The Virgin Islands Port Authority (VIPA) says it remains in talks with major airlines regarding its public-private partnership (P3) programme to redevelop and modernise the territory’s airports, even as they have raised concerns about its affordability.

In a statement on June 8, interim Executive Director Ava Penn said VIPA remains committed to advancing the initiative in collaboration with key stakeholders, including airlines, federal partners and its selected P3 partner SkyCity, which was chosen through a competitive procurement process.

“VIPA understands that our community has a vested interest in the Territory’s airports,” Penn said.

She said the authority has maintained engagement with carriers for several years, including early planning work dating back to 2018 for Cyril E King Airport and subsequent expansion projects at Henry E Rohlsen Airport.

“Since December 2022, VIPA has engaged in numerous ongoing discussions with the airlines regarding the Authority’s P3 initiative, and we highly value their participation and input,” Penn said. “We encourage all parties involved in the process to take part in the final stages of planning and delivery of this transformative project.”

Penn said VIPA plans to join SkyCity in hosting a series of public workshops in the coming months as it moves closer to finalising agreements and preparing for broader public engagement on airport upgrades.

Local media house, Virgin Islands Consortium reported airlines, which include American Airlines, Delta Air Lines, United Airlines, JetBlue, Southwest, Cape Air and Sun Country, argue that VIPA’s full-scale P3 approach would significantly increase airport charges and risk reducing air service to the territory.

The report said in the June 3 letter to Governor Albert Bryan and Penn, the USVI Airlines Airport Affairs Committee said its members remain opposed to any model that is not economically viable and are urging VIPA to consider a scaled-down $300 million capital programme instead of the larger P3 framework.

The airlines also said they were not adequately consulted during the early design of the P3 structure and raised concerns about transparency and affordability, warning that the proposed tariff-based system could make USVI airports more expensive than competing regional hubs.

While sharply critical of the current proposal, the carriers said they remain open to further talks with VIPA, but only if the authority is willing to consider an alternative approach to airport development.