My Airport’s Market
The economic role of an airport is created through a combination of factors including:
- Local economic demand
- An airport’s physical size and available infrastructure
- The mix of passenger service (including connecting flights), freight operations, and general aviation services provided
- Markets served and number of flights, including direct connections
- An airport’s location in relation to other airports
Taken together, these factors regulate the volume of activity occurring at an airport and its profile of users, which in turn maps to the scale and type of economic activity supported in an airport’s market area. For example, the economic contribution of an airport to local and regional hospitality industries depends on the number of visitors who use the airport to access the region, as well as the relative importance of air transportation for visitors, compared to other modes. Similarly, the magnitude of economic activity supported by air freight service is directly related to the volume of air cargo movements at an airport used to meet demand by regional businesses that ship products to long-distance markets, or that receive key material inputs by air. Nevertheless, size is not everything. Smaller airports play a particular role in supporting activities that may not be as well accommodated at larger commercial or hub airports. Additionally, relatively small volumes at some airports may nevertheless hold disproportionate importance to certain businesses in the region. Under the list of tools is a one-page information sheet to help address some common misconceptions about small airports and their role within the economy. Visit the Role of the Airport for additional information about how airports support a variety of roles.
To a large extent, a region’s economic profile dictates the importance of aviation to economic development. This is addressed in the Supporting “Traded Industries” topic and its accompanying self-assessment guide. In addition, while underlying economic conditions influence the demand for aviation, characteristics of the airport itself affect the degree to which a particular airport meets that demand. When multiple airport options are available, travelers, shippers, and those seeking a home for based aircraft choose between airports for a variety of reasons, including:
- Airport proximity to home or work, when choosing an origin airport
- Airport proximity to the final destination, when choosing a destination airport
- Ground transportation convenience
- Runway length (which dictate the sizes of fully loaded aircraft that are able to operate)
- Navigational Aids, Automated Weather Observing Systems, and Airport Traffic Control Towers (which affect airport reliability and capacity)
- Hours of operation
- Services and facilities at an airport (for both passengers, aircraft operators, and shippers)
- Commercial service characteristics including frequency, schedules, the number of nonstop commercial flights, connectivity to major economic centers in the U.S. and globally, and airline/alliance loyalty
- Price, including the price of travel and costs incurred in accessing the airport such as parking or tolls
Below are two additional tools that can help address how your airport’s characteristics affect its competitive position and market area. The competition overview worksheet from ACRP Report 77 Guidebook for Developing General Aviation Airport Business Plans can be used to compare GA airports. The Colorado Springs trip cost calculator highlights the ways in which access costs affect overall trip costs. The tool could be used as a template for assessing total trip costs at your own airport, relative to available alternatives.