An Economic Impact Survey - COPA€¦ · Web view1.6 A word about the multipliers used in this study 8. Chapter . II - An . Economic Impact Survey of the Calgary Corporate & General

An Economic Impact Survey of the Calgary Corporate &

General Aviation Communities

RP Erickson & AssociatesAVIATION CONSULTANTS To INDUSTRY

April 1998

EXECUTIVE SUMMARY

This report documents the economic impact activity of 115 firms, operating within a 50 km radius of the city of Calgary, who were identified as being active in 1997 in corporate aviation or in the general aviation [GA] community.

The response rate to the survey questionnaire was exceptional: a 90 percent return rate to the actual questionnaire and a 98 percent return rate for core data requests. Only two firms chose not to participate in the survey.

In 1997, the Calgary area corporate and general aviation communities supported a significant level of economic activity.

In direct terms, this sector contributed:

1534 full-time jobs $69.2 million in annual labour income $176.5 million in operations & maintenance expenditures $36.8 million in annual tax base, including $3.1 million paid in municipal taxes $310.4 million in gross revenue activity

When indirect and induced forms of economic activity are included, this sector contributed:

4938 ful1-time jobs $207.5 million in annual labour income $337.9 million in value-added GDP activity

Although GA activities in the Calgary area are scattered throughout 11 airports within a 50 km radius of the city, the industry remains concentrated at the Calgary International airport. Aside from some minor charter activity at the Springbank airport, all of Calgary's corporate aviation activities are conducted at the Calgary International airport.

In addition to the above quantifiable economic benefits, the GA sector provides a sound foundation of aviation expertise which is of substantial benefit to commercial aviation. Additionally, it provides a wide expanse of social benefits to the residents of the Calgary area, ranging from recreational opportunities through air tourism development to volunteerism. Corporate aviation's social benefits are more restricted but also offer career development benefits to its employees and value-added time efficiencies to the executives which it serves.

Unquestionably, in 1997 the corporate and GA sector in the Calgary area provided substantive economic and social benefits to the local economy, within the province and to the economy of Canada as a whole.

AN ECONOMIC IMPACT SURVEYOF THE CALGARY CORPORATE & GENERAL

AVIATION COMMUNITIES

Table of ContentsExecutive Summary iiTable of Contents iiiList of Tables iv

Chapter I - Introduction

1.1 About this report 11.2 Background 21.3 Inclusion criteria 31.4 Study area 51.5 The economic impact modelling process 61.6 A word about the multipliers used in this study 8

Chapter II - An Economic Impact Survey of the Calgary Corporate & General Aviation Communities

2.1 Economic Impact of CorporateAviation at the Calgary International Airport 12

2.2 Economic Impact of GeneralAviation at the Calgary International Airport 14

2.3 Economic Impact of theAviation Community at the Springbank Airport 16

2.4 Economic Impact of theAviation Community at all Other Airports 18

2.5 Total Economic Impact of the CalgaryCorporate & General Aviation Communities 20

2.6 Other Significant Socio-economic Factors 242.7 Conclusions 25

Appendices

I Survey QuestionnaireII Aviation Directories

List of Tables

Calgary Corporate Aviation: 1997 Economic Impact 13Calgary General Aviation: 1997 Economic Impact 15Springbank Aviation Community: 1997 Economic Impact 17All Other Calgary Area Airports: 1997 Economic Impact 19Calgary Area Corporate & General Aviation:1997 Direct Economic Impact 22Calgary Area Corporate & General Aviation:1997 Total Economic Impact 23

Chapter I

Introduction

1.1 About this report

The report was undertaken by RP Erickson & Associates for the Calgary Transportation Authority under

the direction of Mr. Robert Edwards, Chairman, General Aviation Committee. The purpose of the study is

to provide a factual basis for understanding the economic impact of corporate and general aviation in the

Calgary region. It is felt that an understanding of these elements will assist in addressing the future

requirements of this industry segment.

Please direct any enquiries regarding this study to Mr. Don Brownie, Executive Director, Calgary

Transportation Authority at (403) 266-6716.

1.2 Background

Calgary's corporate and general aviation (GA) community is an integral part of a vibrant local commercial

aviation industry that pumps hundreds of millions of dollars in economic activity into the Calgary region.

