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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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Suggested Citation:"Appendix V Short Versions of Case Studies." National Academies of Sciences, Engineering, and Medicine. 2022. Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Washington, DC: The National Academies Press. doi: 10.17226/26682.
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107 A P P E N D I X V Short Versions of Case Studies This appendix includes the “short versions” of the 14 case studies. The in-depth versions of the case studies are available in ACRP WebResource 12: Air Service Development and Regional Economic Activity, and a compilation of the in-depth case studies is available on the National Academies Press website (www.nap.edu) by searching in ACRP Web-Only Document 53: Measuring and Understanding the Relationship Between Air Service and Regional Economic Development. Cases That Illustrate Changes in Passenger Service and Regional Economic Activity – Atlanta, Georgia – Austin, Texas – Columbia, Missouri – Des Moines, Iowa – Fresno, California – Green Bay, Wisconsin – Greensboro/High Point, North Carolina – Miami, Florida – Raleigh–Durham, North Carolina – Reno–Tahoe, Nevada – San Diego, California – Santa Rosa, California Cases That Illustrate Changes in Air Cargo and Freight and Regional Economic Activity – Allentown–Lehigh Valley, Pennsylvania – Huntsville, Alabama Passenger Service Airports Greater Atlanta: Aviation and Increasing Employment in Two Major Industry Sectors The metropolitan Atlanta region is the economic hub of the American southeast, home to the world’s busiest airport: Hartsfield-Jackson Atlanta International Airport (ATL). The region was selected as a case study because of its size and the economic strength of employment in two sectors: (1) Transportation, logistics, and warehousing and (2) IT.

108 The Region and its Economic Strengths The Atlanta-Sandy Springs-Alpharetta MSA had a population of over 6 million, ranking 9th in the country. The region is home to 16 Fortune 500 companies, including Delta Air Lines (Delta), Coca-Cola, Home Depot, UPS, the Southern Company and another 13 companies listed among the Fortune 1000. The region ranks third nationally for Fortune 1000 headquarters. The region boasts a rapidly growing international population, and foreign investment has increased over time. In 2018, Metro Atlanta was home to more than 2,700 foreign-owned companies. # % Population 5,930 6,853 923 16% Total Employment 3,607 4,445 838 23% 2008 2019 Change 2008-19 According to the Atlanta Regional Commission (ARC), the MPO for the region, the area’s freight and logistics sectors is a key component of the region’s economic base, responsible for 38% of the total regional economic output. Metro Atlanta’s global logistics presence is built in part on its airport infrastructure, which is the 14th busiest cargo airport in the U.S. by landed weight. The U.S. cluster mapping project’s data show that transportation and logistics (including air transportation, trucking, ground transportation and support activities) was the 3rd largest “traded cluster” in the metro area in terms of total employment. Among traded clusters, it trailed only business services (e.g., corporate headquarters, computer services, consulting, and engineering) and Distribution and Electronic Commerce (which includes warehousing and storage along with wholesale suppliers of professional and commercial equipment and supplies). The area’s economy also features several other top performing traded clusters, including marketing, design, and publishing; and communications equipment and services. Another industry sector where Greater Atlanta has a competitive advantage is IT, based on analyses of the strength of employment in the sector compared to national averages. The Airport and its Air Service Home to Delta, ATL offered nonstop service to 150 domestic and 75 international destinations in 2019. Total passenger traffic at ATL rose from 88 million in 2008 to almost 108 million in 2019. The total number of flights dropped from 475,000 to 436,000 (-8%), a reflection of the broader industry trend toward up-gauging aircraft. In the same time period, total available (outbound) seating capacity rose from 56 million to 63 million (14%). As a result, the average number of available seats per departing aircraft increased from 117 to 145 (24%) The airport reported that airlines carried a total of over 600,000 metric tons of cargo in 2019 – 40% of which was carried domestically and 60% internationally (freight and belly cargo). From 2013 through 2019,

109 total tonnage handled at the airport increased by 37,000 tons (6%), with international tonnage increasing more than domestic. Connectivity “Connectivity” generally means the ability to reach a wide range of places in a short amount of time. Connectivity creates efficiencies that make firms more productive, which in turn attracts more businesses that have their choice of locations. ATL is among the most connected in the world. In 2019, ATL ranked 12th in the world and 3rd in the U.S. in terms of total connectivity (including both domestic and international service). The figure indexes the change in connectivity at ATL between 2008 and 2019. ATL was not immune to the impact of the Great Recession. ATL’s connectivity dipped for several years due to the industry-wide consolidation of air operations. The airport returned to its pre-recession levels by 2015 and maintained moderate growth in connectivity. From 2015 to 2019, connectivity increased by 15 percent. Changes in Air Service and Economic Activity O&D traffic at ATL is highly correlated with total local employment. The figure summarizes the relationship between total O&D traffic and regional employment. The correlation coefficient is 0.93. The correlation between total O&D traffic and “aviation-reliant” industry sectors such as IT; PST services; and management of companies, is also a near-perfect 0.983. However, correlation does not establish causation. That is, it is not evident whether rising total employment levels leads to more air traffic, or whether more air traffic leads to more total employment. At the same time, it is important that readers recall that much recent academic research shows that improvements in air service and connectivity in fact do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Stakeholders Perspectives on Contributions of Air Service to Economic Development The greater Atlanta region has an extensive array of community and business stakeholders that are involved with air service and economic development concerns. Some key partners of ATL are:

110 Public Institutions Private Organizations Public-Private Partnerships Hartsfield-Jackson Atlanta International Airport Airlines (most notably Delta Air Lines) Aerotropolis Atlanta Alliance Atlanta Regional Commission (10 counties + City of Atlanta) Metropolitan Atlanta Chamber of Commerce Atlanta Convention and Visitors Bureau GA Dept of Economic Development – The ARC is responsible for developing and updating the Atlanta Region’s Plan, including the Regional Transportation Plan. The ARC recognizes that ATL is the largest economic asset in the region and its continued success will require regional coordination of land use, transportation, and economic development. – Aerotropolis Atlanta Alliance is a public-private partnership working to improve the regional economic competitiveness of the area around the airport. – The Metro Atlanta Chamber represents businesses, colleges and universities, and nonprofits across the 29-county region that makes up the nation’s ninth largest market. – The Georgia Department of Economic Development is the state's sales and marketing arm and is the lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, as well as other initiatives. Stakeholders meet regularly with airport officials to discuss related economic development matters. Because the airport and air service support employment and economic activity in these sectors, support for the airport and air service further contributes to the region’s overall development goals. Communicating the Airport’s Economic Impact The airport itself does not highlight its economic impact. There is no link on the website to the most recent analysis. There is only a single sentence reference: “ATL is the economic jewel of Georgia, generating a $34.8 billion economic impact for metro Atlanta.” Several stakeholders noted the challenges of conveying economic concepts to the general public. The stakeholders have their own metrics used to gauge performance, and these do not generally tie to the airport. Some of the metrics used may use measures that are often applied to airport economic impacts – such as jobs supported and associated GDP. Some suggested using individual stories to personalize how an individual’s employment or business is tied to the airport or airlines. Greater Austin: Significant Growth in Economic Activity and Air Service Known for its arts and music and as the capital city of Texas, the Greater Austin area features a diverse highly professional economy. High-tech firms, particularly related to semiconductors and software, are important economic pillars. The region was the third faster growing areas of the country from 2010 to 2019. Operations and passenger traffic at Austin–Bergstrom International Airport (AUS or ABIA) have grown faster than the region’s population. In 2019, the airport set a new annual passenger record: 17.3 million people traveled through the airport—the 10th record-breaking year in a row. The Austin region is included as a case study because of its significant growth.

