Aug. 30--A recent study by state transportation officials shows that Mississippi's 73 airports generate more than $2.5 billion annually in economic activity.
But Stan Little, chairman of the year-old Southern Airways Express that operates out of the Olive Branch Airport, didn't need a study to tell him.
"A fellow called me and said that he was going to close a deal on some property that he was going to develop in Atlanta because he could fly nonstop from Panama City to Atlanta," Little said. "But do you know that he pulled out of the deal? He bought a multimillion dollar piece of property here in Olive Branch for a warehouse because he can now fly nonstop from his home in Panama City here, instead of going to Atlanta. Now that's an economic impact based on aviation."
The study conducted by the Mississippi Department of Transportation and the Mississippi Development Authority shows the reach of the impact of the airports on employment, payroll and spending. Additional economic impacts are linked to visitors and spending by visitors.
"This study indicates how substantial the aviation industry is to Mississippi," said MDOT Executive Director Melinda McGrath. "When all of the impacts of the state's 73 public-use airports are added together, over 20,000 jobs can be traced to the aviation industry, representing nearly $722 million in total wages."
Out of the 73 airports, eight are commercial service airports that accommodate more than 1.1 million passengers annually.
The eight airports include Golden Triangle Regional in Columbus/West Point/Starkville, Tupelo Regional and, locally, Tunica Municipal Airport.
According to the study, in 2012, the Tunica airport had 10 aviation-related tenants that employed 87 people. Also, more than 41,000 visitors traveled to Tunica.
Cliff Nash, executive director of the Tunica County Airport Commission, said the state study has been used as a tool by airports to bring awareness to how much of an economic engine airports are in the community.
But since the Tunica airport opened in 2003 largely to serve the area's casino industry, that engine has slowed, especially with the recent closure of casinos like Harrah's.
"In 2010, we had about 68,000 people filing through our hallways," Nash said. "Over the years, we have averaged going to about 36 different states and about 120 cities with the chartered flights. It has been as high as 947 charters a year. Currently, we are down to about 400 charters at this present time."
He said in 2009, Tunica County received $3.8 million in gaming revenue from people flying in to gamble at Harrah's.
"The local community receives a direct 4 percent revenue off the gross gaming from the people that they fly into here," Nash said. "So the more people we fly into the airport, the more money the local community receives."
Nash said the airport is now seeking to "diversify" the airport and expand beyond the chartered casino flights.
He said Covington Aircraft, based near Tulsa, Oklahoma, has leased space in one of the airport's hangars for their airplane repair business.
The airport is also building a second hangar to accommodate Covington, which plans to hire 20 people.
Nash added that a major department store leases space to store three of its corporate jets, and the military is using the airport for training.
While Tunica is considered one of the eight commercial airports in Mississippi, there are also 65 smaller, general aviation airports in the state including the Olive Branch Airport.
That airport is privately owned by Belz Enterpries. The facility has a control tower, 56 hangars and is home to 160 planes.
According to the study, 19,568 visitors used the airport in 2012. The airport has 49 employees.
Visitor-related spending supported an additional 51 full-time jobs for employees earning over $1 million annually, the study stated.
Indirect output from airport visitors who stayed in area hotels, shopped and ate at restaurants is estimated at $3 million, according to the study.
Little said he chose to operate his Southern Airways airline out of the Olive Branch facility because of the growth in the area.
"They are building I-269, which is going to run right by the airport and circle this city. That means the airport will be in the center of the growth," Little said.
He added that his airline is expanding, which will add to the economic impact of the airport on the community.
"On Oct. 1, we are going to offer nonstop flights from Olive Branch to Knoxville, Jackson, Mississippi, and Chattanooga," Little said. "From an economic development perspective, if a major company has a big meeting, they can now fly nonstop to the area instead of doing the meeting by teleconference. This means that bringing people to town is a huge economic impact because those people are eating in our restaurants and staying in our hotels."
Copyright 2014 - The Commercial Appeal, Memphis, Tenn.
