Economic Impact Study Finds Pittsburgh Air Hub Generates $3.1 Billion for Region, Supports 33,300 Jobs
http://biz.yahoo.com/prnews/030917/dcw026_1.html
Press Release Source: US Airways
Economic Impact Study Finds Pittsburgh Air Hub Generates $3.1 Billion for Region, Supports 33,300 Jobs
Wednesday September 17, 12:38 pm ET
Loss of Hub Could Have Significant Negative Impact on Tourism Industry, Broader Pittsburgh Regional Economy
ARLINGTON, Va., Sept. 17 /PRNewswire-FirstCall/ -- Airline hub operations at Pittsburgh International Airport are a driving force for growth and economic activity, pumping $3.1 billion annually into the Greater Pittsburgh regional economy and supporting approximately 33,300 jobs in Western Pennsylvania, according to a new economic impact study released today.
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Currently, there are 110 markets with nonstop service from Pittsburgh, 108 of which are served by hub operator US Airways. A vital component of the region's more than $2 billion tourism industry, the hub also helps the region attract and retain major employers: Pittsburgh has seven Fortune 500 corporate headquarters, while similarly sized U.S. cities without air hubs have, on average, only 2.7 Fortune 500 corporate headquarters, according to a Campbell- Hill Aviation Group economic analysis commissioned by US Airways.
The study concluded that the nearly 1.4 million visitors who come to the city by air annually spend an average of $554.30 per trip, excluding airfare, while in Pittsburgh, directly contributing $774.1 million to the local economy. Industries that benefit most from economic activity related to the hub include transportation, hotel and recreation services; dining, entertainment and retail establishments; business, real estate services; and professional and intercollegiate sports franchises.
"The Campbell-Hill study only underscores the importance of finding a solution that ensures a major airline hub is maintained at Pittsburgh International Airport," US Airways President and Chief Executive Officer David N. Siegel said. "It is not an exaggeration to say that the hub is a major factor in the quality of life enjoyed by thousands of people living in Pittsburgh and in Western Pennsylvania."
Study authors concluded that the loss of a major airline hub at Pittsburgh International could cost the region up to $1.8 billion annually and result in the elimination of at least 16,800 jobs in the region. By comparison, a similar recent economic study concluded that the St. Louis area could lose as many as 47,500 jobs as a result of American Airlines' cutbacks at Lambert Field.
If the Pittsburgh hub were eliminated, the resulting reductions in the number of flights -- especially nonstop flights -- would also have a significant negative impact on the region's tourism industry and would make it far more difficult for the region to attract and keep major employers.
The impact of a dismantling of the hub would not be limited to the Pittsburgh area, the report authors say. The loss of the hub would result in a $219 million loss for the state and the elimination of another 2,500 jobs in other parts of Pennsylvania. What's more, eight regional Pennsylvania points -- Altoona, Bradford, DuBois, Franklin, Johnstown, Latrobe, Reading and Williamsport -- all would lose air service if the current Pittsburgh hub were eliminated.
Prospects for new interstate and international flights from Pittsburgh International Airport would also be significantly reduced without a hub, the report concluded. Specifically, elimination of the hub would reduce the number of markets served nonstop from Pittsburgh from 110 to 36 and Pittsburgh would lose existing nonstop service to major U.S. markets including Los Angeles and San Francisco. With the loss of hub connecting traffic, Pittsburgh would see a 64 percent reduction in total passenger enplanements.
US Airways commissioned the study to underscore the importance for all parties involved to work towards a solution that reduces debt at the airport. Currently, the airport's $673 million debt, which is serviced in large part by the airport's major leaseholders, makes US Airways' operations at Pittsburgh International Airport uneconomical. US Airways has said that a $500 million reduction in airport debt is necessary.
The $500 million reduction in the airport debt would effectively translate into a $31 million annual investment in the airport. Given the approximately $2.0 billion annual economic benefit that comes from the hub, this amount would be paid back in less than six days each year through the tax revenue and economic activity generated by the hub.
This study assumes that absent debt and associated cost reductions at the Pittsburgh airport, the US Airways hub would likely close and any new air service would be limited because airport costs would jump dramatically -- discouraging or prohibiting significant replacement flights.
Campbell-Hill Aviation Group, Inc. is a privately owned consulting firm providing a wide range of services to the aviation industry. Campbell-Hill's clients include passenger airlines, all-cargo carriers, airports, industry associations, and city, state, and federal government agencies. The firm's founder, Dr. Brian Campbell, began his aviation consulting career in 1968 with Simat, Helliesen & Eichner, Inc. (SH&E) and is an expert in airline economics, planning and forecasting, and the measurement of the economic impacts of air services on local and regional economies.
