FAQs

SkyCity is a purpose-built consortium of local and international partners selected after competitive procurement to deliver revamped facilities, operations and commercial services under a P3 framework. Together, the SkyCity team has delivered 41 P3 projects globally and brings a deep presence and understanding of Caribbean infrastructure and aviation markets, as well as US airport development, operations and maintenance.

Aecon Concessions is the lead developer and 50% equity partner, together with 50% equity partner Tikehau Star Infra. Aecon Construction is the lead design-builder, together with local construction partner Benton/Consigli, a partnership between USVI-based J. Benton Construction and Consigli Construction. Avports is the operations and maintenance partner

USVI’s airports are foundational economic assets that are essential to daily life and the long-term success of the Territory. They are gateways that connect people, sustain the tourism economy, and support the livelihoods of families. Tourism represents more than 60% of the Territory’s economy, and at the same time, USVI’s economy is poised to boom with the government administering an unprecedented infrastructure investment program.

USVI’s airports are operating well beyond their capacity and operating life – with outdated systems, equipment and operational deficiencies. Costs increase over time, and the necessary improvements will ensure the short and long-term viability of the airports. Without this comprehensive redevelopment, there are significant risks of continuing and further operational and compliance failures, increasing costs, escalating constraints on operational efficiency, and impacts on passenger experience and long-term economic growth. The costs and risks associated with inaction will only compound with an incremental, reactive approach, which will be more disruptive and expensive for all parties. and community meetings.

Transition phase: All due diligence and planning activities such as environmental and geotechnical assessments, asset and compliance assessments, and wind load studies are complete. With designs reaching completion and community engagement sessions upcoming, operations and maintenance will be assumed first when the P3 advances – followed by commencement of construction activities once financial close is reached.

The P3 model is a globally proven model to deliver critical public infrastructure, especially airports, where private sector innovation, capital and technical integration is a natural complement to public sector accountability and oversight. The P3 structure creates a symbiotic relationship neither the private partner, nor the public sector partner could achieve alone. The P3 model keeps costs predictable under a fixed price with date-certain contracts. The private partner brings private capital and the ability to raise substantial finance – sparing the public sector and the public the debt and tax burden.

VIPA’s modernization program – developed in partnership with SkyCity – was established through a competitive process and structured as a comprehensive redevelopment plan with a defined path to delivery. It integrates design, construction, financing, and long-term operations within a single framework delivered by an experience private developer, builder and operator, providing clarity on scope, accountability for execution, and aligned with the Territory’s long-term needs. Moving forward, working with the private sector’s expertise ensures necessary financing and risk transfer to deliver the project efficiently. terminals and operating and management agreements.

If VIPA did not select a P3 partner, it would have to significantly ramp up its organizational capacity with new staff and outside consultants to manage the project, essentially mimicking what the P3 partner is doing, at a higher cost, and an enormous burden on VIPA to manage the project. VIPA would also have to raise all the financing to pay for the project and take on the financial risk of managing the capital program.

VIPA will maintain ownership of both airports, as well as continue to be the FAA Part 139 certificate holder. VIPA will remain eligible to receive FAA grants and will receive annual rent and other agreed payments from SkyCity. All improvements made during the P3 lease term will revert to VIPA at the end of the leasehold at no additional cost to VIPA or the Government of the Virgin Islands. There will be continual oversight and periodic reviews of the performance of SkyCity by VIPA, and the FAA will continue to perform regulatory oversight and safety inspections. perform regulatory and safety inspections.

Through consultation with VIPA and airlines, the scope of the project has been trimmed to its necessities. Continued underinvestment will drive higher long-term costs. The scope and costs will be independently validated by VIPA and project lenders, ensuring that this investment is appropriate, realistic and aligned with industry standards.

The proposed charges at the outset of the P3 are well below the average in the region. Only once construction is completed will charges be stepped up to pay for the construction work and project debt, and even then, the increased charges will remain within regional benchmarks and a very small portion of overall travel costs. The demand for the USVI remains strong across the region, with record passenger volumes. Markets with sustained demand typically retain and expand air service. Continued growth will place downward pressure on charges.

SkyCity is paying for the project. SkyCity will raise debt and invest equity from its shareholders to pay for the construction of the project and repay the debt and investments through various revenues generated by the airports over the term of the P3. Importantly, the project will not be paid for by the Port Authority, the Government of the Territory or taxpayers. The project will also not be paid for by the airlines; rather, the airlines, as users of the airports, will pay rates and charges to the airport for the utilization of the airfield, terminals and various facilities.

