March 22, 2012 Mr. Mario C. Diaz Director of Aviation Houston Airport System 16930 JFK Blvd.

Houston, TX 77032 Dear Mr. Diaz, A lot has been said in recent weeks about the potential expansion of international flights at William P. Hobby airport (HOU) including the construction of a new FIS facility and related terminal expansion. While there are two main forces on opposing sides of this particular issue, I am writing to explain why allowing international expansion at HOU is the best decision for the industry and for the citizens of Houston. 1. Houston Airport System (HAS) should always support airline expansion at IAH or HOU because the net effect is always a positive one for the community. Chapter Nine of the Code of Ordinances succinctly embraces this point. Take for example Sec. 9-2(b) which charges HAS with several duties, including, To do all things necessary to assure the development and growth of air passenger and air cargo traffic to, from, and through the city. Growth and development of our three airports creates jobs, promotes commerce, and makes Houston a more attractive city in which to do business. International airline flights at HOU will have a positive effect on travelers (more options, better fares), developers (terminal expansion), the local job market, ground transportation providers, hotels, and restaurants. The list goes on. 2. Bush Intercontinental (IAH) is, and shall remain, the primary international gateway in Houston, even if expansion is allowed at HOU. Many Houstonians are excited about terminal improvement at IAH, including terminal D and the potential international destination expansion it will allow. IAH offers the necessary combination of land area, available runway length, and apron space that make it the obvious choice for long-range international flights. The types of flights envisioned by Southwest are limited in range due to both runway lengths at HOU and the type of aircraft flown by Southwest. Accordingly, the only markets affected include Canada, Mexico, parts of Central America and possibly the Caribbean. A significant part of Uniteds international market is untouchable by Southwest. 3. United says, Southwest can come to IAH, but whats keeping United out of HOU? Nothing. In fact, Continental operated flights to and from HOU until just a few years ago. United still operates a 737 maintenance base at HOU. If United wanted to directly compete with Southwest for HOU-originating international traffic, they could do so with relative ease.

Mr. Mario C. Diaz Page 2 4. International expansion at HOU creates jobs in many areas, including positions with Customs and Border Protection (CBP) and the Transportation Security Administration (TSA). Uniteds alarmist letter painted a distorted picture of international expansion at HOU. As Southwests VP of Airport Affairs described, federal employee staffing functions in response to commercial expansion at city airports. An airports need drives the federal government to staff according to flight volume. To put it simply, if we build it, they will come. 5. To allow international expansion at HOU is to give the citizens of Houston a choice in air carrier for certain routes and more fare competition. To block international expansion is to grant United an unfair monopoly that penalizes our citizens and stifles growth of the airline industry. Recent reports from travelers (including our own Mayor)1 highlight the need for more choices when it comes to selecting an airline. Ticket price, although a major factor, is only one factor consumers consider. Many travelers will base their choice of airline on prior experience. For years, our citizens have had only one choice when purchasing direct travel from Houston to certain international destinations. There is now a real possibility of healthy competition on the horizon. I encourage you to consider all opinions regarding this important decision. I am confident the data will show that expansion at HOU is the best choice for Houston for many reasons. Sincerely,

Josh Verde President Aerovise, LLC josh.verde@aerovise.com

cc:

Mayor Annise Parker All Council Members

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