Airport Masterplan 2035 LOW RES

Masterplan 2035
7. Economic and
Social Benefits of Growth
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The Economic Impact of Aviation
The Impact of a Regional Airport
7.1 The UK is a global trading nation. In December 2017 alone
the value of exported goods and services was nearly
£87 billion 15 , with imports valued even higher. Being
able to get to existing and new markets efficiently is vital
for maintaining and establishing trade links. As well as
establishment of lasting links between economies, air travel
also facilitates the transfer of innovative ideas, technologies
and cultures, which can augment the productivity of own
economy. However, air travel is equally as important for
investment and spending in the UK. The value FDI in the UK
in 2014/15 surpassed £1 trillion, creating over 85,000 jobs,
and foreign tourist spend in 2015 was over £25 billion 16 . In a
globalised economy the capacity for air travel needs to meet
demand if these economic benefits are to grow.
7.3 The economic impact of the Airport on the regional
economy through jobs and added GVA can be categorised
into a number distinct categories centred on the operational
impacts of the Airport itself, and the wider economic
impacts of the connections our route network offers -
l Direct – The jobs and GVA added by the activity of the
Airport itself. Most of these will be on-site with some
offsite but directly linked to the Airport’s operation;
l Indirect - Spending in the local supply chain from the
Airport, which creates further jobs and economic value;
l Induced - Salaries from the direct and indirect
employment is spent in the regional economy, supporting
more businesses and jobs seemingly unconnected to
7.2 In 2011 the UK’s air transport sector had a turnover of
about £120 billion and directly contributed over £10 billion
to the UK economy 17 . It is also a huge source of jobs with
120,000 employed in the sector. The air transport sector
is intrinsically linked to the civil aerospace sector, in which
the UK is a global leader. Growth in air travel can lead to
increased demand for the manufacture and maintenance
of civil aircraft. Combined these sectors support over half
a million jobs directly or indirectly, so nationally, growing
the aviation sector will be hugely beneficial to the wider
economy.
the Airport;
l Business Travel – The Airports route network allows for
the two way flow of trade, investment, knowledge, and
technology. This leads to both added productivity and
value to the region;
l Tourism – Visitors to the region bring added spending,
particularly supporting companies and employment in
this sector.
15
ONS – UK Trade December 2017, 16 ONS - International perspective on UK foreign direct investment (FDI): 2014, 17 Aviation Policy Framework (2013)
Newcastle Airport and the Regional Economy
7.4 Recent growth in passenger numbers has brought
complementary growth in the Airport’s economic impact.
There are currently about 3,450 people employed directly
on the Airport site, with another 500 off site jobs directly
supported. The majority, around 75%, are employed full
time. The structure of this employment is dominated by
airlines, ground handling, and the Airport itself.
Figure 10 Airport Employment Structure
1%
3% 3%
4%
28%
6%
6%
13%
16%
18%
Airline Ground Handling Airport Company Concession
Ground Transport Hotel Cargo Control Agencies
Airline Services Other Private Aviation
Maintenance and Engineering
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