OFFICIAL PRESS RELEASE COUNCILMEMBER BURKS TO SUPPORT HOBBY AIRPORT INTERNATIONAL EXPANSION

Proposed Expansion to Create More Jobs at Both Airports, Transportation Choices for Houstonians
Contact: Eric J. Weinmann Tel: (832) 393-3338 Email: eric.weinmann@houstontx.gov FOR IMMEDIATE RELEASE

Tuesday, May 8, 2012, [HOUSTON, TEXAS] Today, Houston City Councilmember

Andrew C. Burks, Jr. announced his intention to support Hobby Airport terminal expansion and construction of a Federal Inspection Service (FIS) facility, allowing for international flights. Proposed expansion would allow Texas-based Southwest Airlines and other airlines to begin short and medium-haul international service from the airport as early as 2015. The move will bring more transportation choices to Houston and create jobs in and around both George Bush Intercontinental and William P. Hobby Airports. Regarding this decision, Councilmember Burks commented, Expanding transportation choice and competition will make Houston an even greater city to live, work and do business. More flights and competitive fares will result in increased tourism, especially retail tourism from Latin America a market we are currently losing to other cities with more flight options. Best of all, international service from Hobby means jobs and an even stronger Houston economy. Southwest Airlines is the first commercial carrier to express interest in international scheduled service from Hobby, proposing to turn Houston into the companys Latin America and Caribbean gateway. In 2011, Southwest Airlines purchased AirTran Airways. AirTran flies domestically as well as internationally from current domestic ports in Orlando, Atlanta, Baltimore, and Denver to various points in Mexico, and the Caribbean. Beginning summer 2012, AirTran will expand its international footprint with service from San Antonio to Mexico City and Cancun, from Austin and Chicago to Cancun, as well as new service from Orange County to Mexico City and Cabo San Lucas. Southwest Airlines intends for AirTrans international expansion to continue and

would like Houston to play a major role in Southwests international offerings as they expand beyond the continental United States. Currently, Hobby Airport does not have the facilities to process passengers arriving from international destinations. The $100 million dollar terminal expansion and FIS at Hobby will be paid 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 Houston are significantly higher than other Texas cities. Councilmember Burks remarked, A lack of meaningful competition puts Houstonians and area businesses at a disadvantage. By introducing new transportation choices for Houstonians, we lower fares, increase quality and quantity of service and create jobs. Texas cities with service to international destinations from multiple carriers are at a competitive advantage to Houston. For example, a passenger flying from San Antonio to Mexico City via Houston pays less than a passenger flying non-stop from Houston to Mexico City, on the same flight. This is due to one carrier having a virtual monopoly on Latin American travel from Houston. Free and fair competition allows for lower fares, higher demand, more flights and expanded profitability for airlines. Allowing international flights from Hobby Airport will result in tremendous economic benefit for Houston. Currently, 235,000 Houston area jobs are either directly or indirectly related to Houstons three airports. Airline and airport specific job creation, support services jobs and increased 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 as JetBlue 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 from 2007 to 2011 to Caribbean, Mexico, and Central and South America. This growth occurred despite increased competition and severe economic downtown. For Houston, increased competition, combined with the nations fastest growing regional population, will support increases 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 at both airports with all airlines participating in the Houston market. Mayor Annise Parker has not yet sent final wording of an ordinance to council regarding Hobby Airport expansion. However, Councilmember Burks has officially stated his support, in principle, for international service at Hobby. Councilmember Burks looks forward to participating in the policy making process in this important issue and ensuring meaningful economic development for decades to come.

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