John F. Kennedy Airport Terminal 4 Privatization

The Challenge

The successful bidder for the re-development of the International Arrivals Building, Schiphol USA/LCOR retained InterVISTAS to provide business-planning services.

Our Role

InterVISTAS (IVC) provided a turnkey capture and execution strategy for the largest (US$1.4 billion) airport privatization project in the U.S. Amsterdam Airport Schiphol, IVC’s client, was selected to design, build and manage the redevelopment of the 40 year old International Arrivals Building. In the capture and execution stages, IVC provided comprehensive strategic, analytic and business practice advice on all aspects of the project. Areas of particular focus included traffic and financial forecasts, pre-feasibility analysis, regulatory structures, bid preparation, security planning and implementation, user charges, vendor analysis and due diligence, pricing analysis, airline negotiations, marketing, financing advice, bond issuance support and political strategy.

Results

JFK Terminal 4 is the largest airport terminal privatization project in the U.S. Schiphol was selected to design, build and manage the JFK International Arrivals Building (subsequently “Terminal 4”) at New York’s John F. Kennedy International Airport. IVC was retained to advise JFK IAT on development and implementation of the privatization effort. IVC’s role included:

  • Provision of comprehensive analytical, strategic and business practice advice on all aspects of the project;
  • Development of traffic forecasts and pre-feasibility studies;
  • Support for consortium negotiations with the Port Authority of New York and New Jersey;
  • Preparation of feasibility studies in support of $1.2 million bond issuance;
  • Development of ICAO-compliant security plan for terminal operations;
  • Assurance of regulatory compliance with regard to rates and charges policies and airport security;
  • Delivery of due diligence studies and reports in support of contracts;
  • Analysis of pricing methodologies, peak-spreading mechanisms and regulatory strategies;
  • Development of effective strategy for airline negotiations; and
  • Preparation of opinions, discussion memoranda, etc., as required.