FAA forecasts 5-year decline in airport construction

Dive Brief:

In its latest report to Congress, the Federal Aviation Administration said airport construction projects and other capital improvements that qualify for federal Airport Improvement Program (AIP) grants will drop by approximately $1 billion over the next five years to $32.5 billion, according to Engineering News-Record.
The projected spend represents a decline of 3% from the FAA's last five-year projection, issued in 2014, and a significant reduction from the $52.3 billion forecast in 2010.
Because the vast majority of big terminal construction and renovation undertakings are not eligible for the AIP grants, those larger projects were not part of the FAA's latest figures.

Dive Insight:

The FAA report aside, there's no indication that airport planners have downsized the size or scope of their projects this year. Just last month, Los Angeles International Airport officials announced that they were soliciting input on the environmental review for its planned $5 billion overhaul. The expansion includes two offsite ground transportation transfer facilities, a new rental car center and a 2.25-mile elevated people-mover. The people-mover component is a $2.7 billion undertaking, and five teams have been invited to submit proposals for a public-private partnership for the project.

Another massive airport project is underway at LaGuardia Airport in New York. The new $4 billion terminal project, which is also being built as a P3, involves 1.3 million square feet and will have 35 gates. Skanska USA is leading the joint venture that is designing, building, operating and maintaining the new terminal, and Skanska has called it the company's largest project thus far. San Francisco Airport also began a $2.4 billion terminal replacement project this summer. The eight-year timeline will see the construction of a new facility with 24 gates, two boarding areas, central check-in, security, baggage claim and a new mezzanine.

Perhaps the airport project with the longest timeline and broadest scope is taking place at Hartsfield-Jackson Atlanta International Airport. Planners there have devised a $6 billion, 20-year construction and renovation program, which includes a $393 million terminal to be finished in 2018 and a $943 million runway with a completion date of 2034.