The Philadelphia International Airport has reached new
heights in terms of the economic wallop it generates for the 11-county
Philadelphia area, according to a new report that pegged the airport as "a
center of significant direct economic activity."
The Philadelphia International Airport, or PHL, serves
more than 30 million commercial passengers every year with about 500 daily
flights to more than 120 national and international non-stop destinations.
More flights are added seemingly every month, including
Alaska Airlines' upcoming flights to Los
Angeles, and Frontier Airlines' flights to Puerto
Rico.
But it's no secret PHL is an economic driver — a new
report shows the direct and indirect economic activity associated with the
airport — across a range of categories — produces $15.4 billion in annual
output within the 11-county Philadelphia metropolitan statistic area,
supporting 96,300 jobs and $4.8 billion in total earnings.
The figures were included in the Regional Economic Impact
of Philadelphia International Airport by Econsult Solutions, a
Philadelphia-based economic consulting firm.
"PHL is a center of significant direct economic
activity and employment as initiators of capital investments and as
transportation service providers," the report reads.
Additionally, direct and indirect economic activity
associated with the airport generate:
$78 million in annual tax revenue for the city of
Philadelphia;
and $295 million in state tax revenues for the four
states touching Greater Philadelphia, including $255 million for Pennsylvania
The airport is owned by the city and operated by its
Division of Aviation, the operations of which are "self-sustaining through
user charges, airline-backed revenue bonds and grants," the report reads.
"The city is reimbursed for city services like
public safety, meaning that the airport does not rely on any support from the
city's general fund, which would offset the tax revenue it generates," the
report continues.
"A catalyst for economic growth"
The airport and its growing list of non-stop service is a
"crucial cog for regional economic growth because it brings in dollars
from outside of the area to be circulated locally," the report reads.
PHL's non-stop service to 120-plus world destinations
give a boost to:
·
Access to new markets and operating locations
·
Overall attractiveness and quality of life
·
Productivity and efficiency through the ease of
accessibility and proximity of PHL to area businesses
·
Opportunities for the movement of goods and
services
The airport, since 2000, has undergone more than $2
billion in capital improvements, including the recently completed $161 million
Terminal F expansion and renovation project.
This project included a new $35 million,
34,000-square-foot baggage claim facility providing ground transportation, and
access to parking and SEPTA's Regional Rail.
On the horizon — and slated for a mid-2018 completion —
is a $30 million renovation
of PHL Airport's Terminal B that includes eight restaurants from Philadelphia's
award-winning chefs and restaurateurs, and technological updates like
tech-driven gate lounges and Wi-Fi-enabled iPads.
PHL this past February also received $800,000
from the state for the 1,494 linear-foot extension of Runway 9R-27L and
construction of associated taxiway work, which has a price tag of about $193
million. This project is expected to be completed next year.
These types of developments can only spell future success
for PHL, since they improve the customer experience, the report reads.
"This strategy reflects the fact that the end
customer for the airport is ultimately not the airlines, but rather the
passengers, and it is those passengers and their travel decisions and needs
that generate the bulk of regional economic impact from air service," the
report reads.
Improving the customer experience is a benefit for PHL,
which continues to lag
alongside its competition, according to J.D. Power's 2016 North American
Airport Satisfaction Study.
The airport came in at No. 29 last year, down from No. 27
in 2015, ranking it third-lowest among large U.S. airports.
Low passenger satisfaction is a crux for airports,
because it can negatively impact the airport's future, including the loss of
passenger traffic and, eventually, revenue.
In contrast, a satisfied customer is more likely to
revisit the airport and recommend it to other travelers.
Changes could be transformational in terms of customer
satisfaction, since terminal facilities make up 24 percent of the overall
satisfaction in J.D. Power's report, Michael Taylor, director of the airport
practice, told the Business Journal in an earlier interview.
"[PHL is] doing the same things the top-performing
airports are doing — applying technology to the experience to get people into
the airports and have them entertained," Taylor said.
The capital investments either completed or are ongoing
at PHL "create up-front stimulus and improve the value proposition that
PHL delivers to the region and its residents over the long-term," the
report reads.
Bolstering existing partnerships, creating new ones and
continued participation from the local business community are key to ensuring
continued growth for PHL, local businesses leaders said at a panel in
November 2016.
"To have a world-class city and region does not
happen unless you have a vibrant, growing, efficient, effective air transport
system, and a world-class airport," said Rob Wonderling, president and CEO
of the Chamber of Commerce for Greater Philadelphia
Philadelphia International Airport facts, according
to the report:
·
PHL is served by 25 different airlines
·
Plane movements, or takeoffs and landings,
totaled more than 411,000 in 2015
·
PHL is the 14th busiest airport in the United
States by the plane movement metric
·
Passenger volume, including enplaning and
deplaning, totaled 31.4 million in 2015
·
PHL is the 19th-busiest airport in the United
States by the passenger volume metric
·
62 percent of the 30 million-plus annual
passengers have their origin or destination at PHL, while 38 percent are
connecting through to other destinations
·
PHL moves more than 420,000 tons of freight and
nearly 24,000 tons of air mail annually
·
PHL is the East Coast hub for UPS, which handles
nearly 245,000 tons of freight annually through its facility
Source: Philadelphia
Business Journal
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