Austin-Bergstrom International Airport
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- 3733m x 46m
2743m x 46m
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Austin-Bergstrom International Airport serves the city of Austin, Texas, USA. The airport ranks among the largest in Texas, with direct links to major cities across the country. Southwest Airlines is a major operator at Austin, as are the regional subsidiaries of the US majors.
Location of Austin-Bergstrom International Airport, United States of America
Ground Handlers and Cargo Handlers servicing Austin-Bergstrom International Airport
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469 total articles
Texas Disposal Systems and Austin-Bergstrom International Airport complete first year of partnership
30 total articles
The US has been a key market for the Mexican low cost airline Volaris since the company launched transborder service in 2009, reflected in the more than 23 US markets the airline presently serves. For many years Volaris’ transborder push originated in other bases outside Mexico City, given slots constraints at Juarez International airport and previous caps on the number of airlines serving transborder routes from Mexico City.
But in 2017 Volaris is entering more contested markets, taking advantage of a new US-Mexico bilateral that lifts restrictions on the number of airlines operating on some routes between the two countries. It is upping competition with its Mexican rivals Aeromexico and Interjet on services from Mexico City, as well as with the large US global network airlines.
It is not clear if the routes will absorb the additional capacity added by Volaris, but the airline will be the only ULCC operating on those routes, betting it can stimulate traffic with its ultra-low cost model in the already crowded markets.
Frontier Airlines began 2016 making meaningful strides in its on-time performance, besting its closest US ULCC rival Spirit Airlines. But its performance in the busy summer months of Jun-2016 and Jul-2016 slipped, due largely to challenges in ground handling. Now Frontier faces the task of restoring its OTP to consistently higher levels.
Frontier’s network composition is slightly different from those of the two other US ULCCs, Allegiant and Spirit. Its average weekly frequencies fall between those offered by its ULCC counterparts and, in some ways, Frontier’s network changes seem more rapid than those of other ultra-low cost airlines as it works to tailor the ULCC model to its specific strategy.
As a privately held company, Frontier does not discuss its growth prospects as freely as Allegiant and Spirit. But the airline has an ample pipeline of Airbus deliveries that will drive its growth over the medium to long term. During the past year the prospect of an IPO to fund Frontier’s growth has surfaced and quietened down; but at some point in the not-too-distant future the company’s investors will seek rewards for their endeavours.
International passenger numbers for the Mexican low cost airline Interjet skyrocketed more than 50% in the first seven months of 2016, reflecting the launch of more than 10 new international routes during that period, and with US transborder routes representing the bulk of Interjet’s international expansion.
Interjet is no doubt positioning itself to seize on opportunities created by a new, finalised bilateral between the US and Mexico that lifts restrictions on the number of airlines operating on specific routes between the two countries. Interjet’s rival Volaris has also grown its US transborder passengers in 2016, but it has a different route profile from that of Interjet. Generally, Interjet is subject to higher levels of competition on some of its transborder routes than Volaris, given that Interjet and Volaris offer different products to their passengers.
During the past two to three years Interjet and Volaris have been essentially tied for the coveted position of Mexico’s second largest domestic airline. But for the seven months ending Jul-2017 Volaris logged 22% domestic passenger growth, while Interjet’s passenger numbers inched down slightly, resulting in Volaris assuming full command of the second place ranking.
Mexico-US transborder airline market Part 1: Interjet and Volaris capitalise on new US opportunities
Mexican low cost airlines Volaris and Interjet are engaged in a significant transborder push in 2016. Combined, the airlines will launch a dozen routes to the US as an upcoming new bilateral lifts restrictions on the number of airlines operating routes between the US and Mexico. With many countries in Latin and Central America experiencing economic weakness, the US is a safer bet for expansion in the near term.
Volaris and Interjet target different passenger segments, and the airlines have little overlap on the new flights that they are launching to the US. Volaris cites numerous route opportunities in the US transborder market, and has grown rapidly in that space during the past several years. Interjet has grown more slowly but has quickly broadened its US reach in 2016, entering some markets that already have ample service.
Although US airlines still dominate the transborder market Mexican airlines are working to chip away at the sizeable gap between them, growing their international passenger numbers 10% year-on-year for the first five months of 2016.
(This is Part 1 of two reports examining the Mexico-US transborder market. Part 2 will focus on the proposed joint venture between Aeromexico and Delta).
Alaska Air Group is planning capacity expansion of 8% in 2016 after growing nearly 11% in 2015, including a 12.5% expansion in 4Q2015. Much of the push during the final three months of 2015 is additions to existing markets where Alaska concludes demand remains robust.
Although Alaska’s YE2015 capacity growth may be outsized compared with other US airlines, its ASM expansion between 2009 and 2014 was in the mid to high single digits, and its 2016 projections are in line with those trends. It also remained profitable during that time period, which featured soaring fuel prices and a global economic downturn.
During early 2016 Alaska is facing some headwinds from capacity growth by its competitors, but concludes much of that growth is the annualisation of new route launches that occurred in 2H2015. With the competitive onslaught Alaska has endured in Seattle during the last couple of years, it is clear the airline can handle the industry capacity growth in its markets. Its own network development during 2015 reflects a strengthening of its presence in Seattle in both small and large markets to leverage both connecting and local traffic.
Southwest Airlines has drawn much attention during 2015 for the disruption that its massive expansion from Dallas Love Field has created in the overall Dallas market. The capacity additions and overall lower fares have resulted in Dallas emerging as the largest US market, with deterioration of pricing traction being a major feature.
The reality is that Southwest is capping off a few years of changes, including the full integration of AirTran, a de-hubbing of Atlanta, and the launch of Southwest-branded international flights from a new terminal at Houston Hobby.
As Southwest’s domestic network continues to reach higher levels of penetration, questions are arising over the airline’s network strategy going forward. Recently it has hinted the timing could be favourable to shore up short haul markets, after focussing on longer haul flying for the last decade and a half. Some of its planned new routes for 2016 reflect Southwest’s willingness to test the waters on short haul flights.