CHICAGO - Airlines that operate at Kansas City International Airport and a special city study group submitted a preliminary report to the city that concludes building a new terminal is less expensive than overhauling the existing one.
The report looked at two renovation options and two rebuilding proposals.
"The major renovation options are estimated to be significantly higher than $1 billion while the new terminal options will be less than $1 billion," Steve Sisneros, director of airport affairs at Southwest Airlines, one of the seven major carriers, told city officials at a meeting July 22.
The airport study group report recommends tabling the renovation options and refining the new terminal construction options. A final recommendation was not made and no action taken. Whatever the city eventually decides, a public vote is expected.
Moody's Investors Service this spring revised its outlook on the Kansas City, Missouri airport to positive citing recent revenue and traffic growth.
The rating agency June 20 affirmed the airport's A2 senior and A3 subordinate ratings. The action impacts $230 million of outstanding revenue backed debt.
The Moody's rating incorporates the potential for the large-scale airport redevelopment plan, but that course is uncertain given the need to have any plan approved by the voters of Kansas City.
The airport could win an upgrade if positive growth trends continue leading to improved financial margins. The rating agency is also looking for more clarity on how the airport would finance the proposed terminal expansion plan.
