"Anchorage airport construction in final phase"

Saturday, April 17, 2004

Airport construction in final phase
CONCOURSE C: After cost overruns and delays, opening is planned for
June.
By ROBERT HOWK
The Alaska Journal of Commerce


After years of delays and cost overruns, construction of a new concourse
at Ted Stevens Anchorage International Airport will be completed in time
for the bulk of this summer's tourist traffic.

Work on the 447,200-square-foot Concourse C began in 1999 and was
expected to be finished by the summer of 2002, but design revisions and
increased security requirements put in place after the Sept. 11, 2001,
terrorist attacks on the East Coast pushed back the schedule.

The new concourse is scheduled to open June 30. A public open house is
planned for June 29. 

"I am extremely pleased with the progress that has been made on the
concourse," said Morton Plumb Jr., airport director.

Airport executives, contractors, airline representatives and officials
with the Transportation Security Administration met this winter to plan
the transition, Plumb said, and they all are eager to finish the job.

There are two major considerations for the opening.

"We have contractual issues with the construction folks, and they have a
certain amount of time in which to deliver. We need to ensure that we
get a certificate of occupancy," from the Municipality of Anchorage,
Plumb said.

"Also, for the opening, we have to coordinate with the TSA and all the
airlines, because we'll be in the middle of one of our busy seasons,"
Plumb said.

Initial cost estimates for the project, including demolition of the old
concourse and subsequent construction of Concourse C, were about $230
million.

Dave Eberle, director of airport construction for the state Department
of Transportation and Public Facilities, said the price tag now is about
$408 million for the entire project. That includes the cost of
demolition and rebuilding of Concourse C, a major remodeling of
concourses A and B, and upgrades to the "air side" of Concourse C, such
as new jetways for passengers, a new fueling station and other "apron
work."

During construction, seismic upgrades were added to the plans,
increasing costs by about $100 million. Planners also determined that
much more space would be needed for security operations, which also ran
up the overall cost.

When it opens, Concourse C will have nine passenger gates and a
ticketing area, a security checkpoint, airport offices and several new
vendors.

Funding for the new facility will come from airport revenue bonds, paid
for by airport tenants, including airlines and vendors.

Cliff Argue is an Alaska Airlines executive and chairman of an airport
airline affairs committee representing 26 carriers doing business at the
Anchorage airport. He said the overall project is moving along well.

"We've been working through all those funding issues in the last year,"
he said.

The state-owned airport pays for itself through a variety of means,
Argue said. Airlines pay landing fees and rent, concessionaires pay
their leases, and all revenue is collected into a "general register"
that repays the construction bonds, he said.

Expenses for the new concourse may increase passenger fares in the
future, Argue said.

Meanwhile, the new structure is emerging, with workers pouring concrete
floors, running wiring bundles and hustling to button up the job in time
for summer.

"Our contractors are working very hard in there, along with the state,
to be ready whenever they are. We're excited and looking forward to the
opening," he said.

Plumb is confident the pieces eventually will fit together.

"All of the concessions are not going to be open when the new terminal
is opened," Plumb said. "But many of them are ready."

At the far western end of the terminal, there will be a new cocktail
lounge called Legends.

"There is a Chili's Too restaurant coming in. I'm told it will be the
largest Chili's Too in any airport in the United States," Plumb said.
"We'll have a Starbucks and a Sourdough Mercantile franchise, and the
Hudson Group will have several newsstands and stores."

Attached Photo:

Construction workers work on the new concourse of the Ted Stevens
Anchorage International Airport Thursday. After years of delays and cost
overruns, construction of the concourse will be finished in time for the
bulk of this summer's tourist traffic.

742190.jpg