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  • Commercial aviation helps drive more than 10M American jobs and 5 cents of every dollar of U.S. GDP

  • Commercial aviation drives more than $1 trillion per year in economic activity

  • In 2012, U.S. airlines moved more than 48,000 tons of cargo per day

  • In 2012, the value of a kilogram of U.S. merchandise exported by air averaged 121 times the value exported by sea

  • For every 100 airline jobs, some 360 are supported outside of the airline industry

  • Federal taxes constitute $61 – or 20% – of the price of a typical $300 domestic round-trip ticket

  • In 2011, U.S. airlines carried 16 percent more passengers and cargo using 10 percent less fuel than in 2000

  • Domestically, airlines drive 5% of economic activity but account for 2% of man-made GHG emissions

  • From 2000-2011, airlines reduced GHG emissions by 11% while transporting 16% more passengers and cargo

  • From 1975-2011, U.S. airlines and their partners reduced significant noise exposure by 99%

  • Commercial air travel is the safest form of intercity transportation in the United States

  • In the most recent decade, scheduled air service on U.S. airlines was seven times safer than in the 1970s

  • From 2000-2012, U.S. airlines improved the on-time arrival rate from 72.6% to 81.9%

  • From 2000-2012, U.S. airlines reduced the flight cancellation rate sharply from 3.30% to 1.29%

  • Airfares are a bargain: From 2000-2012, U.S. CPI rose 33% while average domestic fare rose just 13%

  • Adjusted for inflation, the average round-trip domestic airfare fell 15% from 2000

  • 2007 domestic flight delays cost the United States approximately $31 billion

  • In 2012, the value of U.S. merchandise exported by air reached an all-time high of $427B

  • In 2012, U.S. exports of air-travel services reached an all-time high of $39.5B, driving a $5.1B trade surplus

  • In 2012, U.S. passenger and cargo airlines spent more than $50B on fuel, averaging 36% of operating expenses

  • In 2012, U.S. airlines posted the lowest annual rate of mishandled baggage ever recorded

  • FAA projects U.S. air travel demand to top 1 billion passengers in 2027

  • In 2012, US airlines flew 83.4 million passengers in scheduled international service - a record high

  • In 2012, the total value of merchandise exported from or imported to the United States by air exceeded $927 billion

  • In 2012, 7.15 teragrams of merchandise was exported from or imported to the United States by air

 Airports Q&A

Events section: man under wing refueling a plane

PubZone1
A4A provides a Q&A on airports in the United States.
 
Q: How many U.S. airports are there?
A: According to the 2011-2015 National Plan of Integrated Airport Systems (NPIAS), released by the U.S. Department of Transportation and the Federal Aviation Administration (FAA), there were over 19,700 airports in the U.S.  Of these, 5,170 airports are open to the general public with 503 airports offering commercial service.  The majority of public airports — 2,829 — are designated as reliever or general aviation airports versus commercial service.
 
NPIAS reports are available on the FAA Website.
 
