Press Release Article


Date: Sep 30, 2010
Press Release Number: 67-2010

Approves incentive program for new destinations and $2 million for terminal expansion

The Port Authority Board of Commissioners today authorized two actions that will help position Stewart International Airport for both immediate and future growth.

First, $2 million in planning work for the future expansion of Stewart International Airport’s terminal that will provide for a multi-functional facility to accommodate the processing of international passengers and allow for increased domestic passenger activity.

Second, to boost airline service to the airport immediately, the Board also authorized a two-year air service development incentive program to entice passenger airlines and charter tour operators to initiate non-stop service to new markets.

The planning and design for a phased terminal expansion is expected to be completed by December 2011. The first phase will expand the north side of the terminal by 25,000 square feet to allow the simultaneous processing of international and domestic passengers. A terminal expansion is necessary to construct an adequate federal inspection service facility and to increase the terminal’s overall capacity beyond its current limit of one million annual passengers. The other phases of the project include customer service upgrades and additional improvements to create a fully functioning inspection facility.

The incentive program is available to any new or existing carrier or charter tour operator that provides scheduled non-stop passenger service to any new destination not currently served from Stewart Airport. The program is designed to help mitigate start-up risks and provide marketing support during the critical first year of service. Carriers will receive credits up to $525 per turn for ground handling service charges and $3 per outbound seat, not to exceed $150,000 per destination, for marketing and advertising support in the first year of non-stop service. The costs associated with this program are expected to be offset with the additional revenue generated by the additional flights and passenger traffic.

Both actions taken today are expected to provide the Hudson Valley region with additional economic benefits including the creation of construction and airline carrier jobs, as well as increasing airport revenues for the agency.

“Our commitment to Stewart International Airport is unwavering. Since taking on the operation of this facility in 2007, we have worked hard to create a vision of how this airport, with its convenient location and supportive community, can become a viable option for this region in the years to come,” said Port Authority Chairman Anthony R. Coscia.

“These actions continue to affirm the Port Authority’s combined strategy of short- and long-term investment to make Stewart International the region’s hassle-free, economic gateway for travelers and cargo,” said Port Authority Executive Director Chris Ward.

“With an underserved market in the mid-Hudson Valley and northern New Jersey, we believe investments in the future of this airport will ensure its success as both a regional airport and an economic engine for the region,” said Port Authority Deputy Executive Director Bill Baroni.

“Stewart Airport is an important driver of economic activity in Orange County and the entire Hudson Valley, so making investments that lay the groundwork for additional, affordable choices for flyers and better facilities for passengers is incredibly important,” said Schumer. “Before companies decide to locate in the region, they often look at how accessible it is – therefore every dollar we invest in Stewart is a dollar we invest in job creation.”

“This is welcome news for Orange County and the Hudson Valley area,” said U.S. Senator Kirsten Gillibrand. “The Port Authority’s plan will provide needed infrastructure improvements for Stewart Airport and attract new airline services for travelers in the region. Now more than ever we need investments in our transportation infrastructure to provide jobs and stimulate long-term growth for the 21st Century.”

"The Port Authority's continued investment in and commitment to Stewart Airport will help this important regional asset reach its full potential. As the economy rebounds and airline passenger traffic slowly recovers, the improvements and planning will set the stage for this facility to grow into an economic engine for the Hudson Valley. The incentives to passenger carriers will help to increase available flights and destinations, and provide expanded travel options,” said Congressman Maurice Hinchey.

"I am thrilled that the Port Authority has decided to expand the terminal and create an air service development incentive program at Stewart Airport," said Congressman John Hall, a member of the House Committee on Transportation and Infrastructure, Subcommittee on Aviation. "This decision will increase Stewart's ability to be a regional economic engine and create more jobs in the Hudson Valley. I applaud the Port Authority's actions and will continue to work closely with them to achieve these results."

“This certainly proves that the Port Authority has a commitment to Stewart International Airport, Orange County and the Hudson Valley in making Stewart International the best possible regional airport, and I applaud them for that,” said Orange County Executive Edward A. Diana.

During the past three years since taking over the airport, the Port Authority has invested millions of dollars in Stewart to realign and rehabilitate roadways, replace roofs, provide adequate parking and improve the taxiway edge lighting system. Customers can see visible changes with the addition of Customer Care Representatives, new way-finding signs, the addition of baggage carts, extra seating in the baggage claim and gate areas and expanded bus service to the Beacon Train Station.

The Port Authority has also put in place a Stewart Sustainability Plan to ensure environmental stewardship of the airport, including the recently announced agreement to purchase environmental attributes from the Taylor Biomass Energy project to the electrified passenger bridges and taxiway LED lights; the Port Authority is committed to reduce the airport’s environmental footprint.

And just a few weeks ago, Apple Vacations joined the Stewart family and the Port Authority hopes to build upon that success. A Stewart Redevelopment plan is being developed to create a roadmap for the specific needs needed to meet passenger demand milestones. The plan will include the identification of infrastructure and capital development programs aligned with passenger growth, highlight acquisitions that support future development and line up capital planning efforts for facility requirements.
The Port Authority of New York and New Jersey
Jen Friedberg, 212-435-7777

The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan.

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