Within a fifty kilometre radius of Calgary is Canada's fourth largest airport - the Calgary International

Airport ["y passenger activity], the country's fourth largest 'reliever' airport at Springbank [by aircraft

movements], and eleven smaller general aviation airports ranging from the Beiseker Airport in the NE to

the Okotoks AirPark south of the city. This infrastructure supports over one hundred firms offering diverse

services such as pilot & flight training; private & recreational flying; corporate aviation; small rotary and

fixed-wing charter firms; hot air ballooning; glider & sport parachuting; and, a range of specialized aviation

maintenance and support functions. Calgary's corporate aviation community is centred upon the Calgary

International Airport, where 21 major corporate flight departments exist.

In commissioning this study, the Calgary Transportation Authority and the Calgary Airport Authority have

recognized the importance of the corporate and GA sector to Calgary and a requirement to catalogue,

document and assess the socio-economic importance this sector provides to the community. The study will

assist Calgary's aviation practitioners by providing an important core data set upon which future

development and planning can be based.

The study will also provide its sponsors with a valuable communications tool. In particular, the economic

impact assessment will serve to heighten political, business and community awareness as to the relative

importance of the Calgary and area corporate and general aviation sectors. It will also serve as an important

base-line against which future development or investments may be measured.

1.3 Inclusion criteria

One of the earliest challenges faced by the consultants and the General Aviation Committee was to define

what general aviation is and what forms of economic activity would be included in this report. We

approached a number of national and supranational organizations seeking definitions for general aviation.

Defining corporate aviation activity was a far easier task, as we were able to obtain a comprehensive

definition from the Canadian Business Aircraft Association. Oddly, no consensus on what constituted GA

activity could be reached in our discussions with several provincial aviation councils, Transport Canada,

the Canadian Owners and Pilots Association, the Recreational Aircraft Association, the Air Transport

Association of Canada, the American Owners and Pilots Association, and the Federal Aviation

Administration nor were IATA or ICAO helpful. Ultimately we used the Canadian Aviation Regulations

[CARs]1 as a starting point for defining GA commercial activities, and later filled out our criteria through a

process of internal discussion with input from the Steering Committee.

Within this report, corporate aviation is defined as:

"Corporate aviation is the use of aircraft, owned or leased, and operated by a corporation or a business firm for the transportation of personnel or cargo in furtherance of the corporation or firm's business in which the aircraft are operated by professional flight crews receiving a direct salary or compensation for the piloting services provided".

The Canadian Business Aircraft AssociationOttawa

1 Canada's aviation safety regulations are contained in Transport Canada's Canadian Aviation Regulations [CARs]. The CARs contain precise definitions for commercial aviation activity which the authors of this report have found useful for defining small-scale, commercial aviation activity which we include in the GA category.

Within this report, general aviation is defined as:

all aviation activity pursuant to the permitted activity contained in CARs under: 'Aerial Work' [702.01]; 'Air Taxi' [703.01]; and, 'Commuter' [704.01] regulations - essentially, all non-scheduled, non 'common carriage' aviation activity performed for-hire by aircraft of less than 50,000 lb maximum take-off weight [MTOW] and operated with fewer than 19 seats;

all pilot and flight training activities;

all aviation services which support private & recreational flying;

all hot air ballooning activities;

all glider/soaring and sport parachuting activities;

all aviation maintenance & specialized repair or support functions;

all educational, promotion or support efforts whose goal is to further general aviation interests;

that portion of government-provided services, also including NAV CANADA, required by the general or corporate aviation community; and,

that portion of airport fuel sales utilized by the corporate or general aviation community.

General aviation is not: any scheduled or charter commercial air carrier activity undertaken at the

Calgary International airport main airport terminal building, and/or any activity operated under CARs [705.01];

any mainline air freight or courier operations feeding trunk services into major integrator hubs;

any ad-hoc, air freight charter operations undertaken by turbine jet aircraft with an MTOW of greater than 50,000 lb;

on-airport, non-aviation commercial services, such as gas stations and restaurants;

off-airport support professional services in the fields of banking, accounting, legal or medical services; and,

aerospace manufacturing.

1.5 Study area

The RFP called for a review of airports within a 50 km radius of Calgary. The

1988 Alberta Air Facilities Map produced by the Alberta Aviation Council for

Alberta Transportation depicts nine 'general aviation' airports within a 50 km

radius of Calgary, in addition to the major Calgary International and

Springbank Airports.

