Here - Chicago Executive Airport

Chicago Executive Airport Economic Impact Study – 2007 

Page i 

Table of Contents 

Chapter 1 - Economic Impact Methodology ..........................................................................1-1 

1.1 Study Overview ..........................................................................................................1-1 

1.2 Airport Activities..........................................................................................................1-2 

1.3 Impact Analysis ..........................................................................................................1-3 

1.3.1 Direct Impacts..................................................................................................1-3 

1.3.2 Indirect Impacts ...............................................................................................1-5 

1.3.3 Multiplier and Total Impacts.............................................................................1-6 

1.4 Report Outline ............................................................................................................1-8 

Chapter 2 - Demographic & Economic Trends .....................................................................2-1 

2.1 Population ..................................................................................................................2-1 

2.2 Employment ...............................................................................................................2-2 

2.3 Income........................................................................................................................2-4 

2.4 Gross State Product...................................................................................................2-6 

Chapter 3 - Chicago Executive Airport Economic Impacts..................................................3-1 

3.1 Direct Impacts ............................................................................................................3-1 

3.2 Indirect Impacts..........................................................................................................3-3 

3.3 Multiplier and Total Impacts .......................................................................................3-5 

Chapter 4 - Airport-Related Tax Impacts ...............................................................................4-1 

4.1 Income Taxes.............................................................................................................4-1 

4.2 Personal Property Taxes and Registration Fees........................................................4-1 

4.3 Business Taxes..........................................................................................................4-2 

4.4 Total Taxes.................................................................................................................4-3 

Chapter 5 - Business User Impacts and Other Benefits.......................................................5-1 

5.1 Aviation-Dependent Industries ...................................................................................5-1 

5.2 Typical Value-Added Impacts.....................................................................................5-2 

5.2.1 Previous Study Business User Surveys ..........................................................5-3 

5.2.2 Chicago Executive Airport Business User Survey...........................................5-4 

5.3 Business Aviation at Chicago Executive Airport.........................................................5-4 

5.4 Other Qualitative Benefits ..........................................................................................5-5 

5.5 Business User Impacts and Other User Benefits Summary.......................................5-6 

Appendix 

Wilbur Smith Associates November 2007

Chicago Executive Airport Economic Impact Study– 2007 

Page ii 

Exhibits 

No. Title Page 

1-1 Airport Location ..............................................................................................................1-2 

1-2 Based Aircraft and Aircraft Operations by Airport ..........................................................1-2 

1-3 Economic Impact Types.................................................................................................1-3 

1-4 Airport Tenants and Through-the-Fence-Operators.......................................................1-5 

1-5 Components of Economic Impact Types .......................................................................1-6 

1-6 Economic Impact Types and Measures .........................................................................1-8 

2-1 Historical Population Trends, 1970-2006 .......................................................................2-1 

2-2 Forecasted Population Trends .......................................................................................2-2 

2-3 Industry Employment, 2006 ..........................................................................................2-3 

2-4 Industrial Location Quotient Based on Employment, 2006 ............................................2-4 

2-5 Industry Average Earnings, 2006...................................................................................2-5 

2-6 Mean Household Income ...............................................................................................2-5 

2-7 Illinois Gross State Product by Industry .........................................................................2-6 

3-1 Economic Impact Summary ...........................................................................................3-1 

3-2 Direct Economic Impacts ...............................................................................................3-2 

3-3 Indirect General Aviation Visitor Impacts .......................................................................3-4 

3-4 Impact Breakdown by Measure and Type......................................................................3-5 

4-1 Real Property Tax Assessed Value and Amount Paid...................................................4-2 

4-2 Business Taxes by Type ................................................................................................4-3 

4-3 Total Taxes by Type.......................................................................................................4-3 

5-1 Business Location Factors and GA Business Use.........................................................5-3 

5-2 Business User Survey Firm Characteristics...................................................................5-4 

5-3 Qualitative Activity Benefits............................................................................................5-6 


Chicago Executive Airport Economic Impact Study–2007 Page 1-1 

Chapter 1 - Economic Impact Methodology 

The economic impact of the Chicago Executive Airport is calculated using a methodology that 

evolved over the past two decades and is nationally recognized as the standard for conducting 

economic impact studies of airports. The methodology is consistent with that advocated by the 

Federal Aviation Administration (FAA), and explicitly follows the FAA-suggested procedures. 1 

The study also uses the IMPLAN input/output model with multipliers specific to the Cook and 

Lake County, Illinois. 

The study methodology is an "impact" approach rather than a "transportation benefits" 

approach. Therefore, the study does not explore the efficiencies, the productivity, or the travel 

benefits from, air travel. Rather, it measures the importance of the airport as an industry, in 

terms of the employment and earnings it generates, and the locally produced goods and 

services which it consumes. All impacts are expressed in annual terms, with all impact 

calculations based on the latest year for which data are available (generally for the year 2007). 

1.1 Study Overview 

Chicago Executive Airport serves the general and business aviation sector. With approximately 

300 based aircraft and over 100,000 aircraft operations annually, Chicago Executive is the third 

busiest airport in the Chicago area, after O'Hare International and Midway. Originally a modest 

grass strip created by an early aviation enthusiast, the airport was known as Gauthier's Flying 

Field in the early 1920’s. In the 1928, the field was renamed Pal-Waukee, after the two highways 

that formed its southern and eastern boarders. The airport was purchased in 1953 by George 

Priester who expanded the facility until it was purchased by the Village of Wheeling and the City of 

Prospect Heights with FAA and State funding in 1986. Renamed Chicago Executive Airport in 

2006, to more accurately reflect its regional importance, the facility now covers over 400 acres 

and is a key building block and powerful economic engine for both communities as well as the 

surrounding area. 

This study was sponsored by the Chicago Executive Airport with the purpose of developing an 

unbiased, thorough quantification of the airport’s economic impact on the airport’s service region. 

To do so, the airport operator and tenants were surveyed regarding number of people employed 

and typical annual operating expenditures. Further, corporate users were identified to understand 

nature and magnitude of major corporate users who depend on the airport. The airport location is 

shown on the map in Exhibit 1-1. Lastly, this report also provides estimates of state and local tax 

collections associated with airport activity. 

1 “Estimating the Regional Economic Significance of Airports,” Federal Aviation Administration, Washington, DC, 1992. 



Exhibit 1-1 

Airport Location 

Chicago Executive Airport Economic Impact Study 

Source: www.chiexec.com 

1.2 Airport Activities 

Chicago Executive Airport is a major general aviation airport catering to the corporate aviation 

user. In doing so, the airport alleviates the demand for corporate activity at O’Hare International 

by providing quick, efficient airside and groundside access. The associated 112,911 annual 

aircraft operations and the 294 based aircraft are presented by type in Exhibit 1-2. 

Exhibit 1-2 

Based Aircraft and Aircraft Operations – 2007 


Aircraft Operations 

Based Aircraft 

Type Number Type Number 

Air Taxi 12,126 Single Engine 192 

Itinerant 75,336 Multi-Engine 45 

G.A. Local 25,410 Jet 52 

Military 39 Helicopter 5 

Total Operations 112,911 Total Aircraft 294 

Source: Chicago Executive Airport 



1.3 Impact Analysis 

The airport economic impacts associated with Chicago Executive Airport are generated in three 

ways: Direct, Indirect, and Multiplier Impacts. Combined, the three impact types yield an airport’s 

total economic impact, as shown in Exhibit 1-3. The following discussion describes these impact 

types and how they are calculated. In addition, the discussion describes the three impact 

measures – jobs, earnings and economic activity. 

Exhibit 1-3 

Economic Impact Types 


+ 

Direct Impacts 

+ 

+ 

Indirect Impacts 

Multiplier Impacts 

= 

Total Impacts 

1.3.1 Direct Impacts 

The "Direct" impacts include local expenditures at or near an airport by firms involved in the 

provision of aviation services, such as the airlines, fixed-base operators, aviation component 

manufacturing firms, flight and ground schools, the control tower, etc. The direct impacts 

associated with the provision of aviation services consist of three general classifications: 

1. Direct Payroll – The annual gross payroll for any employed person at the airport whose job 

is attributable to the tenant firm. When possible these figures also include payroll taxes, 

unemployment insurance and other related payroll expenses. 

2. Capital Expenditures – Investment at or near the airport by either the airport operator or by 

the airport's public and private tenants associated with buildings, structures, runway 

improvements, terminals, etc. Since capital expenditures fluctuate significantly by year, a 

ten-year average is used. Aircraft purchases, however, are excluded since they are not 

manufactured locally and represent little, if any, local impacts. 

3. Operating Expenses – The annual operation costs of the airport operator, businesses, 

tenants and agencies at the airport. These costs include utilities, repair, maintenance, 

supplies, legal and professional services, etc. Operation expenses made by one entity at 

the airport to another airport entity are excluded. For example, tenant rent, leases, fees, 

etc. made to the airport operator are excluded, because these operator revenues are paid 



out to operator employees and other operator expenses. To include such expenditures 

under both the tenant and the airport operator would be to “double-count” the 

expenditures. 

