Details of American Airlines $344 million investment at JFK Airport

Details of American Airlines $344 million investment at JFK Airport
American Airlines announced new JFK Airport expansion with British Airways new tenant at part of JFK redevelopment.
Photo by Jeff Yapalater

Gov. Andrew Cuomo’s office announced a new investment, expansion and lease plan by American Airlines (AA) Terminal 8, at JFK Airport which includes British Airways and Iberia to vacate Terminal 7 and move into Terminal 8.

AA Terminal 8 is the third terminal in the overall JFK Airport “Reimagined” redevelopment plan.

In October, both JetBlue and Terminal One along with their individual investors announced two developments totalling $13 billion dollars. The AA program is smaller in scope but it the third piece in a yet undetermined number in the redevelopment of the airport. The TWA Hotel was the first non-terminal development which is set to open for business in May of this year. Yet to be finalized are plans for a Central Mall, and growth of JFKIAT T4.

At the Port Authority Board meeting on Feb. 14, Port Authority Chief Development Officer Derek Utter presented the board with the proposal. According to Utter’s presentation the plan highlights include:

A $344 million investment by American Airlines and British Airways — $319 million for expansion of Terminal 8 (originally built in 2005) and airside improvements and $25 million for renovation of bathrooms and other customer service improvements; no Port Authority funding; no extension of lease term (expires 12/31/36); the creation of more than 500 direct jobs and more than 750 total jobs.

Improvements include the addition of two new widebody gates; the modification of existing gates to allow for additional widebody flights; paving a portion of “Parcel M” to create three new hardstands with an associated taxi lane to improve gate utilization space; the addition of 70,400 SF to terminal and refurbishes another 57,500 SF; the reconfiguration of the check-in lobby to increase capacity by 25 percent; the improvement of baggage handling system that adds 25 percent capacity to international bag claim; the renovation of existing Terminal 8 bathrooms; the expansion of the fourth level lounge complex to create joint American Airlines/British Airways premium lounges; improving the passengers travel flexibility with 14 daily flights to London from the same terminal.

Timeline for the planned activity:

• Port board approval of Terminal 8 lease amendment

• Terminal 8 Environmental review 2019

• Terminal 8 Construction completed late 2022

• British Airways relocates from Terminal 7 to Terminal 8 Late 2022

• JetBlue takes possession of Terminal 7 site Late 2022

• Initial gates JetBlue (T6 site) and TOGA T1 2023; Full opening 2025.

The resolution was adopted at the meeting and Executive Director Cotton is authorized to enter into a supplemental agreement to amend Amended and Restated Lease No. AYB-085Rwith American.

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