AUSTIN, Texas — The Austin City Council approved an $88 million settlement on Thursday that ends two current lawsuits between the City of Austin and Lonestar Airport Holdings, LLC.
The settlement now allows for the Austin-Bergstrom International Airport (AUS) to move forward with its Airport Expansion and Development Program (AEDP).
The expansion program was announced in 2021 as a way to address airline and passenger activity growth. The program would create a new midfield concourse and supporting infrastructure, which includes a new connector tunnel to the main terminal and new taxiways. This would mean the South Terminal facility and 30 other vacant airport-owned buildings would need to be removed.
Later this fall, the South Terminal will be transferred over to the Department of Aviation. Right now, all airline, vendor and business operations will remain under LoneStar Airport Holdings, LLC until the transfer is completed. The terminal will continue to be operational until the required removal, which is expected to happen in 2025.
The airport plans to relocate airline services that work with South Terminal to the Barbara Jordan Terminal and other facilities.
There are already improvements being made at the airport, including the installation of a new checked luggage handling system, TSA checkpoint remodeling and improvements and a 30,000-square-foot concourse expansion.