Austin Approves $5.5M Deal to Create 2,000 Southwest Airlines Jobs
The City of Austin has approved a significant incentive package aimed at facilitating the expansion of Southwest Airlines. The deal, valued at up to $5.5 million, is expected to create approximately 2,000 new jobs over the next five years. This initiative underscores Austin’s growing status as a key market for the airline, which is already the largest carrier at Austin-Bergstrom International Airport.
Austin’s Support for Southwest Airlines Growth
On Thursday, the Austin City Council unanimously authorized negotiations for the incentive package, which is designed to support Southwest’s plans for expansion. City officials have not disclosed the exact nature of the new positions, but documentation indicates an average salary of around $180,000 for these roles.
Economic Impact and Job Creation
According to Stacy Schmitt, senior vice president of communications for Opportunity Austin, the agreement is a vital partnership for the community. As part of the effort, discussions have involved creating a state-of-the-art training facility for pilots and flight attendants, alongside building a more extensive crew base to facilitate additional nonstop routes.
- Estimated creation of 2,000 jobs in Austin.
- Average salary of $180,000 for new positions.
- Projected generation of $19.8 million in local tax revenue.
- 10% of funds returned to the Childcare Assistance Reserve Fund.
Local and Regional Benefits
This expansion is expected to enhance job stability in the region, contributing to the local economy by stimulating businesses and fostering neighborhood stability. Council Member Vanessa Fuentes highlighted the positive implications of generating stable, well-paying jobs for families in the community.
Additionally, Southwest Airlines has expressed its commitment to the region. The airline previously recorded a remarkable increase in passenger traffic, with over 872,000 passengers flying through Austin-Bergstrom in October, marking a 13% rise from the previous year.
Looking Ahead
As part of Southwest’s strategic growth, the airline plans further expansions at Austin-Bergstrom as the airport itself develops with the upcoming second concourse set to open in the early 2030s. This continued collaboration between the city and Southwest Airlines is anticipated to create robust opportunities for job seekers while positioning Austin as a significant hub for the airline’s operations.
