MAYOR GIULIANI ANNOUNCES NEGOTIATIONS WITH
POTENTIAL NEW MANAGER OF CITY AIRPORTS

Mayor Giuliani announced today that the City of New York and the New York City Economic Development Corporation (EDC) are entering into negotiations with BAA USA, Inc. over the terms of a contract for the long-term management, operation and development of the City's two airports-John F. Kennedy International Airport and LaGuardia Airport.

If an agreement can be reached, the City and EDC intend to enter into a contract with BAA, under which BAA would initially provide oversight and consulting services for the airports. Under the terms of the contract, BAA would assume the management and operation of the airports when the City's lease with the Port Authority of New York and New Jersey, the current operator, expires in 2015, or earlier if the lease is terminated before 2015.

"New Yorkers, and visitors to the City, are not getting the kind of service they deserve-and that a great City deserves-from our airports," Mayor Giuliani said. "The Port Authority has proven itself unable or unwilling to maintain JFK and LaGuardia as first class airports.

"That's why the City is very excited to be working with BAA USA, Inc. We have every expectation that, under new management, New York City's airports will thrive in a manner that befits their status as gateways to the Capital of the World."

In February, 2000, in response to a Request for Proposals (RFP), the City and EDC received proposals from four firms with considerable experience operating and managing world-class international airports: BAA USA, Inc.; Schiphol USA, Inc.; Hochtief Airport GmbH; and Unique Zurich Airport.

The City and EDC established an evaluation committee to consider the proposals. The members of the evaluation committee are Anthony P. Coles, Deputy Mayor for Planning, Education and Cultural Affairs; John S. Dyson, Chairman, Mayor's Council of Economic Advisors; Michael Carey, President, EDC; Seth O. Kaye, Vice-President, EDC; and Alan B. Friedberg, board of directors, Metropolitan Transportation Authority. The committee is being advised by Wilbur L. Ross, Jr., of W. R. Ross and Co., and the law firm Winthrop, Stimson, Putnam & Roberts.

After considering the written proposals and interviewing all four proposers, the Evaluation Committee has decided that the City and EDC should begin negotiations with BAA USA, Inc. to see if an agreement can be reached on the terms of a contract for consulting services and, at the termination of the existing Port Authority lease, management of the airports. If an agreement with BAA cannot be reached, the Evaluation Committee will then consider whether to proceed with one of the other three proposers.

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