Calculation of the "direct" impacts comprises a four-step process: 

1. Airport Operator Data Request – Background information from the Airport was obtained 

regarding capital expenditures, aircraft operations, etc. In addition, a tenant listing – both 

on-airport and through-the-fence operation was obtained including contact name, address 

and phone number. Airport operator information concerning jobs, revenues and 

expenditures also was obtained, as was financial operating data included information 

regarding revenues, expenses, and rents, fees and taxes paid by airport tenants. 

2. Airport Surveys – With the information provided by the Airport, a list was developed of 

airport tenants. Surveys were developed and either mailed out or distributed in person to 

all tenants and related firms. The surveys requested information on employment, 

operations, revenue, and expenditures. A copy of the survey form and letter of 

introduction is presented in the Appendix. 

3. Airport Visits – The Consultant also visited the Airport, interviewing the airport operator 

and tenants. Previously collected information was verified and missing information was 

collected. This provided insight into the Airport's overall operation, layout, and the 

economic roles, which the various entities play. 

4. Direct Impact Calculations – The collected data was verified to check reasonableness, 

e.g., payroll per employed person, etc. In doing so, the impacts were compared to 

benchmarks established through other airport impact studies. 

Tenant List – A list of all aviation-related tenants and through-the-fence operators evaluated in 

the analysis is presented in Exhibit 1-4. All of the on-airport aviation tenants responded to the 

survey or were interviewed, as did all but three of the through-the-fence aviation-oriented 

businesses. Conversely, corporate operators are often reluctant to participate in impact 

surveys. At Chicago Executive this was also witnessed to some degree, especially from smaller 

operators. However, the larger operators were quite responsive and helpful in gaining insight to 

the relative size and nature of non-responding corporate tenants and general airport impacts. 

Airport data on jet and piston aircraft by corporate operator also provided another useful tool 

used to estimate the impact of non-responding corporate operators. Combined, the different 

perspectives of the major corporate operators and the airport management representatives, 

combined with the extensive airport data provided a sound basis for generating a 

comprehensive understanding of the direct impacts associated with firms located at the airport 

as well as the indirect visitor impacts associated with airport operations. 



Exhibit 1-4 

Airport Tenants and Through-the-Fence-Operators 


Aviaton 

Corporate 

On-Airport Tenants 

Chicago Executive Airport Gov't C.F. Industries 

FAA (Control Tower) Gov't Maranatha Ministries 

U.S. Customs Gov't Newberg 

Signature Flight Support FBO Potomac 

Atlantic Aviation FBO Lake Capital 

Northern Illinois Flight Center Air Taxi PAS-Keller Systems 

Preister Aviation Air Taxi Klein Tools 

Windy City Flyers Air Taxi/Training Woodhill 

American Flyers Training CED 

Boram Aviation Training Allmetal 

Palwaukee Flyers Training SG III 

Chicago Executive Srv. Center Maint Indeck/IPOII 

North American Jet Maint. Maint/Air Taxi EJM 

Duncan Aviation Maint DS Advisors 

Landmark Aviation Maint Alpha Mike Aviation 

Hertz Car J&S Aviation 

Flight World Limited Flying Club MMA Investments 

Paragon Flying Club Flying Club McLennan Companies 

20 Other Corporate @ Atlantic Aviation 

Off-Airport Firms and Through-the-Fence Operators 

Great Bear Aviation Air Taxi Alberto Culver 

Propeller Service, Inc. Maint Allstate 

Avis Car Duchossois 

Enterprise Car Henry Crown (Including HSBC) 

T.C. Becks Catering JCG Aviation 

Georgies Catering McClean Fogg 

94th Aero Squadron Restaurant Motorola 

Phil Young 

Redleaf Management 

1.3.2 Indirect Impacts 

"Indirect" impacts reflect expenditures made by airport users in the impact area. These typically 

consist of expenditures by visitors at hotels, restaurants, etc. General aviation visitor expenditures 

were calculated in a manner consistent with the methodology advocated by the Aircraft Owners 

and Pilot Association (AOPA). The methodology estimates the number of visitors arriving at the 

airport and multiplies the number of visitors by an estimated average expenditure rate per visitor. 

Visitors are defined as persons who reside in places external to the airport's region of impact who 

arrive via Chicago Executive Airport. The average expenditure per visitor (e.g., lodging, food, 

retail etc.), persons per party and average length of stay, were compiled from a transient pilot 

survey, discussions with airport management, corporate tenants, fixed-base-operators and from 



previous studies. The Airport provided information on registered aircraft operations as well as 

insight on the estimated share of itinerant and air taxi aircraft operations conducted by local 

residents versus regional visitors. 

1.3.3 Multiplier and Total Impacts 

The primary direct and indirect economic impacts represent increases in final demand in the 

airport impact areas. Such final demand increases, however, do not represent the total 

economic impact value attributable to an airport. Rather, a secondary or multiplier impact also 

occurs. The components of these three impact types are shown in Exhibit 1-5. The secondary 

multiplier effect is measured using IMPLAN 2 multiplier coefficients for the primary impact areas, 

(i.e., Cook and Lake Counties). These multipliers are based on the U.S. Regional Input/Output 

tables, as developed by the U.S. Department of Commerce, Bureau of Economic Analysis. 

Exhibit 1-5 

Components of Economic Impact Types 


Aircraft Services 

Airport Mgmt & Oper. 

Air Taxi/Charter 

Car Rental Agencies 

Corporate Flight Ops. 

Fixed-base Operator 

Government Oper. 

Other Tenants/Users 

DIRECT 

IMPACTS 

INDIRECT 

IMPACTS 

General Aviation Visitors 

Corporate Aviation Visitors 

MULTIPLIER 

IMPACTS 

Intermediate Suppliers 

Induced Expenditures 

TOTAL 

IMPACTS 

Economic Activity 

Earnings 

Jobs 

2 The Minnesota Implan Group’s Regional Input Output Modeling System (IMPLAN) 



Multipliers trace money flows through a regional economy. The longer money circulates in the 

region, the better-off the region is and the higher the multiplier. The multiplier exemplifies, through 

supplier expenditures and the respending of earnings, that many people and businesses benefit, 

even those who do not use or directly serve the airports. 

For example, if an airline employee earns $100 at the airport, and uses it to buy $100 worth of 

groceries, he is better off by $100 because he has $100 worth of groceries, and the local grocer is 

better off because he has the $100. The grocer then pays his employees, the delivery truck 

operator, etc. all of whom then are slightly better off due to the airport. The multiplier traces this 

flow of funds until the money ultimately leaks to places outside the impact area, or reaches the 

source of its raw material. Therefore, the larger and more developed the impact area, the longer 

the money remains in the regional economy, resulting in a higher average multiplier. 

Secondary Multiplier Model – To estimate the multipliers, The Minnesota Implan Group’s Regional 

Input-Output Modeling System (IMPLAN) is used. Final demand expenditures (i.e., primary direct 

and indirect impact values) are categorized into industrial codes and applied to a variety of 

different multiplier classifications, depending on the nature of the final demand activities. The size 

of the multipliers varies depending on the study area’s size (population) and economic base. 

Typically, the larger and more developed the impact area, the longer the money re-circulates in 

the regional economy, resulting in a higher multiplier. For this study, multipliers for the Illinois 

Counties of Cook and Lake are used. 

Three Measures of "Economic Impact" – The IMPLAN model provides three measures of the 

total economic impact attributable to the airports: Economic Activity (Output), Earnings (Payroll), 

and Jobs. The total impacts include the aviation sector itself (i.e. the "direct and indirect 

impacts"), as well as the "multiplier effect" of the aviation sector. The impacts are estimated for 

the Year 2007. All three indicators of economic impact are useful, however the monetary 

measures should not be added together, as explained below: 

• Economic Activity – The value of the aviation primary expenditures (aviation or airport 

service), plus the secondary multiplier effect (the sum of all of the intermediate goods and 

services needed to provide aviation services, plus the induced impacts of increased 

household consumption). Total economic activity equals the sum of intermediate demand, 

consumption demand, government demand, investment demand, and net export demand. 

Because Economic Activity includes intermediate demand it should not be compared to 

Gross State Product. 

• Earnings – The primary and secondary wages and salaries, other labor income and 

proprietors’ income paid to all employed persons that deliver final demand output and 

services. Earnings Impacts are part of Economic Activity, so they should not be added to 

the Economic Activity impact. 

• Jobs – The number of employees who provide aviation service or manufacture aircraft, 

plus the aviation-oriented share of those that are employed in sectors that support the air 

passenger (hotels, restaurants, etc.), plus those employed in the industries included in the 



multiplier effect impacts. Jobs are expressed in terms of annual “full-time-equivalents” 

(FTEs), where two part-time jobs are represented as one full-time job. 

