Philadelphia International Airport is set for nearly $900 million in infrastructure improvements under a new agreement forged by city officials and airline carriers.
The project announced last week features $396 million in maintenance and repairs for the airport, which is owned by the City of Philadelphia and is a hub for American Airlines. American, which operates 73% of the airport’s passenger traffic, is also committing along with other airlines $197.5 million for a new air traffic control tower.
Philadelphia International Airport received a downgrade to A from A-plus from S&P Global Ratings in August 2015 due largely to weak liquidity. A report released by Econsult Solutions released in April estimates that the airport generates $225 million in tax revenue for Pennsylvania and $78 million for Philadelphia.
“We appreciate the significant support of American Airlines and all our airline partners as we work together to give our passengers an excellent traveling experience,” Philadelphia International Airport CEO Chellie Cameron said in a statement. “Also, the direct and indirect jobs created by these projects will help keep the Philadelphia region thriving.”
The projects will be managed and executed by the Philadelphia Division of Aviation and American Airlines over the next five to seven years. Other enhancements slated under the $893 million of planned investments include $96.5 million for a terminal modernization program and $32.8 million earmarked for new concessions. The airport’s capital spending is derived from user charges, airline-backed revenue bonds and grants.
Philadelphia Northeast Airport will also receive $26 million for upgrades to its taxiways, runways and facilities under the infrastructure program. The small public airport serves private and corporate aircraft.