Airport Lease Dispute Between Southwest Airlines and City of San Antonio Intensifies
As the battle over the airport lease agreement between Dallas-based Southwest Airlines and the City of San Antonio continues, a new twist has emerged in the ongoing saga. Following a meeting in Dallas on Tuesday between city officials and Southwest executives, the airline issued a stern warning to the city: delay the deadline for the execution of the new airport leasing agreement or face a lawsuit.
City Manager Erik Walsh and Mayor Ron Nirenberg were part of the delegation that sat down with Southwest CEO Bob Jordan, COO Andrew Watterson, and legal counsel to address concerns related to Terminal A and encourage the airline to sign the new agreement. Despite assurances from Nirenberg about the city’s commitment to Southwest’s growth, the airline remained adamant about not signing until they were satisfied with the funding allocated for terminal improvements.
In a surprising turn of events, Southwest acknowledged that they had been misled by city officials and the airport about their role in the future terminal development, putting their commercial growth plans in jeopardy. The airline requested a delay in the execution of the agreement, scheduled for October 1, which the city rejected, offering to restart negotiations with other airlines from scratch.
With the threat of legal action looming, city officials upped the ante by proposing an additional $100 million for Terminal A renovations, bringing the total offer to $300 million. However, Southwest remained firm in their stance, insisting on not signing the agreement until next Tuesday, despite the potential consequences of higher leasing rates.
Despite the standoff, both sides expressed a desire to find a resolution, with Walsh suggesting a follow-up meeting later in the week. While the outcome remains uncertain, one thing is clear: Southwest Airlines has no intention of leaving San Antonio.
Stay tuned to KSAT for more updates on this developing story.
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