Saturday, September 8, 2012
Thursday, May 10, 2012
Fight over international flights at Hobby Airport heads to City Hall
HOUSTON (KTRK) -- New developments in the ongoing battle over whether Houston should be home to not one, but two international airports. City Hall was packed Tuesday with people on both sides of the issue, and Southwest Airlines made an offer on how to pay for the expansion at Hobby Airport.
That offer by Southwest is that the airline would pay for a customs facility at Hobby if City Council agrees to the deal. For now, there is no deal on the table, but both sides are lining up their forces, as witnessed by the crowds at Tuesday's presentation.
In airline terms, it was a cramped cabin in City Council chambers, full of executives and airline workers from Southwest and United Airlines; so many that two overflow rooms were required.
Hobby is where Southwest Airlines first operated in Houston 32 years ago. It wants Hobby to launch its first international operations in the next few years, but it needs the city to build five new gates and a $100 million customs facility to do it.
"There are any variety of ways that we can finance this $100 million project. If we can reach an agreement with you, I'll pay for the $100 million project," said Gary Kelly, Southwest Airlines Chairman.
Higher passenger fees on the flights to Mexico and South America would help pay for that.
Southwest claims the expansion would create more direct jobs at Hobby, have a trickle effect on support businesses in the area; but less than what a Houston Airport System study claims.
Southwest also claims it would make international fares more competitive. But United argues it would cost more jobs than it would create, saying that Houston doesn't need a second international airport, just Bush International Airport.
"So we all vigorously compete with each other there, and we would invited them to come use the facility that has already been built for that purpose at Intercontinental that the rest of us use," said John Gebo, VP of Finance for United Airlines.
The city airport system is backing the Hobby expansion, and so apparently are some city council members, judging by the tone toward United.
"Why'd you buy Continental Airlines anyway? Why'd you do it?" asked City Council Member Andrew Burks.
United says it might cancel $700 million in improvements to Terminal B at IAH and it might drop some service from Houston.
Earlier Tuesday
Community meetings are giving the public the chance to weigh in on the plan and what it would truly mean for residents, as well as Southwest Airlines and United Airlines. The fight between the two airlines has led to a standing-room-only crowd during today's public debate.
Whether council members think the expansion is good or bad, City Attorney David Feldman says Houston may not have a choice in the matter.
Speaking to a packed crowd of airline employees, the city attorney gave a legal opinion saying that due to funding the city receives from the FAA it is essentially obligated to accommodate any reasonable plan from Southwest for its proposed $100 million expansion to Hobby Airport.
The city could reject a proposal for Hobby to have those international flights if the airport lacks the capacity to accommodate international flights, if there were to be noise, environmental concerns or a threat to public safety. Groups have been canvassing the area near Hobby trying to inform residents about the project.
"Ten thousand jobs, which sounds like a good idea for the city, if they are 10,000 good-paying jobs," said Communications Coordinator Durrel Douglas with Texas Organized Project. "The people who live and work around Hobby want to make sure that if 10,000 jobs are coming to Hobby, that they are going to hire locally and that they are not going to implant people from outside of Texas in order to fill these jobs."
The international terminals at Hobby would be funded by city revenue bonds. The money would come from a $1.50 fee tacked onto tickets.
United disagrees and claims the deal places an undue burden on the city. According to United, the Hobby project would mean the loss of 3,700 jobs at Bush Intercontinental Airport and $300 million each year.
A Houston Airport System study favored the expansion saying it would create more than 10,000 jobs and put $1.6 billion into the local economy every year. Opinions also differ about the potential impact on passengers.
"It would divide the amount of FIS workers that we have because the government only funds so many for Houston, but about having to divide the resources between two airports and delays," said Patty Higgenbottom, United Flight Coordinator
"I think their benefit is lower fares and I think again we have a 40 year history; it's a mutually beneficial for everybody," said Southwest Airline spokesperson Paul Flannigan.
Bottom line is that the city attorney says the city would be wise to negotiate a deal now because if the city declines and the FAA gives approval for this international terminal, the terms could be less desirable for the city later on.
Presentations from Southwest and United are going on today at City Hall, and there will be public comments as well.
There are two more public meetings scheduled:
Doubletree Hotel JFK
Wednesday, May 9, 2012
6pm to 8pm
15747 JFK Boulevard
Houston, TX 77032
Presentation by Aviation Director Mario Diaz
Public Comment
Marriott Houston South at Hobby Airport
Tuesday, May 15, 2012
6pm to 8pm
9100 Gulf Freeway
Houston, TX 77017
Presentation by Aviation Director Mario Diaz
Public Comment
hobby airport, bush intercontinental airport, southwest airlines, united airlines, local
Friday, May 4, 2012
Rice study on Hobby international flights due out today
HOUSTON (KTRK) -- A Rice study on adding international flights to Hobby Airport will come out today.
The study was commissioned by United, which says allowing southwest to fly to Central and south America from Hobby will kill jobs at the big airport.
However, the Greater Houston Partnership came out in favor of the expansion at Hobby yesterday, saying it will bring jobs and travelers to Houston.
Residents around the commuter airport will make their feelings known at a meeting at Ripley House this weekend.
(Copyright ©2012 KTRK-TV/DT. All Rights Reserved.)Get more Local »
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Saturday, March 17, 2012
International flights out of Hobby?
Right now, Bush IAH is a major hub for international travelers. But plans are in the works that could land some international flights at Hobby Airport. Southwest Airlines wants to expand its presence there by adding flights to Mexico and South America.
When Southwest approached the city of Houston, asking to add international flights to Hobby, the city's aviation director listened.
"I'm a fan of competition. I'm a fan of growth for the economy of Houston," said Houston Airport System Director Mario Diaz. "I'm a fan of additional growth and services for all people of Houston. That's my job."
Then this week, Houston Mayor Annise Parker sent a memo to councilmembers, saying the city will undertake a study, saying that, "If we conclude that we support the creation of an international terminal at Hobby, then City Council will be asked to approve a memorandum of understanding on May 9."
Former Continental Airlines CEO Gordon Bethune says he and past Houston mayors developed IAH specifically as the city's international gateway, and it's a key reason for Houston's economic success to date.
"It's going to pop an economic balloon, which has been Houston's economic growth," he said. "It's going to split a big city -- six million people -- into two small cities. So we're going to have transportation like Austin."
United Airlines quickly sent a letter Friday, saying, "We believe this fundamental change in more than 40-year-old aviation policy would weaken the city's economy and kill far more jobs than it might create."
Councilmember Mike Sullivan says the United employees who live in his district are also worried.
"This is not simply 'We like one airline over another.' It's an economic engine for an entire region," he said.
The city says no final decision has been made.
"I think we ought to wait for the study," said. Diaz.
It's a tight timeline. The city wants to finish its city in the next week or so. Council members could vote on it in May.
We contacted Southwest Airlines for comment, but as of 5pm Friday, hadn't heard back.
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