There are four categories of benefits used in the economies impact formula:

Direct Impacts

Direct impacts are the impacts resulting from the expenditures by the airport and the airport tenants. These expenditures are associated with the providers of services at the airport including the airport operator (public or private), fixed base operators (FBO’s) air carriers, freight, haulers, concessionaires, retailers, government installations, educational institutions, military facilities, flight schools, maintenance operations, and others. The value of the direct impacts is the combined total of all payroll, operating, and capital expenditures. Strictly speaking, the direct impacts represent economic activities that would not occur in the absence of the airport.

Payroll – Payroll includes the payroll of the airport operator for personnel involved in the operation of the airport and airport tenants for personnel on the airport.

Operating Expenditures – Operating expenditures are all expenditures by the airport owner \/ operator and tenants required to keep the airport and aviation operations open for business. These include office supplies; operating supplies, including rental space, landing fees, fuel fees; repair and maintenance supplies; and improvements, and other capital outlays.

Capital Expenditures – Capital expenditures are all expenditures by the owner/operator or tenants for land and buildings, machinery and equipment, facility improvements, and other capital outlays.

Indirect Impacts

Indirect impacts are the impacts from expenditures related to airport activity, but generated away from the airport facility. The indirect impacts include spending from items such as hotels, restaurants, travel agencies, and ground transportation. The level of indirect impacts depends upon the number of people traveling through the airport and their spending pattern in the surrounding community.

Induced Impacts

Induced impacts are the impacts from the subsequent rounds of spending and re-spending. In the community, which begin with spending by the airport and airport tenants, otherwise known as the “multiplier effect.” This impact could also include the spending and re-spending made by passengers. But to maintain a more conservative formula, only those expenditures actually made on the airport (direct impacts) have been included to calculate the induced impact.

Transportation Cost Saving

Transportation cost savings are the savings of time and money associated with additional ground transportation that would be required if the airport was not located as its present location and an alternate comparable airport was used. Transportation cost saving represents a dollar figure for the savings in productive time and vehicle costs by having an available local airport rather than being required tot travel to a more distant alternate airport.