The Impact of Aviation on the U. S. Economy

1. The Impact of Aviation on the U. S. Economy Holly Kunz Rebecca VredenburghMethodist University

2. Overview • Airline Industry • General Aviation Industry • Jobs • Technology and Innovation • Domestic and International Trade • Next Gen • Impact of Economy on Aviation

3. Airline Industry • Consists of 100 certified passenger airlines • Conducts over 11 million passenger flight departures each year • Carries over one-third of the world’s air traffic • Earned over $160 million in revenue in 2006

4. What are Aviations Contributions to the U.S. Economy? 1. It creates Jobs 2. It propels Technology and Innovation 3. It facilitates global and domestic Trade

5. Contribution #1 It Creates Jobs • As of November 2010, the U.S unemployment rate was 9.8% • Without the pool of aviation jobs, the rate would be 14% • Civil aviation employs 10.9 million Americans • General aviation employs 1.2 million Americans

6. The Aviation Industry provides 10.9 Million U.S. JobsU.S. Job Impact (in millions)

7. Directly Blah blahblahahklkjlkjlkjlkjlkjljl Ffff fff

8. IndirectlyAirfield Lighting, Electricians, Bird Dispersal Teams,

9. Contribution #2Technology and Innovation

10. The need for faster, more fuel economic jets. Honda’s new business jet is built of composite materials featuring a unique over the wire engine mount. It helps cut fuel consumption while allowing greater speeds. (Uses 20% less fuel that comparable size jets and at a faster speed)

11. Why is Aviation Technology Important for our Economy? • Technology is needed to reduce inefficiencies, decrease noise, increase passenger safety, and reduce the carbon footprint on the environment. • Due to rising costs surrounding fuel consumption, aircraft manufacturers and technological experts are racing to come up with climate and cost-friendly alternatives to jet fuel. • To reduce gas consumption and tr

12. Contribution #3Domestic and International Trade

13. Domestic and International Trade • Aviation is Essential for Global Business • It facilitates Economic Growth and World Trade • In 2009, the value of all goods transported by air represented 35% of the world’s international trade • The total global impact from aviation was $35 trillion or 7.5% of the world GDP

14. The FAA and Next Gen The Problem? “Flight Delay is a serious and widespread problem in the United States. Increasing flight delays place a significant strain on the U.S. air travel system and cost airline, passengers, and society billions of dollars each year… In addition to these direct costs imposed on the airline industry and its customers, flight delays have indirect effects on the U.S. Economy. Specifically, inefficiency in the air transportation sector increases the cost of doing business for other sectors, making the associated business less productive”

15. Next Gen- Increasing Efficiency What is NEXTGEN?- the transformation of the US national airspace system. It represents an evolution from a ground-based system of air traffic control to a satellite-based system of air traffic management. This evolution is vital to meeting future demand, to avoid gridlock in the sky and our nations airports.

16. How will Next Gen improve Economy? • How does this help the economy?-When fully implemented, Next Gen will safely allow more aircraft to fly more closely together on more direct routes, reducing delays, and providing unprecedented benefits for the environment and the economy through reductions in carbon emissions, fuel consumption, and noise. • Next Gen is designed to: -Increase airport capacity • Maximize airport capacity • Increase airspace efficiency • Improve fuel consumption

20. References • http://www.technologyreview.com/energy/27026/?a=f