McKinney Approves Final Funding, Airline Agreement as Airport Terminal Project Advances

By R.J. Morales | TX3DNews

McKinney National Airport’s push toward commercial passenger service moved into a new phase this week, as the McKinney City Council approved final funding and construction actions needed to advance the airport’s passenger terminal.

At its Dec. 16 meeting, the City Council authorized a budget amendment allocating the remaining $7.4 million from a $22.4 million McKinney Economic Development Corporation (MEDC) commitment, completing the economic development funding approved earlier this year and allowing the project to move fully into execution.

With the funding in place, council members also approved several construction and professional services contracts tied to the airport’s eastside development. Those approvals include a $17.7 million construction contract with Mario Sinacola & Sons Excavating, Inc. for Taxiway C and the FM 546 roundabout; a $2.9 million amendment with Garver, LLC for construction administration and terminal-area services; and a $158,521.50 contract with Terracon Consultants, Inc. for construction materials testing and observation.

Construction enters second major phase as work goes vertical

Airport Director Ken Carley told council members the approvals advance the project into its second major construction phase.

“We issued contracts earlier this year and broke ground on the terminal infrastructure, parking lots, and aircraft apron, and this represents the second phase of that construction,” Carley said.

Carley said work at the site has already reached a visible milestone.

“The project did go vertical this week,” he said. “The plan is for all of the tilt walls to be up and in place by the end of this year.”

City officials said construction of the passenger terminal, aircraft apron, parking facilities, roadway improvements, and supporting infrastructure remains on schedule, with completion targeted for late 2026.

McKinney confirms airline use and lease agreement with Avelo

Alongside the construction approvals, the city confirmed that McKinney National Airport (TKI) has executed its first Airline Use and Lease Agreement (ULA), a key operational step toward launching commercial service. Avelo Airlines is the first carrier to sign the agreement, positioning it as the airport’s launch airline once the terminal opens.

“We have reached an agreement with Avelo Airlines for the use of the terminal,” Carley told council. “They have signed the city’s use and lease agreement, so they’re going to be our first partner in the project going forward.”

Carley said the agreement also establishes a framework for future airline negotiations.

The five-year ULA, which includes an optional five-year extension, outlines how Avelo and future carriers may operate at TKI, including use of airfield facilities, terminal space, aircraft parking and maintenance areas, and passenger- and fuel-related fees.

Mayor Bill Cox described the agreement as a milestone for the city.

“This project is gaining momentum, and it’s exciting to see the city’s long-term planning turn into visible progress,” Cox said in a city statement.

Avelo outlines aircraft plans and local hiring

Avelo Airlines confirmed details of its McKinney plans in an email response to TX3DNews. The airline said it will initially operate Boeing Next-Generation 737 aircraft from TKI, with plans to incorporate Embraer E2 aircraft as deliveries are received.

“We’ll initially utilize our Boeing Next-Generation 737 aircraft and when we accept delivery of our Embraer E2s, we’ll utilize those as well,” said Courtney Goff, Avelo’s communications manager. “Once the airport is officially ready for commercial service, you can expect news of new routes a few months prior.”

Goff said Avelo plans to hire locally for its McKinney operations, including both customer-facing and ground roles.

“We’ll hire locally for above and below the wing positions,” she said.

Avelo Founder and CEO Andrew Levy said McKinney National Airport fits the airline’s strategy of serving secondary airports in large metropolitan regions.

“TKI fits well within our network as a secondary airport of a large metro area,” Levy said. “A small, easy-to-use airport works perfectly into our strategy, and we’re excited to work with the airport and city leadership to grow in North Texas.”

Opposition groups cite transparency and environmental concerns

Opposition to the airport’s expansion remains. The North Texas Conservation Association (NTCA), which has challenged the project, said it continues to raise concerns about the environmental review process and the city’s transparency.

In a statement provided to TX3DNews, NTCA said a recent federal court dismissal of its challenge to the airport’s Environmental Assessment was procedural and did not address the merits of its claims. The group also criticized the timing and disclosure of the Airline Use and Lease Agreement with Avelo, calling for greater public transparency regarding the agreement’s terms.

City officials have not publicly responded to those specific assertions.

Project timeline and next steps

The executed ULA formalizes a relationship that had previously been described as exploratory. As recently as July, Avelo characterized its interest in McKinney as preliminary, citing a letter of intent without a defined service timeline.

City officials and the airline said route announcements and a commercial service launch date will be announced closer to completion of the terminal.

With construction underway and its first airline partner secured, McKinney National Airport continues its transition from a general aviation facility toward commercial passenger service, a move city leaders say is intended to support regional growth and expand travel options for residents across McKinney and North Texas.