The Port Authority of New York and New Jersey—along with a number of private contractors and operators—has done wonders with the revamp of LaGuardia Airport on Long Island, and Terminal A at Newark Airport in New Jersey. Passenger services like retail and dining have been intrinsic to the new look, and JFK is now in the process of getting the same treatment.
Skytrax—which runs the most prestigious annual awards for global airports—has recognized Newark’s Terminal A as the world’s best new airport terminal this year, having earlier given it its highest rating of five stars. This follows LaGuardia’s Terminal B taking Skytrax’s award for the best new airport terminal globally in 2023.
The back-to-back wins for the Port Authority indicate that its approach using public-private partnerships to refresh its transport assets is paying dividends. Users of the tired and aging infrastructure at John F. Kennedy Airport hope, eventually, to see the same standard of shops, restaurants, and other facilities they routinely find in airports in Europe and Asia, in their home hub.
JFK has been quietly transforming since January 2017, when a ‘vision plan’ was announced. A strategic framework to completely redevelop and expand facilities and infrastructure has comes with a heft price tag of close to $20 billion. About $15.6 billion of that is privately financed.
Terminal 1 tenders
May marked a key month for the project. The latest tenders were announced in May by retail expert Unibail-Rodamco-Westfield (URW) Airports and The New Terminal One (NTO), a consortium developer. The terminal is being built on sites currently occupied by JFK’s existing T1, the recently closed T2, and former T3.
The NTO’s $9 billion first phase is expected to open in 2026 but competitive evaluations for the Food Hall and Travel Essentials tenders have begun, marking a major upgrade to the commercial offer. Dany Nasr, CEO of URW Airports described them as “two of the most anticipated” in North America. They follow a duty-free tender launched in March, and, together, the idea is to create an experience “that amazes our guests” Nasr said.
Similar to the shopping strategy at the nearly complete $1.5 billion expansion of Terminal 4, led by Delta Air Lines and JFK International Air Terminal (JFKIAT), Terminal 1 will be looking to NYC for inspiration.
Jennifer Aument, CEO of The New Terminal One, said the dining and retail experience would “reflects the cultural richness of our great city, while driving opportunities for local business participation.”
The Food Hall concession is structured as a single package of one landside and five airside units for a partner that can bring a long-term vision highlighting some of the best and most famous New York brands. NYC names will occupy at least 50% of the food and beverage (F&B) offer.
Travel Essentials has more flexibility as it will feature a mix of global, US, and New York merchandise. Here, a 5% minimum of local product placement is required. The concession is a single package split into three landside locations and four airside.
When completed, NTO will be JFK’s biggest terminal and will only be processing international traffic. Hence the focus on New York for arriving and departing tourists to get a first feel of the city, and a last chance to experience it when they leave.
Going local at Terminal 8
May also saw the start of the $125 million commercial redevelopment of JFK’s Terminal 8 where the Port Authority, in partnership with American Airlines, URW Airports, and Holt Construction, marked the start of construction last week. A showcase of local Queen’s artists was on display.
The program by JFK T8 Innovation Partners, a joint venture led by URW, will completely redesign and expand the concessions program. This will include new dining, retail, and duty-free shopping, as well as a performance space, and follows a $400 million expansion of the terminal, completed in November 2022.
For the various ongoing terminal developments, the Port Authority has prioritized what it calls world-class dining and retail, as well as some eye-catching public art. The formula has been a winner at LaGuardia and it is expected to have the same impact at JFK.
Port Authority executive director Rick Cotton commented: “Across JFK, we are focused on creating a sense of place unique to New York with locally-owned concessions operating alongside national brands, plus public art that reflects the culture and traditions of the communities around the airport.”
The local impact of the wider overhaul of JFK’s infrastructure is tangible. Queens Borough president, Donovan Richards Jr., described it as a game changer. He said: “Hundreds of local businesses have secured nearly $1 billion in contracting opportunities at the facility. That will be on display at Terminal 8 as well, as we get started on this massive commercial redevelopment.”
The Port Authority’s chairman Kevin O’Toole has doubled down on the value of its F&B, retail, and art formula. “The commercial redevelopment and commitment to public art is a critical step toward achieving our vision for a new JFK Airport that will once again be ranked as one of the best airports in the world.”
In the latest Skytrax global airport ranking for 2024, JFK just made the top 100 in 93rd position, down from 88th in 2023. The New York hub still has a hill to climb.
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