Contact: Wednesday, October 13, 1999
Mayor Rudolph W. Giuliani today took another step in his efforts to dramatically improve John F. Kennedy International (JFK) and LaGuardia Airports for both New York residents and the millions of tourists and business people who visit the City every year.
The Mayor and New York City Economic Development Corporation (EDC) President Michael G. Carey today announced that EDC, on behalf of the City, has issued a Request for Proposals (RFP) seeking a private operator to replace the Port Authority on the termination of its current airports lease in 2015, and to assume management, operation and development of JFK and LaGuardia airports on behalf of the City. The selected company would initially act as a consultant to EDC on airport matters until the lease expires in 2015, or is terminated earlier.
"New York deserves world-class airports, and this plan is another important step towards rebuilding JFK and LaGuardia Airports to make them safer, faster, and more pleasant experiences for travelers," said Mayor Giuliani. "They're among the busiest airports in the world, and they should be among the best. Instead, they've suffered from decades of neglect. We're losing passengers, we're losing business, and we're losing prestige because of the Port Authority's management.
"The Port Authority has proven time and again that JFK and LaGuardia are not its priorities," the Mayor continued. "We have a vision of clean, safe facilities that are easy to reach. We want to see both airports as places that are welcoming, not stressful. We want to foster lower-cost flights, and economic development. Further, for years the Port Authority has been diverting to its New Jersey operations millions of dollars in revenue generated by JFK and LaGuardia. In 1998 alone, approximately $150 million went to subsidize the New Jersey PATH train instead of funding improvements for our airports," the Mayor concluded.
In a nationwide survey of passengers ranking the nation's 36 largest airports, LaGuardia placed 31st and JFK placed 35th. Another study of 31 international airports in the United States, Canada and Europe, ranked JFK dead last.
"Private airport management has worked around the world," said Anthony P. Coles, Senior Advisor to the Mayor. "It saves taxpayer dollars and improves the quality of service, and it's past time to institute it here. We're seeking companies with the experience, foresight, and talent to begin a long-term relationship that has one bottom-line goal, making JFK and LaGuardia the best airports in the country. Until the existing lease ends, the private operator also will provide airport-related services, planning, and consulting and will fight for critical improvements."
John S. Dyson, Chairman of the Mayor's Council of Economic Advisors, said, "The Mayor's actions today will ensure that the City's lease with the Port Authority will end in 2015, if not earlier. Over the years, the Port Authority has diverted millions of dollars, generated by the City's airports, to fund improvements at Newark International airport and subsidize the New Jersey PATH train and its bus terminal in mid-town. The diversion of these funds has resulted in a drop in passenger and cargo traffic at the City's two airports and created an additional loss of millions of dollars, which could have been reinvested to make further improvement at the airports. For too long the City's airports have been neglected while the Port Authority has disproportionately favored development at Newark Airport. As a result of the Mayor's announcement today, the Port Authority should see the writing on the wall and negotiate an early termination of its lease and the return of the City's airports."
The privatization of JFK and LaGuardia would constitute the two largest airport privatizations in the United States. Mayor Giuliani noted that recent airport privatizations, including privatization of the Indianapolis International Airport, as well as of Heathrow International Airport and Gatwick Airport in London, have demonstrated that private operators often can do a much better job than bureaucratic government authorities when it comes to running airports.
Approximately 31.6 million passengers use JFK annually, while LaGuardia ranks among the 20 busiest passenger airports in the United States, serving more than 21 million passengers annually.
In February, the Mayor took the initial step in reclaiming the two airports by issuing a Request for Expressions of Interest (RFEI) to determine the level of interest in contracting now to manage the City's airports in 2015. The City received nine responses to the RFEI, including responses from the major airport operators in the world.
Responses to the RFP are due by 2:00 PM on January 14, 2000. Individuals requesting more information, or a copy of the RFP, should contact Cheryl Elmore at 212-312-3969, or e-mail their name, address and telephone number to info@newyorkbiz.com and type AP-1199 in the subject line of the e-mail.