Southwest Airlines brawling with San Antonio, warns future growth at airport uncertain
Southwest Airlines said it won't sign a lease with the city if it doesn't get 10 gates in planned third terminal.
By Megan Rodriguez,
Staff writer
Updated Sep 12, 2024 1:14 p.m.
Southwest Airlines is refusing to sign a long-term lease agreement with the San Antonio International Airport, throwing the carrier's plans for its operations here into question.
The dispute between the Dallas-based airline and the city centers on the airport's planned third terminal, which is set to open in 2028. Southwest wants to be in the new space, but the city has relegated it to gates in Terminal A.
Southwest, which makes up nearly 40% of the flights into and out of the San Antonio airport, had planned to expand its operations here. But those plans could go out the window if the city refuses to allow the airline to lease 10 gates in the new facility.
"The gate allocation decision forces us to revisit whether or not we can deliver our projected growth in that space," said Sherri Hull, Southwest's director of governmental affairs. "We have a math problem and a space issue."
If the airline doesn't sign a long-term lease agreement, it will have to operate on a month-to-month basis and incur higher fees to fly out of San Antonio.
Terminal A has one of the narrowest concourses among major U.S. airports, resulting in bottlenecks of travelers during peak travel times, and its electrical and HVAC systems are outmoded. The terminal, which opened in 1984, is the airport's oldest.
City Council OK'd an airline operating agreement and a series of terminal leases Thursday morning with little discussion. The current lease agreements expire on Sept. 30.
Most gates at the new terminal are currently slated to go to American Airlines and Delta Air Lines when the facility opens. Airport Director Jesus Saenz said the two airlines have pledged to open large lounges for business-class travelers in the new terminal.
Airport officials said there's no plan to move Southwest to the new terminal, but added they want to work with the airline to revamp Terminal A to meet their needs. That could mean dropping the number of gates in the terminal down from 17 to 10 to give Southwest employees and travelers more room and sprucing up the space with restroom improvements and other upgrades.
The agreement approved Thursday includes $200 million for upgrades to Terminal A and $100 million Terminal B, where United Airlines will operate.
A Southwest spokesperson said the carrier was promised gate space in the new terminal but was abruptly informed this summer that they wouldn't get it after all. Airport officials said every airline was clambering for space in the new facility and that Southwest was not guaranteed spots.
"This is a really good deal for the airlines, and our hope is ultimately that they will continue to be a signatory airline," Assistant City Manager Jeff Coyle said of Southwest. "We absolutely want them to grow and succeed, and I think we've done everything we can to accommodate to this point."
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