The Austin City Council has approved substantial funding for the Austin-Bergstrom International Airport (ABIA) expansion project, benefiting both the project and its contracted companies.
The Council approved about $1.9 billion in contracts for Austin-Bergstrom International Airport’s expansion at a Sept. 26 meeting. Hensel Phelps Construction received the biggest contract: a $1.03 billion construction deal to build a new concourse and accompanying tunnel.
The new concourse will add 20 gates to the airport, with the possibility of 10 more depending on demand. Hensel Phelps has about 3.7 years to complete construction once the contract takes effect.
Other deals
The other deals include a $45 million design contract with Skidmore Owings and Merrill LLP for a new arrivals and departures hall, as well as an $820 million construction contract for the new hall with Austin Commercial LP, which has about 3.9 years to complete construction.
The “Journey With AUS” expansion, estimated at $4 billion, includes these approved projects, which aim to modernize the airport and increase capacity to meet the region’s growing needs.
The Journey With AUS Vision: This plan aims to meet the current and future needs of our growing region while staying true to its roots. It will elevate the passenger journey by providing an authentic Austin and Central Texas experience.
Funding for Austin-Bergstrom International Airport Expansion Projects
Traditional airport development funding sources will fund these improvements. These include airport cash reserves, current and future airport revenues, future revenue bond proceeds, and Federal Aviation Administration grants. According to the airport and the Authorities, the program will not use any local Austin taxpayer dollars.
An ABIA spokesperson stated that after the City Council approves a contract, further negotiations and signing the deal can take up to 60 days. Construction contracts can start one to two years after architects complete drawings. This means the exact start date for construction of the new buildings remains unclear, but ABIA leaders hope to complete them by 2030.
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The ABIA expansion project contracts approved at the Sept. 26 meeting join several others the council has recently approved to expand ABIA.
Previously Approved Contracts
In August, the council approved about $500 million in other expansion-related contracts. These contracts included work to redesign the airport’s taxiways to accommodate construction of the new concourse, designs for a new tunnel connecting the new and old concourses, and redesign of the baggage system to accommodate future growth at ABIA.
ABIA CEO Ghizlane Badawi said in a statement, “As we continue advancing the transformative expansion program, we remain committed to delivering an exceptional airport.
“The work we are doing to transform our airport doesn’t stop at opening doors for more nonstop flights and an improved customer experience,” said Kirk Watson, Mayor of Austin. “This program will infuse approximately $437 million to small, woman-owned, and minority-owned businesses who will join this journey to modernize the Austin airport.”
Federal Aviation Administration grants, airport revenues, cash reserves, and airport revenue bonds will fund the expansion. The project will not use local taxpayer dollars.
Austin-Bergstrom International Airport Expansion Project Factsheet
Project overview
Total Investment: $4 billion
Major Contracts Approved (Sept. 26, 2024): Total value; $1.9 billion
New concourse and tunnel: $1.03 billion (Hensel Phelps Construction)
New arrivals and departures hall design: $45 million (Skidmore Owings and Merrill LLP)
And a New arrivals and departures hall construction: $820 million (Austin Commercial LP)
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Previously Approved Contracts (August 2024):
Total value: $500 million
Includes: Taxiway redesign, new tunnel design, baggage system redesign
New Concourse Details:
20 new gates (possibility of 10 more based on demand)
Construction time: 3.7 years from contract start
New Arrivals and Departures Hall:
Construction time: 3.9 years from contract start
Ongoing Projects:
West gate expansion: Adding 84,500 square feet by spring 2026
Austin-Bergstrom International Airport Expansionย Project Timeline:
Contract approval to signing: Up to 60 days
Construction start: 1-2 years after architectural drawings completion
Target completion: 2030
Passenger Capacity:
Original design capacity: 11 million passengers annually
2023 actual passengers: Over 22 million
2024 (first 7 months): 12.9 million passengers
Austin-Bergstrom International Airport Expansion Project Goals:
Increase airport capacity
Drive regional economic growth
Improve community connectivity
Enhance overall quality of life
Key Stakeholders:
Austin City Council
ABIA leadership
Contracted construction and design firms
Central Texas community
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