Delta's $1.8B LAX project approved
- Delta Air Lines and Los Angeles World Airports (LAWA) announced last Thursday that the $1.8 billion Sky Way terminal modernization project at Los Angeles International Airport (LAX) has been authorized by LAWA's board, paving the way for construction to begin this fall. No entities have been named as contractors for the project.
- The airline will oversee construction of a 27-gate complex at Terminals 2 and 3 with a secure connection to international Terminal B; a new "headhouse" with a central lobby, security checkpoint and baggage claim; a complete renovation of Terminal 3; a bridge connecting Terminals 2, 3 and B and a security checkpoint for domestic travelers transferring to international flights; new retail, dining and restrooms; emergency power generators; dual taxi lanes on the airfield and a connection to the future people mover, which is scheduled for completion in 2023.
- Last year, a Clark Construction-McCarthy Building Cos. joint venture helped Delta relocate its LAX operations as part of what local media termed the "LAX Terminal Shuffle" in preparation for the Sky Way project. The LAX project is part of a $12 billion capital program that will see select Delta facilities across the country undergo significant renovations.
An even bigger Delta project underway is its $4 billion terminal project at LaGuardia Airport in New York City. The airline broke ground on the project in August and recently secured a $1.4 billion loan to renovate its two terminals at LaGuardia through New York's Empire State Development and Bank of New York Mellon. Its original partner, Goldman Sachs, withdrew from the project last year, after which Delta announced that it would receive a $600 million contribution from the Port Authority of New York and New Jersey and finance the rest of the deal itself.
Delta's terminal project is roughly $1 billion less than the dollar value of the public-private partnership contract the Port Authority entered into for the reconstruction of LaGuardia Central Terminal B. La Guardia Gateway Partners took on the financing, design and construction of the terminal and will operate and maintain it when complete.
Delta is also part of Chicago O'Hare International Airport's $8.5 billion program of new construction and renovations that will see the overhaul of three existing terminals, the replacement of another, 25% more plane parking space, areas for larger planes, the replacement of 40 gates and construction of an additional 35.
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