1. Changing the Region…Connecting the World

2. From the Economic Engine for Memphis … to America’s Aerotropolis
Airport Cities World Conference, April 2007
Frankfurt, Germany

3. How does an airport in a mid-size American city become a world leader?

4. Focus on Community Attributes and Build on Strengths
Memphis has been a center for trade since its founding in 1819
Trading post
River trade along the Mississippi
Rail leadership (5 Class-1 railroads)
Interstate access (I-40 and I-55, I-20, I-69 “NAFTA Highway,” plus seven U.S. highways)
Air cargo leadership was
the natural progression

5. Established Distribution Leadership Attracted a Revolutionary Concept
FedEx established at Memphis International Airport in 1973
Today its largest hub operation and corporate headquarters
Employs 40,000 people in the metro area
Is the catalyst for cargo leadership

6. Since 1973, The Night Skies Over Memphis Are The Busiest in the World

7. Focus on Community Attributes and Build on Strengths
Memphis has been an entertainment center and tourist destination for decades
Home of the Blues
Beale Street
Stax Records
Birthplace of Rock’n Roll
Sun Studios
Home to Elvis
Graceland is the 2nd most visited home in the United States
Pandas at the Memphis Zoo
Passenger traffic leadership was
the natural progression

8. International Tourism Leadership Attracted a Passenger Hub
A major airline hub established in 1985 by Republic Airlines
Today, one of three U.S. hubs for Northwest Airlines
Direct service to Europe (Amsterdam) established in 1995
Today Northwest offers 223 daily flights with direct service to 80+ cities

9. Northwest Gives Memphis Unprecedented Service for a City of Its Size?

10. Memphis International Airport Bringing it All Together
Economic Impact: $20.7 Billion Annually
1 in 4 jobs locally, nearly 166,000
Nearly $6 billion in annual earnings
This slide shows the full economic impact of MIA.
The total output of all airport activities and its directly connected business, plus the multiplier impact of that spending is a remarkable $20.7 billion each year. This is up considerably from the last study.
In addition one in 4 jobs in the local economy are tied to the airport or airport related businesses in some way. Those jobs generate nearly $6 billion in annual earnings.

11. Memphis International Airport Cargo Impact
World’s busiest cargo airport since 1992
FedEx Super Hub accounts for 93.6 percent of cargo at MEM
$19.5 billion of total economic impact from cargo operations
300 national and international nonstop destinations
Enhanced by superior highway, rail and port access

12. The Nightly FedEx Sort in Memphis is One of the Wonders of Modern Business

13. Worldwide Air Cargo Leader
2006 Cargo Traffic
Memphis million tons
Hong Kong million tons
Anchorage million tons
Seoul million tons
Tokyo million tons
Shanghai million tons
Frankfurt million tons
Louisville million tons
Singapore million tons
Los Angeles 1.91 million tons
Source: Airports Council International, Geneva, Switzerland, 2007

14. Memphis International Airport Passenger Impact
5,234,374 enplanements in 2006
9,000+ passenger operations related jobs
Direct and indirect impacts of passenger operations of $1.2 billion
9 Airline Brands serving Memphis
Northwest, Delta, American, Continental, United, US Airways, Airtran, America West, Frontier
284 Scheduled daily flights
80-90 cities served by daily nonstop service

15. Memphis International Offers Guests a Unique Memphis Experience

16. Per 1,000 Persons (per annum)
Domestic Departures
Per 1,000 Persons (per annum)
Cincinnati
Anchorage
Memphis
Atlanta
Las Vegas
Denver
Newark
Charlotte
Orlando
Minneapolis/St. Paul
Dallas/Ft. Worth
108
103
102 95 91 85 75 69 66 65 61
12. Seattle
13. St. Louis
14. Salt Lake City
San Francisco
Phoenix
Houston
Chicago
Detroit 60 59 56 53 44 42
Source: Global Aviation Associates, Washington, D.C., 2004

17. Cargo Drives Economic Impact Beyond Other Passenger Hubs
Airport/City
2004 Passengers
Metro Population
Economic Impact
Memphis
10,883,759
1,250,293
$21 Billion
Denver
42,393,766
2,330,146
$17 Billion
Phoenix
39,504,898
3,715,360
$14 Billion
Minneapolis
36,713,173
3,116,206
$11 Billion

18. Cargo Leadership Has Driven Diversity in Time-critical Distribution Operations
World’s largest laptop computer repair depot
World’s largest cornea bank
World’s largest DVD distribution center
Largest overnight drug testing center in U.S.
Medical device and surgical orthopedic kit distribution leader
Major pharmaceutical distribution hub
Solectron – Laptop repair company
National Eye Bank Center – corneas
Thomson Technicolor – DVDs shipped daily 1.2 million (1/2 of those shipped in U.S.)
Advanced Toxicology – drug testing (5,000 per night)
Medtronic and Smith & Nephew – medical devices and surgical kits
Pharmaceutical companies include Pfizer, Baxter, GlaxoSmithKline and others

19. To Support Growth, Memphis International Never Stops Investing
Projects underway or recently completed
Air National Guard new facilities
FedEx expansion
Cargo Central – airport based cargo facilities
Memphis-centric passenger terminal experience
Major roadway ingress, egress and signage improvements
New parking structure
Grand transportation terminal
New control tower

20. Memphis’ Business Focus for The Future is Airport-centric
Memphis Chamber Fast Forward Economic Development Plan
Logistics
Biosciences
Tourism
Music and Film
Logistics, Biosciences and Tourism are all dependant upon Memphis International Airport

21. Conclusions
Memphis International Airport not only defines Memphis today, but it also sets the stage for our future.
The airport is the largest single economic generator in the Memphis economy – and one of the largest in America.
Both cargo and passenger service – especially the FedEx and Northwest hubs – create a disproportionate business and tourism advantage for the Memphis region compared to other competing cities.
The future of Memphis’ business and tourism growth is contingent upon the continued success of Memphis International Airport and its principle airline partners.

22. These words have never been more accurate than they are today.
“Aviation in the first half of the 21st century will be as important to the country as the interstate highway system has been in the second half of the 20th century … There is no place in America that understands that more at its core than Memphis.”
Though delivered by then U.S. Secretary of Transportation Rodney D. Slater in April 1998 …
These words have never been more accurate than they are today.

23. The Future of Memphis is Best Viewed Through The Airport Control Tower