American Commits $1.6 Billion Toward LAX Domination

Image: PHOTO: Los Angeles International Airport. (photo via Flickr/Prayitno)
Image: PHOTO: Los Angeles International Airport. (photo via Flickr/Prayitno)
Monica Poling
by Monica Poling
Last updated: 10:50 AM ET, Wed June 7, 2017

If Extreme Makeover were to ever spin off an airport version of its popular reality series, no doubt Los Angeles International Airport would be an early contender for featured contestant.

The airport, which Donald Trump cited as an example of America's third-world infrastructure during the presidential debate, is actually sporting some pretty glamorous new looks.

And there appears to be no end in sight for new offerings, with American Airlines announcing the most recent run of upgrades.

LAX is currently in the midst of the largest public works program in the history of the City of Los Angeles. The city is spending more than $14 billion to modernize the facility with eight of the nine terminals undergoing renovation. The airport says it is spending $3 million a day on upgrades, with more than two dozen projects in the works.

Among the offerings will be a new people mover to help reduce traffic congestion and a brand-new rental car facility.

Unlike many other airport facilities in the United States, LAX does not have one dominant "hub" airline; All of the "big three" (American, Delta and United) sport substantial operations there.

Most recently, the airport completed the biggest terminal relocation at an operating airport, shifting around nearly one-third of its airlines to accommodate upgrades planned by Delta. In a nutshell, the carrier is spending some $1.9 billion at LAX over the next seven years, including building a new connector from Terminal 3 to the Tom Bradley International Terminal (TBIT.)

United is also in the midst of a major overhaul at LAX, with plans to spend some $573 million improving Terminals 7 and 8 from which it operates. This includes a renovated check-in area, significantly upgraded security checkpoints and a brand new United Club lounge-all expected to be completed by early 2018.

[READMORE]READ MORE: Private Terminal for the Uber Rich Opens at LAX[/READMORE]

Not to be left out as the world's largest carrier, American Airlines announced Friday that it will be investing more than $1.6 billion at the airport as part of its 15-year lease renewal.

The upgrades, which include overhauling Terminals 4 and 5, also pave the way for American to operate more gates at LAX, as it plans to grow its operation there.

"This investment will not only improve the customer experience, but it will also give our employees a better place to work every day while allowing us to continue to grow in the marketplace," said Doug Parker, Chairman and CEO of American Airlines in a statement.

"It's an exciting time for the U.S. airline industry and for American in particular. Today, U.S. airlines are healthy and investing back into their businesses and the communities they serve. What we are doing here today is a great example of that."

Essentially, the airline says it plans to tear down the lobby area of Terminals 4 and 5 one section at a time, in order to keep its overall airport operations up and running.

Also included in the planned upgrades are a new "new vertical circulation core," which will connect to the new LAX Automated People Movers (APM) train system when it opens. The airline also plans to make improvements to its check-in, baggage claim and security screening areas. A new above-ground connection between Terminal 4 and the Tom Bradley International Terminal is also on tap.

While the upgrades are part of the airline's 15-year lease, the bulk of the work should be completed within the next decade.

[READMORE]READ MORE: LA Board of Airport Commissioners Plans for LAX Terminal 1.5[/READMORE]

"This deal with American to dramatically improve terminals 4 and 5 along with projects like the new Midfield Satellite Concourse, the Automated People Mover, the consolidated rental car facility, and the renovation of terminals 2 and 3 are to deliver on our top priority - giving our passengers the world class experience they expect and deserve," said Sean Burton, President of Los Angeles World Airport (LAWA) Board of Commissioners.

The new American lease is still subject to the approval of the LAWA Board of Commissioners.


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