December 2011

ECONOMIC CONTRIBUTIONS OF KODIAK'S AVIATION INDUSTRY

As we all know, aviation is a critical component of the state's economy and the vitality of our communities. The Alaska Department of Transportation recently published a report to provide an assessment of the economic contribution of Alaska's aviation industry to the state's economy. The economic analysis was conducted by Northern Economics Inc. with the sub-consultancy of DOWL HKM. The study was conducted at 12 Alaska communities. Kodiak airport (ADQ) was of the selected airports.

The study is based on a large survey and interview effort targeting on-site leaseholders at selected airports in late 2010 and early 2011 as part of Alaska Aviation System Plan. On-site leaseholders covered all the businesses and organization located at an airport as well as airport managers and local community leaders.

According to the sub-report of the study, Kodiak airport (ADQ) is described as a multi-role facility, providing local employment and transportation, assisting in public safety by helping the U.S Coast Guard achieve its mission, and helping the seafood industry move fresh products quickly and efficiently.

Top 10 Destinations Communities from Kodiak

 Providing Employment
This analysis estimated that ADQ leaseholders and airport operations generated 139 direct jobs, $6 million in wages and benefits, and total non-wage and benefit expenditures of nearly $14 million in 2009. In-state labor income in 2009 was approximately $9 million, contributing to a total economic output of roughly $17 million

A Multi-Role Airport
Bureau of Transportation Statistics data for 2009 showed that more than 160,000 enplanements involved travel through ADQ in 2009. More than 2.6 million pounds of airmail moved through ADQ in 2009, with approximately 83% of this total either coming from or going to Anchorage (ANC).

Unlike many communities in the study, which are part of the Bypass Mail program and receive much of their mail by air, the only mail transported by air to ADQ is priority rate mail, almost all of which comes from ANC. The USPS transports all non-priority mail to Kodiak by barge.

Unlike almost all of the other communities in the study, ADQ handles more departing cargo than arriving with the margin nearly 2.5- to 1. In 2009, the airport shipped over 8M lbs. of cargo and only received 3.36 M lbs. The key difference is due to Kodiak's role as a major seafood processing hub while also serving as a regional transportation hub for surrounding communities located on the island and along the eastern shore of the Alaska Peninsula.

The analysis also estimates $31.7* million total initial expenditures that people and/or organizations spent to move goods and people to and from the airport.

*Does not include other expenditures such as baggage fees, dining, or other expenses incurred during travel.

Hello Everyone,

Happy Holidays and may we all look forward to a prosperous and exciting 2012!

During this holiday season, please keep in mind the reason for the season. When you do shop, try to shop locally. We are all on this Pacific island together! Let’s keep as much revenue here as possible. The Chamber supports Chamber members and families!

In November, we had a brand new Business After Hours at the Alutiiq Museum. Sven and his staff were awesome hosts! They gave away great door prizes and offered a terrific spread by Monks Rock. We had a very nice turnout, especially considering the busy night, yet some of us snuck out a little early to catch the incredible, “Les Miserable”!

There is no Business After Hours in December; however, the January BAH will be at Kodiak Athletic Club, a business I am somewhat familiar with. More information to follow.

Another brand new event we have planned for December is our Member Appreciation Party at Henry’s on Saturday, December 10th from 3:00pm to 6:00pm. We DO appreciate our members and we want to show you! We will have Henry’s appetizers, door prizes, and even some free Pull Tabs! Henry’s is the home of our Chamber Pull Tabs, which is a great part of our annual budget income, and helps to keep Member dues down. And for that, we appreciate Henry’s! At this Appreciation Party, if you bring a guest who joins the Chamber, they will get $50.00 off their annual membership for 2012, AND SO WILL YOU! Please plan on coming and hope to see you there!

We, your Chamber, wish you a very Happy Holiday and a blessed New Year!

Lindsay Knight
President

Ronald Sears, president and owner of Southern Alaska Forwarding, Inc. announces the merger and sale of his company to Pacific Alaska Freightways of Fife, Washington. This sale will take effect January 1st, 2012.

Mr. Sears advises that all the Kodiak staff, including Managers Mike York and Kathy Wise, will stay on with the change. Chuck Kollasch from the Seattle Office will stay on as the Kodiak-Seattle/Tacoma Manager.

Mr. Sears has been in business with Southern Alaska Forwaring for over 31 years of successful service in the shipping business to Kodiak from the lower 48 and Anchorage. He thanks all of his friends and customers in Kodiak for their great support over the years.

Pacific Alaska Freightways was started and originally owned by Sears' family and this will be a perfect fit for a smooth changeover.

P.A.F's terminal is located in Fife, Washington, not Seattle. Please contact the Kodiak office for routing and deliver information.