russ mcdonald airfield hangar marketing proposal · russ mcdonald airﬁeld hangar marketing...

Russ McDonald Airf ield

Hangar Marketing Proposal

TimeMD.com, Inc. 520 C. N. Main St. #347 Heber City, UT 84032 T 435-503-0455 [email protected] www.timemd.com

http://www.timemd.com

http://www.timemd.com

Executive Summary

It is critical that the newly constructed hangars located

at Heber City Airport be sold as quickly and efficiently as

possible. However since their completion, a consistent

and focused marketing effort has not been

implemented. As a result sales have slowed and public

perception of the hangars has become that of a liability

rather then that of an investment into the city’s growth.

To further add to this challenge, there is very little budget if any that can be used for a marketing campaign. As a result,

this proposal will attempt to outline various methods that will 1) define a marketing campaign that will require little to no

capital and 2) demonstrate methods that can educate the public and government entities as to the economic impact of

our airport on the local community.

This proposal will outline a three pronged strategy in establishing the objectives defined above.

- First and most importantly, define a goal that specifies a time frame to sell the hangars. As part of the goal, their needs

to be clearly defined methods that can measure milestones critical to its fulfillment.

- Second, educate the public as to the airports economic role in the local community. This is a vital step in overcoming

negative press and fostering increased support from local government officials. As support increases so does the

likelihood of selling the hangars.

- Third, create a marketing campaign that utilizes technologies and techniques that are readily and freely available that

will make the aviation community and general public aware of the hangars availability and value.

Overview

Despite the fact local support of the new hangars as well as the airport in general may be on a downward trend, research

indicates that hangars located in publicly owned airports which are supported by local government will appreciate in

value. Besides adding value to both the aircraft and the airport, a hanger can prove to be a solid investment. Anecdotal

evidence suggests that hangers are appreciating over 15% per year on average (cited - www.entrepreneur.com).

On the other hand, the global economic downturn has dealt a painful blow to the aviation industry as a whole. As new

airplane orders dwindled, manufacturers and aviation enthusiasts turned inward and became focused more on survival

then on public awareness and growth. Consequently a void was established and public interest in aviation waned. What

was once seen as a critical element in any local economies growth and stability, became perceived as the embodiment of

corporate greed and wasteful spending. Airports became a popular target from both politicians and the media

Russ McDonald Airfield Hangar Marketing Proposal 1

throughout the nation. As attacks grew in frequency and fervor, public opinion faltered and many joined the bandwagon

to shut down or severely limit funding for public airports.

However towards the end of 2009, there were hopeful signs the worst of the economic crisis and its impact upon general

aviation was over: the availability of used aircraft was declining, the availability of financing was improving and inquiries for

new orders were beginning to grow.

As aviation in general begins to recover from the economic downturn, many are forecasting the next aviation boom is just

around the corner. According to the “2009 General Aviation Statistical Databook & Industry Outlook” report issued by

the General Aviation Manufacturers Association (GAMA), the most recent global GDP growth forecast notes that the

world economy is “recovering faster than previously anticipated”. In addition, there are signs that corporate profits are

beginning to recover. This has been a strong positive indicator in the aviation industry since these profits are historically

related to new airplane demand. As demand increases for aircraft so does the demand for hangars space. Due to the

current overwhelming ratio of aircraft to available hangars, it is anticipated that many new aircraft owners will find it

difficult to acquire hangar space.

As a result, the timing to launch a campaign that both educates the general public as to the economic value of a local

airport as well as promotes the availability of its hangars is upon us.

The Challenge

With any marketing endeavor, before you can begin you must first define your product. What is being sold? How much

inventory is available? What’s the margin between covering costs and what the market can sustain? In other words, what

is the sustainable market price vs. the lowest price that still maintains minimum acceptable profitability.

Next you must define your audience. In this case there is a limited audience largely due to the skills needed to utilize the

product as well as the affordability of the product. Those factors coupled with a very limited inventory further exacerbates

the challenge. Fortunately by identifying and creating ways to overcome these constraints should make it easier to create

an effective marketing campaign.


