Southwest Airlines’ chairman Herb Kelleher exits in a plume of smoke, and one last Austin tidbit before the tour finale in San Antonio.

How relevant is Austin’s music scene to its business? In 2004, Motorola divested Austin-based semiconductor subsidiary Freescale, which was acquired in 2006 by a private equity consortium for $17.6 billion.

If I understand the story correctly, then-CEO Michel Mayer (replaced in February 2008) had relocation plans in mind. Learning that Mayer was a Kris Kristofferson fan, though, the city went into full-court press mode on a major free concert featuring Kristofferson, Willie Nelson and other luminaries. Generating all kinds of goodwill, the show proved instrumental in keeping Freescale—incubated and grown in Austin—home.

An hour south lies San Antonio, one of the American West’s oldest cities (1731). Some 26 million visitors came here last year (New York had 46 million) and big business is well-established, including Fortune 500ers AT&T, Valero Energy, Tesoro and Clear Channel Communications.

Healthcare is also a major play. Here’s one to watch: .

Led by CEO Catherine Burzik, the company, with $1.6 billion in 2007 revenue, is a leader in wound therapy treatments. The acquisition of surgical skin company LifeCell could lift 2008 revenue to $1.8 billion; with success abroad ($100 million in Germany last year, for example) Burzik is now setting sights on Japan and other international expansion targets.

And business travelers, know this about my lodging, the historic ca. 1906 Fairmount. The largest structure ever relocated, this Victorian jewel has an unexpected—and delightful—staff member named Luke Tips, Director of Pet Relations. Luke is an 8-year old Labrador—and loves to have guests take him for walks, as I did to finish a long day. Relaxing? Completely.

Jeff Heilman

5/22/08