Toll road planned along Highway 249 in NW Houston as part of expansion project

HOUSTON (KTRK) -- If you live on the northwest side, plans are in motion that could ultimately make your life a lot easier. County officials are one step closer to possibly creating a new toll way along Highway 249 from Spring Cypress all the way to FM 1488.

Along Highway 249, the signs are up, even if the project to turn this stretch of Tomball Parkway into a toll road has not yet begun.

"It's whatever the government tells us to do," said local flower shop worker Cyndi Sharp. "Do we really have a choice?"

Sharp may not be sold on the toll road idea. But Commissioner Jack Cagle is a big supporter of the 249 toll road. To get it done, Harris County commissioners approved a memorandum of understanding to lend Montgomery County up to $20 million to help study the toll project.

"Without Montgomery County, we won't be able to service our constituents who live in Harris County," Cagle said.

The toll road will eventually go through Harris and Montgomery counties, so if and when expansion occurs, both counties can continue at the same pace.

"Six or eight years ago, people didn't want to hear the word toll road," said Bruce Hillegeist with the Greater Tomball Area Chamber of Commerce.

Hillegeist says his organization knows the reality is they won't get any expanded Highway 249 if there is no toll. So the first phase of the project is set to start this fall, with two more phases planned for years ahead.

"The Texas Department of Transportation really laid it on the line for us -- no toll, no road," Hillegeist said.

A commissioner with Montgomery County tells Eyewitness News he also supports the toll road project.
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Exxon Mobil considering Baytown expansion

  BAYTOWN, TX -- Exxon is considering a multi-billion-dollar expansion of its giant petrochemical complex east of Houston.

The energy company has filed applications with the U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality for permits to build an ethane cracker at its Baytown complex and two high performance polyethylene lines at its nearby plastics plant in Mont Belvieu.

Exxon says the review and approval process from government regulators should take about a year. It would then decide whether to move forward with the project. The company estimated Friday that the expansion could involve about 10,000 construction jobs, then 350 permanent jobs once the new facilities would be up and running in 2016.

Exxon Mobil Corp.'s Baytown complex already is the largest in the nation.

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More fallout from Hobby expansion announcement

HOUSTON (KTRK) -- Just one day after Houston City Council members approved the controversial expansion of Hobby Airport, there are more rumblings that United Airlines could start to cut ties with Houston, years before international travel at Hobby takes flight.

As someone who flies both Southwest and United, Neil Aussenberg says he was surprised by United's reaction to city council's vote on Wednesday.

"United was acting like a little child when they said they're going to lay off people. They had it all prepared so that when they voted it in, they immediately said they're going to lay off people and I think was really childish," said Aussenberg.

But even as United says it's reducing flights in just a few months, Mayor Annise Parker wasn't buying the argument.

"They committed early on we would be the largest hub for the largest airline in the world, and that's the commitment I expect them to keep," Mayor Parker said.

When we asked the mayor if she thought United was bluffing, she replied, "You'd have to ask United."

United Airlines points to their study which shows in a typical flight to South America that only 1.5 of the seats are actually profitable, and even potential loss of flights will have immediate repercussions. Airline expert Darren Bush says while layoffs are possible, the cause may be more complicated.

"The economic conditions might call for those reductions anyway. Pointing out these jobs are specifically related to something that might, might happen with Southwest at Hobby in three years is a bit of a stretch," said Bush.

He says the real impact of Southwest flying out of Hobby won't be as bad as United predicted. But it won't be as good as Southwest touts. Competition may lower fares, but if fuel costs are too high, neither airline will make any money.

"You can assume things about fuel costs, or passenger demand, but it's really hard to predict what's going to happen three or four years out," Bush said.

Stay with Eyewitness News for the latest on this story.

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City Council approves Hobby Airport expansion deal

  HOUSTON (KTRK) -- Houston is one step closer to having two international airports. City Council Wednesday morning approved the $100 million expansion of Hobby Airport in southeast Houston to allow for international flights.

The roar of approval from Southwest Airlines employees was deafening. The months long fight for international flights out of Hobby Airport was finally over as City Council approved the memorandum of understanding in a landslide 16-1 vote.

"We have had tremendous support. We have always had the best interest of Houston in our minds and it's a great opportunity to lower fairs and allow more people to fly," said Southwest CEO Gary Kelly.

As Kelly beamed, United Airlines, which fought vehemently against the expansion, says flights and jobs would be lost at Bush Intercontinental Airport as early as later this year.

"We're going to be looking to cut our fall flight schedule as a result of this and there is going to be jobs that are associated with that are going to be lost. We are going to do our best to help our employees with voluntary programs and finding them locations in other places if we can. So we want to mitigate the harm, but we said all along this would be the outcome of this," said Stephanie Buchanan with United Airlines.

The only 'No' vote was by City Council Member Jerry Davis, who also said he is worried.

"We just were not confident in everything going the way it was proposed," Davis said.

