Continental Airlines (NYSE: CAL) today released an economic impact study by NERA Economic Consulting (NERA) describing the airline’s impact on the New York/New Jersey region coinciding with Continental’s 30th anniversary of service to the area and its recent entry to Star Alliance. The study showed that in 2008, Continental’s operations contributed more than $6.3 billion in gross regional product to the region and an estimated 110,000 jobs amounting to more than $5.9 billion in personal income. As the leading carrier in New York, Continental offers more seats and serves more nonstop destinations from the New York area than any other carrier.
The report estimated that of the 110,000 jobs currently being contributed by Continental to the region, approximately 30 percent are in New York City, 12 percent in the rest of New York state, 31 percent in the Newark region and 27 percent in the rest of New Jersey.
"As significant as these results are, this study does not measure the full economic impact of Continental’s presence," said project director and senior vice president of NERA, Dr. David Harrison, Jr. "While the study measures aviation employment and passenger expenditures, including multiplier effects, it does not include other important aspects of Continental operations on the community. It is clear from the data that Continental’s presence makes the New York/New Jersey region a more attractive region for businesses to relocate or expand their operations due to the reduction in the cost of doing business associated with access to air travel."
Even excluding those substantial effects, the NERA analysis estimated that by 2030, Continental’s contribution would account for $11 billion in personal income and $12 billion in gross regional product, nearly double Continental’s contribution in 2008.
"On behalf of my more than 41,000 co-workers, we are pleased that Continental is making such a meaningful contribution in one of the most important regions for our company and our country," said Larry Kellner, Continental chairman and chief executive officer. "As the first member of the Star Alliance with a major hub in the New York City area, Continental will be connecting the region with 24 other carriers in a global alliance that offers more than 18,900 flights a day to 983 cities in 169 countries."
Continental commissioned NERA Economic Consulting (NERA) to conduct the study. NERA, one of the foremost global economic research organizations with extensive experience in transportation and regional economics, used a state-of-the-art computer model tailored to the local economy, as well as extensive data from Continental and outside sources, to develop an assessment of the airline’s current and future economic impacts on the New York/New Jersey region. The assessment includes the direct contributions made by Continental employees and passengers as well as the multiplier effects of increased spending on the regional economy. The study was performed by NERA, which has more than 600 staff members in eleven offices in North America as well as fourteen overseas offices. The result is one of the most complete and detailed studies ever completed concerning the contribution of an airline’s operations to a regional economy.
To view a full copy the NERA report, click here.
Background
As of March 2009, Continental and its regional partners served 146 nonstop destinations with 412 flights per day from Newark Liberty International Airport, making Continental Airlines the largest airline at the airport by both metrics. Together with its regional partners, Continental transported 70 percent of all revenue passengers at Newark in 2008. Continental also handled more than 120,000 tons of revenue freight at Newark in 2008, making it the largest freight handler among the airport’s passenger airlines. Continental has significant, though much smaller, operations at LaGuardia Airport (LaGuardia), where it ranked among the fifteen largest carriers (by passenger count) in 2008. From LaGuardia, Continental and its partners operated 16 flights per day as of March 2009.
Continental’s New York hub at Newark Liberty International Airport serves as a gateway to Continental’s international route system to Europe, Asia and Latin America. Continental’s hub at Newark Liberty currently provides daily or near-daily nonstop service to 26 European destinations, seven Canadian cities, eight Central American/Caribbean destinations, four cities in Mexico, plus Bogota, Sao Paulo, Beijing, Delhi, Hong Kong, Mumbai, Shanghai and Tokyo. Continental’s Newark Liberty service represents the only scheduled nonstop service from the New York City area to several important domestic and international destinations. Continental supplements its extensive Liberty operations with frequent nonstop service from LaGuardia to the airline’s hubs in Houston and Cleveland.
Continental Airlines is the world’s fifth largest airline. Continental, together with Continental Express and Continental Connection, has more than 2,400 daily departures throughout the Americas, Europe and Asia, serving 130 domestic and 132 international destinations. Continental is a member of Star Alliance, which provides access to more than 900 additional points in 169 countries via 24 other member airlines. With more than 41,000 employees, Continental has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries approximately 63 million passengers per year.
Celebrating its 75th anniversary this year, Continental consistently earns awards and critical acclaim for both its operation and its corporate culture. For the sixth consecutive year, FORTUNE magazine named Continental the No. 1 World’s Most Admired Airline on its 2009 list of World’s Most Admired Companies. For more company information, go to continental.com.
SOURCE Continental Airlines
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