Economic benefit from Colo. airports estimated at $32B

Aviation drives billions of dollars in Colorado's economy and is directly tied to thousands of jobs in the state, millions each year in tax revenue for state and local governments, and millions of passengers and cargo shipments in and out of airports across Colorado.

The economic benefit from businesses, tenants and spending visitors at Colorado airports alone contributed $32.3 billion to Colorado's economy, and the industry employed 340,800 and generated $11.2 billion in payroll in 2007, according to an economic impact study by the Aeronautics Division of the Colorado Department of Transportation.

"[The study] is a real critical element for all Colorado airport operators, because there's a lot of need for airports, and the community sees them as an economic drain," said Dennis Heap, aviation manager of Front Range Airport.

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Every four years, the aeronautics division studies the economic impact of Colorado airports, compiling data from 60 general aviation airports, Denver International Airport and 14 other commercial airports in the state.

DIA is the nation's fifth-busiest airport, carrying 49.9 million passengers in 2007, up 5.4 percent from 2006.

Jobs associated with DIA business, tenants and passenger traffic contributed $30.2 billion to the state's economy, employed 217,459 and generated $7.1 billion in payroll in 2007, according to the study.

Of the state's three largest general aviation airports -- Front Range, Centennial and Rocky Mountain Metropolitan Airport -- Centennial had the greatest impact.

The Englewood-based airport contributed $897 million to the state's economy in 2007 -- which fell short of the airport's projections.

Robert Olislagers, executive director of Centennial, had forecasted that the airport's impact would exceed $1 billion in 2007. In 2003, Centennial's impact came in at $850 million.

"I was a little surprised that the numbers came in a little lower," Olislagers said. "We're still very optimistic about the future. I think the numbers are very impressive if you look at the overall impact on the state of Colorado. The number of people that are directly and indirectly employed in aviation puts this industry in the top of the business sector."

Centennial Airport businesses, tenants and visitors supported the jobs of 10,485 people and generated a $356.7 million payroll in 2007, according to the study.

To reach $1 billion, Olislagers is going to look for ways to improve service at Centennial to increase general aviation traffic and keep costs low for clients in order to retain and grow businesses.

Rocky Mountain Metropolitan Airport in Broomfield had a $363.2 million economic impact with related employment of 3,701 in 2007, the study said.

Front Range Airport, in unincorporated Adams County, more than doubled its impact to $134.4 million in 2007, from $62.6 million in 2003. That was below expectations.

"It falls short of where we thought we would be because we lost Aviation Technology Group," Heap said. Late last year, very-light jet (VLJ) manufacturer Aviation Technology Group, which employed more than 100 people at Front Range Airport, liquidated after it failed to secure financing to keep the company afloat.

ATG's liquidation happened around the same time that Adam Aircraft, which also produces carbon composite VLJ airplanes, folded due to lack of financing. Adam employed 500 in Colorado.

After liquidation, a Russian private equity firm called Industrial Investments, which manages assets worth $3 billion, bought the assets of Adam Aircraft for $10 million on April 9. Adam Aircraft is now being restructured at Centennial, and its new owners hope to bring back 100 employees within the next couple months.

Colorado aviation leaders hope new airplane manufacturers will open shop in Colorado, especially now that the state has lifted its so-called "Fly-Away Tax." Gov. Bill Ritter signed a bill May 20 that eliminated sales tax on airplanes sold in Colorado. Economic development officials hope that will attract more aviation business to the state.