Austin settles for $88M to expand airport with South Terminal acquisition.

The City of Austin will pay $88 million to Lonestar Airport Holdings to settle a legal dispute over the demolition of the South Terminal at Austin-Bergstrom International Airport. The move will pave the way for the construction of a new concourse capable of accommodating 10 to 40 gates. The South Terminal is a stand-alone facility with its own entrance and parking lot, separate from the main Barbara Jordan Terminal, and is used by discount airlines Allegiant and Frontier. As part of the deal, Austin will take over operation and management of the South Terminal this fall.