Changing the RegionConnecting the World

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Changing the RegionConnecting the World
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The Economic Impact of Memphis International
AirportJune 2005
By Arnold E. Perl
Chairman


Memphis-Shelby County Airport Authority
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• from a 2005 report by
• Sparks Bureau of Business and Economic
  Research/Center for Manpower Studies
• The University of Memphis

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• June 27, 2005
• 10 Years of Transatlantic Passenger Service,
• Memphis/Amsterdam

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Memphis/Amsterdam

• 10-Year Impact
• 159,412,413 in economic output
• 47,588,986 of earnings
• 2,232 jobs
• Load factors greater than 80, nearing 90

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Memphis to Europe/Middle East/AfricaPassenger
Traffic, 1994-2004
Demand for the flight has doubled in 10 years
Source Department of Transportation and
Destination International Survey through 3Q2004,
provided by InterVISTAS, Washington, D.C.
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• Memphis International Airport Metrics
• The Economic Engine of the Mid-South

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Memphis International AirportTotal Impact

• Economic Impact 20.7 Billion Annually
• 1998 economic impact 12.9 billion
• 1 in 4 jobs locally, nearly 166,000
• Nearly 6 billion in annual earnings

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Total Takeoffs and Landings
Source Memphis-Shelby County Airport Authority,
Activity Reports
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Worldwide Aircraft Operations 2004

• Chicago
• Atlanta
• Dallas
• Los Angeles
• Denver
• Phoenix
• Las Vegas
• Minneapolis
• Paris
• Detroit
• Cincinnati
• Houston
• Philadelphia
• Frankfurt
• London

• 16. Washington, DC (IAD)
• 17. Charlotte
• 18. Los Angeles
• 19. Newark
• 20. Amsterdam
• 21. Salt Lake City
• 22. Boston
• 23. Toronto
• Madrid
• Miami
• New York (LGA)
• Memphis
• Munich
• Seattle/Tacoma
• Sanford, FL
• Source Airports Council International
  Geneva, Switzerland, 2004

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Memphis International Airport Cargo Impact

• Worlds busiest cargo airport since 1992
• FedEx Super Hub accounts for 93.6 percent of
  cargo at MEM
• 19.5 billion of total economic impact from cargo
  operations

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Worldwide Air Cargo Leader 2004 Cargo Traffic

• Memphis 3.55 million tons
• Hong Kong 3.13 million tons
• Tokyo 2.37 million tons
• Anchorage 2.37 million tons
• Seoul 2.13 million tons
• Los Angeles 1.90 million tons
• Frankfurt 1.84 million tons
• Singapore 1.80 million tons
• Miami 1.78 million tons
• Louisville 1.74 million tons

Source
Airports Council International, Geneva,
Switzerland, 2005
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Memphis International Airport Passenger Impact

• 5,193,060 enplanements in 2004
• 9,487 passenger operations related jobs
• Direct and indirect impacts of passenger
  operations of 1.2 billion

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MEM Passenger Enplanements
Source Memphis-Shelby County Airport Authority,
Activity Reports and U.S. Bureau of
Transportation statistics
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• Top 25 Passenger Hubs

• Atlanta
• Chicago
• Dallas/Ft. Worth
• Los Angeles
• Phoenix
• Denver
• Las Vegas
• Minneapolis/St. Paul
• Houston
• Detroit
• Orlando
• Seattle
• Newark

• St. Louis
• San Francisco
• Cincinnati
• Philadelphia
• Charlotte
• New York
• Salt Lake City
• Miami
• Pittsburgh
• Cleveland
• Washington
• Memphis

Source U.S. DOT T-100 Database (Year-end
9/30/03) and Woods Poole Economics
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• Domestic Departures
• Per 1,000 Persons(per annum)

• Cincinnati
• Anchorage
• Memphis
• Atlanta
• Las Vegas
• Denver
• Newark
• Charlotte
• Orlando
• Minneapolis/St. Paul
• Dallas/Ft. Worth

108 103 102 95 91 85 75 69 66 65
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• 12. Seattle
• 13. St. Louis
• 14. Salt Lake City
• San Francisco
• Phoenix
• Houston
• Chicago
• Detroit

60 59 56 56 53 44 42 42
Source Global Aviation Associates, Washington,
D.C., 2004
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Memphis International Airport Impact on Business

• 54.7 percent agreed or strongly agreed that
  growth at MEM would automatically cause their
  businesses to grow.
• 44.4 percent agreed or strongly agreed that a
  growing airport would provide an incentive for
  their company to move activities to Memphis.
• 41.7 percent agreed or strongly agreed that their
  companys future decisions to invest in Memphis
  will be partially based on services at MEM.

Web-based survey of Memphis Businesses
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How would you rank the following at MEM?
Web-based survey of Memphis Businesses
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JD. Powers Ranking for Overall Airport
Satisfaction(Medium Airports)

• Singapore
• Pittsburgh
• Cincinnati
• Portland
• Fort Lauderdale
• Tampa
• Salt Lake City
• Memphis
• Honolulu
• San Diego
• Vancouver
• Charlotte
• Tokyo
• Chicago, Midway
• Washington, Reagan

• 16. Sydney
• 17. New Orleans
• 18. Cleveland
• 19. Manchester, UK
• 20. Baltimore/Washington
• 21. Seoul
• 22. Toronto
• 23. Saint Louis
• Philadelphia
• London, Gatwick
• Seattle/Tacoma
• Barcelona
• Paris, Orly
• San Jose
• New York, La Guardia

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Conclusions

• Memphis International Airport not only defines
  Memphis today, but it also sets the stage for our
  future.
• The airport is the largest single economic
  generator in the Memphis economy and one of the
  largest in America.
• Both cargo and passenger service especially the
  FedEx and Northwest hubs create a
  disproportionate business and tourism advantage
  for the Memphis region compared to other
  competing cities.
• The future of Memphis business and tourism
  growth is contingent upon the continued success
  of Memphis International Airport and its
  principle airline partners.
• Memphis International Airport is
• Changing the RegionConnecting the
  World.

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• Aviation in the first half of the 21st century
  will be as important to the country as the
  interstate highway system has been in the second
  half of the 20th century There is no place in
  America that understands that more at its core
  than Memphis.
• -- Rodney D. Slater
• U.S. Secretary of
• Transportation
• April 17, 1998

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