BurksHobby

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    OFFICIAL PRESS RELEASE

    COUNCILMEMBER BURKS TO SUPPORT HOBBY AIRPORTINTERNATIONAL EXPANSION

    Proposed Expansion to Create More Jobs at Both Airports, Transportation

    Choices for Houstonians

    Contact: FOR IMMEDIATE RELEASEEric J. WeinmannTel: (832) 393-3338Email:[email protected]

    Tuesday, May 8, 2012, [HOUSTON, TEXAS] Today, Houston City CouncilmemberAndrew C. Burks, Jr. announced his intention to support Hobby Airport terminal expansion andconstruction of a Federal Inspection Service (FIS) facility, allowing for international flights.

    Proposed expansion would allow Texas-based Southwest Airlines and other airlines to beginshort and medium-haul international service from the airport as early as 2015. The move willbring more transportation choices to Houston and create jobs in and around both George BushIntercontinental and William P. Hobby Airports.

    Regarding this decision, Councilmember Burks commented, Expanding transportationchoice and competition will make Houston an even greater city to live, work and dobusiness. More flights and competitive fares will result in increased tourism, especiallyretail tourism from Latin America a market we are currently losing to other cities withmore flight options. Best of all, international service from Hobby means jobs and an evenstronger Houston economy.

    Southwest Airlines is the first commercial carrier to express interest in international scheduledservice from Hobby, proposing to turn Houston into the companys Latin America and Caribbeangateway. In 2011, Southwest Airlines purchased AirTran Airways. AirTran flies domestically aswell asinternationally from current domestic ports in Orlando, Atlanta, Baltimore, and Denver tovarious points in Mexico, and the Caribbean. Beginning summer 2012, AirTran will expand itsinternational footprint with service from San Antonio to Mexico City and Cancun, from Austinand Chicago to Cancun, as well as new service from Orange County to Mexico City and CaboSan Lucas. Southwest Airlines intends for AirTrans international expansion to continue and

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    would like Houston to play a major role in Southwests international offerings as they expandbeyond the continental United States.

    Currently, Hobby Airport does not have the facilities to process passengers arriving frominternational destinations. The $100 million dollar terminal expansion and FIS at Hobby will bepaid for by Southwest Airlines and other users of the facility, and not through city taxes.

    Competition Creates Lower Fares, More Flights and More Jobs for Houstonians

    Current fares for passengers originating or terminating their international itinerary in Houstonare significantly higher than other Texas cities. Councilmember Burks remarked, A lack ofmeaningful competition puts Houstonians and area businesses at a disadvantage. Byintroducing new transportation choices for Houstonians, we lower fares, increase qualityand quantity of service and create jobs.

    Texas cities with service to international destinations from multiple carriers are at a competitiveadvantage to Houston. For example, a passenger flying from San Antonio to Mexico City viaHouston pays less than a passenger flying non-stop from Houston to Mexico City, on the sameflight. This is due to one carrier having a virtual monopoly on Latin American travel fromHouston. Free and fair competition allows for lower fares, higher demand, more flights andexpanded profitability for airlines.

    Allowing international flights from Hobby Airport will result in tremendous economic benefit forHouston. Currently, 235,000 Houston area jobs are either directly or indirectly related toHoustons three airports. Airline and airport specific job creation, support services jobs andincreased numbers of passengers visiting Houston may lead the creation of thousands of new

    jobs for Houstonians as the result of expansion, adding over $1.6 billion to our economy.

    The predicted economic success of all Houston air carriers has been illustrated by the Miami/Ft.Lauderdale area. Despite tremendous Latin America-facing growth by low cost carriers such asJetBlue and Spirit at nearby Ft. Lauderdale/Hollywood International Airport over the past few

    years, Miami International Airport has seen about four percent growth in seat capacity from2007 to 2011 to Caribbean, Mexico, and Central and South America. This growth occurreddespite increased competition and severe economic downtown. For Houston, increasedcompetition, combined with the nations fastest growing regional population, will supportincreases in domestic and international service for both airlines with Houston based hubs -United and Southwest. Increased demand, like in southeast Florida, will result in job gains atboth airports with all airlines participating in the Houston market.

    Mayor Annise Parker has not yet sent final wording of an ordinance to council regarding HobbyAirport expansion. However, Councilmember Burks has officially stated his support, in principle,for international service at Hobby. Councilmember Burks looks forward to participating in thepolicy making process in this important issue and ensuring meaningful economic development

    for decades to come.

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