Q: What are the different types of airports that are in operation?
A: The FAA defines airports in four general categories based on the type of airport activity:
  1. Commercial Service (CS) Airports are defined as public airports (i.e., open to the public) receiving scheduled service and having more than 2,500 enplaned passengers in a year. According to the NPIAS, there are 503 existing CS airports.
    a) “Primary Airports” are those CS airports with more than 10,000 annual enplanements. 382 of the 503 CS airports are considered primary airports.  They are further  defined as “hubs,” based on the percentage of the total annual U.S. enplanements:
      • Large Hubs (29): more than one percent
      • Medium Hubs (37): between 0.25 and 0.999 percent
      • Small Hubs (72): between 0.05 and 0.249 percent
      • Non-Hubs (244): no fewer than 10,000 passengers but up to 0.049 percent
    b) “Non-Primary Commercial Service Airports” are those CS airports with more than 2,500 but fewer than 10,000 annual enplanements.  These 121 airports account for fewer than 0.1 percent of annual enplanements.
  2. Cargo Service Airports are airports that, in addition to any other air transportation services that may be available, are served by aircraft providing air transportation of only cargo with a total landed weight of more than 100 million pounds.  "Landed weight" generally  means the weight of aircraft.  An airport may be both a commercial service and a cargo service airport.  The NPIAS does not separately identify the number of cargo service airports from commercial service.
  3. Reliever Airports are defined as high-capacity general aviation airports in major metropolitan areas. They must have 100 or more based aircraft or more than 25,000 itinerant operations per year. The average reliever airport has 230 based aircraft, which is 28 percent of the nation's general aviation fleet.  The NPIAS identifies 269 reliever airports.
  4. General Aviation (GA) Airports neither receive commercial service nor meet the Reliever airport criteria. To qualify for listing in the NPIAS, these airports must be open to the public, have at least 10 based aircraft, and be located within 20 miles of the nearest NPIAS airport.  There are 2,560 GA airports in the NPIAS.
Q: Where do those three-letter airport codes come from?
A: The three-letter codes used to identify airports are part of an industry standard which is updated and designated by the Federal Aviation Administration.
 
Q: What are the busiest airports in the United States?
A: According to the U.S. Bureau of Transportation Statistics, the five U.S. airports with the most passengers enplaned in 2010 were: Hartsfield-Jackson Atlanta International (ATL), Chicago O’Hare International (ORD), Los Angeles International (LAX), Dallas-Ft. Worth International (DFW), and Denver International (DEN) Airports.  For more information, check the Bureau of Transportation Statistics, consult Airports Council International - North America, or view the publications of the FAA Office of System Capacity.
 
The five U.S. airports with the most cargo in 2010 were: Memphis International (MEM), Louisville Standiford Field (SDF), Miami International (MIA), Los Angeles International (LAX), and Ted Stevens Anchorage International (ANC) Airports.
 
Q: What is the hub-and-spoke system? What advantages and challenges does it pose?
A: Some airports serve as transfer “hubs” for air carriers, facilitating efficient routing of passengers and cargo to certain destinations, or “spokes.” Small communities, in particular, benefit from this “hub-and-spoke” configuration because airlines can provide local service that might not be possible otherwise; hub-and-spoke operations connect small communities to most airlines' global networks and, in many cases, permit daily flights that offer passengers travel flexibility and convenience.
 
Like the railroad, trucking and shipping industries, the airlines have the capability to move people and products from place to place through “hubs” to different destinations throughout their own networks. This means that passengers often have the ability to travel to smaller cities without booking connections on multiple carriers. U.S. airlines also use their networks to extend next-day markets to remote and rural communities and to enhance inventory management and distribution logistics for businesses worldwide. Network service and the efficiency it enables is, of course, not unique to airlines. Telecommunications, rail and trucking are other good examples.
 
The hub-and-spoke model allows airlines to better match aircraft to customer demand. Large network airlines use strategically located airport hubs to efficiently transfer large numbers of passengers between regions. Airfreight companies do the same to move cargo as efficiently as possible. The use of hubs allows airlines to serve more markets with fewer airplanes and without forcing passengers and cargo to “interline” (i.e., transferring passengers and cargo to other aircraft and/or airlines).
 
Q: Who owns airports?
A: Most U.S. commercial service airports are typically owned by local or state governments, either directly or through an authority (a quasi-governmental body established to operate the airport).   While Congress established a "privatization program" in 1997 under which the airport ownership would be transferred to a non-governmental entity, no airports currently participate in this program.  However, The Branson Airport (in Missouri) became the first privately financed and operated commercial service airport in the United States when it opened in May, 2009.
 
