City Council has approved a deal to have Southwest Airlines build a $100 million expansion of Hobby Airport to open it to international flights for the first time in more than 40 years. The 16-1 vote authorizes five international gates and a Federal Inspection Services facility at Hobby. Southwest will pay for the expansion in exchange for control of four gates, an exemption from rent on the newly constructed facilities and a rebate linked to any increased sales at the airport once the airline starts its routes to Mexico and the Caribbean in 2015. Houston Airport Director Mario Diaz promoted the expansion as having the potential to create 18,000 jobs and inject $1.6 billion a year into the local economy. He also predicted that the “Southwest effect” of lower fares would take hold if the airline were allowed to compete with United Airlines, which with its partners has a near monopoly on Latin American routes out of Bush Intercontinental Airport. “Today’s historic vote is going to allow the creation of international and federal facilities at Hobby,” Councilwoman Melissa Noriega said. United and Southwest engaged in a furious head-to-head battle over whether Houston should get a second international airport. They hired lobbyists, spent lavishly on print, broadcast and billboard advertising and repeatedly packed Council chambers with employees. Council approved the plan under the assumption that Southwest’s entry into the international market will lower fares, increase the number of fliers, and create jobs. The expansion plan also assumes that Houston will be able to get the customs officers to staff a new Federal Inspection Services facility at Hobby. The Federal Aviation Administration must also sign off on Southwest’s proposed new routes. To the end, United argued that the forecasted economic boon was based on faulty assumptions and produced its own study that concludes Hobby expansion will cost the area 3,700 jobs and nearly $300 million in annual economic activity. United officials have also said that an international Hobby would force it to reconsider plans for a joint city-airline billion-dollar expansion of Terminal B at Bush. United broke ground on the first phase of the project in January but has warned that the remaining $600 million of its investment is in jeopardy if Hobby expands. The overwhelming vote in favor of Southwest and Hobby signaled that by and large the Council subscribed to the simple argument that competition is good for the Houston economy. Though the vote was lopsided, it did not occur without some heartburn. Some on Council said they were torn about casting a vote over United’s objections. Councilman Mike Laster said he has several concerns, including the possibility of the city having to make $50 million in parking improvements at Hobby to accommodate increased air travel. http://blog.chron.com/houstonpoliti...roved-international-flights-planned-for-2015/
United pulled a, "I don't want them to play, if they do I will take my ball home and nobody can play on my court." Except that Southwest said, "Hey guys, I brought my own ball and you can come play on my court instead." Nobody likes a loser, United.
Nice. United all along threw a big bluff. They are going to keep servicing their current routes with success while still bringing in the mula.
Ever since using the rail to travel around Europe, I've always wished we would get something like this. You would think it would pay itself in a decade; it'd be so useful.
Wasn't it Southwest who thwarted the first attempt at a Texas Triangle high speed rail line in the early 90s?
i flew Southwest for the first time since they replaced their seats. Those new seats are extremely comfortable and the improved legroom was a bonus. Would love for the other airlines to follow suit.
I guess IAH's "opening another international airport will discourage international travel in Houston" argument didn't quite work.
Greenspoint is "around" IAH? Doesn't seem like you'll win that argument, brother. Greenspoint is a few if not a couple miles away from IAH, what percicles is talking about is the are immediately AROUND and CLOSE to the Hobby airport. He has a good point. Still, the area shouldn't matter. There should be more HOVs and airport-only traffic going through another toll road or an additional HOV lane to alleviate the additional traffic due to this expansion. Good for Hobby.
Neither are highways nor airports. Oh, and your statement is false anyway. Most HSR systems run an operational profit. Capital construction is what is subsidized, not standard operations.
That's certainly true - I'm just saying it doesn't just pay for itself. The real question should be whether the benefits outweigh the costs to taxpayers - not pretend that the thing is self-sustaining and thus an obviously good idea. That's true - but you can't just ignore billions of dollars in capital construction. If you give me billions of free infrastructure, it makes it much easier for me to make money. It doesn't mean that it pays for itself though.
yes. Southwest killed high speed rail possibilities. i'd imagine they'd still keep it from ever coming around since they still service the Texas flights pretty heavily