Since we can’t increase our inventory or change FAA regulations in order to make it easier to become a pilot we must

look at factors we can control. In this case it’s affordability. What can be done to make the hangars more “affordable”

without lowering the cost? What can be done to remove some of the “unknowns” of hangar ownership? Various

marketing studies have shown that if one can demonstrate a solution by removing as much guesswork as possible,

people tend to migrate towards that offerings even if the cost may be higher then its competition. Some of these

solutions are defined below.

Provide Financing Solutions

If financing is a factor then remove as many unknowns as possible by establishing pre-authorized

financing solutions through local financing institutions. This is a common technique utilized by the

automobile industry. It’s an effective way to answer any financing questions a potential buyer may be

asking themselves. Preliminary discussions with Heber Valley Bank have already shown an interest in

putting together financing packages for the hangars.

Encourage Group OwnershipA $300k investment may be more then most can afford. So therefore encourage co-ownership by

promoting what the estimated cost might be per owner if multiple owners where tied to the sale. This

is the quickest way to make hangars more affordable without lowering the cost. This will also

substantially increase the target audience almost immediately. As the audience grows so do the

chances of selling the hangars.

Incentives and PackagesAnother common tool used in any marketing campaign is to introduce incentives and or package

deals. What can make the offer more enticing? Ski packages, golf memberships, lodging and/or

real-estate options could all be rolled into hangar ownership. In most cases the cost of these

incentives could also be rolled into the cost of the hangar therefore removing any risk or loss of

profit to the city. This also serves as an effective way to promote local businesses.

Create an AudienceIf an audience is limited due to missing skill sets, then encourage that skill set to be acquired by

creating an incentive and a method to acquire it. Aircraft ownership is necessary for justifying a

hangar. Therefore it may be worth exploring incentives where an aircraft could be included with the

purchase of a hangar. Once again, simply by increasing the sale price of the hangar to account for

the cost of the aircraft, this incentive can be made available at no cost to the city. This coupled with

group ownership can be a particularly attractive incentive for pilots who are transitioning between aircraft rental and first

time ownership. The key here is one again, remove the guess work and make it simple for the buyer.


Strategies

Once the product and audience has been defined, it’s

possible to put together an effective marketing campagin. As

mentioned in the beginning of this proposal, we will attempt to

outline three key strategies designed to establish maximum

exposure at minimum cost. However the key to these

strategies is worth mentioning again - that being support. In

this case no single strategy can stand on it’s own without the

support of government entities and key individuals. Therefore

some of these strategies will also attempt to outline methods

to help acquire the necessary support.

Establish a GoalFirst and foremost, a goal must be defined that clearly states a date when all the remaining hangars must be sold by.

Therefore in order to get the ball rolling if you will, It is proposed that commencing in August, the remaining five hangers

must be sold within the following 18 months. If this goal is to be accepted it must be done in conjunction with and in full

support of the City Council, FBO and all entities involved. Whereas if a goal cannot be established nor full support

obtained, there will be little if any accountability. The city will find itself in a prolonged period where funds associated to

the hangar construction will remain unavailable. To stay on track, a goal must be defined, embraced and milestones must

be established that will allow a method to address constraints as they arise. By starting in August this will give the

necessary entities time to approve and establish a marketing campaign.

Public EducationTo ensure the general public is aware of the hangars availability as well as the airports economic value, a communications

campaign will be organized that emphasizes the airports impact on the community. The message must establish that the

airport is much more then a convenient hub for the rich and the famous en route to their mountain retreats. As the public

awareness increases in respect to the airports value, so will the need to sell the remaining hangars. Ideally, if an

environment can be created that allows the dissemination of this information to spread naturally via self replicating viral

processes, it could accomplish more then tens of thousands of dollars worth of marketing efforts. This is commonly

referred to as “viral marketing”. In the marketing world, this is considered the “holy grail” of any marketing campaign.

The first step to creating a viral campaign is to identify individuals with high “Social

Networking Potential”. These are individuals with both a large social network as well

as the ability to influence that network. Individuals with this potential commonly

include government officials, contributors to media both online and off, as well as

leaders of social and political groups. The more individuals from these groups that

can support and propagate the need to sell the hangars, the easier the information

can be spread to the masses.