These are: Airdrie Airport ft Beiseker Airport ft DeWinton Airport ft DeWinton/Highwood ft Okotoks Air Park ft Indus - Winters Aire Park ft Strathmore/Nelson Airfield * Strathmore/Jackson Airfield * Strathmore McClain Airfield *

Certified aerodromes are those which require the operator to maintain and operate the site in accordance with applicable Transport Canada standards. Regular inspections are conducted by Transport Canada to confirm compliance.

Registered aerodromes are those listed in the Canada Flight Supplement but are not certified. Information for these airports is provided by the owner/operator, and is verified by letter from the operator once a year with Transport Canada who maintain~ a three to five year inspection cycle for such airports.

* Not in operation at the time of the survey.

All of the above airports were visited by the consultants and all aviation related, commercial activities

which met the Inclusion Criteria were reviewed. In addition to these airports two other airfields - located at

Okotoks West and wholly owned by the Cu Nim Gliding Club, and the Westport Heliport within the

western reaches of Calgary's city limits, were also reviewed.

1.6 The economic impact modelling process

Economic impact analysis is based on the premise that operations within various industries in an economy

are closely related or linked to each other; that is, an increase in the activity levels in one industry will

produce a positive 'domino' effect on other industries. Economists discuss the impact that one sector has on

another in terms of indirect and induced effects. The total economic impact is the sum of the direct, indirect

and induced effects.

In this report:

Direct economic effects are those which include all of the economic activity required to mount a corporate or general aviation presence at any of the eleven airports in the study area.

Indirect economic effects are those due to the parallel co-activities which support corporate or general aviation operations. Some broad examples would be: the inputs required to find, process and ship refined oil products used aboard aircraft, the office supply industry which supports aviation administration functions, or the construction industry which is impacted by expansion or renovation plans, etc. This economic activity is accounted for by multipliers which attempt to quantify the interactive linkages within the economy impacted by corporate and GA's direct activity.

Induced economic effects are those due to the overall increase in the goods and services produced within an economy, arising from the spending power of direct and indirect employees. For example, the auto mechanic whose services are in demand by an employee of a corporate or general aviation firm who requires the use of his/her car to get to/from the airport, or the movie theatre operation which benefits from the disposable income of corporate or general aviation workers, etc. As in the case in calculating the indirect benefits, multipliers are used to identify induced activity.

Southern Alberta's aviation industry is a good example of a highly integrated sectoral industry which has

significant linkages throughout the domestic economy. The multipliers associated with the aviation sector

are higher than most primary sectors and, as such, the potential impact to the overall economy linked to an

increase in corporate or general activity is significant.

The most common economic measures used in economic impact surveys are employment

[broken down to include full-time equivalents [FTEs] and annual labour income], value-

added gross domestic product [GDP], taxes and total output - more commonly referred to

as gross revenue activity.

In this report:

Employment is measured by direct FTEs and by annual income of the employees required to mount a corporate or general aviation presence. FTEs are expressed in person-years and labour income by dollar value. Employment multipliers are used to generate the associated indirect and induced impacts.

Value-added Gross Domestic Product (GDP) is defined as the amount of value to the local economy created through operations and maintenance expenditures, net the cost of 'leakages' to other parts of the country. Leakages outside the Alberta economy are accounted for by a ratio multiplier produced by Statistics Canada. A GDP multiplier is used to generate the associated indirect and induced impacts.

Total Taxes is the aggregate of all of the federal, provincial and municipal taxes paid. The questionnaire asked that municipal taxes be also stated separately~. No multiplier effort has been extended to taxes due to the differing federal, provincial and municipal tax tiers and since both commodity and non-commodity tax information has been sought.

Gross Output/Total Revenues is the aggregate of all of the goods and services, capital costs and profits resulting from corporate or general aviation activities. However, this category is prone to the 'double counting' of inputs and also features significant leakages to other areas of the country. Thus, value-added GDP is an indicator generally preferred by economists as a more accurate reflection of local economic activity. No multiplier effort has been extended in this study to gross output/total revenue activity.

