As part of this transition, officials will consider taking over a contract implemented by LoneStar Airport Holdings—the company operating the terminal—to continue daily management of the terminal's operations for two years ahead of its demolition.
The gist
During an Oct. 11 meeting, the Airport Advisory Commission recommended Austin City Council approve a contract for “facility management and labor services” with management company ClearedDirect, which will begin Nov. 1 and expire on Dec. 31, 2025. Commission chair Wendy Price Todd abstained from the vote.
The item will be taken up by City Council on Oct. 19. If approved, ClearedDirect will continue handling daily operations of the terminal, such as maintenance, security and janitorial. If council does not approve the contract, facility management in the terminal will end, potentially impacting airline operations and passenger services.
ClearedDirect has provided the South Terminal with facility management and labor services for five years and was hired by LoneStar.
The two-year contract will cost the city $9 million, which will be paid for by revenue generated by the terminal, which includes parking, concessions and airline revenues, a spokesperson for ABIA said.
The background
The city settled two lawsuits with LoneStar—ending the remainder of the company's original 40-year lease that began in 2016—to acquire the terminal for future demolition that will make way for the airport’s expansion.
As part of the expansion, ABIA officials seek to have a new space constructed where travelers will pass through the airport, which would include a new tunnel connecting to the main terminal and new taxiways. This requires the removal of the South Terminal.
What’s next
The South Terminal is estimated to be demolished in early 2026. Although LoneStar’s management of the terminal expires Nov. 1, the terminal will continue to be operated by city officials until it is taken down.
Austin City Council meets Oct. 19 for a regular meeting. For more information, visit www.austintexas.gov.
