Press Release
07/22/2020
For Immediate Release
Contact: Adam Hartzog 334-983-8100
DOTHAN, ALA.-
The Aviation Council of Alabama released a report on The Economic Impact of Alabama’s Six Major Commercial Service Airports. The report was prepared for The Aviation Council of Alabama by Dr. M. Keivan Deravi, Economic Research Services, Inc.
The report estimates that the total spending (output) impact of the Alabama Airports on the State’s economy amounted to approximately $5.0 billion in 2019. It is also estimated that approximately $1.7 billion of this total economic impact is solely due to the aviation and aviation related activities. Furthermore, the total employment and payroll impact attributable to Alabama Airports is approximately 69,200 direct and indirect jobs and over $2.6 billion of additional payroll to the economy of the State. The report found that direct total employment of the airports (aviation and aviation related entities) is estimated to amount to 16,200 jobs (on a full-time equivalent basis in 2019) and that the payroll of the entire on-site business operation is estimated to be $705.5 million.
The six Alabama commercial service airports and their auxiliary businesses collectively add a total of $948.1 million to the State’s economy in the form of non-payroll business transactions. In summary, the Airports are directly (not counting tourist spending and the induced and indirect impacts at any level) responsible for a total employment of 16,200 individuals and a total direct addition of $1.6 billion to the State’s economy.
The report breaks down the economic impact by individual airport so details regarding the impact of the Dothan Regional Airport can be reviewed easily. An example of this is shown below, but the complete series of statistics outlining direct total employment, payroll contributions and non-payroll contributions by Alabama’s six commercial airports can be seen inside Dr. Deravi’s report:
| Location | Employees | Payroll | Non-Payroll |
| Huntsville | 6,114 | $272,177,956 | $390,624,913 |
| Birmingham | 3,500 | $178,017,054 | $203,840,853 |
| Mobile | 5,820 | $220,590,320 | $341,537,416 |
| Montgomery | 300 | $12,000,000 | $5,000,000 |
| Dothan | 428 | $20,895,000 | $875,000 |
| Muscle Shoals | 38 | $1,883,125 | $6,243,463 |
Below is the estimate of total economic impact for the Dothan Regional Airport:
| Economic Impact | $93,696,217 |
| Payroll Impact | $50,679,457 |
| Employment Impact | 1,383 Jobs |
Return on Investment, Aviation:
| Direct Spending | $315,258,911 |
| Total Impact | $1,759,610,681 |
| ROI | 6.0 |
“With the release of this report on economic impact of Alabama’s six major commercial service airports, The Aviation Council of Alabama demonstrated that not only nationally, but inside Alabama, Airports are pivotal in economic development and sustainability”, said Adam Hartzog, Dothan Regional Airport Executive Director. “This report validates the need for development, expansion and improvement to Alabama airports so that we can continue to meet the needs of tomorrow’s business environment while substantially impacting Alabama’s economy.”
Attached: The Economic Impact of Alabama’s Six Major Commercial Service Airports on the State’s Economy Report
