The airline is looking to secure gates in San Antonio International Airport’s new Terminal C.
[ Airports ]August 20, 2025 5:30 am ET
By Zach Vasile
Key Takeaways:
- Southwest Airlines sued San Antonio over gate allocation at the new Terminal C, claiming a verbal agreement for 10 gates was broken.
- The city denies the agreement and says its allocation was based on other airlines’ needs and projected growth, citing space limitations and potential strain on baggage/security systems.
- Southwest argues the city’s allocation system is flawed and violates federal law, harming its operations and reputation.
- The two parties met in court to attempt to settle the dispute, with a potential settlement possible.
Southwest and officials with the city of San Antonio, Texas, met in federal court on Tuesday in an attempt to settle a dispute over gate allocations at San Antonio International Airport.
Southwest sued the city in 2024 after it allegedly reneged on an agreement to give the airline 10 of the 17 gates in the airport’s new, $1.7 billion Terminal C, expected to be completed in or around 2028. The city wants to keep Southwest in a refurbished Terminal A, where it currently operates, but the carrier has complained that the building is too small and inferior in quality.
KENS-TV reported that the two sides were meeting at the federal courthouse in San Antonio to work out a solution and could reach a settlement by Tuesday afternoon, though as of press time no deal had been announced.
Southwest alleges that San Antonio’s director of airports, Jesus Saenz, verbally promised the airline gates in Terminal C, even though airport officials had no intention of giving Southwest space in the new facility.
The carrier is intent on securing gates in Terminal C because it will offer a more modern, spacious concourse for passengers and larger holdrooms. The airport also plans to concentrate its international flights at Terminal C, which Southwest is hoping to add more of as it looks to compete with United, Delta, and American Airlines.
Question of ‘Fit’
City officials have denied Southwest’s claims and maintain their decision was based on the needs and requests of the airlines that serve San Antonio, as well as their projected growth and “fit” with the market.
Delta, American, and United requested space for airline clubs, the city said, and the footprint of Delta and American’s clubs meant they had to be located in Terminal C. Those allocations reduced room for other carriers, and the airport determined that adding Southwest to Terminal C would overwhelm the facility’s baggage system and security checkpoints.
Southwest does not have lounges and did not request space for one in San Antonio.
Southwest has claimed that the airport’s gate allocation system is flawed and violates a federal law concerning airline regulation. It also argues that it will suffer harm to its operations and reputation, and that San Antonio officials knew this when they devised their allocation plan.
“The City was well aware that requiring Southwest to remain in Terminal A would present significant obstacles to Southwest but brushed aside these concerns, stating that the airport ‘could partner with [Southwest] to make the most of the airline’s substantial and focused use of Terminal A,’” the airline’s lawsuit states. “This was further evidence that the City recognized that it was treating Southwest as a second-class citizen at SAT.”
Southwest declined to re-sign its lease with San Antonio International Airport as a result of the dispute and is paying extra to continue operating there.
The city has clarified that Southwest has no plans to leave San Antonio.
Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
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