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LAX’s people mover is delayed yet again. we looked into the reasons why
The tracks under construction for the automated people mover train.
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Patrick T. Fallon
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AFP via Getty Images
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If you’ve been waiting for LAX’s automated people mover to open to save you from the loop’s traffic hell, be prepared to wait some more.
Fitch, the credit rating agency, says that a “strained relationship” between the airport and the private contractor building the train is causing significant delays for the project.
It’s now estimating an opening date of October 2025.
What’s going on?
The automated people mover train has been years in the making. The L.A. City Council first approved the $4.9 billion deal in April 2018.
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Travelers were originally told it would be starting in 2023, so this isn’t the first time the project has faced delays.
The report from Fitch says the current delay stems from disagreements between Los Angeles World Airports (LAWA) and the contractor building the train, LINXS.
It outlines several sticking points:
Project timeline: Both parties have yet to agree on an extension of the project’s “long stop date.” That’s the final deadline given by the airport for the contractor to complete construction.
“Basically, they just don't want the project to kind of be in construction for perpetuity," said Jeffrey Lack, a senior director at Fitch. "So that gives an absolute end date where then the concession could be terminated if it goes beyond that date."
If the project doesn’t get an official extension, LINXS could be at risk of defaulting. But don’t get too worried just yet — Lack says changes to these dates are normal. And they expect it to get approved in a couple of months.
The credit rating agency’s role
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Fitch Ratings, an independent third-party credit agency, looks at the likelihood of debt repayment — in this case, the $1.2 billion bonds that have financed the people mover — by keeping track of what's going on in the construction.
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They get regular updates from LINXS, including the date passengers can expect service to start. The Oct. 2025 delay came from LINXS’s February report.
- Technology access: The report highlights an issue with “ongoing information requests related to LAWA’s IT network.” Fitch says LINXS needs this information in order to develop the test procedures it must run before the train can open.
- Compensation: They also need to figure out updated payment milestones. With the new timeline, the two parties will have to determine when LAWA will fulfill its payment obligations, ideally without refinancing a major loan that’s funding the project.
What happens next
An airport spokesperson declined to discuss the project’s new timeline.
“The Department is in active discussions with the Automated People Mover (APM) Contractor to resolve outstanding claims and has no additional information at this time,” said Jessica Merritt, a communications director at LAWA.
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Fitch will continue to monitor the automated people mover project, which could get a better or worse credit rating.
They downgraded the project in January to where it currently stands at a “BB+.” Where it goes next depends on how quickly the issues can get resolved.
“These claims have taken very long to get resolved, which is why we downgraded the ratings, but it’s not uncommon,” said Anubhav Arora, a director at Fitch. “I think if they do not resolve the claims and we risk a default here, then it could be more than one notch downgrade.”
If the rating drops, the average traveler likely won’t notice much of a difference in the short-term. But if you’re interested in the automated people mover, these credit reports can indicate if more delays are on the horizon.
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