111 The Region and Its Economic Strengths The Greater Austin MSA had a 2019 population of 2.2 million, an increase of nearly 600,000 (36 percent) since 2008. The region is growing twice as fast as Texas as a whole. Area employment rose by almost 500,000 (46 percent). Private non-agricultural employment growth in the region averaged 2.92 percent annually – second only to the Miami area for fastest growth in the country. The U.S. national average was 0.96 percent. The region’s economy is anchored by several large employment sectors. As the capital of Texas, the region has a significant of local, state, and federal employees. This includes the large number of staff associated with education, especially the major public universities in the region. Other major sectors include PST; health care; construction; administrative and support; and IT. The U.S. Cluster Mapping Project highlights the region’s economic strength in IT, which includes software publishing, semiconductor manufacturing and machinery, and computer and peripherals manufacturing. In IT, the region’s LQ—a measure of employment concentration against a national average of 1.0—was 3.52. The area’s largest IT establishments are all located in the urban area, within a 60-minute drive of AUS. The Airport and Its Air Service From 2008 to 2019, the number of available seats rose by 4.3 million (70 percent), equivalent to an extra 12,000 seats per day. The number of flights rose by nearly 16,000 (30 percent), or almost 45 additional flights per day. Average aircraft size (seats per departure) rose from 115 to 150. And the number of enplaned passengers nearly doubled, rising from 4.5 million to 8.7 million. The number of nonstop markets served grew, as did the number of flights to major markets. In 2009, AUS had service (defined as 50 flights in a year or more) to 40 destinations. In 2019, it had service to 60. The airport also expanded its international service. AUS had service to Canadian and Mexican airports in 2008, but added new # (000s) % Population 1,634 2,227 593 36% Total Employment 1,072 1,566 494 46% Income per Capita - Constant 2019 $ $50.74 $61.98 $11.24 22% 2008 (000s) 2019 (000s) Change 2008-19

112 destinations, including Calgary and Guadalajara. AUS also gained nonstop service to London and Frankfurt. Connectivity “Connectivity” generally means the ability to reach a wide range of places in a short amount of time. Connectivity creates efficiencies that make firms more productive, which in turn attracts more businesses that have their choice of locations. Facilitated by new and growing service to major markets in the U.S. as well as to London and Frankfurt, connectivity from AUS has nearly doubled between 2008 and 2019, rising by an average of 6.3% per annum. The figure summarizes the growth in connectivity at AUS using a method developed by the IATA. Changes in Air Service and Economic Activity O&D traffic at AUS is highly correlated with total local employment. As total employment increases, total O&D increases. The correlation coefficient between the two is a near-perfect .987. However, correlation does not demonstrate causation. That is, it is not evident whether rising total employment levels leads to more air traffic, or whether more air traffic leads to more total employment. At the same time, readers should recall that much recent academic research shows that improvements in air service and connectivity in fact do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Foreign Direct Investment Market access is one of many factors that firms consider when making site selection decisions. The Greater Austin Chamber of Commerce (Chamber) reports that since AUS gained nonstop service to Europe, the amount of foreign investment in the region rose significantly. In the period 2010-2013, the region gained an average of two new foreign-based firms supporting 190 jobs annually. Since nonstop flights to London launched, the annual average rose to eight firms supporting 560 jobs. Stakeholders Perspectives on Contributions of Air Service to Economic Development Improved air service is a critical element of the Chamber’s efforts to enhance regional economic development. Its “Opportunity Austin” initiative targets key industries, including advanced manufacturing, digital media technology, life sciences, data management, space technology, and corporate headquarters –

113 all of which have notable reliance on air service. The initiative integrates economic development, considerations of sustainable and livable communities, and air service. ABIA coordinates with the Chamber through its Air Service Committee, which includes representatives from many major employers and works to improve the service, frequency, and competitive prices for nonstop service. It directly helped to bring transatlantic service to the region. The Chamber also recognizes the challenge of measuring and reporting the effects of its economic development efforts for different audiences. For internal purposes, because the board comprises senior business executives, technical measures of economic activity are provided. For public reports, the Chamber cites specific examples of successful efforts through press releases and posts basic measures on job growth, rising wages, economic diversity, and workforce matters. Communicating the Airport’s Economic Impact On its website, ABIA lists only the highlights of its latest economic impact assessment: – $7.6 billion in total economic impact and – Supported 74,000 jobs in the region. The website also noted that “[t]he tastes of Central Texas are growing at Austin-Bergstrom as well. In 2017, passengers enjoyed: – 61.5 tons of brisket (up 13% from 54.5 tons in first year recorded 2012) – 684,199 breakfast tacos (up 37% from 498,141 in first year recorded 2012) – 1,500 live music performances (up 86% from 805 in first year recorded 2012)” It also noted that the airport is not dependent on support from state or local taxes. “Austin-Bergstrom is entirely self-sustaining, generating revenue to cover airport operating costs and future improvements.” Columbia, Missouri: A Non-Hub Succeeding in the Shadow of Larger Facilities The Columbia-Jefferson City region is home to the major urban areas of central Missouri, with a total population of nearly 410,000 in 2019. The Columbia Regional Airport (COU) serves a catchment area with an estimated 730,000 O&D passengers. COU captures only about 25 percent of its market, losing most of its potential traffic to St. Louis Lambert International (STL) and Kansas City International (MCI), each located a two hours’ drive away. Nevertheless, passenger traffic at COU has increased more than tenfold since 2008, rising to over 256,000 in 2019. COU has succeeded in replacing historic service to MCI and STL with flights from American (to ORD and DFW) and United (ORD and DEN), resulting in substantial improvements in air connectivity for the region. Number Percent CAGR Population 384,892 409,544 24,652 6.4% 0.6% Total employment 256,154 274,131 17,977 7.0% 0.6% Per capita income $34,776 $45,329 $10,553 30.3% 2.4% Change 2008 2019

114 The Region and Its Economic Strengths The bulk of economic activity in the region is driven by post-secondary education. The region hosts more than a dozen colleges and universities, with the largest being the main campus of the University of Missouri. With the state capital in Jefferson City, the region also has a large government workforce. Regional employment is shifting toward professional services. Total employment rose at a compound annual growth rate (CAGR) of 0.6 percent between 2008 and 2019 but grew at a CAGR of 3.0 percent for the Finance and insurance and real estate sectors. Since 2015, the fastest growth has been in Transportation and warehousing (9.4 percent CAGR) and Finance and insurance (5.7 percent CAGR). The area’s economy features strength in several tradeable clusters, including – Insurance companies and related services. The region’s LQ for this sector was 4.98. – Financial services, including securities brokers, dealers, and exchanges; credit intermediation; and financial investment activities. The region ranks 33rd nationally in securities brokers, dealers, and exchanges. The region’s LQ for this sector was 3.64. – Education, including colleges, universities, professional schools, research organizations (e.g., biotechnology; physical, engineering, and life sciences), and professional organizations. The region’s LQ for this sector was 1.74. These are sectors that tend to have a high propensity to fly. That is, these industry sectors have a relatively high dependency on using commercial aviation as an input to their final product. The Airport and its Air Service Scheduled capacity at COU rose from roughly 1,000 annual flights serving two regional destinations (Kansas City and Memphis) in 2008 to nearly 3,300 nonstop flights to three major hubs (Chicago O’Hare, Dallas/Ft. Worth, and Denver) in 2019. Over the same period, average seat capacity per flight grew from 25 in 2008 to 59 in 2019, driven by a broader industry trend of up-gauging regional service. 2008 2019 DEN United - 350 DFW American - 1,210 MCI US Airways 456 - United - 1,050 American - 1,820 Total 456 4,430 ORD Weekly Seat CapacityDestination Airport Airline