These three impact "measures" and the three impact "types" explained earlier are 

inter-related. Specifically. the economic activity, earnings and job impact measures comprise 

direct, indirect, and multiplier impact types. The interaction of the three impact measures 

and their three impact types are presented below in Exhibit 1-6. The total economic activity, 

earnings and jobs impact measures presented in Chapter 3 comprises these three impact 

types. 

Exhibit 1-6 

Economic Impact Types and Measures 


Impact Measures 

Economic 

Activity Earnings Jobs 




T o t a l I m p a c t s 

Impact Types 

1.4 Report Outline 

Background demographics and economic trends for the Illinois are first summarized in Chapter 2. 

The Chicago Executive Airport economic impacts are described in Chapter 3. Chapter 4 

summarizes the local and state-related tax impacts associated with the Airport. Lastly, Chapter 5 

addresses the nature and magnitude of the businesses that depend on the airport for 

transportation. 



Chapter 2 - Demographic & Economic Trends 

Various industries in the State of Illinois, and specifically within the greater Chicago area, are 

dependent on air transportation for the sustainability of current operations and for expanding 

market access to customers, suppliers, and business collaborations. Air transportation enables 

industries and specific companies to become and remain competitive in an economic 

environment that persistently compels an increasingly quicker and more efficient exchange of 

goods, services, and ideas. This section summarizes recent trends in population, current 

employment, and household income levels. This data provides the context from which to 

compare the airport economic impact findings presented in the subsequent sections. 

2.1 Population 

Cook County is, by far, the largest populated county in the State of Illinois and the second 

largest populated county in the United States, next only to Los Angeles County, California. In 

fact, with nearly 5.3 million people in 2006, Cook County has a population greater than the 

population of 31 states. 3 Chicago is located within the entirety of Cook County and contributes 

to the large population. However, Cook County population declined slightly (3.7%) from about 

5.49 million in 1970 to 5.29 million in 2006, as shown in Exhibit 2-1. Conversely, Lake County, 

Illinois, which is located between the borders of Cook County and the State of Wisconsin, nearly 

doubled over the same historical time period, growing from about 382,000 to 713,000 people. 

Exhibit 2-1 

Historical Population Trends (1970 to 2006) 


Population Year 

Change 

Geography 1970 1980 1990 2000 2006 1970-2006 

Study Area 

Cook County 5,493,766 5,253,628 5,105,067 5,376,741 5,288,655 -3.7% 

Lake County 382,638 440,388 516,418 644,356 713,076 86.4% 

Subtotal 5,876,404 5,694,016 5,621,485 6,021,097 6,001,731 2.1% 

State of Illinois 11,110,285 11,427,409 11,430,602 12,419,293 12,831,970 15.5% 

Source: 1990 Census of Population and Housing, Population and Housing Unit Counts, and 2000 Census 

Between 2000 and 2030, population in the Cook-Lake County study area is expected to grow, in 

nearly 14% while the State of Illinois is expected to grow at almost 22%, as shown in Exhibit 2- 

2. Lake County is expected to grow more quickly than Cook County and Illinois, due lack of 

physical room for expansion due to high population density. 

3 US Census Bureau: Annual Estimates of the Population for the United States, Regions, and States and 

for Puerto Rico: April 1, 2000 to July 1, 2006 



Exhibit 2-2 

Forecasted Population Trends (1970 to 2006) 


Population Year 

Change 

Geography 2000 2010 2020 2030 2000-2030 

Study Area 

Cook County 5,386,673 5,472,429 5,707,832 5,990,243 11% 

Lake County 645,503 762,918 820,250 873,024 35% 

Subtotal 6,032,176 6,235,347 6,528,082 6,863,267 14% 

State of Illinois 12,440,846 13,279,091 14,316,487 15,138,849 22% 

Source: Illinois Dept. of Commerce and Economic Opportunity; Business Assistance, Facts & Figures, Population Projections 

2.2 Employment 

The study area employed 2.5 million in year 2006, half of all private sector employees in the 

State of Illinois, as shown in Exhibit 2-3. Major study area industries include health care and 

social assistance, manufacturing, and retail trade. 

Industry Concentration – Location quotient is a measure of the relative industrial concentration 

of a specific geographic or economic region in comparison to a broader base geographic or 

economic region. It is calculated as the ratio of a specific industry’s share of the local economy 

to the respective industry’s share of the base economy typically calculated by the number of 

persons employed in the specified industry to total employment within the economy. An 

industry with a location quotient less than 1 has a share of the local economy proportionally 

smaller to the same industry share in the base economy, indicating that the local economy is a 

net importer of the goods and services of that industry from the base economy. An industry with 

a location quotient greater than 1 has a share of the local economy proportionally larger than 

the same industry share in the base economy. A location quotient greater than one indicates 

that the local production of an industry generally exceeds the local demand for the goods and 

services of that industry (given the assumption that the demand for the goods and services of 

that industry in proportion to the entire economy are the same at both the local and base 

geographic area) allowing the excess production to be exported to the geographic or economic 

base area. 



Exhibit 2-3 

Industry Employment (2006) 


Study Area 

State of 

Industry Cook Lake Subtotal Illinois 

Total Private Sector 2,224,051 289,669 2,513,719 5,021,458 

Agriculture, Forestry, Fishing & Hunting 553 na 553 15,877 

Mining 919 na 919 10,156 

Construction 96,864 17,982 114,846 278,318 

Manufacturing 245,100 50,083 295,183 683,877 

Wholesale Trade 115,911 21,971 137,882 308,803 

Retail Trade 239,224 42,891 282,115 623,426 

Transportation & Warehousing 117,557 4,708 122,265 221,684 

Utilities 4,109 469 4,578 23,080 

Information 59,172 4,520 63,692 116,638 

Finance & Insurance 171,131 17,057 188,188 314,484 

Real Estate & Rental & Leasing 48,102 4,043 52,145 85,076 

Professional, Scientific & Technical Services 201,035 21,703 222,738 358,157 

Management of Companies & Enterprises 46,966 7,725 54,690 94,776 

Administrative & Waste Services 186,100 25,799 211,899 403,551 

Educational Services 70,905 5,699 76,604 115,220 

Health Care & Social Assistance 290,062 26,928 316,990 635,840 

Arts, Entertainment & Recreation 34,979 7,568 42,547 83,071 

Accommodations & Food Services 196,626 21,562 218,188 445,708 

Other Services 94,829 8,670 103,499 196,729 

Unclassified 3,905 291 4,196 6,988 

Source: Illinois Department of Employment Security: LMI Source, Quarterly Census of Employment and Wages (ES 202) 

Exhibit 2-4 depicts the industrial location quotient for the study area and is sorted by 

decreasing industrial concentrations. Service industries are heavily concentrated in the study 

area as educational services, professional, scientific, and technical services, financial and 

insurance services, information services, other services, and administrative and waste services 

all have location quotients greater than 1, at 1.33, 1.24, 1.20, 1.09, 1.05, and 1.05, respectively. 

Real estate, company management, transportation and warehousing, and arts, entertainment, 

and recreation industries are also concentrated industries in the study area relative to Illinois. 

Those three industries that are very ill concentrated in the two counties study area are the 

utilities, mining, and agricultural, forestry, and fishing industries. 



Exhibit 2-4 

Industrial Location Quotient based on Employment (2006) 


Study Area 

Industry Cook Lake Subtotal 

Educational Services 1.39 0.86 1.33 

Professional, Scientific & Technical Services 1.27 1.05 1.24 

Real Estate & Rental & Leasing 1.28 0.82 1.22 

Unclassified 1.26 0.72 1.20 

Finance & Insurance 1.23 0.94 1.20 

Management of Companies & Enterprises 1.12 1.41 1.15 

Transportation & Warehousing 1.20 0.37 1.10 

Information 1.15 0.67 1.09 

Other Services 1.09 0.76 1.05 

Administrative & Waste Services 1.04 1.11 1.05 

Arts, Entertainment & Recreation 0.95 1.58 1.02 

Health Care & Social Assistance 1.03 0.73 1.00 

Accommodations & Food Services 1.00 0.84 0.98 

Retail Trade 0.87 1.19 0.90 

Wholesale Trade 0.85 1.23 0.89 

Manufacturing 0.81 1.27 0.86 

Construction 0.79 1.12 0.82 

Utilities 0.40 0.35 0.40 

Mining 0.20 na 0.18 

Agriculture, Forestry, Fishing & Hunting 0.08 na 0.07 

Source: Illinois Dept. of Employment Security: LMI Source, Quarterly Census of Employment and Wages (ES 202) 

Unemployment Rate – The annual average adjusted unemployment rates for the United States 

was 4.6% in 2006. Illinois unemployment rate of 4.5% is just slightly below the national rate. 

Lake County’s unemployment rate of 4.2% is below both the national and state unemployment 

rates, and Cook County’s at 4.7% is slightly higher. Weighted more heavily by greater 

employment in Cook County than Lake County, the two counties study area exhibited a 4.6% 

rate, equal to the national rate and slightly higher than the state rate. 

