This story has been updated.
Plans to upgrade the San Antonio International Airport taxied closer to reality on Thursday.
City Council passed several ordinances authorizing airport officials to move forward on plans outlined in the $2.5 billion airport strategic development plan.
Improved runways, roadways, parking and the construction of new airport facilities are among the items that will be addressed by the ordinances.
First up among the major improvements at SAT is a new ground load facility. Council members gave the OK for design and construction of a facility at the south end of Terminal A.
Ground load facilities are commonly used at smaller airports and by low-cost carriers to efficiently move people on and off airplanes more quickly and inexpensively, thus reducing airfares.
“This is a greatly needed step in our expansion,” stated Jesus Saenz, director of airports, San Antonio Airport System. “It will bring more flight options for domestic and international travel as we continue to see a high demand for that.”
The ordinance approved by council allows Colorado-based Hensel Phelps Construction Co. to design and build the facility and also relocate an existing gate in the terminal and create additional overnight parking for aircraft.
Hensel Phelps has completed projects at airports in Tampa, Nashville, San Francisco, and San Jose.
The total cost of the SAT ground load facility project is $61.7 million. Another $10 million is budgeted for contingency work on the project related to material testing and environmental mediation.
Funds for the new facility will come from a $20 million grant awarded to the airport under the bipartisan infrastructure law airport terminals program; $31 million from passenger facility charge revenues; $15 million in financing, and $1.7 million from the airport improvement and contingency fund.
Construction is scheduled to start next year and is expected to be completed in 2025.
The council also approved a two-year funding agreement and authorized payment of $21.4 million to the San Antonio Airline Consortium to modernize the outbound baggage handling system in Terminals A and B.
The project will replace the existing communication systems with new components using a modern, Ethernet/IP architecture, according to notes in the council agenda.
The project will update a system that operates 24 hours a day, seven days a week and is set to be completed in November 2025.
Incentive program
Another airport item on the council agenda involved a program that airport officials use to attract airlines to San Antonio and encourage them to offer more service.
The air service incentive program provides carriers thousands of dollars worth of marketing incentives and fee waivers in exchange for nonstop service to certain target markets for 12 to 24 consecutive months, or seasonal service for three months.
The COVID-19 pandemic forced officials to increase incentive amounts in the program in order to compete for air service, said Brian Pratte, chief air service and marketing officer for the San Antonio Airport System.
“Basically every airport has had to reimagine how to do things,” he said. “Capacity is hard to come by … [and] we’re all competing for those assets.”
Incentives have made a difference for airports that are doing well, he added.
The program, funded with nearly $1 million this year through the airport operating and maintenance line item, will be revised to give airlines even more reasons to add service.
The program goes from 50% to 100% in waived landing and inspection fees during the second year of service for unserved international routes. It also increases the eligibility period for the second year to 100%.
“All we’re trying to do is help mitigate the risk to the airline because they’re making a multimillion dollar decision when they decide to come to San Antonio and sometimes there’s a lead-up, just like any business, for those first 6, to 8, to 12 months,” Pratte said.
In addition, two new destination categories are eligible for incentives: air service to Europe, South America, Asia, Middle East; and air service to Africa, and North America, Central America and the Caribbean (including Puerto Rico and the United States Virgin Islands).
A new international air carrier offering at least 104 departures for each scheduled route could also receive incentives.
New terminal
Meanwhile, the much-anticipated project to build a new terminal with up to 17 gates is getting off the ground.
On May 11, Saenz told council members during a special meeting that airport officials plan to release a solicitation for bids on June 5 for a construction manager to build the new concourse.
The job involves building the terminal and a new federal inspection service and customs area to support international air service, and the associated apron work for aircraft and a new aircraft parking area.
Also included in the scope of work is an expansion of the roadway lanes in front of the terminal and additional weave lanes for motorists and the construction of a new ground transportation center with public parking.
The selected contractor will work with the master architect and city to complete the design, previewed in February, and construct the new terminal facility.
The contract value is estimated at $700 million to $1 billion, and will be funded through federal grants, interim airport financing, aviation capital funds and passenger facility charges.
The new terminal is scheduled for completion in March 2028.
Across the nation, airports are injecting billions of dollars in improvements, thanks in part to funding from the bipartisan infrastructure law.
In February, Austin-Bergstrom International Airport officials announced plans to expand its West Gate, adding a new lounge, office space, outdoor patio and concessions for the terminal. The project will result in three new gates.
Last summer, DFW International Airport added four new gates as part of a $2 billion expansion to Terminal C, and officials there recently announced $4.8 billion more in expansions, including $1.6 billion for an F terminal with 15 new gates.
Correction: This story has been updated to correctly state when construction will be completed on the ground load facility.
