Sky Harbour Group Announces Campus Development at Stewart International Airport

Rhea-AI Summary

Sky Harbour Group (NYSE American: SKYH) announced a new lease agreement with the Port Authority of New York and New Jersey for developing a Sky Harbour campus at Stewart International Airport (SWF). The campus will house top corporate and privately-owned business jets in advanced hangars, providing exclusive line-services and minimizing time to departure. This project aims to create and sustain hundreds of jobs, boosting economic benefits for New York State, Orange County, and Stewart International Airport. The SWF campus will be the third Sky Harbour facility in the New York metropolitan area, joining others in Houston, Nashville, Miami, and San Jose. Additional campuses are currently in development or planned. Sky Harbour's CEO, Tal Keinan, highlighted the company's commitment to delivering long-term benefits to local communities, and this project marks the first partnership with MJJ Builders, Passero Associates, Jonah Mandelbaum, and the Red Tail Flight Academy.

Positive

• Execution of a lease agreement for a new Sky Harbour campus at Stewart International Airport (SWF).
• Creation and sustenance of hundreds of local jobs.
• Significant economic benefits projected for New York State, Orange County, and Stewart International Airport.
• Provision of state-of-the-art hangars to house top corporate and privately-owned business jets.
• Exclusive line-services dedicated to based tenants, ensuring minimum time to departure.
• SWF campus will be Sky Harbour’s third facility serving the New York metropolitan area.
• Partnerships with MJJ Builders, Passero Associates, Jonah Mandelbaum, and the Red Tail Flight Academy.

Negative

• Potential delays in the full execution of the lease agreement.
• Financial risks associated with developing a new campus.
• Dependence on the successful completion and operational efficiency of the new campus for expected economic benefits.
• Uncertainty regarding the long-term sustainability of job creation and economic impact.

Insights

Market Research Analyst

The announcement of Sky Harbour Group's new campus development at Stewart International Airport is a strategic move to tap into the lucrative business aviation market in the New York metropolitan area. Business aviation is a niche but highly profitable sector, primarily driven by corporate clients and high-net-worth individuals who value convenience and time efficiency. Sky Harbour’s focus on providing state-of-the-art hangars and dedicated services aligns well with the needs of these clients, who seek quick turnaround times and exclusive services.

Short-term implications include initial capital expenditure for the development of the campus, which might affect the company's cash flow and potentially its stock price. However, the long-term benefits are substantial. The additional income from leasing hangar space and providing services to based tenants can create a steady revenue stream.

Investors should also note the economic benefits claimed by the company, such as job creation and local economic stimulation. While these are positive talking points, the actual impact will depend on successful execution and local community engagement. The project could enhance Sky Harbour's market presence and brand recognition in the New York area, a critical market for business aviation.

Financial Analyst

From a financial perspective, the lease agreement authorized by the Port Authority of New York and New Jersey is a noteworthy development for Sky Harbour Group. Such lease agreements typically involve multimillion-dollar investments and long-term financial commitments. For retail investors, it is essential to consider the capital expenditure required for the development of the new campus at Stewart International Airport. This expenditure could affect short-term profitability but is likely to be a strategic investment for future revenue growth.

The company’s expansion into a high-demand market like New York, which is a top market for business aviation, suggests a solid growth strategy. However, investors should keep an eye on debt levels and overall financial health to ensure the company maintains a sustainable growth trajectory. The expected operational benefits, such as a steady stream of income from renting hangar space and providing ancillary services, could positively impact the company’s future earnings and stock valuation.

WEST HARRISON, N.Y.--(BUSINESS WIRE)-- The Sky Harbour Group Corporation (NYSE American: SKYH, SKYH WS) today announced that the Port Authority of New York and New Jersey (PANYNJ) voted to authorize the execution of a lease agreement for the development of a Sky Harbour campus at Stewart International Airport (SWF), serving the New York Metropolitan Area. Sky Harbour expects the lease to be fully executed in the coming months.

The Sky Harbour campus will offer “the best home base in business aviation” to house the New York area’s top corporate and privately-owned business jets in state-of-the art hangars, with line-services dedicated exclusively to based tenants, offering “the shortest time to wheels-up in business aviation.” The campus is expected to create or sustain hundreds of local jobs and generate significant economic benefits for New York State, Orange County, and the Stewart International Airport.

