1. Lecture 8: The Economic & Political Role of Airports
By: Zuliana Ismail

2. The Economic Role of Airports
Encompass several thousand acres
Same functions and infrastructure as a modern city
Provide necessary public services
Operating budgets in the tens to hundreds of million dollars
Capital projects accounting for many millions or billions of dollars
Hundreds of occupants and concessionaires engaged in aeronautical and general business generating revenues.

3. The Economic Role of Airports
Among the largest public facilities , airport play significant roles in shaping economic of the communities they serve.
Thus, airport management should responsible for leading the airport positively contributing to the local economy while minimizing the impacts of airport to the environments.

4. How airports contribute to the economic prosperity of the communities they serve?

5. airport activity stimulates economic growth
TAXES
Airports generate billion dollar in “taxes "annually
AIR ACCESS
Providing air access for various companies to expand their business.
BUSINESS OPPORTUNITIES
Local services-most airports generate billion dollar in economic activity
EMPLOYMENT /JOB OPPORTUNITIES
Most airports generate hundred thousand jobs
TOURIST

6. airport activity stimulates economic growth
Taxes
Airports generate billions of dollars per year in state and local taxes.
These tax dollars increase the revenues available for projects & services benefit the residents of each state & community.

7. airport activity stimulates economic growth
Air access
The airport has become important to the growth of business & industry in a community by providing air access for various companies that must meet the demands of supply, competition & expanding marketing areas.
Communities without airports or air service have limitations for economic growth.
For example: limited industrial development & limited potential for attracting tourism
Airports play a key role in the community’s ability to attract and retain businesses

8. airport activity stimulates economic growth
Business opportunities
The use of local services for air cargo, food catering to the airlines, aircraft maintenance, ground transportation also stimulates the economic growth.
Regular purchases of fuel, supplies, equipment & other services from local distributors inject additional income into the local community.
FOOD SERVICE
Ground handling

9. airport activity stimulates economic growth
Employment /job opportunities
Either aviation or non aviation business located at the airport represent a major source of employment for many communities around the country.
Most airports generate hundred thousand jobs.
Direct employment – employment attributed to the operation and management of the airport, airline operations and associated services. Example: MAHB, KLAS
Indirect employment – employment in non-aviation industries that result from airport activity. Example: ERL, Concessionaries

10. - Malaysia Airports Sdn. Bhd.
- Malaysia Airports (Sepang) Sdn. Bhd.
- Malaysia Airports (Niaga) Sdn. Bhd.
- Malaysia Airports Consultancy Services Sdn. Bhd.
- Sepang International Circuit Sdn. Bhd.
- Malaysia Airports (Properties) Sdn. Bhd.
- Malaysia International Aerospace Centre Sdn. Bhd.
- Airport Ventures Sdn. Bhd.
- NECC Sdn. Bhd.
- Malaysia Airports Technologies Sdn. Bhd.
- MAB Agriculture-Horticulture Sdn. Bhd.
- K.L Airport Hotel Sdn. Bhd.
- Urusan Teknologi Wawasan Sdn. Bhd.
- Airport Automotive Workshop Sdn. Bhd.
- Eraman (Malaysia) Sdn. Bhd.
- Malaysia Airports Consultancy (Labuan) Private Limited
- Malaysia Airports (Mauritius) Private Limited
- MAHB (Mauritius) Private Limited
Its associated companies are:-
- Kuala Lumpur Aviation Fuelling System Sdn. Bhd.
- Gas District Cooling (KLIA) Sdn. Bhd.

11. airport activity stimulates economic growth
Tourist
Cities with good airport facilities also profit from tourist & convention business such hotels, restaurants, retail stores, sightseeing & transportation.

12. OTHER COMMUNITY BENIFITS
Variety of other public benefits:
Time & cost savings associated with air transportation
Access to national and international markets – global connections
Enhancement to community well-being/quality of life
Support of increased tourism/conventions
Comfort and convenience