The Charlotte Douglas International Airport (CLT) has laid the groundwork for CLT Beyond, a $2.1 billion capital development vision for dozens of improvements and sustained agreements with the airport’s signatory carriers.
The Charlotte City Council received a presentation during its Oct. 12 meeting outlining the latest proposed iteration of CLT’s Airline Use and Lease Agreement (AULA) defining its relationship between five core airlines and how they may utilize airport infrastructure. The current AULA was extended by a year after originally being slated for expiration on June 30, affording the airport the time and space needed to craft another lease agreement.
The new AULA would secure a 10.5-year base term lease starting on January 1. This ensures that CLT will continue serving as the hub for major core airline operations and support for the next decade plus. The agreement includes a potential five-year extension stipulated on two conditions:
- An agreement between CLT and airlines to add new or replacement gates at a project value of $500 million or more.
- An agreement between CLT and airlines to extend the agreement on its terms prior to expiration.
Critically, the agreement hinges on the airport’s $2.1 billion investment in capital development. The CLT Beyond plan addresses major projects designed to expand airport infrastructure and improve operations. The vision is ambitious, coming in four times larger than the current capital program authorized through the current AULA.
Key projects featured in CLT Beyond include:
- Expanding Concourse C.
- Building the Central Tunnel.
- Expanding the south ramp.
- Replacing the main switchgear along the east and west portions of the airport.
- Modernizing and enhancing the basement.
- Rehabilitating Runway 18/36 and Taxiway D.
- Renovating the International Arrivals Facility.
- Rehabilitating the CLT Center.
- Upgrading electrical infrastructure.
- Enhancing the international gate security and capacity.
The program includes future project plans that will be carried out in conjunction with airline consultation and approval. These include planning and designing the International Concourse and atrium expansion projects. Additional plans that have yet to be set in stone include expanding Concourse B and the south ramp.
If enacted, the AULA would serve as the lynchpin for enhanced airport financial protections and earnings. CLT estimates that the AULA would generate around $3 billion in net airline rates and charges over the lease’s term, buoying its financial integrity for both the airport and its signatory carriers. Notably, other carriers will have the opportunity to sign and be included in the agreement. The airport currently has 16 carriers in total.
The city council’s next steps will include reviewing the deal and giving their approval. Currently there isn’t a firm timeline for when the city council will give their final vote on the proposed AULA.
Photo courtesy of Charlotte Douglas International Airport
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