Construction begins on new terminal at San Antonio International Airport
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A rendering of a welcome plaza in the new terminal. Image: Courtesy of the city of San Antonio
Crews broke ground Tuesday on a long-awaited $1.2 billion terminal at San Antonio International Airport.
Why it matters: Passenger volume at SAT has consistently broken records in the last year, and officials have said the airport needs more space and a better traveler experience to keep pace in a booming region.
- Without upgrades, the airport has slipped in traveler satisfaction as it has grown busier.
Zoom in: The new terminal will include up to 17 gates, for a total of about 40 across the airport, and more than 850,000 square feet of space.
- Updated renderings shared Tuesday show plentiful natural light and plants, including indoor trees.
- It will be able to house up to three wide-body aircraft at a time, as the city seeks to grow international flight options.
- Officials plan to eventually connect all three terminals.
What they're saying: Mayor Ron Nirenberg said Tuesday he's looking to a stronger airport to bring new business expansion and more visitor dollars to San Antonio.
- "If we want to maximize and realize our own potential, it's important that we have an airport to support it," he said.
- "This expansion is long overdue," city manager Erik Walsh said.
The big picture: The new terminal is the centerpiece of a $2.5 billion airport master plan that the City Council signed off on three years ago. It will be the largest capital improvement project the city has undertaken to date.
- While traveling through SAT has often been a quiet and laid-back experience compared to many airports, it's also long been considered underwhelming, with a lack of nonstop flights and dim, narrow terminals.
How it works: The project is funded through a mix of revenue bonds and federal dollars. The city will pay off debt from the project with the money it makes at the airport from concessions, airline rents and other fees.
- The city has received $18 million in federal funding for the new terminal specifically.
- The project is designed to generate revenue for the expansion. That includes more spots to park airplanes overnight, which airlines pay for, and more concession vendors that pay to be there.
State of play: Airport director Jesus Saenz tells Axios the construction is contained to a separate area so that it won't impact passengers.
- "We want to make sure every passenger doesn't even realize that we're building close to a million square feet of new terminal — their bags arrive on time, they're not impacted by traffic," Roman Rios, project manager with contractor Hensel Phelps, said. "Those are big focuses."
Zoom out: While a new terminal is the star, the city has been working toward other airport upgrades.
- The City Council recently approved contracts for new food and beverage offerings (including Southerleigh Fine Food and Brewery, Pharm Table, Freight Fried Chicken and Tre Trattoria) that show off some of San Antonio's top chefs.
- Upgrades to both existing terminals are also in the works.
What we're watching: Whether Southwest Airlines ends up with any space in the new terminal. A new lease agreement keeps the airport's largest airline in the older Terminal A, but Southwest sued the city to stop it.
- A judge declined to prevent that lease from taking effect and told the city and the airline they could keep talking.
- Saenz told reporters Tuesday that officials are working with Southwest.
- "We continue to want to get this resolved."
What's next: The new terminal is expected to open to travelers by 2028.