Private consortium to build, operate new airport facility.

The Port Authority recently signed a deal installing private sector management at one of Kennedy Airport's busiest and best-known terminals - The International Arrivals Building. The move clears the way for construction of a brand-new, $1.2 billion terminal that will be one of the region's principal gateways for travelers from abroad.

The agreement signed May 13th means that all of the terminals at John F. Kennedy International Airport will be in private hands for the first time in the airport's history. Under the agreement between the Port Authority and the consortium, known as JFK International Air Terminal LLC (JFKIAT), the firm will build and operate a new, three-level terminal featuring a striking, light-filled design, more gates for arriving aircraft, improved flow for travelers and a dramatic mall offering appealing shops and restaurants.

JFKIAT combines the resources of LCOR Incorporated, an accomplished national real estate firm; Schiphol USA, the American affiliate of the firm that operates the widely acclaimed Schiphol Airport in Amsterdam; and Lehman Brothers JFK, an affiliate of Lehman Brothers Inc. JFKIAT Executive Committee members Hans Mohrmann, Kurt Eichler and Brian Prince represented JFKIAT at the signing.

Lewis M. Eisenberg, chairman of the Port Authority, said "This magnificent new terminal will give the region the world-class international gateway it deserves. The Port Authority's partnership with JFKIAT represents the largest public/private partnership ever created at an airport. The project is financed entirely by the private sector, through the largest bond sale in Port Authority history - $1 billion worth of special project bonds."

Charles A. Gargano, vice-chairman of the Port Authority, said "This project is another important step in the privatization of Port Authority facilities. We reached out to the private sector to draw on its expertise in delivering top-quality services to our customers. The new terminal will accommodate millions of travelers a year and strengthen the region's commanding position in tourism and international business. The winning team, JFKIAT, includes firms recognized around the world for their expertise."

The name of the terminal was recently changed from the International Arrivals Building to Terminal Four, as part of a new system of terminal names designed to make the airport easier to use.

Mohrmann of JFKIAT said, "Schiphol is famous for operating one of the most efficient, comfortable and profitable airports in the world. We now intend to bring the same management expertise that makes Amsterdam one of the highest-rated travel facilities in the world to JFK's Terminal Four."

In addition to Schiphol, LCOR and Lehman JFK, the JFKIAT team includes Fluor Daniel, Inc., as construction program manager; Morse Diesel International as construction manager; TAMS Consultants, Skidmore, Owings & Merrill and Ove Arup & Partners as architects of the new terminal; and Communication Arts as retail designer. Lehman Brothers, Inc., and Citicorp Securities, Inc., serve as the project's financial advisors.

Site preparation work will begin immediately, with full construction scheduled to start in the fall. All construction work is expected to be completed by fall 2001.

Terminal Four, built in 1957 in an age of propeller-driven aircraft when most people traveled to Europe by boat, now houses 45 airlines serving more than six million passengers annually. If isolated as a stand-alone facility, the terminal would be the country's fourth-largest international airport, following Miami, Los Angeles and the other terminals at JFK.

The new facility will feature centralized check-in areas, as well as expanded customs and immigration facilities for arriving passengers. The retail center will include well-known retailers offering merchandise at prices competitive with off-airport stores.

With 16 gates and room for expansion, the new terminal will accommodate significantly increased flight capacity, allowing for continued growth at JFK.