Wed Aug 5
Montgomery Regional Airport Among Airports Making $5 Billion Total Impact in Alabama
As Aviation Industry Faces Sustained Losses, MGM Included in List of Major Economic Contributors
(Montgomery, Alabama) – A recent study examined Alabama’s 76 airports. The study, which evaluates the contributions of airports to the growth of the state’s economy, estimates that in 2019, commercial service and general aviation airports’ spending added $5 billion in impact to Alabama’s economy. Additionally, the total impact of roughly 69,200 direct and indirect jobs and more than $2.6 billion of additional payroll are attributable to airports in the state.
At the heart of the economic impact study are the contributions of Alabama’s six major commercial service airports. Montgomery Regional Airport (MGM) is included among Alabama’s Big Six. These commercial facilities (and their auxiliary businesses) in Huntsville, Birmingham, Mobile, Dothan, Muscle Shoals and Montgomery add a total of $948.1 million to Alabama’s economy through non-payroll business transactions. They also provide impact through direct employment, an estimated 16,200 jobs in 2019, adding a direct total $1.6 billion to the economy.
The total estimated impact for Montgomery Regional Airport (MGM) is:
- Economic Impact: $125 million
- Payroll Impact: $47 million
- Employment Impact: 1,500 jobs
The report, prepared by Dr. M. Keivan Deravi, was released at a time when the aviation industry is facing tremendous challenges and downturns as a result of the ongoing global pandemic. Aviation Council of Alabama (ACA), the statewide airport and aviation association, procured the study.
“Airports across the state of Alabama have been critically impacted by the COVID-19 pandemic,” said Todd Storey, president of ACA. “The passage of the Coronavirus Aid Relief and Economic Security Act (CARES Act) was an important step toward delivering broad-based relief across the aviation industry, however, the relief is only temporary. This report shows that it is imperative that air travel regains momentum and that organizations return to the sky as a part of conducting business. This is because if they do not it will be detrimental to not only aviation and the airports, but also to the local community and national economic recovery as a whole.”
After signs of travel recovering with the reopening of states, some of the country’s larger airports are reporting declines in activity and slower-than-expected growth. Smaller markets covering regional routes, like Montgomery Regional Airport, are experiencing a faster rebound. Still, MGM is vigilant in its effort to maintain operations and position the airport as a safe, reliable option for passengers as they resume travel.
“Our month-over-month traffic has increased at MGM, but we know that confidence has not yet returned for long flights and international travel.” said Marshall J. Taggart Jr., Executive Airport Director. “There’s a significant road ahead for the airport to stabilize and return to pre-pandemic travel volumes. MGM’s full recovery is vital to the recovery of our region and that of our state.”
The ACA report points to the important contributions of airports to the health of Alabama’s economy. “The ACA study has done a fantastic job in outlining the importance of MGM and all Alabama airports to our state’s economy. At MGM, we employ roughly 300 people and make significant investments in – and contributions to – our local and state economies,” added Taggart.
To review the report, The Economic Impact of Alabama’s Six Major Commercial Service Airports on the State’s Economy Report, and associated data, review the full document online.
Montgomery Regional Airport offers non-stop flights to Atlanta, Georgia (ATL); Charlotte, North Carolina (CLT); and Dallas, Texas (DFW). MGM serves the region with four daily flights by American and Delta. For more information on the airport, visit flymgm.com.