115 Connectivity With the addition of service to American’s and United’s hubs, the ability of local passengers to reach large numbers of domestic and international destinations via one-stop flights expanded significantly. The growth in connectivity from 2008 to 2019 is almost unfathomable. This improvement in connectivity facilitates sustained economic growth and increases the appeal and competitiveness of the regional economy. Changes in Air Service and Economic Activity COU’s O&D traffic is highly correlated with total local employment. However, correlation does not establish causation. That is, it is not evident whether rising total employment levels leads to more air traffic or vice versa. At the same time, it is important to recall that much recent academic research shows that improvements in air service and connectivity in fact do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. The Airport, Its Economic Impact, and Regional Stakeholder COU is formally organized within the City of Columbia’s Economic Development Department. This reporting structure involves close collaboration with the city’s economic development operations which are housed within a non-profit, public-private partnership called Regional Economic Development Inc. (REDI). REDI staff are involved with air service development and airport initiatives, including coordinating stakeholder support and financing. COU’s air service development initiatives have focused on improved connectivity to destinations that are both key national hubs and have direct links to Columbia businesses. This supports REDI’s economic development strategy. Accessibility also attracts new and more diverse business into the region, particularly from industry sectors that are more reliant on air service which tend to support higher paying job opportunities. In this manner, air service facilitates not only economic growth but a high quality of growth that supports a higher standard of living and a more resilient economy. COU has not had an economic impact assessment since 2012. Because airport services have changed so much since then, those results are no longer applicable. The airport and its stakeholders believe that economic impact studies can provide useful insight but may not capture the full scale of the airport’s contribution to the regional economy. The proper narrative is critical in conveying the importance and role of air service to a community.

116 Des Moines, Iowa: Air Service and Economic Activity Related to Finance and Insurance Des Moines is the capital of Iowa and has a strong, diversified economy. The region is also a major center of the U.S. insurance industry and is known for its global financial services. It is included as a case study because of that consideration. The Region and Its Economic Strengths The region’s economy is anchored by several large employment sectors. As the state capital, the region has a significant public sector presence. This includes the large number of staff associated with education, especially because of the presence of Iowa State University in Ames. In addition to the region’s concentration with insurance and financial services, other key industries include advanced manufacturing, ag-bioscience, data centers, logistics and technology. The population and employment have grown moderately since 2008, but far faster than the Iowa statewide average. The region’s per capita income is also higher than the Iowa average. The Airport and its Air Services The Des Moines International Airport (DSM) is the largest airport in Iowa. DSM estimates that its catchment area encompasses a population base of 3.4 million annual passengers. DSM’s air service goals focus on underserved markets. The focus for larger carriers is up-gauging and increasing frequencies on existing routes. From 2008 to 2019, O&D traffic rose by 75 percent. The number of available seats rose by 452,862 (34 percent), equivalent to an extra 1,200 seats per day. In 2019, the airport reported setting a new annual passenger record: 2.9 million people traveled through the airport. Connectivity The growth in capacity – specifically to major national hubs – enabled continued improvement in air connectivity. Between 2008 and 2019, the Des Moines region’s connectivity grew by 36 percent (or an annual average rate of 2.8 percent). The trend in connectivity at DSM is highly correlated with overall growth in total seat capacity. DSM increased its air service to national hubs like Charlotte and Philadelphia, facilitating onward connections to a larger number of markets and regions. Chg % Population 761 878 117 15% Total Employment 533 604 71 13% Income per Capita ($) $40,919 $53,249 $12,330 30% Number of Establishments 20 27 7.3 36% Note: All data in 1,000s except per capita income, which is shown in nominal dollars. 2008 2019 2008-19

117 Changes in Air Service and Economic Activity DSM’s O&D traffic is highly correlated with employment. The figure summarizes the relationship between changes in total O&D traffic and employment in the FIRE sectors. As employment increases, total O&D increases. Correlation, however, does not establish causation; that is, it is not evident whether rising total employment levels leads to more air traffic or vice versa. At the same time, it is important to recall that much recent academic research shows that improvements in air service and connectivity in fact do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Communicating the Airport’s Economic Impact DSM has used economic impact studies to build support for the airport itself. It allows them to share the value and impact an airport brings. DSM works with stakeholders to help build their story and leverage relationships. The airport and regional stakeholders raised concerns when talking about how to persuade stakeholders about the airport’s value to the regional economy. One concerned the amount of time an economic impact study takes, and whether there might be a more efficient way to capture information and better understand it. Another involved the potential impact associated with a new route (e.g., service to a new hub). The airport believes that type of information and insight could be useful. A stronger story can be told when linkages and insights from the business community are uncovered. Stakeholders Perspectives on Contributions of Air Service The Greater Des Moines Partnership (the Partnership) represents the interests of the region’s business community and economic development. Its efforts to recruit companies and people to work and live in Des Moines relies in part on the range of nonstop flights available. There is substantial business travel within the finance and technology sector, and accessibility is of the utmost importance. With over 80 organizations in the insurance field, connectivity is important for business operations. DSM does not now offer nonstop international service, but it has connectivity options through major hubs such as Chicago (ORD), Atlanta (ATL), Dallas (DFW), Denver (DEN), Charlotte (CLT), and Philadelphia (PHL). The Partnership recognizes that growth in air service metrics (passengers, nonstop flights) gives them strong evidence of regional growth and personal travel. The Partnership would like to see further additions to the number of markets served. Regional economic goals are developed by engaging frequently with industry partners and other stakeholders. The Partnership works with chambers of commerce, counties, and cities to advance initiatives and develop goals that serve the community. It measures its progress with the region’s economic structure, health and vitality by capital investment, job creation, and new business growth. Showcasing DSM’s connectivity is a useful consideration in marketing companies to locate in the region.

118 Fresno, California: A Small Hub with Growing Air Service and Economic Activity Fresno is in the Central Valley of California, one of the world’s most important and productive agricultural areas. It is the closest city to Yosemite, Sequoia, and Kings Canyon national parks. The metropolitan area anchored by Fresno is the third largest in northern California, after the San Francisco Bay area and the Greater Sacramento region. Fresno Yosemite International Airport (FAT) is the only commercial service airport in the region. The region is a case study because is an FAA-defined small hub and has shown overall growth in air traffic over the period 2008- 2019. The Region and Its Economic Strengths The Fresno-Madera-Hanford CSA in California’s Central Valley is within the most productive agricultural region in the U.S. The region’s population and employment have grown moderately since 2008. # % Population (000s) 1,210 1,309 99 8% Total Employment (000s) 560 656 96 17% 2008 2019 Change 2008-19 While the area features approximately three times the national average of farm employees, total farm employment in the region declined during the 2008-2019 period. However, recent expansion of food processing, packaging, wholesaling, and agri-food manufacturing built upon the area’s core agricultural base with higher value added processes. The area has seen a strong growth in health care employment, as well as growth in hospitality-related employment and administrative and support services. Employment in transportation and warehousing industries has nearly doubled since 2008 as the region positioned itself as a growing logistics and manufacturing center. The Airport and Its Air Services Fresno Yosemite International Airport is the primary passenger and commercial service for California’s San Joaquin Valley. Due to its relative geographically isolation, FAT does not have any competing commercial service airports within its primary catchment area; there are no other commercial airports within a 3-to-4-hour drive. FAT saw their total (inbound and outbound) passenger numbers increase from 1.2 million passengers in 2008 to nearly 1.9 million in 2019, growing at an annual rate of 4.4 percent.

