rising
Posts: 166
Joined: Thu May 13, 2010 12:59 pm

Puerto Rico Eyes $1billion Payday From SJU Sale

Wed May 02, 2012 11:42 pm

According to Reuters and Bloomberg, "Puerto Rico officials eyeing a possible $1 billion payday on Wednesday said they had narrowed to two the finalists for a public-private concession to run the Caribbean island's Luiz Munoz Marin Airport for as long as half a century."

"Officials in recession-bound Puerto Rico are looking for a concession of no more than 50 years at the San Juan airport. They also want both improvements worth $40 million to $60 million in the first five years of a contract and longer term investments."

"Puerto Rico's international airport handles just under 9 million passengers a year. It is not living up to its potential, according to officials. Outbound boardings fluctuate between 4 million to 5 million annually, or half capacity, and only half its facilities are in use."

http://www.reuters.com/article/2012/...rico-airport-idUSL1E8G2K2420120502

So what "improvements" do you think we might see, and who will benefit?
If it doesn't make sense, it's because it's not true.
 
B6JFKH81
Posts: 1982
Joined: Thu Mar 16, 2006 6:35 am

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 12:01 am

Quoting Rising (Thread starter):
So what "improvements" do you think we might see, and who will benefit?

I was just down in SJU last week (actually, I was in BQN, PSE and SJU last week for work) and I know B6 is moving over to Terminal A in 2 weeks (and the terminal is looking really nice!!!). So, maybe once B6 is vacated there is a chance to re-do some of the other terminal areas? I didn't find the terminals to be that bad, honestly, but the check-in areas where B6 is currently could use a new flow. But with MQ spooling down there and AA scaling back, I'm not sure what's going to be happening down there......
"If you do not learn from history, you are doomed to repeat it"
 
chepos
Posts: 5961
Joined: Sat Dec 02, 2000 9:40 am

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 12:23 am

The government of Puerto Rico is going to get the money and misuse it as they usually do. The current governor and his merry band of thugs are buffoons and are completely useless. In my very personal opinion terminal B,C and D are all a disgrace, half the time A/C is not working, half of the lights are out and don't get me started on the bathrooms. Very poor first impression for the tourist when they arrive to the island. La Autoridad de los puertos is a joke and I am glad someone is taking over the airport.

Regards,

Chepos
Fly the Flag!!!!
 
Tan Flyr
Posts: 1579
Joined: Sat Aug 19, 2000 11:07 pm

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 12:24 am

I go down there regularly for business..and each year it seems as if service has shrunk a bit..particularly AA.

PR has a huge unemployment problem..probabaly close to 25% or more as well as underemployment. Ther tourist industry which accounts for over half the economy is still hurting from the US recession as wellas tourists taking thier dollars elsewhere.

Overall, when Puerto Rico can deliver a superior vacation experience, at the right cost, the tourists will come back. But not until then.

With the shutdown of the HOVENSA refinery at St. Thomas, fuel costs will go up for everything in PR as all fuels will have to be tankered from either Houston or Louisiana refineries. More pressure on their already fragile economy.
 
Beeski
Posts: 53
Joined: Wed Dec 27, 2006 10:03 pm

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 12:52 am

Quoting tan flyr (Reply 3):
With the shutdown of the HOVENSA refinery at St. Thomas, fuel costs will go up for everything in PR as all fuels will have to be tankered from either Houston or Louisiana refineries. More pressure on their already fragile economy.

The refinery is acutally on St. Croix of the US Virgin Islands.....we are depressed/not happy about it.
I agree that SJU airport needs some improvements/care.
I think PR is kidding themselves that they will be able to generate that amount of $$.
 
compensateme
Posts: 1687
Joined: Wed Jan 28, 2009 4:17 am

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 2:08 am

Quoting tan flyr (Reply 3):
Overall, when Puerto Rico can deliver a superior vacation experience, at the right cost, the tourists will come back. But not until then.

Given the emergence of many resorts in Cancun, Cabo, the D.R., etc. competing for visitors at both the low- and high-end over the past 10+ years, I don't foresee this happening anytime soon.

[Edited 2012-05-02 19:11:49]
Gordo:like this streaming video,Sky magazine,meals for sale at mealtime-make customer satisfaction rank so high at UA
 
PRAirbus
Posts: 687
Joined: Wed Apr 20, 2005 11:59 pm

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 3:45 pm

Could not agree more with "CHEPOS", the corruption will take care of that money and will be misused and "stolen". PR is in a really bad position regarding tourism, losing flights/routes (AA), crime, poor tourism infrastructure, etc. The government of Puerto Rico is always dreaming about "new airlines" coming in instead of catering to the ones like AA that could have maintained service and keep people employed. It is a shame. There are other markets outperforming Puerto Rico. Aguadilla/Borinquen should have been a great region to open all-inclusive resorts and use BQN as a "hub" for European charters. US labor laws unfortunately limit the success of the all-inclusive concept in Puerto Rico.
 
compensateme
Posts: 1687
Joined: Wed Jan 28, 2009 4:17 am

RE: Puerto Rico Eyes $1billion Payday From SJU Sale

Thu May 03, 2012 6:57 pm

Quoting PRAirbus (Reply 6):
PR is in a really bad position regarding tourism, losing flights/routes (AA), crime, poor tourism infrastructure, etc. The government of Puerto Rico is always dreaming about "new airlines" coming in instead of catering to the ones like AA that could have maintained service and keep people employed

PR's biggest challenge is getting people to want to go there, not getting airlines to add/maintain service. In the 2000s, Cancun's tourist traffic nearly doubled whereas PR experienced a 25-30% drop (depending on the source). Economic realities make it difficult for PR to compete with Cancun, the DR, etc. for tourists, who see their money go farther at all spectrum elsewhere. The challenge is getting people to want to go to PR, knowing they'll have to pay extra. And it very well could be low-fares or low-cost charters are necessary to stimulate traffic. But asking AA to maintain service levels when people are traveling elsewhere is not to solution.
Gordo:like this streaming video,Sky magazine,meals for sale at mealtime-make customer satisfaction rank so high at UA

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