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United and Houston Airport System Begin Redevelopment Project at Houston’s George Bush Intercontinental Airport

Houston Mayor Annise Parker and the Houston Airport System in partnership with United Continental Holdings, Inc. (NYSE: UAL), today broke ground on the first phase of a three-phase redevelopment project at George Bush Intercontinental Airport. Phase one of the project, to be completed in 2013, will create a new Terminal B south concourse dedicated to regional jet operations.

The $160 million south concourse project will replace the existing south side flight stations with a new 225,000 square-foot facility to accommodate United’s regional aircraft. At nearly four times the size of the existing space, the new concourse will provide a better customer experience, as it will feature modern and expanded gate lounge areas, concessions and restroom facilities.

Travelers will access the new concourse from the terminal via a 95-foot-wide bridge with 13,000 square feet of food, beverage and retail concessions – a 500-percent increase in concession space over the current facility. The concourse will feature 28-foot-high floor-to-ceiling glass windows, offering expansive tarmac views from spacious central passenger lounge areas with durable and modern interior finishes.

“As I noted in my inaugural address, creating jobs for Houstonians is my number-one job for the next two years,” said Mayor Parker. “Phase one of this billion-dollar investment with United is the first delivery on that promise. We celebrate the boost to our local economy that will result from this investment. Houston will thrive as our global gateway expands to include more flights and greater access to business connections around the world.”

“Houston is our largest hub and a vital international gateway in United’s network,” said Pete McDonald, United’s executive vice president and chief operations officer. “This investment in the Houston hub will allow us to accommodate more customers and more aircraft types, provide new amenities for travelers and improve efficiencies for the new United.”

via Fly2Houston – Houston Airport System.

United CEO says union deals won’t wrap this year | Business | Chron.com – Houston Chronicle

Any marriage faces its stumbling blocks, and for the United and Continental airlines merger, it’s labor issues that are delaying the honeymoon.

The two carriers merged on Oct. 1, but they probably won’t reach joint collective bargaining agreements with all of their unions by the end of this year as they’d hoped, the CEO of their parent company said Thursday. The airlines must combine their labor groups to achieve cost savings they anticipated in the merger.

Even without the agreements, they can operate as planned as a single airline called United once they receive Federal Aviation Administration approval, which is expected later this year.

“I originally set an admittedly aggressive goal of reaching joint agreements with all of our representative work groups by year-end,” said Jeff Smisek, CEO of United Continental Holdings, during a conference call with analysts and reporters to discuss second-quarter earnings.

“I don’t think we’ll reach that goal given the complexities of merging mature, long-standing contracts as well as factors outside of our control,” Smisek said. “Although I’ve made it clear to my own negotiators that I would like to reach joint collective bargaining agreements promptly, we are not going to repeat the mistakes of the past and create an unsustainable cost structure.”

via United CEO says union deals won’t wrap this year | Business | Chron.com – Houston Chronicle.

With addition of Southwest at Newark Liberty, fare fight expected | NJ.com

When Southwest Airlines begins flying out of Newark this spring, the discount carrier will join the battle for air supremacy in the skies over the metropolitan area.

Southwest and competitors Delta, Continental, American and JetBlue will be vying to steal customers from each other at New York and New Jersey airports. They will be in a dogfight at all three international airports — Newark Liberty, La Guardia and John F. Kennedy — the nation’s most hotly contested airspace.

“There won’t be a single winner in New York, but the more the airlines compete, the better it is for the consumer,” said Mark Murphy, founder of TravelTribe.com, a consumer travel site.

The start of the fare fight at New York metropolitan airports will be occurring as ticket prices have been inching up elsewhere in the country to make up for an increase in the price of jet fuel.

Passengers can expect fare wars on flights to Chicago, Phoenix, Denver and Houston, travel experts say, all routes that Southwest will also have out of Newark.

via With addition of Southwest at Newark Liberty, fare fight expected | NJ.com.