BEFORE THE DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.

____________________________________________ ) Comments of ) ) CITY OF AUSTIN, TEXAS ) Docket No. OST-2012-0029 ) in support of Applications of Southwest Airlines, ) Inc., and JetBlue Airways, Inc. for an exemption ) pursuant to 49 U.S.C. § 41718 (g) (2) to provide ) new nonstop service between Ronald Reagan ) Washington National Airport and ) Austin-Bergstrom International Airport ) ___________________________________________ )

COMMENTS OF THE CITY OF AUSTIN IN SUPPORT OF THE APPLICATIONS OF SOUTHWEST AIRLINES, INC. AND JETBLUE AIRWAYS, INC.
Communications with respect to this document should be addressed to: Jim Smith Executive Director Austin-Bergstrom International Airport 3600 Presidential Blvd Austin, Texas 78719 Jim.Smith@austintexas.gov Jamy Kazanoff Assistant Director Jamy.Kazanoff@austintexas.gov

March 27, 20122 ANSWER OF THE CITY OF AUSTIN IN SUPPORT OF THE APPLICATIONS OF SOUTHWEST AIRLINES, INC. AND JETBLUE AIRWAYS, INC.

I. Introduction The City of Austin, as the owner-opera tor of Austin-Bergstrom International Airport (“AUS”), respectfully submits its comm ents in support of the Applications of Southwest Airlines (“Southw est”) and JetBlue Airways (“ JetBlue”) for an exemption from subparts K and S of 14 C.F.R. Part 93. Pursuant to 49 U.S.C. § 41718(g) (2), as enacted by the FAA Modernization and Reform Act of 2012 (FAA 2012), and th e Department of Transportation’s (“Department”) February 24, 2012 Order, the C ity of Austin, as th e owner-operator of Austin-Bergstrom Internationa l Airport (“ABIA”), submits th ese comments in support of the Applications of Southwes t Airlines, Inc. ("Southwest” ) and JetBlue Airways, Inc. (“JetBlue”), for an exemption from subpart s K and S of 14 C.F.R. Part 93, to permit Southwest and JetBlue to operate daily r oundtrip flights betw een Ronald Reagan Washington National Airport (“DCA”) and Au stin-Bergstrom Inte rnational Airport (“ABIA” and “AUS”). The City of Austin fully supports the Department’s award of slots under FAA 2012 to provide the first ever nonstop service between Aus tin-Bergstrom International Airport (ABIA) and Ronald R eagan Washington National Air port (DCA). The City of Austin is unique as the only city to have received two applications and honored that the two largest U.S. Low Cost Carriers (“LCC”) are competing for this service. Such an3 award would connect the Cap ital of Texas with our Na tion’s Capital and provide significant public benefit to both the 1.8 milli on residents of the Austin metro area and the more than 2.0 million people who call ABIA their home airport, as well as to the residents of the greater Wash ington Metropolitan area. Austin is the best choice and should be granted the newly available beyond perimeter slot exemptions for the following reasons:

 Austin is the 14 th largest city in the United Stat es with a population of 1.8 million and with 37% growth since 2000, Austin is the third fastest gr owing city in theU.S. Austin is ranked #1 in job and income growth for 2009-2010 (Exhibit AUS001).

 Austin travelers to DCA are currently payi ng significantly higher fares than from the other markets vying for nonstop serv ice (Exhibit AUS-002). Competitively priced nonstop service will stimulate both bus iness and leisure travel and grow the market well above the 85,000 annual pa ssenger level (Year ending 3Q2011 O&D, Exhibit AUS-003). More 50,000 annual passengers from the AUS catchment region using GSA contract fares are also not getting the benefit of competitive service and pricing.

 With the recent announcement of serv ice by United (SFO) and US Airways (SAN), Austin is the sec ond largest market under cons ideration without nonstop service to DCA.

 Austin yields to DCA are the highes t among airports under consideration; on average more than 30% higher when adjusted for stage length differences. (Exhibit AUS-004)

 There are 29 companies in Austin that have their headquarters in the Washington, DC metropolitan area. (Exhibit AUS-005)

 A dozen national associations are headqua rtered in Austin. (Exhibit AUS-006)

 Austin is the home of the University of Texas, one of the top ten largest Universities in the U.S. ABIA serves seven other four-year schools and three community colleges with a combined enrollment of more than 180,000 students. In total, there are more than 400,000 co llege students in the broader ABIA catchment area. (Exhibit AUS-007)

 Selection of Austin for nonstop DCA service will have a broader market impact than just the 1.8 million metro Austin resi dents. Nonstop service by a top notch4 LCCs at AUS will result in competitive benefits for the 5.1 million Texans residing within 100 miles of ABIA.

 The allocation of two slot exemptions for the first ever nonstop service from Austin to Reagan National will best further the stated purpose of FAA 2012 by maximizing competition and public benefits derived from lower fares, increased capacity, and expanding the variety of service in the market.

