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Southwest Airlines Opens Its Largest Hangar Facility at William P. Hobby Airport

  • $125 Million Maintenance facility showcases commitment to Houston through new infrastructure investment to support long-term growth for Southwest
Southwest Airlines opens new hangar facility at William P. Hobby Airport in Houston

DALLAS, Jan. 8, 2020 /PRNewswire/ — Southwest Airlines Co. (NYSE: LUV) today officially opened a new maintenance facility at William P. Hobby International Airport, highlighting the importance Houston holds for the nation’s largest domestic airline* and underscoring its commitment to Safety while investing in the Bayou City.

The 240,000 square foot maintenance complex, now the largest in the airline’s network, includes offices, training facilities, warehouse space, and a 140,000 square foot hangar. This allows for the nearly 400 Houston based Technical Operations Employees to work simultaneously on up to six 737 aircraft indoors and has space for an additional eight aircraft outside the hangar bays. It replaces Southwest’s smaller Technical Operations facility at Hobby Airport, which opened in 1988.

“This state-of-the-art hangar will support our Technical Operations Team’s unwavering commitment to Safety and maintaining our fleet to the highest standards,” said Gary Kelly, Southwest Airlines Chairman and CEO. “I’m very proud of our hundreds of Technical Operations Employees in Houston for the work they do every day to support our growing operation from Houston’s Hobby Airport, which includes almost 200 departures per day during peak seasons to nearly 70 destinations across the United States, Latin America, and the Caribbean.”

A Boeing 737 sits inside Southwest’s new hangar at William P. Hobby Airport in Houston

“We thank Southwest Airlines for its nearly 50-year partnership and commitment to the Houston community,” Mayor Sylvester Turner said. “Between the direct employment of 5,000 local residents, continued growth in flight activity, and this investment in infrastructure, the airline represents $3 billion in economic impact for Houston each year, and that’s something that makes us proud and thankful.”

“Having similar values allowed McCarthy Building Companies and Southwest Airlines to form an integrated team to address the many entities and hurdles involved with constructing such a high profile project at a major airport. This was instrumental in the success of this project and the teams’ ability to deliver it on time,” said Jim Stevenson, McCarthy’s Houston Division President. “We are proud of our partnership with Southwest and pleased to be part of this important maintenance hangar project that will have such a high impact on its operations.”

The airline is currently investing in aircraft maintenance build-outs at Baltimore/Washington International Airport and Denver International Airport, as well as an expansion of its maintenance facility at Phoenix’s Sky Harbor International Airport. Including the projects in Denver and Baltimore, the airline expects to have eight maintenance hangars throughout the United States.

Broadcast-quality photos and videos are available for download at the carrier’s online newsroom, swamedia.com/houstonhangar.

(Left to Right: Mario Diaz, Director, Houston Airport System, Houston Mayor Sylvester Turner, Gary Kelly, Southwest Airlines Chairman and CEO, Original Houston Technical Operations Employees Brad Shelton, Paul Mould, B.J. Ritter, and Landon Nitschke, Southwest Airlines SVP of Technical Operations)

Air New Zealand Entices Walmart Boss Home to Lead Airline

Greg Foran, president and CEO of Walmart U.S., smiles after speaking about the company’s Black Friday plans at a Walmart store in Secaucus, New Jersey

(Reuters) – Air New Zealand Ltd <ANZLY> named Walmart U.S. boss Greg Foran as its new chief executive on Friday, bringing him back home at a time the airline is trying to control costs in a lower-growth environment.

New Zealand-born Foran is credited with turning around Walmart Inc’s <WMT.N> U.S. business as its president and CEO since 2014, with the unit reporting 20 quarters of comparable sales growth under his leadership.

Air New Zealand Chairman Therese Walsh said the carrier was “thrilled to have attracted a world class Kiwi back home.”

“Greg has an impeccable track record in delivering strong commercial performance, outstanding customer focus and in building teams that can take a business to the next level,” Walsh said in a statement.

Grant Williamson, investment adviser at Hamilton Hindin Greene in Christchurch, said snagging Foran was a coup for the carrier.

“In the short term, it’s not going to have a major impact on earnings, there’s bigger things moving in the background like oil prices and global growth,” Williamson said. Air New Zealand shares were marginally higher at NZ$2.85 on Friday.

“But in terms of someone to have a steady hand on the wheel for Air New Zealand going forward, I don’t think they could do much better,” Williamson added.

Foran, who boosted Walmart’s sales by focusing on improving existing stores to keep costs and prices low, said he looked forward to building on Air New Zealand’s competitive advantage in customer focus and care.

The airline is known overseas for its quirky safety videos and consistently ranks highly in global airline customer surveys.

Foran will join Air New Zealand in the first quarter of next year, replacing Christopher Luxon who departed last month after seven years in the role. Luxon, a former Unilever executive, had also joined the airline after a career in fast-moving consumer goods.

During Luxon’s tenure, the carrier was recognised globally as an industry leader for its focus on innovation, environmental sustainability and diversity in hiring.

However, it has more recently faced challenges from a higher fuel bill and weak travel demand, leading the national carrier to report a 31% fall in annual profit in August.

Air New Zealand Chief Revenue Officer Cam Wallace, who had been an internal contender for the top job, according to sources with knowledge of the matter, welcomed the appointment on Twitter.

Foran will remain at Walmart until Jan. 31, when he will be replaced by the head of its Sam’s Club warehouse chain, John Furner.

“While we’ve been highly impressed with Mr. Furner’s work at Sam’s Club… he does admittedly have big shoes to fill,” said a note from Jefferies Group LLC <JEF.N>. “We can’t help but expect the market to react negatively to today’s news.”

(Reporting by Jamie Freed in Singapore and Devika Syamnath in Bengaluru, additional reporting by Nandita Bose in Washington; Editing by Sandra Maler and Jane Wardell)