Extensive efforts have gone into tailoring the program to ensure that the USVI remains cost-competitive relative to its peer markets in the Caribbean region. Airports do not set air fares. Air fares are set and charged by airlines based on many factors relevant to their business. However, as users of airport facilities, airlines and other users will be charged for the costs of using the facilities, and that revenue is used to pay for operating, maintaining and upgrading the infrastructure and facilities, including as upgraded and modernized by the project. Accordingly, these costs may become part of airlines and other users’ cost base, and how any change is reflected in fares is up to each individual airline and/or other relevant user – not unlike the way in which airlines handle changes or increases in fuel prices.

Tariffs are a tool all airports have to pay for the costs of airport operations and capital improvement programs, as airports are required to be financially self-sustaining. 

Cost Per Enplanement (CPE) is the average cost per departing passenger that airlines pay to an airport to operate there. It is a metric used to compare the cost of doing business at different airports. Fees charged to use the airport must be increased to ensure adequate coverage of necessary and compliant operations and maintenance costs and infrastructure modernization.   

Even with the new fees to pay for the airport upgrades, under the VIPA and SkyCity program, the starting CPE is well below relevant Caribbean benchmarks. The VIPA/SkyCity plan adjusts these fees so that the airport stays financially independent. This guarantees that the millions of passengers who pass through our gates are the ones paying for the upgrades and not paid directly by the hardworking people of the Virgin Islands. CPE will vary with traffic – more traffic will reduce it and less will increase it.

VIPA’s plan is to phase in the cost increases – with a modest initial increase at commencement of the P3 to cover operations and maintenance costs and improved service standards. Then, once the project is complete, the rates will increase to pay back the cost to finance and build the project. Initially, we will be on the low end of what other Caribbean countries charge to land at their airports and by the time the project is fully paid for, we’ll remain within the range of Caribbean peer airports and a very small portion of overall travel costs – but we’ll have brand-new, state-of-the-art airports to show for it.

Upon successful completion of the transition phase and achievement of commercial close of the P3 Agreement, the P3 Project will advance, and work will begin towards financial close in parallel with transfer of operations under the P3.  More definitive milestone dates for financial close will be shared closer to the time, but it is expected to occur in Q1 of 2027. SkyCity will share information online (website and social media), through local media and radio, and will meet with the people of USVI to discuss this transformational project.

The project will be carried out through phased construction to maintain full operations and continuity at the airports.  Disruption will be closely managed and kept to a minimum through each phase, utilizing temporary facilities, dedicated passenger walkways and operational segregation for safety

Yes, the enhanced and modernized terminals at both airports will incorporate jet bridges, ensuring a consistent, high‑quality passenger experience across both facilities and providing flexibility to serve the full range of aircraft. There will be nine jet bridges at Cyril E. King Airport (STT) and three at Henry E. Rohlsen Airport (STX).

The Cyril E. King Airport (STT) Airport will undergo a comprehensive renewal and modernization, and the program at Henry E. Rohlsen Airport (STX) is focused on the necessary investments to address critical infrastructure, operational, and regulatory needs. The project is being sized to ensure equitable investments across the two airports, to support existing passenger volumes and projected growth, while remedying current conditions in core airport systems and passenger-processing areas, including boarding bridges, hold rooms, restroom capacity, HVAC, electrical and plumbing systems, life safety and structural elements, circulation and passenger flow, and baggage handling and security screening/TSA areas. The scope is driven by the need to comply with applicable local building code requirements and relevant FAA, TSA, CBP, and fire/life safety standards, and to replace or modernize outdated infrastructure that no longer meets current operational requirements.

Cyril E. King Airport (STT)

• Full terminal expansion, renovation and modernization
• Addition of nine jet bridges for smoother boarding
• Fully integrated baggage and handling systems for efficiency
• Enhanced experience and circulation with modernized access points, ticketing hall, TSA and CBP process and holding rooms
• Improved operational efficiency through advanced technology, security, mechanical, electrical and plumbing systems
• Enhanced concession and retail spaces with more seating and traveler amenities
• Enhanced sustainability, weather and resiliency features
• Architectural improvements to integrate USVI culture and sense of place

Henry E. Rohlsen Airport (STX)

• Addition of three passenger boarding bridges
• Enclosed and refreshed exterior departure and ticketing area façade
• New ticket and car rental counters
• Enhanced security infrastructure and commuter holding rooms
• Modernized baggage and handling systems for efficiency
• Improved operational efficiency through mechanical, electrical and plumbing systems
• Architectural improvements to integrate USVI culture and sense of place

Cyril E. King Airport (STT)

• Water conservation: Water-efficient systems including low-flow fixtures, leak detection, and smart metering. Maximize water reuse and stormwater management.
• Energy efficiency: High-efficiency HVAC systems, lighting, and controls. Smart building systems and monitoring to track performance and enable continuous improvement over time.
• Sustainable materials & resources: Prioritizing use of durable, locally, sourced and low-impact materials for lifecycle performance and to reduce embodied carbon and resource consumption.
• Resiliency: Building envelope components are designed to resist damage and water infiltration due to climate events.
• Waste management & circularity: Comprehensive waste management program focused on reduction, reuse, and recycling during construction and operations.
• Materials management: Hazardous materials management program in alignment with environmental and health regulations.
• Environmental protection: Spill prevention and response measures, containment systems, inspection protocols, and emergency response procedures with training for staff and tenants.
• Environmental & sustainability management system: Implemented and aligned with international best practices.
  
