$900M Investment at PHL To Bring New Traffic Control Tower, Remodeled Terminals
May 23, 2017
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  • A $900 million infrastructure investment at Philadelphia International Airport led by American Airlines dedicates nearly half the funds to maintenance and repairs of the airfield and terminals, while the next largest piece – $200 million – will go towards making good on the promise made in the 2015 lease agreement for a new air traffic control tower.

    American Airlines and PHL announced Tuesday an agreement to continue to make “critical improvements and to develop new infrastructure” at the city’s International Airport and Philadelphia Northeast Airport at a total cost of $893.8 million.

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    The investment is broken down into several key initiatives:

    Maintenance & repair projects: $395.9 million

    New air traffic control tower: $197.5 million

    Terminal modernization program enabling projects: $96.5 million

    Fuel farm expansion: $94.6 million

    Deicing facility conversion: $43.2 million

    Terminal B concession redevelopment: $32.8 million (For more details on this project, which is already underway, click here.)

    Land acquisition: $27.1 million

    Capital equipment: $6.2 million

    The bulk of the dollars are being spent on PHL – with $26 million earmarked for improvements and upgrades at the Northeast Airport.

    The funding for the projects comes from the airlines, according to Rhett Workman, American Airline’s managing director of government and airport affairs.

    “It is worth noting that these investments are not funded by taxpayer dollars. Instead, they are an investment in the region by the 15 airlines that serve the airport,” Workman said in a statement.

    Workman told plans to set up an “automated ‘people mover'” have put put aside and the existing connector bus system – with tweaked routes and the addition of 12 new buses – will continue to cart passengers between terminals.

    All of the announced projects, overseen by the Division of Aviation and American Airlines, are expected to be completed within the next five to seven years, the airport and American said.

    PHL Airport CEO Chellie Cameron, in a statement, pointed to the economic impact the investment will have on the Philadelphia region.

    “We want our passengers to know that when they choose PHL today, they will receive efficient and comfortable service. As we grow in the future, it will only get better. Also, the direct and indirect jobs created by these projects will help keep the Philadelphia region thriving,” Cameron said.

    In the joint statement, PHL and American said the projects will generate nearly $4 billion in economic output in Greater Philadelphia over the next five years.