SkyCity Responds to USVI Airport Controversy

M.A. Dworkin

USVI - The SkyCity U.S. Virgin Islands (USVI) Airport Redevelopment Project is a major Public-Private Partnership (P3) initiative between the Virgin Islands Port Authority (VIPA) and SkyCity—a consortium comprising Aecon Concessions, Tikehau Star Infra, J. Benton Construction, and Avports.  

Project Scope

The $350 million initiative covers comprehensive infrastructure, operational, and passenger-experience upgrades across the territory's two main gateways:  

Cyril E. King Airport (STT) – St. Thomas

• Terminal Expansion: Full renewal and multi-story expansion of the terminal building, tripling functional capacity up to 900,000 passengers annually.  

• Passenger Processing & Facilities: Modernized ticketing hall, expanded TSA security checkpoints, and enlarged Customs and Border Protection (CBP) processing zones.  

• Passenger Boarding & Concessions: Addition of 9 passenger jet bridges for direct boarding, expanded hold rooms, upgraded seating, and enlarged retail/concession spaces.  

• Core Systems: Fully integrated automated baggage-handling systems, alongside modernized mechanical, electrical, plumbing, HVAC, and fire/life-safety infrastructure.  

Henry E. Rohlsen Airport (STX) – St. Croix

• Facility Upgrades: Enclosed, air-conditioned domestic check-in and ticketing areas, new rental car/ticket counters, and refreshed exterior facade.  

• Passenger Amenities: Addition of 3 passenger boarding bridges, commuter holdroom renovations, and enhanced security zones.  

• Infrastructure: Upgraded baggage handling, replaced mechanical/electrical systems, and architectural enhancements reflecting USVI culture.  

Steve Nackan’s Response & Key Arguments

Steve Nackan (President of Aecon Concessions and SkyCity leadership) has actively defended the P3 model against criticism—specifically pushing back on airline industry concerns regarding fee increases and proposed alternative "low-cost" plans:  

• Validity of Costs vs. Airline Alternatives: Nackan directly challenged airline projections that claimed a stripped-back redevelopment would save money. He noted that conceptual airline alternatives lack rigorous engineering, design development, and market testing. As he put it, "A concept can be made to look inexpensive. Delivering it is another matter entirely."  

• Risk Transfer & Fixed Pricing: He emphasized that the P3 framework locks in fixed-price, date-certain contracts. Private capital absorbs financial and construction risks that would otherwise fall on VIPA, local taxpayers, or local government debt.  

• Necessity over Delay: Nackan highlighted that both terminals operate well past their intended capacity and engineering life cycles. Deferring comprehensive modernization leads to escalating maintenance costs, severe operational bottlenecks, and degraded traveler experiences that harm the territory's tourism-driven economy.  

• Job Protection & Retention: Addressing labor concerns, Nackan confirmed that existing VIPA airport employees will retain employment security during the transition, moving into professional operational structures with expanded career and technical training opportunities.