WN vs AUS (Merged Topics)

[LoneStarMike]

There was an interesting local story on Austin's NBC affiliate concerning a dispute between Southwest and AUS over the airport's plans to build a 3-gate terminal for ultra low-cost carriers. News of the city's plans first came to light towards the end of June. The city will lease 40 acres to GECAS who will build and operate the terminal and share the revenue with the city. I think the terminal reverts back to the city after 30 years, but am not sure. The low-cost terminal would be on the other side of the airport from the main terminal where Southwest and everyone else are and would not have automated baggage handling facilities, jetways, terrazzo marble floors, etc. Viva Aerobus has indicated they would like to serve AUS once the low-cost terminal is constructed (set to open in Spring, 2008) and has filed an application with the Dept. of Transportation to do so. The City of Austin is hoping to market the low-cost terminal to other ultra low-cost carriers like Skybus..

Southwest is not happy with this, saying that lower fees for the airlines using the low-cost terminal will put Southwest at a disadvantage.

Below is a link to text version of the story, the video that ran on the local news last night and copies (pdf files) of WN's letter to AUS and the airport's response to Southwest.

http://www.kxan.com/Global/story.asp?S=7490590&nav=0s3d

Southwest's letter to the city seems to indicate that the required discussions with the incumbent carriers haven't taken place, yet the city's response claims that they have.

Reading both letters, it doesn't sound like either side is going to back down.

It will be interesting to see how this one plays out.

Mike

 

[jimntx]

It puts ALL of us who serve AUS at a disadvantage if some airlines get to pay lower fees.

 

[KCFlyer]

It puts ALL of us who serve AUS at a disadvantage if some airlines get to pay lower fees.

Yep...this could be one battle where WN and AA will be on the same side.

 

[CynicalResAgent]

I think skybus would happily fly into a city if the facilities were just a metal detector and xray machine at the end of the runway.

 

[SKY HIGH]

LINK: http://www.kxan.com/Global/story.asp?S=749...nterstitialskip

That's the essence of what Southwest says in a newly released letter to Austin airport officials.
A senior airline official wrote that a new low-cost terminal at ABIA would provide other airlines with a "substantial cost advantage." Southwest, on the other hand, is "bound by agreement to more expensive facilities" at Austin's airport. Southwest is arguing that its lease agreement stipulates the company should pay the same terminal fees as all other airlines.

 

[Coffee_Tea_Or_Me]

Wah! Wah! Wah! All WN is b!tch and moan and expect royalty treatment from all airports. If they don't like it, they don't have to fly to Austin. Ooooh, that'll really show them!

 

[jimntx]

It is not a question of SWA expecting royalty treatment. I won't have that attitude expressed. Your airline and mine are ALSO at a disadvantage here because, like SWA, we are all locked into contracts at the main terminal with substantially higher gate fees than are expected for this to-be-built satellite. Tain't fair, McGee.

 

[Coffee_Tea_Or_Me]

It is not a question of SWA expecting royalty treatment. I won't have that attitude expressed. Your airline and mine are ALSO at a disadvantage here because, like SWA, we are all locked into contracts at the main terminal with substantially higher gate fees than are expected for this to-be-built satellite. Tain't fair, McGee.

Well, I am big enough to admit when someone else is right -- and you are right. I was a bit harsh on WN . . . please forgive.

 

[wnbubbleboy]

As for Southwest's customers, Margaret Dunagan admits it might not be fair to add new players to the game against Southwest, but some people are going to prefer low-cost carriers.

"If they're going to get mad, they can just lower their prices," Dunagan said.

Wow! You have PIT begging for flights and AUS pretty much saying "lump it". I would think the market share would be the same. I say move the equiptment north and repeat what Miss Dunagan has stated right back at them.

 

[ramper_in_las]

Wah! Wah! Wah! All WN is b!tch and moan and expect royalty treatment from all airports.

Royalty treatment is far from we get from the airports I work at. Seems our union has to fight tooth and nail just to get the simplest of safety concerns resolved.

AUS seems to be following suit...

 

[LoneStarMike]

Here is an updated report from News 8 Austin, the Time Warner local cable news station. Apparently all three Texas-based airlines (WN, AA & CO) are protesting the new terminal. There's some new information in this report that wasn't in the first one.

Major airlines upset over terminal deal

The council member interviewed in the story said there is the potential for the airlines to sue the city and demand equal treatment. He says at least three council members were under the impression that Viva Aerobus would be the only airline operating out of the low-cost terminal and that it would have only three gates, but said the City Council became aware of a plan to expand the ultra low-cost terminal from three to eight gates and include domestic low-cost carriers. I knew that the city was eventually going to try and attract other ultra low-cost carriers, but I don't remember anything about there being eight gates. Maybe that's in the second phase.

According to the City Council member, the three airlines say the low-cost terminal for flights to Mexico should not include domestic ones. Although the agreement with GECAS to build the terminal has been approved by the City Council, nothing has been signed yet.

The report also said if WN, AA & CO can prove the city violated their lease, it might be hard for the low-cost terminal to even get off the ground, but also claimed that .Viva Aerobus still has plans to start offering service to 6 cities in Mexico in the spring. I'm afraid that might change, though, if the low-cost terminal doesn't get built. And even if it does get built, this dispute will probably delay construction.

I could live with a compromise - no domestic carriers in the low-cost terminal, but I would like for Viva Aerobus to be able to at least give AUS a shot.

Mike