Report: Burbank Airport puts $1.8 billion into Local Economy
An independent economic analysis of the Bob Hope Airport released Monday shows the facility has an overall economic impact of $1.8 billion in the regional economy with hopes it is rebounding from the recession.
The report from the Los Angeles County Economic Development Corp., the latest in a series of similar reports done for the airport, shows it has generated 12,446 jobs in direct and ancillary employment.
“This study shows that the impact of the airport to our economy is of major importance and the information will help guide the airport, the city of Burbank and the community to build a unified vision of the airport’s future,” Airport Authority President Susan Georgino said in a statement.
The airport is managed via a partnership comprised of Pasadena, Burbank and Glendale.
Dr. Christine Cooper, vice president of Economic and Policy Analysis at LAEDC, said the study was intended to look at all economic impacts of the airport, which is the fifth busiest in the region and the 61st in the nation. It trails Los Angeles International Airport, San Diego International Airport, John Wayne Airport and Ontario Airport.
The report noted the recession had a major effect on travel, with commercial airlines seeing a dramatic drop in passengers from 763.5 million in 2007 to a low of 690.8 million in 2009, when the recession was being felt the most severely.
The Bob Hope Airport was not immune to this, seeing its passenger levels drop from a 2007 peak of 5.84 million boardings to a low of 3.97 million in 2013.
“The recession hit everyone in the aviation industry with higher fuel prices and a reduction in disposable income,” Cooper said. “It does seem the Bob Hope Airport is seeing some improvements.”
Cooper said the report was commissioned as part of the airport’s community outreach.
“The industry has undergone some significant changes and I think they wanted to look at where they are these days,” she said.
Jobs created by the airport were primarily in the transportation and warehouse sector, Cooper said. The airport has nearly 55,000 tons of mail and cargo delivered each year The facility also generated accommodations and food service industries.
“Virtually all industry sectors receive a positive impact from the activities attributable to the Burbank Bob Hope Airport, including retail trade, real estate and rental activities, administrative services and health and social services,” Cooper said.
Also, the $113 million Regional Intermodal Transportation Center that is being built and scheduled to open in July created another 730 jobs.
The report found the airport created $662.9 million in labor income, $134.9 million in federal taxes and $122 million in state and local taxes, including $2 million in parking taxes.
Airport spokeswoman Lucy Burghdorf said it is hoped the report will help build a vision for the airport’s future.
It has an environmental study underway on the replacement of terminals as well as what to do with the other land on the site.
“We also have a number of issues we need to meet seismic and FAA standards,” Burghdorf said. “We need to modernize the facility.”