The following general observations are based on the case studies. The observations should not be considered as generalizable to other airports, as each airport’s situation is unique.

Relationships Between Air Traffic and Regional Economic Activity

In all airport regions except one, origin and destination (O&D) traffic and regional employment are highly correlated. Clearly, there is a relationship between air traffic and total regional employment. As one increases, so does the other. Nonetheless, correlation does not establish causation. That is, it is not evident whether rising total employment levels lead to more air traffic or whether more air traffic leads to more total employment. But academic research shows that increasing air service does lead to more employment.

When the relationship is limited to industry sectors that tend to be more dependent on aviation, the correlation remains very high. As an example, the scatterplot illustrates the relationship graphically, based on changes in total O&D traffic and employment in “aviation-dependent” industry sectors in the Greater Des Moines region. The upward-sloping trend line indicates that the relationship is positive: as one variable increases, so does the other.

Scatterplot of Total O&D Traffic and Employment in Aviation-Reliant Industry Sectors, Greater Des Moines

Regions served by airports with international air service showed evidence of increasing foreign investment and job growth. These increases were especially clear in the case studies on Austin-Bergstrom International Airport (AUS), San Diego International Airport (SAN), and Raleigh-Durham International Airport (RDU), where new nonstop service to Europe contributed to new foreign investment by European-based firms.

Engagement with Regional Stakeholder Organizations

All case study airports engaged with one or more regional economic stakeholders for air service development. Stakeholder organizations include those that represent local or regional business interests (such as the chamber of commerce); regional economic development councils or authorities; and other groups, such as the largest employer in an area (e.g., a local public university). Those stakeholders can be knowledgeable about emerging business activities and needs, and it is important for the aviation community to access this knowledge when decisions are being made to recruit new air service or retain existing air service. In some airports, the initiative for air service to new markets originates with the business community, which pushes the airport to pursue those goals.

Some airports (especially in regions served by small or non-hub airports) reach out directly to major employers in the region to better understand their travel and what their air service needs might be. This can include private businesses and public organizations, such as universities.

Regional economic development groups often target selected industry sectors identified as “high wage” and “high growth” industries. Because these may include sectors with a high reliance on aviation, there is a natural connection between the stakeholders and airports.

Most stakeholder organizations did not have standing committees or structures that considered commercial air service issues. Many organizations supported efforts to improve transportation, although those efforts tended to focus on highway deficiencies and congestion.

Several case study airports—especially smaller facilities owned and operated by municipal governments—are connected to city economic development authorities. In these cases, the stakeholder organizations’ interests may be focused on “Main Street” issues of filling vacant downtown storefronts with retail, highway improvements, and business retention rather than air service and business activities that are dependent on aviation. These can be challenging situations, but airports and the business community can build a compelling story that clarifies the connection between air service and employment, especially in those industry sectors that are reliant on aviation.

The case studies include examples of airports and regional stakeholders working toward economic development and air service goals that tie the two together. There are examples in which air service improvement is specifically listed as a key strategy for community development. As a strategy of community development, the value of air service is not simply about making it easier for corporate executives to visit the region but also contributing to the development of a standard of living or quality of life that will attract businesses and residents.

Value of Connectivity

For most case study regions, connectivity declined following the Great Recession but improved as the airline industry and the national economy recovered. The graph summarizes how connectivity (as measured using the IATA connectivity index) changed from 2008 to 2019 at Raleigh-Durham International Airport (RDU). Connectivity declined after 2008 and did not recover until 2015. It then grew by 36 percent between 2015 and 2019. This growth was driven by expanded service to Denver, Los Angeles, San Francisco, and Seattle, as well as the introduction of service to Paris and Montreal in 2016 and 2019, respectively.

Changes in Connectivity at RDU

Airports and stakeholders appreciate the value of improving connectivity, especially in places where new air service to a hub would reduce circuity and improve accessibility to international markets. Many stakeholders want increases in the number of markets served, often for improving business accessibility.

Accessibility can attract new and more diverse businesses into a region, particularly from industry sectors that are more reliant on air service. These are industry sectors that also tend to support higher-paying job opportunities. Air service can facilitate not just economic growth but high-quality growth that supports a higher standard of living and a more resilient economy.

Conveying Economic Impact and How Air Service Supports Regional Economic Activity

Airports and stakeholders in the case studies tended to focus on airport economic impact assessments rather than assessments of how changes in air service contribute to broader regional economic development.

The case study airports offer little information on their websites on either economic impact or how air service supports regional economic activity. Those case study airports that do offer this information include only summary information from airport economic impact studies.

Some regional stakeholders recognize that the airport is a pivotal contributor to regional economic development. Commercial air service is an important consideration for site selectors and business decisions on where to expand or locate.

Metrics used by airports to tout their economic contributions (e.g., new businesses started, jobs created) do not connect or resonate with regional stakeholder groups. While total employment is of interest to both, regional stakeholder organizations have their own concerns, goals, and metrics.

Several stakeholders noted the challenges of conveying economic concepts to the public. Some suggested using individual stories to personalize how an individual’s employment or business is tied to the airport or airlines.

Concise messaging and context play a role in delivering research findings to key stakeholders, including local elected officials and the general public. Large impact numbers cannot necessarily convey a message on their own and should be accompanied by benchmarks, comparisons, graphics, or some additional context that can help an audience quickly and accurately interpret the results. 

Airports can help audiences more clearly understand the practical impact of improvements in connectivity when linkages and insights from the business community are uncovered. Even a single business that gained access to new markets for its products or improved access to intermediate products can make a powerful anecdote.