AUSTIN | ABIA Updates

[urbancore]

I was a party last weekend, where I spoke to an Aussie (who lives here with his new family), who mentioned that he was being transferred to Atlanta because his company is no longer relocating to Austin because of our lack of direct flights.

I didn’t catch the name of the company. I believe it was battery/tech related, but I could be mistaken.

He was bummed to move after only a year, but he hated our airport’s lack of direct flights. Said it made home life difficult, because business trips took much longer.

Grrrrrr……

[urbancore]

Originally Posted by freerover

I don't think it's a screw up. The south terminal provided badly needed terminal space for cheap airlines. We also didn't spend any money operating it or setting it up. So basically, we spent about 15 million dollars a year subsidizing family vacations for the people of Austin. Maybe that's a waste to some people. I think it's fine.

I don’t disagree with your statement, but a 40 year lease? That’s can’t anything else but a screw up.

[ATX2030]

Let's go.....

[Novacek]

Originally Posted by urbancore

I was a party last weekend, where I spoke to an Aussie (who lives here with his new family), who mentioned that he was being transferred to Atlanta because his company is no longer relocating to Austin because of our lack of direct flights.

I didn’t catch the name of the company. I believe it was battery/tech related, but I could be mistaken.

He was bummed to move after only a year, but he hated our airport’s lack of direct flights. Said it made home life difficult, because business trips took much longer.

Grrrrrr……

The company didn’t research this before sending him here for a year? It’s not like we’ve suddenly lost a bunch of direct flights.

[Tyrone Shoes]

Originally Posted by urbancore

I was a party last weekend, where I spoke to an Aussie (who lives here with his new family), who mentioned that he was being transferred to Atlanta because his company is no longer relocating to Austin because of our lack of direct flights.

I didn’t catch the name of the company. I believe it was battery/tech related, but I could be mistaken.

He was bummed to move after only a year, but he hated our airport’s lack of direct flights. Said it made home life difficult, because business trips took much longer.

Grrrrrr……

This isn't the first time I've heard this..AT&T left San Antonio for Dallas with the same reason.

[ILUVSAT]

So, these companies didn't figure that out before allocating the cost of opening/locating a branch of their organizations in Austin (or anywhere for that matter)?!?

AUS has far more direct flights than SAT and both will never compete with ATL or DFW.

I'm calling B.S. on that being the main excuse to move again.

[Lobotomizer]

Great news the South Terminal saga is over! I speculate it may remain in operation until the current expansion to Barbara Jordan terminal is complete, at which point the airlines operating out of the South Terminal will move out to allow it's demolition.

Originally Posted by ILUVSAT

So, these companies didn't figure that out before allocating the cost of opening/locating a branch of their organizations in Austin (or anywhere for that matter)?!?

AUS has far more direct flights than SAT and both will never compete with ATL or DFW.

I'm calling B.S. on that being the main excuse to move again.

It is actually possible that AUS could one day be an airport which competes with a DFW or ATL.

There is the ability to add a third runway, and grow to 80+ gates at Austin Bergstrom. Delta could decide to make AUS it's Texas hub.

I am not saying it is likely, nor that it would happen quickly, but it is certainly not overly far-fetched IMO.

Never say never.

[freerover]

Originally Posted by urbancore

I don’t disagree with your statement, but a 40 year lease? That’s can’t anything else but a screw up.

I mean yeah, it was unwise. My guess is they didn’t think the new master plan would call for the complete opposite solution that the master plan then were previously operating under. The 03 plan called for a decentralized solution at the southern end of the port far away from the south terminal. However, maybe you don’t make that deal if you know you are starting fresh with a new plan.

I hear you but at the end of the day we still had something that millions of people used that we would not have had. You need a long term lease to give a company a reason why they should invest in getting the building operational. Now, for 70 million is there another building at the port that they could have setup? Maybe.

[drummer]

For reference:

https://www.kxan.com/news/local/austin/8...d-for-critical-austin-airport-expansion/

[ILUVSAT]

Originally Posted by Lobotomizer

It is actually possible that AUS could one day be an airport which competes with a DFW or ATL.

There is the ability to add a third runway, and grow to 80+ gates at Austin Bergstrom. Delta could decide to make AUS it's Texas hub.

I am not saying it is likely, nor that it would happen quickly, but it is certainly not overly far-fetched IMO.

