Alaska's Small Scheduled Air Carriers: Economic Significance

Abstract

The smaller Alaska based scheduled air carriers produce annual sales of about $205 million while employing nearly 2,100 Alaskans (annual average) with an annual payroll in excess of $68 million. Including Markair and Markair Express, all Alaska based scheduled air carriers produce annual sales of $415 million while employing about 3,200 with an annual payroll of $103 million. In addition to this direct effect, Alaska vendor purchases by the carriers as well as their employee spending of payroll generate sales and jobs in other businesses in the Alaska economy. The smaller air carriers generate an additional S228 million in sales, 2,200 jobs and $58 million in payroll for businesses providing goods and services to the industry and for businesses serving households with air carrier employees. Including Markair and Markair Express, all Alaska based scheduled air carriers account for 3,400 jobs and $88 million of payroll for other Alaska businesses. Total economic significance was calculated from estimated direct industry employment of 2,081, sales of $205 million, and payroll of $68 million using the ISER Input-Output model of the Alaska economy. This economic model calculates the economic activity which is stimulated in other businesses within the Alaska economy from both the purchases of the air carriers from other businesses in the state as well as from the expenditures of payroll by air carrier employees.