Airport suspends $100M project due to impacts of COVID-19

Glacier Park International Airport on Friday made the decision to pause a $100 million terminal expansion project originally slated to start construction this year.

Due to drastic passenger volume decreases as a result of the COVID-19 outbreak, the airport chose to push back the project, which was on track to expand the terminal, holding rooms, security lanes and circulation areas, as well as add a newer baggage system at the airport that had been experiencing significant passenger increases over the past few years.

The design and development phase of the project will continue this summer, but construction likely won’t start until spring 2021 or later, Airport Director Rob Ratkowski said.

“We’re tentatively hoping to start this time next year,” Ratkowski said, but he emphasized, “That’s all dependent on things coming around.”

As daily passenger volumes have dropped from 500 to 600 travelers during normal spring conditions to about 20 passengers in the past few weeks, Ratkowski said he realized, “this is not the right time to move forward with a big construction project.”

He said traffic at GPIA went from running at “100 miles an hour to full stop in three weeks.”

And the biggest factors that played into the decision to suspend the project were the financial strains on those funding the project because of the virus outbreak. Ratkowski explained air carriers are paying for a large portion of the $100 million project, but these companies have been besieged by canceled trips and widespread refunds.

“Their financial situation has obviously changed unimaginably in the last month,” Ratkowski acknowledged. “We can’t go to them and put this kind of project onto their rate base.”

Plus, the sudden decrease in travel has created an unfavorable situation in the credit market for airports at this time, which further highlighted the need to postpone the project, according to Ratkowski.

NONETHELESS, HE’S optimistic the project will eventually go forward as planned. He said the airport isn’t currently planning on changing the scope of the massive project in any way.

“This is still the right project for us, it just needs to happen at a better time,” Ratkowski insisted.

He said they are looking into ways to “change the funding mechanisms a little bit,” to keep the project on track. GPIA received $11 million in emergency funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act Airport Grant Program last week, some of which will be put toward the project. The airport is also looking into getting involved in some low-interest loan programs, which Ratkowski pointed out will benefit all of the air carriers at GPIA and the other service providers in the airport.

He explained the project was originally on a fast track because “we thought we had another gigantic summer ahead of us. There was not a moment to lose.”

Now, the coronavirus pandemic has given the airport some breathing room, and Ratkowski said he expects the “heavy work” will likely only suffer a “six-to-nine month postponement.”

“We will continue with those efforts,” he promised.

Reporter Bret Anne Serbin may be reached at (406)-758-4459 or bserbin@dailyinterlake.com.