Thursday, March 21, 2024
The Houston City Council has passed a motion to allocate $150 million from the Houston Airport System Consolidated 2011 Construction Fund for a Memorandum of Agreement between the City of Houston and United Airlines.
United Airlines has initiated a significant project valued at $2.55 billion aimed at tripling the capacity of the current Terminal B at George Bush Intercontinental Airport (IAH). Originally opened in June 1969, Terminal B stands as one of the airport’s original terminals, yet its infrastructure is deemed inadequate and outdated. The forthcoming Terminal B will expand curbside and roadway capacity threefold, offering modern, clean, and top-tier facilities. The project encompasses the addition of 40 new gates for both domestic and international travel, a revamped processor for ticketing, security, and baggage claim, along with the construction of two new concourses. This endeavor is anticipated to generate over 3,000 new employment opportunities within Houston.
“My administration has been asking questions from day one to ensure this proposal was a good business decision for the City of Houston. I have listened to United, the City’s financial advisors, and the business community. Houston needs first-class facilities as a global city that welcomes millions of travelers to IAH annually. It is important for the airline and the millions of passengers traveling in and out of IAH annually. We will get this airport expansion done the right way,” said Mayor Houston John Whitmire.
The Council’s choice to proceed with this vital infrastructure proposal will carry significant repercussions for both the business and travel sectors, which heavily depend on transportation through IAH. Houston’s airports serve as crucial economic drivers for the entire region.
EXPLORE FURTHER | Evolution of IAH Terminal B
“The transformation of IAH Terminal B not only promises an elevated passenger experience with cutting-edge technology and modern amenities but signifies a strategic investment in Houston’s economic future as we seek to increase the terminal’s capacity for even more passengers from curb to gate,” said Jim Szczesniak, Director of Aviation for Houston Airports. “The economics of this project are excellent for Houstonians: more than a 25% return on a Net Present Value basis. More than a renovation, this project declares our commitment to progress and innovation, solidifying Houston’s position as a global aviation hub while setting a new standard for airport excellence.”
United Airlines anticipates investing over $1.9 billion in the Terminal B Transformation Program, while the City of Houston is poised to allocate $624 million for essential enabling projects associated with the program. The initial disbursement of $150 million, approved by the Council today, marks the commencement of funding for these enabling projects. Houston is confident that the costs incurred for these projects will be fully recuperated over time, post-completion, through rates and charges imposed on airlines and other operators at IAH, as per agreements with the City. The funding from the Houston Airport System enterprise fund aligns with federal regulations, representing a legitimate utilization of airport revenues.
“United Airlines is committed to providing the best travel experience to our customers and that includes investing in the $2.6B redevelopment of our Houston hub. We are thrilled that the Houston City Council voted to approve their portion of this project so that we can deliver numerous benefits to our customers and employees and continue to invest in the city of Houston. We extend our gratitude to Mayor Whitmire, Controller Hollins, and City Council for their support of the project and United’s continued investment in the city of Houston,” said Phil Griffith, Vice President – Houston Hub for United Airlines.
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
Sunday, April 28, 2024