The report and an executive summary can be found on US Airways' Web site at http://www.usairways.com/about/press/index.htm. Reporters requiring additional information should contact US Airways Corporate Affairs at (703) 872-5100.
http://biz.yahoo.com/prnews/030917/dcw026_1.html
Press Release Source: US Airways
Economic Impact Study Finds Pittsburgh Air Hub Generates $3.1 Billion for Region, Supports 33,300 Jobs
Wednesday September 17, 12:38 pm ET
Loss of Hub Could Have Significant Negative Impact on Tourism Industry, Broader Pittsburgh Regional Economy
ARLINGTON, Va., Sept. 17 /PRNewswire-FirstCall/ -- Airline hub operations at Pittsburgh International Airport are a driving force for growth and economic activity, pumping $3.1 billion annually into the Greater Pittsburgh regional economy and supporting approximately 33,300 jobs in Western Pennsylvania, according to a new economic impact study released today.
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Currently, there are 110 markets with nonstop service from Pittsburgh, 108 of which are served by hub operator US Airways. A vital component of the region's more than $2 billion tourism industry, the hub also helps the region attract and retain major employers: Pittsburgh has seven Fortune 500 corporate headquarters, while similarly sized U.S. cities without air hubs have, on average, only 2.7 Fortune 500 corporate headquarters, according to a Campbell- Hill Aviation Group economic analysis commissioned by US Airways.
The study concluded that the nearly 1.4 million visitors who come to the city by air annually spend an average of $554.30 per trip, excluding airfare, while in Pittsburgh, directly contributing $774.1 million to the local economy. Industries that benefit most from economic activity related to the hub include transportation, hotel and recreation services; dining, entertainment and retail establishments; business, real estate services; and professional and intercollegiate sports franchises.
"The Campbell-Hill study only underscores the importance of finding a solution that ensures a major airline hub is maintained at Pittsburgh International Airport," US Airways President and Chief Executive Officer David N. Siegel said. "It is not an exaggeration to say that the hub is a major factor in the quality of life enjoyed by thousands of people living in Pittsburgh and in Western Pennsylvania."
Study authors concluded that the loss of a major airline hub at Pittsburgh International could cost the region up to $1.8 billion annually and result in the elimination of at least 16,800 jobs in the region. By comparison, a similar recent economic study concluded that the St. Louis area could lose as many as 47,500 jobs as a result of American Airlines' cutbacks at Lambert Field.
If the Pittsburgh hub were eliminated, the resulting reductions in the number of flights -- especially nonstop flights -- would also have a significant negative impact on the region's tourism industry and would make it far more difficult for the region to attract and keep major employers.
The impact of a dismantling of the hub would not be limited to the Pittsburgh area, the report authors say. The loss of the hub would result in a $219 million loss for the state and the elimination of another 2,500 jobs in other parts of Pennsylvania. What's more, eight regional Pennsylvania points -- Altoona, Bradford, DuBois, Franklin, Johnstown, Latrobe, Reading and Williamsport -- all would lose air service if the current Pittsburgh hub were eliminated.
Prospects for new interstate and international flights from Pittsburgh International Airport would also be significantly reduced without a hub, the report concluded. Specifically, elimination of the hub would reduce the number of markets served nonstop from Pittsburgh from 110 to 36 and Pittsburgh would lose existing nonstop service to major U.S. markets including Los Angeles and San Francisco. With the loss of hub connecting traffic, Pittsburgh would see a 64 percent reduction in total passenger enplanements.
US Airways commissioned the study to underscore the importance for all parties involved to work towards a solution that reduces debt at the airport. Currently, the airport's $673 million debt, which is serviced in large part by the airport's major leaseholders, makes US Airways' operations at Pittsburgh International Airport uneconomical. US Airways has said that a $500 million reduction in airport debt is necessary.
The $500 million reduction in the airport debt would effectively translate into a $31 million annual investment in the airport. Given the approximately $2.0 billion annual economic benefit that comes from the hub, this amount would be paid back in less than six days each year through the tax revenue and economic activity generated by the hub.
This study assumes that absent debt and associated cost reductions at the Pittsburgh airport, the US Airways hub would likely close and any new air service would be limited because airport costs would jump dramatically -- discouraging or prohibiting significant replacement flights.
Campbell-Hill Aviation Group, Inc. is a privately owned consulting firm providing a wide range of services to the aviation industry. Campbell-Hill's clients include passenger airlines, all-cargo carriers, airports, industry associations, and city, state, and federal government agencies. The firm's founder, Dr. Brian Campbell, began his aviation consulting career in 1968 with Simat, Helliesen & Eichner, Inc. (SH&E) and is an expert in airline economics, planning and forecasting, and the measurement of the economic impacts of air services on local and regional economies.
The report and an executive summary can be found on US Airways' Web site at http://www.usairways.com/about/press/index.htm. Reporters requiring additional information should contact US Airways Corporate Affairs at (703) 872-5100.
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