Investors "Not Interested" In Taking On More Debt

Plans to build a new terminal at Atlanta's Hartsfield-Jackson International Airport may soon fall victim to the current economic crisis, despite the airport's top-notch credit rating.

The Associated Press reports the $1.6 billion project to build a new international terminal faces suspension within a few months, due to the  inability to sell $600 million in municipal bonds to fund the initial stages of the program.

The problem isn't due to lack of interest, or the financial state of the airport; in fact, ATL enjoys an investment-friendly A+ debt rating, according to the airport's general manager, Ben DeCosta.

"Investors are not interested in our debt," he said.

Construction on the new Maynard H. Jackson International Terminal has already started, with over $300 million already spent. The terminal was part of a broader expansion plan that included a fifth runway at ATL, which was completed in 2006.

"I'm going to have to suspend the work in a matter of months" unless funding is obtained, DeCosta added. "I like to gamble, but I don't know how to gamble this game... You just don't know."

ATL officials hope federal assistance may become available through a program to benefit municipal governments. DeCosta says that may be the last option to keep the terminal project going.

"I'm frozen out of the markets," DeCosta said. "I can't go to market for long-term bond financing." About 300 people are now working on the new terminal. Those jobs would disappear if the funding doesn't come through.

If things get much worse, DeCosta added, other improvement programs such as expanded roadways and baggage systems will also need to be shelved until things turn around.

"I have money already out there with people working and if it doesn't look like we can go to market, I would have to determine which parts of the project could continue and which can't," he said.

FMI: www.atlanta-airport.com