Like a feuding couple, the new United Airlines and Houston are in a rocky relationship. Picking Chicago over Houston for the combined airline's headquarters left a lot of hurt feelings and a loss of jobs here (although United officials say the 17,000 employees in Houston now rival pre-merger levels). Tales of woe about lost baggage and inferior service are common. The general feeling in Houston is things were a lot better when Continental was its own airline.

So when Southwest Airlines asked for city approval to create an international terminal at Hobby Airport, it seemed like a great way to stick it to United. Even United officials concede they are losing the public relations battle in getting their message out. The Houston City Council is expected to make a decision late this month or in early June.

But Gordon Bethune, the legendary executive who ran Continental from 1994 until his retirement in 2004 and who is credited for turning its fortunes around, believes that basing such an important decision on hurt feelings rather than what makes sense for Houston's long-term growth will severely damage the city's status as a transportation center, curtail flights and could eventually relegate Houston to second-tier status in the air wars.

"Why would you want to shoot yourself in the foot because you're pissed off about a lost bag?" he said.

Bethune, Nene Foxhall, United executive vice-president of government and corporate affairs, and lobbyist Bill Miller sat down with CultureMap to give the airline's perspective on the fight. They question Southwest's job estimates and projected air fares, the economic impact of flights to Mexico out of Hobby and the financing of an international terminal.

But the argument they emphasize most vehemently is that splitting Houston into two international airports will give a huge competitive advantage to Dallas and Atlanta, which just opened a $1.4 billion international terminal.

"It's not about United versus Southwest. That's what they're trying to make it," said Bethune, who has always had a reputation for bluntly speaking his mind. "It's Houston versus Dallas and Atlanta."

The case for connectivity

Neither Dallas nor Atlanta has a competing airport offering international service. In fact, the United team points out, Southwest agreed not to offer international service from Love Field in Dallas, thus leaving all international traffic to Dallas-Fort Worth International Airport.

"It's not us and Southwest. We compete against them every day to LA and San Francisco. We do fine," Bethune said. "If we were worried about Southwest for competition, we would have been out of business a long time ago."

United representatives claim that the decreased cost of air fare across the board, perhaps Southwest's biggest selling point in its campaign for international flights out of Hobby, is a myth based on long-ago oil prices.

Bethune believes that splitting the international travel market between two Houston airports will spur air carriers like Qatar Airways, Qantas, Gulf Air and ANA(All Nippon Airways) to bypass Houston in favor of Dallas or Atlanta when looking to expand service and will eventually lead to fewer national and international flight options out of Houston.

"Here's why," he said. "You're going to fly to Houston nonstop — and maybe only 20 percent of the people are going to Houston — so we have a lot of connects because we want San Antonio customers, we want Leon (Mexico) customers, we want San Francisco customers.

"But instead of four flights a day to Acapulco, we go down to two and (Southwest) has two. So the Qatar flight lands just after your flight (to Acapulco) took off and you've got to wait five or six hours. So you don't get on the Qatar flight to Houston, you get on somebody else's flight that has a better connection.

"The multiple cities connectivity of Houston, that's like bait on a hook for a fish. Why would you make yourself two San Antonios out of one Houston? San Antonio, Austin, New Orleans would give anything to have the air service Houston has."

Bethune adds that one of the last things he did before retiring from Continental in 2004 was order the new Boeing 787 Dreamliner. "It's late but it's coming this year. Who's going to get it? You are, right now," he said, pointing out that the plane will fly nonstop to New Zealand, making Houston the only city in the nation to offer such service.

Bethune said that Houston was chosen because the plane "was born here" and because United is run by former Continental CEO Jeff Smisek, who has kept his home in Houston and commutes to Chicago. But the bottom line toward profitability is having connecting flights from other cities to feed into the nonstop flight.

"There's not 15 people in Houston who want to go to Auckland everyday. But those connections and that airplane enables you. Why would you give that up?

"You know what they're going to do in Atlanta if you sign this deal? High five because you have just diluted your attraction to Gulf Air, ANA, Qantas, any of the big guys. (Houston) won't have the allure because it won't have the connectivity."

Dueling international flights

Critics of the United argument point out that Miami and Fort Lauderdale, Oakland and San Francisco, and Newark and JFK have dueling international flights in the same geographic area, but Bethune said the airports are run by competing government entities.

"You think Oakland gives a shit about San Francisco? I think you're turning Houston against ourselves. I'm OK with turning it against Atlanta and anywhere else, but no other city does it this way. And you know why? Because it's stupid."

Why does Bethune feel so strongly about the issue, since he is no longer affiliated with the airline and is a minimal shareholder?

"Sweat equity I'd guess you'd say," he said, noting all the hard work he put into building a first-class airline. "And I hate to see it destroyed by a bunch of guys from Dallas. And a bunch of uninformed people."

Realistically, what will happen in Houston aviation if Dallas-based Southwest gets the go-ahead for international service out of Hobby?

"It's like getting old. You just feel worse every day," said Bethune, who turned 70 last year. "It won't be day or night right away. You just won't grow as fast and you'll start slowing down. And other guys will pick up a little faster. And the next thing, instead of being at the top tier, you'll be in the second tier.

"That might take 10 years, but you certainly won't be competitive with Dallas or Atlanta."

And as for the new United?

"I would have done this (merger) myself," Bethune said. "Houston will so benefit from this United merger. It will just knock the socks off. It's not check; it's checkmate.You've got a worldwide network, one air carrier and the main focus is right here. You've got a lot of agendas between the unions and who's going to represent whom. There's a lot of friction, because we haven't (fully) merged. Things aren't smooth, but that will all settle down.

"A lot of employees feel badly. But I remind them that in 1994 they would rip the damn name tags off because Continental was such a shit place to work. Well, who made it a good place to work? They made it a good place. The answer is this can be the best airline in the world. The same guys who helped me make it are running this one.

"You've got a little stutter step going now because it's a little tough, you've got a different culture, but the people who made Continental a good name are still out here. There's nothing wrong with them just because it says United on the name."

Editor's note: We have contacted Southwest Airlines to present its best case on why it should be allowed to operate international flights out of Hobby Airport. If you have questions for either side of the issue, email them to clifford@culturemap.com