BA + GA = WIN for the City
Published in Midwest Flyer – June/July 2018 issue
Business Aviation (BA) is an extremely important part of the General Aviation (GA) industry. Studies have shown for years that companies that use aircraft in their business are significantly more successful than those that do not. Forward thinking businesses regularly use aircraft to minimize travel time; and to enhance their efficiency, productivity, safety and the security of key personnel. Businesses also use aircraft to help ensure they remain competitive in today’s highly competitive and volatile marketplaces. In fact, these same businesses outperform companies that do not use aircraft as part of their business model, by up to 70%, according to the National Business Aviation Association (NBAA). Clearly aviation gives these businesses a competitive advantage that translates into success, stability and growth.
If aircraft are so good, why don’t more companies use them? NBAA says, “In the U.S. alone, more than 10,000 companies own over 15,000 business aircraft, and nearly 6,000 more own fractional shares, while additionally thousands (of companies) regularly charter business aircraft.”
According to additional NBAA studies, 95% of Fortune Magazine’s “Change the World Top 20” companies use business aircraft. 98% of Fortune Magazine’s Top 50 “World’s Most Admired Companies,” use business aviation. And, 100% of the “100 Most Trustworthy Companies in America” are business aircraft users!
The + GA Factors
Many businesses, including the Fortune 500 companies, look for smaller cities that have a good airport and easy access to quality ground transportation. They want to locate on or near that airport so their executives, technical personnel, engineers and suppliers, can have fast, efficient options to meet the needs of their business in a timely and cost-effective manner. It also makes it easier to depart from a GA airport and fly to a customer’s location to handle urgent issues or demonstrate the latest and greatest product or service that could raise the bottom line for the customer!
So, what does this mean for your General Aviation airport? Well, think about this… A single business aircraft can bring a community and its airport $2.5 million in economic benefit. Across the nation, Business Aviation generates more than $200 BILLION in national economic activity annually. One other point of note is that more than 55% of companies that use Business Aviation as an integral part of their daily operation have more than 500 employees.
Imagine a business of that caliber wanting to locate in your community, at or near your airport, and bringing many new, well-paying jobs with them. Now imagine the benefits that business could bring to your city. Not only would more local people be able to have good jobs, but those new employees may need new housing, new cars, and will likely spend more of their income at local businesses. As jobs are created within the community, local businesses will thrive and grow because of the employees that come to the community to fill the newly created jobs.
GA Serving America states on their information-filled website, “Many manufacturing firms intentionally locate themselves within 10 miles of a public-use airport so that they can exploit the speed and access provided by GA. Community airports allow local businesses to reach new markets, work with suppliers from neighboring states, or to ship time-critical parts and materials to their customers. Local area businesses gain enduring competitive advantages when they use the nearby airport; at the same time, the surrounding community gains jobs.”
Now think about the multiplier effect. According to the American Independent Business Alliance, “The multiplier results from the fact that independent locally-owned businesses recirculate a far greater percentage of revenue locally compared to absentee-owned businesses (or locally-owned franchises*). They create more local wealth and jobs.
The multiplier is comprised of three elements – the direct, indirect, and induced impacts. Direct impact is spending done by a business in the local economy to operate the business, including inventory, utilities, equipment and pay to employees. Indirect impact happens as dollars the local business spent at other area businesses re-circulate. Induced impact refers to the additional consumer spending that happens as employees, business owners and others spend their income within the local economy*.
The new industries will develop facilities and bring jobs and economic growth to your community because of the local airport. That means construction jobs, jobs for plumbers, roofers, electrical workers, flooring installers, glazers, cement workers, food service workers, health and medical services, transportation, tool suppliers, clothing stores and others from the local community and surrounding region.
The construction of a new facility for a company to locate in your community can also mean immediate improvements to local infrastructure. Improvements can include a new or improved road, or better street lighting for instance. And once built, these improvements benefit the entire community! These benefits may not have existed were it not for your local General Aviation airport and the open door to your community that your airport represents.
Now you can clearly see how BA + GA is not only a win for your local airport, but is also a win for your city that benefits everyone there, whether or not they fly.
*Content Source: https://www.amiba.net/resources/multiplier-effect/
