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In this study, each category of aircraft is divided into its major constituent components. This allows a more correct allocation of funds to industry groups. The cost of engines – whether purchased by airframe manufactures directly and included in their indirect expenditures or purchased separately by the buyers (similar to the way commercial aircraft engines are purchased separately from the purchase of the airframe)
– are allocated to the engine manufacturing sector. In a similar fashion, avionics are allocated to the Radio and TV Communications sector. Each aircraft type has a unique share of airframe costs, engines, avionics, and interior. Thus, the generalized I/O for aircraft is made specific to individual aircraft types.
As the example below (Table 7) shows – based on approximate shares for an aircraft within the GA category – this allows a finer detailed split of effects on sales. This “hybrid” aircraft represents the average distribution in the main categories of expenditure on a new aircraft. The column on the far right is the new I/O category produced using these splits. The column then shows the approximate direct spend by industries for each dollar of sales of a hybrid aircraft.
Table 7
Direct Contribution (A-matrix) Showing Hybrid Aircraft Direct Contribution Vector

Thus, for a dollar of direct purchases of a GA aircraft, it is expected that, in addition to the value generated by the aircraft itself, they will buy about 4.4 cents from other aircraft integrators and parts manufactures. Aircraft engine manufacturers’ main suppliers are other companies in the engines and turbines category, which make the parts that go into aircraft engines (these two sectors are virtually the same companies). Approximately 26 cents of each dollar will contribute to GDP in the form of value-added. The lion’s share of this, or nearly 22 cents, will be in the form of wages.
However, once all the direct and indirect flows that are associated with making an aircraft are taken into account (Table 8), the full impact of that dollar of sales can be observed. Thus, for every dollar of sales of general aviation aircraft, one can expect $2.51 in direct and indirect benefits to the economy. This excludes the impact that comes from the wages and salaries of the workers in the industries affected. They spend their money throughout the economy. Table 9 indicates the distribution of private consumption expenditures of these workers and the industries mainly impacted directly. Each of these industries then buys from other industries producing a multiplier on wages of slightly more than two times the wages and salaries.
Table 8
Hybrid General Aviation Contribution Based on Inverse Matrix — Showing Multiplier Associated with Direct Sales of New Aircraft

Table 9
Personal Consumption Expenditure Vector (Distribution of Private Consumption Expenditures)

Table 10 shows how this money is apportioned, in general, across the 50 states. The main States that enjoy benefits are shown individually, while the rest are aggregated into a single category called Other States. The concentration of aircraft production can be seen by comparing the share of total industry output in each State.
International transactions are excluded based on shares developed by GAMA for each aircraft type. Foreign aircraft sold in the United States have significant US content. This content has also been captured using shares of each aircraft type and the amount spent on each foreign-made aircraft.

Table 10
Gross State Product Distribution by Industry Group

 

 

Appendix A
1. Data Sources and Assumptions
Data Sources and Assumptions

2. Variable (hourly) Operating and Maintenance Costs

Variable (hourly) Operating Costs

3. Fixed (annual) Operating and Maintenance Costs

Fixed (annual) Operating Costs

　
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