Additionally efforts including PSA announcements, press releases to local newspaper and radio stations as well as public

forums such as town hall meetings, should be utilized on a consistent basis. All of which can be done at little to no cost

to the city.


In order to fully utilize these areas, the following steps have been proposed by the Aircraft Owners and Pilots Association

(AOPA). These are tried and true methods that have been utilized throughout the nation in promoting the value of

airports:

1) Collect and compile accurate, factual information about the airport.

2) Communicate through basic press releases and personal letters.

3) Identify, get to know, and assist key media people.

4) Create and update mailing lists for key media members and community leaders.

5) Prepare and deliver speeches and presentations.

6) Plan special events.

7) Write letters to the editor correcting erroneous facts or opinions when reported in the press or relevant media

outlets.

The AOPA also encourages methods that make the airport more accessible to the public. Simply because many fail to

feel any association with the airport in their community. To most their experience is limited to the modern day

inconveniences and hassles associated with flying on an airline. The general public needs to feel a sense of ownership

and accessibility to their airport. As it becomes more accessible, more will feel encouraged to learn about the airport and

promote it’s services rather then devalue them.

Some of the methods that have proven to make an airport more accessible include making it into a community center. In

some circumstances areas in proximity to the airport have been made into small parks where the public can watch the

aircraft. Couples with small children find it perfect for keeping the kids entertained while they enjoy a picnic. Garden clubs

are always looking for additional areas for cultivation. Invite school groups to tour. Provide summer jobs for kids if

possible. Encourage service projects that invite organizations to help maintain some aspect of the airport. All of these are

proven techniques in swaying public opinion.

Perhaps the most critical element in educating both the public and

government officials is to complete an economic analysis of the aiprort.

Otherwise the airport is increasingly vulnerable to those who will

continue to find reason to criticize it. Whereas those citizens who are

concerned about local economic stability, or who care about the tax

base that pays for schools, roads, and hospitals, must be challenged to

care about their local airport. The facts state clearly that despite a

changing national economy, airports have not diminished in value but

rather that they are needed now more than ever. As the value of the

airport increases in the public eye, so do the chances of completing the

sale of the remaining hangars.

In 2001, the Utah Department of Transportation performed a study of all

Utah airports and their impact on Utah’s economy. The study made it

clear that “the Utah system of public-use airports is an integral

component of the state’s overall transportation system, and is also an

important stimulus for economic growth and development in Utah.” It


further outlined that of the 41 General Aviation airports located throughout the state, Heber City’s airport ranked 9th with

a total output of $8.2 million dollars annually.

If a more up-to-date analysis is needed, any interested group can quickly perform a preliminary economic impact study of

the airport. This will further prove that the facility attracts outside dollars and contributes economic benefits such as jobs,

services, and taxes. Those numbers are an effective lobbying and public relations tool in defending or promoting the

airport. That kind of information also makes an excellent news item for distribution to the local media.

The AOPA provides a step-by-step approach to determining an airports value in their guide, “What’s Your Airport Worth”.

This guide provides the information and instructions individuals need to perform an easy, simplified analysis that

quantifies the airport's economic contribution to the community and region. More information can be found at: http://

www.aopa.org/asn/apsup03.html

Internet Based Marketing CampaignsFinally a campaign comprising of email blasts, online classified postings, blogs, messages on aviation related forums as

well as techniques related to search engine marketing (SEM), will further expose the availability of the hangars to aviation

enthusiasts around the world. Most of these venues can be utilized at no cost to the city. With the combined support of

the FBO, local real estate agencies, as well as any entity who’s willing to share contact information related to those who

may be interested in aviation, should make it possible to build a strong preliminary list of potential contacts. Once groups

and/or individuals have been identified, they can be targeted for email and phone solicitation in conjunction with this

campaign.

