2.8.1 Notwithstanding the different definitions of what the direct impact is, there is much agreement on what usually occurs within the airport site. It usually involves a limited number of activities within the airport boundaries.
2.8.2 The on site direct impact relates to economic activities carried out on the airportwhich generate employment and revenue which would not otherwise have occurred in the area (City and County of Denver, 1987). Any activity, employment or revenue which would have occurred in the area in the absence of the airport cannot be included.
2.8.3 There is necessarily a substantial overlap between what activities occur on or off the airport site, and at any given airport some will occur both on and off. However, the City and County of Denver ( 1987) identify those which can be found on the site:-
airlines freight airlines freight forwarders general aviation airport administration flight catering security retail tenants government departments car parking
Under the definition of the direct impact adopted for this study the following activities should also be included:-
hotels restaurants car hire
ground transport of passengers
Observation has shown that all of these activities can be found on the airport at, for example, Gatwick.
2.8.4 The assessment of the on site impact at any one airport should be easy given the limited number of activities which will take place within its boundaries. However, providing a broad predictive measure of what the impact should be at all airports would prove to be a difficult task.
2.8.5 York Consulting’s report on the potential of Manchester Airport (1991) quotes Ecole National De L’Aviation Civile, stating that there is a usually a common relationship between the level of activity on an airport and its passenger throughput. This manifests itself in a ratio of on site jobs to throughput of 1000 jobs per million passengers per annum. The ratio is extremely widely used and has gained considerable credence.
2.8.6 The research contained in this study suggests that the use of this ratio on a universal basis may be misleading. A number of factors have been identified which will influence the level of activity on the airport site. These are as follows:-
1 The size of the airport site and the way in which airport boundaries are drawn. Manchester Airport, for example, is constrained by the
size of its site, resulting with many firms, which would otherwise be on the airport, occupying premises off site.
The role and function of the airport. Additional activity such as aircraft maintenance, and airline administration will only locate at an airport of a size above a certain threshold.
The maturity of the airport. As an airport grows it may reach
productivity thresholds beyond which the number of jobs per million passengers needed diminishes. For instance, an under used term inal will require almost as many staff as a terminal at capacity.
The location of the airport. Planning policies or environmental constraints may prevent the airport activity from 'overspilling' into the surrounding area.
The policy of the airport operator. This factor is becoming increas -ingly important. Three, not necessarily complimentary forces ap -pear to be at work:-
a High rents on the airport many force activities such as flight catering, freight distribution etc to locate on cheaper adjacent
non airport land.
b The privatisation of the airport operators in the UK, and their subsequent quest of profitability has seen the increasing diversification of airport activity. For instance BAA Pic is now a retail landlord at Heathrow for 250,000 sq ft of shop space, and at Gatwick for 152,000 sq ft (Estates Times Survey,
1993). This has been the tendency at airports across the world. Robbin and Netter (1992) detail a number of exam -ples;-
i Charles De Gaulle - antique sales and art exhibitions in the departures lounge.
ii Frankfurt Main -130 retail outlets, 3 cinemas and a bowling alley.
iii McCarran Las Vegas - casino in baggage claim area.
Authorities at Dallas Fort Worth have reviewed their airport development policies in view of the need to develop ancillary revenues to secure maximum returns for their shareholding airlines (Colorado National Banks).
c The need for profitability has seen in some cases the relin quishment of airport land and its development for other purposes. Lynton, the development arm of BAA Pic is seeking to develop airport sites when it can, wherever this is opera tionally feasible. The Beehive site, to the south of Gatwick Airport, is now allocated for a business park development.
2.8.7 Figures published by the US FAA (1987) suggest that whilst the 1000:1 mppa relationship is a useful one, there is a great amount of variation among US airports. FIGURE 5 shows that there is a positive relationship between throughput at US airports with throughput of over 4 million passengers per annum.
FIGURE 5
Passenger Throughput and Employment Levels at United States Air -ports 1986 Total On Site so Employment 20 30 M illio n s Passenger Throughput
Derived fromThe Regional Economic Significance of Airports United States Federal Aviation Administration 1986
However FIGURE 6 suggests that the 1000 jobs per million passenger does not hold true. Although the average may be close to 1000 jobs, the variation is so wide as to make the simple relationship meaningless.
FIGURE 6
Passenger Throughput and Employment Levels per Million Passengers at United States Airports 1986
Jobs per 2000 Million Passen gers Per Annum 1500 1000 - M illio n s Passenger Throughput
Derived from The Regional Economic Significance of Airports United States Federal Aviation Administration 1986