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.
According to a Wednesday memo sent by City Manager Erik Walsh, he and Mayor Ron Nirenberg were among a city delegation that met Tuesday with Southwest CEO Bob Jordan, COO Andrew Watterson and the airline’s legal counsel.
In the memo, Walsh said 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.
Southwest asked the city to delay the execution of the new agreement, which is set to go into effect on Oct. 1.
Nirenberg and Walsh’s goal was to resolve issues concerning Terminal A and to entice them into signing the new agreement.
In the memo, Walsh said Nirenberg began the meeting by reassuring airline officials that their interests were aligned. Nirenberg also reminded them about the $200 million allocated toward improving their current terminal, which Nirenberg 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 acknowledgment was new since a Southwest Airlines spokesperson previously told KSAT 12 that they were once promised by city officials and the airport that were going to be a part of San Antonio International Airport’s future terminal, adding it put their future commercial growth plans in jeopardy.
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.
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.
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