Southwest calls on FAA to strip San Antonio of grants in airport terminal fight

Southwest Airlines is calling on the Federal Aviation Administration to scrutinize San Antonio airport’s handling of gate assignments and yank millions in government grants if city officials don’t rectify alleged violations of federal law.

Southwest’s complaint to the FAA, filed Thursday, is a new front in the war between the city and the Dallas-based airline over a Terminal C, a $1.7 billion colossus at San Antonio International Airport — it’ll be larger than the two existing terminals combined — that is slated to open in 2028.

Southwest Airlines has escalated its dispute with the City of San Antonio by filing a formal complaint with the Federal Aviation Administration (FAA), urging the agency to investigate the city’s management of gate assignments at San Antonio International Airport (SAT) and to consider revoking federal grants if violations are found.

Background of the Dispute

The contention centers around the allocation of gates in the forthcoming $1.7 billion Terminal C at SAT, scheduled to open in 2028. Southwest alleges that city officials had assured the airline of gate allocations in the new terminal but later reneged on this promise, confining Southwest to the older Terminal A. The airline argues that Terminal A is outdated and inadequate for its operations, leading to operational inefficiencies and increased costs.

Since the new lease agreements were established, Southwest has refused to sign, resulting in the airline paying higher monthly fees. The city maintains that its gate assignment process was fair and aimed at managing passenger flow effectively.

Southwest’s Allegations

In its complaint, Southwest accuses the City of San Antonio of:

Unjust Discrimination: Using impermissible criteria to exclude Southwest from Terminal C, favoring airlines that offer first-class services and club lounges, which Southwest does not provide.

Failure to Consult: Neglecting to engage in reasonable consultations with Southwest during the Terminal Development Program, violating federal grant assurances.

Inadequate Facilities: Intending to leave Southwest in Terminal A, which the airline describes as “functionally obsolete” and previously assessed by the city as headed for demolition.

City’s Response

The City of San Antonio disputes Southwest’s claims, asserting that the gate assignment process was conducted fairly and transparently. City officials argue that decisions were based on objective criteria aimed at optimizing passenger flow and overall airport operations. They also contend that Southwest’s refusal to sign the new lease agreements has led to the higher fees the airline is currently experiencing.

FAA’s Role and Potential Impact

The FAA has the authority to investigate such disputes and enforce compliance with federal regulations. If the FAA finds that the City of San Antonio violated federal grant assurances, it could lead to the withdrawal of federal grants allocated for airport development projects. This action could significantly impact the funding and timeline of Terminal C’s construction and other planned improvements at SAT.

Ongoing Legal Proceedings

In addition to the FAA complaint, Southwest has filed a lawsuit seeking more negotiation and damages. A federal court hearing is scheduled for April, where both parties will present their arguments. The outcome of this hearing could influence the FAA’s investigation and any subsequent actions regarding federal funding.

Implications for Passengers and the Airline Industry

This dispute highlights the complexities of airport terminal allocations and their impact on airline operations. For passengers, the outcome could affect flight availability, ticket prices, and overall travel experience at SAT. For the airline industry, the case underscores the importance of transparent and equitable gate assignment processes, especially as airports undergo expansions and renovations.

The conflict between Southwest Airlines and the City of San Antonio over gate assignments at SAT’s new Terminal C has escalated to federal involvement, with potential implications for airport funding, airline operations, and passenger experience. As the situation unfolds, stakeholders await the FAA’s investigation results and the upcoming court proceedings to determine the future landscape of SAT’s terminal allocations.