A longer construction schedule, more asbestos abatement and the re-addition of gates to Terminal C has boosted the Dallas/Fort Worth Airport’s terminal renovation project budget by $650 million to $2.7 billion.
“Since we did the original TRIP budget in 2010, there has been over 30 scope changes to the entire project,” chief executive Sean Donohue told the airport board on Thursday.
The airport added a new parking garage to Terminal A as part of the project and American has asked that gates in Terminal C that were going to be demolished as part of the original project will now be renovated.
“Back in 2010, when we planned the construction, we planned it under a no growth scenario and that told us we could shut down 8 to 10 gates at a time,” Donohue said. “We’ve been only able to shut down 4 to 6 gates at a time.”
The construction on Terminal C cannot begin until after all of Terminal A is completed as American Airlines, the airport’s largest tenant, is using almost all of the gates at those two terminals.
As a result of the budget increase, the airport will be issuing an additional $450 million in bonds. The airport currently has about $6 billion in debt from the construction of Terminal D, its Skylink train and the renovations of Terminal A, B and E.
The bonds will be paid for by an increase in fees and terminal rents on the airport’s airline tenants. Donohue said American Airlines’ board has already approved the new $2.7 billion budget.