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  • Regarding Boulder Municipal Airport
  • The BDU Buzz
    • 4 Scenarios for BDU
      • Scenario 1
      • Scenario 2
      • Scenario 3
      • Scenario 4
    • Middle Income Down Payment Pilot program
    • FAA tells Boulder who's in charge
  • Boulder Municipal Airport Info
    • Surrounding BDU
    • BDU economics
    • BDU noise abatement
    • Boulder County flight school training areas
    • OSMP Soundscape
    • BDU and the Andrus bike path
    • BDU's Master Plan development
    • BDU MP archive
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  • Aviation Lead around Boulder County
  • General aviation topics, issues
    • Airport Master Plans and the FAA
    • Lead in aviation fuel
    • Noise
    • The 'pilot shortage' and regional airport growth
    • Regional airport economics
    • Safety, security, registration, insurance
  • National regulatory level
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Regional Airport Economics

Socialism for private aviation

It seems we have two airspace systems: one for the public and one for those who can afford to travel and recreate by private plane.

The FAA 2023 budget request is $18.6 billion.  97% of all airports in the U.S. are categorized as GA and more than 97% of all aircraft in this country are also GA.  It is safe to assume that GA will get a good chunk of that $18.6B.
​

Additionally the FAA collects taxes and fees from the flying public.   One estimate is $29 - $200 per seat.  This is in turn distributed to regional airports around the county through grant money.    Regional airports also receive state and municipal subsidies.  Land is often provided for free.  Pollution costs are born by residents. 

​"In the first full accounting (2009) of the 28-year-old Airport Improvement Program, USA TODAY found that Congress has directed $15 billion to general-aviation airports, which typically are tucked on country roads and industrial byways.

"The lawmakers also regularly use general-aviation airports to get around their districts and states, sometimes in planes with lobbyists. Members of Congress took 2,154 trips on corporate-owned jets from 2001 to 2006, according to a 2006 study by PoliticalMoneyLine, an independent research group.


"General-aviation airports handle mostly recreational planes and corporate jets — usually just a few each hour. Half of the airports are within 20 miles of another private-aviation airport, a USA TODAY analysis shows.

"Critics say the number of subsidized airports with no commercial flights is excessive at a time when larger airports are struggling to deal with delays in air traffic, and that much of the money the general-aviation airports get benefits only a few private pilots."    

The people using these services are a very small percentage of the population.  
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"Private jets make up approximately one out of every six flights handled by the Federal Aviation Administration (FAA) but contribute just 2 percent of the taxes that make up the trust fund that primarily funds the FAA." https://ips-dc.org/report-high-flyers-2023/ 

"The ultra wealthy who fly private are costing average flyers who won't ever use a private plane a lot of money," 
https://www.businessinsider.com/ultra-wealthy-private-flyers-are-costing-average-flyers-a-lot-in-taxes-2023-5 

"Public subsidies for luxury private jets," https://saveourheritage.com/WP/WP_Incentives.htm#:~:text=Summary,deductions%2C%20and%20no%20local%20permitting.

Economics of other regional airports

General aviation vested interests regularly tout unsubstantiated economic benefits in their appeals for sustained subsidies for airports.    However, some investigations have shown regional airports to be less lucrative than other land uses.

The City of Santa Monica studied questions about their airport's economic contributions.   "“The study indicated that contrary to conventional wisdom, that Santa Monica Airport’s contribution to the regional economy was far smaller than had been imagined. As was the case with the city itself. In fact, I believe that the principal consultant Paul Silvern likened the tax and employment impact of Santa Monica Airport to a medium-sized strip mall."     

An analysis of the Hillsboro Airport reported, "Presently, tax revenues from HIO are roughly $550,000 annually ($552 per acre). Nearby commercial tax revenue is about $12,900 per acre."     The land upon which public airports are located pay very little in taxes compared to neighboring properties.

Glenwood Springs, CO provides an interesting case study demonstrating two "wildly different" assessments of airport economic benefits depending on the authors of the study.   This small airport hangars 60 planes.  "The city does not have any fulltime employees at the airport. The city airport manager is a part-time position."

It is common practice for the CO Department of Transportation's to use multipliers in calculating an airport's economic benefit.  In one study, the Colorado Department of Transportation’s Division of Aeronautics and Kimley-Horn (who are facilitating Boulder's Community Conversation) stated that "business revenues from the city’s airport increased from $3.9 million in 2012 to $36.6 million in 2018. "   This study factored in numerous economic measures, including hypothetical vacation spending by airport users.  The study estimated 202 jobs facilited throughout the city.   The vested interests  that wrote the report believe it is "responsible" to "put some sort of a multiplier on it" to inflate the numbers.   

​​A separate study done by the city of Glenwood gives a very different perspective. "The city of Glenwood Springs, as part of its Airport Property Scenario Planning Project, hired urban economists Gruen Gruen + Associates to conduct a land-use planning study for the Glenwood Springs Airport.   The study was part of a wider effort to compare potential future uses for the airport property ranging from expanded aviation to a residential village.   Possibilities included: expanded aviation, mixed-use village, and residential village and considered economic impacts, fiscal benefits, and additional community cost-benefit considerations.

According to Gruen Gruen + Associates’ study, the city’s airport had a total operating revenue of approximately $182,160 in 2018. With operating expenses amounting to over $157,000, the airport turned a net profit of $24,282 in 2018 according to that study."   With some airport-based businesses, "the existing airport facilitated approximately 43.8 jobs, ... and had an economic impact on all of Garfield County that amounted to just over $8 million."
The difference in these economic impact estimates highlight the cherry picking and liberties vested interests often take in justifying airport impact and growth.   Also, the City sponsored study actually included societal considerations, which the report by the vested interests did not. 
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References

celebrityprivatejettracker.com/leaderboard/

​Cronic Reliance of General Aviation Airports on Corporate Welfare

Santa Monica Airport economic impact no more than a "medium-sized strip mall"
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​Opinion: Seemingly different issues are pieces of same puzzle in Hillsboro

​Glenwood Springs Airport back on the radar with recent Colorado aeronautics study

Gruen Gruen, Land use scenario planning study for the Glenwood Springs Airport Property

​Feds keep litle-used airports in business, abcnews, Sept 2009

Budget Estimates, Fiscal year 2023, FAA 
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  • Regarding Boulder Municipal Airport
  • The BDU Buzz
    • 4 Scenarios for BDU
      • Scenario 1
      • Scenario 2
      • Scenario 3
      • Scenario 4
    • Middle Income Down Payment Pilot program
    • FAA tells Boulder who's in charge
  • Boulder Municipal Airport Info
    • Surrounding BDU
    • BDU economics
    • BDU noise abatement
    • Boulder County flight school training areas
    • OSMP Soundscape
    • BDU and the Andrus bike path
    • BDU's Master Plan development
    • BDU MP archive
    • Local and State level contact information
  • Aviation Lead around Boulder County
  • General aviation topics, issues
    • Airport Master Plans and the FAA
    • Lead in aviation fuel
    • Noise
    • The 'pilot shortage' and regional airport growth
    • Regional airport economics
    • Safety, security, registration, insurance
  • National regulatory level
  • Resources
    • AFA Lead in Avgas flyer
  • Get updates & join us
  • Contact us