The Stewart International Airport campus joins Sky Harbour campuses now operating at Houston’s Sugar Land Regional Airport (SGR), Nashville International Airport (BNA), Miami Opa-Locka Executive Airport (OPF), and San Jose Mineta Airport (SJC); campuses in development at Denver Centennial Airport (APA), Phoenix Deer Valley Airport (DVT), Dallas’s Addison Airport (ADS), Chicago Executive Airport (PWK), Bradley International Airport (BDL), Hudson Valley Regional Airport (POU), and Orlando Executive Airport (ORL); and additional campuses soon to be announced.

Tal Keinan, Sky Harbour’s Chairman and Chief Executive Officer, commented, “Sky Harbour’s Stewart International Airport campus will be the third Sky Harbour facility to serve the New York metropolitan area, the nation’s top market for business aviation. Sky Harbour is honored to be joining the PANYNJ community and committed to delivering the long-term benefits of a Sky Harbour campus to the Cities of Newburgh and New Windsor, to Orange County, and to New York State. This project has been driven by Sky Harbour’s invaluable partnership with MJJ Builders, with the guidance of Passero Associates. The SWF project marks Sky Harbour’s first active partnership with Jonah Mandelbaum and the Red Tail Flight Academy. https://www.redtailflightacademy.org”

About Sky Harbour Group Corporation
Sky Harbour Group Corporation is an aviation infrastructure company developing the first nationwide network of Home-Basing campuses for business aircraft. The company develops, leases and manages general aviation hangars across the United States. Sky Harbour’s Home-Basing offering aims to provide private and corporate customers with the best physical infrastructure in business aviation, coupled with dedicated service tailored to based aircraft, offering the shortest time to wheels-up in business aviation. To learn more, visit www.skyharbour.group.

About Stewart International Airport
Stewart International (SWF) is a key commercial and cargo airport serving the New York metropolitan area. SWF also handles a significant volume of corporate, charter, and private aircraft. Located 60 miles north of Manhattan, it offers convenient access to New York City for business travelers. With its range of services and facilities tailored to business aviation, SWF serves as a gateway for companies driving growth across the region. Visit us at swfny.com for additional information.

Forward Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements about the expectations regarding future operations Stewart International Airport. When used in this press release, the words “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of the management of Sky Harbour Group Corporation (the “Company”) as applicable and are inherently subject to uncertainties and changes in circumstances. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. For more information about risks facing the Company, see the Company’s annual report on Form 10-K for the year ended December 31, 2023 and other filings the Company makes with the SEC from time to time. The Company’s statements herein speak only as of the date hereof, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240528665724/en/

Sky Harbour Airport Relations: nszymczak@skyharbour.group

Sky Harbour Resident Relations: asigourney@skyharbour.group

Sky Harbour Investor Relations: investors@skyharbour.group Attn: Francisco Gonzalez

Source: Sky Harbour Group Corporation

FAQ

What is the new development announced by Sky Harbour Group at Stewart International Airport?

Sky Harbour Group announced a new lease agreement to develop a campus at Stewart International Airport (SWF) to house top corporate and privately-owned business jets in state-of-the-art hangars.

What economic benefits are expected from the Sky Harbour campus at Stewart International Airport?

The new campus is expected to create or sustain hundreds of local jobs and generate significant economic benefits for New York State, Orange County, and Stewart International Airport.

How will the new Sky Harbour campus at Stewart International Airport serve the business aviation market?

The campus will offer state-of-the-art hangars and exclusive line-services dedicated to based tenants, ensuring the shortest time to wheels-up in business aviation.

Which other airports have Sky Harbour campuses?

Sky Harbour campuses are currently operating at Houston's Sugar Land Regional Airport (SGR), Nashville International Airport (BNA), Miami Opa-Locka Executive Airport (OPF), and San Jose Mineta Airport (SJC).

What partnerships are involved in the Sky Harbour project at Stewart International Airport?

The project involves partnerships with MJJ Builders, Passero Associates, Jonah Mandelbaum, and the Red Tail Flight Academy.