For all of these reasons, th e applications of Southwest and JetBlue provide the Department with a unique opportunity to signi ficantly improve air service at AustinBergstrom International Airport. With th e two largest and most successful Low Cost Carriers in the U.S. vying for Austin service, the award of exemptions for Austin-DCA will more than meet the Department’s objec tives for public benefits and unquestionably be successful for years to come.

II. Austin is the Best Choice for Allocati ng Beyond Perimeter Slot Exemptions Austin is the Capital of Texas, the 14 th largest city in the United States. With a population of 1.8 million and with 37% growth since 2000, Austin is the third fastest growing city in the U.S. Austin is ra nked #1 in job and income growth for 2009-2010 (Exhibit AUS-001). The decision facing the Department is important and difficult for numerous reasons, not least of which is the public benefit this service will bestow and the need to ensure the service receiving the grant of exempt ion is successful. The criteria outlined in FAA 2012 for New Entrant and Limited Incumbent Air Carriers underlines the importance of improving competition and ensuring the carriers and markets selected are well positioned to be successful . Those criteria include:5 (A) provide air transportation with domes tic network benefits beyond the 1,250 mile perimeter; (B) increase competition in multiple markets; (C) not reduce travel options for communiti es served by small hub airports and medium hub airports within the 1,250 mile perimeter; (D) not result in meaningfully increased travel delays; (E) enhance options for nonstop travel to and from the beyond perimeter airports that will served, or; (F) produce public benefits, in cluding lower fares, higher capacity, and a variety of service options. With two applications for service to AB IA before the Department, there is no question that an award to Southwest or JetB lue will meet the statutory criteria in FAA 2012. Nonstop service between AUS and DCA will create domestic network benefits, both carriers will improve the competitiveness of their networks with this service and the Southwest application would further add th e benefit of one-stop service between DCA and San Diego (SAN). With nonstop service to DCA, JetBlue will be able to add AUS to its growing network at DCA and strengthen its competitive position at both airports. Service to ABIA from Reagan National wi ll have the added benefit of improving competition not only in the AUS-DCA market, but also create beneficial price and service competition in San Antonio (SAT). Unlike other markets under consideration, such as Colorado Springs, there are no nonstop LCC services to DCA within a reasonable distance of either AUS or SAT.6 As both Southwest and JetBlue are limite d incumbent carriers at DCA, no small community service will be lost with this gran t. In fact, Southwest intends to fly this service utilizing its newest Boeing 737-800 seri es with 175 seats; Je tBlue would utilize an Embraer E190 with 100 seats. These aircraft are fuel efficient and can meet all noise requirements and operate efficiently at Reag an National as part of their respective mainline networks. New nonstop service between our Nation’s Capital and the Capital of Texas will enhance air service at both ABIA and fr om DCA. There are numerous business, commercial, government, association and leis ure interests between these two Capital cities. There are 29 companies headquartered in the DC area with significant offices in Austin. (Exhibit AUS-005) These companies have a total employment exceeding 325,000, a significant portion of which are based in Austin. Austin is the headquarters for twelve National Associations, and nonstop service to DCA will gr eatly improve their effectiveness. Nonstop serv ice provided by successful low cost carriers such as Southwest and JetBlue will prov ide even greater efficiencies in cost and time savings. The more than 50,000 students at the University of Texas, and over 400,000 students within 100 miles of Austin, will bene fit tremendously from affordable access to Washington. The eleven colleges and univers ities in the Austin area will have much improved access to the educational opportunities afforded by quality low fare service to
DCA. What is clear is that the City of Aus tin and ABIA have the market size and economic base to ensure this service would be successful. Austin has been recognized as a National leader in a number of categories, including employment, job creation and7 sustaining economic growth. Austin employment has been leading the nation in terms of job growth, 5.1% in the five year period ending December 2011 (non-farm payroll, top 50 U.S. Metro areas, Exhibit AUS-017) and continues to add jobs through corporate expansion and relocations (Exhibit AUS-018). Austin is continually recognized as an entrepreneurial city, fo stering the new economy; Forbes named Austin “America’s No. 1 Boom Town” while Kiplinger’s recently cited Austin as the number one “Best Cities for the Next Decade.” (Exhibits AUS-019 and AUS-020) Like the city it serves, Austin-Bergstr om International Airport is an award winning airport, both nationally and in the world, for Customer Service, Air Service Quality, and Customer Satisfaction. (Exhibit AUS-021) The reality is, but for 65 miles – the difference between AUS-DCA and the 1,250 mile perimeter limit – ABIA would long ago have had multiple flights per day to DCA. Austin, with more than 85,000 annual O&D pa ssengers, has more passenger demand for DCA service than 41 within the perimeter air ports currently with nonstop flights (Exhibit AUS-025). With 1.8 million citizens and 5.1 million Texans within 100 miles of ABIA, a vibrant, diverse and growing economy, the De partment can be confident that awarding exemptions to Austin will be successful.