119 The number of flights generally declined between 2008 and 2015, in line with broad industry trends of up- gauging aircraft and consolidation but increased afterwards. Available seat capacity varied between 2008 and 2015, but then increased by 45 percent. Connectivity “Connectivity” generally means the ability to reach a wide range of places in a short amount of time. Connectivity creates efficiencies that make firms more productive, which in turn attracts more businesses that have their choice of locations. Changes in connectivity at FAT can have notable impacts on how quickly and conveniently Fresno and the Central Valley area can be reached and how local businesses can access outside markets. Connectivity at FAT in 2019 was 42 percent higher than in 2008. While the airport experienced a slight dip in connectivity after 2008 due to a decline in seat capacity, connectivity grew after 2015 when capacity was added to the major hubs at LAX, DFW, SFO, and DEN and service was added to ORD. Changes in Air Service and Economic Activity FAT’s O&D traffic is highly correlated with total regional employment. The figure summarizes the relationship between total O&D traffic and regional employment. The correlation coefficient is 0.915. However, correlation does not establish causation. That is, because two matters are correlated does not mean that increases in one causes or leads to increases in the other, or vice versa. At the same time, it is important to recall that much recent academic research shows that improvements in air service and connectivity in fact do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Stakeholders Perspectives on Contributions of Air Service The interests of the business community and economic development authority in the region are represented by the Fresno County Economic Development Corporation (EDC) and the Fresno Chamber of

120 Commerce. The Fresno EDC is responsible for bringing in new business to the county and works closely with the airport to discuss air service goals (e.g., new markets that would enhance connectivity). The Fresno Chamber works to promote and support the success of the regional business community through effective advocacy, education and relationship building. Community stakeholders recognize that regional economic goals are tied to transportation and aviation. They work together to promote solutions to the region’s transportation needs. In April 2021, the community succeeded in convincing Southwest to enter the market, an effort that took 10-15 years. Communicating the Airport’s Economic Impact According to a 2018 economic impact study, FAT generated an overall economic output of $426 million. The airport uses its economic impact study in its marketing material, messaging to stakeholders, elected officials at federal, state, county and local levels, and in discussions our federal partners such as Transportation Security Administration, CBP, FAA. and the Department of Defense. Green Bay, Wisconsin: Competing Against Other Nearby Airports Green Bay–Austin Straubel International Airport (GRB) serves northeastern Wisconsin. The City of Green Bay, on the western side of Lake Michigan, is the population and employment center of the metropolitan region, known for being home to its famous National Football League team and historic manufacturing base. The region is an example of one within a fragmented market where the population and total regional employment has remained relatively stable over time. The Region and Its Economic Strengths The Green Bay–Shawano CSA is in the eastern part of Wisconsin, approximately 130 miles north of Milwaukee. From 2008-2019, population in the region grew by 5.7 percent, faster than that of either the State of Wisconsin (3.3 percent) or the Great Lakes states (1.4 percent). Similarly, employment growth in the region exceeded that of the State. # % Population (000s) 348.6 368.4 19.8 6% Total Employment (000s) 229.9 244.7 14.8 6% 2008 2019 Change 2008-19 The region’s economy is anchored by its manufacturing sector, which employed over 30,000 in 2019 (almost 15 percent of total nonfarm employment). Of the region’s 30 largest employers, 12 are manufacturers. Besides paper and packaging industries, other sectors with substantial employment included health care, finance and insurance, construction, and transportation.

121 The figure shows the location of the airport in the region, the geographic area within a one-hour drive of the airport, and the locations of the largest manufacturing businesses within that drive time. The Airport and Its Air Service GRB shares the Northeast Wisconsin air travel market with several other airports. These include Appleton International Airport, 33 miles to the south, and Milwaukee Mitchell International Airport, 127 miles away. A 2019 study estimated that the air service catchment area generated 1.2 million O&D passengers, but that GRB captured only 16 percent of that traffic. Chicago O’Hare International Airport, 194 miles away, captured almost 40 percent of the traffic. In 2019 GRB posted a total of just under 700,000 total O&D passengers. The combination of relatively modest market size growth, airline industry consolidation, and the proximity of alternative airports has resulted in an overall decline in capacity offered at GRB since 2008. In 2019, total departure capacity at GRB was 33 percent lower than in 2008. Connectivity Connectivity at GRB in 2019 was 12 percent lower than 2008 levels – not as low as the decline in seat capacity (-33 percent), because GRB retained service to several key national hubs including ATL, ORD, MSP, and DTW. All else being equal, each additional seat to those airports yields a higher level of connectivity than seats to smaller airports with fewer onward destinations. This is why connectivity grew between 2012-14 by 24 percent even though total seat capacity remained about the same. Between 2012 and 2014, GRB lost capacity to MSP and DTW and all service to Cleveland, but gained service to ATL, among the most connected in the world. That boosted GRB’s connectivity. In more recent years, expanded capacity to ORD as well as the reintroduction of service to DEN improved GRB’s connectivity. Overall, from the worst of the post-Great Recession downturn in 2012, GRB’s connectivity rebounded 22 points. Source: ESRI Business Analyst

122 Changes in Air Service and Economic Activity GRB’s O&D traffic does not appear to be correlated with total local employment. Changes in one variable do not appear to be associated with changes in the other. That is, the total amount of O&D traffic at the airport does not appear to be related to total employment in the region or vice versa. A similar absence of relationship exists between total O&D traffic at GRB and the region’s overall population levels. Changes in the population base have not translated into changes in traffic at the airport. Air Service Goals Tied to Business Activity The Greater Green Bay Chamber of Commerce has an arm devoted to economic development. The Chamber’s strategic plan has 11 initiatives that are geared towards supporting economic development for the area, with one focused on enhancing transportation access and connectivity. Given the region’s economic strength in manufacturing and the need to connect products to markets, the Chamber recognizes the criticality of transportation access and connectivity. From the perspective of foreign direct investment, Canada and Italy are the top two countries with investment in the area. Firms that have located to the area cut across several different industries, including manufacturing, paper products, food processing, and ship building. These companies view the area as a prime location in which to build supply chain redundancy for their operations. Communicating the Airport’s Economic Impact The Wisconsin Department of Transportation performed an economic impact study of the commercial service airports in the State in 2017. GRB was estimated to generate $242.9 million in economic output in Brown County. The study estimated that the airport generated 1,633 jobs, with $68.8 million in labor income in Brown County. However, the true economic impact of commercial aviation extends beyond the airport boundaries, as aviation is a critical element of the economic activity of multiple industry sectors. The airport’s website does not include a link to that study or the GRB results. Greensboro Piedmont Triad International Airport: Expanding Traffic in the Shadow of Larger Airports The Piedmont Triad Region (the Region or the Triad) in north central North Carolina encompasses twelve counties and is anchored by three cities: Greensboro, Winston–Salem, and High Point. That area’s CSA is the 33rd largest in the country. Greensboro is the largest of the three cities. Home to approximately 1.7 million, the Region is served by Piedmont Triad International Airport (GSO or the airport). To the southwest is the larger Greater Charlotte area, home of nearly 2.8 million and the location of one of American Airlines’ hubs at Charlotte Douglas International Airport (CLT). To the east is the Raleigh– Durham area with a population of about 2.1 million and home of the state’s capital and the Research Triangle Park, served by Raleigh–Durham International Airport (RDU). Based on passenger traffic, GSO is the third largest airport in North Carolina after CLT and RDU. The Region and Its Economic Strengths Since the mid-1900s, the Region’s economy has evolved from one centered largely on tobacco, textiles, and furniture to one featuring a blend of trade, manufacturing and service businesses as well as its

123 universities and colleges. Local industry is characterized by the production of machinery, electronics equipment, textiles, apparel and tobacco, and financial services. The region has significant strength in economic activity relating to transportation. The Piedmont Triad is home to nearly 200 aerospace companies. # % Population (000s) 1,565 1,689 124 8% Total Employment (000s) 923 982 59 6% 2008 2019 Change 2008-19 The Airport, Its Air Services, and the Shadows Cast by CLT and RDU GSO generally defines its catchment area to include 12 counties in north central North Carolina. It faces significant challenges in attracting and retaining passengers due to the region’s proximity to CLT and RDU. The major drivers of consumers’ air service decisions are price and service levels (e.g., flight frequency or timing, aircraft size, airline of preference). Consumers in the Triad take advantage of flight opportunities not only at GSO but at the other two major airports. Passenger traffic at GSO is primarily O&D in nature. Since the drop in 2009, O&D traffic has generally recovered, rising from 1.4 million to 2.1 million (52 percent). The airport experienced a slow return of airline capacity to 2008 levels in the last 11 years. In 2019, the Airport nearly regained all the capacity that it had provided in 2008. Available capacity changed little between 2010 and 2017. Since then, capacity increased 24 percent. GSO is the largest cargo airport in North Carolina based on landed weight. In 2019, total landed cargo and freight weight at GSO exceeded that at CLT by almost 20 percent and at RDU by nearly 70 percent. Connectivity Changing economic conditions along with airline mergers had a profound impact on consumer choice and connectivity at GSO, with reduced service suppressing connectivity below pre-Recession levels. However, the recovery in connectivity at GSO has been slightly faster than that of overall seat capacity and passenger traffic. Connectivity returned to 2008 levels in 2018 and then continued to grow, driven by expanded capacity to Atlanta (ATL), Chicago O’Hare (ORD), and Dallas/Ft. Worth (DFW). As of 2019, GSO’s connectivity was 14 percent higher than 2008 levels.

