Southwest Airlines (WN, Dallas Love Field) is expanding its footprint at Houston Intercontinental in an USD250 million undertaking over the next five years, USD20 million of which will be subsidised by the Houston City Council.
The airline will construct seven new gates at the airport’s west concourse, six of which will be used exclusively by Southwest Airlines for domestic flights, while the seventh gate will be available for other carriers at the discretion of the airport, according to local news reports.
The announcement followed a unanimous decision by the Houston City Council last week to provide USD20 million for Southwest Airlines and airport manager Houston Airport System to plan and design the new gates. Once that is done, both parties will return to the city council with a final cost of construction. Southwest Airlines will front funding the expansion, although the city will reimburse the airline for the cost through rent paid by tenants that use the west concourse, reported the Houston Chronicle.
"While we are in the very early stages of the project, we appreciate the ongoing support from the city of Houston, and the team at [Houston Airport System], as we embark on this next phase in our more than 50 year partnership," commented Southwest Airlines spokesman Dan Landson.
The plan resembled a similar, more controversial expansion plan by Southwest Airlines at Houston Intercontinental in 2012 when it planned to build five new international gates, the first of their kind at the airport. The plan was opposed by United Airlines (UA, Chicago O'Hare) which dominates international travel from the airport. When Southwest Airlines won approval from the city council, United Airlines laid off about 1,300 workers, according to the newspaper report.
United Airlines hold the lion's share of more than 72% market share in terms of weekly airline seat capacity at Houston Intercontinental, with Southwest Airlines holding less than 4%, according to the ch-aviation capacities module. United Airlines also has a crew base at Houston, while Southwest Airlines does not.
Southwest Airlines serves 39 domestic destinations from Houston, according to the ch-aviation schedules module.
