[texastarkus]

From what I understand, they looked at San Antonio. Austin airport officials lobbied very hard for this and one of the reasons it went to Austin not San Antonio is the state of their airport - I don't want to start anything with anyone.
The scuttlebutt is there are two domestic ultra low fare airlines looking to come into Austin. They're supposed to use the same low cost south terminal. Those in the know have signed an agreement to not disclose the airline(s) until it's a done deal but they're coming. If you think hard enough you'll come up with them.
The idea is to attract travelers who wouldn't normally fly. As for VivaAerobus, there is a large number of legals in this area (and the extended area) who want to fly back and forth to their homes in Mexico. Notice that of the six cities (Cancun, Guadalajara, León, Monterrey, Puebla, and Queretaro) listed only one is a tourist destination.