DALLAS -- Houston plans to demolish Terminal D at Bush Intercontinental Airport and build a replacement at an estimated cost of $1.5 billion, officials said.
The new terminal is to bear the name of the late Houston congressman Mickey Leland and serve international flights.
Houston Airport System officials presented renderings of the new terminal to the Houston City Council April 24.
Since the existing Terminal D opened in 1990, international traffic has more than tripled, according to the presentation. The lobby is congested, capacity for new arrivals is limited at peak times and the baggage system is outdated and unreliable, officials said.
Sewage lines have also failed several times, flooding airline offices, they said.
HAS plans to sign a memorandum of understanding on the redevelopment with United Airlines, one of the terminal's core customers, within 60 days. Requests for qualifications for the architecture and engineering of the terminal will also go out during that period, along with RFQs for the terminal's program manager, agency construction manager and construction manager at risk.
The new terminal would be 780,000 square feet.
Terminal B, United Airlines' regional jet terminal, is undergoing redevelopment, primarily at the airline's expense. The city's share of the $1 billion Terminal B project is expected to top out at about $288 million, officials said.
While work is underway at Bush Intercontinental, Houston Airport System is also expanding the smaller Hobby Airport, where primary carrier Southwest Airlines is preparing for its first international flights.
Roadway work and modifications parking garage at Hobby began April 28. With completion of the five-gate expansion expected in 2015, the Hobby international addition is expected to cost $150 million, financed by fees added to Southwest tickets.
The Houston Airport System, which issues debt for projects at both airports, carries ratings of A from Standard & Poor's, Aa3 from Moody's Investors Service and A-plus from Fitch Ratings. Fitch has a negative outlook on the debt, while the Standard & Poor's and Moody's outlooks are stable.
