Austin-Bergstrom International Airport
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- United States of America
- Domestic | International
- 3733m x 46m
2743m x 46m
- Airlines currently operating to this airport with scheduled services
- ABX Air
Delta Air Lines
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- Aer Lingus
Air Tahiti Nui
All Nippon Airways
KLM Royal Dutch Airlines
South African Airways
Virgin Atlantic Airways
Austin-Bergstrom International Airport serves the city of Austin, Texas, USA. The airport ranks among the largest in Texas, with direct links to major cities across the country. Southwest Airlines is a major operator at Austin, as are the regional subsidiaries of the US majors.
Location of Austin-Bergstrom International Airport, United States of America
Ground Handlers and Cargo Handlers servicing Austin-Bergstrom International Airport
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338 total articles
19 total articles
Spirit and Frontier add new ULCC competition in Atlanta, will Delta or Southwest feel the most heat?
Atlanta Hartsfield International airport is becoming a hotbed of ULCC activity in 2015 with both Spirit and Frontier Airlines planning ample expansion from the airport, dominated by full service global airline Delta.
It is an interesting development in the post-consolidated landscape of the US, and Atlanta in particular where Southwest is the second largest airline after acquiring and folding AirTran into its operations. The additions by Spirit and Frontier show those airlines believe that Atlanta is ripe for stimulation, even though historical low fare leader Southwest has a major presence in the market. ULCCs have now assumed that role in the US market place.
Atlanta is also perhaps a test case for the ULCC effect since unlike Cleveland, it is not a hub that has lost service. It is also one of the few markets where both Spirit and Frontier have opted to expand aggressively on some of the airport’s largest routes.
Virgin America joined most US airlines in recording solid financial results for 4Q2014 and CY2014 – marking the first time it has reported its performance as a publicly traded company after completing an initial public offering in late 2014.
The airline delivered solid top-line revenue growth in each period, but faced some cost headwinds stemming from increased salaries and higher airport costs. Compensation expenses will continue to pressure Virgin America’s unit costs for CY2015.
Virgin America is also facing some revenue challenges in the New York transcontinental market and in Dallas Love Field driven by significant increases in industry capacity. The airline believes that those two markets should return to a more normalised state at some point, but it does appear the competitive dynamics shaping those markets will remain intact at least through 1Q2015.
Austin-Bergstrom Airport capped off 2014 by recording 7% passenger growth after reaching a milestone in Mar-2014 with the debut of its first trans-Atlantic service by British Airways on flights to London Heathrow.
Although it is not a hub for any major airline, Austin does have numerous favourable elements that make it ripe for continued growth, including a strong economy, an unemployment rate lower than the US national average and a relatively young population.
Obviously the airport aims to expand its long-haul offerings; but that could prove difficult in the short term given weak macroeconomic conditions in some trans-Atlantic regions. But during 2015 Austin is regaining transborder flights from Air Canada with flights to Toronto, while US domestic airlines also plan some expansion at the airport.
Los Angeles International Airport has emerged as a battle ground for American Airlines and Delta Air Lines during the last couple of years as the market, while hugely fragmented, retains a high level of importance within the networks of most US major airlines.
But the success of each airline’s recent expansion in Los Angeles is tough to predict. Both American and Delta unsurprisingly declare that their operations in Los Angeles are successful; but the longevity of that success is difficult to predict given the tough competitive dynamics in the market.
The investments each airline is making in Los Angeles obviously carry some risk. But the scenario for American is a bit different given it does not have a true west coast hub for long-haul traffic, and the operating constraints in Los Angeles threaten to constrain its optimal growth path.
Allegiant Air is making some subtle network shifts as consolidation in the US airline industry has made operating from mid-size hubs more viable for the airline. During 2014 it has rapidly built up Cincinnati, as Delta has pulled down service at its smaller hub to maximise its network utility.
During 2015 Allegiant is introducing flights from other mid-size markets as it concludes those larger regions may not require as much deep discounting as some smaller markets within its network. The airline is also using its Airbus narrowbodies to increase its network breadth by placing those jets in markets unviable for its MD-80s, which still comprise the majority of its fleet.
Allegiant’s moves show that even as the US market may appear to have reached a steady state of maturity, market dynamics within that framework are changing, albeit at less dramatic levels.
Southwest Airlines is once again taking aim at United in Houston, arguing that United should relinquish some of the route rights it holds to destinations in Mexico in order for Southwest to gain access to those markets.
During 2012 Southwest leveraged a campaign to launch international service from Houston Hobby, a move strongly opposed by United, which is the largest airline at Houston Intercontinental. Southwest prevailed and now aims to launch transborder flights from Hobby in late 2015.
Route authorities in some of Southwest’s desired markets between Houston and Mexico are full, prompting Southwest to argue that designations held by both United and its regional affiliates in essence blocks new low-cost competition in the market. Ironically, ULCC Spirit worked to gain access to some of those markets prior to Southwest seeking approval for launch.