Not so clear skies for expanding Hobby Airport into an international terminal.
A consultant’s study that forecasts an economic boon for Houston if Hobby is made into an international airport came under fire from city council members Monday as “biased” and “custom-made just to satisfy the demand of Southwest” Airlines, which is asking the city for permission to build a $100 million Customs facility and five-gate expansion at Hobby.
In a three-hour grilling of Houston Airports Director Mario Diaz, council members complained that the numbers in the study strained credulity, that they were kept in the dark about Southwest’s pitch for at least eight months, that airport officials have been condescending and that council and others should have been asked for input before Diaz recommended approval of the Hobby expansion.
According to the study, an international Hobby would lead to the creation of 10,000 jobs and inject $1.6 billion annually into the Houston area economy, as well as lower air fares. Comments from the general public have been overwhelmingly in support of Southwest’s plan to start flying to Mexico and the Caribbean.
“What may be the largest issue perhaps of the century, you all have blown it in my view,” Councilman C.O. Bradford told Diaz. “This rollout simply has been a complete disaster. I mean lack of transparency, arbitrary time lines, total disregard, disrespect for council. It’s just unconscionable.”
Councilman Al Hoang said, “I feel that this report is already biased, it’s already custom-made just to satisfy the demand of Southwest.”
Councilman Andrew Burks questioned the numbers in the report and singled out a projected fare of $133 to Bogota.
“You can’t even fly from Houston to Lubbock on Southwest for $133,” Burks said. “I really want to just throw this proposal out the window because, right now, when I see numbers that can’t match, it just don’t work for me.”
I can’t address Council members’ complaints that they have been disrespected, but from what I have seen of the study it seems pretty sensible to me. The case for international flights at Hobby is straightforward. There’s currently almost no competition for the market to Mexico and the rest of Latin America. Hobby is well suited to provide low cost carrier flights to that market, and Houston is about as ideal a population center for those flights as you could want. Several other cities have more than one international terminal, and recent history shows that not only can that work, the original carrier winds up increasing service as well. (See also page 18 of the study.) Unlike United, Southwest has other options for its international gateway if Houston passes; Orange County’s John Wayne Airport has a new Federal Inspection Service and would be a good alternative for Southwest.
Like I’ve said, I’m not the expert on this in the family – I’m working on getting her to contribute to this topic once more. I can’t speak to the specific objections Council members have raised. Perhaps the topline numbers – ten thousand jobs! $1.5 billion in economic activity! – are overstated. But honestly, does anyone believe that Houston fliers would not benefit from the increased competition? I don’t get it. I hope this was just Council doing its due diligence and not rejecting out of hand what looks like a good deal to me.