Sky Harbour has taken out two ground leases for the development of its home base campuses at Bradley International airport in Connecticut and at New York's Hudson Valley Regional airport. Both campuses will address the large and growing hangar deficit impacting the New York metro area.

Chairman and CEO Tal Keinan says: "These are among the best-managed airports in the US and serve the country's top business aviation market. Sky Harbour is honoured to be joining their communities and is committed to maximising the long-term benefits of a Sky Harbour campus to Connecticut, Dutchess County and the New York metro area."

The Sky Harbour campuses will be developed on approximately eight acres at Bradley International and seven acres at Hudson Valley. Both will be a catalyst to create hundreds of local jobs and generate significant economic benefits to their local communities. These campuses will offer 'the best home base in business aviation' to house corporate and privately-owned business jets in private hangars, with line services dedicated exclusively to based tenants, offering 'the shortest time to wheels-up in business aviation'.

Connecticut Airport Authority executive director Kevin A Dillon, AAE, says: "As we diversify our partner portfolio and bolster aviation activity at Bradley International airport, we are pleased to have partnered with Sky Harbour Group to drive further growth at the airport. Its multi-million-dollar private investment will benefit our region for years to come by creating jobs and making our airport even more attractive to the corporate and private aviation market."

Dutchess County executive William FX O'Neil adds: "Sky Harbour brings unique and differentiated benefits to our county, the Hudson Valley Region and New York state. We appreciate the spirit of partnership and professionalism that the Sky Harbour team has brought to this relationship. We value the company's track record of delivering on its commitments and look forward to working together to enhance our Hudson Valley Regional airport's value to our community and to the business aviation community."

The company is also updating certain of its estimates and completion schedules pertaining to two active construction projects at Denver Centennial airport, Phoenix Deer Valley airport, Dallas Addison airport and Chicago Executive airport.

Sky Harbour campuses are constructed in accordance with its SH16C prototype hangar design, which is subjected to constant refinement and improvement processes. In consultation with the company's structural engineers and an independent peer review, Sky Harbour will be fortifying certain structural elements in the SH16C prototype in order to enhance stability, safety and standardisation to accommodate and exceed the nation's highest wind, snow and seismic load requirements.

The Denver and Phoenix campuses have already gone vertical; both will be retrofitted with additional pre-engineered metal building components in order to achieve the same structural effect. The cost of this retrofit is projected to be approximately $3.2 million at Phoenix and $2.0 million at Denver. The additional work is expected to extend the completion date at Phoenix from March 2024 to June 2024, and at Denver from June 2024 to August 2024.

As vertical construction at its Dallas campus has not yet begun, the company anticipates significantly lower budget impact there, albeit a similar schedule delay. All subsequent campuses, including Chicago Executive, Hudson Valley, Bradley, Miami Opa Locka Executive phase 2, Phoenix phase 2 and Denver phase 2, will be planned and constructed in accordance with the enhanced SH16C and (future) SH34 designs. Completed campuses at Sugar Land Regional airport in Houston, Nashville International and Miami Opa Locka employed an earlier and different prototype designs and do not need retrofitting.

In Q1 2024, Sky Harbour intends to contribute in cash the amount necessary to mitigate the increased costs associated with these modifications from unrestricted funds on hand at the corporate level.