At the June meeting of the Southern California Development Forum Panel, industry experts came together for a forward-looking discussion on airport transformations, post-covid recovery, funding strategies, and how airports are working to increase inclusivity and community engagement. From terminal upgrades to preparing for the 2028 Olympic Games, this dynamic panel explored how airports are planning for the next decade of growth.

Moderated by Patti Harburg-Petrich, Design Executive at Swinerton, the panel featured TJ Chen, Deputy Director of Sacramento International Airport, Emery Molnar, Deputy Executive Director of Los Angeles World Airports, and AJ Rastegar of PM Technologies, a management consultant that specializes in aviation.

Long Term Visions: LAX and SMF

Los Angeles International Airport is currently in the middle of a $30 billion modernization program. Molnar described how LAWA is focused on improving the passenger experience through terminals, clearer wayfinding, and new road systems. A major priority is reducing congestion and confusion in the Central Terminal Area in preparation for the 2028 Olympic Games. Other upcoming projects include renovations at Tom Bradley International Terminal, new arrival and departure areas, and the redesign of Terminal 5.

 “It's challenging. This has to be finished significantly before the Olympics, but it's a great opportunity for us to actually tear down a terminal and do it right. So, we're really excited about this opportunity,” he explained.

At Sacramento International Airport, a $1.4 billion capital program, SMForward, focuses on meeting future demand and improving campus walkability. Chen explained that SMF is transitioning away from automated people movers and instead investing in pedestrian bridges, terminal expansions, and a consolidated transportation center. Other major projects include a 5,500-space parking garage and the Concourse B terminal expansion with six new gates.

Covid-19 Recovery and Its Impact on Development

Rastegar shared insights from the airline perspective, emphasizing that while airlines have largely recovered from the drop in travel during COVID-19, many capital projects that were paused are now being revisited.

 “I think everyone in the industry would agree that COVID was probably the most impactful event in our industry, probably since 9/11,” he explained. “I still think that the airlines are in recovery mode. Granted, there's a lot of work being done right now on the right side of that rebound.”

Projects that were already funded or under construction during the pandemic, such as Delta’s SkyWay terminal at LAX, were able to be accelerated because of the then-lower passenger volume.

Public and private airport clients are now catching up on delayed work, with renewed focus on passenger-facing upgrades like lounges and ticketing areas, as well as operational improvements in technology and infrastructure.

Funding Approaches

Funding strategies were also a key part of the discussion. SMF uses a combination of bonds, short-term financing, and federal assistance. Notably, Sacramento was the first U.S. airport to secure a TIFIA loan under the Bipartisan Infrastructure Law. This low-interest loan helped finance pedestrian improvements and may also support future projects like the Concourse B expansion.

LAWA primarily uses bond financing, leveraging its revenue to support long-term capital plans. Molnar noted that while federal grants still play a role, especially for airfield and roadway projects, new grant conditions have introduced uncertainty.

Molnar also highlighted how LAWA’s MATOC has significantly expedited their procurement process. For example, bringing on the Terminal 5 team took less than four months, compared to the year or more it would’ve taken through traditional city council approvals. With roughly $4.2 billion allocated across the $5 billion MATOC bench, LAWA is able to use alternate delivery methods like CMAR, design-build, and progressive design-build, allowing multiple projects to move forward in time for the 2028 Olympics.

For firms not currently on the MATOC bench, Molnar encouraged outreach to existing bench contractors to explore opportunities as subcontractors or subconsultants. LAWA recently launched a public-facing MATOC webpage listing upcoming task orders, shortlisted firms, and apparent awardees to help non-bench firms stay informed and involved.

Community Inclusion and Procurement Strategies

All panelists emphasized the importance of inclusive hiring and business practices. LAWA requires 30% local hiring through its Project Labor Agreement and scores proposals based on small business participation and workforce development. Sacramento uses a modular procurement model to allow more firms to participate in smaller, targeted contracts. Chen also noted how SMF reflects its community.

 “Sacramento County is a very diverse community,” he said.  “we're try hard to create diversity in our workforce, not just a campus workforce, but also contracting consultant workforce.”

Looking Forward

Both airports plan to continue investing in digital tools such as biometric screening, parking guidance systems, and AI-powered traffic management. These improvements are aimed at creating more efficient, user-friendly airport experiences.

The panel closed by encouraging industry partners to monitor procurement opportunities, stay informed on upcoming solicitations, and engage with community-focused development initiatives.