Letter to United Airlines CEO Jeffrey Smisek

Letter

Dear Mr. Smisek,

I write to ask that United Airlines initiate daily direct roundtrip air service between Albany International Airport (ALB) and Houston Intercontinental Airport (IAH) in order to connect New York's booming Tech Valley business community with its established counterpart in Texas. In addition to linking Capital Region travelers to this ripe southwestern tech market, direct flights would open up an improved connection between New York's "Tech Valley" and California's "Silicon Valley." This exciting prospect would further enhance the growing economic connection between the country's two high tech regions and help spur even closer ties. With important hubs in both Albany and Houston, I am confident that more direct air service between Albany International Airport and Houston Intercontinental Airport would uphold United Airlines' commitment to excellent service and show tremendous foresight.

United Airlines could receive around $1.5 million in incentives in order to help smooth the transition to this new service to IAH. These incentives include at least $750,000 in federal cash incentives as well as credits for landing fees and a locally sponsored advertising campaign to promote the new service. ALB has raised approximately $475,000 in Airport Rate and Charges credits and $300,000 in advertising promotions to attract low-cost airlines that will initiate a high-value route to one of these Hubs.

Let me explain how "Tech Valley" and "Silicon Valley" are connected today. The Capital Region is home to SEMATECH, GlobalFoundries, and the College of Nanoscale Science and Engineering (CNSE).SEMATECH, a research consortium whose members produce 50 percent of world's computer chips, has moved from Austin, Texas to Albany. Many of its members, such as HP and Intel, are headquartered in Silicon Valley.

Albany's economy is positioned to grow rapidly beginning in early 2012 when GLOBALFOUNDARIES commences full operation of a 1.3 million square foot semiconductor manufacturing facility just north of Albany. The new facility will spur economic activity as vendors build facilities and employees move into the region to supply and support GLOBALFOUNDARIES. Business travel between Albany and destinations such as Austin and the Silicon Valley is expected to increase dramatically once the facility is open. Albany International Airport is the primary airport in a catchment area that includes Albany and a large geographic region of Upstate New York. Albany is the state capital of New York, and the metropolitan statistical area (MSA) is the fourth largest MSA in New York with a population of 857,592 residents .

IBM, of course, is based in New York. CNSE has the world's only university-based 300mm and 450mm wafer research and development facility. CNSE's Albany NanoTech complex hosts the world's leading nanotechnology companies including IBM, SEMATECH, GlobalFoundries, Intel, Toshiba, ASML, Applied Materials, Tokyo Electron, and Novellus, all of which have facilities in Silicon Valley as well. These are just a few great examples of how Tech Valley and Silicon Valley are already tied together and they demonstrate the potential benefits to our local economy, as well as United Airlines, if new flights between Albany and Houston were established.

This is an excellent time for you to consider daily direct roundtrip air service between Albany and Houston. As Tech Valley grows in prominence, these flights could become the new "Nerd Bird." The future is very bright in both regions and this commitment would certainly make United Airlines the go-to airline for America's high tech industry.

Sincerely,

Charles E. Schumer

United States Senator

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