Virgin America and Los Angeles World Airports are planning a small-scale renovation of the carrier’s Terminal 3 at Los Angeles International Airport, records show.
Virgin plans to grow from six gates to eight, according to a report shared recently with the Los Angeles Board of Airport Commissioners. Virgin’s new lease will be for $30,255,000 and cover a five-year period. The airline will receive 42,913 square feet of space.
Virgin will make about $20 million of improvements to the space, and the landlord, Los Angeles World Airports, will eventually pay the airline back for most of the cost. This is standard practice at LAX.
I wouldn’t call this a major overhaul. Here are the plans, taken directly from the airport board report.
Virgin Renovations – include branded improvements, unique to Virgin’s operational needs, such that it is not reasonable to assume that another airline could use the improvement without modification. The Virgin Renovations are estimated to cost $610,000 and will be solely Virgin’s responsibility.
Non-Proprietary Airline Renovations – include non-proprietary improvements to Terminal 3 that are usable by any airline operating in Terminal 3 and located in parts of Terminal 3 classified as “airline areas”, including a proportionate share of building improvements allocated to “airline areas” of the terminal. The Terminal 3 Airline Renovations are estimated to cost $13,752,000 which LAWA will purchase upon completion of renovation components.
Terminal Renovations – include improvements that are allocated to the “public areas” of Terminal 3 that are being implemented during the course of the overall project including a proportionate share of building improvements allocated to “public areas” of the terminal. Terminal 3 Renovations are estimated to cost $4,973,033. The Terminal Renovations will be acquired by rent credits to Virgin over the term of the Lease, including annualized accrued interest on the outstanding principal for the value of such improvements at a total cost not to exceed $5,386,000.
This pretty minor stuff in comparison to United, which is receiving $400 million in upgrades, and Southwest, which is getting a $500 million plus overhaul.