Airlines Offer to Pay $40 Million SkyCity Breakup Fee, Urge USVI to Reject $1.2 Billion Airport P3

Airline representatives are urging Virgin Islands tourism and hospitality stakeholders to lobby against the Port Authority’s current airport redevelopment plan, saying carriers are prepared to pay the $40 million breakup fee required for VIPA to walk away from the SkyCity arrangement and instead pursue a phased development plan proposed by the Airlines Airport Affairs Committee. During a Monday night meeting, airline representatives argued that the proposed public-private partnership could dramatically increase the cost of serving the territory, potentially leading airlines to reduce flights or abandon routes. They promoted an alternative plan they say would cost less than $400 million for both airports, compared with an estimated $1.2 billion for the SkyCity P3 arrangement. “The airlines have said we will cover the cost of this,” said American Airlines executive Lorin Carr, referring to the $40 million breakup fee. Carr urged local stakeholders to lobby “the politicians, the people...