SWA's Hobby International Expansion

[swamt]

http://houston.culturemap.com/newsdetail/02-06-13-details-on-southwest-airlines-new-150-million-houston-terminal-emerge-a-hard-fought-stunner/



I sure hope the 50 million increased cost is not on us. I think I read it as the HAS will pay for anything over the 100 million that SWA is responcible for.
SWA is approching 1/2 billion for new buildings and parking lots being built and soon to be built. And Kelley says labor has to do their part on the up coming contract talks. Now how can we be expected to do that when the company is just spending money like it's going out of style. Alot of employees sure are getting very nervous about how much money is flowing out the doors for buildings and structures.

 

[FlyStorms]

The new building across from HDQ is sorely needed. Right now SWA is paying rent on a building at Harry Hines/Burbank that over the course of 5 years (roughly) will pay for a new building. It has a good chunk of 3 departments there and it's full. HDQ is full. And even the hangar offices were too small for all the AT additions and expansion with our growing fleet/company. There are better tax and property advantages by having our own facilities rather than renting as well.

As for Houston, it's another investment that should pay off well. If/when we start flying to South America, the new terminal will pay for itself quickly. Go look at the cost of flights from IAH to anywhere down there and compare them to flights from say, Chicago down there. United/Continental has a chokehold on these markets (like AA does the Caribbean) so the prices are really high. Southwest effect, baby! Coming soon to an airport near you...

 

[WorldTraveler]

http://houston.culturemap.com/newsdetail/02-06-13-details-on-southwest-airlines-new-150-million-houston-terminal-emerge-a-hard-fought-stunner/



I sure hope the 50 million increased cost is not on us. I think I read it as the HAS will pay for anything over the 100 million that SWA is responcible for.
SWA is approching 1/2 billion for new buildings and parking lots being built and soon to be built. And Kelley says labor has to do their part on the up coming contract talks. Now how can we be expected to do that when the company is just spending money like it's going out of style. Alot of employees sure are getting very nervous about how much money is flowing out the doors for buildings and structures.

your concerns are valid but WN has to retool for a new era. WN got by for years with facilities that were ok for the time - but don't meet the needs for the long term. WN has no choice but to expand beyond the domestic market and its facilities will have to reflect those changes. WN has a very smart management team; I don't think you will find they have made mistakes on how they spend the money.
Your concerns about your contracts probably have more basis... the reality is that WN paid well above market labor rates for a long time. As it becomes harder to make money in the domestic market and as WN's workforce ages, they can't afford to pay those labor premiums they have paid for a number of years.

There are still many airline employees who would gladly take your place at WN if they could.