III. The Proposed Service to Austin Wou ld Bring Substantial Public Benefits Awarding exemptions to Southwest and JetBlue will create significant local market as well as network benefits, provide much need price and service competition in a broad region that will result in significant public benefits.8 Austin is among the largest O&D mark ets without nonstop service to DCA currently. The market size woul d be bigger but for the lack of price competition. Austin travelers are paying a premium as a result of no direct service. On a stage length adjusted basis (the industry standard for comparat ive analysis) Austin travelers are paying substantially more to trav el to DCA than passengers from other markets under consideration. Yield Comparison of Austin with Other Markets under Consideration

NS O&D Average Average Stage AdjYield % AUS Miles Passengers Fare NS Yield 1000 mi Fare Higher Austin (AUS) 1,315 85,383 $225 17.1 19.6 - Colorado Springs (COS) 1,487 31,443 $225 15.1 18.4 7% Las Vegas (LAS) 2,089 176,991 $213 10.2 14.7 33% San Diego (SAN) 2,267 126,122 $227 10.0 15.1 30% San Juan (SJU) 1,554 53,982 $192 12.3 15.3 28% San Francisco (SFO 2,442 148,775 $197 8.1 12.7 54%
(On average, Austin yields are 31% higher to DCA wh en adjusted for differences in stage, see Exhibit AUS-003)

Both Southwest and JetBlue expect to pub lish fares at less than half the current level. Southwest estimates it, and the we ll-documented “Southwest Effect”, will reduce realized average fares paid in AUS-DCA by more than 36%, resulting in a savings of more the $12 million per year in the local market. Additionally, the Southwest proposal will create another $11 million in savings for passengers flying beyond AUS-DCA for a total public benefit of $23 milli on in fare savings. This benefit does not include the additional spending related to stimulated demand and new passengers to Austin, the surrounding area as well as Washington, D.C.9 These benefits are large, but certainly reasonable. Austin currently has 85,000 O&D passengers to DCA (year ending 3Q11 DO T O&D data). There are another 39,000 DCA O&D passengers who live wi thin 90 minutes of ABIA but use other airports. The Southwest forecast of demand used a growth rate of only 3.8%, though last year, AUSDCA grew by 14% despite very high fares. W ith the combination of the existing base of traffic, the broader catchment area of ABIA and the addition of new nonstop service and lower fares, the AUS-DCA nonstop service could easily exceed the conservative Southwest forecast. The numerous corporate, student, government , and association interests in Austin suffer as a result of a lack of competitive service to DCA. With the applications of Southwest and JetBlue before them, the De partment has the opportunity to positively impact travelers in the Capital City of Aus tin, the 5.1 million Texans it serves, as well as our Nation’s Capital.12 TABLE OF EXHIBITS
BEST PERFORMING ECONOMIES BASED ON JOBS & INCOME GROWTH 2009 – 2010 ........................................ AUS-001
AUS HAS THE HIGHEST YIELD OF DCA’S TOP 10 MARKETS WITHOUT NONSTOP SERVICE .............................................................................................. AUS-002
AUS O&D PASSENGER TRAFFIC TO WASHINGTON REAGAN HAS GROWN 14% IN THE PAST YEAR....................................................................................... AUS-003 WHEN ADJUSTED FOR STAGE, AUS PA SSENGERS PAY FAR MORE PER MILE THAN OTHER APPLICANTS FOR DCA EXEMPTIONS* ................................. AUS-004
AUSTIN COMPANIES WITH DC-ARE A HEADQUARTERS ............................ AUS-005 NATIONAL ASSOCIATIONS HEADQUAR TERED IN AUSTIN. ...................... AUS-006
TOP TIER EDUCATIONAL FACILITIES FALL 2010 ENROLLMENTS ................................................................................. AUS-007
AUSTIN TOURISM FACTS ................................................................................... AUS-008 MAJOR ANNUAL EVENTS ................................................................................... AUS-009
DOWNTOWN AUSTIN .......................................................................................... AUS-010 WHAT’S NEW IN AUSTIN .................................................................................... AUS-011
ALSO DOWNTOWN ............................................................................................... AUS-012
AUSTIN CONVENTION CE NTER ........................................................................ AUS-013
PROJECTED GROWTH BY CO UNTY 2009 - 2014 ............................................. AUS-014
AUSTIN’S EFFECTIVE BUYING INCOME PER HOUSEHOLD IS HIGHER THAN THE NATIONAL AVERAGE AND ANY METRO IN TEXAS ............................ AUS-015
AUSTIN CONTINUES TO OUTPERFORM THE U.S. UNEMPLOYMENT RATE ............................................................................. AUS-016
AUSTIN LEADS THE U.S. IN RATE OF JOB GROWTH (50 LARGEST METRO AREAS) ............................................................................ AUS-017
RELOCATIONS AND EXPANSIONS ................................................................... AUS-01813 RECENT AUSTIN RANKINGS: BUSINESS ......................................................... AUS-019 RECENT AUSTIN RANKINGS: Q UALITY OF LIFE .......................................... AUS-020
ABIA AWARDS ...................................................................................................... AUS-021
THE AUSTIN MARKET HAS ACHIEVED 26 CONSECUTIVE MONTHS OF PO SITIVE GROWTH .................................... AUS-022
AUSTIN PASSENGER TRAFFIC HAS REACHED RECORD LEVELS .................................................................................................. AUS-023
A SELECTION OF AUSTIN – WASH INGTON D.C. LI NKS ............................... AUS-024
AUS HAS MORE O&D PASSENGERS T HAN 41 MARKETS INSIDE THE DCA PERIMETER ............................................................................................................ AUS-025

