SAN ANTONIO – A new development has arrived in the ongoing airport-lease agreement dispute between Dallas-based Southwest Airlines and the City of San Antonio.
The airline filed a lawsuit Thursday in U.S. District Court against the city and San Antonio International Airport Director of Airports Jesus Saenz.
In the suit, Southwest Airlines alleges, among other claims, that the city used subjective factors when it came to assigning different airlines at SAT’s terminals.
This lawsuit came after a Tuesday meeting in Dallas between a city delegation of City Manager Erik Walsh and Mayor Ron Nirenberg and Southwest CEO Bob Jordan, COO Andrew Watterson, and the airline’s legal counsel.
In a Wednesday memo, Walsh told councilmembers the airline threatened to pursue legal action against the city if they didn’t delay the deadline for the execution of the new airport leasing agreement, which was set to go into effect on Oct. 1, after they met with them to resolve their issues.
However, the city declined and said it would delay the construction of the new terminal and send negotiations between them and other airlines to “square one,” which could essentially give more power to Southwest, according to Walsh.
Walsh said Nirenberg began the meeting by reassuring airline officials that their interests were aligned. He also reminded them about the $200 million allocated toward improving their current terminal, which he said allows them to grow.
While the airline agreed, Southwest Airlines restated that they wouldn’t sign the new agreement until they knew the pre-approved money toward those improvements was “sufficient,” adding they accepted the airport’s decision to keep them inside Terminal A.
This was another new development since a Southwest Airlines spokesperson previously told KSAT 12 that they were once promised by the airport and city that they were going to be a part of San Antonio International Airport’s future terminal and then were told otherwise.
In later discussions, city officials attempted to “sweeten” their offer to the airline by offering an increase of $100 million toward renovating Terminal A, upping the city’s proposed offer to $300 million.
Walsh said the airport would pay half of the funding, and, if approved, a committee formed by the eight other airlines would cover the other half. Airline officials thanked the city for the new proposal but reiterated they wouldn’t sign the new agreement before next Tuesday.
If the airline doesn’t sign, the City of San Antonio said Southwest would have to pay higher leasing rates than the other airlines.
Despite a lack of agreement, the airline has no intention of leaving San Antonio, according to Walsh.
Walsh suggested that both sides meet again on Friday or next Monday.
Chris Perry, Southwest spokesperson, issued the following statement:
“Southwest Airlines values its relationship with San Antonio and remains hopeful that the airline and the City can agree on a plan that accommodates our future growth and treats us equal to the other carriers. We took this action to preserve our legal rights prior to the new lease agreement taking effect on Tuesday, Oct. 1. We are encouraged by recent conversations with City leaders and look forward to reaching an expeditious and realistic solution.”
Walsh issued the following statement Friday afternoon:
“As the fastest growing city in America, we remain committed to doing what is best for San Antonio International Airport and the millions of passengers that use it each year.
“The airline agreement is the foundation of our Terminal Development Program, and Southwest’s actions could have the effect of halting our progress and keeping the airport the way it is.
“We have signed agreements and/or letters of commitment from eight other airlines representing 65 percent of SAT’s passengers.
- American
- Alaska
- Delta
- Spirit
- United
- Viva Aerobus
- FedEx
- UPS
“SAT has added six new nonstops this year and set records for passenger growth for 16 months straight.”
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