City of Austin

The Austin City Council on Thursday approved a Chapter 380 economic development agreement with Southwest Airlines Co., supporting a major expansion of the airline’s operations at Austin-Bergstrom International Airport (AUS), marking one of the largest job-growth commitments in recent years. State and City of Austin leaders, including Governor Greg Abbott and Mayor Kirk Watson, joined Southwest Airlines executives at a news conference today to highlight the agreement’s significance for Austin’s workforce, aviation system and regional economy.

Southwest, Austin's largest carrier, plans to establish a full crew base, relocate its Command Center to AUS, and invest more than $8.4 million in airport improvements. The project will create 2,000 new full-time jobs while retaining 840 existing positions. All new jobs will pay at least the City Living Wage of $22.05 an hour and include health benefits for spouses/domestic partners and dependents.

"We're building lives and careers at the same time we’re building tarmacs and terminals," Watson said. "Southwest is choosing Austin because our people, our workforce, and our future make us a smart investment. This deal creates thousands of good-paying jobs, improves the passenger experience, and ensures the benefits flow directly to Austin workers, families, and tourists. This agreement is proof that Austin means business and cares about the success of its people."

"Southwest Airlines was born and raised in Texas and has been a core element of the economic growth we have seen in our state," Abbott said. "We are excited to announce that today Southwest Airlines will add over 2,000 high paying jobs right here in Texas. We are the home of economic opportunity for our fellow Texans more than any other state in the United States, and we know a key reason for that is because of everything Southwest Airlines provides. We are proud to partner with everybody connected with Southwest as well as the City of Austin on such a huge announcement for our state."

Strengthening Airport Operations and the Passenger Experience
Southwest’s expansion will also deliver key operational benefits for Austin-Bergstrom International Airport (AUS) by increasing staffing levels, strengthening on-site command capabilities, and improving aircraft availability. These enhancements will boost flight reliability, reduce disruptions, support additional nonstop routes, and improve the overall passenger experience as AUS continues to grow. By investing in new infrastructure, Southwest is also helping build long-term airport capacity at no upfront cost to the City.

"This investment demonstrates our commitment to Austin and to our customers," said Bob Jordan, President, Chief Executive Officer, and Vice Chairman of the Board. "As the largest carrier at Austin Bergstrom International Airport, we appreciate the vision of Governor Abbott and Mayor Watson in clearing the way for Austin to become an even bigger part of our future."
 
Incentive Framework and Community Benefits
The agreement authorizes up to $5.5 million in possible incentives over five years, but payments will be made only after Southwest demonstrates annual compliance and creates eligible Austin jobs. A portion of each payment (10%) will go directly into the City's Childcare Assistance Reserve Fund, marking its first major contribution to a dedicated program that supports childcare affordability for Austin's working families.

There are no upfront subsidies, no tax abatements, and no automatic payouts. All incentives are capped and tied to job creation and community benefits, ensuring the deal remains fiscally responsible and protective of taxpayer dollars.

The expansion also includes required workforce and community benefits, including partnerships that support K–12 aviation career awareness, collaboration with programs offering career exploration and job fairs, participation in skills-based training or apprenticeship pathways, and the provision of paid internship opportunities for high school students. The agreement further requires ongoing volunteerism and community support efforts that benefit local nonprofit organizations and schools. Together, these initiatives help build long-term aviation career pathways and expand economic mobility for Austin.

In partnership with Southwest Airlines and our state and local partners, Austin is charting a course for long-term economic opportunity, stronger aviation infrastructure, and expanded pathways for Austinites to thrive in one of the nation’s fastest-growing regions.

"We are incredibly excited for Southwest Airlines to be the anchor tenant for our future Concourse B at Austin–Bergstrom International Airport. Today’s announcement is about creating thousands of high-quality, high-wage jobs for Austinites and fueling long-term economic growth for our region,” said Ghizlane Badawi, CEO of AUS. “This investment will support expanded nonstop air service options, strengthen the reliability of our operations, and ensure Austin remains a premier gateway for travelers."