Never say never.

That is very true. Never say never. But, it will be many, many decades before that will happen - and, it also assumes ATL and DFW stop growing.

Regarding AUS' potential...I believe full buildout could actually top 150 gates (from the layout possibilities already posted). I believe DFW has about 150 or so gates now and ATL is around 180ish.

[drummer]

Originally Posted by ILUVSAT

That is very true. Never say never. But, it will be many, many decades before that will happen - and, it also assumes ATL and DFW stop growing.

Regarding AUS' potential...I believe full buildout could actually top 150 gates (from the layout possibilities already posted). I believe DFW has about 150 or so gates now and ATL is around 180ish.

DFW will grow with Terminal F but I don't know how many more they will get with that. It won't be insignificant. It's crazy to see some of their master plans from back in the day...I think they had like 14 terminals or something crazy like that.

[ATX2030]

AUS Industry Day

https://services.austintexas.gov/edims/document.cfm?id=408813

[Novacek]

Originally Posted by urbancore

An $88m screw up. Where does the buck stop with this one?

Certainly a mistake, but it's probably inaccurate to use the 88M number that way.

Sounds like ABIA will now get _all_ the profits from the operation of the south terminal for almost two years.

There's also all the fees/income ABIA got for the lifetime of the south terminal. Additional flights that basically wouldn't have happened otherwise, since the regular terminal is mostly maxed out.


And as for where the buck stops, isn't that airport head already gone?

[ATX2030]

One has to wonder what compelled AUS to cut a 90m check to Lonestar? That's not something the CoA normally does. They usually string it out. Perhaps something or someone encouraged the settlement so that the midfield concourse could get on the fast-track.

We've discussed it ad nauseum but if there was ever a time for Delta to make a play for AUS and Texas this would be it. This is their opportunity to partner with AUS and build a ground up concourse. If they don't other airlines will gobble up the gates that's for sure. It'll be interesting to watch cause with the settlement the train is now rolling down the tracks and picking up speed.

[drummer]

^^ Yeah, I was wondering that myself on the speed of this decision. I'm personally glad to see it because it likely would have just gone up if they delayed it, and that would just delay everything else.

Originally Posted by drummer

^^ Yeah, I was wondering that myself on the speed of this decision. I'm personally glad to see it because it likely would have just gone up if they delayed it, and that would just delay everything else.

I could be 100% wrong on this, probably am, but I wouldn't be surprised if there's a little more sweetener in the settlement agreement we don't know about.

I was about 100% right on the $100,000,000 figure.

[wwmiv]

Originally Posted by ATX2030

One has to wonder what compelled AUS to cut a 90m check to Lonestar? That's not something the CoA normally does. They usually string it out. Perhaps something or someone encouraged the settlement so that the midfield concourse could get on the fast-track.

We've discussed it ad nauseum but if there was ever a time for Delta to make a play for AUS and Texas this would be it. This is their opportunity to partner with AUS and build a ground up concourse. If they don't other airlines will gobble up the gates that's for sure. It'll be interesting to watch cause with the settlement the train is now rolling down the tracks and picking up speed.

Correct me if I am wrong, but it sounds like you are hoping Delta is the something or someone who encouraged the settlement.

[ILUVSAT]

^^^Speed? I'm glad this happened fast. I expected it to with Watson at the helm. ABIA is his baby.

-Didn't a recent court decision indicate the city owed Lone Star $90 million?
-Wouldn't it cost the city a ton of money (and precious time) to fight this and then still have to pay roughly $90 million?
-Just negotiate a settlement and move on toward realizing the expansion.


-RE: Delta - they still list AUS as a focus city (after slashing several from the list).
-A large portion of their available development cash has been tied up on HUB projects in Salt Lake, New York, Boston, Atlanta, Los Angeles, etc. If they're going to make some sort of move in Austin, it will be in the coming 2-5 years.

[ATX2030]

Originally Posted by wwmiv

Correct me if I am wrong, but it sounds like you are hoping Delta is the something or someone who encouraged the settlement.

Yes. I think Watson and others, be it Delta or some other airline, were behind pushing for a quick settlement. Nice to finally be able to start talking about the mid-con again. Airports are the economic engines for regions and AUS has the opportunity to play in the big leagues with the right leadership and vision.

[drummer]

Yep. No matter what, it's good to see things moving forward again.