LAX Kicks Off $1.6 Billion Project to Modernize 2 Major Terminals

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Los Angeles International Airport is shown in a file photo on Nov. 23, 2011. (Credit: Kevork Djansezian/Getty Images)

Los Angeles International Airport is shown in a file photo on Nov. 23, 2011. (Credit: Kevork Djansezian/Getty Images)

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A new round of major construction is getting underway at Los Angeles International Airport.

American Airlines and city officials this week held a ceremonial groundbreaking for a $1.6 billion modernization of Terminals 4 and 5.

Among other improvements, the renovation will enable access via a planned automated people mover that will connect airport terminals to a consolidated rental car facility and the Los Angeles County Metro light-rail system.

At the end of the project, the city airports department will reimburse American for most of the work under its lease agreement.

Airport commissioners this week also approved a $2 billion, 28-year contract with L.A. Gateway Partners to design, build, finance, operate and maintain the rental car facility, which will consolidate more than 20 rental sites currently in and around the airport.

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