North America: JFK Terminal redevelopment project close to naming preferred bidder

08 March 2018 - 12:00 am UTC

Oaktree Capital and Ferrovial Airports are among the entities that have been shortlisted for JetBlue Airways’ Terminal 5, 6 and 7 redevelopment project at New York’s John F. Kennedy International Airport, three sources told Inframation.

JetBlue Airways is considering a DBFOM for the development of an integrated complex that will link the three terminals. The preferred bidder is expected to be selected shortly, said those same sources.

Inframation understands that final bids were submitted in early February. The preferred bidder will win the right to negotiate a final agreement with the Port Authority of New York and New Jersey (PANYNJ), the airport’s operator.

JetBlue issued an RFQ on 21 July, 2017, with responses due on 6 September.

As reported, Oaktree remains in the midst of a USD 3bn fundraise for Oaktree Infrastructure Fundwhich has seen the single fund split into Oaktree Transportation Infrastructure Fund and Oaktree Energy Infrastructure. A fourth source that Oaktree could be looking for an experienced airport operator such as Munich International Airport who is also looking at this project.

Munich International Airport had earlier won an operations maintenance and concession (OMC) contract for Newark International Airport for its USD 1.85bn Terminal One project.

Oaktree, Ferrovial and JetBlue all declined comment on the situation. Port Authority of New York and New Jersey referred all questions to JetBlue.

In January 2017, New York Gov. Andrew Cuomo indicated that private capital would play a significant role in the proposed USD 10bn redevelopment of the airport. Cuomo, who said the airport had fallen behind other world-class airports, said the redevelopment would cost an estimated USD 7-8bn, with another USD 2bn in estimated costs to improve highway access to the airport. 

A consortium of four airlines has partnered with Carlyle Group to extend Terminal 1. Delta Airlines’ Terminal 4 also has expansion plans. The terminal is owned and operated by JFKIAT, which is owned by Schipol USA.