However before an internet based marketing campaign can

begin, a virtual “face” for the airport and it’s hangars must be

established. This can be done by creating a simple website

where information about the hangars can be posted for easy

access. An example on how quickly and easily a site can be

set-up can be found at www.HeberHangars.com. This site was

configured in just a mater of hours. With an established website,

major search engines such as Google, Yahoo and Bing can now

index the site and make it available in their respective search

result queries. A website also establishes a central marketing

destination for all marketing efforts. A centralized destination

makes it possible to establish which marketing efforts are

working and which aren’t through the use of tracking

mechanisms. That way ineffective efforts can be quickly

identified and either abandoned or modified.

Next, post the availability of the hangars in as many online

classified sites that have been designed specifically for the

aviation industry. Some of these websites include,

www.hangartrader.com, www.hangarhunter.com and www.barnstormers.com. All of which allow free postings. There

also exists relatively inexpensive pay-to-post services which provide postings in print as well as the web. One such

example is www.trade-a-plane.com. For a small monthly fee they guarantee high exposure to targeted audiences.

Whichever service is utilized, by making creating a single posting, you’re exposing the hangar availability to literally tens of

thousands of users almost immediately.


http://www.HeberHangars.com

http://www.HeberHangars.com

It’s also worth mentioning the availability of entities that exist exclusively for the marketing and sale of aviation related

property. www.realspacedfw.com/sales-a-leasing.html is an example of one. At a minimum, they can provide examples

of how to market hangars if inquired. Also mentioned earlier is the AOPA. They have extensive resources and tools

designed to help promote airports and their value to their respective communities. All of this is available for free.

Finally there are countless blogs, forums, and chat rooms where aviation enthusiasts congregate on a regular basis.

These, if used tactfully and respectfully can prove highly effective in promoting the hangars as well as directing the city to

venues where potential buyers may be contacted.

All of these resources are examples of what is currently available. All that is required in most cases if for an account to be

set-up and information entered.

In Conclusion

Heber City “is” the true hub of recreation in the west. It is located within minutes of some of the nations most beautiful

surroundings. Visitors can experience nearly every environment and vista imaginable within just a few hours drive of

Heber. Whatever the attraction may be, there is plenty of reasons for pilots to choose Heber as their hangar of choice for

their aircraft. Furthermore, the hangars are one of the few if only assets owned by the city which have the potential of

infusing the city with needed capital on a relatively short timeframe.

Hopefully this proposal has demonstrated beyond any shadow of a doubt that the hangars are a marketable asset. It’s

also demonstrated that we have various methods of approaching an audience in order to liquidate that asset at little to

no cost to the city. All that remains is the support and blessing of City Council and the FBO to move forward with an

approved marketing campaign.


e x e c u t i v e s u m m a r y

Everyone Benefits

The Utah system of public-use airports is an integral component of the state’s overall transportation system, and is also an important stimulus for economic growth and development in Utah. The state airport system provides a safe and efficient method for the movement of people and goods, improving the quality of life of Utahans. The state’s six commercial service airports, including Salt Lake City International, accommodate millions of passengers and generate billions of dollars in economic benefits. The 41 general aviation airports are also significant generators of business revenue and wages, creating thousands of jobs and producing millions of dollars of economic impact throughout Utah each year. Thousands of visitors arriving in Utah via general aviation aircraft each year support a variety of business activities such as lodging, dining, retail, and entertainment. Utah airports also serve as the base of operation for many types of businesses, including airlines, air cargo companies, fixed base operators, flight schools, government entities, restaurants, and many others.

Utah’s Airports:

• Are home to over 1,700 aircraft

• Accommodate more than 1.3 million takeoffs and landings

• Enplane over 18.6 million airline passengers

• Handle 476 million pounds of cargo

• Offer access to countless business travelers, tourists, and sporting

enthusiasts

• Welcome more than three million visitors to the state

• Assist numerous police, fire, and paramedic operations

• Provide a wealth of public services

Utah’s Airports

1

Utah’s Economic Engine

Utah is one of the fastest-growing states in the country. The growth in population, economic activity, and tourism in recent years has exceeded the national average by a significant amount. Indicators of Utah’s recent growth include:

• Between 1990 and 2000, Utah’s population grew by 2.9 percent annually, nearly twice the U.S. rate.

• Utah’s Gross State Product grew by 7.5 percent each year between 1990 and 2002, much faster than the rate at which the nation’s GDP grew.

