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Austin airport South Terminal owners reject $1.95 million offer to buy and demolish

(South Terminal/Instagram)

Austin-Bergstrom International Airport is moving forward with the demolition of the South Terminal but disputes over the ownership may slow the process.

A letter obtained by KVUE revealed the terminal’s current operator, Lonestar Airport Holdings, rejected a $1.95 million offer from the City of Austin to take over the space on Wednesday.

Lonestar called the offer “offensive” and disregards investments into the terminal. The city offered to pay $10 million for the terminal in 2019.

ABIA CEO Jacqueline Yaft said the South Terminal needs to be demolished to make room for a new taxiway by July 2023.

Lonestar has a 40-year public-private partnership lease agreement with the city that went into effect in 2016. According to the letter, Lonestar submitted $140 million, which it would fund itself, plan to create a new low-cost terminal in 2019 that the City denied.

Lonestar’s lawyer said the company still wishes to work with the city.


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