Study: BKG produced $91M economic impact in 2012

A Missouri Department of Transportation study found Branson Airport produced an economic impact of $91 million in 2012.

MoDOT's Statewide Airport Economic Impact Study was conducted to formulate the impact the state's airports have on regional economies, and is considered an update to a similar study administered in 2002 by the transportation department's aviation section, according to a BKG news release.

The latest study determined BKG played a role in creating some 1,460 jobs in the Branson area last year, with a total payroll of $35 million.

“As one of the newest airports in Missouri, Branson Airport has quickly grown to provide a major economic impact to Branson and the surrounding area” said Bryan Gregory, MoDOT aviation operations manager, in the release.

The addition of Southwest Airlines - which purchased Orlando, Fla.-based AirTran Airways in May 2011 for $1 billion and flew its first flight out of BKG this year - has boosted Branson Airport's seat count. The Dallas-based airline (NYSE: LUV) is scheduled to offer 42,042 seats Jan. 1-Feb. 12, 2014, an addition of 30,500 seats from the same period this year, when AirTran had 11,466 seats in the market, according to Springfield Business Journal archives.

However, the airport has failed to meet financial projections since opening in May 2009 after nearly nearly $115 million in revenue bonds were issued in 2007 and CEO Steve Peet invested some $40 million in the project. Since opening in 2009, the airport had posted $19 million in operational losses, not including depreciation and interests expenses, by the time it asked investors in late 2012 to pony up $23 million to support the cash-strapped operations by offering lenders priority over bondholders with regard to first right of foreclosure. Through June this year, Branson Airport reported operating income of $670,500, according to SBJ archives.