United begins small market cuts from Houston in fallout from battle over Hobby

United Airlines is beginning a threatened 10% capacity reduction from its Houston Intercontinental hub (IAH) in Sep-2012 through the elimination of mostly small markets served by 50-seat regional jets and long-haul service to Paris. The carrier is following through on a pledge to reduce its footprint at its largest US hub following a politicised decision by Houston City Council to allow international flights from Hobby Airport, which currently only serves domestic destinations.

United and Southwest spent nearly all of 1H2012 attempting to convince the city of Houston that their respective stances on international expansion at Hobby would produce the most favourable economic outcomes. In the end Houston sided with Southwest, giving the carrier authorisation to push forward with the development of a new terminal at Hobby to support international service to Latin America and the Caribbean for a targeted 2015 launch. The city dismissed United's arguments that international passenger spill to Hobby would be detrimental, and pressure the carrier's performance on international routes from IAH.