Plans by Salt Lake City International airport to undertake a massive reconstruction project are being blessed by its major tenet Delta Air Lines.
City Mayor Ralph Becker highlighted the 8- to-10 year $1.8 billion plan in a recent speech, stressing that funding for the redevelopment is being drawn from land and ground user fees at the airport.
Among the goals of the terminal redevelopment plan are accommodating growth, maintaining competitive costs, solving operational problems, right-sizing facilities and addressing seismic risks. Roughly 21 million passengers travelled through the airport in fiscal 2011, according to an airport document outlining the reconstruction plan.
Delta, who accounted for 73% of enplaned passengers at the airport in June 2011, and Southwest with a 12% share, have both approved the project, an airport spokeswoman said.
A Delta spokesman told FlightglobalPro that the carrier has a "great working relationship" with the city and airport, "and we look forward to working with them on executing a responsible airport restructuring plan".
The airport's current cost per enplaned passenger (CPE) in September 2011 was $3.58, and with the planned reconstruction project CPE estimates increase to $4.50 in 2018, $4.94 in 2020 and $4.98 in 2021.
Using ACI-NA data the Salt Lake City airport estimates Miami had one of the highest CPE metrics at $18.57 for September 2011, while its own costs were lower than the $4.48 estimated for Atlanta and the $4.81 CPE at Memphis International airport.
The total costs for various overhaul projects at Salt Lake City airport through 2026 is approximately $2.2 billion. The airport is using $631 million in cash to support those projects, with passenger facility charges (PFC) contributing $350 million of the total. General airport revenue bonds backed by PFCs account for $557 million. Bonds, federal grants and rental car facility charges round out the remaining 30%.