The Los Angeles City Council has approved an amended lease agreement between Los Angeles World Airports (LAWA) and Delta Air Lines for space in Terminal 5 at Los Angeles International Airport (LAX).
Airport officials said the lease restates the original 40-year term that will expire in 2025; includes terminal maintenance and operations charges listed in a 2008 settlement; and covers acquisition of approximately $192 million of terminal renovations currently underway and slated for completion over the next several years.
The lease additionally calls for Delta to complete its current $228.8 million terminal renovation project. No funds from Los Angeles city’s general fund will be used.
“The City Council’s action allows LAWA and our partners to continue forward on modernizing Terminal 5 and enhancing customer service for the nearly 6.6 million domestic and international travelers who pass through the terminal each year,” LAWA Executive Director Gina Marie Lindsey said.
Airport officials predict the lease agreement will generate approximately $19.6 million in revenue to LAWA during the first year, and approximately $283.2 million over the 14 years remaining of the original 40-year term.
Among the improvements still to be performed by Delta under the lease are renovating the ticketing/check-in lobby, baggage claim areas, boarding gates and other security screening checkpoints, as well as replacing 13 passenger boarding bridges. Specialty lighting, finishes and other architectural elements to improve the passenger experience will also be installed.
Construction began in 2010 and is expected to be completed within five years.