# BEST PERFORMING ECONOMIES BASED ON JOBS & INCOME GROWTH 2009 – 2010 Docket DOT-OST-2012-0029 Exhibit AUS-001 Page 1 of 1

Source: Nielsen Market Demographics, 2009 County Edition. 

## Annual percent change Ranking Income Employment Global National Austin 2.7% 3.2% 26 1 Virginia Beach 5.8 -0.7 36 2 Washington 5.2 -0.3 37 3 Dallas 2.7 1.7 39 4 Baltimore 7.0 -1.8 42 5 Minneapolis 2.5 1.5 44 6 Detroit 3.2 0.6 46 7 Nashville 1.8 1.7 48 8 Cleveland 4.1 -0.1 49 9 Seattle 3.9 -0.1 50 10 San Antonio 3.5 0.2 51 11 Houston 2.8 -0.2 61 15 U.S. 2.4 -0.7 —

―

# AUS HAS THE HIGHEST YIELD OF DCA’S TOP 10 MARKETS WITHOUT NONSTOP SERVICE Docket DOT-OST-2012-0029 Exhibit AUS-002 Page 1 of 1



### 1 2 3 4 5 6 7 8 9 10 1,315 1,381 1,650 1,554 1,955 2,276 2,350 2,288 4,840 2,424 Airport 

### Austin (AUS) San Antonio (SAT) Albuquerque (ABQ) San Juan (SJU) Tucson (TUS) San Diego (SAN) Portland (PDX) Orange County (SNA) Honolulu (HNL) San Jose (SJC) Distance Rank 

### 17.1¢ 14.7¢ 14.1¢ 12.3¢ 11.1¢ 10.0¢

9.5¢ 9.0¢ 8.6¢ 8.2¢ YE Q3 2011

Average Nonstop

Yield

S ource: U.S. DOT, Origin-Destination Passenger Survey, and Offi cial Airline Guide, schedules for the week of June 11, 2012.0 20,000 40,000 60,000 80,000 100,000 120,000

20

02

Q1 2002 Q2 2 002 Q 3 200 2

Q4 2 003 Q1

200 3

Q2 2003 Q3 20

03 Q 4 2004 Q1 2 004 Q2

200 4

Q3 2004 Q4 20

05

Q1 2005 Q2 2 005 Q 3 200 5

Q4 2 006 Q1

200 6

Q2 2006 Q3 20

06 Q 4 20

07 Q 1 200 7

Q2 2 007 Q3

200 7

Q4 2008 Q1 20

08

Q2 2008 Q3 2 008 Q 4 200 9

Q1 2 009 Q2

200 9

Q3 2009 Q4 20

10 Q 1 2010 Q2 2 010 Q 3 201 0

Q4 2011 Q1 201 1

Q2 2011 Q3 

# AUS O&D PASSENGER TRAFFIC TO WASHINGTON REAGAN HAS GROWN 14% IN THE PAST YEAR

12-Month Moving Total

Source: U.S. DOT, Origin-Destination Passenger Survey.O&D Passengers Docket DOT-OST-2012-0029 Exhibit AUS-003 Page 1 of 1

14% Average Annual Growth YE Q3 2011: 85,384 Peak: 97,026

# WHEN ADJUSTED FOR STAGE, AUS PASSENGERS PAY FAR MORE PER MILE THAN OTHER

APPLICANTS FOR DCA EXEMPTIONS* Docket DOT-OST-2012-0029 Exhibit AUS-004 Page 1 of 1



### 1 2 3 4 5 6 7 1,315 1,487 1,554 2,267 2,089 2,350 2,442 Airport 

### Austin (AUS) Colorado Springs (COS) San Juan (SJU) San Diego (SAN) Las Vegas (LAS) Portland (PDX) San Francisco (SFO) Distance Rank 

### 19.6¢ 18.4¢ 15.3¢ 15.1¢ 14.7¢ 14.6¢ 12.7¢ YE Q3 2011 Stage Length Adjusted Yield

(1,000 Miles)

* YVR is not listed due to insufficient data (U.S. carriers only) Source: U.S. DOT, Origin-Destination Passenger Survey. 

