In 1997 they had an architectural competition for a new 430,000 ft² (40,000 m²) passenger terminal, designed to serve 3.5 million passengers a year, north of the original airport. KHR Architects won the assignment and completed the construction in co-operation with COWI, and at the end of May 2002 the new passenger terminal was put to use, as the first phase of the future expansion, which is scheduled to take place north of the start and runway, while air cargo services, business and private aviation will continue to be served from the existing buildings south of the runway. In connection with this expansion, the largest since the beginning of the airport, it was with effect from 1 January 1997 turned into a Joint-stock company, Billund Airport A/S, with the former members Vejle County and municipalities Vejle, Kolding, Grindsted, Billund, and Give as shareholders.
Billund Airport had its beginning in 1961 when the son of the founder of the Lego Group, Godtfred Kirk Christiansen, established a private 800-meter long runway and hangar north of his factory in Billund. With Christiansen as a key driver, more of the neighbouring municipalities were included in the group of owners, and it was planned that the airport should be expanded to a regular public airport.