Airports in Texas are managed through a combination of local airport authorities, city ownership, and interlocal agreements. Some airports are operated by political subdivisions created specifically to oversee airport facilities. Others, especially major international hubs, are managed directly by cities or through formal agreements between multiple local governments.
Airport authorities are created under Chapter 22 of the Texas Transportation Code. A city or county may establish an authority by ordinance, sometimes requiring voter approval. Once formed, the authority becomes a separate political subdivision with the power to acquire land, operate airports, issue bonds, and enter into contracts. These authorities manage airport operations independently while coordinating with state and federal agencies.
An example of this model is the former Greater Kelly Development Authority, which redeveloped Kelly Air Force Base into Port San Antonio. Regional airports often rely on this type of governance to ensure focused management and economic development. Airport authorities can issue revenue bonds under Tex. Transp. Code sec. 22.079 and are authorized to collect fees, lease property, and expand facilities.
In contrast, major international airports in Texas are usually owned and operated directly by cities or managed under interlocal agreements. Dallas Fort Worth International Airport (DFW) was created through an agreement between the Cities of Dallas and Fort Worth under Chapter 791 of the Texas Government Code (the Interlocal Cooperation Act). Special legislation also supported DFW’s establishment. Similarly, George Bush Intercontinental Airport (IAH) is operated as part of the Houston Airport System, a department of the City of Houston.
In general:
- Regional airports are often managed by independent airport authorities.
- Major international airports are usually city-owned or governed through interlocal agreements.
These different governance structures allow communities to choose the best model for their needs. Smaller cities can benefit from the flexibility of independent authorities, while large metropolitan areas can manage major hubs through direct ownership or cooperation between local governments. Together, these models support Texas’ position as a national and global leader in air transportation.
Governance of Airport Authorities
Airport authorities in Texas are typically governed by a board of directors appointed by the creating city or county. Board members oversee budgeting, planning, leases, and operations, often with executive leadership such as a CEO or director handling day-to-day management. The structure is designed to balance local government oversight with independent operational authority. Meetings, budget approvals, and major contracts are usually subject to open meeting laws and public transparency requirements.
Funding and Financial Independence
Airport authorities finance operations primarily through landing fees, terminal leases, parking revenues, and concession agreements. They may also issue revenue bonds secured by airport-generated income, without relying on local property taxes. In addition, authorities often receive federal grants through the FAA’s Airport Improvement Program and may be eligible for state-level aviation grants. This funding model allows most airport authorities to remain financially self-sufficient and insulated from the general budgets of cities and counties.
