General Aviation’s Contribution To The U.S. Economy May 200(3)

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1  Commercial air carriers sell air transportation to passengers and shippers. Commercial air carriers include operators of small, propeller-driven aircraft (under Part 135 of the Federal Aviation Regulations) as well as operators of jet airliners (under FAR Part 121).

The GA sector contributed at least $150 billion to national output in 2005 and, directly or indirectly, employed more than 1,265,000 people whose collective earnings exceeded $53 billion. It should be noted that these figures are very conservative, first, because they reflect only the economic output that likely would not have been generated if GA did not exist and, second, because the analysis was restricted to those portions of GA’s contribution for which MergeGlobal found sufficiently detailed and reliable data. As will be discussed later in this report, the estimates of GA’s economic contributions do not, by any means, include all of GA’s significant net benefits to the U.S. economy.
General Aviation contributes to the U.S. economy by creating output, employment, and earnings that would not otherwise occur. Direct impacts, such as the purchase of a new aircraft, multiply as they trigger transactions and create jobs elsewhere in the economy (e.g., sales of aluminum, plastic, rubber, electronics, and the wide range of other materials and components required to make an airplane). To capture these ripple effects, MergeGlobal estimated GA’s “direct”, “indirect”, and “induced” contributions to the U.S. economy as summarized below:
Table 1
General Aviation’s Contribution to the U.S. Economy In 2005
(All data except employment in $ billions)

General Aviation benefits people and communities throughout the United States, and its economic contribution is significant in all regions of the country, as shown on the following page4:
2  Based on U.S. gross output of $22.7 trillion in 2005, estimated from the 2004 figures reported by the Bureau of Economic Analysis (U.S. Department of Commerce).
3  Based on U.S. total wages & salaries of $7.0 trillion and total employment of 140 million workers in 2005, as reported by the Bureau of Labor Statistics (U.S. Department of Labor).
4  Available data limits us to estimating GA’s economic contribution at the state level. It is tempting to distribute state-level impacts to congressional districts. Unfortunately, doing so would require assumptions that cannot be proven right and might well be proven wrong. For example, it is technically possible to allocate GA’s economic contribution based on each congressional district’s share of state employment in a particular industry. The problem is that many industries (such as aircraft manufacturing) have economies of scale that lead to concentrations of employment.

CharT 1
Map of General Aviation’s Total Economic Contribution by State In 2005
NH: 0.5% 
0.3%  2.2%  0.2%  0.2%  VT: 0.2%  0.4% 
Not to scale  1.3% 0.7% 12.2%  0.4% 0.7%  1.5% 0.3%  0.3% 0.5% 4.8%  4.1% 2.4% 2.0% 1.0% 1.7%  0.5% 1.2% 2.3% 2.8% 3.7%  4.1% 6.2% 2.3%  MA: 2.7% NJ: 3.0% CT: 1.7% DE: 0.4% RI: 0.4% DC: 0.4% MD: 1.4% 
0.3%  1.9%  0.6%  0.9%  0.7%  1.8%  2.8% 1.1% 
Not to scale  0.6%  1.2%  5.9% 
7.5% 
GA’s Total Economic Contribution In 2005  1.4% 
1 Dot = $25 million  5.1% 

Table 2
Leading States In Terms Of GA Total Economic Contribution In 2005 ($ billions)
Rank  State  Total  % of U.S. GA 
1  California  $18.2  12.2% 
2  Texas  $11.2  7.5% 
3  New York  $9.3  6.2% 
4  Georgia  $8.8  5.9% 
5  Florida  $7.5  5.1% 
　
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