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  General Aviation’s Contribution To The U.S. Economy  General Aviation Manuacturers Association May 2006 Prepared or Assessment by W. Bruce Allen, PhD David L. Blond, PhD Aaron J. Gellman, PhD  General Aviation’s Contribution to The U.S. Economy   |May 2006|©2006 General Aviation Manuacturers Association Contents Executive Summary  ............................................................................................................................................................................................................................... 1 Introduction ................................................................................................................................................................................................................................................... 6 Defnitions ....................................................................................................................................................................................................................................................... 7 GA’s Direct Contribution ................................................................................................................................................................................................................ 13 GA’s Indirect Contribution ............................................................................................................................................................................................................ 17 GA’s Induced Contribution ........................................................................................................................................................................................................... 19  Approach and Methodology  ....................................................................................................................................................................................................... 21  Appendix A: Data Sources and Assumptions ........................................................................................................................................................... 28  Appendix B: Data and Results Tables ............................................................................................................................................................................... 32  General Aviation’s Contribution to The U.S. Economy   |May 2006|©2006 General Aviation Manuacturers Association List o Charts and Tables Table 1. General Aviation’s Contribution to the U.S. Economy In 2005 ..................................................................................................... 2 Chart 1. Map o General Aviation’s Total Economic Contribution by State In 2005 .......................................................................... 3 Table 2. Leading States In Terms O GA Total Economic Contribution in 2005 .................................................................................. 3 Chart 2. Map o GA’s Total Economic Contribution Per Capita In 2005 ..................................................................................................... 4 Table 3. Leading States In Terms O GA Total Economic Contribution Per Capita in 2005 ....................................................... 4 Chart 3. Breakdown o GA’s Total Economic Contribution in 2005 ............................................................................................................... 5 Chart 4. U.S. Sales by GA Aircrat Category in 2005 ............................................................................................................................................... 8 Chart 5. Flight Hours by GA Aircrat Category in 2005 ............................................................................................................................................ 8 Table 4. FAA GA Aircrat Use Categories ........................................................................................................................................................................... 9 Chart 6. Distribution o Flight Hours by GA Aircrat Category in 2005 ..................................................................................................... 11 Chart 7. Contributions Quantied and Not Quantied ........................................................................................................................................... 13 Chart 8. Assumed User Spending Patterns .................................................................................................................................................................. 14 Chart 9. Distribution o GA’s Direct Contribution to the U.S. Economy in 2005 ............................................................................... 14 Table 5. Top Ten Industries Beneting rom Indirect Contributions o GA in 2005 ......................................................................... 18 Table 6. Leading Industries Receiving GA’s Induced Contribution to The U.S. Economy in 2005 .................................... 19 Table 7. Direct Contribution (A-Matrix) Showing Hybrid Aircrat Direct Contribution Vector ................................................... 24 Table 8. Hybrid GA Contribution Based on Inverse Matrix (in dollars) ...................................................................................................... 25 Table 9. Personal Consumption Expenditure Vector .............................................................................................................................................. 26 Table 10 . Gross State Product Distribution by Industry Group ......................................................................................................................... 27  General Aviation’s Contribution to The U.S. Economy   |May 2006|©2006 General Aviation Manuacturers Association  Executive Summary  General Aviation (GA) makes a signicant contribution to the national economy and to the economy o every state inthe U.S. Because o the diverse nature o the U.S. feet o general aviation aircrat, and the multitude o operations andunique services they perorm, GA’s economic contribution has sometimes been overlooked or it is combined with othertransportation sectors, masking its own contribution. Also, when dening GA activity too narrowly, economic studiescan easily underestimate GA’s economic contribution. The GA feet is diverse, as are the reasons or operating the aircrat. GA encompasses the manuacture and operationo any type o aircrat that has been issued a certicate o airworthiness by the U.S. Federal Aviation Administration(FAA), other than aircrat used or scheduled commercial air service1 (airlines) or operated by the U.S. military.General Aviation includes xed-wing airplanes, helicopters (rotorcrat), balloons, dirigibles, and gliders. GA activitiesinclude the manuacture and operation o aircrat equipped with turbine engines (turbojet, turboan, or turboprop) orpiston engines, and o non-powered aircrat. GA includes fights related to business or corporate transportation o people or cargo, personal transportation (e.g., visiting amily), air ambulance, fight training, and many purposes suchas re spotting and suppression and pipeline patrol. GA operations are not determined by the ownership o the aircrat;GA aircrat may be wholly-owned, jointly-owned, rented, chartered, or leased. GA operations are not dened by theairman certicate o the pilot operating the aircrat. The pilot o a GA aircrat may hold a student, private, commercial,or air transport pilot certicate, depending on the purpose o the fight and the number o pilots required to operate itby the manuacturer. This study breaks new ground by bounding general aviation activity using the FAA’s standard denitions, which arewidely recognized by every segment o GA. The study uses FAA’s estimates o annual fight activity and applies industry-derived per-hour costs or operating various types o aircrat. GA’s economic contribution is calculated by putting thesecosts into regional economic models, widely accepted as valid by economists and available rom the U.S. Departmento Commerce.General Aviation is an important element o economic growth in part because it ullls transportation needs whichcan not otherwise be met. Only about 350 U.S. communities have scheduled air service; or the remainder, GA is theonly option or the movement o persons or cargo by air. Moreover, GA provides specialized air services, such as airambulance and trac patrol, to communities that do have scheduled air service. 1 Commercial air carriers sell air transportation to passengers and shippers. Commercial air carriers include operators o small, propeller-driven aircrat (under Part 135 o the Federal Aviation Regulations) as well as operators o jet airliners (under FAR Part 121).