AUSTIN, Texas - Today, the Austin City Council approved an $88 million settlement with LoneStar Airport Holdings, LLC, granting Austin-Bergstrom International Airport (AUS) the ability to move forward with the Airport Expansion and Development Program (AEDP).

In 2021, AUS first announced the new expansion program to address the immediate need of more capacity for record-breaking growth and delivering new facilities and modern infrastructure to support the next 50 years’ worth of airline and passenger activity growth.

This settlement process will end the two current lawsuits between the City of Austin and LoneStar Airport Holdings, LLC and, like all components of the Airport Expansion and Development Program, is funded through the airport’s general fund, which receives no local Austin taxpayer dollars. 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.

A critical component of the expansion and development program is a new midfield concourse and supporting infrastructure, such as a new connector tunnel to the main terminal and new taxiways, which requires the removal of the South Terminal facility and 30 other vacant airport-owned buildings. Building removal for the additional 30 structures is currently underway and the acquisition of the leasehold interest in the South Terminal facility is a critical milestone for AUS in moving forward with the midfield concourse project.

All airline, vendor, and business operations from the South Terminal will remain in place as LoneStar Airport Holdings, LLC and the Department of Aviation work together to transfer the management and operations of the facility to the Department of Aviation later this fall. 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 anticipated to occur in 2025.

AUS is committed to providing Ultra Low Cost Carrier airline service for Austinites and Central Texans and will work with the South Terminal airlines to relocate them to the Barbara Jordan Terminal or other facilities. AUS is also committed to ensuring a seamless transition of operations by proactively and regularly communicating changes to airline partners, employees, and travelers.

Since 2021, LoneStar Airport Holdings, LLC and the City of Austin have worked hard to achieve a mutually beneficial outcome that is in the best interest of both parties.  This milestone settlement benefits the traveling public by progressing AUS’s work to deliver new capacity and infrastructure for more passengers, flights and airline activity. AUS appreciates LoneStar Holding’s years of service to the traveling public and looks forward to continuing to provide all AUS travelers with a positive customer experience as the airport transforms from medium-hub to a large-hub airport of national and international prominence.

Near-term airport improvements through the expansion program are currently underway, including the installation of a new checked luggage handling system, TSA checkpoint remodeling and improvements, a 30,000 square ft. concourse expansion and long-term improvements are currently in the pre-design and programming phase. Travelers can stay informed of AEDP progress and changes in the terminal by visiting the Journey With AUS – Airport Expansion and Development Program webpage at AustinTexas.gov/AUSJourney.