124 Changes in Air Service and Economic Activity In the Triad, passenger traffic is relatively highly correlated with total regional employment. As total regional employment increased, total O&D traffic at GSO also increased. However, correlation does not establish causation. It is not evident that changes in employment necessarily lead to or cause changes in O&D activity. The opposite could equally be true: Changes in O&D traffic could bring about changes in regional employment. The relationship between the two concepts is positive, and the strength of the statistical correlation (R2 = 0.747) is relatively strong. The correlation strengthens to 0.808 if one excludes the results from 2008, when total traffic levels were affected by the presence of SkyBus, which ceased operations later that year. At the same time, it is important to recall that much recent academic research shows that improvements in air service and connectivity do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Air Service Development and Regional Stakeholders The primary objective of the Piedmont Triad Partnership (PTP) is to promote prosperity, growth, and economic development in the region. The PTP partners with the airport to support regional economic development initiatives. The PTP’s sectors of interest include biomedical and life sciences, technology, transportation and logistics, and automotive manufacturers, all of which rely on air service offerings in the region for their travel needs. Additionally, the region supports an economic development strategy centered on aviation and aerospace. GSO invested in the regional economy with the GSO Aerospace “Mega site.” Communicating the Airport’s Economic Impact The State of North Carolina conducted a statewide study of the economic contribution of North Carolina’s airports. The report covered airport operations and estimated the following for GSO: – 30,015 jobs – $1.6 billion in personal income – $8.6 billion in economic output The airport uses the information from these studies in its communications with regional stakeholders, local, state and federal government officials, and with businesses it seeks to attract. GSO and other airports used the information to persuade the State of North Carolina to revise the formula its uses to distribute aviation grants. The airports argued that the economic impact-based formula better represents the total value of the airport to the State. Greater Miami: International Air Service for Regional Development Miami International Airport (MIA) is the largest airport in Florida and a hub for American Airlines. Owned by the Miami-Dade County government and operated by the Miami-Dade Aviation Department, MIA offers more flights to Latin America and the Caribbean than any other U.S. airport. It is the country’s

125 third-busiest airport for international passengers and is the top U.S. airport for international freight. The Miami region is included as a case study because of its international operations and the related regional economic activity. The Region and Its Economic Strengths The Metro Miami region is the seventh-largest metropolitan area in the U.S. The region has undergone significant growth since 2008. Employment growth in the region is especially noteworthy. Total employment increased by more than 1 million (29 percent). According to the U.S. cluster mapping project, for the period 1998 – 2018, private non-agricultural employment growth in the region averaged 4.14 percent annually – the fastest growth in the country. The U.S. national average was 0.96 percent. Chg % Population 6,081 6,890 809 13% Total Employment 3,549 4,585 1,037 29% 2008 2019 2008-19 Like many large urban areas, the region’s economy is diversified. In 2019, the largest employment sectors were health care, retail and accommodations and food services. However, during 2008-2019, several sectors grew at rates far above the regional average. These sectors – and the changes in employment summarized in the table below -- tend to be reliant on air service. Sector All nonfarm private employment Real estate, rental and leasing Professional, scientific, & technical Finance and insurance Management of companies 2008 3,155,831 216,212 254,381 208,501 31,903 2019 4,204,757 363,507 351,803 295,157 57,315 Change 1,048,926 147,295 97,422 86,656 25,412 % 33% 68% 38% 42% 80% Foreign Direct Investment The Miami-Dade area is home to approximately 1,300 multinational companies, of which over 500 firms are headquartered outside of the U.S. These companies cover over 50 nations in North America, South America, Caribbean, Asia, Europe and the Middle East. BEA data show that for Florida as a whole, employment in multinational enterprises rose 40 percent from 2008 through 2018 (the latest available data), with the fastest growth in the PST and real estate sectors. The Airport and Its Air Service From 2008-2019, total passenger traffic increased by over 10 million (31 percent), rising from 32.5 million to 42.7 million. Much of that increase can be attributed to local rather than connecting traffic. Of MIA’s total traffic, the percentage represented by O&D traffic rose from 59 percent to 67 percent. In

126 addition, the balance of traffic shifted toward being international. In 2010, the ratio of MIA’s domestic to international enplanements was 53:47. By 2019, it had become 51:49. In 2019, MIA ranked 3rd among U.S. airports for international passengers, behind New York JFK and Los Angeles International. The airport has exceptional strengths with cargo and freight operations. During 2018, MIA handled 79 percent of all air imports and 77 percent of all air exports between the U.S. and the Latin American/Caribbean region. Among U.S. airports for 2019, it ranked first in international freight and third in total cargo (freight and mail). Connectivity MIA is the nation’s international gateway to the Southern Hemisphere. MIA offers more flights to Latin America and the Caribbean than anywhere else in the U.S. MIA has experienced steady incremental growth in air connectivity in most years over the past decade. Between 2008 and 2019, connectivity at MIA (domestic and international) grew at an average rate of 2.6 percent per annum. Changes in Air Service and Economic Activity Continued growth and improvement in connectivity also facilitates economic growth. MIA’s O&D traffic is highly correlated with total local employment. The correlation coefficient between the two is 0.98. However, correlation does not establish causation. That is, it is not evident whether rising total employment levels leads to more air traffic, or whether more air traffic leads to more total employment. The correlation between air service and employment remains exceptionally high when employment is restricted to those sectors that are more “aviation-reliant,” such as IT; finance and insurance; real estate; PST; and Management of Companies. These are among the sectors showing the greatest growth from 2008-2019. It is important to recall that much recent academic research shows that improvements in air service and connectivity do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation.

127 Stakeholders Perspectives on Contributions of Air Service to Economic Development MIA has strong relationships with at least two of the major regional economic stakeholders in the region, the Greater Miami Chamber of Commerce and the Beacon Council, a public-private partnership that is the official economic development organization for Miami-Dade County. The Chamber has a seat on all of the MIA’s working committees to ensure that the voice of the business community is heard and present. The Beacon Council focuses on seven target industries that are highly reliant on air service, including banking and finance, technology, life sciences, and trade and logistics. The Raleigh–Durham Area and PST Employment The Raleigh–Durham region in North Carolina is associated with the Research Triangle and a concentration of employment in science and technology. Because of the presence of three major research universities, education, innovation, and a culture of collaboration are key drivers of the area’s development. Raleigh–Durham International Airport (RDU) is the second largest airport in terms of passenger traffic in North Carolina behind Charlotte Douglas International Airport. The RDU catchment area reaches roughly 4 million people. The region is included as a case study to illustrate the relation between growth in air service and increases in PST-related economic activity. The Region and its Economic Strengths The region’s population and employment has grown significantly since 2008 and nearly twice as fast as North Carolina as a whole. The region’s per capita income is almost 20 percent higher than the statewide average. # (000s) % Population 1,670 2,080 409 25% Total Employment 1,083 1,380 297 27% 2008 (000s) 2019 (000s) Change The region’s economy is anchored by several large employment sectors, including a significant public sector presence with local, state, and federal employees. In the private sector, the large sectors (based on total employment in 2019) are PST; health care, and IT. The PST sector includes services like architecture, engineering, and scientific research (e.g., life sciences, nanotechnology, and biotechnology.)

