Charlotte City Council Approves Airline Use and Lease Agreement

CHARLOTTE, NC – Charlotte City Council approved a ten-and-a-half-year agreement between Charlotte Douglas International Airport (CLT) and its signatory airlines — American, Delta, Frontier, Southwest and United — on a new Airline Use and Lease Agreement (AULA) beginning Jan. 1.

The AULA governs the business relationships between the airport and its partner airlines including the assignment of property rights, airport/airline operations, maintenance and repair obligations, and the financial commitments between the parties.

“This agreement reflects a win for the community as it maintains CLT as an economic engine of the Carolinas, generating $40 billion in economic impact and over 184,000 jobs annually,” said Haley Gentry, chief executive officer at CLT. “The AULA is a partnership that helps ensure investments that position CLT for the future.”

The framework of the deal is structured around four key pillars: capital development, enhancing financial position, operational flexibility and asset preservation. Highlights include:

Base term of 10 years and six months, effective Jan. 1, 2027, through June 30, 2037.

Increased number of City-managed gates from 10 to 17, representing a 70% increase since 2016, while establishing higher gate utilization targets to promote the efficient use of airport facilities by all airlines.

$2.1 billion estimated capital development program, CLT Beyond, encompassing nearly a dozen projects spanning the terminal, airfield and airport campus to be funded through a financing mix of airport revenue bonds, passenger facility charges and federal grants.

$3 billion estimated net airline rents, fees and charges payable to the airport over the base term.

Modified revenue share (55% airport – 45% signatory airlines) in exchange for ongoing airline investment in their operations at the airport, as well as enhanced credit protections including increased debt service coverage requirements and extraordinary coverage for CLT.

CLT Beyond Program Highlights:

• Concourse C Expansion: A new concourse with additional gates.
• Passenger Tunnel: A passenger tunnel connecting the main terminal to the expanded Concourse C.
• International Arrivals Renovations: Updates to the areas used by international passengers.
• Airfield Improvements: Updates to the airfield needed to support the opening and operation of the Fourth Parallel Runway.
• Critical Infrastructure Upgrades: Replacement and modernization of essential systems that keep the Airport running, including electrical systems.
• International Concourse Expansion: Planning and design for future expansion of international gate facilities.
• Atrium Expansion: Planning and design for a future expansion of the terminal atrium.

CLT and its airline partners remain committed to fostering a safe, strong and thriving airport environment for employees, passengers and the community. In connection with the proposed AULA, CLT maintains its commitment to ongoing and expanded workforce programs and partnerships, while strengthening the region’s connections to the world.

The current AULA between CLT and the signatory airlines took effect July 1, 2016, and was set to expire June 30, 2026. The parties agreed to extend the agreement to allow additional time to make progress toward a long-term agreement that supports continued growth and success.

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