2 It is the consultant's observation from feedback received from the questionnaire respondents that this category of data was the most difficult to accurately access. Most noted that they were unable to precisely assess federal payroll contributions and the varying levels of excise and provincial fuel taxes. As a result, it is suggested that this category of data be cautiously interpreted.

1.7 A word about the multipliers used in this report

Multipliers are used to infer indirect and induced economic activity from a measure of direct economic

activity. Multipliers are not directly observed; they are inferred from an economic model. By far the direct

measure is the most accurate, however, multipliers are virtually the only tools available to researchers

attempting to identify the overall impact of a sectoral activity within a national or regional economy.

Considerable thought was directed at choosing the most appropriate multipliers for this report. The

consultants have chosen an Alberta-specific, Statistics Canada open multiplier set derived from that

agency's 1984 Input-Output Model, under the 'Air Transport & Services Incidentals' category contained in

the Make/Use/Demand Matrix, The Input-Output Structure of the Canadian Economy, 1992, Statistics

Canada, Cat. No 15-201. This is the latest Catalogue 15-201 available and was released in February, 1997.

In this report, the absolute multipliers applied to the aggregate direct corporate and general aviation data

collected are:

Labour Value-added

Employment Income GDP

Direct + Indirect 1.79 1.55 1.74

Induced 1.43 1.45 1.39

Total 3.22 3.00 3.13

A ratio multiplier of 1: 0.61179 is used to convert Operations andMaintenance expenditures to value-added GDP, that is for every$1,000,000 of O&M direct expenditure activity, the Statistics Canadamodel identifies $611,790 of value-added. GDP activity as occurring inAlberta.

Chapter II

An Economic Impact SurveyOf the Calgary Corporate &

General Aviation Communities

The Calgary area supports an active corporate aviation sector. Since Calgary is the

headquarters for Canada's oil and gas sector, it is not surprising that a number of major

corporate flight departments exist to support the multi-billion dollar activities of these

companies. The level of corporate activity in the Calgary area has also provided

opportunities for the growth of several, significant corporate charter companies. Further,

two major corporate FBOs can also trace their presence to the overall level of corporate

aviation activity generated by Calgary's head office environment. Corporate aviation in

the Calgary area is centred within the McCall South and McKnight aviation parks at the

Calgary International Airport. Several, smaller charter firms operating from the

Springbank airport reported a "very minor amount" of corporate aviation activity.

General aviation in the Calgary area is a multi-faceted sector with diverse activities

ranging from private pilot operations, flight training, soaring, ballooning, sport

parachuting, small charter operations - both fixed and rotary wing - all of which are

supported by a multiform aviation sales, professional services, maintenance and support

sector. Calgary's GA community is located primarily in the McCall South and McKnight

aviation parks at the Calgary International airport and at the Springbank 'reliever' airport.

Some GA firms have located in the adjacent industrial parks surrounding the Calgary

International airport. Significant specific GA activities also occur at several of

the smaller airports within 50 km of Calgary; such as the concentration of sport

parachuting activities at the Airdrie airport and the soaring/gliding activity at the Okotoks

West airfield.

As this Chapter will depict, the economic impact of corporate and general aviation in the

Calgary area is significant. It has been measured in terms of employment [FTEs], labour

income, total operations and maintenance expenditures [converted to value-added GDP

output as detailed in Section 1.6], total taxes, municipal taxes, and gross revenues. Data

has been sought for the 1997 calendar year. These leading indicators are expressed in

dollar values and in person-years of employment [FTEs]. Direct, indirect and induced

forms of activity have been considered for employment and GDP output.

The data compiled in this study was obtained via a questionnaire circulated amongst 110

firms identified as meeting the Inclusion Criteria [Section 1.3], and located within the

Study Area [Section 1.4]. A copy of the Survey Questionnaire is located in Appendix I.

Where necessary, only that portion of a firm or agency's overall activities which met the

Inclusion Criteria has been included [e.g. all government organizations were asked to

differentiate and to only include their activities directly related to supporting corporate&

or GA]. Throughout the study, a conservative approach has been intentionally

undertaken.

