Houston Mayor OK's Hobby International for SW

[Secret Squirrel]

http://blog.chron.com/newswatch/2012/05/southwest-gets-ok-for-international-flights-at-hobby/


Southwest gets OK for international flights at Hobby
In a news conference at Hobby Airport, Mayor Annise Parker announced Wednesday that Southwest Airlines will pay the estimated $120 million cost for a new international terminal at Hobby.

“This is one of those deals where I don’t have to spend the next 20 minutes explaining what’s in the deal,” Parker said. “Southwest has agreed to pay for all the expenses associated with building the expansion. That’s it.”

Parker said she would present a memorandum of understanding about the deal later Wednesday to City Council.

“And I look forward to an affirmative vote from City Council next Wednesday when it’s formally on the council agenda,” she said.

Read more: Southwest will like Houston airport choice

The mayor said the deal would not be financed by any city debt or facilities charges tacked onto the price of passenger tickets.

The airline will build five new gates according to city specifications and will get exclusive use of four of the new gates, Parker said.

“The fifth gate will be available to other carriers that choose to fly out of Hobby,” she said.

Once the improvements are made, the city will own them debt-free, Parker said.

Southwest Airlines CEO and President Gary Kelly thanked the mayor for her leadership and courage.

“Houston has been part of Southwest Airlines since the beginning in 1971,” he said. “It’s extraordinarily important for Southwest. We cherish your support. We’re not going to let you down.”

Kelly said the new terminal will bring lower fares and more competition to Hobby.

Both Kelly and Parker said they hope the expansion will help Hobby build back to the passenger level it had at its peak in 1997.

 

[redflyer65]

Oh boy, que Flop.

 

[Flopgut]

Hat's off to Gary kelly. He did it.

For purposes of this argument, I acknowledge it's a big win for SW and a huge loss for CAL/UAL. However, I'm pretty sure the City is eventually going to feel let down. The widebodies and the 787 are pbly headed to the Coasts. The next company like Exxon, that chooses to centrally locate somewhere, will choose somewhere other than Houston. In fact, it wouldn't surprise me if Exxon calls it off the Woodlands headquarters right now. The City will try to attract more non-US carriers to IAH, so, that will suck.

 

[redflyer65]

Flop,

This isn't meant as a cheap shot at you personally, but I think the nail in the coffin was the fact that the United CEO didn't even bother to show up (you had even mentioned that before). I can't fathom how he just blew it off. When asked, some UCAL attorney had to cover with some BS. And it came across exactly like that...BS.

 

[Flopgut]

Gee, you think so??? Yeah, in know that is a cheap shot, but I don't mean it personally. Of course that was the difference!! Your guy didn't even stop to take a piss!! No CEO left in America (maybe the world) does that. Congratulations, you have a great CEO. We used to as well.

Smisek isn't fit to lift GK's briefcase. He wasn't even a suitable fartcatcher to Bethune. He knows it. I think he hates Houston and is pbly glad this happened. He can upset the lives of all the houston workers (the ones he hates the most) immediately and blame the mayor.

 

[Secret Squirrel]

If the margins were so thin out of Houston that 30 some flights a day change the whole dynamic of IAH then you were an economic fart away from pulling out those planes anyway. In one breath people say how screwed SW is without fuel hedges, then with the next say how they are changing the whole dynamic out of Houston. CAL has been raping people out of Houston to Mexico for years.

 

[waveflyer]

Amazing that we had to go through all this for the right to build a $120M terminal that the city will now own.
Flop, the consequences you predict sound like hyperbole- a bit blown out of proportion.

And don't forget that it's that same CEO's plan to blame Southwest for your next paycut too. Question is, will you fall for it? So far, you have.

 

[Flopgut]

If the margins were so thin out of Houston that 30 some flights a day change the whole dynamic of IAH then you were an economic fart away from pulling out those planes anyway. In one breath people say how screwed SW is without fuel hedges, then with the next say how they are changing the whole dynamic out of Houston. CAL has been raping people out of Houston to Mexico for years.

Not correct. And easy does it on CAL, ok? I think even GK would admit, he pbly could not have made this happen if it were still CAL and Bethune was running it? (sure you disagree, but...)

I want to see your $130 dollar fare to Bogota before you say CAL was raping customers, ok? And I'll be watching it, because if SW can offer that for real, I'm moving to Bogota and I'll be one of your best customers. however, I buy quite a few tickets (when I can get them cheap) and usually SWA is not the cheapest where I go.

Houston dynamic? I'm tired of trying to explain it, and you just don't want to get it. UAL has too many bases that attract customers automatically. If you're going to have a hub like IAH, you really have to groom it, constantly. It is a very delicate balance. No one who operates a big piece of equipment wants to get drug down into a fight where they really aren't allowed to compete on a level playing field. The Luftansa 380? Pbly not going to show up in Houston either. Good thing they are in the middle of a complete taxiway overhaul just to accomodate it!?

 

[scoreboardII]

Not correct. And easy does it on CAL, ok? I think even GK would admit, he pbly could not have made this happen if it were still CAL and Bethune was running it? (sure you disagree, but...)

I want to see your $130 dollar fare to Bogota before you say CAL was raping customers, ok? And I'll be watching it, because if SW can offer that for real, I'm moving to Bogota and I'll be one of your best customers. however, I buy quite a few tickets (when I can get them cheap) and usually SWA is not the cheapest where I go.

Houston dynamic? I'm tired of trying to explain it, and you just don't want to get it. UAL has too many bases that attract customers automatically. If you're going to have a hub like IAH, you really have to groom it, constantly. It is a very delicate balance. No one who operates a big piece of equipment wants to get drug down into a fight where they really aren't allowed to compete on a level playing field. The Luftansa 380? Pbly not going to show up in Houston either. Good thing they are in the middle of a complete taxiway overhaul just to accomodate it!?

I'll wager within 1 yr of SWA flying HOU international that UCal international ridership is up 5%.

 

[fam62c]

Good thing SW deferred those -800's.......why does pushing back deliveries and adding significant amounts of international flying not seem to mesh? Also, think of all the increased flying out of LUV starting in late 2014, where do the planes come from? I think that Texas is the focus and Atlanta is going to be severely reduced in the coming years. DAL is pushing forward and SW is sitting still, that's the reality. I think that SW has figured out that fighting DAL in ATL isn't going to be worth it. None of the new international flying that AT is adding goes through ATL.