After a lengthy legal battle, a federal judge has ruled that the city of Austin can now take over the South Terminal at Austin Bergstrom International Airport.
The city plans to include the terminal in an expansion project and will pay an $88 million settlement to do so. The settlement, which ended lawsuits between the city and Lonestar Airport Holdings in June, allows for the to move forward with its expansion and development program.
The expansion program was announced in 2021 to address airline and passenger activity growth. It includes a new midfield concourse and supporting infrastructure, with a new connector tunnel to the main terminal and new taxiways, and necessitates removal of the South Terminal facility and 30 other vacant, airport-owned buildings.
The South Terminal will be transferred to the Department of Aviation, while all airline, vendor, and business operations will remain under LoneStar Airport Holdings until the transfer is completed. The terminal will continue to be operational until the required removal, expected to happen in 2025.
The airport plans to relocate airlines that use South Terminal to the Barbara Jordan Terminal and other facilities.
A $164 million expansion of the Barbara Jordan Terminal is already underway, and completed improvements there include the installation of a new checked luggage handling system, TSA checkpoint remodeling and improvements, and a 30,000-square-foot concourse expansion.
