Federal Sequestration May Threaten California Commercial Aviation Economy

by Chris Smith on March 11, 2013

California commercial aviation activity generates billions for the California economy,   according to a study released today by the California Airports Council (CAC). California airports provide 117,273 direct jobs with a multiplier effect of 386,016 total California jobs related to commercial aviation.   However, federal sequestration threatens this important segment of the California economy.

“This report demonstrates that California commercial aviation is a major source of employment and airports are significant contributors to the California economy.  It remains to be seen what impact sequestration will have, but we are concerned.” said Rod Dinger, CAC President and Airport Director for the Redding Municipal Airport.

Wages earned by Californians working directly at airports are $7.6 billion annually, and almost $23 billion for all commercial aviation related jobs in the state.  This does not include the value of goods sold to support commercial aviation operations.  “Clearly, commercial aviation in California provides meaningful income to many California families.  The more commercial aviation activity California airports can generate, the more jobs we can create,” added Gina Marie Lindsey, CAC Secretary and Executive Director of Los Angeles World Airports, which operates both the Los Angeles International and Ontario International Airports.

The Study reveals that direct commercial aviation industry output is over $20 billion, with multiplier effects yielding almost $63 billion statewide.  Bill Sherry, CAC Immediate Past President and Airport Director for the Norman Y. Mineta San José International Airport noted, “California has made major investments in commercial aviation infrastructure in recent years that allows for the growth of jobs and a robust goods and services economy.  Unfortunately, the impacts of federal sequestration may soon result in a decline in the very economic benefits this study outlines.”

The jobs within commercial aviation are spread among a variety of industries and services, as highlighted in the Study.  “It is very important for California to understand how important commercial aviation is to our state. Employees of all skill levels and backgrounds are required to run an airport which creates tremendous opportunity,” said Mario Rodriguez, CAC Vice President and Airport Director for the Long Beach Airport.

The full California Commercial Aviation Employment Study and Executive Summary can be found at www.calairportscouncil.org.

About California Airports Council (CAC)
The California Airports Council was founded in 2009 and consists of the 34 commercial service airports in California.  Follow the CAC on Twitter @Cal_Airports.

p5rn7vb

Previous post:

Next post: