Dallas Fort Worth International Airport has signed a new Use and Lease Agreement with American and other airlines to resume capital and infrastructure support for a sixth terminal.
The tentative agreement would go into effect on October 1, last for approximately 10 years, and authorize the airport to “add or remove leased square footage reflected in an airline’s Leased Premises exhibit” based on three specific circumstances, according to internal documents presented during a May 4 Board Meeting.
The airport can authorize the changes so long as the removal of land is related to or in support of a construction project or relocation at the airport, a new tenant has leased the majority of square footage, or the land adjustment is non-material with respect to the total space leased by all airlines.
Included in the agreement and board-signed resolution is a pre-approved capital program that would ostensibly revive plans for a sixth terminal at the airport. Among the items listed in the capital program are terminal renovations, the addition of new gates, and certain infrastructure projects.
Plans for a sixth terminal were formally announced back in 2019 and had originally called for up to 24 gates, a roughly $3.5 billion budget, and an expected 2025 completion date.
“The new Terminal F and the expansion that could follow will provide the region with the growth it needs to compete with international business centers,” said Sean Donohue, CEO of DFW, at the time. “The Airport is growing faster than ever, and it needs to keep pace with the Dallas-Fort Worth economy to provide jobs and connections for businesses and families.”
However, expansions to the airport were put on hold during the pandemic, ultimately suspending work on the sixth terminal and indefinitely delaying the project until now.
A revised 2023 budget and timeline have not yet been announced for the terminal. Considering the rising cost of building materials, the higher borrowing costs, and tightening economic conditions, it could be some time before construction finally begins.
In 2022, Airports Council International, a trade association representing 1,925 airports, ranked DFW International No.2 among the world’s busiest airports by passenger volume, The Dallas Express previously reported.
Although board members reached a tentative agreement on the new Use and Lease Agreement, a closed-door session was called to discuss the matter further. The airport has not provided any further information on the agreement since the closed-door meeting.
However, a note in the airport’s bond document in August emphasized the airport’s intentions to proceed with the long-term planning of Terminal F.
The airport is “committed to informing our investors of potential capital projects as it would have a material impact on the Airport’s debt outlook,” the airport said in an August statement, as reported by the Dallas Business Journal. “We have not received airline funding approval for Terminal F. We look forward to continuing discussions with the airlines regarding Terminal F.”