2.3 Income 

Average earnings, by industry in year 2006, are higher within the two county study area than in 

the State of Illinois as a whole for all industries with the exception of farming, see Exhibit 2-5. 

Total average earnings across all industries are just over $60,500 and $51,100, respectively. 



Exhibit 2-5 

Industry Average Earnings (2006$) 


Study Area 

State of 

Industry Cook Lake Subtotal Illinois 

Total Average Earnings $60,500 $60,700 $60,500 $51,900 

Farm 11,300 15,900 13,700 16,300 

Agricultural Services, Other 26,900 33,300 29,100 25,500 

Mining 107,400 65,700 98,200 78,000 

Construction 74,200 60,700 72,100 61,700 

Manufacturing 85,900 98,300 87,800 76,800 

Transport, Comm. And Public Utilities 68,600 66,900 68,500 65,900 

Wholesale Trade 78,600 103,600 83,100 73,100 

Retail Trade 27,600 32,400 28,300 24,800 

Finance, Insurance, and Real Estate 83,700 65,700 81,700 64,800 

Services 53,500 49,000 53,000 46,300 

Federal Civilian Govt 93,800 86,000 92,900 89,700 

Federal Military Govt 43,600 66,100 58,000 57,300 

State and Local Govt 61,900 56,300 61,300 53,900 

Source: Woods & Poole Economics, Inc., 2006 

Illinois exhibits higher mean household income than the nation, at about $97,000 and $90,000, 

respectively. Cook and Lake Counties both have higher mean household income than the State 

at almost $106,000 and $149,000, respectively, with a combined mean household income of 

$110.5 thousand, see Exhibit 2-6. 

Exhibit 2-6 

Mean Household Income (2006) 


Geography 2006 

Cook County $105,728 

Lake County $148,897 

Counties Sum $110,504 

Illinois $97,056 

United States $90,285 

Source: Woods & Poole Economics, Inc., 2006 4 

4 Woods & Poole Economics, Inc. Washington D.C. Copyright 2006. Woods & Poole does not 

guarantee the accuracy of this data. The use of this data and the conclusions drawn from it are solely the 

responsibility of Wilbur Smith Associates, Inc. 



2.4 Gross State Product 

Real Gross State Product (GSP) in Illinois is shown by industry in Exhibit 2-7. Between 1999 and 

2006, overall GSP grew by 12% with the largest growth occurring in the retail trade and 

information sectors, 28.8% and 28.5%, respectively. Transportation and warehousing was the 

third largest growth sector, at 24.1%. 

Exhibit 2-7 

Illinois Gross State Product by Industry (Million 2000$) 


Industry 1999 2000 2001 2002 2003 2004 2005 2006 Change 

Total GSP 452,859 464,194 464,910 466,150 479,293 488,016 492,341 507,037 12.0% 

Ag., Frstry., Fish., Hunt. 1,545 2,090 2,038 2,516 2,889 3,663 1,897 1,852 19.9% 

Mining 1,226 1,151 1,149 1,063 1,017 948 910 889 -27.5% 

Utilities 9,808 10,428 9,679 10,073 10,361 10,375 10,591 10,597 8.0% 

Construction 20,472 20,685 20,621 20,603 20,094 19,281 19,314 19,384 -5.3% 

Manufacturing 66,420 68,990 64,983 64,633 65,551 70,718 70,599 72,069 8.5% 

Wholesale trade 33,192 33,419 35,291 35,254 35,472 35,559 36,033 36,539 10.1% 

Retail trade 25,704 27,445 29,367 29,769 30,499 31,021 32,073 33,109 28.8% 

Trans. & Warehousing 16,476 17,149 17,014 17,204 17,159 18,764 19,328 20,444 24.1% 

Information 18,728 17,822 18,811 18,942 19,027 21,141 22,898 24,073 28.5% 

Finance &Insurance 43,429 45,362 45,469 44,072 46,816 47,269 45,352 47,321 9.0% 

Real Estate 55,229 57,341 58,550 58,843 58,111 59,926 61,090 65,380 18.4% 

Prof. & Tech. Serv. 36,761 38,587 38,479 37,503 37,990 40,313 42,858 44,365 20.7% 

Management 10,751 9,571 9,649 10,650 10,900 11,670 11,386 11,510 7.1% 

Admin. & Waste Serv. 14,952 13,930 13,163 12,920 13,925 14,149 14,730 15,350 2.7% 

Educational Services 3,976 4,019 3,995 4,007 4,198 4,286 4,342 4,482 12.7% 

Health Care & Social Assis. 25,973 26,775 27,461 28,056 29,049 29,592 30,547 31,370 20.8% 

Arts, Entertnmnt, & Rec. 3,858 3,854 4,013 4,291 4,328 4,277 4,273 4,319 11.9% 

Accom. & Food Serv. 10,203 10,436 10,149 10,024 10,306 10,719 10,994 11,362 11.4% 

Other Services 11,244 11,102 10,744 10,921 11,053 10,883 10,718 10,780 -4.1% 

Government 43,056 44,037 44,432 44,947 50,455 44,577 44,201 44,105 2.4% 

Source: Bureau of Economic Analysis, U.S. Chamber of Commerce: Regional Economic Accounts 



Chapter 3 - Chicago Executive Airport Economic Impacts 

The detailed analysis of aviation at Chicago Executive Airport indicates the combined annual 

economic impacts of the airport’s operation, visitors and multiplier impacts totals over $330.8 

million in economic activity, of which $124.2 million is paid in earnings to 2,426 jobs. These 

impacts result from the direct provision of aviation services, the indirect use of aviation services, 

and the multiplier effect of subsequent transactions in the Chicago land area economy. The 

impact flow is summarized in Exhibit 3-1 and is detailed in the ensuing chapter. 

Exhibit 3-1 

Economic Impact Summary 



$128,075,700 


$17,673,700 


$185,026,800 

Economic Activity 

Earnings 

Jobs 

Total Impacts 

$330,776,200 

$124,223,800 

2,426 

3.1 Direct Impacts 

The 73 firms and agencies located at the airport that provide aviation services and equipment 

generate $128.1 million in direct aviation related impacts. These at-airport direct impacts are 

presented by impact component and expense type in Exhibit 3-2. A major share (26%) of these 

expenditures is paid in the form of earnings, $33.3 million, to the 547 full-time equivalent (FTE) 

jobs. The capital expenses of $19.3 million comprise (15%) and the operations expenses account 

for $75.4 million (59%). 



Exhibit 3-2 

Direct Economic Impacts 


Jobs 

Expenses 

Full Part Total FEQ Payroll Capital Operations Total 

Airport Firms 

Government 27 7 34 31 $2,950,600 $16,299,600 $1,225,600 $20,475,800 

Aviation Services 226 34 260 245 10,039,600 2,027,100 20,334,500 32,401,200 

Corporate 110 0 110 110 9,585,700 577,200 25,078,400 35,241,300 

Sub total 363 41 404 386 $22,575,900 $18,903,900 $46,638,500 $88,118,300 

Through-the-Fence 

Corporate 90 1 91 91 $8,271,400 $361,800 $26,531,700 $35,164,900 

Aviation Services 41 0 41 41 1,927,100 43,700 1,663,400 3,634,200 

Others 24 7 31 29 541,700 34,400 582,200 1,158,300 

Subtotal 155 8 163 161 $10,740,200 $439,900 $28,777,300 $39,957,400 

Total 518 49 567 547 $33,316,100 $19,343,800 $75,415,800 $128,075,700 

Source: Wilbur Smith Associates 

Location of Impacts – Breakdown of expenses by location suggest that 71% of the FTE jobs (386) 

and 69% of the expenditures ($88.1 million) occur on airport property, versus 29% of the FTE jobs 

(161) and 31% of the expenditures ($40.0 million) arise from through-the-fence operations. 

Business Type Expenditure Impacts – Impact breakdown between payroll, capital and operation 

expenses varies by business type. The vast majority of capital expenses are incurred by airport 

operations, namely the Chicago Executive Airport – who finance various landside and airside 

infrastructure improvement projects required to accommodate the aviation training and corporate 

demand. In addition, the FAA has a notable presence on the airport. Combined with U.S. 

Customs, government operations account for 16% ($20.5 million), of the direct airport-related 

expenditures. 

Comparatively, the 48 corporate operations identified in the study account for 55% ($70.4 million), 

of the airport expenses a large share of which reflects fuel costs. The extensive flight training, 

fixed-base-operators, flight clubs and other general aviation related service firms account for 28% 

($36.0 million) of the airport-related direct expenditure impacts. Lastly, car rental, catering and the 

restaurant account for the remaining impacts ($1.2 million). 