Q: How are airports managed?
A: There are many different models of airport management, but U.S. airports are typically managed in one of three ways:
  1. management by a city, county or state. Examples of airports in this category include Atlanta, Pittsburgh, and Honolulu. In a few instances, such as Los Angeles and St. Louis, the airport is governed by an appointed commission which in turn reports to the City Council or Board.
  2. management by an airport authority. These entities are autonomous and have an appointed board that makes policy and financial decisions.  Orlando, Minneapolis, and San Diego are a few examples. Dallas/Fort Worth is a unique example which resulted from an agreement between the two cities. 
  3. Port Authority management. These airports are managed as part of a multi-modal entity. Examples include the Port Authority of New York and New Jersey (PANYNJ), Seattle, and Portland. The PANYNJ manages multiple airports (JFK, LaGuardia, Newark, Stewart and Teterboro) as well as trains, tunnels and seaports.
Some airports, regardless of the management structure above, may also operate multiple airports within its system, such as Los Angeles World Airports (which manages Los Angeles International Airport, Ontario International Airport, Palmdale Regional Airport, and Van Nuys Airport) and the Metropolitan Washington Airports Authority (which operates Washington Dulles and Reagan National Airports). 
 
The airport operator has management control of the airport, meaning that the operator has the right to operate and develop the airport. The airport operator is responsible for the airport’s long- and short-term planning, financial performance, maintenance, operation and compliance with numerous federal, state and local laws and regulations. Historically, airlines and airports have worked cooperatively to facilitate passenger needs and to achieve smooth and efficient operations for airlines.
 
Q: Are any U.S. airports controlled by a foreign entity?
A: No major commercial service airports in the U.S. are owned by an entity other than a unit of the U.S. government, a state or local government.
 
However, a few airports have contracted retail development and management to foreign firms.  For example, BAA USA manages the terminal concessions operation at Pittsburgh International Airport, Baltimore Washington International Airport, Boston Logan International Airport and Cleveland Hopkins International Airport.  BAA USA is a subsidiary of BAA plc, which owns and operates several airports in the United Kingdom.
 
Q: How do airports generate revenue?
A: Airport operators charge airlines for the use of runways and other facilities, as well as rent for any terminal space they occupy. Airports charge other tenants and service providers — such as restaurants and shops, parking, shuttle buses and rental car companies — for the space they occupy and/or the right to provide services on airport property.  In addition, most commercial service airports generate revenue by charging passengers a facility use fee known as the passenger facility charge (discussed below) and also receive federal grants.  These revenue sources make airports self-sufficient, generating virtually all the airport's revenues.   Other, less common revenue sources include the sale or lease of unused airport property and leasing unused airport property for other activities such as a golf course, or extracting minerals and materials from airport property. Only an extremely small portion of revenue at a few airports comes from the local tax base.
 
Q: You mentioned that some airports charge passengers PFCs. What are those, and what is that money used for?
A: Passenger Facility Charges (PFCs) were established by the Aviation Safety and Capacity Act of 1990 and must be approved by the FAA.  PFCs generally range from $3 to $4.50 per segment for up to four segments on a round-trip ticket (or $18.00 maximum per roundtrip), depending on the airports included in an itinerary. Airlines collect PFCs in the ticketing process and then remit them to the charging airport (the PFC amount typically appears in the fare details printed at the bottom of a ticket).

PFCs are imposed by airports to assist in airport development and expansion.  PFC revenue can be used to fund only specific capital improvement projects that will preserve or enhance safety, capacity or security; reduce noise; or increase air carrier competition.
 
PFC monthly reports can be obtained on the FAA Website.
 
Q: What portion of the taxes/fees on my ticket helps to support airports?
A: The portion of a ticket that is composed of taxes and fees depends upon the airfare and the passenger's itinerary. Airports receive a portion of the federal excise tax and segment tax included in the price of a ticket from the Airport Improvement Program (discussed in the next section).  As referenced previously, airports may also charge a PFC. 
 
For a more detailed look at taxes and related topics, see the Taxes and Fees section of our Economics/Statistics page.
 
