Published on : Friday, July 14, 2017
Emirates supported more than 104,000 American jobs and contributed US$21.3 billion in revenue to the U.S. economy, including US$10.5 billion to the country’s gross domestic product (GDP) and US$6.4 billion of labor income in 2015*, according to a study conducted by Campbell-Hill Aviation Group, a well-established economic consulting firm to airlines, airports and the aviation industry, with clients including U.S. and foreign airlines, more than 30 airports, financial institutions and government agencies.
Released on the 25th anniversary of the first Open Skies agreement signed by the U.S., the objective of the study was to quantify the annual economic impact Emirates has on the U.S. economy.
Sir Tim Clark, President of Emirates said: “Campbell-Hill’s data reaffirms the significant stimulative effect of Emirates’ operations on the U.S. economy. It shows we’ve brought hundreds of thousands of new travelers to the United States, helped increase competitive air transport options for over a million American and international travelers who flew with us, and contributed to increased demand for U.S. exports in aerospace and many other sectors. Over more than a decade, Emirates has progressively grown cargo and passenger operations in the U.S. on the back of customer demand, and we will continue working with our partners across the travel, tourism, aviation, aerospace and other industries, to expand and improve the products and services that we offer to our customers.”
Sir Tim added: “Emirates has always embraced the goals of Open Skies which are to promote increased travel and trade, enhance productivity, and stimulate high-quality job opportunities and economic growth. Delta Air Lines, American Airlines, United Airlines and their proxies continually pour money in to lobby and make unfounded accusations against Emirates, but they have never filed a formal U.S. Department of Transportation complaint against Emirates, even though this is the statutory process long relied on by U.S. airlines to address allegations of unfair competition. That itself is telling. Sitting on record profits and with employment in U.S. aviation at an all-time high, the three carriers know they don’t have a leg to stand on. Evidence repeatedly points to the benefits that Emirates bring to U.S. consumers and the economy, and the total absence of alleged competitive harm.”
The catalytic impact of Emirates’ U.S. operations brought over 580,000 new travelers to the U.S. who otherwise would not have travelled there, and generated US$3.2 billion of new trade-based revenue. Indirect spending within the U.S. by newly stimulated passengers combined with new merchandise and service trade created approximately 30,000 jobs, and US$4.6 billion of new revenues for U.S. businesses, including US$1.7 billion of labor income and US$2.5 billion of GDP.*
“To produce this report we have spent many months analysing data and running it through an IMPLAN** analysis model which is specifically designed for economic impact analysis at the national level” said Dr. Brian Campbell, Principal at Campbell-Hill Aviation Group. “Our research shows how Emirates’ presence in the U.S. and the air connectivity it provides generates significant economic growth by increasing the free flow of international travel and trade. It is also important to note that the more than 100,000 jobs Emirates supports in the U.S. produce widespread benefits across diverse sectors of our economy from professional services, to manufacturing, to education, and to hospitality.”
Emirates expands global connectivity to and from the U.S.
Emirates’ U.S. economic impact has steadily and significantly increased in recent years. Since launching its initial service to New York’s John F. Kennedy International Airport in 2004, the airline today provides over 350 connections between the U.S. and the Middle East, the Indian Subcontinent, Africa and Asia, and offers travelers from the U.S. more choices of global travel destinations. Emirates flies more than 135 weekly passenger and cargo flights serving 14 U.S. gateways, including recently launched services to Orlando and Fort Lauderdale in Florida, as well as to Newark via Athens.***
The U.A.E. has been the largest export market for U.S. goods and services in the Middle East Africa South Asia (MEASA) region for eight consecutive years. In 2016, the U.S. enjoyed a US$19 billion trade surplus with the U.A.E., the U.S.A.’s third-largest globally****. Emirates’ expanding network has not only improved trade lanes to the U.A.E., but it has created new connections worldwide, stimulating new export and import merchandise and service trade for the U.S. In addition to improved access to the U.A.E. and other Middle Eastern markets, Emirates’ passenger flights provide efficient connections via Dubai to other markets in the Middle East, the Indian Subcontinent, Africa and Asia.
The world’s biggest supporter of U.S. commercial aerospace
Emirates purchases more Boeing 777 wide-body aircraft than any other company in the world. In 2015 alone, Emirates received delivery of 11 brand new Boeing 777-300ERs and one Boeing 777-200LRF. Based on U.S. export data for civil aviation aircraft and related commodities, these purchases in 2015 generated approximately US$1.5 billion of direct revenue to the U.S. aircraft manufacturing sector, supported approximately 1,700 direct jobs, US$230 million in labor income and contributed US$445 million to U.S. GDP.
In total, Emirates has 163 Boeing 777 aircraft in its fleet and another 171 on order***, in addition to parts and other commodities and services purchased for fleet maintenance. These aircraft are largely powered by GE engines and serviced by GE Aviation, which also counts Emirates as a leading customer. Emirates’ Airbus A380 fleet, the largest in the world, is also primarily equipped with U.S.-manufactured Engine Alliance engines and associated components.
25th Anniversary of U.S. Open Skies
The Campbell-Hill study results come on the 25th anniversary of the first Open Skies agreement signed by the U.S. According to the U.S. State Department, Open Skies agreements have vastly expanded international passenger and cargo flights to and from the U.S., promoting increased travel and trade, enhancing productivity, and spurring high-quality job opportunities and economic growth. Over the past 25 years, the U.S. has signed Open Skies with more than 100 countries from every region of the world and at every level of economic development. The U.S. and the U.A.E. signed an Open Skies agreement in 1999, paving the way for nearly two decades of closer economic and political integration.
The “Economic Impact of Emirates in the United States” documents can be viewed here:
* Annual Impact based on 2015 data and operations
** IMPLAN is an Input-Output analysis model (with software and data provided by IMPLAN Group LLC) designed for economic impact analysis at a regional and national level.
*** As of April 2017
**** data from the U.S.- U.A.E. Business Council factsheet