Economic impact of airport: the Roissy Charles de Gaulle airport example
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- Clemence Porter
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1 Economic impact of airport: the Roissy Charles de Gaulle airport example
2 The Roissy Charles de Gaulle airport Today : Roissy CDG is the largest transport hub in Europe N 2 cargo airport in Europe, after Fraport ( but really close ), N 2 European airport for passengers ( n 7 in the world), in millions passengers in 2012, 1/3 in transfer direct jobs, source ADP 700 firms on the platform source Aéroports de Paris, in
3 The economy around the airport : Many companies have chosen to settle near the airport, 9000 firms and jobs in a 15km perimeter around the airport 170 business parks in the area Reasons to choose this location: activity related to aviation, presence of transport infrastructure, (TGV station, motorways,..) attractive cost of land land still available for future projects development educated population and skilled work force... 3
4 The more represented activities sectors in the CDG Airport Area : - aeronautics, - freight / logistics, - airport services, - safety / security activities, - offices : headquarters, international companies, services - hotels, leisure, shopping centers and conference center 4
5 Different studies have been conducted to measure the economic impact of the airport on its surrounding territory 5
6 Paris Airport Authority (ADP) conducted a study in 2013 to measure the link between the traffic growth on the Paris region s airports and the jobs creation in the surrounding area, in the region and in the country. This study conducted by BIPE consulting group, lead to the following conclusions : The economic activity generated by the presence of the Paris airports = 2% of employment in France Job growth on the Paris region s airports is 7 times more dynamic than in the whole Paris region On CDG airport, between 1995 and 2010, direct jobs have been created. The ratio suggested by this study: one million additional passengers led to the creation of 1,400 directs jobs. In 2011, thanks to this ratio, 18,450 jobs (direct, indirect, induced and catalytic) have been created in France.
7 According to our recent experience, we realize that the only criterion based on the increase in the number of passengers will not be sufficient to measure the real economic impact of the air transport economy and that we have to take into account the arrival of the new players. Indeed, we thought that we probably also have to raise the following question and analyze the consequence depending on the answer: What kind of airlines are used by passengers? low costs, MEAC s or national? Where are based the aircrafts used by Passengers? Are the flights long or short haul?
8 A study to measure the local economic impact of a long haul aircraft takeoff, based in Paris-CDG, on the surrounding territory Identification of all the products embedded in a based aircraft, and all the services needed to the proper functioning of this aircraft. A long haul aircraft based in Paris-CDG airport needs over 1000 different references of products and services on board, for various activities: catering, cleaning, security, maintenance It concerns more than 900 suppliers, based in France (50% in the Paris region) This study highlights that the takeoff of a based aircraft in Paris-CDG airport has positive economic impact on the surrounding economy, as it generated economic local wealth.
9 The indicators of the wealth generated by a based aircraft : The purchases of goods and services needed for the operation of an aircraft are realized in SMEs and large groups established in the territory Concrete economic links between business suppliers and subcontractors on the territory A steady increase in the number of SMEs located in the surrounding area An important development of the aviation and airport services Jobs creation (directly and indirectly ) New firms settlements and the development of sectors indirectly related to the air An increase in the number of industrial parks and major projects
10 The ARC «Is this the End of the Hub?» study - More passengers using Low costs airline and MEACs - Real risk that passengers will transfer in other hubs in the world - Likely consequence : Risk of long term job losses on the territory...
11 But: Different possible approaches, depending on the size of the airport: Regions with «hub airports» are likely to be more affected by the rise of the MEACs, Smaller secondary and/or regional airports get a better and powerful intercontinental connectivity Creation of new indirect and catalytic jobs in tourism. Expansion of International investment in these regions Development of the attractiveness of the region But, at a national level, there can be an increase in the demand for commercial aircrafts from the MEACs, which supports jobs for European aeronautical industry
12 This study conducted by the ARC and our organization in Val d Oise, untitled: Is this the end of the hub? points out the fact that it is not the End of the Hub model But...it is the end of the Hubs in Europe as we have known them for the last decades... In the future : Increase in point-to-point flights, when flying short-haul, operated mainly by low costs or no frills airlines And more connection will occur in Middle East Hubs, when flying long-haul
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