Wednesday, June 4, 2008
Revenue from airport is strong
First economic study conducted at Bob Hope in 12 years shows that it brought in $3.9 billion to regional businesses.
By Alison Tully
The Burbank (CA) Leader BURBANK – The revenue that Bob Hope Airport contributes to Southern California businesses has increased by more than $3 billion since 1993, according to the airport’s first economic study in 12 years. The airport brought $3.9 billion in revenue to regional businesses in 2006, which is up from $875 million in 1993. Unison-Maximus Consulting Inc. presented the report’s findings on Monday at the Burbank-Glendale-Pasadena Airport Authority meeting.
The airport generates 2,400 jobs and accounts for another 34,000 full-time jobs in Southern California.
The report “shows that the airport is a huge economic engine in the local economy,” said Dan Feger, airport interim director.
The report also found that 52% of the airport’s passengers are female, 71%have an income of $60,000 or more, 69% are California residents, and 65% are between 25 and 54 years old.
Sixty percent of the airport’s passengers said their trips were for pleasure or vacation.
About 1,200 passengers and 76% of the airport’s businesses – retail stores, airline carriers and rental car agencies – took part in the survey. Industry and government sources, such as the U.S. Bureau of Economic Analysis, also contributed data to the report.
The authority expects higher prices for flights caused by climbing oil prices to bring airport revenues down in the next year, said Don Arthur, Unison-Maximus Consulting principal.
“This study gives us an updated picture of the airport since the mid-1990s,” said Carl Povilaitis, airport authority president. “The airport’s place in the economic vitality of the region has never been more important.”
Bob Hope Airport was also rated the most convenient Southern California airport compared with John Wayne, Long Beach, Los Angeles International and Ontario International airports.
“It’s clear that the Burbank airport is recognized as a well-managed airport,” Pasadena Commissioner Chris Holden said. “The operations here are regarded in a superior way, and the staff should be acknowledged for all their hard work.”
A reported 74% of passengers surveyed ranked convenience as one of their major considerations in booking a flight.
The airport contributes $386 million toward state and local taxes, according to the report.