Jobs Impacts – An estimated total of 567 people work at the airport on either a full or part-time 

basis. Of these, a vast majority (518, 95%) are employed on a full-time basis versus the 

remaining (49, 5%) employed on a part-time basis. Combined, an estimated 547 FTE jobs occur 

at Chicago Executive Airport. The majority of these FTE jobs (286, 52%) work for aviation service 

related firms. Corporate aviation firms employ 201 (37%) FTE jobs, while government firms 

account for 31 jobs (6%) and other jobs account for 30 FTE jobs (5%). 

Payroll Expenses – Payroll to people who work at the Airport and typically live in the region 

totals $33.3 million annually. This payroll goes to the estimated 567 people who work at the 

airport (547 FTE jobs). Many of these jobs are high paying, with the average FTE employee 



earning an annual salary of $60,900. However, average payrolls range significantly between 

business type and firm. Government employees, which includes many traffic controllers as well 

as other airport operation services, generate the highest average payroll of $95,200, Corporate 

operations, which employee pilots, mechanics and other support services ($88,800). The 

airport service-related firms average $41,900. 

Capital Expenses –The $19.3 million in “capital impacts” (see Exhibit 3.2) comprise capital 

investments made in which the recipient of the expenditures typically is located in the region. 

Capital investment represents physical improvements to airport facilities, either public or private. 

However, capital expenditures on aircraft are excluded because the recipient, the aircraft 

manufacturer, is located outside of the study region. Funds may come from private sources such 

as leaseholders, government agencies such as the airport operator, or through aid grants from the 

Federal Aviation Administration (FAA), or the State of Illinois. 

The largest share of capital impacts typically originate from the airport operator who manages the 

airport, and finances airside and landside improvements. Total airport operator capital costs 

evaluated in this study comprise an annual average of the capital costs over the past ten years 

and those programmed over the next five years, inclusive of the matching state and federal 

contributions. The annual average estimation approach better reflects the typical annual impact 

that large capital investment projects have on the local community. For example, actual airside 

and landslide improvements averaged $8.5 million over the last 10 years (1998-2007), the vast 

majority attributable to the $46.5 million allocated in 2007. This spike in capital expenditures is 

expected to continue with an annual average of $24.1 million in programmed expenditures 

between 2008 to 2012. 

Operation Expenses – Operation expenses include expenditures for local utilities, operations, 

parts and supplies, services, aviation fuel, and other local purchases. All of these are of economic 

value to the Chicago Executive Airport service area – totaling an estimated $75.4 million. It is 

recognized that a significant portion of the airport operation expenses is made by one airport 

business to another at-airport business. 

3.2 Indirect Impacts 

The estimated $17.7 million in total indirect impacts at Chicago Executive Airport include visitor 

impacts associated with air taxi, corporate and personal aircraft operations. Each visitor type 

demonstrates different travel patterns regarding percent visitors, percent staying overnight and 

expenditures per day, etc. Based on these differences, a composite of the visitor impact 

estimation is diagramed in Exhibit 3-3. 



Exhibit 3-3 

Indirect General Aviation Visitor Impacts 


General Aviation Operations 

Total Takeoffs 

43,731 

Itinerant & Air Taxi 

Operations 

87,462 

Visitor 

Landings 

18,434 

Total Landings 

43,731 

Resident 

Landings 

25,297 

Average People 

Per Aircraft 

3.3 

Total General 

Aviation Visitors 

61,026 


Day Only 

Visitors 

22,292 (37%) 

Average Daily 

Visitor Expenditures 

$28 

Overnight 

Visitors 

36,614 (63%) 

Average 

Length of Stay 

2.0 days 

Average Daily 


$233 

Day Only 


$637,000 

Overnight 


$17,036,700 

Total GA 

Visitor Impacts 

$17,673,700 



The general aviation visitor impact estimates were derived from a transient pilot survey, 

discussions with airport management, corporate tenants, fixed-base-operators and from previous 

studies. Of the 87,462 itinerant and air-taxi annual operations (in 2006) at Chicago Executive 

Airport, there were a total of 43,731 landings (one aircraft operation equals one take-off or one 

landing), with an estimated 18,434 (42%) visitor landings. Assuming an average of 3.3 people per 

aircraft, the visitor landings translate into a total of 61,026 annual General Aviation visitors in 

2005. 

Many of these General Aviation visitors (22,292 or 37%) involve people who stay in the region for 

less than an entire day. These visitors fly into Chicago-land area, conduct business and depart 

the same day. The other 36,614 General Aviation visitors (63%) are people who stay in the 

region overnight. It is estimated that the average length of stay of the General Aviation visitor at 

Chicago Executive Airport is 2.0 days, with an average daily expenditure of $233 per day. 

Combined, the regional visitor expenditures (food, lodging, entertainment, etc.) made by 

passengers and pilots who arrive at Chicago Executive Airport via general aviation aircraft total 

$17.7 million annually. 

3.3 Multiplier and Total Impacts 

The “direct” and “indirect” economic impacts represent final demand increases in the airport 

impact area. Such “final demand” increases, however, do not represent the total economic impact 

value attributable for the Chicago Executive Airport. Rather, a “multiplier” effect also exists from 

the respending of these final demand expenditures through the local economy. 

As shown at the beginning of this Chapter (see Exhibit 3-1), an aviation-related multiplier impact 

of $185.0 million is generated from the combined direct and indirect impacts. In total, the aviation 

related impacts are $330.8 million in economic activity, with $124.2 million in earnings paid to the 

2,426 jobs. These direct, indirect and multiplier impact types are presented by impact measure 

(i.e., output, income and jobs) in Exhibit 3-4. 

Exhibit 3-4 

Impact Breakdown by Measure and Type 


Impacts Output Income 

Output Income Jobs per Job Per Job 

Direct $128,075,700 $33,316,100 547 $234,100 $60,900 

Indirect 17,673,700 6,999,900 297 $59,600 $23,600 

Multiplier 185,026,800 83,907,800 1,583 $116,900 $53,000 

Total $330,776,200 $124,223,800 2,426 $136,300 $51,200 

Source: Wilbur Smith Associates use of IMPLAN 

The typical direct at-airport job is high paying. Impact comparison suggests that every direct job 

generates an estimated $234,100 in output with an average salary of $60,900. Comparatively, 

every indirect job typically pays much less ($23,600). 



Chapter 4 - Airport-Related Tax Impacts 

The following tax analysis addresses the taxes paid by businesses, property taxes paid by 

airport firms, as well as the income taxes paid by the 2,426 people employed directly or 

indirectly by the airport. Combined, the State and Cook County collect a total of $17.4 million in 

taxes annually that is directly or indirectly attributable to Chicago Executive Airport. The 

income, property and business related tax components are presented below. 

4.1 Income Taxes 

While the marginal tax rate in Illinois is 3% on income earned in Illinois, tax refunds, exemptions 

and other factors result in an effective state income tax that is significantly less. Specifically, 

comparison of state income tax receipts in FY 2003 ($7.4 billion) 5 to that of total personal 

income ($355.7 billion) 6 yield an effective state income tax rate of 2.08%. This effective tax rate 

of 2.08% is applied to the $124.3 million in airport-related income, suggesting a net income tax 

contribution of $2.6 million paid to State coffers. This state income tax benefit includes the 

income associated with jobs both at the airport as well as the indirect and multiplier jobs that 

occur off-airport. 

4.2 Personal Property Taxes and Registration Fees 

Personal property taxes are paid by airport tenants on buildings and structures, but not on 

aircraft. These taxes are discussed be 

Aircraft Taxes and Fees – Personal property taxes are not assessed on either personal or 

commercial aircraft in the State of Illinois. Aviation aircraft, though not taxed as personal 

property, is subject to registration fees. A flat rate $20 registration fee is imposed on all 

aviation aircraft that is valid for a two year term. Aviation aircraft registration is conducted 

through the Illinois Department of Transportation, Division of Aeronautics. With 294 7 based 

aircraft at Chicago Executive, an estimated $2,940 in registration fees are collected annually by 

the State. Exclusion of aircraft property taxes and the imposition of the very low, marginal 

registration fee helps ensure that aviation is competitively priced compared to other states. 

Real Property Taxes – Individuals and commercial entities, though not required to pay personal 

property taxes, are obliged to pay taxes on real property. Real property is classified as land or 

permanent infrastructure improvements which include buildings, paving projects, drainage 

systems, fences, landscaping, etc. Airport leaseholders are obliged to pay real property taxes if 

5 Illinois Department of Revenue, http://www.revenue.state.il.us/Businesses/TaxInformation/Income/individual.htm 

6 Illinois Department of Revenue, http://www.revenue.state.il.us/TaxStats/TY03IncomeTaxData.pdf 

7 KPWK, Chicago Executive Airport. Airport Operational Statistics. airnav.com 



leasing from a tax exempt property owner 8 , as in the case of the hangar tenants at Chicago 

Executive. As seen in Exhibit 4-1, in 2006, the total assessed real property value at Chicago 

Executive was $6,089,800 and the actual real property taxes paid was $1,310,100. From 2003 

to 2005, the assessed real property value and the actual real property tax paid more than 

doubled, and in 2006, only slightly decreasing from the previous year. 

