An age of revitalization: US airport infrastructure opportunities

 
It is no surprise, then, that investing in airport infrastructure remains a priority across the US. And while many smaller, conventionally procured projects are underway, some of the most transformational projects are being done by leveraging private sector capital and know-how. Terminals are being entirely redeveloped, and new terminals are being built to accommodate more travelers and elevate the overall travel experience. Other airport-related projects—such as those involving new cargo facilities, automated people movers, consolidated rental car facilities and other parking facilities, and road infrastructure in and around airports—offer opportunities for developers, equity investors, debt providers, construction contractors, and operators as well.

Recently completed projects

Major successes in this sector have included:

• Terminal B at LaGuardia Airport – The Port Authority of New York and New Jersey partnered with LaGuardia Gateway Partners to design, build, finance, operate, and maintain a new 1.3 million square foot terminal at LaGuardia Airport in New York. The $4 billion terminal opened in 2022 and has won numerous awards since then, including UNESCO’s Prix Versailles for the world’s best new airport terminal.
• Terminal 1 at John F. Kennedy Airport – The Port Authority partnered with New Terminal One, a consortium of financial sponsors, to build a new, all-international Terminal 1 at John F. Kennedy Airport (JFK), which is a key component of the Port Authority’s $19 billion transformation of JFK. The first gates at this 2.4 million square foot terminal are scheduled to open in 2026. The overall cost of the project is $9.5 billion.
• Terminal 6 at JFK – The Port Authority partnered with JFK Millennium Partners, a consortium led by Vantage Group and including American Triple I (a certified minority-owned investor, owner, developer, and manager of infrastructure assets), RXR (an innovative New York real estate investor and developer), and JetBlue Airways, to design, build, finance, operate, and maintain a new 1.2 million square foot terminal, which will occupy the site of the former Terminal 6 and Terminal 7. This $4.2 billion project is another key component of the transformation of JFK.
• SkyLink at Los Angeles International Airport – Los Angeles International Airport (LAX) partnered with LINXS, a consortium comprised of Fluor, Balfour Beatty, ACS, and Hochtief, to design, build, finance, operate, and maintain a new elevated train featuring a 2.25-mile guideway with six stations. The construction of this $5 billion project is expected to be completed in 2026 in time for the 2028 Summer Olympics.
• LAX Car Rental Center – LAX selected LA Gateway Partners, a consortium led by Fengate Capital Management and PCL Investments, to design, build, finance, operate, and maintain a new 6.3 million square foot consolidated rental car facility with 18,000 parking stalls and a quick turnaround facility for the fueling, washing, and light maintenance of rental car vehicles. This $2 billion project was opened earlier this year ahead of the 2026 FIFA World Cup.

Upcoming projects

Upcoming projects to track include:

• Revitalization of Washington Dulles International Airport – Late last year, the US Department of Transportation issued a request for information seeking design concepts and construction and financing proposals for the development of completely new terminals and concourses to replace or build upon the existing main terminal and satellite concourses at Washington Dulles International Airport. This project appears to be a priority for the current administration.
• South Suburban Airport Project – In 2024, the Illinois Department of Transportation issued a request for qualifications for the development of a new airport about 35 miles south of downtown Chicago. The procurement remains ongoing, with the goal of selecting a private sector developer to deliver the project pursuant to either a public-private agreement or a pre-development agreement as a form of interim agreement to be entered into prior to or in connection with a public-private agreement.

The private sector has a major role to play in revitalizing all types of infrastructure, including in the airport space. Government agencies are under pressure to deliver projects quickly despite significant capacity constraints, both in terms of human resources and capital. The success of many recent projects, the tremendous need for upgrades to all aspects of airport infrastructure, and the openness of the current administration to involving the private sector in all manner of public infrastructure development and redevelopment efforts point to ongoing activity in this sector.