Dive Brief:
- United Airlines is expanding its foothold in Houston with a $2.6 billion renovation and expansion project at George Bush Intercontinental Airport’s Terminal B, according to a Nov. 30 news release.
- United Airlines expects to incur more than $1.5 billion in costs on phase three of the redevelopment, with Houston committing to allocate $624 million in three tranches, per United’s proposal to the city council.
- City Controller Chris Brown’s office says it is still reviewing the agreement to provide the first $150 million and that it has concerns about the agreement’s potential impact on the city’s long-term finances, Houston Public Media reported. A United spokesperson attributed the holdup to “city issues” and “a misunderstanding.”
Dive Insight:
The project, which is in its third phase, includes a three-level, 765,000-square-foot North Concourse featuring 22 mainline, narrow-body gates. The airline will also convert 30 existing small regional jet gates to 18 gates in the South Concourse to accommodate larger two-class regional jets. Together, the 40-gate expansion aims to boost the airline’s passenger capacity 40% during peak travel dates by 2026, United said.
The first two phases of Terminal B’s redevelopment have been completed, United said in a proposal it submitted to the Houston City Council in October. The proposal was seeking $150 million from the city for the third phase, which involves relocating impacted tenants, improving portions of the airfield and roadways, adding additional aircraft parking areas and creating an 8,000-space remote employee parking lot to free up space for airline passengers in the terminal garages. The airline is also committing to remodel restrooms in all of its leased terminals, according to another letter it submitted to the city council on Nov. 9.
Although the project has garnered support from Houston Mayor Sylvester Turner, and the approval of the $150 million was scheduled for discussion on the city council’s meeting agenda in mid-November, city council members have been unable to vote on the proposed funding as Brown has yet to sign off on it.
“The controller has extra questions, which are being resolved, as he talks to his own peers” and other local government officials, a United Airlines spokesperson told Facilities Dive. “We have Mayor Turner and [Houston Airport System Executive Director] Mario Diaz on our side, and they’re scratching their heads as well,” the spokesperson said.
“We are eager for the Houston City Council to approve their portion of this project,” United said in an email statement to Facilities Dive, with the Terminal B project pending that final approval.
Representatives for Brown and Turner did not respond to emails and calls seeking comment.
The redevelopment project is slated to wrap up in 2026 and expected to generate an additional 4,000 construction and remodeling jobs, including those that involve wall panel installations and carpet replacements, United Airlines told Facilities Dive.