Exhibit 4-1: 

Real Property Tax Assessed Value and Paid Amount 


Year Assessed Value Paid by Lessees 

1993 1,283,561 225,193 

1994 1,304,630 232,248 

1995 1,311,920 227,011 

1996 1,321,926 231,546 

1997 1,311,920 233,287 

1998 2,085,267 375,047 

1999 1,875,446 338,137 

2000 2,917,837 438,804 

2001 2,917,837 458,415 

2002 3,648,552 599,044 

2003 3,562,192 733,684 

2004 1 5,405,355 1,055,771 

2005 7,248,517 1,377,858 

2006 6,089,811 1,310,076 

Source: Palwaukee Municipal Airport 2006 Comprehensive Annual 

Financial Report, p.36 and 2005/2006 Real Estate Taxes Assessments 

1 

Actual data unavailable, interpolated from years 2003 and 2005 

In addition to this Airport information, through the fence operators also pay similar property 

taxes. Property tax survey information collected from the through the fence operators suggest 

an additional $1.3 million is collected by Cook County. (Note that property tax estimates derived 

from the survey of airport tenants yielded property estimates of $1.4 million – just slightly higher 

than the actual values reported in the CAFR.) In total, the airport tenants and through-thefence-operators 

collect an estimated $2.7 million annually in local county property taxes. 

4.3 Business Taxes 

The IMPLAN model also provides an estimate of the taxes paid by businesses associated with 

normal operations, including sales taxes, excise taxes, fees, and licenses. Indirect business 

taxes are considered a portion of the value added aspect of total output. These tax impact 

estimates exclude income taxes and the property taxes paid by at-airport businesses. In total, 

8 The Illinois Property Tax System: A Guide to the Local Property Tax Cycle. Illinois Department of 

Revenue. page 6. 



an estimated $12,151,800 in business taxes is paid by firms who are directly or indirectly related 

to airport activity, as shown in Exhibit 4-2. The on profits or income. 

Exhibit 4-2 

Business Taxes by Type 


Type 

Amount 

Direct $4,884,700 

Indirect 1,333,800 

Multiplier 5,933,300 

Total $12,151,800 

4.4 Total Taxes 

A total of $17.4 million in annual taxes were identified as affiliated with airport operations. 

These include the property taxes paid by airport tenants, income taxes associated with 

individuals who work both on and off the airport, and business taxes paid by firms directly or 

indirectly affected by airport operations. 

Exhibit 4-3 

Business Taxes by Type 


Type 

Amount 

At-Airport Real Property Tax $2,700,100 

Income Tax 2,583,900 

Business Taxes 12,151,800 

Total $17,435,700 



Chapter 5 - Business User Impacts and Other Benefits 

As regional business markets become more national and even global in scale, airports are 

increasingly seen as prerequisites for local economic development. However, insufficient 

transportation systems can seriously impede actual economic development. As time constraints 

and dependability become increasingly important, the role of air transport for both goods and 

personnel continues to increase. Further, the commercial air transportation system struggles to 

accommodate demand as airline load factors continue to reach new highs. 9 Given this 

paradigm, corporations increasingly use the more direct, dependable and controllable flight 

options that general aviation transport provides in moving key personnel and essential freight. 

This is especially evident in the Chicago area where O’Hare International Airport, one of the 

busiest in the world, is continually plagued by flight delays and/or cancellations due to 

congestion and severe weather. While the preceding economic impact analysis evaluated the 

jobs, income and output associated with the businesses that provide air transport, it did not 

address the value of air transport to the businesses that depend on Chicago Executive Airport. 

This user impact is vital to the Chicago area economy. However, no definitive manner exists to 

measure the value of the airport to the major business users. 

Nonetheless, the value is real and is addressed below. This section begins with an overview of 

the National Business Aviation Association (NBAA) and General Aviation Manufactures 

Association (GAMA) perspective, followed by a summary of typical business user surveys. A 

quantitative perspective is then provided through an estimate of employment levels at the 

businesses who have corporate aircraft based at Chicago Executive. The chapter concludes 

with qualitative description of the qualitative benefits of how the Airport’s activities affect the 

community’s quality of life. 

5.1 Aviation-Dependent Industries 

Many of the nation's leading employers that use general aviation as a business tool are 

members of the NBAA. The NBAA’s Business Aviation Fact Book 2004 indicates that 

approximately 75% of all businesses included in the Fortune 500 operate general aviation 

aircraft. Moreover, 92 of the Fortune 100 companies operate general aviation aircraft. A 

detailed analysis conducted for NBAA in 2004 also indicated that among the Fortune 500 there 

were more than twice as many companies operating general aviation aircraft as non-operators. 

Business use of general aviation aircraft at Chicago Executive Airport ranges from small singleengine 

aircraft rental to multiple aircraft corporate fleets supported by dedicated flight crews and 

9 The ATA Factbook – 2007 reports seat load factors (occupied percent of commercial aircraft seats) of 

77.6% in 2005 and 79.2% in 2006. While these factors fluctuate monthly, the general annual trend 

continues to rise. 



mechanics. The use of general aviation aircraft enables employers to efficiently transport 

personnel and air cargo. Businesses use general aviation aircraft to link multiple office locations 

and to reach existing and potential customers. Small to mid-size company use of business 

aircraft escalated through the dramatic emergence of various chartering, leasing, time-sharing, 

interchange agreements, partnerships, and management contracts. Fractional ownership 

arrangements have also experienced recent rapid growth. The NBAA estimated that between 

2000 and 2004 the number of companies and individuals indicating fractional ownership 

increased 62%, from 3,834 to 6,217. Similar general aviation usage trends were observed at 

Chicago Executive Airport. 

Regardless of who owns the aircraft or what type of aircraft is flown, businesses increasingly 

choose to use general aviation because it provides safe, efficient, flexible, and reliable transport. 

Of all the benefits provided to business by general aviation, flexibility is the highest ranked factor 

by all businesses using general aviation aircraft. Many reasons exist for why businesses use 

general aviation in their day-to-day operation; NBAA identified the following seven key factors: 

1. Employee time savings 

2. Increased productivity 

3. Minimization of non-business hours away from home 

4. Assurance of industrial security 

5. Maximization of personal safety and peace of mind 

6. More control of business travel scheduling 

7. Better facilitation of the entrepreneurial spirit 

The use of general aviation as a business tool adds to productivity and to the bottom line. 

According to an NBAA survey of key Forbes and Fortune 500 companies, those businesses that 

use general aviation aircraft routinely and significantly outperform businesses that do not. 

Performance indicators such as annual sales, number of employees, value of assets, and 

annual income are significantly higher for employers using general aviation aircraft. 

5.2 Typical Value-Added Impacts 

Considering the number and variety of businesses in the Chicago area, it is impossible to 

quantify the value-added benefit that area businesses derive from using the Chicago Executive 

Airport. It is possible, however, to obtain perspective on the importance of aviation to the 

business community through surveys. Surveys of businesses in industries that typically use 

aviation (i.e., manufacturing, transportation, telecommunications, engineering/consulting, and 

utility sectors) are often conducted as part of larger State Aviation System Plans to assess their 

dependence on aviation. 



5.2.1 Previous Study Business User Surveys 

Business user surveys have been conducted over many years for several studies. While each 

study yields differences, some general trends emerge. For this reason, recent survey results for 

other studies were collected and reviewed. A summary of the Location Factor Ranking and 

General Aviation Business Use for the last six major statewide studies is summarized below 

Location Factor Ranking – The off-airport business user survey asked respondents to rank the 

importance of 14 various factors considered in relocation or expansion decisions. Overall, the 

availability of an airport with scheduled commercial airline service ranked between 4 th and 6 th , 

while proximity to general aviation facilities ranked between 7 th and 10 th , as shown below in 

Exhibit 5-1. Highway access, as one might expect, ranked 1 st in all six studies, followed by 

labor supply and trained workforce. 

Exhibit 5-1 

Business Location Factors and GA Business Use 


Missouri 

South 

Carolina Nebraska Ohio Texas Arkansas 

Location Factor Ranking 

Academic or cultural centers 7 7 7 6 6 10 

Commercial service airport 6 4 5 5 4 5 

General aviation airport 10 8 9 9 10 7 

Highway access 1 1 1 1 1 1 

Historic location 13 14 12 10 9 12 

Labor supply availability 2 2 2 2 2 2 

Natural Resources 11 11 11 12 12 11 

Rail transportation facilities 14 13 13 14 13 13 

Raw Materials 9 10 10 11 14 9 

Supplier proximity 5 6 6 8 8 6 

Tax incentives 4 5 4 4 5 4 

Trained workforce availability 3 3 3 3 3 3 

Urban business district 8 9 8 7 7 8 

Water Transportation Facilities 12 12 14 13 11 14 

General Aviation Business Use 

Own, lease, charter aircraft 15% 19% 18% 24% 24% 29% 

Supplier and/or customer use 35% 40% 32% 35% 28% 33% 

Source: Wilbur Smith Associates, Statewide Studies 

Business Use of General Aviation Services – Survey results also indicate that many businesses 

depend on general aviation airports on a daily basis. Without access to general aviation, 

businesses indicated a need to cut employment or possibly relocate to other states. Of the 

responding businesses in each study 15% to 29% either own (outright or fractionally), lease or 

charter aircraft on a regular basis. Further, an even greater share of their customers and/or 

suppliers (e.g., 32% to 40%) rely on general aviation aircraft. 



