"New Austin airport budget terminal weighed"

Thursday, August 23, 2007 

New airport terminal weighed
City to vote on low-cost terminal at airport 
The Austin (TX) American-Statesman


Austin's airport will get a low-budget annex and dirt-cheap flights to
Mexico if the City Council today agrees to lease up to 40 acres to GE
Commercial Aviation Services. The Connecticut-based company intends to build
a temporary modular terminal of about 25,000 square feet with three gates,
putting it in the center of Austin-Bergstrom International Airport well away
from the main terminal. The first customer for GE's facility would be
VivaAerobus, a Mexican "ultra-low-cost" airline that plans to have routes to
six Mexican cities, including Monterrey and Cancún. The company may build a
permanent terminal later if there are enough flights and other carriers to
justify the investment. 

Such frill-free airlines, based on a popular European model, require equally
Spartan terminals to keep their costs low enough for their fares, which
typically run well under $100 one-way. The lease for GE would be no longer
than 30 years at 22 cents a square foot per year initially, plus a
percentage of net revenue to be determined. If GE used the full 40 acres
immediately, which is unlikely, the annual ground rental would be about
$383,000. 

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