July 2024

LAX APM Resolves Claims, New Start Date

Los Angeles International Airport’s Automated People Mover. Source: Los Angeles World Airports and LAX Integrated Express Solutions

The board of Los Angeles World Airports (LAWA) approved a $400 million budget increase for the LAX Automated People Mover (APM) project. The board action also set a new delivery date for the project in late 2025, and approved a settlement for long-outstanding cost and delay claims for the project concessionaire, LAX Integrated Express Solutions (LINXS). The total claims settlement, when combined with additional amounts previously approved by the board, amounts to $550 million.

The settlement is a major milestone for the APM project, which is nearly complete but which has come under strain in recent months as cost and schedule relief claims remained outstanding amid what appeared to be a straining relationship between the public sponsor and concessionaire. The settlement will resolve all claims, give the project new schedule certainty, and allow the project team to move forward and address any future issues collaboratively. It will also create a new oversight and escalation process for the project, so future issues can be raised before they impact the project schedule.

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