Refinancing brightens future for
JFK Airport redevelopment
Vision Plan undergoes review-vaccine will also help confidence
The JFK Redevelopment
plan is currently being reviewed
but activities continue
with concessions, contractor
application training,
workforce consultations,
and Advisory Council meetings
meet to keep the progress
moving forward. Because
of the pandemic, the
full scale momentum has
slowed with the Port and investors
working together to
access the scope and time
line of this important infrastructure
project.
Cuomo in October 2018,
with the goal to prepare for
a projected influx of 100 million
annual passengers by
2050, as well as to streamline
the airport’s disparate
network of buildings by demolishing
several of the
older isolated terminals and
building larger, more connected
facilities in their
place. Now, however, there
are many different estimates
how the actual millions
of travelers there will
be going forward.
The main components
of the redevelopment were
complete rebuilding of the
airport including Terminals
1, 5/6 with a large renovation
and expansion in T4,
with roadways and a Central
Transportation Center.
JFKIAT T4 had submitted
a proposal to enlarge
and modernize Terminal 4
at JFK. This too however
has been put on hold, but the
terminal is making changes
just the same wit the completion
of the Amex Lounge,
introduction of improved security
equipment, terminal
and airline wide Covid-19
protection, CBP improvements,
baggage handling
system, health and safety accreditation
and many more
changes while the larger redevelopment
process is being
worked out.
The operator of John F.
Kennedy International Airport’s
busiest terminal,
JFKIAT, said its passenger
numbers might not return
to pre-pandemic levels until
2024, leading it to scale back
or delay a planned $3.8 billion
refurbishment and expansion.
AIRPORT V 10 OICE, DECEMBER 2020
The terminal has
had to cut its on-site workers,
furlough some vendors,
and had voluntary pay cuts
by many of the management.
As a result, JFKIAT has
also just refinanced its financial
obligations through
a successful $1 billion bond
offering to adjust to the reduced
traffic of travelers in
the terminal, especially international
travel refinance
debt from previous construction
which took place
a few years ago. According
to James May, the terminal
operator’s chief financial
officer, said in a Dec. 1
statement: “The bond offering
has proved to be a phenomenal
success with significant
investor appetite,
confirming investors’ belief
in the recovery of the New
York market and the overall
strength of the credit.” May
also said that “we will continue
to work with our partners
to determine the best
path forward for the planned
redevelopment project. “
This and discussions
with the Port Authority are
ongoing to access the return
to passenger volume which
dropped over 75% since
March 2020. In the bond offering
statement, pre-pandemic
growth could occur
by 2022 with a worse case
of 2024 which is echoed by
Delta and JetBlue comments
over the past months of refinance
debt from previous
construction. In terms of
volume growth, Moody’s, in
a November credit opinion,
stated that a pessimistic scenario
is more likely because
of the terminal’s high exposure
to international travel.
For now, only the smallest
project, American Airlines
Group Inc.’s almost $400
million redevelopment of
Terminal 8, is moving ahead
since dollars were allocated
before the pandemic crisis.
However all these traveler
volume estimates were
in place as the world awaited
a vaccine.
Now that one vaccine is
being shipped across the
country with others following
shortly, these estimates
may trend to a more positive
note as quarantines are
reduced, and inoculation
leads to a herd immunity.
The Port is working with
elected officials, notably Congressman
Meeks and the
State Senators Schumer and ..
Letters have been sent to
all Congressional leaders
detailing the financial state
that the Port is in and the
inability to move forward
with the full JFK redevelopment
ambitions. Congressman
Meeks whose district
includes JFK Airport has
been a strong supporter for
the project citing the success
of the infrastructure
project would benefit the
entire borough of Queens,
boost minority participation
and provide jobs to
the entire work force. He is
fighting for state and local
funding that would bring
needed dollars to NYS, the
Port and the airport community.
Port Authority was given
$450 million in government
aid, earmarked specifically
for its three airports. Even
so, the agency contends it no
longer has the funds to back
its portion of the project.
During the summer at
a press briefing n front of
Terminal 5 at JFK Airport,
We are asking Congress to
provide the Port Authority
with direct financial assistance
to offset its massive
revenue losses so we can
ensure critically important
capital construction projects
can move forward,”
said Rick Cotton,
Other terminal developers
of Terminal 1 and T5/6
are also reviewing the scope
of the plan. According to one
management of Terminal
=One, they are still very interested
in the growth plan
but are working with the
Port and financiers to come
up with a good solution
given the nature of the bond
market at this time. Perhaps
the success of the JFKIAT
offering will be a good example
that others can use.
Right now, it is important
for the Port Authority to receive
Congressional funding
to mitigate the capital
budget for 2021.
“Without federal assistance
construction at La-
Guardia and John F. Kennedy
Airport and other
improvements could very
well be stopped or delayed.”
The agency has requested
PANYNJ Exec. Dir. Rick Cotton
$3 billion from Congress to
cover its deficit, which it
calculated based on projections
that it will continue to
lose revenue into 2022.
A lot of the forward movement
is tied to the success of
the vaccine and the comfort
level of the
financial market and its
appetite for much needed infrastructure
that will help
build up a economic surge
in 2021.
h t t p s : //w w w. s e c .
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JFK Vehicle Procedures
Revised access onto the AOA
In an effort to reduce the potential for
vehicles tailgating/piggybacking at the vehicular
access points
to the Air Operations Area (AOA)/Secured
Areas/SIDA, the Port Authority has
implemented the following revised procedures:
• A traffic control device (i.e. cone, stop
sign) shall be place behind the first vehicle
requesting
access to the AOA
- The security guard at the post shall
place the traffic control device behind the
vehicle.
- Once the first vehicle has accessed the
AOA and the Delta barrier is fully raised,
the
guard shall remove the cone and permit
the 2nd vehicle to move forward for screening.
Vehicles that require access to the
AOA/Secured Areas/SIDA are now required
to:
- Make a FULL STOP after clearing the
Delta barrier
- Check in the rear view/side view mirror
that the Delta barrier has been raised
•-The driver must visually confirm that
the barrier is fully raised. Once this is
done, the driver is permitted to proceed
into the AOA/Secured Areas/SIDA.
-The driver is responsible for ensuring
that the barrier is fully raised before
processing into the AOA/Secured Areas/
SIDA.
An individual failing to follow these
procedures will be subject to a breach
of rules and possible revocation of
unescorted access privileges to the AOA.
For questions regarding this bulletin or
any of its contents, please email: mpeter@
panynj.govteven .
/panynj.gov