FAQs

In March of 2024, the Virgin Islands Port Authority (VIPA) Board selected our consortium following a competitive bidding process to join with the Port Authority in a P3 to redevelop the USVI’s airport terminals. The project is currently in a transition phase that involves substantial work between SkyCity and VIPA including design, construction planning and permitting, employee transition, airline engagement, financial and commercial business activities, operations and maintenance, legal and project documentation, regulatory matters, and stakeholder communications and outreach. This process will facilitate the development of design plans that best reflect the unique needs of both airports.

A public-private partnership will mean that both airports receive needed infrastructure upgrades without placing a capital debt burden on VIPA or the Government of the Virgin Islands. The competitive P3 process will ensure that the USVI gets a best-in-class airport developer and operator while remaining in compliance with FAA regulations and safety requirements.

We are committed to working collaboratively with VIPA and local communities to provide an informational and transparent process for public feedback and will provide information throughout the process utilizing various means. For example, our standalone website; regular updates via radio/print/social media; and community meetings.

Yes, 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. 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.

The redeveloped terminals will include an optimal mix of jet-bridge and stair access to accommodate all types of aircraft utilizing the airport facilities.

SkyCity will be responsible for the financing, design, permitting, and construction. Once the project is completed, they will assume operations and associated risk, including all operations and maintenance expenses. None of the risk is on the public or citizens. There will be Key Performance Indicators included in the lease and operating agreement. 

No, the airports will not be privatized. VIPA has entered into a partnership with SkyCity to modernize and improve both airports. VIPA has oversight over SkyCity. VIPA will be partnering with SkyCity and they are providing funding to modernize and improve the airports in exchange for a long-term lease of the terminals and operating and management agreements.

Yes, SkyCity is integrating local businesses and products into the airport experience, and it extends beyond just airport concessions. Local businesses will continue to have the opportunity to be concessionaires at the airports as we create jobs and entrepreneurial opportunities. 

There will be Key Performance Indicators that will be included in the Lease and Operating & Management Agreement. There will be annual reviews of the performance of the private partner by VIPA. The FAA will continue to perform regulatory and safety inspections.

Upon successful completion of the transition phase, financial close is expected in 2025. Further information about the construction timeline will be available following financial close.

Yes, SkyCity partners have demonstrated that commitment in past projects globally. For construction, SkyCity has partnered with St. Croix-based J. Benton Construction who will deliver important local knowledge and skilled tradespersons. Through this partnership, SkyCity will utilize a majority local workforce. Local businesses will continue to have the opportunity to be concessionaires at the airports as we create jobs and entrepreneurial opportunities.

Every employee will be offered an opportunity to transition into the new operations. SkyCity and VIPA will work collaboratively to ensure a smooth transition of employees. Some employees will be able to remain with VIPA based on their work assignments, while other employees whose work assignments are airport specific will be offered the opportunity to transition to SkyCity. 

SkyCity is committed to becoming contributing members of the community through involvement in local events, school and youth initiatives, training programs, engagement with community groups and agencies, and other community benefits. We are already in the process of engaging with community groups and organizations and those efforts will only accelerate as we move forward. We also have a track record of community contributions when we work on these kinds of programs around the world. It’s an important element of what we do.

VIPA will assume ownership of any improvements, take over operations, and select a new private partner to complete the project.

VIPA will receive annual rent payments and will share in airport revenues. Short and long-term maintenance at both airports will be paid for by the private partner during the lease term. SkyCity is responsible for capital improvements at both airports during the lease term.

A private partner that participates in this project will collect airport fees and rents as revenue. The private partner will be responsible for all operation and maintenance expenses and will also pay a ground lease and percentage rent on facility leases to VIPA. The private partner will enter into a lease agreement with VIPA.

Differences include: Puerto Rico’s P3 utilized the FAA’s Airport Investment Partnership Program, which allowed the government to receive a substantial up-front payment in exchange for a long-term lease. Puerto Rico’s P3 required the transfer of the Airport’s Part 139 operating certificate to the private partner, and the P3 was subject to an extensive FAA notice and hearing. 

Examples include: LaGuardia Airport and John F Kennedy International Airport in New York; Newark Liberty International Airport in New Jersey; Multiple terminals at the Los Angeles International Airport in California; Gulfport Airport in Alabama; Luis Munoz Marin International Airport in Puerto Rico; Dallas-Love Field Airport in Texas; and Kansas City International Airport in Missouri.