Air service and the Minnesota economy

The interaction between individual industry sectors and the air transportation industry sector has been analyzed for the year 1993 using the Minnesota IMPLAN model and data from travel surveys of domestic and international travelers. Those industry sectors with the largest purchases of air transportation and those industries whose air transportation purchases make up the largest share of their total purchases have been identified. Expenditures and employment impacts of domestic and international air visitors to Minnesota have been estimated. Minnesota industries from which the air transportation industry purchases goods and services have been identified. Future trends in industry purchases of air transportation have been evaluated using Bureau of Economic Analysis forecasts of employment and Gross State Product and Bureau of Labor Statistics forecasts of interindustry transactions. Factors important to industry location including acccess to scheduled air service and trends in business air travel have been reviewed. Additional areas of study have been recommended to expand upon this research and to provide additional insights into the relationship between air service, economic activity and the potential for firm growth and relocation in Minnesota. This study was prepared at the request of the Minnesota Legislature.