San Antonio, August 19, 2025
News Summary
Southwest Airlines and the City of San Antonio are set for a federal court hearing concerning gate assignments at the $1.7 billion Terminal C of San Antonio International Airport. The dispute arises from a lawsuit filed by Southwest, which claims the city initially agreed to grant the airline 10 of the 17 new gates. The outcome of the hearing could clarify gate allocations and potentially resolve ongoing litigation related to the airline use and lease agreement.
San Antonio
Southwest Airlines and the City of San Antonio will face a federal court procedural hearing Tuesday over a dispute about gate assignments in the new $1.7 billion Terminal C at San Antonio International Airport. The hearing could produce a declaratory judgment that would resolve the lawsuit and determine which gates Southwest may use. The airline contends the city initially agreed to provide it with 10 of the 17 gates in Terminal C, while city planners currently offer Southwest only six gates in Terminal A.
Key developments and what the court will consider
The case stems from a lawsuit filed by Southwest last year challenging the airport’s recent airline use and lease agreement and the city’s gate allocation decisions. The city tried to dismiss the lawsuit in March, after which Southwest requested that the Federal Aviation Administration review whether the city complied with federal requirements. At Tuesday’s procedural hearing, the judge may issue a declaratory judgment that could end the litigation by clarifying gate assignments and the enforceability of the contested lease agreement.
Why the dispute matters
Terminal C is a major expansion that will add 17 gates to the airport, including six gates designated for widebody aircraft. How those new gates are allocated affects airline operations, passenger routing, and the competitive position of carriers at the airport. Southwest, originally founded in San Antonio in 1967, argues the city misled the court and taxpayers about gate commitments and that the current agreement favors airlines that offer premium or first-class services. City officials say Southwest has no intention of leaving San Antonio despite the dispute.
Background on negotiations and finances
Negotiations have been contentious. The city previously offered Southwest a $100 million upgrade to the existing terminal as an alternative to the Terminal C allocation, but the offer did not end the conflict. Southwest has declined to sign a long-term lease under the terms currently presented and has incurred millions in extra fees while operating without a long-term agreement. The airline seeks to block the recent airline use and lease agreement on the grounds that it violates federal law and restricts gate usage.
Airport capacity and infrastructure context
San Antonio International Airport has three runways and currently averages 260 daily departures across 27 gates. The airport has not seen major updates since the 1980s, and some systems, including electrical and air conditioning, are dated. Terminal A is undergoing renovations as the new Terminal C is built, part of a broader modernization effort to address aging infrastructure and increase passenger capacity.
Operational and legal posture
Southwest has framed its objections as both operational and legal. The carrier asserts that decisions by airport management prioritize airlines that serve business travelers and offer premium cabins, disadvantaging carriers with different business models. City officials maintain that airport planning decisions are made to serve broad community and economic goals and stress that Southwest remains a local employer and stakeholder. The procedural hearing may be limited to legal questions about the lease and federal compliance or could resolve gate allocations if the court issues a declaratory judgment.
What happens next
If the court issues a declaratory judgment, it could define the legal rights of both parties and either confirm or overturn the contested gate assignments. If the judge declines to issue such relief at the procedural hearing, the case could proceed to further litigation or renewed settlement talks. The FAA’s review, requested by Southwest, may also influence any next steps by assessing whether the city’s actions meet federal grant assurances and aviation rules.
Summary of facts
- Dispute in federal court Tuesday over gate allocations in Terminal C.
- Southwest claims an initial promise of 10 of 17 Terminal C gates; city offers six gates in Terminal A.
- Southwest filed suit last year; city sought dismissal in March; FAA involvement requested by Southwest.
- Terminal C will add 17 gates (six for widebody aircraft); airport currently has 27 gates and three runways, averaging 260 daily departures.
- City offered a $100 million upgrade to Southwest; Southwest has not signed a long-term lease and has paid millions in extra fees.
Frequently asked questions
What is the core issue in the Southwest–San Antonio dispute?
The core issue is which gates Southwest will be allowed to use in the new Terminal C and whether the city followed its prior commitments and federal requirements when assigning gates and approving a new airline use and lease agreement.
When will the federal court hear the case?
A procedural hearing is scheduled for Tuesday. The court may choose to issue a declaratory judgment that clarifies gate assignments and potentially ends the lawsuit.
What has Southwest requested from the FAA?
Southwest requested an FAA review to determine whether the city complied with federal requirements and grant assurances when making gate allocation decisions and approving the airline use and lease agreement.
How many gates and runways does San Antonio International Airport have?
The airport has three runways and currently operates 27 gates. The expansion will add 17 gates in Terminal C, including six allocated for widebody aircraft.
Has the city offered any alternatives to Southwest?
The city offered a $100 million upgrade to the existing terminal as an alternative. Negotiations over that offer and gate allocations have been contentious and have not produced a settlement.
Is Southwest leaving San Antonio?
City officials state that Southwest has no intention of leaving San Antonio. The dispute concerns gate assignments and lease terms rather than an announced plan to relocate operations.
Key features at a glance
| Feature | Detail |
|---|---|
| Airport | San Antonio International Airport |
| Runways | 3 |
| Current gates | 27 |
| Terminal C gates | 17 (6 for widebody aircraft) |
| Southwest’s claimed compromise | 10 of 17 Terminal C gates (per Southwest) |
| City’s current offer | 6 gates in Terminal A |
| Expansion cost | $1.7 billion for Terminal C |
| Average daily departures | 260 |
| Last major update | Since the 1980s (infrastructure dated) |
Timeline
| Date / Time | Event | Status / Source |
|---|---|---|
| 1967 | Southwest Airlines founded in San Antonio | Historical fact |
| 1980s | Last significant airport update; infrastructure began aging | Infrastructure context |
| Last year | Southwest filed lawsuit over gate assignments and lease agreement | Lawsuit filed |
| March (this year) | City attempted to dismiss the lawsuit; dismissal motion filed | Motion to dismiss |
| After March | Southwest requested FAA review of city compliance with federal requirements | FAA review requested |
| Ongoing | Terminal C construction and Terminal A renovations | Under construction / Renovation |
| Tuesday (scheduled) | Federal court procedural hearing; potential declaratory judgment | Scheduled court hearing |
Statistics and simple charts
Comparative counts (visualized):
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Additional Resources
- KENS 5
- Wikipedia: Southwest Airlines
- Simple Flying
- Google Search: Southwest Airlines San Antonio
- News 9
- Google Scholar: Southwest Airlines legal dispute
- Express News
- Encyclopedia Britannica: San Antonio International Airport
- KSAT
- Google News: San Antonio airport Southwest dispute
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