Key principals at each identified firm were visited by the consultants where the

underlying rationale for undertaking the study was explained, where the objectives of the

study could be examined; the value of their participation fully explored; where the

confidentiality of their data could be assured; and, where each of the firms or

organizations could be invited to a Participants' Seminar. Further, this exposure permitted

the consultants an opportunity to enquire as to the geographic dimensions of a firm or

organization's overall activities. As noted, our intent was to undertake a conservative

approach in arriving at the economic impact attributable to GA and corporate aviation in

the Calgary area

Therefore, we only sought to document that economic activity which was benefiting the

Calgary area. Thus, where a firm may have maintained a head office function at Calgary

and field operations elsewhere in the province, Canada or abroad, we ensured that only

that economic activity which occurred in the Calgary area was documented.

This approach resulted in an exceptional response rate. Of the 115 firms surveyed, 104

returned or completed the questionnaire and another 9 provided incomplete information.

Two firms chose not to participate. This resulted in a 90 percent response rate to the

questionnaire, and a 98 percent response rate to what was considered the critical

information base - employment by FTEs, labour income, and O&M expenditures which

was provided by the 9 firms who returned incomplete results. The economic activities of

the two, smaller GA firms choosing not to participate were estimated.

The names of the firms and organizations surveyed are located in the Aviation

Directories included in Appendix II. It is noted that several firms operate under two or

more trade names, although we may have only included a single contact in a given

Directory for that organization's overall activities.

The economic impact of the Calgary area corporate and general aviation community is

provided in Section 2.5. The overall impact has been sub-divided into four categories; the

impacts associated with corporate aviation [Section 2.1]; the Calgary International airport

general aviation community [Section

2.2]; the aviation community at the Springbank airport [Section 2.3]; and, the combined

economic activity of all of the aviation firms located at the 11 other airports within the

study area [Section 2.4].

2.1 Economic Impact of Corporate Aviation at the Calgary International Airport

Within Calgary's corporate aviation community 28 firms or organizations were identified as meeting the

Inclusion Criteria. Virtually all of this activity occurs on-airport at the Calgary International airport.

A total of 269 annual full-time equivalent employees can be attributed to Calgary's corporate aviation

sector. Their aggregate labour income for the 1997 calendar year was identified at $16.995 million. Total

O&M expenditures were $46.357 million. A total tax base of $8.930 million was identified, of which

$1.053 million was paid in municipal taxes to the City of Calgary. The gross revenues for this sector were

identified at $30.955 million, but it is important to note the 16 'not-for-profit' flight departments reporting

no revenue activity.

When the indirect and induced multipliers are applied to the above direct economic activity, the significant

impact of Calgary's corporate aviation sector on the local economy can be realized. Within the Calgary

area, 866 full-time, annual jobs are dependent upon corporate aviation, generating an annual labour income

of $50.985 million. The total value-added GDP activity created by corporate aviation in 1997 was $88.769

million.

This information is provided in tabular form on the following page.

2.2 Economic Impact of General Aviation at the Calgary International Airport

Within the Calgary International airport's general aviation community, 58 on and off-airport firms or

organizations were identified as meeting the Inclusion Criteria.

A total of 1118 annual full-time equivalent employees can be attributed to the Calgary' International

airport's GA sector. Their aggregate labour income for 1997 was identified at $46.079 million. Total O&M

expenditures were $1 13.987 million. A total tax base of $25.519 million was identified, of which $1.947

million was paid in municipal taxes to the City of Calgary. The gross revenues for this sector were

identified at $258.875 million.


impact of Calgary's GA sector on the local economy can be realized. Within the Calgary area 3600 full-

time jobs are dependent upon GA, generating an annual labour income of $138.237 million. The total

value-added GDP activity created by GA at the Calgary International airport in 1997 was $2 18.274

million.


2.3 Economic Impact of the Aviation Community at the Springbank Airport

At the Springbank airport 21 firms or organizations were identified as meeting the Inclusion Criteria. All

of the direct economic activity created by the Springbank airport occurs on-airport.

A total of 117 annual full-time equivalent employees can be attributed to Springbank's GA sector. Their

aggregate labour income for 1997 was identified at $5.033 million. Total O&M expenditures were $15.299

million. A total tax base of $2.212 million was identified, of which $66,000 was paid in municipal taxes to

the Municipal District of Rockyview. The gross revenues for this sector were identified at $18.632 million.


impact of Springbank's GA sector can be realized. Within the area 377 full-time jobs are dependent upon

GA, generating an annual labour income of $15.099 million. The total value-added GDP activity created by

GA at the Springbank airport in 1997 was $29.296 million.


