AUSTIN, Texas — The operator of the Austin airport's South Terminal is now looking at a potential legal battle with an airline.
This week, Allegiant Air filed a 215-page lawsuit against LoneStar Airport Holdings LLC, the company that operates the airport's South Terminal, alleging that LoneStar has been making deals with the City of Austin in secret, affecting the airline's overall operations.
Allegiant Air moved its operations to Austin in 2021 and built infrastructure at the Austin-Bergstrom International Airport to support its move. But the lawsuit claims that LoneStar entered into a secret license agreement with the City of Austin that involved the land Allegiant was using for its new infrastructure.
Allegiant also claims that LoneStar hasn't been transparent with the airline regarding plans to sell the South Terminal to the City. The airline alleges that it was not given copies of transcripts from February hearings in which a panel of three Special Commissioners discussed how much Austin should pay LoneStar for the South Terminal land.
Ultimately, the City has agreed to pay $88 million for the South Terminal. Attorneys for Allegiant Air claim they are not receiving any of that money, despite having infrastructure on the land.
KVUE reached out to LoneStar for comment. A spokesperson sent the following:
"Lonestar Airport Holdings strongly disputes these claims and looks forward to getting them dismissed."
The South Terminal is slated to be closed so the City can work on expanding the airport's main terminal.