Los Angeles World Airports Commissioners on Thursday approved an additional $400 million to settle legal claims and set a date for the completion of LAX's significantly delayed Automated People Mover — increasing the project's total cost from $2.9 billion to $3.34 billion.
According to a report to commissioners from LAWA CEO John Ackerman, the additional funding is needed to address claims filed by the contractor, LAX Integrated Express Solutions, also known as LINXS, over issues related to compensation, production and timeliness.
The project could be completed on Dec. 8, 2025, the report said. Operation would begin in January 2026.
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But the Los Angeles City Council would also need to approve the funding request before any money can be allocated. The matter will go before council committees beforehand, sometime after council members return from summer recess on July 30.
"Resolution of claims now will provide LINXS the necessary cash flow and incentive to ensure schedule certainty," the report reads. "Resolution of these commercial issues will also allow the parties to focus on the activities necessary to complete the APM project, including reaching passenger service availability, and LAWA can avoid potentially higher costs should these claims continue unresolved,."
Images: See renderings of the LAX Automated People Mover
The LAWA board in May already approved around $200 million in additional money for the project, to address similar claims submitted by the contractor. That money would be included as part of this $400 million, increasing the total settlement to about $550 million.
An additional $50 million is also on the agenda for Thursday as a contingency that may or may not be allocated fully, according to the agenda report.
The Automated People Mover had an original estimated cost of about $2.9 billion — but with this settlement proposal, the total project cost would increase to $3.34 billion.
The People Mover is a piece of the airport's larger $30 billion project to update terminals, gates and airport signage.
The electric train system on 2.25 miles of elevated rail with six stations was originally scheduled to be completed this year.
With projected completion in 2025, the project is still aimed at improving transportation ahead of world events taking stage in the Los Angeles region, including the 2026 FIFA World Cup and the 2028 Olympic and Paralympic Games.
The airport broke ground on the People Mover in March 2019. It's estimated that it will eventually carry some 30 million passengers a year, resulting in 117,000 fewer vehicle miles traveled per day, according to LAWA's website.
