By Dominic Welling
Projects to modernise Los Angeles International Airport (LAX) will give a $6.89 billion boost to the local economy as well as generate nearly 40,000 jobs over the next seven years, according to a new study.
Figures from the Los Angeles County Economic Development Corporation (LAEDC), reveal that the $4.11 billion project currently underway at LAX is expected to generate $6.89 billion for the region's construction, manufacturing, real estate and retail industries.
In addition, the several projects will create a total of 39,900 jobs and generate $2.62 billion in labour income.
Bill Allen, president and CEO of the LAEDC, said: "Ultimately, these projects represent valuable investments in Los Angeles County.
"At a time when the city's unemployment rate hovers around 13%, we stand to gain almost 40,000 jobs over the next seven years from the LAX modernisation projects."
Current new construction at the gateway is comprised of 25 different projects in total.
The biggest of these works is the $1.45 billion Bradley West modernisation project which will double the size of the Tom Bradley International Terminal to two million sqft.
The airport will also spend $438 million on replacing the Central Utility Plant, as well as nearly $300 million in aircraft taxilane improvements and $270 million in elevator and escalator replacements.
More than $600 million will be spent on in-line baggage handling and screening systems in all terminals as well as more than $636 million on improvements throughout Terminals 4, 5 and 6.
According to LAEDC, the projects are being funded by a combination of revenue bonds, LAX revenue and capital improvement funds, passenger facility charges, and airline capital for proprietary improvements.
There will also be federal grants from the Federal Aviation Administration to put towards the airfield improvements and from Transportation Security Administration for the in-line baggage screening improvements.
City Councilmember Bill Rosendahl, whose District 11 includes LAX, said: "Our relentless efforts to bring businesses, airport leaders, and the local community together to make LAX modernization a reality is finally paying off in a big way for our city."
