LAX: American Airlines commits $1.6 billion investment

Los Angeles World Airports (LAWA) and American Airlines would continue its investment in LAX with more than $1.6 billion committed over the next 15 years to dramatically improve Terminals 4 and 5.

American’s letter of intent that sets the framework for negotiation of a new 15-year lease agreement features airport improvement projects that would be made possible by this investment and would happen over the next 7-10 years, including:

A new vertical circulation core with connection to the landside Automated People Mover (APM) train system

Unifying the passenger check-in and baggage claim areas

Improving check-in facilities in T5

Centralizing the T4 and T5 security screening checkpoint at the APM level

Connecting T4 and T5 on both the landside and airside of the building, including an above-ground connection extending from the T4/TBIT Connector to T5 on the airside

These improvements would essentially be made by tearing down the lobby areas of T4 and T5 one small section at a time and building a new, state-of-the-art facility, all while keeping the airport up and running.

The agreement also paves the way for American to receive additional gates as they continue to grow their operation and add destinations.

“This is a substantial commitment on the part of American, and our Board of Airport Commissioners will soon be reviewing the details of the new lease,” said Deborah Flint, Chief Executive Officer of LAWA. “Today we want to make sure American knows we are so appreciative of their support and willingness to support our efforts to make LAX and Los Angeles a preeminent destination in the world. I’m so pleased that American shares our excitement for the future of this great airport, and wants to partner with us to achieve our vision to create a world-class airport.”

“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. “We are committed to being the preferred airline at LAX, and we couldn’t do that without the more than 6,500 American Airlines team members making sure our 225 flights a day get out safely and on time. Our customers are counting on these team members to validate the trust they place in us each time they step onboard one of our aircraft.”

“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 Board of Airport Commissioners.