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Why is the Houston Airport System involved in international airport projects abroad while struggling at home?

HOUSTON – While the Houston Airport System has faced heavy criticism and questions focused on the inability to get its international terminal up and running, the airport system’s previous leadership does have a track record of getting international terminals to operate smoothly, only not here in Houston, as KPRC 2 Investigates is exposing.

The construction of the new Mickey Leland International Terminal at George Bush Intercontinental Airport has languished for years.

In 2014, Houston City Council approved the terminal for a complete makeover. As KPRC 2 Investigates first exposed, tens of millions of dollars were spent on the project, with nothing to show for it.

Houston Airport System Development Corporation website (KPRC 2)

The Houston Airport System Development Corporation, also known as HASDC, has a track record of helping operations run smoother at four airports located in Colombia, Costa Rica, and Ecuador.

KPRC 2 Investigates uncovered a news article touting former Aviation Director Mario Diaz’s meeting with airport officials in Barranquilla, Colombia, as a representative of HASDC. The former airport director has no relationship to KPRC 2 Investigates Mario Diaz.

The HASDC website highlights the Ernesto Cortissoz International Airport as one of its projects. It’s important to note that this meeting happened in 2016, while the international terminal project that Houstonians and travelers were paying for was struggling to get off the ground.

Houston Airport System Development Corporation (KPRC 2)

Coincidentally, as we examined the website for Ernesto Cortissoz International Airport, we discovered that their airport logo is nearly identical to the same logo used by the Houston Airport System.

“It alarms me that an airport system—that has got some deficiencies—would be spending their time and maybe even Houston taxpayer dollars to help Ecuador or other countries,” said Mayor John Whitmire in a sit-down interview with KPRC 2 Investigates.

HASDC is a tiny corporation consisting of three employees. They also have a Board of Directors, with the Houston Airport System Aviation Director serving as Chairman of the Board.

A mission statement on their website claims, “to assist governments of developing countries connect their economies to global markets by helping to create best-in-class airports, in order to enhance the lives of their citizens.

The HASDC website does not list a phone number or an address identifying where it is located, but KPRC 2 Investigates found the office inside of a building off Westcott Street near Memorial Park. That is 22 miles away from the executives building for the airport system.

Agustin Arellano heads up HASDC as its President and CEO. Government filings also list an Assistant Treasurer and Assistant Secretary. According to their IRS returns for 2022, Arrellano makes $335,000 per year as president. HASDC also has two assistants making $255,000 and $240,000, respectively.

We found Arrellano makes more than newly appointed Houston Airports System Aviation Director Jim Szczesniak, one of the men he reports to.

“I hope we do a full audit of his job responsibilities, where the money comes from, and also what is the benefit to the Houston airport,” said Mayor Whitmire.

Mayor John Whitmire speaking with Mario Diaz (KPRC 2)

In federal and city records, HASDC makes it clear that it’s attempting to provide a benefit to the City of Houston.

KPRC 2 Investigates also obtained city emails showing airport executives doing work for HASDC while employed by the city. HASDC’s website states they are “affiliated” with the Houston Airport System but have no legal or financial responsibilities. However, it’s important to once highlight that the city’s Aviation Director is the Chairman of the Board in “perpetuity” which means forever.

However, Arrellano says to us, that’s not the case.

“No, it’s just a bad translation. HASDC has nothing to do with Houston Airport System,” Arrellano said. “That’s an old version, an old version of our website.”

The Houston Airport System Development Corporation (kpr)

KPRC 2 Investigates also uncovered HASDC making millions in recent years. However, it is uncertain where the money is going.

We found folks in the office created subsidiary companies without many inside City Hall having a true understanding of it.

“I don’t believe the Houston Airport System with its challenges that it presents to travelers and Houstonians needs to be spending any time on third parties,” said Mayor Whitmire.

KPRC 2 Investigates report into HASDC is not over, and we will have more on the company in April.


About the Author
Mario Díaz headshot

Journalistic bulldog focused on accountability and how government is spending your dollars. Husband to Wonder Woman, father to a pitcher and two Cavapoos. Prefers queso over salsa.

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