The Houston City Council has voted to alter the four concessions contracts at Houston airports. The contracts will be renegotiated to require Council approval before termination of the contracts. The contracts as written allow the airport director to cancel the contracts at will under a “termination of convenience” clause, according to published reports.
The change was pushed by outgoing Mayor Sylvester Turner with the support of Mario Diaz, executive director of the Houston Airport System. The change was approved by a 9-7 vote.
According to the Houston Landing media site, the contract amendments would change agreements with four vendors: SSP America and Paradies Lagardère at Houston Bush Intercontinental Airport (IAH) and LaTrelle’s Galley and Areas at Hobby Airport (HOU).
“Given the significant investments made by concessionaires and the importance of stable continued airport operations, it is recommended that greater oversight be exercised when a decision to terminate is contemplated, whether for convenience or for cause,” Diaz told the media site.
Leading up to Wednesday’s council meeting, the move had been criticized by incoming Mayor John Whitmire.
According to several media reports, the contract change will make it more difficult for Pappas Restaurants to win back its airport contract. The longtime concessionaire lost in the latest bidding process to Areas, which was selected to operated concessions at HOU. Pappas filed a lawsuit against the city in April over the lost contract.