### --- 7% 28% 30% 33% 34% 54% % Austin

Greater

# AUSTIN COMPANIES WITH DC-AREA HEADQUARTERS Docket DOT-OST-2012-0029 Exhibit AUS-005 Page 1 of 1

Company Name Industry AAI Corp. IT & software related services Akin Gump Strauss Hauer & Feld Law firm Arkane Studios Austin Computer Games Austin Title Co. Title company BAE Systems Defense & aerospace equipment mfg. Borland Software Corp. IT & software related services Capital One Banking CFAN Aerospace equipment mfg. CSC Financial Services Group IT & software related services DLA Piper Law firm, IP law specialty GXS B2B e-commerce services Harris Connect Directory publisher Intific IT & software related services Maxim Healthcare Services Healthcare Maximus Social services program administrator Moore & Associates Real estate, commercial Morning Glory Division of Carpenter Co. Household furnishings mfg. Netspend Credit card processing & marketing services Optimization Alternatives IT & software related services Owens & Minor Medical & surgical supplies distribution center Reznik Group Business & accounting consultant services SAIC IT & software related services, govt contractor Sheshunoff Information Services Financial data & publishing Sodexho Facilities management services Teksystems IT Staffing TidalTV Video advertising URS Federal Services De fense & NASA contractor XO Communications Data center with web hosting services Zenoss IT & software related services

Source: Austin Chamber of Commerce.

# NATIONAL ASSOCIATIONS HEADQUARTERED IN AUSTIN

Association Name American Academy of Nurse Practitioners Association of Certified Fraud Examiners Automotive Parts & Services Association Clean Technology & Sustainable Industries Organization Delta Kappa Gamma Society International Hospitality, Financial and Technology Professionals National Alliance for Insurance Education & Research National Center for Educational Accountability Silicon Integration Initiative Social Media Business Council United States Business Council for Sustainable Development Wi-Fi Alliance

Source: Austin Chamber of Commerce. Docket DOT-OST-2012-0029 Exhibit AUS-006 Page 1 of 1

# TOP TIER EDUCATIONAL FACILITIES FALL 2010 ENROLLMENTS Docket DOT-OST-2012-0029 Exhibit AUS-007 Page 1 of 1



## Four-Year Institutions The University of Texas, Austin 51,195 Texas State University, San Marcos 32,572 St. Edward’s University, Austin 5,454 University of Mary Hardin-Baylor, Belton 2,956 Concordia University, Austin 2,573 Southwestern University, Georgetown 1,373 Texas Lutheran University, Seguin 1,340 Huston-Tillotson College, Austin 901 Community Colleges Austin Community College, Austin 44,100 Central Texas College, Killeen 26,055 Temple College, Temple & Taylor 5,966 Austin Region Total* 181,152 TOTAL WITHIN 100 MILES 410,725

*Region total includes enrollments for some 4-year and 2-year proprietary schools not listed separately. Source: U.S. National Center for Education Statistics.

# AUSTIN TOURISM FACTS Docket DOT-OST-2012-0029 Exhibit AUS-008 Page 1 of 1



##  In 2010 an estimated 18.2 million visitors (up 6.8% from 2009) came to Austin, with the volume of Person-Days estimated at 37.41 million for the year. Austin’s share of total Person-Days to Texas ranked 4 th 

## out of the 26 Texas MSAs.

 Visitors to Austin spent an estimated $4.5 billion, which supported 45,000 jobs, with earnings of $1.2 billion that generated $338 million in state and local taxes.

 In 2011 hotels in Austin collected an estimated $747 million in revenues, with more than 7 million roomnights sold. For the year roomnights sold and revenues were up by 8.1% and 13.6% respective from 2010. Occupancy in 2011 was estimated at 65.8%, up 4.6% from 2010 and higher than the statewide average for the year.

 Leisure travel represented 67.4% of travel Person-Days to Austin in 2010, with business travel representing 32.6% of Person-Days to the MSA.

 Average spending in 2010 was $117.7 per person per day, with the average length of stay for overnight trips being 3.17 days.

Source: Austin Chamber of Commerce.

# MAJOR ANNUAL EVENTS Docket DOT-OST-2012-0029 Exhibit AUS-009 Page 1 of 1



## March

October September/October

November

Source: Austin Chamber of Commerce.

# DOWNTOWN AUSTIN Docket DOT-OST-2012-0029 Exhibit AUS-010 Page 1 of 1



##  More than 120 unique downtown restaurants

 200 live music venues

 World-class art museums

 Countless Entertainment Districts

 6th Street

 Warehouse District

 2nd Street

 Red River

 SoCo

 University of Texas

 West 6th

Source: Austin Chamber of Commerce.

# WHAT’S NEW IN AUSTIN Docket DOT-OST-2012-0029 Exhibit AUS-011 Page 1 of 1

Source: Austin Chamber of Commerce. 