5.2.2 Chicago Executive Airport Business User Survey 

The targeted sectors represent those with greater propensities to use scheduled commercial 

airline service and general aviation in their location/expansion decisions. For this study, a 

survey mailing list was developed based on a random sampling of five hundred business 

establishments within a ten-mile radius of the Airport, with a minimum revenue threshold of $1 

million and a minimum employment threshold of 50 employees. A breakdown of surveyed firm 

sales volume, employment levels and industry SIC codes is shown in Exhibit 5-2. 

Exhibit 5-2 

Business User Survey Firm Characteristics 


Sales Volume Employee Size SIC Code 

Range Firms % Range Firms % Range Firms % 

$10M-$20M 193 38.6% 50-99 186 37.2% 15-17 49 9.8% 

$20M-$50M 168 33.6% 100-249 204 40.8% 20-39 234 46.8% 

$50M-$100M 69 13.8% 250-499 60 12.0% 40-49 29 5.8% 

$100M-$500M 51 10.2% 500-999 23 4.6% 60-67 51 10.2% 

$500M-$1B 10 2.0% 1000-4999 20 4.0% 70-79 73 14.6% 

$1B+ 9 1.8% 5000-9999 7 1.4% 80,87 64 12.8% 

Total 500 100.0% Total 500 100.0% Total 500 100.0% 

Unfortunately, the response rate was disappointing. Of the 500 firms surveyed only 15 

responded. Given the poor response rate, it was not possible to draw any meaningful 

conclusions from the local business user survey. 

5.3 Business Aviation at Chicago Executive Airport 

Identification of the airport users, by aircraft operations, was obtained from the IFR (Instrument 

Flight Rule) records at the Airport. IFR records identify the tag registration of the aircraft and the 

commercial owner of the aircraft for each operation. Chicago Executive Airport initially identified 

over 3,500 different businesses, operating throughout the country, with over 46,000 annual 

operations and almost 5,500 aircraft. 

To determine the economic implications of airport users within the study area, the data was 

filtered and narrowed to identify locally based firms that regularly use the Airport. Of the over 

3,500 businesses identified as airport business users, the list was narrowed to those physically 

located in the State of Illinois (approximately 14,200), and then further narrowed to only those 

within the greater Chicago metropolitan area (3,500). Further, firms with less than twenty 

annual airport operations annually were considered as intermittent users and not significantly 

dependent on the Chicago Executive Airport. Lastly, firms that provide air taxi, training and 

other strictly aviation-oriented services were also filtered (since their impacts are typically 

addressed under the preceding impact analysis). The at-airport recognizance and tenant 

interviews also helped identify non-business users. 



Given these filters, 51 locally based firms were identified that use the Airport regularly (i.e., at 

least twice per month) for business purposes. These 51 firms operate about 5,500 flights 

annually with 117 aircraft. On average, this suggests that each of the 51 firms had two aircraft 

(2.3 aircraft per firm) and operated each aircraft once per week (47 operations per year). 

Employment and annual sales revenues figures were obtained where available and estimated 

where unavailable for those identified airport users to estimate employment and sales volumes 

for study area firms that regularly rely on the airport. 10 The direct effect of these 51 firms on the 

local Chicago area economy is an estimated 12,600 jobs and $1.3 billion in sales. 

5.4 Other Qualitative Benefits 

Lastly, qualitative benefits arise from regular airport activities that improve people’s quality of 

life. While it is difficult to place a dollar value on such impacts, these activities benefit local 

residents, business and visitors in a variety of ways. These include health, welfare and safety 

benefits that arise form medical flights, police patrol, traffic reporting, educational opportunities, 

economic development marketing, etc. The airport management survey conducted as part of 

this study identified specific examples of qualitative benefits supported at Chicago Executive 

Airport, and is summarized in Exhibit 5-3. 

While this matrix is not all-encompassing, it does provide an overview of the diversity of benefits 

that the Airport supports, beyond the creation of jobs, payroll, and output. In addition to both 

recreational and corporate/business activity, very frequent activities include career training/flight 

instruction, search & rescue (CAP), and medical transport (both emergency and physician). In 

addition, law enforcement, traffic/news reporting and essential air cargo just-in-time (JIT) 

operations are frequently conducted at Chicago Executive Airport. 

10 Data obtained from both Dunn and Bradstreet and InfoUSA databases. Estimates for firms lacking 

data were calculated based on the average employees or annual sales revenue per aircraft operation. 



Exhibit 5-3 

Qualitative Activity Benefits 


Activity 

Frequency 

Recreational flying 

Corporate/business activity 

Aerial inspections (pipeline, electric. etc.) 

Air cargo 

Gateway for recreational visitors 

Police/law enforcement 

Prisoner transport 

Military exercises/training 

Career training/Flight instruction 

Search & rescue/Civil Air Patrol 

Environmental patrol (i.e. wildlife) 

Emergency medical evacuation 

Physician/Medical Transportation 

Medical shipments/patient transfer 

Aerial photography/surveying 

Real estate tours 

Traffic/news reporting 

Air shows 

Food service 

Very Frequent 

Frequent 

Infrequent 

Source: Wilbur Smith Survey of Airport Management 

5.5 Business User Impacts and Other User Benefits Summary 

Today’s global economy increasingly requires the safe, efficient, and timely transport of key 

personnel and essential freight. Flexibility, efficiency and reliability associated with general 

aviation business service continues to attract business aviation users as load factors, weather 

delays and congestion increase at commercial service airports. In the Chicago area, the 

Chicago Executive Airport has become a vital transport node for over 50 local firms. These 

businesses employ over 12,600 people and generate $1.3 billion in annual sales. Lastly, the 

medical transport, police patrol, traffic reporting, etc. provide health, welfare and safety benefits 

to the region. 


Chicago Executive Airport Economic Impact Study–2007 

Appendix 

Appendix Exhibits 

A 

B 

C 

D 

Chicago Executive Airport Management Survey 

Chicago Executive Airport Tenant Survey 

Chicago Executive Airport Business Survey 

Chicago Executive Airport Transient Pilot Survey 


AIRPORT MANAGEMENT SURVEY 

Contact: __________________________________________________________________________________ 

Name 

Phone Number 

EMPLOYMENT 

1. During 2006, how many full-time and part-time employees were employed by the Airport 

Operator 

Full-time employees: FT Part-time employees: PT 

EXPENDITURES 

2. Please estimate the total annual wages and benefits paid to all employees shown in Question 1. 

2006 Total Wages/Benefits: $ 

3. Please estimate the total annual taxes paid by the Airport in 2006. 

Property taxes: $ 

Other Non-Federal taxes: $ 

4. Please estimate past and future capital improvements in the following years (include AIP, Federal, 

State and local funds/grants) per the below table: 

Programmed 

2012 

2011 

2010 

2009 

2008 

Historical 

2007 

2006 

2005 

2004 

2003 

2002 

2001 

2000 

1999 

1998 

Airport Capital Expenditures by Source 

Airport 

Operator State Federal Total

REVENUE 

5. For 2006, please provide the following for your airport: 

Estimated annual operating profit / (loss): $ 

Annual operating funds provided by your airport’s sponsor: $ 

6. Does the airport own and lease hangars Yes No 

If so, please provide average monthly lease rates: 

Monthly T-Hangar Rental Rates: $ 

Monthly Conventional Hangar Rental Rates: $ 

7. Does the airport owner/sponsor collect a fuel flowage fee Yes No 

If so, please provide the following: 

Fuel flowage rate for jet fuel: 

Annual gallons sold: 

Fuel flowage rate for 100LL: 

Annual gallons sold: 

8. Does your airport collect landing fees Yes No 

If so, how much did the Airport collect in landing fees from general aviation aircraft in 2005 

$ 

AIRPORT ACTIVITY 

9. Please provide aircraft operation data for 2006 (annual landings and takeoffs) by type: 

Local 

Air Taxi 

Itinerant 

Total 

10. Please estimate (by percentage) the distribution of your annual operations for trip purpose. 

Business Only % 

Pleasure/Personal Only % 

Business/Personal Mix % 

Recreational % 

Training % 

Other % 

11. Does your airport have regular activity by air cargo/air freight carrier Yes No 

If so, please list the firms: 

__________________ 

__________________ 

__________________

12. Please review tenant list below and those firms identified in previous study. Please check those 

firms still at the airport (on- and off-property) as well as the thru-the-fence-operators: 

