Dulles Airport Accused of Rigging Luxury ‘Private Terminal’ Contract—$60 Million Deal Under Fire

LAX and Atlanta have “Private Suite” facilities that offer their own terminals – you arrive, clear security there, and get chauffeured across the airfield straight to your aircraft. The company is developing facilities at DFW, Miami and Paris. And they’ve been expected to open at Washington Dulles, too. However the Dulles facility is now embroiled in a lawsuit with the airport.

The Private Suite IAD is suing the Metropolitan Washington Airports Authority in the U.S. District Court for the District of Columbia, seeing a restraining order to block a contract for the VIP luxury facility, claiming they’re engaged in a “thinly veiled” effort to steer the deal to someone else.

They allege the airport authority is trying to ‘steer’ the deal to Irish government-owned daa International and Potomac Holdings LLC. Given the airport authority’s history I think a starting bias is to assume allegations against them are usually true.

The deal is for a 20-year contract with an estimated value around $62.6 million and the facility will be near the Cargo 6 building along Air Freight Lane. Construction is expected to take around 2.5 years. It’s described as a 51,000-square foot space and would include:

  • Passenger security screening and processing
  • Passenger and baggage transportation to/from gates
  • Amenities including food and bar service, private suites, restrooms, Wi‑Fi.

The formal solicitation opened September 26, 2025 and closed December 5, 2025. During that period two amendments were issued with diversity requirments:

Originally the airport issued a solicitation in 2023 and that’s when it was reported that there’d be a PS terminal. However, instead of moving forward, the solicitation was cancelled in May. The airport’s rules allow them to cancel and change requirements or correct and clarify based on errors and omissions.

The lawsuit’s theory, though, is that they kept moving the goal posts in order to ensure their preferred company got the contract. And even the airport’s own rules say that these solicitations should do the opposite – they should be “designed to achieve meaningful competition,” and specs that limit competition must be justified in writing.

The airport authority is a public entity that has to follow clean rules, but they will lean heavily on their broad discretion. And a temproary restraining order is tough because it’s difficult to show irreparable harm (at most the Private Suite faces monetary damages).

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. If you can afford ‘Private Suite’ services must feel like a downgrade to then fly commercial… ATL is interesting because DAL hasn’t invested in a D1 lounge there yet, likely, because they have a monopoly anyway, so who cares about impressing anyone, but, also, those who can afford ‘nice things’ just go to PS anyway.

  2. Tell me it’s not true. The rich bribing and being crooks? I thought that was only done by us middle and lower class. Oh right, we can barely afford groceries in this Big Beautiful Economy.

  3. Airports used to be a public utility. The purpose was to get people on and off planes. Today it’s like any other commercial facility and therefore the endless ways to make money from now private terminals (which I would like but probably couldn’t afford) to all kinds of consumer services. Do I really need to get a massage at an airport or purchase a $500 suit?

  4. You’re onto something, @Ray.

    @George Romey — It’s fine for businesses, like spas, to operate within airports; that’s not what’s driving up costs; it’s the major corporations that benefit both from tax breaks and also exert monopoly-like power over consumers in these contexts. Same with sports arenas, which, we the taxpayers mostly fund, but, then also have to pay exorbitant fees for tickets concessions. The super-rich (not, not Concierge Key-level, think higher-up, sir) are taking advantage of all of us.

  5. Today it’s like any other commercial facility and therefore the endless ways to make money from now private terminals (which I would like but probably couldn’t afford) to all kinds of consumer services.

    Privatizing airports in the United States is long, long overdue.

  6. @Denver Refugee — Awful take. What is up with you guys promoting post-Soviet Russian crony-capitalism on here all the time? ‘Privatize everything!’ Surely, that’ll lower costs for the people… *facepalm*

  7. “The super-rich (not, not Concierge Key-level, think higher-up, sir) are taking advantage of all of us.”

    “‘Privatize everything!’ Surely, that’ll lower costs for the people… *facepalm*”

    He will never get it. His brain can’t comprehend the source of the problems facing society.

  8. In light of the current administration, the question “Do you really want government running infrastructure” is entirely relevant.

  9. @Denver Refugee — Colorado and Denver governments seem fine, no? Feds typically partake in some funding and oversight of projects; many airports are still largely run and managed, locally. For instance, in NYC, our three major airports are run by a joint NY/NJ state organization called the Port Authority.

  10. @Mike P — Other than trash-talking me, no solutions from you, ever. C’mon, libertarians can’t run airports. ‘Just land whenever you want to, as is your ‘right’…what could go wrong!’

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