## AUSTIN CITY LIMITS LIVE AT MOODY THEATER A state-of-the-art, 2,700 capacity live music venue

HYATT PLACE HOTEL A 17 story, 296 room hotel coming to downtown in 2013 JW MARRIOTT AUSTIN HOTEL 1013 room hotel coming to downtown in 2015

# ALSO DOWNTOWN Docket DOT-OST-2012-0029 Exhibit AUS-012 Page 1 of 1

Source: Austin Chamber of Commerce. 

##  We have all major flags represented

 Hilton Hotels and Resorts

 Marriott

 Four Seasons Hotels and Resorts

 Hyatt Hotels and Resorts

 Omni Hotels and Resorts

 InterContinental Hotels and Resorts

 Radisson

 W Hotels

# AUSTIN CONVENTION CENTER Docket DOT-OST-2012-0029 Exhibit AUS-013 Page 1 of 1

Source: Austin Chamber of Commerce. 

##  246,000 sq ft exhibit space-column-free (5 Halls)

 54 Meeting Rooms-61,440 sq ft total

 Two Ballrooms (43,000 & 23,000 sq ft)

 Unparalleled Connectivity with complimentary wireless

# PROJECTED GROWTH BY COUNTY 2009 - 2014 Docket DOT-OST-2012-0029 Exhibit AUS-014 Page 1 of 1



# Key County name Projected 2014 population (000) 2009 – 2014 population growth (%)
10% and Greater 

### 5% - 9.99% 0% - 4.99% Less than 0% 

# AUS

SAT SAT San Saba 5.9 -1.1% Mills 5.1 +0.2% Lampasas 23.8 +10.4% Coryell 73.3 -0.3%

Mason

3.9 +2.1% Kimble

4.6 +1.3% Gillespie 26.6 +8.9% Llano 20.2 +6.4% Burnet 50.8 +13.7%

Blanco

9.9 +6.0% Kerr 51.8 +6.4% Kendall 38.6 +16.3% Bandera

22.4 +8.6% Real 3.2 +2.0% Hays 179.8 +19.9 Williamson 478.1 +20.9% Travis 1,113.0 +11.1% Bell 313.7 +9.9% McLennan

241.0 +4.7%

Comal 131.1 +17.3% Caldwell 40.0 +7.9% Bastrop 85.6 +13.6% Milam 26.0 +3.0%

Falls 16.7 -3.5%

Lee 17.4 +4.2%
Fayette

24.4 +4.4% Robertson 16.0 +0.5%

Burleson

17.8 +3.3% Brazos 188.9 +7.8%
Washington 34.1 +4.5% Austin 30.0 +8.6% Colorado

22.0 +3.1% Lavaca

19.0 +0.1% Gonzales 19.8 +2.6% Wilson

46.1 +12.2% Bexar 1,778.1 +8.8% Medina

48.2 +7.5% DeWitt 20.0 +0.4% Karnes

15.1 -0.2% Goliad 7.5 +3.2% Bee 33.7 +1.9% Live Oak

11.1 -3.4 McMullen 0.9 +2.7% La Salle

6.1 +2.0% Atascosa 47.6 +7.6% Frio 16.3 +0.6% Zavala

11.9 +1.4%
Dimmit

9.7 -1.5% Uvalde

26.5 +1.3% Guadalupe 137.2 +14.7%

Source: Nielsen Market Demographics, 2009 County Edition.

# AUSTIN’S EFFECTIVE BUYING INCOME PER HOUSEHOLD IS HIGHER THAN THE NATIONAL AVERAGE AND ANY METRO IN TEXAS Docket DOT-OST-2012-0029 Exhibit AUS-015 Page 1 of 1

2010 Median Household Effective Buying Income

$47,857 $46,836 $46,535 $40,554 $40,110 $39,676 $37,903 $37,713 $36,282 $35,834 $43,800

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

A ustin

D

allas-Ft . Wo rth H ous ton V icto ria San Anto nio Odess a -Midland

B

ea

umont-Po r t Arthu r Waco-Temple-Bryan Cor pus Ch risti Amarillo

N

atio nal Med ian

Note: Uses DMA region definitions. Source: Nielson, 2010.

# AUSTIN CONTINUES TO OUTPERFORM THE U.S. UNEMPLOYMENT RATE Docket DOT-OST-2012-0029 Exhibit AUS-016 Page 1 of 1



### 2% 3% 4% 5% 6% 7% 8% 9% 10% 11%

2007 2008 2009 2010 2011 

# Austin United States

Source: Texas Workforce Commission.

# AUSTIN LEADS THE U.S. IN RATE OF JOB GROWTH (50 LARGEST METRO AREAS) Docket DOT-OST-2012-0029 Exhibit AUS-017 Page 1 of 1



## Nonfarm payroll jobs

Dec. 2011 Dec. 2006-Dec. 2011 Rank Difference Percent Ch. Austin 786,600 38,000 5.1% 1 Houston 2,643,000 123,000 4.9 2 New Orleans 531,000 23,500 4.6 3 San Antonio 850,300 24,500 3.0 4 Oklahoma City 578,300 9,800 1.7 5 Pittsburgh 1,164,000 13,300 1.2 6 Dallas-Fort Worth 2,955,500 32,400 1.1 7 Rochester 524,700 3,400 0.7 8 Raleigh 510,600 2,800 0.6 9 Salt Lake City 637,000 800 0.1 10

Source: U.S. Bureau of Labor Statistics.

