King County International Airport continues to be important economic hub for the county, region, and state

King County has just released an economic impact study about its airport that was conducted by Dr. William Beyers and Michael Babb from the University of Washington. It was based on a survey of the principal tenants at KCIA and on information they supplied regarding their subtenants.

The study reports that KCIA business activities generated more than 12,600 jobs in King County in 2008. It also generated $3.2 billion in sales, $0.729 billion in labor income, and $67 million in state and local tax revenues.

The airport has continued to support the local economy and between 2002 and 2008 has increased labor income by more than 60 percent and tax revenues by nearly 75 percent. Since the last study was done in 2002, the number of jobs at the airport and KCIA businesses has increased by 1,000.

KCIA is home base for more than 150 businesses, such as the Boeing Company, Galvin Flying Service, and UPS. Tenants include commercial airlines, air cargo companies, aircraft service and repair facilities, flight schools, charter operations, and helicopter services. The airport is also home to nearly 500 aircraft owners who rent hangars and tie-down spaces for recreational and business purposes.

The airport has been owned and operated by King County since 1928, but does not receive any general tax dollars. It is completely supported by tenant rental, landing, and fuel fees. In addition, the Federal Aviation Administration assists with major capital improvement projects, such as the main runway rehabilitation project completed last year.

The airport contributes significantly to the economic base of King County. The newest study reported a larger economic impact for KCIA than two previous studies completed in 1998 and 2002. The current overall impact of the airport of $3.2 billion in sales is double of what was reported in 2002.

This is largely driven by higher employment and increased growth in business activity in the aerospace sector. Fixed base operations (FBO), corporate air operations, airline, and air cargo activities have been stable, while “other” employment sectors have increased. There have been declines in retail, wholesale, and government activities at KCIA.

Authors of the study say the economic future for the variety of businesses at KCIA is not easy to forecast. The Boeing Company was operating at a higher level at KCIA last year than was the case in the 1998 and 2002, but that is not expected to continue in the near future due to aerospace industry cutbacks. The study reported that even though some KCIA tenants are experiencing a downturn in business due to the current recession, many of them are also optimistic about the development of their business in the long-run.
These economic studies allow the airport to track economic trends and how they relate to aviation development and operations, both locally and nationally.

Subscribe to DOT Dash

Sign-up to receive an e-mail text version of "Transportation Today," along with other significant DOT news by sending an e-mail to us with "Subscribe King County DOT Dash" in the subject line.