Terminal “B” is in for a brave move… It was a step up and be counted moment as Continental Airlines and the Houston Airport System (HAS) broke the news about plans for the $1.2 billion renovation project at George Bush Intercontinental Airport’s (IAH) Terminal B during an announcement that generated widespread excitement and media coverage. The announcement comes in the wake of soaring fuel prices, maintenance issues for some carriers, merger talks and a general malaise about the overall U.S. economy. But Houston is bucking the trend, and one of the major economic engines for the City of Houston can be found in the Houston Airport System. It was among the reasons Continental Airlines says it decided the time was right to fortify its position by pumping money and a long-term commitment into its largest hub, IAH. Bill White, Mayor of Houston made the point that the investment will benefit the city’s international reputation, and provide a positive economic impact. “There’s good news for jobs in the economy in Houston. This expansion of Bush Airport and the terminal means that Houstonians will have more options on where to travel, and less crowding at the airport when they do travel. People who come here to visit or do business will have more options and we will have a stronger economy,” he said. The project calls for extending the Automated People Mover (AMP), the above ground train, and for other major work on the decades old terminal. It was one of the two original terminals built for the airport opening in 1969. The renovation will expand the terminal from 360,000 square feet to roughly 1.7 million square feet, which will make it larger than the city’s state of the art baseball stadium, Minute Maid Park.

Elements of the project include the following:

a) North/South Ramp Replacement
b) Terminal B Parking Structure Replacement ( will add public parking)
c) Infrastructure (which includes improvements to existing roadway, signage, utilities and fuel storage systems to accommodate the new facilities)
d) Expansion of the Automated People Mover (APM) to Terminal A.
e) Terminal B South Side Concourse Replacement Facility (including a central elevated passenger hold area.)
f) Terminal B North Side Concourse Replacement Facility (consisting of a three-pier concourse connecting to the northwest concourse of the existing Terminal C designed to accommodate 30-35 aircraft gates.)
g) Central Terminal B Redevelopment (consisting of either the refurbishment or rebuilding of the existing Terminal B and executed in phases to allow for the use of the facility during the renovation period.)
h) Construction of a new Federal Inspections Services facility (for processing of international passengers)

“The time is right for a project like this. Our customer base is growing, the cargo business is steadily improving, we are attracting new carriers and IAH is gaining attention as a global gateway,” says Rick Vacar, director of aviation for the Houston Airport System. “It is important for us to make strategic planning decisions so that we will be able to keep pace with this growth. We want our passengers to have exactly what they need and we want travelers to make this their number one choice of airports.”

The multi-phased construction and renovation is scheduled to be completed during the next seven to 10 years. It will result in improved customer service, amenities and options for travelers, according to Larry Kellner, chairman and chief executive officer for Continental Airlines.

“As you look at the kind of frequency we have to Mexico with Houston sitting really as a great center for North America and Latin America, a great connecting hub, it provides us a tremendous opportunity. As we look to expand Terminal B, this will be a multi-faceted project. It will be a large investment for us, a large investment for the city but we’re extremely excited about where that will take us, where we can go and it’s just another step in our development,” Kellner said.

Financing on the project will come from Airport System Revenue Bonds, Airport System Special Facility Revenue Bonds and a newly created Passenger Facility Charge of $3. That fee would be added to the cost of a passenger airline ticket and assessed only on travelers departing from IAH. The project must still meet with City Council approval.

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