• Per capita income grew faster than the national average between 1990 and 2000.• Tourism to Utah has recently been boosted by the 2002 Winter Olympics in Salt Lake

City, making the state an even more attractive destination to the world’s travelers.

Aviation Key to Economic Growth There is no doubt that Utah’s diversified system of commercial and general aviation airports has helped to bolster the state’s dramatic growth. Airports in Utah are vital to supporting the state’s economy. Recent surveys of airports and businesses throughout the state indicate that thousands of jobs are tied to the operation of Utah’s airports. Through jobs provided, jobs supported, and efficiencies gained, nearly one of every 12 jobs in Utah benefits from – or is completely reliant upon – the daily operation of the state’s public system of commercial and general aviation airports.

Airports not only support key facets of Utah’s economy, but are important economic generators. To quantify the benefits that flow from Utah’s airport system, the Utah Department of Transportation’s Division of Aeronautics recently commissioned an Airport Economic Impact Study. The results of that study are summarized in this document.

Over 106,350 Jobs

$2.83 Billion in Payroll

$5.68 Billion in Output

Utah’s Airport System Creates:

2

MethodologyIn order to document the relationship between Utah’s system of airports and the state’s economy, this study followed a Federal Aviation Administration (FAA) approved methodology that has successfully quantified the value of airports and airport systems throughout the United States.

Airports create economic impacts in many ways. Airports throughout Utah accommodate a long list of aviation related businesses, including flight schools, commercial airlines, aircraft maintenance and repair shops, air cargo companies, ground transportation providers, concessionaires, and others. Local, state and/or federal entities also have on-airport employees who are charged with the day-to-day maintenance, operation and development of system airports.

Airports throughout Utah also support visitor-related travel. Each day, thousands of visitors come to Utah either on commercial airlines or on privately-owned general aviation aircraft. Once in the state, these visitors spend money on hotels, entertainment, shopping, ground transportation, food and other items. On-airport businesses and aviation related visitor spending are responsible for many annual economic benefits.

Through extensive survey efforts, direct economic benefits related to tenants and indirect benefits stemming from visitors were measured. As these first-round benefits are produced, additional multiplier benefits are created. For example, when an airport employee spends his salary on groceries, this spending re-circulates or multiplies until the benefits ultimately leak outside of the study area. Secondary benefits for this study were calculated using Utah-specific multipliers. In general, for every $100 spent by aviation-related businesses in Utah, an additional multiplier benefit of nearly $68 is created in supporting industries.

The economic contribution of each airport in the Utah airport system was measured in terms of employment, payroll, and output. The total economic impact is the sum of all direct, indirect, and multiplier impacts.

3

The MeasurementsEmployment measures the number of full-time equivalent (FTE) jobs related to airport activity. Two part-time employees are counted as one full-time equivalent job.

Payroll measures the total annual wages and benefits paid to all workers whose salaries are directly or indirectly attributable to airport activity.

Economic Activity or Output measures the value of goods and services related to aviation in Utah. The output of on-airport businesses is typically assumed to be the sum of annual gross sales and average annual capital expenditures.

The ImpactsFirst-Round Impacts include both direct and indirect impacts. Direct impacts are those benefits associated with on-airport businesses and government tenants. Indirect impacts generally take place off-airport and are usually attributable to the spending of visitors who use aviation as a means of travel.

Secondary Impacts primarily consist of induced impacts, which result from the re-circulation and re-spending of direct and indirect impacts within the economy. This re-circulation is commonly referred to as the “multiplier effect.”

Total impacts are the sum of all first-round and secondary impacts.

The Modeling Process

4

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

�

�

�

� �

�

��

��

��

��

��

��

��

��

��

��

��

��

�

��

��

��

��

��

�

��

��

��

��

��

��

��

��

��

� ��

��

��

� �

��

��

5

Economic Impact of Utah’s AirportsWhen all factors are accounted for, aviation in Utah creates the following impacts:

General Aviation AirportsEmployment: 3,673 jobsPayroll: $96.67 millionOutput: $274.28 million

Salt Lake City International AirportEmployment: 101,257 jobsPayroll: $2.70 billionOutput: $5.34 billion

Utah’s Smaller Commercial Service AirportsEmployment: 1,425 jobsPayroll: $36.59 millionOutput: $64.88 million

Total Economic Impact of Aviation in UtahEmployment: 106,355 jobsPayroll: $2.83 billionOutput: $5.68 billion

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Total employment is the combination of direct and secondary (multiplier effect) employment.

