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In a significant move for the local economy, Southwest Airlines has announced plans to establish a new crew base for pilots and flight attendants in Austin, which is expected to create 2,000 new jobs. This development is part of an economic agreement between the airline, the city, and the state, revealed during a news conference featuring Governor Greg Abbott.
The new base will be situated at Austin Bergstrom International Airport and is set to open in March, initially accommodating around 1,000 employees. According to Southwest, the workforce is projected to grow to its full capacity of 2,000 employees by mid-2027, with an average salary of $180,000 for these positions.
Governor Abbott remarked, “As we’ve seen Southwest grow, the Texas economy has grown. When Southwest recently decided to expand and add 2,000 more employees, we were keen to ensure that the project would be based in Texas, right here in Austin.”
Southwest CEO Bob Jordan attributed the decision to expand in Austin to a favorable package of economic incentives provided by the state and city. The governor’s office has granted the airline a $14 million award from the Texas Enterprise Fund, in addition to a $375,000 bonus for hiring veterans.
The Texas Enterprise Fund aims to provide “deal closing” grants to businesses considering new projects in Texas, making it a vital tool for attracting investments.
Austin Mayor Kirk Watson emphasized the importance of collaboration, stating, “The partnership among the city, the state, and Southwest to reach this agreement sends a strong message about what we can achieve together for the benefit of our residents.”
This announcement coincided with the Austin City Council’s unanimous approval of an incentive package for Southwest, valued at up to $5.5 million over five years. The airline will receive $2,750 from the city for each new hire based in Austin, provided the employee resides within city limits.
Jordan expressed that “this economic partnership made this decision easy.”
The construction of the crew base comes as Austin seeks to enhance its airport facilities, which have faced challenges such as overcrowded terminals and lengthy security lines amid the city’s rapid growth. A new concourse is currently under construction and is expected to be operational by 2030 as part of a $4 billion expansion project.
This new concourse will eventually add up to 40 additional gates to the airport, significantly increasing its current capacity of 34 gates.
Currently, Southwest Airlines operates approximately 130 daily departures from Austin, a figure that is projected to rise to well over 200 departures daily following the completion of the expansion, according to Jordan.
