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, 2012 
2 

 

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-operator of Austin-Bergstrom International 

Airport (“AUS”), respectfully submits its comments in support of the Applications of 

Southwest Airlines (“Southwest”) 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 the Department of Transportation’s 

(“Department”) February 24, 2012 Order, the City of Austin, as the owner-operator of 

Austin-Bergstrom International Airport (“ABIA”), submits these comments in support of 

the Applications of Southwest Airlines, Inc. ("Southwest”) and JetBlue Airways, Inc. 

(“JetBlue”), for an exemption from subparts K and S of 14 C.F.R. Part 93, to permit 

Southwest and JetBlue to operate daily roundtrip flights between Ronald Reagan 

Washington National Airport (“DCA”) and Austin-Bergstrom International 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 Austin-Bergstrom International 

Airport (ABIA) and Ronald Reagan Washington National Airport (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 an 
3 

award would connect the Capital of Texas with our Nation’s Capital and provide 

significant public benefit to both the 1.8 million 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 Washington 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 14th 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 ranked #1 in job and income growth for 2009-2010 (Exhibit AUS001). 

 Austin travelers to DCA are currently paying significantly higher fares than from 

the other markets vying for nonstop service (Exhibit AUS-002). Competitively 

priced nonstop service will stimulate both business and leisure travel and grow the 

market well above the 85,000 annual passenger 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 service by United (SFO) and US Airways 

(SAN), Austin is the second largest market under consideration without nonstop 

service to DCA. 

 Austin yields to DCA are the highest 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 headquartered 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 college 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 residents. Nonstop service by a top notch 
4 

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, the applications of Southwest and JetBlue provide the 

Department with a unique opportunity to significantly improve air service at AustinBergstrom International Airport. With the 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 objectives for public benefits and unquestionably 

be successful for years to come. 

II. Austin is the Best Choice for Allocating Beyond Perimeter Slot Exemptions 

Austin is the Capital of Texas, the 14th 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 ranked #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 exemption 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 domestic network benefits beyond the 1,250 

mile perimeter; 

(B) increase competition in multiple markets; 

(C) not reduce travel options for communities 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, including lower fares, higher capacity, and a variety 

of service options. 

With two applications for service to ABIA before the Department, there is no 

question that an award to Southwest or JetBlue 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 the 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 will 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 limited incumbent carriers at DCA, no small 

community service will be lost with this grant. In fact, Southwest intends to fly this 

service utilizing its newest Boeing 737-800 series with 175 seats; JetBlue would utilize 

an Embraer E190 with 100 seats. These aircraft are fuel efficient and can meet all noise 

requirements and operate efficiently at Reagan 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 from DCA. There are numerous business, 

commercial, government, association and leisure 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 greatly improve their 

effectiveness. Nonstop service provided by successful low cost carriers such as 

Southwest and JetBlue will provide 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 benefit tremendously from affordable access to 

Washington. The eleven colleges and universities 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 Austin 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 and 
7 

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, fostering 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-Bergstrom 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 passengers, has more passenger demand for 

DCA service than 41 within the perimeter airports 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 Department can be confident that awarding 

exemptions to Austin will be successful. 

III. The Proposed Service to Austin Would 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 markets without nonstop service to DCA 

currently. The market size would 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 comparative analysis) Austin travelers are paying 

substantially more to travel 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 when adjusted for differences in stage, see Exhibit 

AUS-003) 

Both Southwest and JetBlue expect to publish fares at less than half the current 

level. Southwest estimates it, and the well-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 million 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 DOT O&D data). There are another 39,000 

DCA O&D passengers who live within 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. With 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 Department has the opportunity to positively 

impact travelers in the Capital City of Austin, 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 PASSENGERS PAY FAR MORE PER MILE 

THAN OTHER APPLICANTS FOR DCA EXEMPTIONS* ................................. AUS-004 

AUSTIN COMPANIES WITH DC-AREA HEADQUARTERS ............................ AUS-005 

NATIONAL ASSOCIATIONS HEADQUARTERED 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 CENTER ........................................................................ AUS-013 

PROJECTED GROWTH BY COUNTY 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-018 
13 

RECENT AUSTIN RANKINGS: BUSINESS ......................................................... AUS-019 

RECENT AUSTIN RANKINGS: QUALITY OF LIFE .......................................... AUS-020 

ABIA AWARDS ...................................................................................................... AUS-021 

THE AUSTIN MARKET HAS ACHIEVED 

26 CONSECUTIVE MONTHS OF POSITIVE GROWTH .................................... AUS-022 

AUSTIN PASSENGER TRAFFIC HAS REACHED 

RECORD LEVELS .................................................................................................. AUS-023 

A SELECTION OF AUSTIN – WASHINGTON D.C. LINKS ............................... AUS-024 

AUS HAS MORE O&D PASSENGERS THAN 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)

Rank Distance

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

Source: U.S. DOT, Origin-Destination Passenger Survey, and Official Airline Guide, schedules for the week of June 11, 2012.
0

20,000

40,000

60,000

80,000

100,000

120,000

2002 Q1 2002 Q2 2002 Q3

2002 Q4

2003 Q1

2003 Q2 2003 Q3 2003 Q4

2004 Q12004 Q2

2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3

2005 Q42006 Q1

2006 Q2 2006 Q3 2006 Q4

2007 Q1

2007 Q2

2007 Q3

2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4

2009 Q1

2009 Q2

2009 Q3 2009 Q4 2010 Q1

2010 Q2

2010 Q3

2010 Q4 2011 Q1 2011 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)

Rank Distance

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 Defense & 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 4th 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

Kimble +2.1%

4.6

+1.3% Gillespie

26.6

+8.9%

Llano

20.2

+6.4%

Burnet

50.8

+13.7%

Blanco

9.9

Kerr +6.0%

51.8

+6.4% Kendall

38.6

Bandera +16.3%

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

Lavaca +3.1%

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

Austin

Dallas-Ft. Worth

Houston

Victoria

San Antonio

Odessa-Midland

Beaumont-Port Arthur

Waco-Temple-Bryan

Corpus Christi

Amarillo

National Median

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 1st for total jobs added and rate of growth from 2006 to 

2011 (Bureau of Labor Statistics)

 Austin ranks 3rd 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 Cities 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 Best 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 Life. (Business Facilities, 7-8/10)

 14 Austin area high schools rank in the 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 Raise 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

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

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

Source: U.S. DOT, Origin-Destination Passenger Survey, and Official 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

Airport Distance

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