New terminal project at Atlanta airport may be suspended

The construction of a new $1.6 billion international terminal at the Atlanta airport could be suspended in the coming weeks, as bond sales to fund the project have not reached the target of $600 million required. On Thursday, the chief executive of the airport blamed the credit crunch for the poor sales in municipal bonds.

“Investors are not interested in our debt,” said the general manger of Hartsfield-Jackson Atlanta International Airport, Ben DeCosta, in comments to the Associated Press.

DeCosta remarked that the debt rating of the airport is “A+,” considered to be investment grade.

“I’m going to have to suspend the work in a matter of months,” said DeCosta, commenting about the possibility of not reaching the required financing levels. If work is suspended, nearly 300 jobs would be lost, he added.

The airport manager went on to say that federal assistance is being sought through an assistance package that would benefit not only the airport but also municipal governments. With automakers, banks, cities and states looking for government assistance during the worst economic conditions in decades, he believes that it could be difficult to secure funds for the terminal construction.

“I like to gamble, but I don’t know how to gamble this game,” DeCosta noted. “You just don’t know.”

Construction on the airport’s third terminal project began during the summer and was scheduled for completion in 2011 or 2012. Officials report that over $300 million has already been spent on the work.

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