The renovation is part of a settlement agreement between Los Angeles World Airports -- the city agency that runs LAX -- and Alaska Airlines stemming from a lawsuit the airline filed in 2007 along with AirTran Airways, ATA Airways and Frontier Airlines. The suit alleged that LAWA unfairly levied a Passenger Terminal Tariff on airlines to cover increased security costs.
Alaska Airlines agreed to drop the suit and sign a 10-year lease agreement at the soon-to-be renovated Terminal 6. The renovation and lease are contingent upon approval by the City Council.
"This is a big step forward in the overall modernization of LAX, because Alaska Airlines is partnering with us to provide much needed upgrades to the level of service and convenience for not only our international, but also for our domestic travelers," LAWA executive director Gina Marie Lindsey said.
The renovation will include a new "in-line" baggage inspection system to prevent passengers from having to wait for security to screen their luggage.
The bulk of the financing for the renovation will come from LAWA. About $96 million will come from LAWA cash, passenger facility charges and Transportation Security Administration reimbursements. Another $156.5 million will come from LAWA long-term debt. That money covers improvements that will benefit any airline
operating out of Terminal 6. Another $18.6 million in Alaska Airlines money will go to airline's proprietary improvements, including a new club room, specialty lighting and other architectural improvements.The agreement estimates the project will be completed by the summer of 2012.
Mayor Antonio Villaraigosa called the project a boon to the local economy, "as nearly 700 jobs, as well as numerous construction related material purchases, are created by this project."
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