VAN NUYS AIRPORT CONTRIBUTES OVER $1.3 BILLION TO REGION, STUDY SHOWS
A Major Economic Engine, the Airport Also Supports More Than 12,300 Jobs
(Van Nuys, CA)- A soon-to-be-released economic study indicates that Van Nuys Airport (VNY), the world’s busiest general aviation airport, annually contributes more than $1.3 billion to the Southern California economy, supports more than 12,300 jobs, and generates an annual earnings impact of $707 million.
Conducted by Martin Associates, the study shows that since the last economic impact analysis of VNY, released in 1999, the airport’s contribution to the local economy has increased despite a drop in aviation activity. Differences in methodology and measures of economic value make the revenue and earnings results difficult to compare between studies; however, the number of total jobs the airport supports has increased by about 23% (from more than 10,000) over the findings of the previous study.
“VNY’s convenient proximity to city business, recreation and entertainment centers greatly benefits the corporate, private and government aviation travelers who use the airport,” said Van Nuys Airport Manager Selena Birk. “The latest economic study indicates that in addition to playing a crucial role in the overall Southern California airport system, VNY continues to create jobs, promote business and serve as a valued San Fernando Valley and region-wide resource by generating significant positive economic impacts.”
The economic impact study estimates the contributions the airport makes to the state and local economy by generating business revenue for firms that provide air passenger service, general aviation services and support services. These firms, in turn, offer employment and income to individuals and pay state and local taxes.
Of the 12,300-plus jobs supported by VNY, more than 2,000 are directly dependent on airport activity. The remainder are airport-generated induced jobs (supported in the local economy due to purchases by airport employees); airport-generated indirect jobs (generated due to the purchase of goods and services by firms dependent on airport activity); visitor industry jobs; and non-aviation real estate tenant jobs. Together, all of these jobs directly and indirectly create wages and salaries of $707 million.
The $1.3 billion in business revenue the airport creates goes to the firms providing aviation services at VNY, to local visitor industry firms and to non-aviation tenants located at the airport. Passenger and general aviation activity creates more than $637 million in business revenue to the firms supplying passenger and aviation services at VNY.
In addition, the study indicates that VNY activity generates $79.9 million in government revenue through an assortment of tax payments by airport businesses and employees. The airport does not receive local tax dollars toward its operation, but is financed entirely by revenues from lease, rental and user fees.
The airport’s positive economic benefits have increased despite a drop in total annual operations (takeoffs and landings), which have decreased by nearly 104,000 in the last five years to about 400,000 currently.
The full economic study is scheduled to be released in November and can be read online at that time, by visiting www.lawa.org/vny .
About Van Nuys Airport:
The world's busiest general aviation airport (dedicated to noncommercial air travel), VNY averages nearly 400,000 takeoffs and landings annually and provides ongoing leadership in general aviation, business and community service. More than 100 businesses are located on the 730-acre airport, including six major fixed-base operators and numerous aviation service companies. In addition, VNY provides programs to benefit local residents, plus educational initiatives and aviation-related career and training opportunities. VNY is one of four airports owned and operated by Los Angeles World Airports, including Los Angeles International, LA/Ontario International and LA/Palmdale Regional .
