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Austin-Bergstrom International Airport

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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288 total articles

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12 total articles

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Azul starts to position as an attractive potential partner for JetBlue - and perhaps even United

27-Jun-2014 10:45 PM

Brazilian LCC Azul is hardly catching its breath as its merger integration with smaller domestic carrier TRIP winds down. After a rapid rise to achieve 17% domesitc market share, Azul now has ambitious plans to acquire Airbus widebodies and launch international service to the US.

Azul plans to introduce flights from its largest base Campinas, near Sao Paulo, to Fort Lauderdale and Orlando in Dec-2014 followed by Campinas-JFK in Jul-2015. No formal tie-up has been announced, but those are three of JetBlue’s largest bases, particularly Fort Lauderdale where JetBlue has a stated goal of reaching 150 daily departures. Azul was founded by JetBlue’s creator and founder David Neeleman, so there is a significant nexus between the two airlines, even if all was not sweetness and light when Mr Neeleman parted company with the US LCC.

There are meanwhile inherent risks in Azul’s decision to add long-haul international service after growing at break-neck speed domestically since startup. It also unclear how Azul is supporting the costly expansion after shelving plans for an initial public offering in 2013.

JetBlue Airways’ hybrid model remains enigmatic as cost creep outpaces revenue production

30-Apr-2014 10:50 PM

JetBlue finds itself at a crossroads during 2014 as it rolls out its highly touted Ka-band supported Wi-Fi connectivity, debuts a new business class product dubbed Mint and resolves itself to the fact that its pilots have voted in favour of unionisation – which, judging by the pilots' celebrations, almost certainly points to higher crew costs, without necessarily the corresponding productivity gains.

The new product developments underpin JetBlue’s strategy of creating a carrier that targets the mid-market passenger segment looking for medium-frills at a reasonable price. In some ways it is a model that is previously unknown, and JetBlue faces obstacles in executing its strategy effectively.

In the short term the carrier continues to battle cost creep and some revenue pressure in 2Q2014 from fallout over the winter storms that wreaked havoc in much of the US in 1Q2014. In some ways JetBlue is in the unenviable position of having to outline its long-term vision to investors and sceptics who are only seeking short-term rewards.

US airline consolidation: United Airlines reduces service as Cleveland's hub role is pared back

4-Feb-2014 9:26 PM

Shortly after Cleveland Hopkins International airport reported a slight uptick in passenger counts for FY2013 – the first such increase since 2007– the airport’s anchor carrier United Airlines tabled plans to downsize its Cleveland hub significantly.

The move is neither surprising nor unexpected given Cleveland’s proximity to United’s large hub at Chicago O’Hare. With all US major carriers moving to centralise their operations in hubs where they maximise connecting revenue, Cleveland’s fate has been sealed for quite some time. In order to gain US government approval for the 2010 merger of United and Continental, the carriers agreed to uphold a certain level of operations at Cleveland for about two years after the merger. So it appears United now has some leeway to overhaul and downsize Cleveland, a hub it claims has been unprofitable for more than a decade.

United’s moves in Cleveland reflect its stated philosophy of ensuring every market makes a positive contribution to the carrier’s entire system. Many markets on the chopping block from Cleveland simply could not drive the connecting revenue necessary to make the hub viable. The next chapter, yet to be written, is how the ever-present ULCCs and other low-cost airlines will respond to the opportunities opened up in this way.

Southwest Airlines presses to improve its fortunes in Atlanta by officially de-hubbing in Nov-2013

2-May-2013 11:00 PM

Southwest Airlines aims to realise its goal of dismantling AirTran’s hub in Atlanta in Nov-2013 as a means to bolster local passengers at the airport in the hopes of improving Atlanta’s performance. The declaration that Atlanta will officially become a point-to-point operation completes efforts by Southwest to eliminate unprofitable flow-through routes and concentrate on areas where it, along with AirTran, has relative strength.

After completing its acquisition of AirTran in May-2011, Southwest set its sights on network optimisation between the two carriers. The exercise essentially resulted in many small markets being eliminated from AirTran’s network and Southwest’s determination that Atlanta would perform more effectively in the combined network through the adoption of Southwest’s point-to-point route management strategy.

Virgin America plans rapid route expansion in 1H2013 even as capacity growth slows

22-Feb-2013 3:06 AM

Virgin America is launching several new routes from its bases in San Francisco and Los Angeles in 1H2013 even as it cuts its annual growth rate from an annual average of 28% during the last three years to the mid-single digits during 2013 and takes delivery of just a single aircraft during the year. The routes are reflective of the airline’s network strategy during the last couple of years that entails inaugurating a mix of business and leisure markets that have ample existing service. Virgin America’s network tactics have been called into question during the last few years as profitability continues to elude the carrier; and it is not certain that the new routes it is introducing in 2013 will bring the airline closer to its first full-year profit.

New routes introduced by the carrier beginning in Apr-2013 and continuing through Jun-2013 are largely well-served by Virgin America’s main rivals United and American along with low-fare carriers JetBlue and Southwest. One of Virgin America’s most interesting moves is its entry into the crowded Los Angeles-San Jose market. It is an interesting experiment for the carrier as San Jose Norman Mineta Airport is just 49km away from its largest base and headquarters in San Francisco, from which Virgin America offers numerous daily flights to Los Angeles. With so many carriers already serving the short-haul market, it is uncertain if Virgin America can steal or stimulate enough traffic on the route to achieve sustained profitability.

Southwest Airlines plots course to meet previously missed ROIC targets

18-Jan-2013 7:45 AM

Southwest Airlines plans to aggressively grow its return on invested capital (ROIC) by 8 ppts in 2013 to 15%, driven by USD1.1 billion in revenue gains derived from schedule adjustments, new ancillary fees and an improved revenue management system. The carrier must close a wide gap in order to meet its goal after recording a 7% ROIC for the 12M ending in Sep-2012, and admitting it fell short of an original 15% target for 2012. But Southwest management is confident that 2013 is the year it will attain its often-cited return goals as it seeks to contain unit cost growth and capture USD400 million in estimated synergies from its acquisition of AirTran.

Carrier executives are tempering some of the confidence they are exuding about meeting ROIC goals with a cautious declaration that there is no guarantee that 15% returns will be displayed in the airline’s year-end 2013 results.

Southwest CEO Gary Kelly told investors in late Dec-2012 “it is not a promise, but we’re sharing with you our plan”. Previously Southwest has struck a cautious tone for 2013 as its operating profit during 3Q2012 plummeted USD174 million to USD51 million.

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