Chapter 10: The Economic, Political and Social Role of Airports

Economic Role of Airports

• Airports are among the largest public facilities.

• They enable the movement of people and goods between communities, which leads to:

  • Increased commerce.

  • Job creation and earnings for local residents.

  • Numerous economic benefits to the community.

Transportation Role

• Aviation significantly impacts intercity trade and commerce.

• Airports facilitate:

  • Intercontinental travel of large volumes of passengers and cargo in a short time.

  • Function as gateways to the nation's transportation system.

Stimulating Economic Growth

• Airports are crucial for the growth of business and industry.

• They and related aviation/non-aviation businesses provide:

  • Major employment opportunities.

  • Direct, indirect, and induced economic impacts:

    • Direct Impact: Jobs directly created by airport operations.

    • Indirect Impact: Jobs created in the local economy due to airport activities.

    • Induced Impact: Economic activity resulting from the spending of income earned through direct and indirect impacts.

Local Services

• Airports stimulate local economies through:

  • Air cargo services.

  • Catering: Food services for passengers.

  • Aircraft maintenance: Services provided for aircraft upkeep.

  • Ground transportation: Services connecting to different areas.

Community Contributions

• Airports contribute (add) to the state and local tax base which in turn:

  • Provides extra funding for state highway systems.

  • Supports beautification projects in state parks.

• Is also a significant factor in real estate values, as proximity to airports often increases property demand and prices, benefiting local economies.

Tourism and Conventions

• Promotion of tourism and conventions leads to revenues for:

  • Hotels.

  • Restaurants.

  • Sports venues and nightclubs.

  • Sightseeing services.

  • Rental car industries.

Political Role of Airports

• A unique political landscape is created from a combination of public management and private enterprise in airport management.

Airport – Airline Relations

Airline Perspective

• Airlines view airports as hubs for transferring passengers and freight.

• For effective operations, airlines require specific facilities.

  • These facility requirements are dynamic and adapt to factors like:

    • System demand.

    • Economic conditions.

    • Competitive climate.

Deregulation Impact

• Since 1978, after airline deregulation:

  • Airlines can add/change routes without prior permission.

  • Airlines focus on serving multiple locations, while airports focus on a single user base.

  • Changes in the way an airline operates can put major financial pressures on the airport operator

Agreements

• Carriers and airport management traditionally formalize relationships through airport use agreements which:

  • Allow for annual fee adjustments.

  • Vary in length from monthly to over 25 years.

  • Encourage a competitive rather than cooperative environment post-deregulation.

Carrier Operations

• Carriers may alter routes and service levels with little notice, impacting airport operations.

• They are often reluctant to share business plans due to competition.

Airport – Concessionaire Relations

Types of Businesses

• Various businesses operate at airports under concession agreements, including:

  • Restaurants.

  • Bookstores.

  • Gift shops.

  • Rental car companies.

  • Parking facilities.

Revenue Sources

• Airports earn revenue from:

  • Payments from concessionaires based on a minimal fee or percentage of revenues.

  • Parking and car rental fees, often the largest revenue source.

• FBOs provide services like fuel sales, aircraft service, repair and maintenance

  • Can lease hangars, tie-downs, and short term parking

Landlord Role

• Some airports function as landlords, offering leases to:

  • Industrial parks.

  • Freight forwarders.

  • Warehouses and other related establishments.

• They may lease space or build their own facilities

Airport – General Aviation Relations

• General aviation relationships are less formalized.

• Seldom governed by use of agreements and leases

• Aircraft owned/operated by a variety of people/businesses for a variety of purposes

• Relationship is usually that of landlord / tenant

• The primary needs are for:

  • Parking and storage.

Environmental Impacts

• Airports can have negative environmental effects, similar to large industrial complexes.

Noise Pollution

• Aircraft operations contribute to significant noise pollution, particularly since the introduction of jet aircraft in the 1960s.

• The FAA established noise certification standards under FAR Part 36 to regulate aircraft noise.

• FAR Part 150 Airport Noise Compatibility Planning

  • Defines several methods of measuring noise – techniques give extra weight to those noises offensive to the human ear

• FAA has suggested land uses compatible with given noise levels

Noise Abatement Measures

• Courts determined legal liable for aircraft noise rests with the airport operator

• Any restriction of operations at the airport must be nondiscriminatory

• No airport may impose a restriction that unduly burdens interstate commerce

• Local restrictions must not interfere with safety

• Various noise abatement programs include:

  • Modification of take-off and landing procedures.

  • Construction of sound barriers.

  • Soundproofing buildings near airports.

  • Land acquisition and/or easements

  • Curfews

  • Restrictions on aircraft that do not meet noise standards (denied airport use)

• FAR Part 161 – Notice and Approval of Airport Noise and Access Restrictions

  • Airport operators can restrict certain operations that have significant noise

Air Quality and Water Quality

Air Quality Impact

• Aircraft emissions account for less than 1% of total air pollutants in metropolitan areas, but significant emissions come from:

  • Ground vehicles.

  • Industrial facilities.

  • Deicing materials

  • Painting materials

  • Paving operations

  • Fuel dispensing

• The Clean Air Act of 1970 aims to protect air quality and public health.

Water Quality Concerns

• Airports may contribute to water pollution through:

  • Industrial wastes.

  • Fuel spills.

  • Run-off from de-icing operations

• Clean Water Act of 1977.

Hazardous Waste Emissions

• Hazardous material is anything that can cause injury or death to people or animals damage or pollute land air or water

• Airports can generate hazardous waste, which includes:

  • Fuel.

  • Deicing materials.

  • Used oil and other chemicals.

• Can be solid, liquid, or contained gaseous material

Social Responsibilities

• Airports must act as good neighbors within their communities.

• Engagement in community projects and cultural programs is essential for fostering positive relationships.