The city of Austin, Texas, this week signed off on new incentives meant to support Southwest’s planned expansion in the area.
According to the Austin American-Statesman, the deal will help Southwest add as many as 2,000 jobs in the region. City officials have not said what kind of jobs the carrier is looking to bring to Austin, but public records show the positions would have an average annual salary of about $180,000.
The incentives package is worth up to $5.5 million, the American-Statesman reported.
As part of the deal, Southwest will receive $2,750 for each new Austin-based hire over the next five years. The airline will have to donate 10% of that amount to the city’s child care assistance program.
A representative of a local economic development organization told the American-Statesman that preliminary discussions between the city and Southwest include plans for a training center for pilots and flight attendants and a larger crew base.
The expansion project is expected to generate almost $20 million in local tax revenue and create an additional 5,100 jobs indirectly, in sectors like construction and hospitality.
Southwest, which has its headquarters in Dallas, is already the largest single carrier at Austin-Bergstrom International Airport. It flies about 40% of all passengers there.
The carrier will expand its footprint in Texas’ capital city even further when a second concourse opens at Austin-Bergstrom in the early 2030s.
