The carrier is suing an airport that was integral to its founding.
A Southwest Boeing 737-700 (Photo: AirlineGeeks | Katie Zera)
Southwest sued the city of San Antonio and its airport director, Jesus Saenz, alleging the carrier was unfairly denied allocation for the airport’s new $1.4 billion terminal.
In its complaint filed in the U.S. District Court for the Western District of Texas last Thursday, Southwest stated that the city was not legally allowed to consider the nature of services and air carrier routes, nor the city’s opinion that Southwest’s “fit” with San Antonio made it less eligible than other airlines for accommodation at the new Terminal C.
The complaint alleged that the defendants preferred airlines that have more or different international routes, premium services, and airline lounges, which factored into their decision to refuse Southwest’s permit to move to the new terminal.
Additionally, the complaint stated that relief is sought in a timely manner because Terminal C is not yet built and available for air service.
“The City is planning to enter into a new airline use and lease agreement (“AULA” or “Lease”) with seven airlines serving SAT effective October 1, 2024, which will create vested legal rights that may significantly complicate the ability of Southwest to move its operations to the new Terminal C,” The complaint stated. “In addition, the City’s publicly-stated intention to exclude Southwest from Terminal C based on its impermissible, subjective assessment that Southwest’s services and/or routes are not as good of a “fit” with San Antonio as other airlines is actively harming Southwest’s brand reputation and goodwill within the community.”
The complaint provided background information on SAT, stating that regular flights began in 1944, and a new terminal (ultimately replaced by what is now Terminal B) was added in 1953.
The existing Terminal A was commissioned in 1984 and has 16 gates. The complaint stated that this terminal is in severe need of reconstruction, and even if the city renovates the facility, it will be more narrow and less functional than the new Terminal C.
Terminal B, meanwhile, was constructed in 2010 to replace the older 1953 terminal. The complaint stated that this terminal is not nearly as modern or useful to airlines as Terminal C will be.
According to SAT’s website, the airport’s new $1.4 billion Terminal C is slated to feature 17 gates when it opens in 2028. It is over 30% larger than Terminals A and B combined.
Negotiations for leasing this new terminal began in mid-2022. The complaint stated that over the course of two years, Airport Director Saenz repeatedly told Southwest that the carrier would have all or the majority of its 10 gates located in the new Terminal C.
Based on these verbal assurances, Southwest chose not to focus on what might happen with Terminal A, or how the city would pay for renovations to that terminal.
“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 complaint stated.
On June 20, 2024, the city of San Antonio provided Southwest and other airlines at SAT with a document titled “Summary of Decision-Making Process for Post-DBO Gate and Club Locations.” This document set forth the criteria for the city to decide where to locate airlines at SAT. The complaint emphasized the following criteria listed in the document:
Citing the above factors, the complaint stated that SAT decided Southwest was not entitled to move to the new Terminal C while other competing airlines were invited to do so. The complaint argues that these factors were non-quantifiable.
In its complaint, Southwest alleges that the defendants’ use of the gate assignment criteria to deny Southwest a lease for gate space at Terminal C violated the Supremacy Clause and the Airline Deregulation Act. It stated that basing the allocation of the terminal gate space on subjective preferences and criteria are prohibited by the Act.
The complaint cites the Airline Deregulation Act, which states the following:
“Except as provided in this subsection, a State, political subdivision of a State, or political authority of at least 2 States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of an air carrier that may provide air transportation under this subpart.” 49 U.S.C. § 41713(b)(1)
Southwest requested that the court issue a temporary restraining order, preliminary injunction, and ultimately issue a permanent injunction against the defendants, prohibiting them from continuing to violate the Supremacy Clause and Airline Deregulation Act.
Speaking to the San Antonio Report, a spokesperson from the airline said the airport’s current terminal layout isn’t sufficient for capacity growth. But, Southwest has no plans to leave the city.
“By no means are we just going to pack up shop,” Southwest spokesperson Chris Perry said. The airport is “very near and dear to the Southwest heart, the Southwest story.”
San Antonio was one of Southwest’s first-ever routes from Dallas when it began flying just over 50 years ago.
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