The city has reached an agreement to settle two lawsuits brought over the South Terminal of the Austin-Bergstrom International Airport. The Austin City Council approved an $88 million settlement with LoneStar Airport Holdings on May 31. The agreement will enable the airport to move ahead with a planned expansion, according to a statement released Wednesday.
The city has been embroiled in the suits with LoneStar Airport Holdings since 2021, when it announced the expansion plans, deemed necessary and urgent due to record-breaking traffic in the face of inadequate infrastructure at the airport.
This settlement will be funded through the airport’s general fund, which receives no local Austin taxpayer dollars, the statement reads, nothing that "the airport’s general fund is made up of airport revenue, airport revenue bonds, and federal grants and is separate from the city of Austin general fund," as is the airport expansion and development program.
The removal of the South Terminal, along with30 vacant, airport-owned buildings, is required as part of the expansion and development program, which includes is a new midfield concourse and supporting infrastructure including as a new connector tunnel to the main terminal and new taxiway, according to the city.
South Terminal operations will remain in place while LoneStar Airport Holdings while the Department of Aviation work to transfer management and operations of the facility to the Department of Aviation in fall 2023. The facility will remain operational under the Department of Aviation until the required removal to support new airfield infrastructure for the midfield concourse, which is planned for 2025.
Expansion-related airport improvements currently in predesign and programming phases include the installation of a new checked luggage handling system, TSA checkpoint remodeling and improvements, and a 30,000-square-foot concourse expansion, as well as more long-term improvements.
