CAN YOU PROVIDE MORE INFORMATION ON THE ECONOMIC IMPACT OF AVIATION IN ALASKA

Aviation plays an absolutely vital role in Alaska’s economy and way of life given the remoteness of many communities across the state. With over half a million miles of shoreline but limited road infrastructure, air transportation is how the majority of people, goods and services move throughout Alaska.

According to a 2020 study commissioned by the Alaska Air Carriers Association, the aviation industry supports over 45,000 jobs in Alaska and accounts for $4.5 billion in annual economic impact. Cargo airlines, passenger carriers, general aviation operations, aircraft maintenance and repair companies, flight training schools and other related businesses are spread across the state and are responsible for supporting thousands of Alaskan jobs. Without aviation, many remote communities would essentially be cut off from the outside world.

When analyzing the role of aviation by region across Alaska, no area exemplifies its importance more than Bush Alaska. In rural, indigenous villages without any road connections, aerial transportation is the lifeline. Whether it’s medevac flights for medical emergencies, transporting essential goods like food and fuel, or providing access to larger hub communities for things like medical care not available locally – airplanes are what brings support and opportunity to these remote areas. Studies have shown a strong correlation between decreases in aerial transportation and increased food insecurity, higher costs of living and declines in overall community health and well-being in Bush villages.

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Moving to the more populated areas, regional carrier passenger air service is critical for both residents and the tourism industry. Being able to easily access regional hubs like Bethel, Dillingham, Nome and Kotzebue opens up economic activity and opportunities that simply would not exist otherwise. Seasonal tourism is a massive part of the economy in places like Bristol Bay and the Seward Peninsula, with visitors flying in via small commuter planes during summer months. The ability to fly directly into smaller airports located near one-of-a-kind fishing and outdoor attractions makes these destinations much more accessible.

In Southcentral Alaska, commercial air travel has an annual economic impact estimated at over $2 billion in the Anchorage bowl alone according to a University of Alaska study. Anchorage International Airport (ANC) is the bus hub and gateway for the entire state, supporting tens of thousands of jobs in industries from transportation to hospitality to retail. ANC handles over 5 million passengers annually and is a critical infrastructure asset. Cargo carriers fly in everything from food to building supplies to fuel and play a similarly impactful role.

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For the City of Valdez, the Valdez Pioneer Field airport sees over 40,000 takeoffs and landings each year connecting the community to the rest of Alaska. With the marine industry and its role as the southern terminus of the Trans Alaska Pipeline System, reliable air service is vital for industrial activity and tourism.

Analyzing the statewide multiplier effect, the 2020 Alaska Air Carriers Association study found that for every dollar of output in the air transportation sector, an additional $1.32 is generated in other industries across Alaska due to supply chain linkages and respending effects. This ripple impact highlights how aviation touches virtually every corner of the state’s economy. Between supporting remote communities, moving people and goods throughout an otherwise difficult to access landscape, and enabling industries from fishing and mining to oil and gas and tourism – it’s clear that aviation is Alaska’s economic circulatory system. Without it, many parts of the state simply could not function or be sustained as residents know them today.

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With over 500,000 square miles and relatively few roads, aviation plays an absolutely critical role across Alaska’s vast and diverse terrain. As the primary means of accessing remote villages, moving people and products between communities both large and small, enabling seasonal industries and supporting a wide variety of industries statewide – air transportation accounts for tens of thousands of jobs and billions in annual economic impact according to recent studies. For Alaska’s unique landscape and economy, aviation truly is the essential artery keeping opportunities and connections flowing throughout the entire state.

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