Airport News
Houston City Council has approved a deal with Southwest Airlines for the construction of a US$100 million international terminal at William P. Hobby Airport (HOU).
The airline will design and build five new gates and a customs facility at the airport and will also begin operating flights to Mexico and the Caribbean in 2015 as part of the deal.
Once complete, Houston City will own the terminal debt free and will provide Southwest with preferential scheduling rights in return. The airline will also pay no rent on use of four of the five new international gates and the customs facility. The fifth additional gate and the customs facility will be available for use by all other airlines operating at HOU who will pay rent.
“This is a big win for Houston and the traveling public,” said Mayor Parker. “Competition will lead to jobs, lower fares and a positive economic impact for the city. My goal is a strong international presence at Hobby and a continued strong international presence at Bush Airport. We will also continue our commitment to ensuring there is adequate customs and immigration staffing at Bush and at Hobby when international service begins there in 2015.”
As an additional incentive for airlines who agree to a long-term lease at HOU, the agreement allows a rebate of airport revenues for every additional passenger they bring to the airport above the base passenger levels in the year price to the start of international service, with a cap of US$3.9 million annually. This is based solely on an anticipated increase in concession sales inside the airport from additional passenger growth. The rebate is not automatic; if there is not increase in number of passengers through the airport, there are no payments.
Construction is planned for the spring of 2013. In the interim, the City will work closely with Southwest Airlines and Washington to obtain the necessary federal approvals as well as a commitment for an adequate number of customs and border patrol agents at both of its airports.
