LAX Bradley Terminal to get $1.13 billion upgrade

LA’s Board of Airport Commissioners approved $1.13 billion in construction contracts Monday for the revitalization of the Tom Bradley International Terminal at LAX. Construction contractor Walsh Austin Joint Venture will handle the Bradley West project, which will be the largest public works project in the city’s history. The terminal, which already suffers from overcrowding and chronic delays, hasn’t seen any major improvements since the 1984 Olympic games. Included in the 1 million sf project are added space for ticket counters, security checkpoints, passenger lounges, immigration facilities, and restaurants and retail stores, as well as a capacity expansion of existing gates to accomodate new wide-body aircraft, like Boeing’s 787 Dreamliner and Airbus’ A380, capable of carrying 800 passengers.

LAX--and the Bradley Terminal in particular--lags far behind its international peers in capacity
and modernization. The terminal is drab, inefficient, and cramped. Compounding these issues
are the temporary security measures implemented after 9/11, which have yet to be made into
permanent, functional features. But this ambitious project comes at a rather conspicuous time
- the airline industry is suffering its worst downturn in history. Other airports are putting expansion projects on hold, while airlines are cancelling orders for new aircraft. In 2011 passenger volume at LAX will sink to 51 million from its 2000 peak of 68 million. This year, LAX has dropped from the world’s 6th busiest airport to its 8th.

But officials defend that Bradley West is part of a long term vision, and will help equip LAX
for a predicted 2014 recovery in air travel. LAX, which has a good credit history and lower debt
than similar-sized airports, will finance the project with revenue bonds. But first it will have
to increase revenue from concessions and parking, ask Congress to raise the $4.50 passenger
facilities charge, and raise fees and rents for the airlines, which are too low at $11 per passenger.
Whether cautious passengers will go for a fee increase and whether hurting airlines can stomach
a fee increase is yet to be seen.

The project aims for a 2013 completion and will create around 4,000 construction jobs.