Houston Airports provides update on new international terminal at Bush Airport, including need for additional funding to offset inflation costs, further enhance passenger experience

The Houston City Council Economic Development Committee learned Houston Airports continues to make significant progress and prioritize the passenger experience amid continued global supply chain challenges.

September 28, 2022
Rendering of new international terminal at Bush Airport

 

The Houston City Council Economic Development Committee received a scheduled update on the IAH Terminal Redevelopment Program, ITRP. Once substantially completed in late 2024, the new international terminal at George Bush Intercontinental Airport will be one of the newest and most modern in the United States, enhancing the airport’s world-class passenger experience for millions of travelers.   

During a meeting this month, the six-person committee received a positive progress report from Houston Airports Director Mario Diaz and Principal Executive Program Manager Steven Andersen.  

“We’ve made significant progress in moving this project forward,” said Diaz of ITRP, the largest capital improvement program in the history of Bush Airport.   

Once completed, the innovative design and updated infrastructure will make the entire international passenger experience convenient, intuitive, simple and functional from curb to gate.   

Andersen provided an update on the ITRP budget ($1.36 billion) which includes the opportunity to efficiently deliver new scope ($30.1 million, 2.3%), an update on the investment of additional traffic mitigations ($11.1 million, 0.9%) to support the increased demand and faster than planned recovery from COVID, and the market inflation impacts ($22.7 million, 1.7%) impacting construction projects around the nation as a result of the socioeconomic and geopolitical factors, including the war in Ukraine and the price for crude oil, and unprecedented air travel challenges sparked by the COVID-19 pandemic.  

The overall increase for these three areas is less than 6%.  

The program has already absorbed $6 million in rising prices within its current budget. Innovative strategies are also helping to combat inflation. Cost-saving solutions like the advanced purchase of materials, storing large quantities of materials delivered earlier than needed and avoiding highly volatile materials, like stainless steel, are helping to control ITRP’s budget.  

Houston Airports continues to prioritize the passenger experience during construction, which is happening in a live operational environment. In June, additional lanes reopened on South Terminal Road and the length of the international arrivals curb was extended. Houston police continue to direct motorists and reduce curb traffic during peak hours. Additional funding would allow for the design and installation of dynamic, digital signage along airport roads and it would allow for an increased modeling ability of traffic during construction.   
   
The additional funding also allows for the renovation of existing restrooms in Terminal D, the development of a new and exciting open concept concessions program, improved flood and drainage upgrades, and the expansion of the airline ticketing office spaces to meet growing demand.   

The Economic Development Committee was also briefed on the upcoming council actions to complete the majority of the ITRP appropriations. While approval from City Council is required for the funding, the funding does not come from local tax dollars. Houston Airports is a self-funded enterprise. Diaz later confirmed the primary funding sources will be Debt, Passenger Facility Charges, the Airport Improvement Fund and grants.  

“We do not depend on tax dollars,” Diaz said.   

 

ABOUT THE NEW INTERNATIONAL TERMINAL AT IAH | The construction of the international terminal at Bush Airport, formally known as the IAH Terminal Redevelopment Program, ITRP, started in 2015 with a series of enabling projects. It advanced significantly in 2020 with the closing of the Terminal D/E parking garage for demolition in order to make room for the expansion of the Mickey Leland International Terminal (MLIT) with a new International Central Processor. Once complete, the International Central Processor will house ticketing counters, baggage claims and a 17-lane security checkpoint that will be one of the largest in the country. Attached to MLIT will be a new concourse and a fully renovated Terminal D, with updated facilities where travelers can board their planes, relax in the many lounges, or explore dining vendors. ITRP also includes the building of a new D West Concourse space that houses 10 new narrow-body gates. It will also accommodate up to 6 wide-body aircraft simultaneously. Due to be substantially completed in late 2024, ITRP will accommodate international airline growth, resolve current and future roadway and curbside capacity constraints and vastly improve the baggage handling system.  

ABOUT HOUSTON AIRPORTS |  Houston Airports is the City of Houston’s Department of Aviation. Comprised of George Bush Intercontinental Airport, IAH, William P. Hobby Airport, HOU, and Ellington Airport/Houston Spaceport, EFD, Houston Airports served 45 million passengers in 2021 and nearly 60 million in 2019. Houston Airports forms one of North America’s largest public airport systems and positions Houston as the international passenger and cargo gateway to the South-Central United States and as a primary gateway to Latin America. Houston’s Hobby Airport is the first and only 5-star airport in North America and Bush Airport maintained an exceptional 4-star rating for a fifth consecutive year.  

Houston Airports | Public Information Office  
Phone: 281.233.1234  
Email: HAS.PIO@HoustonTX.gov   

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