BLUE GRASS AIRPORT RELEASES RESULTS OF ECONOMIC IMPACT STUDY

Lexington, KY - A report presented today to the Lexington-Fayette Urban County Airport Board revealed that Blue Grass Airport has a significant impact on the economy of Central and Eastern Kentucky.

According to study authors Dr. Mark C. Berger and Dr. Eric Thompson Blue Grass Airport contributes 1,760 jobs in the local economy. The airport is also credited for $134.2 million in annual revenue and $45.8 million in worker earnings. This includes the impact from airport businesses, which account for about 1,000 jobs and the impact of the airport on regional industry and tourism that accounted for the remainder. “The airport’s contribution to the local economy is very much like that of a large industrial company, employing people throughout the region”, said Dr. Eric Thompson, Co-author for the study.

The comprehensive report, conducted by the University of Kentucky Center for Business and Economic Research, not only comprises a traditional economic impact study that looks at airport spending, employment and worker incomes, the report also includes an estimate of time savings attributable to Blue Grass Airport and the results of surveys of Lexington-area residents and large businesses in the region.

It was found that the airport generates a number of benefits for air travelers from Kentucky and for large employers in the region. The business community, in particular found the airport’s convenience and choice of flights of great value. However, many would like to see a greater variety and frequency of flights offered.

The airport also makes a healthy contribution to local tourism. It is estimated that each trip into the community for business generated $400 in visitor spending while leisure trips generated $244. In total, it is estimated that $18 million was spent by visitors using Blue Grass Airport in 1999 and 381 jobs were created in the local economy.

While a majority of passengers using the airport lived within the seven-county Lexington MSA nearly 1 in every 3 passengers using the airport lived outside of the Lexington area. Many travelers from across eastern portions of the state rely on the airport as their primary air service provider. “The fact that 30% of our passengers come from outside of Central Kentucky is very significant. Blue Grass Airport truly serves a regional customer base”, said airport director Michael Gobb.

Many individuals and companies surveyed as part of the study responded that they value the airport’s convenience and ease of use. In fact, drive time analyses reveal that the average traveler using Blue Grass Airport saves 75 minutes in drive time each way over using the airport in Cincinnati and 70 minutes over using Louisville. This savings becomes even more significant when it is multiplied over numerous occurrences. It was found that over 87% of travelers check Lexington fares and schedules first to avoid driving to other airports in the region. However, the cost of airfare and lack of suitable flight availability sometimes limits local choices.

“This study will be used as a benchmark measurement of our airline marketing efforts. By fully understanding the consumer’s travel experience we can devise programs to better meet our customer’s needs”, said airport marketing manager Thomas Tyra.

Airport officials will use the data to complement ongoing efforts to attract new flights and more competitive service to better meet the needs of businesses across the region.

Questions concerning the study can be directed to:

Dr. Mark Berger, Director , Center for Business and Economic Research, University of Kentucky, (859) 257-1282

Dr. Eric Thompson, Center for Business and Economic Research, University of Kentucky, (859) 257-1386

Thomas Tyra, Blue Grass Airport, (859) 425-3105

Select Findings of the Economic Impact Study

Direct Impact in 1999
940 jobs $79.7 million in revenue $27.1 million in worker earnings

Indirect Impact in 1999
440 jobs $36.4 million in revenue $11.8 million in worker earnings

Visitor Impact in 1999
381 jobs $18 million in revenue $6.8 million in worker earnings

Total Impact in 1999
1,760 jobs, $134.2 million in revenue, $45.8 million in worker earnings

Other Findings

Traveler Residence:

Fayette County= 54%
Seven County Metro Area=18%
Outside Metro Area= 28%

Average Spending by Visitors:

Business= $400/trip
Leisure= $224/trip

Total Visitor Spending:

Business= $55 million
Leisure= $12 million

Visitor Spending Due to Airport

Spending= $18 million
Earnings= $6.8 million

Reason for Visiting Lexington:

Business= 73%
Leisure= 27%

Average Worker Salary=$26,700-29,000 annually

Travelers Using Travel Agencies=87%

Average Drive time to BG Airport=36 minutes

Average Drive Time Savings Each Way By using airport:

Cincinnati=75 minutes
Louisville=70 minutes

Top Destinations Requested:
Washington DC, New York, Orlando, Raleigh