Q: What airports receive financial support from the Federal Aviation Administration and where does that financial support come from? How much money is involved, and what is it specifically used for?
A: The FAA dispenses grants to airports for the Airport Improvement Program (AIP). The funds for these grants are derived from the Aviation Trust Fund, and are allocated by the FAA based on formulas and funding levels mandated by Congress. In FY09, the AIP program was funded at roughly $3.5 billion, of which approximately $1 billion was provided to general aviation or reliever airports versus commercial service airports used by the average traveling public.
 
To receive federal AIP grants, an airport must be listed in the NPIAS.  The NPIAS currently designates 3,411 existing and proposed public airports eligible for funding.   Commercial service airports receive entitlements based on the number of passengers enplaned and can also apply for discretionary grants.
 
Some AIP grants are distributed either through an entitlement program or through a discretionary program, but all grants must be used for infrastructure, not for operating expenses. AIP projects can address airport capacity, safety and security; they can also address noise conditions in the area immediately surrounding the airport. Most AIP grant funds are used for airfield improvements — construction and continued maintenance of runways and taxiways, airfield lighting, access roads, etc. — but they are also used for other federal mandates such as airport perimeter security, airport firefighting, snow removal equipment and replacement or enhancement of federal facilities such as instrument landing systems and control towers.
 
Q: Who pays for the design, construction and operation of airline terminals and related infrastructure (such as passenger parking lots) at major airports?
A: Local airport authorities typically take on the task of designing and constructing infrastructure such as airline terminals and parking lots. Airports normally will issue revenue bonds to fund construction of these improvements.  The debt is then repaid by the airlines, passengers and other users of the facilities through several funding sources such as landing fees, terminal rents, PFCs, concession revenues and parking fees. 
 
While responsibility for operation of most airport facilities falls to the airport, responsibility to fund airport operations falls to the airlines, passengers, and shippers. Operation and maintenance fees are typically charged back to tenants in the form of rent.  In those instances where passenger terminals are operated directly by airlines, the airlines pay the operating and maintenance expenses themselves. Except at some of the smaller commercial service airports, no general tax dollars are imposed for the construction, operation or maintenance of airport facilities.
 
Q: Who handles security at airports?
A: The Transportation Security Administration (TSA) is responsible for aviation security, including airport security. Airports and airlines cooperate with TSA in accordance with its rules and regulations. TSA has clear and rigorously enforced aviation security regulations affecting ramp and fuel facility access (including background checks), as well as screening of passengers, carry-on and checked baggage and cargo. TSA requires airports to provide security for airport perimeters or boundaries. Airport operators are responsible for securing appropriate local or airport law enforcement to meet this requirement.
 
Q: Who pays for TSA services?
A: TSA receives funding from three streams: 1) passengers pay a “9/11 Passenger Security Fee,” a ticket tax of $2.50 per flight segment with a maximum of $10 per round trip; 2) carriers pay an Aviation Security Infrastructure Fee, based on year 2000 domestic screening costs; and 3) TSA also receives direct taxpayer support. Of the sectors overseen by TSA (including rail and pipelines), however, only airlines and their customers pay special taxes for its support.
 
Q: Where does the FAA come in?
A: The Federal Aviation Administration (FAA), an agency of the U.S. Department of Transportation (DOT), establishes and enforces all regulations related to airport operations and safety. The FAA is responsible for the safety of civil aviation and is instrumental in establishing safety standards for airports and, of course, airlines.
The FAA is also involved in air traffic management, developing and operating a system of air traffic control (ATC) and navigation for both civil and military aircraft. It is also involved in other, related projects including the research, engineering and development of procedures needed for a safe and efficient system of air navigation and ATC. The FAA operates a network of airport towers, air route traffic control centers and flight service stations across the country. The FAA also develops air traffic rules, assigns the use of airspace and controls air traffic.
 
The FAA administers both the PFC and AIP Programs and monitors airport compliance with relevant federal laws and regulations. 


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