128 Changes in Air Service Passenger activity at RDU has grown significantly since 2008 and reached an all-time high in 2019. Since Delta classified it as a “focus city,” RDU has become one of the carrier’s largest non-hub operations. The number of nonstop destinations grew from 50 in 2008 to 57 in 2019, including two European destinations—London’s Heathrow Airport (LHR) and Paris’ Charles De Gaulle Airport. RDU’s 2019 international service included Toronto Pearson and Montreal Trudeau along with Cancun and multiple Caribbean locations. Total seat capacity has grown since 2012. Connectivity The growth in new destinations as well as increased capacity to major markets have manifested into a robust, continuous improvement in air connectivity provided by RDU to the regional economy over the past several years. Since 2015, connectivity grew by 36 percent (or an average rate of +8 percent per annum). This was driven in large part by expanded connectivity to western hubs like Denver, Los Angeles, San Francisco, and Seattle, as well as the introduction of service to Paris in 2016. Changes in Air Service and Economic Activity Total airport O&D traffic is highlight correlated with PST employment in the region. As PST employment rises, so does the volume of O&D activity. Similarly high correlations occur with other aviation-reliant industries. However, correlation does not equate to causation. It is important to recall that much recent academic research shows that improvements in air service and connectivity do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation, such as PST. Regional Stakeholders and Air Service Interests RDU has not typically involved the community in creating its air service development goals. The airport chooses instead to inform the community of its goals based on a strategy developed internally. RDU is striving to create a model in which they identify the needs of the community prior to developing our air service development strategy. The Economic Development Partnership of North Carolina (EDPNC) cites the vibrant regional economy and robust air service offering as a key attribute for retaining local talent and attracting investment in the region.

129 RDU’s communications team and CEO coordinate all external outreach to community stakeholders. They believe in forging relationships with local partners and aim to capture the community sentiment in terms of air service needs. In addition to the EDPNC, RDU works with other local organizations such as the Research Triangle Regional Partnership, area chambers of commerce, the local convention and visitor bureaus, and Raleigh Economic Development & Innovation to connect with corporate organizations. Many market pushes have come from the community, where the community communicates that business ties exist and there is a need for service. Communicating the Airport’s Economic Impact The State of North Carolina published an economic impact assessment in January 2021 and found that RDU accounted for $15.15 billion in total economic output in RDU, $518.3M of state and local taxes, $3.5B in personal income, and 99,335 jobs. The airport suggests that analyses on the possible economic impact that new air service (e.g., the economic impact of a new nonstop international flight, including the generation of tax revenues to local and state governments) may have more credibility, and be more influential, if completed or sponsored by organizations separate from the airport. Analyses like those could be useful to help convince businesses and other organizations to invest in efforts to attract new air service. Reno–Tahoe: Rebounding from the Great Recession Reno–Tahoe International Airport (RNO or the Airport) is the principal commercial airport in northwestern Nevada, serving a total catchment area of 1.5 million people. From 2008 through 2014, total passenger traffic at RNO dropped by 1.2 million (25.5 percent). However, traffic nearly completely recovered between 2015 and 2019, rising by 1.1 million. The rebound in commercial air service has accompanied a similar rebound in the regional economy which sought a return of its traditional tourism- driven sectors while diversifying into new and emerging industries. The Reno–Tahoe region is as a case study based on the recovery of its economy and air services following the 2007-09 Great Recession. The Region and Its Economic Strengths The Reno–Tahoe–Fernley Combined Statistical Area (“Reno–Tahoe region” or the CSA) encompasses the northwestern corner of the state of Nevada including the state capital of Carson City as well as the state’s second most populous city, Reno. The CSA had a 2019 population of 638,000. The region experienced a significant loss of employment associated with the Great Recession. From 2008 through 2015, total employment in the area dropped by 6,700 jobs even though population grew by approximately 27,000 persons. Since then, as the national economy and regional economies recovered, the CSA added more than 50,000 new jobs, growing to well above pre-recession levels. # % # % Population (000s) 574 600 638 26 5% 38 6% Total Employment (000s) 369 362 414 (7) -2% 52 14% Change 2015-19 2008 20192015 Change 2008-15 Traditionally, the area’s employment base has been grounded in government service and tourism-related sectors. Public service, which includes public education (e.g., The University of Nevada, Reno) as well as government activity associated with the state capital and multiple major municipalities, accounts for the largest employment category in the region. Additionally, the area’s gaming industry and proximity to Lake Tahoe and resorts in the Sierra Nevada have long made it a major tourism destination.

130 Since the Great Recession, the region has seen a major recovery in economic activity due in large part to emerging business activity in advanced manufacturing, high-tech and bio-tech, and logistics. New infrastructure such as the Tahoe-Reno Industrial Center has supported the arrival of large employers in distribution/warehousing, data centers, and manufacturing – sectors which drove net new job growth and increasing average incomes between 2015 and 2019. The Airport and Its Air Services RNO is Nevada’s second largest commercial airport by passenger traffic, serving more than 4.3 million passengers in 2019. The past decade of passenger traffic at the Airport is marked by two distinct periods. The first, between 2008 and 2014, marked the continuation of a decade-long decline in traffic. Second, from 2015 to 2019, RNO experienced a period of strong growth, rising from 3.2 million passengers to more than 4.3 million passengers (a CAGR of 6.0). This rebound came as the region experienced a resurgence in economic activity, as well as a reintroduction of seat capacity by multiple airlines. Southwest is the primary passenger carrier at RNO, though several other airlines offer a diversity of low-cost, ultra-low cost, and mainline services. Connectivity “Connectivity” generally means the ability to reach a wide range of places in a short amount of time. Changes in connectivity can have notable impacts on how easily northwestern Nevada can be reached, or how local residents and businesses can access outside markets. By 2019, although seat capacity remained 13 percent lower than 2008 levels, RNO’s connectivity nearly returned to prior levels. RNO retained and in some cases grew capacity to major hubs such as LAX, DEN, SFO, SEA, PHX, and DFW. RNO became better linked into hubs, thereby improving its connectivity.

131 Changes in Air Service and Economic Activity RNO’s O&D traffic is positively correlated with total regional employment. As total regional employment increases generally so too does O&D traffic. However, correlation does not establish causation. That is, it is not evident whether rising total employment levels leads to more air traffic, or whether more air traffic leads to more total employment. Yet O&D growth at RNO is more highly correlated to regional employment than its regional population, suggesting that employment (and economic activity) are more closely related to aviation traffic growth than population growth alone. This is consistent with the recent academic research showing that improvements in air service and connectivity lead to increases in employment and economic activity. Stakeholder Perspectives on Contributions of Air Service to Economic Development The airport authority’s strategic priorities involve a commitment to working with regional stakeholders, including partnering with local economic development and business associations to understand market demand. Air service development (ASD) at RNO is also supported through the Regional Air Service Corporation (RASC), a consortium of public and private entities that collects community input on ASD initiatives including much of the private financing for ASD marketing. Representation at RASC has diversified over time to include businesses beyond the region’s traditional gaming sector. Community stakeholders acknowledge that air service supports all the region’s economic development goals in some way, though most notably as a direct driver for community development. The provision of balanced air service options (from ultra low cost carriers to large network carriers) and connectivity to nearly anywhere within the U.S. in 1-stop or less attracts not only “big business” into the region but also supports small businesses and the community at large. Greater San Diego: More Than Just a Tourist Destination In Southern California, San Diego is a renowned major tourist destination attracting close to 35.2 million tourists annually. With a population of over 3.3 million, it is the second largest county in California and the fifth largest county in the U.S. San Diego International Airport (SAN) offers close to 500 flights daily, with over 60 nonstop destinations across the U.S. and in Asia, Europe, Mexico, and Canada. This region is included as a case study because it is a large hub competing in an area served by multiple large airports. The Region and Its Economic Strengths San Diego County has grown moderately in both its population and employment since 2008. Total population rose by 316,000 (10 percent). This is slightly faster than the growth for California as a whole, which increased by 8 percent. Total employment increased by over 320,000 (17 percent), slightly below the rate for California (which rose by 19 percent).

