LaGuardia Airport - Commercial Due Diligence
About the brand
The Port Authority of New York & New Jersey is embarking on a major modernisation and redevelopment programme to enable LaGuardia Airport to meet the needs of the 21st Century. A New Terminal B will replace the existing Central Terminal Building, which is over 50 years old.
In May of 2015, LaGuardia Gateway Partners (LGP), a consortium made up of the Vantage Airport Group, Meridiam Infrastructure and Skanska, were announced as the preferred proposer to undertake the redevelopment and operations of LaGuardia Airport’s aging Terminal B. LGP are responsible for designing, building, financing, operating, and maintaining the new terminal as part of a 35-year lease.
Having previously worked with Vantage on airport assets both in Canada and the UK, Pragma were commissioned as the specialist commercial advisor to the consortium to assess the non-aeronautical potential from the current commercial facilities at the terminal, and to assist with the design of the new commercial layout. Pragma were also asked to evaluate and determine the optimal category mix and commercial positioning, and to model the forecast commercial return for the new terminal.
Following the announcement of LGP as the preferred bidder, Pragma were retained by the consortium to assist them in assessing the impact on the non-aeronautical revenues as a result of the final negotiations through to financial close.
WHAT WE DID
- Conducted a programme of strategic passenger research to provide commercially focussed insight concerning the profile of the passengers using the terminal and their commercial requirements
- Undertook a detailed review of the existing retail and catering facilities and their commercial performance to highlight areas of opportunity and commercial potential in the context of the passenger forecasts and global benchmarks
- Worked closely with Vantage Airport Group and the architectural team to help define a future commercial proposition and layout to maximise commercial revenues whilst providing an environment which is easily understood and puts the passenger at ease, with consideration of the optimum space utilisation pre and post construction of the new terminal
- Developed forecasts for the commercial revenues through the transition from the current commercial offer, the construction period of the new terminal, and to the end of the full concession period as inputs into the successful investment bid
LaGuardia Gateway Partners began operating and redeveloping the terminal on 1 June 2016. A key element in Governor Cuomo’s masterplan to revitalise New York’s transportation infrastructure, this $4 billion project is one of North America’s most significant public-private partnerships. The result will be a state-of-the-art terminal facility that reflects and celebrates LaGuardia’s importance as New York City’s airport, a key hub for domestic air travel and a major source of employment.