SAN ANTONIO — Southwest Airlines is suing the City of San Antonio and its director of airports for not including the airline in San Antonio International Airport’s (SAT) newest planned terminal.

What You Need To Know

  • Southwest Airlines is suing the City of San Antonio over not being included in a new terminal at San Antonio International Airport (SAT)

  • The airline is also suing Director of Airports Jesus Saenz for what it says were false promises about where the airline would reside

  • In its lawsuit, Southwest asks that the court issue a preliminary injunction preventing the city from entering into new leases with the seven airlines that are slated to be in the new terminal

  • Time is of the essence, as the current leases will expire at the end of September and the new ones will take effect on Oct. 1

The city currently has airline use and lease agreements (AULAs) for seven carriers (American, Alaska, Delta, United, Spirit, Viva Aerobus, UPS and FedEx), not including Southwest. That’s because Southwest didn’t agree to the terms of the agreement, as it wants a space in the airport’s new Terminal C.

With a $1.4 billion budget, Terminal C will have 17 gates and be 30% larger than Terminals A and B combined. It’s expected to open in 2028.

Southwest currently resides in Terminal A, which is set to undergo a $200 million makeover, according to a report from the San Antonio Business Journal.

The airline filed suit on Thursday, alleging that the city pulled a bait-and-switch and is treating the airline like a “second class citizen” by not including it in the new terminal.

Southwest is also arguing that the city is violating the Supremacy Clause and the Airline Deregulation Act by barring it from Terminal C.

The airline is suing Director of Airports Jesus Saenz for what it says were false promises about where the airline would reside.

Southwest claims in its lawsuit that since lease negotiations began in 2022, Saenz “verbally committed” that Southwest would have “all or the majority of its 10 gates located in Terminal C.”

“Had Southwest been timely informed that Defendants were not actually planning to offer Terminal C to Southwest, the airline would have adopted a different bargaining position and would not have assumed that it was not remaining in Terminal A,” the lawsuit reads.

In its lawsuit, Southwest asked that the court issue a preliminary injunction preventing the city from entering into new leases with the seven airlines that are slated to be in the new terminal.

City officials — including Saenz, Mayor Ron Nirenburg, City Attorney Andy Segovia and Assistant City Manager Jeff Coyle — traveled to Dallas this week to meet with the Southwest team, including CEO Bob Jordan and COO Andrew Watterson to resolve issues raised by the airline.

At the meeting, city officials offered to increase the renovation budget of Terminal A to $300 million. Southwest declined the offer and reiterated they would not sign the new lease that would begin Oct. 1 and would pursue legal action unless the current AULA was extended.

In a statement to Spectrum News, city officials said the following: "The City believes Southwest’s claims are meritless, and we expressed disappointment that Southwest was considering litigation."

The current AULAs will expire at the end of September and the new ones will take effect on Oct. 1, but city officials said they would not delay executing a new agreement because it would put them "back to square one" with AULA negotiations.

If Southwest doesn't commit to the AULA by Oct. 1, they'll be subject to higher rates as a non-signatory airline.

The city said it plans to: move forward with the AULAs going into effect on Oct. 1, assess needs for Terminal A, continue its Terminal Development Plan and continue discussions with Southwest.

"We remain committed to resolving the issues with Southwest," city officials said in a statement.

City Manager Erik Walsh on Friday provided this statement: "As the fastest growing city in America, we remain committed to doing what is best for San Antonio International Airport and the millions of passengers that use it each year. The airline agreement is the foundation of our Terminal Development Program, and Southwest’s actions could have the effect of halting our progress and keeping the airport the way it is."

In a Sept. 13 statement, District 10 council member Marc K. Whyte expressed concern at Southwest not renewing its lease.

“San Antonio residents rely upon the air travel services Southwest Airlines provides. It is my hope that Southwest Airlines will continue to be a part of telling the San Antonio story well into the future, and am committed to working with other members of our city leadership and the airline to ensure this becomes a reality,” Whyte said.