132 # % Population 3,022 3,338 316 10% Total Employment 1,883 2,204 322 17% 2008 2019 Change Comprising 13 percent of San Diego’s economy, economic activity in industries related to tourism supports 199,800 employees. But San Diego is more than tourism. Home to the largest military concentration in the world, Defense-related activities makes up 9.1 percent of the regional economy, with over 60 percent of vessels of the U.S. Pacific Fleet stationed in San Diego. The local economy’s other largest industries are finance; real estate; insurance; PST services; and information. A leading high-tech hub in the U.S., the region’s innovation cluster (including information and communications, aerospace and navigation, as well as biotechnology and pharmaceuticals) accounts for 9.7 percent of the regional economy. These PST services employed 233,000, which is an increase of 21 percent over the past 11 years. The U.S. Cluster Mapping Project highlights the region’s economic advantages. The area is ranked 8th nationally in its economic strength in hospitality and tourism (including accommodations and amusement parks). The region also exerts strengths in aerospace and defense, biopharmaceuticals, IT and analytical instruments, marketing, and education. Not surprisingly considering the concentration of naval activity, the area is ranked in the top ten nationally in water transportation (e.g., boat building and repair). Air Service and Connectivity The airport handled a record of over 25 million passengers in 2019. Following recovery from the global economic downturn in 2008, passenger traffic grew at a compound average growth rate of 6 percent over the last five years. The total number of nonstop markets served grew from 50 to 60 and includes flights to Mexico, Canada, Asia, and Europe. Available seat capacity rose by 27 percent.

133 Connectivity at SAN in 2019 was 25 percent higher than 2008 levels, with continued growth in nonstop passenger services to key destinations. International markets accounted for much of the increase. Flights to Toronto began in 2009, London (Heathrow) in 2011, Tokyo in 2012, and Frankfurt in 2017. With Los Angeles International Airport about a 2.5- hour drive away, SAN leaks passenger traffic to LAX, especially for international services. SAN also competes for traffic with John Wayne Airport in Orange County, Ontario International Airport in San Bernardino County, and Tijuana International Airport. Changes in Air Service and Economic Activity As the regional economy develops through increases in employment, total passenger traffic also increases. The correlation coefficient between O&D traffic at the airport and employment in aviation- reliant industries is 0.97, indicating a strong positive relationship. Yet correlation does not establish causation. Yet it is important to recall that much recent academic research shows that improvements in air service and connectivity do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Connections with Regional Economic Stakeholders SAN has used its economic impact studies in their ASD initiatives, especially in pursuing international air services. SAN also used the studies when undertaking new capital infrastructure projects. Although the not necessary to justify these new services or projects, the study quantified the value of SAN in economic terms. The studies have been well received by stakeholders, with many organizations citing the results in their own newsletters. Charles M. Schulz Sonoma County Airport: A Non-Hub with Expanding Services in the Shadow of Large Competitors The Charles M. Schulz Sonoma County Airport (STS or “airport”) is located near the City of Santa Rosa, the largest city in Sonoma County. The Santa Rosa–Petaluma MSA is part of the larger San Jose–San Francisco–Oakland CSA. In the broader North Bay Region (“region”) that comprises several counties north of San Francisco, STS is the only airport that offers scheduled commercial air service. The Airport defines its catchment area to be broader than the Santa Rosa–Petaluma MSA, including an estimated 2018 population of 1.2 million. STS faces a significant competitive challenge from other nearby commercial airports with significantly more air service options. STS is within a relatively short distance from San Francisco International Airport (SFO), Oakland International Airport (OAK), San Jose International Airport (SJC), and Sacramento International Airport (SMF). The airport is included as a case study because of those dynamics.

134 Airport Distance (miles) Drive time (hrs.) Avg. daily flights 2019 Markets served 2019 Sonoma County (STS) -- -- 12 9 Oakland International Airport (OAK) 74 1.25 148 42 San Francisco International Airport (SFO) 74 1.5 520 101 Sacramento International Airport (SMF) 105 2 158 35 San Jose International (SJC) 119 2 195 41 The Region and Its Economic Strengths The Region’s economy revolves around high technology industries and agriculture, particularly the world-famous wine industry and tourism. The area’s economy features multiple tradeable clusters that are among the top performers in the country. They include those associated with the region’s agricultural and wine industry (food processing), along with agriculture, medical devices (e.g., optical instruments and surgical and dental instruments), and financial services. The Airport and Its Air Service Somewhat uniquely at STS, capacity was constrained by the length of its main runway. When Alaska Airlines initiated service at STS in 2007, it could do so because the airport’s main runway could accommodate the airline’s 76-seat turboprop Q400s. Alaska started service with flights to Los Angeles International and Seattle Tacoma International. It expanded to Portland and Las Vegas. After the airport extended its main runway in 2014, total capacity offered at the airport rose significantly as airlines added jet service. Alaska added daily flights to Orange County John Wayne Airport in 2016. From 2017 to 2019, American added service to Phoenix Sky Harbor International Airport, Dallas/Ft. Worth International, and Los Angeles and United entered service at STS with operations to San Francisco International (SFO) then added service to Denver International. Between 2014 and 2019, the number of flights and seats basically doubled. In July 2019, airlines serving STS offered nonstop schedule service to 10 destinations with an average of 825 daily seats. Alaska provided 63 percent of the available seat capacity.

135 Connectivity After the 2014 runway extension enabled the introduction or expansion of nonstop service to well-connected hubs like Los Angeles, San Francisco, Phoenix, Denver, and Dallas/Ft. Worth, connectivity at STS increased substantially. Service to these hubs facilitated onward connections to a larger number of markets and regions, thereby helping to more than double the air connectivity from STS between 2014 and 2019. The single largest year of growth in connectivity at STS occurred in 2017, when connectivity jumped by 37 percent due largely to the introduction of daily service to SFO and PHX. Changes in Air Service and Economic Activity Passenger traffic is highly correlated with total regional employment. As total regional employment increased, total O&D traffic at STS also increased. However, correlation does not establish causation. It is not unambiguous whether changes in employment lead to changes in O&D activity or vice versa: changes in O&D traffic could also lead to changes in regional employment. (The figure shows data for only those years where the runway was lengthened, allowing jet service.) A similar correlation exists if employment is restricted to those sectors that have a greater reliance or dependency on air service, such as financial and insurance services; PST services; real estate; and management of companies. It is important to recall that much recent academic research shows that improvements in air service and connectivity do lead to increases in employment and economic activity, especially in industry sectors that are reliant on air transportation. Communicating the Airport’s Economic Impact Airport management works closely with all its partners including the local chambers of commerce, Sonoma County Tourism and Visit Santa Rosa. These partners have provided financial, marketing and data support for the Airport’s ASD initiatives. The Airport believes that for most stakeholders, a high-level economic impact works best. However, to convince the business community to support ASD efforts (especially those aimed at expanding connectivity), economic analyses that demonstrate how new connecting service would benefit the community economically and environmentally would be valuable. The analyses need to be a robust and easily-communicated story line.

