Airport Adds Income of $782 Million a Year

Van Nuys Airport adds $782 million a year to the economy of the Los Angeles area, 56% of that money going into the San Fernando Valley’s economy, according to a report issued this week by the Los Angeles Department of Airports.

On a typical day, the report said, the airport handles 1,294 takeoffs or landings, brings 350 persons to the Valley who spend an average $100 a day locally, and pumps $2.1 million into the area’s economy.

The department included the Van Nuys Airport material in a report on three city-owned airports presented by Mayor Tom Bradley at a breakfast meeting of civic leaders Tuesday.

Van Nuys Airport has a direct economic impact of $247.9 million annually, the report said. That includes almost $42 million spent by fixed-base operators, such as aircraft charter and repair companies, $21.6 million spent on military operations, $8.8 million on other government operations, $3.3 million on aviation fuel purchases and $2.1 million on flight schools. Additional categories include helicopter and corporate flight operations and revenue from other airport tenants.

The indirect economic impact--money spent elsewhere in the area by those using the airport--was placed at $36.9 million, including $11.1 million on lodging and $9.4 million on food and drink.167772161 The “induced economic impact”--the multiplied value of the direct and indirect economic impacts as the money moves through the local economy--was placed at $497.2 million.

$160.6-Million Payroll

There are 2,492 jobs at the airport with a payroll of $160.6 million. The airport generates 5,964 jobs elsewhere, the report said. Valley residents hold 70% of the airport jobs and 59% of those generated elsewhere.

Airport users pay $30.6 million a year in taxes to local governments.

The airport uses no local tax money. The Department of Airports supports itself, mainly by renting out airport land and buildings and charging fees to passenger airlines that use Los Angeles International and Ontario airports.

The study was conducted by outside consultants Wilbur Smith Associates and Gardner & Holman Consulting Planners, using accounting methods suggested by the Federal Aviation Administration, the department said.