# RELOCATIONS AND EXPANSIONS Docket DOT-OST-2012-0029 Exhibit AUS-018 Page 1 of 1



## 2012 Jobs ProfitFuel 220 Advisory Board 200 Rackspace Mgd Hosting 700 Apple 3,600 Samsung 300 Miratech 120 The Advisory Board Co. 239 Progressive Insurance 185 US Farathane 228 2011 Jobs 2010 Jobs Altera Corp. 200-300 Advanced Micro Devices 285 AT&T Labs 350 Applied Materials 200 BAE Systems 200 Facebook 200 eBay/PayPal 1,000 Gila Corp. 200-300 Electronic Arts 300 Hanger Orthopedic Group 250 Evernote 250 HostGator 300 HostGator 500 Legal Zoom 600 Image Microsystems 180 Progressive Insurance Co. 175 Informatica 175 Samsung 500 Office Depot 200 SunPower Corp. 450


## SINCE JANUARY 2011, OVER 12,400 NEW JOBS HAVE BEEN ANNOUNCED BY NEW AND EXPANDING COMPANIES IN AUSTIN.

# RECENT AUSTIN RANKINGS: BUSINESS Docket DOT-OST-2012-0029 Exhibit AUS-019 Page 1 of 1



##  Austin ranks 1 st 

## for total jobs added and rate of growth from 2006 to 2011 (Bureau of Labor Statistics)

 Austin ranks 3 rd 

## for private sector jobs added and rate of growth from 2006 to 2011 (The Business Journal on Numbers, 2/7/12)

 Austin is #8 on Cities Where Real Estate is Ripe for a Rebound (Forbes, 1/12/12)

 Austin ranks #3 on office investment for the next 3 years (Grubb & Ellis, 1/3/12)

 Austin is 4th on Best-Performing Cities Index ranking of the 200 largest U.S. metros based on how well they are creating and sustaining jobs and economic growth. (Milken Institute, 12/15/11)

 Austin places 8th on annual Best C ities for Business list thanks to robust economic growth. (MarketWatch,12/13/11)

 Austin places 12th for percentage of workers with jobs in science, technology, engineering and mathematics. (Forbes, 8/2/11)

 Austin is America’s No. 1 Boom Town. (Forbes, 7/6/11)

 Austin is in the Top 10 American Cities of the Future 2011/12. (fDi Intelligence, 4-5/11)

 Austin leads the nation in Small Business Vitality rankings. (The Business Journals’ On Numbers, 4/11/11)

 Austin ranks 6th among America’s Smartest Cities. (CNNMoney.com, 10/1/10)

 Austin named top U.S. Entrepreneurial Center. (Entrepreneur, 8/10)

 Austin ranks No. 3 on Top 10 Cities for Young Entrepreneurs. (Under30CEO, 8/4/10)

 Austin is No. 1 on list of the Be st Cities for the Next Decade. (Kiplinger’s Personal Finance, 7/10)

 Austin in Top 10 of Forbes’ annual Best Places for Business & Careers. (Forbes, 4/14/10)

 Austin no. 2 on list of America’s Most Innovative Cities. (Forbes, 5/24/10)

# RECENT AUSTIN RANKINGS: QUALITY OF LIFE Docket DOT-OST-2012-0029 Exhibit AUS-020 Page 1 of 1



##  Austin is one of the Top 10 Cities for Dating (Yahoo Travel, 2/2/12)

 Austin is one of the Top 10 Healthiest Cities for Women (Women’s Health, Jan-Feb 2012 issue)

 Austin has the 6th lowest crime rate among large cities. (CQ Press, 12/8/11)

 Austin places 12th on “America’s Best Cities” list focused on quality of life metrics. (BusinessWeek.com, 9/20/11)

 Austin takes top spot out of 100 Best Places to Live. (Relocate America, 8/2/11)

 Austin No. 5 on "Cities on the Edge" list of American cities poised for greatness in sports, arts, music and culture. (Spearling's Best Places. 5/24/11)

 Austin enjoys 2nd highest Well-Being Index score among large metros. (Gallup, 3/15/11)

 Austin is one of the Best American Cities to Live and Work. (Business Review USA, 1/31/11)

 Austin is 4th Most Secure Place to Live. (Farmer’s Ins./Spearling’s, 12/16/10)

 Austin No. 1 for Quality of Li fe. (Business Facilities, 7-8/10)

 14 Austin area high schools rank in th e top 6% nationally. (Newsweek, 6/13/10)

 Austin among America’s Fittest Cities. (Am. College of Sports Medicine, 5/24/10)

 Austin ranked among Cleanest Air Cities. (American Lung Association, 4/28/10)

