Birmingham, AL, August 15, 2025
News Summary
Birmingham has secured a 25-year lease extension with the Birmingham Airport Authority, shifting the expiration to 2070. This pivotal move will allow for significant investments from major aviation companies, totaling $72 million, to enhance airport operations and economic development in the region. Atlantic Aviation and Million Air are leading the charge with plans for new hangars and upgraded facilities, promising to boost Birmingham’s aviation landscape and local economy.
Birmingham Secures Airport Lease Extension for Thriving Aviation Sector
Birmingham has made a significant move to enhance its airport operations and boost the local economy by extending its lease with the Birmingham Airport Authority by 25 years. This bold decision shifts the lease expiration date from 2045 to 2070, setting the stage for exciting new investments aimed at propelling the airport’s growth.
With this extended lease, the Birmingham Airport Authority is now in a prime position to secure substantial contracts worth $72 million from major aviation companies. Among the upcoming investments, Atlantic Aviation and Million Air have committed to investing $40 million and $32 million respectively, each bringing a vision to life that promises to elevate Birmingham’s aviation landscape.
Exciting Developments on the Horizon
The plans from Atlantic Aviation include the construction of new hangars while demolishing older facilities that have seen better days. Their redevelopment project is not just about aesthetics; it aims to enhance operational capabilities and improve services. With the lease extension, these companies can now obtain 30-year term loans to finance these essential construction projects.
The CEO of Birmingham Airport Authority highlighted that this growth signifies the airport is on the rise, not just in terms of infrastructure but also in enhancing the *community’s vitality* and *vision*. Birmingham owns the 400 acres of land on which the Birmingham-Shuttlesworth International Airport is situated and leases it to the Birmingham Airport Authority for a mere $10 annually.
The Airport’s Role in Economic Development
Council officials have stressed the substantial impact the airport has on the region’s economic development. The airport serves as a vital connection for visitors, often leaving a lasting first impression of Birmingham. This renewed focus on the airport signifies a commitment to fostering growth and opportunities for local businesses.
What to Expect from the Redevelopment
Atlantic Aviation is already underway with its redevelopment initiatives, with the project expected to wrap up by early 2027. Key features of this redevelopment include:
- A new executive Fixed Base Operator (FBO) terminal measuring 7,500 square feet, designed with luxury, functionality, and southern charm.
- A fuel farm that boasts increased capacity for handling operations.
- Two spacious hangars of approximately 30,000 square feet each, along with additional office and shop spaces tailored for handling large, globally capable aircraft.
- Expansion of ramp areas with concrete hardstands, specifically designed for large group charter aircraft.
- New training facilities, expanded offices, and upgraded locker rooms, all aimed at improving the working environment for Atlantic employees.
Meanwhile, Million Air is set to dedicate a minimum of $32 million to construction projects that include a brand-new 10,000-square-foot terminal catering to a range of aviation travelers such as pilots, military personnel, and corporate clients. Additionally, they will be building a Community Lite Aviation Hangar and two new Corporate Hangars, replacing outdated structures that are over 50 years old.
Understanding FBOs
Fixed Base Operators (FBOs) are facilities that specialize in services for general aviation, similar to full-service fuel stations. They offer a plethora of services, including fueling, hangaring, and maintenance. With Million Air’s extensive experience operating across 38 airport locations in the United States, they are well-equipped to enhance Birmingham’s aviation capabilities.
Conclusion
The lease extension marks a pivotal moment for Birmingham’s aviation industry, presenting fantastic opportunities for growth and development. As investments continue to pour in, residents can look forward to a modern and bustling airport that not only meets the current demands of air travel but also reflects the charm and hospitality of the city.
FAQ
Why was the lease with the Birmingham Airport Authority extended?
The lease was extended to facilitate substantial investments from aviation companies, enhancing the airport’s operations and contributing to the local economy.
What companies are making investments in the Birmingham Airport?
Atlantic Aviation and Million Air are the two companies making significant investments totaling $72 million.
What specific improvements can we expect at the airport?
The improvements include new hangars, a luxury FBO terminal, expanded facilities, and better services for general aviation.
When will the redevelopment projects be completed?
The redevelopment is expected to be completed by early 2027.
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Additional Resources
- AL.com: Birmingham Airport Lease Extension
- Wikipedia: Airport
- ABC3340: Birmingham Airport Lease Extended
- Google Search: Birmingham Airport investment
- WBRC: Birmingham City Council Approves Airport Lease Extension
- Google Scholar: Birmingham Airport economic development
- WVTM13: Contract Approved with Birmingham Airport
- Encyclopedia Britannica: Aviation
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