Total payroll is the combination of direct and secondary (multiplier effect) payroll.

Total output is the combination of direct and secondary (multiplier effect) output.

6

Economic Impact of General Aviation in Utah

General aviation activity can be found at each of Utah’s 47 public-use airports. General aviation is defined as all aviation activity not related to scheduled airline or military operations. Corporate aviation and recreational flying are the most visible types of general aviation, but this category also includes such valuable activities as aerial firefighting, medical evacuation, search-and-rescue, agricultural spraying, and wildlife management. Every part of Utah’s economy is reliant in some way on general aviation. Tenants at these airports – including aircraft maintenance shops, fuel providers, flight schools, corporate flight departments, government agencies, and the airport management itself – all provide jobs, pay wages, and produce goods and services.

Almost 1.1 million general aviation aircraft operations were recorded in Utah in 2003. These flights carried nearly 333,000 visitors using general aviation for business, recreation, and personal travel. These visitors contribute to Utah’s economy by spending money on a variety of goods and services in the state.

Economic Impact of Military Aviation in Utah

Utah is home to a number of U.S. military facilities. Three of Utah’s public-use airports – Salt Lake City International, Salt Lake City Municipal II, and Spanish Fork-Springville – house installations of various National Guard units. Many of the state’s airports also accommodate transient military training aircraft and exercises. Employment, payroll, and output resulting from these military installations and activities are included in the general aviation data presented above.

Hill Air Force Base in Ogden is the most visible of Utah’s military installations. The facility is home to the Air Logistics Center for the 388th Fighter Wing of the Air Combat Command, and the 419th Fighter Wing of the Air Force Reserves. While Hill AFB was not included in this study, recent estimates released by the Utah Legislature show that Hill employs over 22,000 personnel (military and civilian) and adds over $2.1 billion annually to the state’s economy.

*Full-time equivalent employees

7

The spending that occurs as a result of general aviation activity, both on-airport and by visitors, creates the following economic impacts:

First Round Employment* 5,345Payroll $159.80 millionOutput $472.44 million

Secondary Employment* 3,912Payroll $100.33million Output $343.08 million

TotalEmployment* 9,257Payroll $260.13 million Output $815.53 million

Economic Impact of Commercial Service in Utah

The State of Utah has a network of six commercial service airports which provide residents with excellent access to the world’s markets. These airports accommodate a wide variety of airlines, providing non-stop service to dozens of destinations and one- or two-stop access to hundreds more. In addition, air cargo operations benefit the state’s economy by expediting shipments around the globe. Tenants at these airports – including airlines, air cargo companies, concessionaires, airline service providers, and government agencies – all provide jobs, pay wages, and produce goods and services.

More than 18.5 million passengers passed through Utah’s commercial service airports in 2003. Of these passengers, over three million were visitors to the state, and nearly nine million connected to destinations throughout the country from Salt Lake City International. These visitors and connecting passengers contribute to Utah’s economy through spending while in the state.

While Salt Lake City International is perhaps Utah’s most visible airport, the state’s five smaller commercial airports are no less important. Each of these airports offers connecting service to Salt Lake City (with the exception of Bryce Canyon), opening Utah’s more remote areas to the nation’s air travel system. St. George travelers have additional service to Los Angeles, and Bryce Canyon Airport accommodates a wide range of sightseeing and aerial tour flights.

Salt Lake City International Airport is a transportation hub on an enormous scale. The airport is Delta Air Lines’ western U.S. hub, which with its regional partner SkyWest Airlines, offers hundreds of flights per day to dozens of domestic and international destinations. Nearly a dozen other airlines serve Salt Lake City International, including low-fare carriers. Indeed, most of Utah’s travelers can reach the world’s business and tourist destinations with only one or two layovers. The level of passenger traffic that the airport accommodates makes it the 25th busiest in the United States, and its freight handling capabilities make the airport the 30th largest cargo hub in the country, as well. Besides airlines, Salt Lake City International houses dozens of businesses and thousands of jobs, all of which work to make traveling to and from Utah a pleasure.

