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The Duluth International Airport aviation business cluster: The impact of COVID-19 and the CARES act

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Listed:
  • Rust, Daniel L.
  • Stewart, Richard D.
  • Werner, Thomas J.

Abstract

The COVID-19 pandemic struck the U.S. aviation sector in March 2020, reducing air passenger volumes by more than 50 percent versus March 2019. Airlines dramatically reduced available seat miles, leaving airports nearly vacant as the pandemic took hold. The Federal government responded with the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provided aid and relief to airlines and airports. The Act generally achieved its intended purpose as a stopgap measure, but not all segments of the nation's aviation industry received immediate relief. Utilizing data from the Duluth Airport Authority, airport tenants, as well as governmental sources, this study examines the economic impact of the pandemic during 2020 on businesses in the Duluth, Minnesota, aviation business cluster and the efficacy of Title XII under Division B of the CARES Act in addressing the adverse effects of the pandemic on the Duluth aviation cluster. This paper does not make a judgment whether future relief packages should or should not be offered.

Suggested Citation

  • Rust, Daniel L. & Stewart, Richard D. & Werner, Thomas J., 2021. "The Duluth International Airport aviation business cluster: The impact of COVID-19 and the CARES act," Research in Transportation Economics, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:retrec:v:89:y:2021:i:c:s0739885921001074
    DOI: 10.1016/j.retrec.2021.101135
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    References listed on IDEAS

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    1. Yossi Sheffi, 2013. "Logistics-Intensive Clusters: Global Competitiveness and Regional Growth," International Series in Operations Research & Management Science, in: James H. Bookbinder (ed.), Handbook of Global Logistics, edition 127, chapter 0, pages 463-500, Springer.
    2. Fiorenza Belussi & Katia Caldari, 2009. "At the origin of the industrial district: Alfred Marshall and the Cambridge school," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 335-355, March.
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    Cited by:

    1. Meihong Ke & Douglas Baker & Christy Collis, 2023. "Impact of Airports on Landside Industrial Development: A Case Study of Brisbane Airport," Land, MDPI, vol. 12(7), pages 1-20, June.
    2. Alonso, Juana M. & Socorro, M. Pilar, 2024. "Blind booking: The effects on passengers' purchase decision, airlines’ profitability, and tourist destinations," Research in Transportation Economics, Elsevier, vol. 105(C).

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    More about this item

    Keywords

    Aviation clusters; COVID-19; CARES Act; Duluth international airport; Pandemic; Disaster recovery; Aid; Relief;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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