The Los Angeles Board of Airport Commissioners has approved a partial settlement agreement with 22 foreign air carriers operating at the Tom Bradley International Terminal at Los Angeles International Airport (LAX).
Officials of the city airport agency, Los Angeles World Airports, announced the agreement July 28th after the Board of Airport Commissioners publicly reconvened from a closed session that followed its regularly scheduled public meeting.
Los Angeles World Airports operates LAX and three other regional airports.
In the matters of Alaska Airlines versus Los Angeles World Airports, and Aer Lingus Group versus Los Angeles World Airports, the airport department has reached a partial settlement agreement with 22 foreign air carriers operating out of the Tom Bradley International Terminal, airport officials said.
The agreement covers the years 2006 through 2009 and settles challenges raised by the airlines in their February 16th and April 30th complaints last year concerning the imposition of certain terminal charges for the Bradley Terminal and also addresses certain issues related to recovery of the costs of the renovations currently under way at the terminal, officials said.
Among the key settlement terms are that Los Angeles World Airports and the airlines have agreed that the extensive construction projects currently under way to refurbish and renovate the Bradley Terminal are estimated to cost at least $723.5 million. A total of approximately $455.2 million will be debt-financed and the annual debt service and issuance costs will be recovered from the airlines, according to the settlement.
The parties have also reached an agreement that the remaining project costs would be funded by a non-airline source.