WASHINGTON — The Metropolitan Washington Airports Authority (MWAA) board approved on Wednesday a 15-year contract that includes $9 billion for projects at Dulles and Reagan National.
The new contract, taking effect on Jan. 1, 2025, must be signed by the airlines representing a majority of both airports’ flights. It will replace a similar agreement that expires at the end of the year and provides financial and operational flexibility to manage the two-airport system as a unit. It also supports appropriate debt service coverage, sufficient financial support for major construction projects, new air service and competition, and assigns operational responsibilities to the airports and airlines.
“We were fortunate that the current Use and Lease Agreement was expiring this year, as we are experiencing record total passengers at Reagan National and record international passengers at Dulles,” Airports Authority CEO Jack Potter said. The infusion of capital dollars for infrastructure investment included in the new agreement will enable us to build facilities to meet current needs and gear up for the expected passenger growth at both airports.”
Some of the highlights of the new agreement include:
Sustained capability to cover all significant expenses related to airport operations.
Investment of $6.99 billion in capital construction for Dulles International Airport, encompassing a new 14-gate concourse, planning for a fifth runway, and future developments to handle increased air travel demand.
Allocation of $2.39 billion for capital construction at Reagan National Airport, involving enhancements such as additional restroom facilities and passenger amenities, and eventual renewal of Terminal 1's main concourse.
Maintenance of airline-funded debt service coverage to meet or exceed a 140% target ratio.
According to MWAA, the agreement seeks to provide expansions and improvements of the airfield, terminals, concourses, baggage equipment, roadways, and other infrastructure at the region’s main two airports, which will be necessary in the future to accommodate the projected growth in flights at Dulles International and the increase in passengers at both airports.
For more information about what's happening at MWAA, visit the website.
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