  

Henry E. Rohlsen Airport (STX)

• Waste management & circularity: Comprehensive waste management program focused on reduction, reuse, and recycling during construction and operations.
• Materials management: Hazardous materials management program in alignment with environmental and health regulations.
• Environmental protection: Spill prevention and response measures, containment systems, inspection protocols, and emergency response procedures with training for staff and tenants.
• Environmental & sustainability management system: Implemented and aligned with international best practices.

The respective investments at the two airports are scaled to meet their individual needs and are equitably apportioned based on their respective traffic volumes. The design and upgrades at each airport will honor the distinct histories and cultures of the islands. There are several economic factors that were taken into consideration to finalize the designs and level of investment at each airport. Key considerations included the regional economic environment and tourism market, as well as the number of airlines that fly in and out of each airport, the number of flights that operate from each airport, and passenger numbers to ensure proportionate investment relative to volume.

The two programs are not comparable. The partial program proposed by the airlines is not based on completed design, due diligence, or market-tested pricing, it uses materially understated construction assumptions and excludes critical scope that will be unavoidable once work has started. It only takes care of a few immediate upgrades but puts off the heavy lifting for later. The cost estimates they use are about half of what construction actually costs on our islands right now. If we go with this half-measure, our airports will stay congested, and the burden of fixing the rest will fall on our shoulders a few years from now, when it will cost even more.

On the other hand, the comprehensive VIPA/SkyCity plan is a complete overhaul. It gives us facilities that can handle today’s passenger volumes and are built strong enough to withstand extreme Caribbean weather. It is not ostentatious, focuses on the critical elements, and ensures the job is done right the first time.

During the transition phase, VIPA and SkyCity undertook a thorough analysis to ensure the project was affordable while meeting the needs of USVI. At St. Croix, upgrades will not be limited to only mechanical and electrical upgrades. As outlined above, the project will provide the level of focused improvements required for a safe, sustainable, competitive, modernized and resilient airport while supporting future growth. This program is focused around meeting the existing capacity and needs of St. Croix’s airport, with options for future expansion based on traffic growth.

Terminal enhancements will start at both STT and STX immediately at Financial Close. We are working towards the successful completion of the transition phase – which will be followed by financial close. Anticipated completion dates for each airport will be identified when the construction schedules are finalized. At a high level, we expect a four-year construction program.

We are working collaboratively with VIPA and all stakeholders to provide an informational and transparent process for public feedback and encourage anyone interested in the project to attend community engagement sessions, as well as utilize various channels including SkyCity’s website (skycityvi.com) and social media (@SkyCityAirports). We will also be active on radio stations throughout the project. General inquiries can be submitted to info@skycityvi.com.

SkyCity has hired several local residents. For construction, we are partnered with USVI-based Benton/Consigli, who will provide skilled tradespersons and important local knowledge. Through this partnership, we will utilize a majority local workforce. For operations, SkyCity extended employment offers to all VIPA aviation staff at the airports in St. Croix and St. Thomas and employee transition continues. All project partners have demonstrated commitments to recruit extensively from the local workforce.

One of the goals of the P3 is to maintain continuity of employment for airport employees and enable professional development opportunities through training and other programs. SkyCity and VIPA continue to work collaboratively to ensure a smooth transition of employees, with a strong focus on employee continuity and workforce stability throughout the process.

There are a growing set of opportunities to join the SkyCity team in construction, operations & maintenance, and functional service and administration roles. We encourage anyone interested in playing a role in this transformational project to visit skycityvi.com/careers to view the latest opportunities and follow us on social media @SkyCityAirports.

As part of the project, local businesses will continue to have the opportunity to be concessionaires at the airports as we create jobs and entrepreneurial opportunities. SkyCity is excited to integrate local businesses and products into the airport experience, and it extends beyond just airport concessions. We look forward to sharing more about these opportunities as the project advances.

SkyCity is committed to its role as a contributing member of the community through involvement in local events, school and youth initiatives, training programs, engagement with community groups and agencies and other community benefits. To-date, we have proudly supported the following local organizations, as examples:

• The Audi Henneman Legacy Basketball League in St. Thomas, helping empower local youth.
• On St. Croix, we supported the Elmo Plaskett Little League.
• We were also proud to sponsor Team USVI, supporting their journey to play Caribbean Little League Baseball Championship games in Curaçao.