### Southwest Airlines Files Lawsuit Against San Antonio Over Airport Lease Dispute

San Antonio, TX - A significant legal battle has erupted between Southwest Airlines and the City of San Antonio regarding a contentious airport lease agreement. On Thursday, Southwest Airlines filed a lawsuit in U.S. District Court, targeting both the city and Jesus Saenz, the San Antonio International Airport Director of Airports. The airline contends that the city engaged in an "unlawful" negotiation process and used subjective factors when assigning different airlines to terminals at San Antonio International Airport (SAT).

The lawsuit follows a meeting on Tuesday in Dallas, where a delegation from the city, including City Manager Erik Walsh and Mayor Ron Nirenberg, met with Southwest's CEO Bob Jordan, COO Andrew Watterson, and the airline's legal counsel. According to a memo from Walsh, the city faced an ultimatum: delay the new airport leasing agreement deadline set for October 1 or face legal action.

Walsh explained that adhering to the airline's demands would delay the construction of the new terminal and potentially restart negotiations with other airlines, which could disproportionately benefit Southwest. In the meeting, Mayor Nirenberg emphasized that the city and the airline had aligned interests and pointed to the $200 million allocated for upgrading Southwest's current terminal as proof of the city's commitment to their growth.

Southwest responded by asserting they would not sign the new agreement until they were confident that the allocated funds for improvements were adequate. Previously, the airline claimed it had been promised a place in SAT's future terminal, only to later be excluded. In an attempt to break the deadlock, the city recently offered to increase the renovation funds for Terminal A to $300 million. The proposed arrangement would have the airport cover half of the costs with a committee formed by the eight other airlines covering the remainder.

Despite the generous offer, Southwest reiterated they wouldn't sign the agreement before the upcoming Tuesday deadline. Walsh noted that failing to reach an agreement would result in Southwest facing higher leasing rates compared to other airlines. Despite the ongoing disputes, he assured that Southwest had no plans to leave San Antonio.

In response to the impasse, Walsh proposed another meeting either on Friday or the following Monday. Chris Perry, a spokesperson for Southwest, expressed hope for a mutually agreeable resolution, emphasizing the airline's commitment to its relationship with San Antonio.

"As the fastest growing city in America, we remain committed to doing what is best for San Antonio International Airport and the millions of passengers that use it each year," Walsh stated. He underscored the importance of the airline agreement to the city's Terminal Development Program, warning that Southwest's legal actions could disrupt their progress.

Walsh revealed that eight other airlines, representing 65 percent of SAT's passengers, have already signed agreements or letters of commitment with the city.