The study, commissioned by Etihad Airways, projects that by 2020, the airline’s operating expenditure and capital investments will almost double to support 46,200 American jobs and deliver $6.2 billion a year.
These are among the key conclusions of the Oxford Economics Report, released by Vijay Poonoosamy, Vice President International and Public Affairs of Etihad Airways, to quantify the economic contribution which the airline makes to the US.
The study assessed the airline’s capital expenditure with US suppliers and its operating expenditure in the country to calculate a value for direct, indirect, induced and catalytic contributions.
“Open Skies is good for competition and good for the consumer, but most of all today’s report shows it is also good for the American economy,” said Poonoosamy.
“Since 2005, the year before we started flying to America, our expenditure and activities in the US market have supported thousands of jobs and helped to fuel domestic economic growth,” he said.
“By 2020, Oxford Economics calculates that we will have committed $41 billion to the US gross domestic product (GDP) through a combination of direct expenditure on our day-to-day operations in the US and our long-term relationships with American partners including Boeing, GE Aircraft Engines and Sabre Airline Solutions.”
Since 2004, when it announced plans to acquire five Boeing 777-300ER aircraft, Etihad Airways has introduced or ordered almost 120 Boeing aircraft at a current list price of $36.5 billion, including more than 70 B787 Dreamliner and 25 next-generation B777X aircraft. The airline has also chosen US suppliers for other equipment ranging from cabin interiors to inflight entertainment systems.
Poonoosamy said a number of US airlines were also beneficiaries of Etihad Airways’ presence in the US market. In 2014, Etihad Airways delivered 182,000 connecting passengers onto US airlines including American, United, Delta and Jet Blue. This is forecast to grow to approximately 300,000 in 2015, an increase of 65%, following the introduction last year of new routes to Los Angeles, San Francisco and Dallas Fort Worth.
A further $1.3 billion will be spent in America by the 260,000 international visitors which Etihad Airways expects to carry to the US this year from a range of markets, including countries across the Middle East and Indian sub-continent.
The economic benefits of connectivity between the US and destinations in the Etihad Airways network have been valued by Oxford Economics at $410 million this year, rising to an expected $850 million by 2020.