A report released April 19 by the Los Angeles County Economic Development Corp. shows new construction at Los Angeles International (LAX) has created 39,900 jobs and has helped the Los Angeles area recover from the economy’s struggles.
“The LAX modernization project is creating nearly 40,000 jobs and generating $2.62B in worker wages, making it one of the city’s biggest and most successful job creation and economic recovery efforts,” says Los Angeles Mayor Antonio R. Villaraigosa. “By investing in LAX’s infrastructure, we are ensuring that the airport will remain competitive in the global market, bringing visitors to our great city and putting our residents to work now and for years to come.”
The LAEDC analyzed the $4.11B new construction program and said the project puts the airport in a position to be competitive. The LAEDC also said $2.62B in labor would be generated from the projects.
“Ultimately, these projects represent valuable investments in Los Angeles County,” says LAEDC President and CEO Bill Allen. “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 modernization projects. We also stand to gain almost 4,000 jobs for every year of this entire project in our most decimated industry, construction, where we lost 56,500 jobs over the past two years.”
“By prioritizing modernization at LAX, we ensure Los Angeles has an airport that serves the needs of the public and makes it the job creation catalyst it was destined to be,” he continues.
The new construction projects include the Bradley West modernization, at more than $1.45B; it is the largest public works project in the city’s history and will double the size of the current Tom Bradley International Terminal. Other projects include the $438M replacement of the Central Utility Plant; nearly $300M in aircraft taxilane improvements; $270M in elevator/escalator replacements more than $600M for in-line baggage handling and screening systems in all terminals; and more than $636M in improvements throughout Terminals 4 (American Airlines), 5 (Delta/Northwest Airlines) and 6 (Continental, United, Frontier, COPA, Spirit, Allegiant and, upon completion of the T-6 renovation, Alaska Airlines/Horizon Air).
A combination of revenue bonds, LAX revenue and capital improvement funds, passenger facility charges, airline capital for proprietary improvement, and federal grants from the Federal Aviation Administration and Transportation Security Administration are paying for the projects.
“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, but the real story of the day is the 39,900 jobs that we’ve created,” says City Councilmember Bill Rosendahl, whose District 11 includes LAX. “That’s 39,900 families that can count on their paychecks during these tough economic times and, although we have a price tag for it, it’s hard to put a value on that.”
“I’ve always said that LAX is our own local stimulus package here in this region, and this report confirms that,” said City Councilmember Janice Hahn, District 15 and chair of the City Council’s Trade, Commerce and Tourism Committee. “We are providing good-paying jobs to local and small businesses at a time when we need it most. We’re also creating long-term jobs by accommodating the next generation of aircraft. Every daily round-trip overseas flight at LAX generates $623M annually and provides 3,120 local jobs.”
Los Angeles Board of Airport Commissioners President Michael Lawson said: “The $4.11B LAX Capital Improvement Program is not only building an LAX worthy of the city that has come to depend on this airport as an economic cornerstone, it is launching nearly 40,000 new jobs in the process.”