 Austin ranked 11th Best Place to Ra ise a Family. (Children’s Health, 10/20/09)

 Austin No. 2 Best City for Working Moms. (Forbes, 8/4/09)

# ABIA AWARDS Docket DOT-OST-2012-0029 Exhibit AUS-021 Page 1 of 1



##  #4 Best Customer Service in North America (Airport Council International’s 2011 Airport Service Quality passenger survey)

 Inducted into ACI Roll Of Excellence (recognizes airports that have ranked among the top five in Airport Service Quality for five consecutive years)

 2010: #3 in North America, (all airports) #5 worldwide (5-15 million passenger category)

 2009: #1 in North America (all airports), #2 worldwide (5-15 million passenger category)

 2008: #3 in North America (all airports), #3 worldwide (5-15 million passenger category)

 2007: #3 in North America (all airports) , #3 worldwide (5-15 million passenger category)

 2006: #1 in North America (all airports)

 #9 Best Airport (Travel + Leisure magazine July 2010)

 J.D. Power and Associates top 5 ranking: 2002, 2003, 2004

 Best Concessions Award, Airport with the Most Unique Services in the Medium Airport Division (Airport Revenue News 2010)

Source: ABIA.

# THE AUSTIN MARKET HAS ACHIEVED 26 CONSECUTIVE MONTHS OF POSITIVE GROWTH Docket DOT-OST-2012-0029 Exhibit AUS-022 Page 1 of 1

6.0

1.5 11.0

3.4 6.0

2.6 5.4

2.6 2.9 4.5 14.0

6.3 9.5 8.7

4.7 11.4

4.0

2.5 4.1 5.4

3.1
1.8 1.2 1.8 7.7 9.4

$0 $2 $4 $6 $8 $10 $12 $14 $16

Jan Feb Mar Apr May Jun Jul Aug S

ep Oc t

No v Dec Jan Feb Mar Apr May Jun Jul Aug S

ep O ct No v Dec Jan Feb % Change in YOY Passenger Traffic

Source: ABIA. 

### 2010 2011 2012

# AUSTIN PASSENGER TRAFFIC HAS REACHED RECORD LEVELS Docket DOT-OST-2012-0029 Exhibit AUS-023 Page 1 of 1

7.5 7.0 6.6 6.6 7.1 7.5 8.1 8.7 8.8 8.2 9.1 9.1 8.7

0 1 2 3 4 5 6 7 8 9 10

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YE Feb 2012

Source: ABIA. 

### Annual Passenger Traffic (Millions)

# A SELECTION OF AUSTIN – WASHINGTON D.C. LINKS Docket DOT-OST-2012-0029 Exhibit AUS-024 Page 1 of 1



##  The Austin Information Technology Center, which began as a data center for the Department of Veterans Affairs, now provides IT services to federal agencies including Department of Justice, General Accountability Office, National Archives, NASA, General Services Administration and the Federal Highway Administration

 One of the IRS’s five regional service centers is in Austin

 The DC chapter of the University of Texas-Austin alumni association is the 2nd largest outside Texas (after the California state chapter)

 DC and Austin both fare well in quality of life and business rankings, suggesting similarity in populations and attributes

 “Next Hot Youth Magnet Cities” (DC #1, Austin #5) (WSJ)

 “10 Best Cities For the Next Decade” (Austin #1, DC #3) (Kiplinger)

 “The Next Boom Town” (Austin #1, DC #6) (Forbes)

 “America’s Smartest Cities (DC #1, Austin #6)

 "Cities on the Edge" (Austin #5, DC #7) (Spearling's)

# AUS HAS MORE O&D PASSENGERS THAN 41 MARKETS INSIDE THE DCA PERIMETER Docket DOT-OST-2012-0029 Exhibit AUS-025 Page 1 of 1

S ource: U.S. DOT, Origin-Destination Passenger Survey, and Offi cial Airline Guide, schedules for the week of June 11, 2012. AUS JFK CVG HSV CLE SDF DAY BTV PWM PIT DSM MHT SYR SRQ HPN MSN TYS NAS CAE MYR BUF EWR ALB ROC JAN SAV GSO GSP LEX GRR LAN CHA CRW YYZ BGR CAK PHL ORF ILM YUL HHH YOW 1,315 213 411 613 310 474 391 437 482 205 897 407 298 851 234 707 436 952 408 372 296 199 318 296 860 520 248 396 414 524 479 523 249 359 590 274 119 142 320 486 501 452 Distance Airport 85,384 75,552 72,884 71,270 69,300 64,526 59,142 54,908 52,104 50,324 49,956 49,188 46,326 43,534 43,042 42,940 40,568 38,584 38,000 34,032 33,486 33,128 32,296 28,838 26,282 26,280 26,228 24,470 23,952 23,674 21,006 20,586 11,118 11,094 10,842

9,384 9,122 7,012 6,618 6,404 5,546 3,766 YE Q3 2011 O&D Passengers No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes DCA Nonstop Service