Leaderboard

If anything it will probably accelerate it, based on the Miami-Ft. Lauderdale case study. Competition = lower fares = more demand = more flights.

This is big news! I would have expected them to be neutral with so much United power among their board and committees. The fact that this resolution still got through speaks to the powerful benefits of competition for the city and the business community. http://blog.chron.com/houstonpolitics/2012/05/greater-houston-partnership-supports-hobby-expansion/ Greater Houston Partnership supports Hobby expansion The Greater Houston Partnership is backing a plan to expand Hobby Airport that would allow for international flights. The Partnership’s Business Issues Committee voted unanimously to support the plan to add five gates and a Customs facility to the airport. Southwest Airlines is pushing the plan so it can start flying to Mexico and the Caribbean. The Partnership’s board of directors is expected to adopt a resolution in support of Hobby expansion by the end of next week. “This is a critically important issue for Houston. We want two vibrant airports and the benefits that go along with it: more jobs, more travelers and a competitive advantage for our city,” said Tony Chase, chairman of the Partnership. United Airlines, which dominates the Latin American market from its base at Bush Intercontinental Airport, has fought the proposal. Company officials and consultants have argued that dividing the city’s international air traffic will cost jobs and routes. A city consultant’s study concluded that the Hobby plan will create 10,000 jobs and inject $1.6 billion into the local economy. Having the most prominent voice in the Houston business community behind the Hobby plan is another blow to United, which merged with Houston hometown airline Continental in 2010. In pressing its case, United has been drawing on the good will and trust Continental generated as an active corporate citizen for decades. The Partnership’s immediate past board chairman is Larry Kellner, who was CEO of Continental from 2004 to 2009. The Partnership’s airports task force is chaired by Michelle Baden, United’s managing director for international and state affairs and a registered lobbyist for the airline at City Hall. But the Partnership still backed the Southwest position. “GHP has carefully deliberated on how increased competition changes the landscape within airport systems, having reviewed and analyzed extensive data and listened intently to representatives from the Houston Airport System, city of Houston, United and Southwest,” said Jeff Moseley, president and CEO of the Partnership. “We intend to keep working with all airlines and parties to protect and grow our region’s airports.” City Council is scheduled to vote next month on the Hobby expansion plan.

Your first sentence is a PERFECT summary. I expect no better from the current leadership of United, but I'm pretty disappointed in Mr. Bethune.

Worst set of FUD (Fear, Uncertainty, Doubt) arguments I have ever seen. A lot of smokescreen and hand waving. Expect a complete blog post response from me soon at Houston Strategies. In the meantime, I'll keep hammering the same simple argument: JetBlue and Spirit dramatically grew discount intl competition at Ft. Lauderdale, lowering fares and increasing demand, which forced American to nearly double the size of its Miami hub. Everybody is winning except for American's profits.