However, Mayor Annise Parker points out flights are not scheduled until 2015, and she believes the greater Houston community is big enough to support two international airports.

"Once everything calms down a little bit, we're going to have a rational discussion, and we'll be long-term partners and have a productive partnership," Mayor Parker said. "The competition is at least three years away, so for United to say that there are going to be 1,300 people laid off next week or so, that's just not reasonable."

The mayor announced the deal last week. The $100 million plan would be paid by Southwest Airlines. The airline would add a customs facility and five international gates and offer flights to the Caribbean and Latin America.

United says it already operates some flights at a loss at Bush Intercontinental Airport because it was anticipating growth, but with Southwest taking away that potential growth, they say they want to stem the bleeding and move the non-profitable flights away sooner, and bringing in fewer international flights.

"The Dreamliner was, you know, going to come to Houston based on the assumption that we'd have, you know, international service that made sense," Buchanon said. "Flights like Auckland which we were going to do on the Dreamliner isn't going to make sense anymore."

Southwest brushes away United's doom and gloom projections, convinced that competition will be good for both airlines.

"It's all about competition, it's all about lowering fares and making travel more affordable, and for the first time now international markets to the south," said Kelly.

Houston leaders say there is enough business for two international airports in America's fourth largest city.

"It's just a bit puzzling to me that they would make the announcement right after the council vote," said Council Member James Rodriguez. "Southwest hasn't built the facility yet, they haven't started international flights. We are looking at 2015. And so to announce that they are not competing yet is probably a bit premature."

Last week, United Airlines CEO Jeff Smisek spoke with Eyewitness News and said that the airline maintains that any job losses are not retaliation.

"I am not threatening anything. This is what will be forced to happen. This isn't a threat. I mean, this is nothing I want to do. Why would I ever want to do that? This is a natural reaction to a decrease in demand and a decrease in the profitability of the flights here," Smisek told Eyewitness News.

United on Wednesday sent out an employee bulletin about layoff possibilities which you can read here.

Stay with Eyewitness News for the latest on this story.

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Is Houston ready for canal expansion?

HOUSTON (KTRK) -- The countdown is on in a major expansion of the Panama Canal. It's a project that could have major economic implications around the world and especially right here in Texas; that is, if we're ready.

The Panama Canal is being widened to accommodate much bigger vessels, which means much more cargo will be coming our way at the Port of Houston.

The canal is just two years away from the enormous expansion, a $5 billion construction project sure to have a huge financial impact on the southeast Texas coast.

Panama is adding a third set of wider, deeper, and longer locks which allow much larger ships, called post-Panamax, to slip through the canal and speed the shipment of goods.

"The expansion allows us to keep supplying and feeding global markets," said Capt. Bill Diehl with the Greater Houston Port Bureau.

Captain Diehl used to live in Panama, among its three million people working at the canal. On Thursday, he was in downtown Houston at a State House Transportation Committee meeting at which the canal expansion and whether or not we're ready for it when it opens in 2014 was the main topic of discussion.

"We're not gonna open the door and it's gonna be a flood of people into the concert. We're going to continue to grow in our capacity. And that's what the canal is about really," Capt. Diehl said.

But there will be steady growth and it will be obvious.

"It's gonna have some impact, especially on roadways and railways," said Port of Houston Chairman Jim Edmonds. "How ready is Houston? How ready is Texas? We've been working on this for quite a few years. Our plans are already in place. We continue to build more docks."

There is $120 million dollars worth of dredging that needs to happen and a lot of infrastructure work. The bottom line today being that Houston is not ready yet, but it's getting there.

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ABC13 Exclusive: Southwest CEO speaks out about proposed Hobby Aiport expansion

HOUSTON (KTRK) -- United Airlines CEO Jeff Smisek exclusively told Eyewitness News reporter Ted Oberg the politicians celebrating Wednesday will be to blame for hundreds of lost jobs in the future. And now a one-on-one with the man at the head of Southwest, as his airline tentatively claims victory in the battle over international travel.

Southwest Airlines says it will take 15-20 years to make back its $100 million investment at Hobby Airport. We started our conversation asking why it's worth waiting so long and why it's so valuable to do international business here in Houston.

Gary Kelly: You know what the best opportunity is? Right here in Houston. And you know why? Because the fares are so high. Why is that? Because there is no competition. It is a high fare market, that is monopolized by United out of Intercontinental Airport. Those are the kind of opportunities we look for around the country.

Ted Oberg: How long do you expect fares to stay low? Can I come back to you in two years, compare apples to apples and you're confident your flight will still be cheaper?

Gary Kelly: Absolutely, absolutely.

It is a promise that won't come true for years. If Southwest really does drive international fares down, they won't start until 2015. In the meantime, United Airlines says it will mean hundreds of job losses.

Ted Oberg: Do you think United is scared of you?

Gary Kelly: You know I can't really say what motivates any of our competitors. Clearly this is an attempt to keep us from growing.

Ted Oberg: Will it hurt United?