136 Air Cargo and Freight Airports Allentown–Lehigh Valley Airport’s Cargo Operations and Contributions to Regional Economic Development The Allentown-Bethlehem-Easton MSA is in Eastern Pennsylvania approximately 60 miles north of Philadelphia and 100 miles west of New York City. This area is also known as the Lehigh Valley. In part because of its location close to major population centers on the east coast, the Lehigh Valley International Airport (ABE or the Airport) has become a major facility for handling air cargo. In 2015, Amazon selected ABE as one of the few airports to be served by the company’s new air freight division, Amazon Air. The region was selected as a case study because of its air cargo and freight operations. The Region and Its Economic Strengths The region is vibrant economically, with population and employment increasing much faster than in Pennsylvania as a whole. The region’s largest sector was health care and social assistance, with over 72,000 employed in 2019. Other major sectors (with over 40,000 employed) are Manufacturing, Retail, and government. However, the sector where employment changed most significantly was Transportation and warehousing. Employment more than doubled to nearly 40,000 and has recorded year- over-year employment growth of 9.4 percent for the past five years. The U.S. Cluster Mapping Project reports that the region is in the top 5 percent nationally in Distribution and Electronic Commerce. A map of the area that identifies establishments in the Transportation and warehousing sector within a 60-minute drive of ABE highlights the pivotal role that the airport’s cargo and freight operations. Manufacturing establishments within that 60-minute drive employ over 100,000. The Airport and Its Services Air cargo has been a point of emphasis at ABE since September 2015 when Amazon began charter freighter flights. The operation is now known as Amazon Air and ABE was one of the first three airports in

137 the developing network. Prior to that, FedEx carried almost 100 percent of the cargo at the airport. By the end of 2017, ABE air cargo exceeded 100,000 metric tons – more than five times the pre-Amazon Air levels. The growth in e-commerce and higher consumer demand has led to increased tonnage levels. Amazon Air has allocated more aircraft operation to ABE. Meanwhile, in 2018, FedEx Ground opened an 850,000 square-foot distribution hub in the Lehigh Valley just 2 miles from ABE. FedEx has signaled a higher degree of integration between its ground and air operations, so the potential exists for a linkage to connect to ABE’s FedEx air cargo services. Air Cargo Linkages to Regional Economic Development Press reports indicate that the operations of Amazon Air at ABE have been transformative to the airport and the region. The three Amazon fulfillment centers totaling over 2 million square feet and the Amazon Air operation support employment of approximately 3,000 Amazon employees in the Lehigh Valley. As e- commerce sustains growth, there is potential for further economic development related to ABE’s air cargo services. ABE recently signed an agreement with an airport real estate development firm to assist with on- airport cargo development and the recruitment of companies and tenants to use those capabilities. The Airport works closely with the Lehigh Valley Economic Development Corporation (LVEDC), one of the principal regional organizations concerned with economic growth and activity in the area. The LVEDC recognizes that the airport plays a pivotal role and impact on regional economic development, and transportation resources are an important resource for site selectors and businesses considering where to locate a building or expand an existing one. The LVEDC notes that airports like ABE are important for foreign direct investment because international companies looking for places to invest in the U.S. need quick access to their facilities via airports. Although the LVEDC is more involved in passenger ASD, there is recognition of the economic development potential related to air cargo services. The Greater Lehigh Valley Chamber of Commerce also recognizes the contribution that the airport makes to the region and supports its development as part of a larger effort to improve the transportation infrastructure necessary for continued economic success. 0 20,000 40,000 60,000 80,000 100,000 120,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ai r C ar go - M et ric T on s

138 Huntsville’s Cargo and Freight Operations Support Regional Economic Development The Huntsville metropolitan area in North Alabama is located approximately 200 miles west of Atlanta and 120 miles south of Nashville. The region is served by Huntsville International Airport (HSV). This region is included as a case study because of its cargo and freight activities. The Region and Its Economic Strengths The region has undergone significant growth in population and employment since 2008, with growth of both outpacing that in Alabama as a whole. Both population and employment in the area rose by 13 percent since 2008, while Alabama’s population rose by 4 percent and employment by 6 percent. # % Population (000s) 554 624 70 13% Total Employment (000s) 344 388 45 13% 2008 2019 Change 2008-19 The region is a center of aerospace-related activities. Huntsville is the home of NASA’s Marshall Space Flight Center, and the U.S. Army Aviation and Missile Command is headquartered at Redstone Arsenal. Large private companies in the area include Boeing, Dynetics and Northrup Grumman. The U.S. Cluster Mapping Project notes that the area’s economy features multiple tradeable clusters that are among the top performers in the country, including IT and analytical instruments; communications equipment and services; and marketing, design, and publishing. Considering the NASA and military facilities in the region, it is not surprising that the public sector has a large share of total employment. In the private sector, the largest industry sector was PST followed by manufacturing. Since 2015, PST employment grew by almost 8,700 (21 percent) and employment in manufacturing grew by 4,000 (10 percent). The Airport and Its Services HSV is a small hub airport that handled a record 725,000 enplaned passengers in 2019. More importantly for this case project, HSV’s air cargo tonnage in 2019 totaled 88,769 metric tons, of which 81,740 metric tons (92 percent) is carried on international flights. The airport authority also operates the International Intermodal Center (Air Cargo & Rail Cargo) with Norfolk Southern and a Foreign Trade Zone. HSV enjoys robust international air cargo service thanks to the operations of DSV Panalpina (“DSV”), a Danish transport and logistics company offering transport services globally. Since then, the DSV forwarder-controlled freighter network at HSV has grown to include Image from https://www.portofhuntsville.com/

139 Brazil, Hong Kong, and Mexico using leased and chartered freighters. HSV’s cargo facilities have grown with the freighter operation – extending runways, expanding taxiways, and building cargo facilities which now total over 300,000 square feet, including multiple temperature-controlled facilities. 2 More than 30 years after its inception, the DSV forwarder-controlled freighter network continues to operate high levels of cargo service while carrying a diverse array of commodities and adding new customers. The DSV network at HSV has become a model for other alternative cargo gateway airports to emulate even as it continues to evolve and innovate. Air Cargo Linkages to Regional Economic Development Interviews with HSV management revealed linkages between the airport’s cargo operations and regional economic development. Existing business retention and new business attraction can be traced back to the presence of convenient, reliable air cargo services. HSV’s Business Development team has cultivated a cooperative environment within the region where the macro benefits of economic development outweigh territorial self-interests, producing results for the broader economic region. Two examples of linkages between HSV’s air cargo services and the economic development of the automotive industry in the region are the opening of a new Mercedes plant and a joint venture between Toyota and Mazda that resulted in the construction of a large manufacturing plant. Both are supported by HSV air cargo. Regional Stakeholders Support the Airport and Its Contributions to Economic Development The Huntsville Chamber of Commerce recognizes the value of HSV’s nonstop international cargo flights to Luxembourg, Hong Kong, Mexico City, and Sao Palo. Its annual report highlights the number of jobs created and capital investments, including those tied to foreign-based companies with locations in the region. The Huntsville MPO notes the economic contribution of the airport by referencing the connections with international markets. Its 2020 plan states, “The presence of many international companies has been a driving force in continuous economic growth in North Alabama. The Jetplex Industrial Park is home to L.G. Electronics, the first Korean manufacturing operation located in North America. In Madison County alone, there are over 60 foreign-based corporations. These include representation from Canada, France, Denmark, Germany, Ireland, Italy, Japan, Korea, Kuwait, Netherlands, Singapore, South Africa, Sweden, Switzerland, and the U.K.” (pp. 96-98) 2 Image from https://www.portofhuntsville.com/air-cargo/

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Airport economic impact studies may accurately measure the activity that occurs on airport properties or is tied directly to airport operations (such as off-site parking and hotels that accommodate airline crew who overnight in a location), but they do not capture how air service supports business and employment throughout the region.

The TRB Airport Cooperative Research Program's ACRP Web-Only Document 53: Measuring and Understanding the Relationship Between Air Service and Regional Economic Development provides airports and major regional stakeholders concerned with economic development with the information and tools necessary to understand and communicate the nexus between air service and regional employment.

The Web-Only Document is supplemental to ACRP WebResource 12: Air Service Development and Regional Economic Activity. Supplemental to the Web-Only Document is a Case Study Compilation with the full versions of the 14 case studies performed as part of the project.

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