Posting Language
Title
Authorize negotiation and execution of an amendment to the sublease with Federal Express Corporation to include portions of the Airport cargo apron area for aircraft parking positions and cargo handling area for air freight and mail handling operations at Austin-Bergstrom International Airport, commencing on January 1, 2026. Funding: This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Operating Budget of Austin Aviation.
De
Lead Department
Austin Aviation.
Fiscal Note
This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Austin Aviation Operating Budget. The item consolidates the Federal Express Corporation’s existing contracts related to the lease and use of cargo apron areas and cargo handling areas into the Sublease. Accordingly, Federal Express Corporation’s projected total rental revenue is unchanged.
For More Information:
Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at tracy.thompson@flyaustin.com, 512-530-5023.
Council Committee, Boards and Commission Action:
This item was approved at the Austin Airport Advisory Commission meeting on November 13, 2025, on a 6-0-0-5 vote.
Additional Backup Information:
Austin Aviation seeks to streamline the contracts with cargo carriers related to the lease and use of cargo apron areas, cargo handling areas, and the lease and use cargo buildings by incorporating the cargo apron area and cargo handling area square footage into the cargo building leases. Federal Express Corporation (FedEx) currently has a cargo building lease with the City for a term of occupancy through June 30, 2027. Under this amendment, FedEx will have preferential use of approximately 79,333 square feet of cargo handling space in the cargo handling area and approximately 74,008 square feet of aircraft parking area in the Airport cargo apron area.