2004 

Study Current 

Original Tenant List 

Chicago Airport Authority 

Y 

American Flyers Y Y 

Atlantic Aviation Y Y 

Chicago Flight Training 

Y 

Crosscom 

Y 

Duncan Aviation 

Y 

Flight World Limited Y Y 

Hertz Corporation 

Y 

North American Jet Y Y 

Palwaukee Service Center Y Y 

Priester Charter 

Y 

Signature Flight Support 

Y 

Other Firms Identified in Previous Study 

The Flight Center 

Y 

Windy City Flyers 

Y 

Chicago Flight Training 

Y 

CF Industries () 

Y 

Helinet 

Y 

Rubin Consulting 

Y 

US Customs 

Y 

LJ Ventures 

Y 

Klein Tools 

Y 

General Aviaiton Services 

Y 

Nrthrn IL Flight Center 

Y 

Woodhill 

Y 

Motorola 

Y 

Willis Stein & Partners 

Y 

Dean Witter 

Y 

Allstate 

Y 

Alberto Culver 

Y 

MacLean-Fogg 

Y 

Household Finance 

Y 

Duchossios Industries 

Y 

Airways Flight 

Y 

Other Aviation-Oriented Firms Currently At/Next to Airport 

Thru- 

Fence 

Airport Total

13. What activities occur at your airport (Check all that apply). 

Activity Never Infrequently Frequently 

Recreational flying 

Agricultural spraying 

Corporate/business activity 

Aerial inspections (pipeline, electric. etc.) 

Air cargo 

Gateway for recreational visitors 

Police/law enforcement 

Prisoner transport 

Military exercises/training 

Career training/Flight instruction 

Search & rescue/Civil Air Patrol 

Environmental patrol (i.e. wildlife) 

Emergency medical evacuation 

Physician/Medical Transportation 

Medical shipments/patient transfer 

Forest firefighting 

Aerial photography/surveying 

Real estate tours 

Aerial advertising/banner towing 

Traffic/news reporting 

Air shows 

Location of community facilities (parks, 

fire station, meeting rooms) 

Skydiving 

Gliders/soaring 

Food service 

Other (specify)________________ 

Very 

Frequently 

Thank You!

AIRPORT TENANT SURVEY 

Business Name: ___________________________________________________________________________ 

Contact: __________________________________________________________________________________ 

Name 

Phone Number 

1. What area of aviation activity applies to your business at the airport (Check ALL that apply.) 

Concession 

FBO 

Corporate Flight Department 

Government/Airport Management/Owner 

Air Freight/Cargo Carrier 

Aerial Applicator 

EMPLOYMENT 

 

 

 

 

 

 

Rental Car 

Air Taxi/Charter Operator 

Aircraft Maintenance 

Flight Instruction 

Non-Aviation Business 

Other (please specify) 

2. During 2005, how many full-time and part-time employees were employed by your business at the 

Airport 

2005 Full-time employees: FT 2005 Part-time employees: PT 

EXPENDITURES 

3. Please estimate the total annual wages and benefits paid to all employees shown in Question 2. 

2005 Total Wages/Benefits: $ 

4. Please estimate the total annual taxes paid by your business in 2005. 

Property taxes in 2005: $ 

Non-Federal taxes paid in 2005: $ 

5. Please estimate how much your business spent for capital improvements in the following years: 

2002: $ 2003: $ 

2004: $ 2005: $ 

6. Omitting the expenditure categories above (i.e., payroll, taxes, and capital improvements) please 

estimate how much your business spent for all other operating expenses in 2005. 

2005 Operating Expense: $ 

PLEASE CONTINUE ON THE REVERSE SIDE

GROSS SALES 

7. What were your business’ total gross sales at the airport in 2005 

2005 Gross Sales: $ 

8. Aircraft and Fuel Sales: 

If your business sells aircraft, how many aircraft did you sell during 2004 

What was the approximate value of these planes $ 

How many aircraft did you sell during 2005 

What was the approximate value of these planes $ 

If your business sells fuel, how many gallons of jet fuel did you sell in 2005 

How many gallons of 100LL fuel did you sell in 2005 

9. Please comment on any additional economic benefits or services that your business provides to the 

local community. 

________________________________________________________________________________________ 

________________________________________________________________________________________ 

________________________________________________________________________________________ 

________________________________________________________________________________________ 

Please complete and return this survey within 10 days of receiving it. If you have any questions regarding this 

survey, please contact Mr. Matthew Preisler of Wilbur Smith Associates at 513-233-3700 or 

mpreisler@wilbursmith.com. You may also return the survey via FAX at 513-624-5182. 

THANK YOU FOR COMPLETING THIS SURVEY. 

PLEASE FOLD SO THE PREPAID RETURN POSTAGE ADDRESS IS SHOWING. 

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BUSINESS SURVEY 

Company Name: _____________________________________________________________________________ 

Street Address: ______________________________________________________________________________ 

City: ________________________________________________State: ____________Zip: __________________ 

Business product or service: ___________________________________________________________________ 

Number of Employees in Chicago Area: 

Full Time ____________ Part Time ____________ 

2005 Estimated annual Gross Sales (Chicago Area only): $______________________ 

2005 Estimated Annual Payroll (Chicago Area only): $__________________________ 

SCHEDULED COMMERCIAL AIRLINE SERVICE 

1. Please estimate the total number of airline trips per year taken by your company’s Chicago Area employees: 

________ Annual Trips 

2. If you answered Question 1, what percent of airline trips are: 

________ Percent International travel 

________ Percent Domestic travel 

3. Please estimate the percentage of your business activity that depends on the availability of 

Commercial Service Airports: ________________% 

General Aviation Airports: ________________% 

4. Do any of your clients or vendors use commercial air transportation to visit your local business site 

Yes _________ Estimated Air Trips/Year 

No 

From where (Please list the top 3 locations): 

1)__________________________ 2)__________________________ 3)_________________________ 

GENERAL AVIATION SERVICES 

5. Do any of your clients or vendors use general aviation to visit your local business site 

Yes _________ Estimated Air Trips/Year No 

From where (Please list the top 3 locations): 

1)__________________________ 2)__________________________ 3)_________________________ 

6. Does your company: Yes No 

Own general aviation aircraft 

Use general aviation charters or air taxis 

Lease a general aviation aircraft 

Have fractional ownership in an aircraft 

PLEASE CONTINUE ON THE REVERSE SIDE

AIR CARGO SERVICES 

7. What type of air cargo service does your business use (check all that apply): 

None 

Documents less than 2 pounds 

Parcels 2 to 70 pounds 

Freight greater than 70 pounds 

8. If your company were considering expansion or relocation, how important would the following factors be to 

your decision-making process 

CATEGORY NOT IMPORTANT VERY IMPORTANT 

Convenient highway access 1 2 3 4 5 

A commercial service airport 1 2 3 4 5 

A general aviation airport 1 2 3 4 5 

Water transportation facilities 1 2 3 4 5 

Available trained labor supply 1 2 3 4 5 

Rail transportation facilities 1 2 3 4 5 

An urban business district 1 2 3 4 5 

Raw materials 1 2 3 4 5 

Natural resources 1 2 3 4 5 

Academic or cultural centers 1 2 3 4 5 

Tax incentives 1 2 3 4 5 

Proximity of suppliers 1 2 3 4 5 

Historic location of business 1 2 3 4 5 






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TRANSIENT PILOT SURVEY 

This survey, sponsored by the Chicago Executive Airport, will be used to help measure the positive 

economic benefits of daily aircraft operations at the Airport. Please take a few moments to complete the 

survey and drop it in the mail (pre-paid postage is on the back of the survey). 

Thank you for your time. 

1. Please indicate the number of travelers, including the pilot, in your aircraft today: 

2. Please indicate the type of aircraft you are operating today: 

Make: 

Model _________________ 

Did you file an IFR Flight Plan today Yes No 

3. Please indicate the purpose of your trip today (please check one box): 

Business 

Fuel/Maintenance 

Flight Training 

Recreation 

Other (please specify) 

4. How long was your visit to Chicago Executive Airport/Chicago Area 

Day only – How many hours 

Overnight – How many days 

Hours 

Days 

5. Please estimate expenditures for this trip: 

Hotel/Lodging: $ 

Food & Beverage: $ 

Rental Car/Taxi/Limo : $ 

Retail/Entertainment: $ 

Aircraft services (fuel, etc): $ 

Other: $ 

Total: $ 

6. How many people, including you, accounted for these expenditures 

7. Where is your aircraft based 

Airport Name City State

PLEASE CONTINUE ON THE REVERSE SIDE 

8. In the last 12 months, approximately how many trips by general aviation aircraft did you make to 

Chicago Executive Airport: 

Business: Pleasure: Training: 

9. Please provide us with any comments that you may have regarding the ways in which Chicago 

Executive Airport airports benefit your business: 






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Here - Chicago Executive Airport

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