*Full-time equivalent employees

The spending that occurs as a result of commercial service activity at Utah’s five smaller commercial airports, both on-airport and by visitors, creates the following economic impacts:

First Round Employment* 673Payroll $14.63 millionOutput $18.47 million

Secondary Employment* 314Payroll $9.83 million Output $13.76 million

TotalEmployment* 986Payroll $24.46 million Output $32.23 million

Utah’s Smaller Commercial Service Airports: Bryce Canyon, Cedar City Regional, Moab-Canyonlands Field, St. George Municipal and Vernal-Uintah County

The spending that occurs as a result of commercial service activity at Salt Lake City International, both on-airport and by visitors, creates the following economic impacts:

First Round Employment* 64,940Payroll $1.53 billionOutput $2.80 billion

Secondary Employment* 31,172Payroll $1.02 billion Output $2.04 billion

TotalEmployment* 96,112Payroll $2.55 billion Output $4.84 billion

8

Qualitative Benefits of Utah’s Airports

In the addition to the monetary benefits presented previously, there are many qualitative benefits that contribute to the overall value of Utah’s airport system. These qualitative benefits include activities for which dollar values cannot be readily assigned, but are nonetheless very valuable to Utahans. These benefits enhance the quality of life, health, welfare, and safety of everyone in the state. Some examples include:

• Emergency medical transport • Local police and fire support• Wildfire control operations• Search-and-rescue • U.S. military and other government organizations • Prisoner transport• Mosquito control • Traffic reporting

• Weather forecasting • Statewide agricultural activities • Supporting statewide hunting and

fishing venues • Entertainment opportunities (e.g.,

museums, air shows) • Hosting school field trips and

other educational events• Serving as a staging area for

community events

Business Use of Utah’s Airports

As a part of this survey, approximately 3,000 Utah businesses were surveyed and asked to indicate their reliance on aviation and aviation services. The responses to this survey indicate the following:

• Over 52,000 employees were represented in respondent business surveys. • Approximately six percent of the survey respondents indicated that they own, lease, or charter general aviation aircraft to support their business activities.• Approximately 73 percent of the responding businesses indicated that their employees rely on commercial airline service to conduct business.• Approximately 25 percent of the responding businesses indicated that they have customers or suppliers who rely on commercial airline service when conducting business with their company.• Over 78 percent of the survey respondents indicated that they use air cargo/ package express for transmitting business materials.• Overall, the responding companies estimated that approximately 16 percent of their Utah business activities depend on general aviation, and approximately 25 percent of their business activities depend on commercial air service.• Airports are an important consideration for expanding and/or relocating businesses.

9

Total Economic Impacts

Conclusions

Nearly $5.68 billion in annual economic activity is supported by Utah’s aviation system. To support

this level of economic activity, approximately 106,350 jobs are created in all sectors of Utah’s economy,

with an annual payroll of over $2.83 billion. However, the value of Utah’s aviation system cannot be

measured in monetary terms alone. The state’s airports perform many vital functions, from assisting

emergency response efforts to supporting agriculture to providing entertainment opportunities.

Additionally, most businesses across the state – even those whose employees never board a plane

– benefit in some way from their local airport. It is clear : Utah’s 47 public-use airports are an integral

part of the state’s – and the nation’s – economy.

Employment Over 106,350

Payroll $2.83 billion

Total Output $5.68 billion

10

Prepared by:

www.wilbursmith.com

For more information, contact:Utah Department of Transportation

Division of Aeronautics135 North 2400 West

Salt Lake City, UT 84116

This study was financially sponsored by the following:

The Federal Aviation Administration

Utah Department of Transportation, Division of Aeronautics

The Utah Air Travel Commission

russ mcdonald airfield hangar marketing proposal · russ mcdonald airﬁeld hangar marketing...

Documents