2.4 Economic Impact of the Aviation Community at all Other Airports

At all other airports within a 50 km radius of Calgary only 6 on-site firms were involved in commercial

aviation activities, and all met the Inclusion Criteria.

A total of 29.5 annual full-time equivalent employees can be attributed to the other airports' GA sector.

Their aggregate labour income for 1997 was identified at $1.053 million. Their total O&M expenditures

were $812,000. A total tax base of $179,000 was identified, of which $20,000 was paid in municipal taxes

to the Municipal Districts. The gross revenues for this sector were identified at $1.918 million.

When the indirect and induced multipliers are applied to the above direct economic activity: within the

area, 95 full-time jobs are dependent upon GA, generating an annual labour income of $3. 159 million. The

total value-added GDP activity created by GA at the other airports in 1997 was $1.555 million.


2.5 Total Economic Impact of the Calgary Corporate & General Aviation Communities

Within the Calgary area, 115 firms or organizations were identified as meeting the Inclusion Criteria.

A total of 1534 direct annual full-time equivalent employees can be attributed to the corporate and GA

aviation sector in the Calgary area. Their aggregate labour income for 1997 was identified at $69.160

million. Total O&M expenditures were $176.455 million. A total tax base of $36.840 million was

identified, of which $3.086 million was paid in municipal taxes. The gross revenues for this sector were

identified at $3 10.380 million.


impact of the Calgary area corporate and GA sector on the local economy can be realized. Within the

Calgary area 4938 full-time jobs are dependent upon the corporate and GA sector, generating an annual

labour income of $207.480 million. The total value-added GDP activity created by this sector in the

Calgary area in 1997 was $337.894 million.

This information is provided in tabular form on pages 22 and 23.

On a percentage basis by airport, the above economic benefits are distributed:

Labour Value-Added Tax Municipal Gross

FTEs Income GDP Base Taxes

Revenues

Corporate 18% 25% 26% 24% 34%

10%

Calgary GA 73% 67% 65% 69% 63%

83%

Springbank 8% 7% 9% 6% 3%

6%

All Other 2% 2% P/o 1% 1%

1%

When the aggregate impact of the Calgary International airport is isolated, the above

economic benefits are distributed:


FTEs Income GDP Base Taxes Revenues

Calgary Int 90% 90% 89% 92% 96% 92%

All Others 10% 10% 11% 8% 4% 8%

From the above table, it is obvious that the industry is overwhelmingly concentrated at

the Calgary International airport.

The percentage split of economic activity between Corporate and GA activity over the

study area was:


FTEs Income GDP Base Taxes Revenues

Corporate 18% 25% 26% 24% 34% 10%

GA 82% 75% 74% 76% 66% 90%

2.6 Other Significant Socio-economic Factors

The Survey Questionnaire sought general comments from the respondents related to their views on other

important socio-economic factors which they felt were associated with corporate or general aviation.

The following trends are noted from the information collected:

virtually all respondents commented on the employment opportunities, above average incomes, taxes paid, local expenditures and generally positive benefits to the local and regional economy provided by the corporate & GA sector;

the sector was seen by others as a valuable development tool for creating and building a skilled aviation workforce. Many of the GA participants noted that their sector provided a foundation of skilled and experienced workers for commercial and corporate aviation and, as importantly, acted as a means for furthering individual career development;

several participants suggested that corporate and GA attracts business and industry to Calgary;

The GA sector was noted as an important source of recreation for many local residents, including the enjoyment by non-aviation residents of the Calgary area when airshows are undertaken at Springbank;

a number of the corporate operators commented on enhanced productivity for senior management's time and the ability to conduct business away from Calgary and to return in a day as positive benefits;

corporate and GA's generally 'clean' environmental record was noted;

GA was seen as supporting inbound aviation tourism into the Calgary area,

the sector provides vital support for air ambulance/medevac operations; and,

as a valuable outlet for volunteerism - one organization noted that its existence was entirely due to the goodwill of roughly 20,000 hours of volunteerism annually, and that its presence materially improved the social well-being of its volunteer workforce.

