New Pittsburgh airport terminal cost nearly doubles to $1.7B
The $1.7 billion Pittsburgh International Airport modernization project is nearly double its 2019 projected cost as it nears completion.
By TOM DAVIDSON
TribLive
The $1.7 billion Pittsburgh International Airport modernization project is nearly double its 2019 projected cost as it nears completion.
Inflation isn’t solely to blame for the ballooning cost of the project, Allegheny County Airport Authority CEO Christina Cassotis said in a statement.
Instead, the authority is performing other maintenance and improvement work at the same time the new landside terminal takes shape, Cassotis said.
The authority is preparing its final bond sale to cover the cost of the project, now pegged at $1.7 billion. No taxpayer money is being used, authority spokesman Bob Kerlik said.
The bonds financing the project will be repaid with revenue airlines pay the airport. The airlines approved the revised budget and three bond rating companies have affirmed the airport is on solid financial footing despite an uncertain worldwide economy.
“Those good bond ratings are not easy to achieve in a volatile environment like we are in today and are a testament to the senior team at PIT executing plans that ensure a cost outcome that will cause the airline partners to breathe a sigh of relief,” said Bill Swelbar, chief industry analyst at Swelbar Zhong Consultancy.
The project has been in the works since 2019. Its positive bond ratings mean the authority will benefit from lower interest rates and save in the long-term as it repays them, Kerlik said.
The new terminal is the first major overhaul of airport since it opened in 1992. It replaced Greater Pittsburgh International Airport, which had been the region’s airport since 1952.
The existing four-story landside terminal includes ticketing and baggage areas and security checkpoints. It sits a 70-second train ride away from the X-shaped airside terminal in the middle of the airfield. The new terminal will be at the bottom of the X, Cassotis said.
The covid pandemic delayed the project, but it is set to be finished by the end of the year, Kerlik said.
