I: Glossary of Terms

Air Traveller Security Charge (ATSC) : A fee collected by the Federal Government from air travellers to help fund security improvements at Canadian airports. The fee varies by region of travel and is charged to the passenger per enplanement.

Airport Improvement Fee (AIF) : A fee collected by the airport authority from passengers to help with funding capital improvements at the airport. In some regions of Canada, this is also referred to as the Passenger Facility Charge (PFC).

Contract Work : Any work which is done for a company by an individual who is not on the payroll or work done for a company by another company. Generally speaking, firms will contract out work in areas in which they do not have expertise or when there are cost advantages to doing so.

Direct Employment : Direct employment is employment that can be directly attributable to the operations in an industry, firm, etc. It is literally a head count of those people who work in a sector of the economy. In the case of the airport, all of those people who work on airport property and in an aviation related capacity would be considered direct employment.

Economic Activity : (also Output, Production) The end product of transforming inputs into goods. The end product does not necessarily have to be a tangible good (for example, knowledge), nor does it have to create utility (for example, pollution). Or, more generally, the process of transforming the factors of production into goods and services desired for consumption.

Economic Output : (also Economic Activity, Production) The end product of transforming inputs into goods. The end product does not necessarily have to be a tangible good (for example, knowledge), nor does it have to create utility (for example, pollution). Or, more generally, it is defined as the process of transforming the factors of production into goods and services desired for consumption.

Employment Impact : Employment impact analysis determines the economic impact of employment in terms of jobs created and salaries and wages paid out. In the case of the airport, the direct, indirect, induced, and total number of jobs or person years created at the airport are examined to produce a snapshot of airport operations.

Full Time Equivalent (FTE) : (also Person Year) One full time equivalent (FTE) year of employment is equivalent to the number of hours that an individual would work on a full-time basis for one year. In this study we have calculated one full time equivalent year to be equivalent to 1,832 hours. Full time equivalent years are useful because part time and seasonal workers do not account for one full time job. [1]

Gross Domestic Product : (GDP, also value-added) A measure of the value added by labour and capital services used to produce final goods and services, as a result of economic activity in the nation. This measure is net of the value of intermediate goods and services used up to produce the final goods and services.

Ground Transportation : Ground transportation at the airport includes any vehicles which transport passengers from the airport to the cities or from the cities to the airport. This would include taxicab service, limousine service, hotel van service, and transportation network companies (TNCs) or rideshares like Tapp Car and ReRyde in Winnipeg. Valet services as well as skycaps are also categorised as ground transportation.

Indirect Employment : Indirect employment is employment which results because of direct employment. For the airport, it would include that portion of employment in supplier industries which are dependent on sales to the air transport sector. In some cases, contract work would be considered indirect employment.

Induced Employment : Induced employment is employment created because of expenditures by direct and indirect employees.

Multiplier Analysis : Analysis using economic multipliers in which indirect and induced economic impacts is quantified. Essentially, a multiplier number is applied to the "directly traceable economic impact" to produce indirect and total effects (see Multiplier.)

Multiplier : Economic multipliers are used to infer indirect and induced effects from a particular sector of the economy. They come in a variety of forms and differ in definition and application. A multiplier is a number which would be multiplied by direct effects in order to calculate indirect or induced effects. In the case of the airport, as in many other cases, multipliers can lead to illusory results, and thus must be used with great care.

Seasonality : Seasonality results when the supply and demand for a good is directly related to the season in which is consumed. For example, ski resorts experience changes in net income as a result of seasonality. Airports and airport services also experience seasonality as a result of vacation times for families (typically during the summer) and/or temperatures abroad (typically at Christmas time). As a result of seasonality in demand for flights, some air carriers increase frequency of flights to certain areas during the busy season.

Tenant : A firm which pays a lease to a leasing company or to the airport authority directly.

Value-Added : (also GDP) A measure of the money value of final goods and services produced as a result of economic activity in the nation. This measure is net of the value of intermediate goods and services used up to produce the final goods and services.

  • 1 The Dictionary of Modern Economics, David W. Pearce, General Editor, The MIT Press, Cambridge Mass.,1984