Some of the respondents chose to voice their concerns for the future of the industry and

these comments included:

numerous concerns were directed at the perception that increased levels of taxation and new service fees, including the impending NAV CANADA fees on recreational aircraft, would be harmful to the sector; and,

a number of the Springbank-based operators voiced concerns that near-by land development would negatively impact the future viability of the airport.

2.7 Conclusions

In 1997, the Calgary area corporate and general aviation communities supported a significant level of

economic activity in the Calgary area.

In direct terms, this sector contributed:

over 1500 full-time jobs roughly $70 million in annual labour income over $175 million in O&M expenditures roughly $37 million in annual tax base over $300 million in gross revenue activity

When indirect and induced forms of economic activity are included, this sector contributed:

roughly 5000 full-time jobs over $200 million in annual labour income a third of a billion dollars in value-added GDP activity

Although GA activities in the Calgary area are scattered amongst 11 airports, the industry

remains concentrated at the Calgary International airport. Aside from some minor charter

activity at the Springbank airport, all of Calgary's corporate aviation activities are

conducted at the Calgary International airport.

In addition to the quantifiable economic benefits, the GA sector provides a wide expanse

of social benefits to the residents of the Calgary area, ranging from recreational

opportunities through tourism development to volunteerism. Corporate aviation's social

benefits are more restricted but nonetheless offer career development benefits to its

employees and value-added time efficiencies to the executives which it serves.

Unquestionably, in 1997 the corporate and GA sector in the Calgary area provided

substantive economic and social benefits to the local economy, within the province and to

the economy of Canada as a whole.

APPENDIX I

SURVEY QUESTIONNAIRE

SURVEY QUESTIONNAIRE

SURVEY OF THE ECONOMIC SIGNIFICANCE OF THECALGARY CORPORATE & GENERAL AVIATION

COMMUNITY

Please complete this survey using data for 1997 or for your most recent fiscal year. All data will be treated in strict confidence and will not be released in a disaggregated form to any individual or agency. Only aggregate industry data will be included in the final report.

Please answer the questions as completely as you can. If you are not entirely certain of an answer, please give your best estimate - your estimate will surpass by far our best guess in accuracy.

Feel free to direct any questions pertaining to this questionnaire or study to either:RP Erickson & Associates Mr. Don BrownieAviation Consultants to Industry Executive DirectorCalgary, Alberta Calgary Transportation AuthorityTel. (403) 241-9633 Tel. (403) 266-6716Fax. (403) 241-8696 Fax. (403) 269-4339

Section A: General Information

(i) Name of firm, a contact person, and telephone number.

(ii) Please circle the classification(s) that best describe your firm's activities.

Pilot or Flight TrainingPrivate or Recreational FlyingCorporate AviationAir Taxi or Charter OperatorAircraft Sales & SupportMaintenance & OverhaulOther aviation support servicesOther__________________

Section B: Employment, Expenditures and Tax DataWe are seeking the impact from that portion of your firm's business activity which pertains to general

aviation or corporate aviation. Round all financial data to the nearest $'000.

Employment - 1997

(i) Average number of employees working for your firm. Please estimate in full-time equivalents [e.g., 1 part-time worker @ 20 hrs/week = .5 full-time employee].

(ii) Total payroll expenses for employees including wages, salaries, and all employee benefits.

$____________________

Expenditures for Goods and Services - 1997

(i) Total operating expenditures for goods and services, excluding wages, salaries, and employee benefits.

$________

Taxes - 1997

(i) Total municipal, provincial, and federal taxes including payroll, sales, GST, fuel taxes and other applicable taxes.

$____________________

(ii) Please estimate the percentage of the above tax total which your firm paid in local municipal taxes.

Section C: Revenues

(i) Gross annual revenues for 1997 or the last complete fiscal year from all sources.$_____________________

Section D: General Comments

(i) In your opinion, what are the principal socio-economic benefits of general or corporate aviation to the Calgary area.

(ii) What are the major advantages to the community and region which result from the existence of the airport.

(iii) What, in your view, is the future of general or corporate aviation in the Calgary region.

Any additional comments you feel may be appropriate can be added below or to the back of the questionnaire.

Your co-operation is very much appreciated - thank you,

APPENDIX II

AVIATION DIRECTORIES

An Economic Impact Survey - COPA€¦ · Web view1.6 A word about the multipliers used in this study 8. Chapter . II - An . Economic Impact Survey of the Calgary Corporate & General

Documents