State Economic Impacts of Aviation" report and related summaries can be accessed at this Web link: https://www.nysdot.gov/divisions/operating/opdm/aviation/benefits.