Southwest Airlines seeks FAA intervention over San Antonio airport dispute

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Southwest Airlines seeks FAA intervention over San Antonio airport dispute

Policy

Robert E Jordan CEO of Southwest Airlines | Southwest Airlines Website

By Sky Industry News

Mar 27, 2025

Southwest Airlines has filed a complaint against the City of San Antonio, alleging that the city predetermined the terminal allocation at San Antonio International Airport's new facilities. The airline claims it is being left in Terminal A, which it describes as "functionally obsolete" and "undersized."

In its filing with the Federal Aviation Administration (FAA), Southwest Airlines asserts that despite efforts to negotiate gate allocations at the new terminal in good faith, internal documents reveal that San Antonio's decision was pre-determined. The airline further alleges these documents show the city engineered the process to exclude Southwest from the new facility without addressing deficiencies in Terminal A.

The airline also states that San Antonio argues against allocating space for Southwest at the new terminal due to perceptions about its passengers' profile. The city allegedly views Southwest's passengers as lacking "fit" and "desirability" because they do not use lounges or book premium cabin seats. Despite this, Southwest plans to upgrade cabins across its fleet in 2025.

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According to data from Cirium's Diio Mi airline planning tool, Southwest Airlines held a 36.1% market share in San Antonio in 2024, making it the leading airline there. However, Southwest contends that 37% of its passengers will be left behind in an outdated facility while facing disproportionately high rates used to subsidize the new terminal.

Southwest Airlines outlines four principal violations by San Antonio of its Federal obligations concerning terminal space allocation. These include using a cost-allocation approach combining all terminals into one cost center and classifying Southwest as a non-signatory airline during disputes, both alleged violations of the Anti-Head Tax Act (AHTA). Additionally, they claim insufficient consultation during the Terminal Development Program (TDP) and failure to accommodate growth plans.

Southwest urges immediate FAA intervention: “As is supported by the extensive documentation provided in this complaint, Southwest urges the FAA to take immediate action to hold the City accountable to its Federal obligations.” They argue that failing to act would undermine legal protections for airport users under Federal law and FAA policy.

On December 12, 2023, San Antonio approved constructing a new terminal as part of ELEVATE/SAT—an expansion plan aimed at enhancing airport experiences. With completion expected by mid-2028, this project includes adding 17 gates and expanding lounge spaces significantly.