Gary Kelly: That's for them to assess, but clearly it should not be the policy of a city or government to protect one company.

The $100 million deal is not done -- not yet -- and while Kelly and his co-workers were celebrating Wednesday morning, he knows he's not even close to selling his first international ticket out of town.

Ted Oberg: It appears you have the votes, next week, week after, whenever council passes it on. You have a worthy adversary in United Airlines is probably a nice way of saying it. How tough do you expect this fight to be in Washington?

Gary Kelly: Well, I can't speculate about what might happen in the future. We're used to this. We've had opposition from legacy carriers from the very beginning, before we even started flying. So it wouldn't shock me if we continue to see resistance going forward. But we're on the side of right here and the administration is I know for a fact is concerned with creating jobs. This is a great way to create jobs.

Ted Oberg: Do you believe 10,000 jobs can be created as a result of this deal in Houston?

Gary Kelly: I believe it's more than 10,000 jobs. No one can guarantee what the jobs are, but opportunities to grow are hard to come by and this is a wonderful opportunity to grow, not just at Hobby but also at Bush.

That 10,000 job figure comes from a city report. It's been widely criticized as outlandish, but Southwest embraces it despite the fact they don't anticipate hiring any more than 50 to 100 additional Southwest employees at Hobby.

Our entire conversations with the CEOs of United and Southwest are in the video player at the top of this page.

Stay with Eyewitness News and abc13.com for the latest on this story.

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Mayor, Southwest Airlines agree on Hobby Airport expansion

HOUSTON (KTRK) -- After months of debate over job losses, job creation, increased competion and increased confusion, Mayor Annise Parker says Hobby Airport will expand to allow for international flights.

Surrounded by Southwest employees and the airline's CEO, Mayor Parker officially announced that she is ready for the Hobby expansion plans to take off.

"Southwest Airlines has agreed to pay for all off the expenses associated with building this expansion," she said.

Southwest Airlines now says it will pay for the $100 million expansion project that, when finished, will result in five new international gates at Hobby. Southwest would control four of them.

CEO Gary Kelly made big promises.

"We will bring lower fares. We will bring more competition. It will be more jobs and we're very, very excited about all of those opportunities," he said.

United Airlines, which has been long against the expansion, on Wednesday released a statement, saying in part, "Splitting the city's international air service will harm the city's competitive advantage and cost jobs."

Mayor Parker defended the job growth scenario with Southwest's expansion, but would not say exactly how many will be created.

"I'm not going to get into discussion of how many angels can dance on the head of a pin. Is it 10,000 jobs, is it 5,000 jobs? Jobs are good for Houston," Parker said.

It will be awhile before we know if this plan will actually create jobs at all.

First, it needs City Council approval, which is scheduled for a vote next week.

Passengers we talked to say they hope it will lower fares.

"I would say more convenient, hopefully more cost effective, if they can balance out the cost versus other airlines cost," Southwest passenger Cindia Strauss said.

The big vote is scheduled for next week, but it could face the standard one-week delay. The proposal needs nine yes votes. On Wednesday, seven council members and Mayor Parker attended the conference, so that makes eight. But Mayor Parker says she's confident she has the votes. We'll see.

Before the announcement of this morning's news conference, United Airlines CEO Jeff Smisek, in an ABC13 exclusive interview, said United would lose 1,300 jobs if the Southwest expansion at Hobby happens.

United said earlier this month it might cancel $700 million in improvements to Terminal B at IAH and it might drop some service from Houston.

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Another group backs Hobby expansion proposal

HOUSTON (KTRK) -- There's new and significant support for expanding Hobby Airport and adding international flights.

For weeks now, one of the hottest topics around Houston has been the future of Hobby Airport. Southwest Airlines wants to fly international flights out of Hobby, and now the Greater Houston Partnership is the latest business group to push its support for the idea.

In a statement released to Eyewitness News, GHP Chairman Tony Chase says:

"This is a critically important issue for Houston. We want two vibrant airports and the benefits that go along with it: more jobs, more travelers, and a competitive advantage for our city."

However, critics like United Airlines and others have gone on record against the idea, saying expansion at Hobby will hurt activities at the other airport and potentially cost jobs at Bush Intercontinental.

Meantime, Texas Organizing Project is working hard to make sure the community's concerns over the controversial issues are heard.

Members of the advocacy group are meetings and canvassing the southeast side talking to neighbors. Durrell Douglas tells us about some of the issue neighbors are bringing up.

"Who is going to make sure that those streets, like Mykawa and Bellfort, that flood every time we get a heavy rain are going to be taken care of? If this is going to bring 10,000 jobs, like the study stated, are those jobs going to be given to people here in Houston, and more specifically to the people that live and work around Hobby Airport?" Douglas said.

Some community members are pointing out they thinks it's rather interesting the Greater Houston Partnership would announce its support for the airport expansion on the same day City Council approved its $360,000 consulting bid for the Houston Airport System.

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