Sky Harbour Group Secures Approval to Expand Hangar Development at New York Stewart International Airport
Sky Harbour Group Corporation (NYSE: SKYH, SKYH WS) has taken a significant step forward in its long-term growth strategy with the Port Authority of New York and New Jersey (PANYNJ) authorizing the execution of a lease amendment that materially expands the company’s development footprint at New York Stewart International Airport (SWF). The approved amendment increases Sky Harbour’s leased development area from 16 acres to 26 acres, enabling the company to substantially scale its hangar campus and enhance operational efficiency at one of the most strategically important business aviation markets in the United States.
The expanded site is expected to add approximately 150,000 square feet of additional rentable hangar space, while also allowing for a more optimized campus layout. This improved design is anticipated to reduce development costs per square foot, streamline aircraft movements, and improve tenant experience. The expansion reinforces Sky Harbour’s position as a leading developer of dedicated home-base hangars for business aviation and underscores its commitment to investing in top-tier aviation markets with strong, long-term demand fundamentals.
Strengthening Presence in the Nation’s Largest Business Aviation Market
New York represents the single largest home-basing market for business aviation in the United States, driven by a dense concentration of corporate headquarters, financial institutions, private investment firms, and ultra-high-net-worth individuals. Demand for dedicated, high-quality hangar infrastructure in the region has consistently outpaced supply, creating a favorable environment for purpose-built developments such as Sky Harbour’s Stewart International Airport campus.
Tal Keinan, Chairman and Chief Executive Officer of Sky Harbour Group, highlighted the strategic importance of the expansion in the context of the company’s broader growth objectives.
“As detailed during our third-quarter earnings call, Sky Harbour is actively pursuing opportunities to expand the square footage of our existing airport ground leases in the nation’s top markets,” Keinan said. “New York is the premier home-basing market in business aviation, and Stewart International Airport will serve as the home base for some of the largest and most sophisticated business aircraft operating in the region.”
Keinan emphasized that the expansion delivers multiple layers of value for the company, including increased revenue potential, lower unit development costs, and enhanced operating margins. Importantly, the benefits are not limited to Stewart alone, as efficiencies achieved at SWF are expected to positively influence operations across Sky Harbour’s broader Northeast portfolio, including its developments at Dutchess County Airport (POU) and Bradley International Airport (BDL).
Expanding Capacity While Enhancing Efficiency
The additional 10 acres granted under the amended lease provide Sky Harbour with greater flexibility to design a campus that prioritizes operational flow, safety, and tenant convenience. By optimizing aircraft taxi routes, ramp space, and building placement, the company can accommodate larger aircraft types while minimizing congestion and turnaround times.
The estimated 150,000 square feet of incremental hangar space will significantly increase Sky Harbour’s total rentable inventory at SWF, positioning the campus to serve a broader range of business aviation customers. This includes ultra-long-range business jets, large-cabin corporate aircraft, and privately owned aircraft that require dedicated, climate-controlled hangar facilities and premium ground services.
In an industry where time efficiency is paramount, Sky Harbour’s focus on streamlined operations and exclusive tenant services is a key differentiator. The SWF campus is designed to offer line services dedicated solely to based tenants, eliminating delays associated with transient traffic and shared infrastructure. According to the company, this approach enables what it describes as “the shortest time to wheels-up in business aviation.”
A Purpose-Built Home Base for Business Aircraft
Sky Harbour’s Stewart International Airport campus is being positioned as a flagship example of the company’s “home base” concept, which prioritizes long-term tenants over short-term transient operations. Unlike traditional fixed-base operators (FBOs), Sky Harbour focuses on developing modern hangars specifically tailored for aircraft that are permanently based at an airport.
This model aligns closely with the needs of corporate flight departments and private aircraft owners who value reliability, security, and operational predictability. Purpose-built hangars reduce exposure to weather, enhance aircraft availability, and allow operators to maintain consistent crew workflows. For business aviation users in the New York metropolitan area, Stewart International Airport offers a compelling alternative to more congested airports closer to Manhattan, while still providing efficient access to the city and surrounding financial centers.
With the expanded campus, Sky Harbour expects SWF to become the home base for New York’s largest and most advanced business aircraft, further strengthening the airport’s role within the regional aviation ecosystem.
Partnerships Driving Development Success
Sky Harbour acknowledged the critical role played by its partners in advancing the Stewart International Airport expansion. The company expressed appreciation for its growing collaboration with the Port Authority of New York and New Jersey, whose authorization of the lease amendment reflects confidence in Sky Harbour’s development vision and operational track record.
In addition to PANYNJ, Sky Harbour credited MJJ Builders and Passero Associates for their ongoing contributions to the planning, design, and execution of the project. These partnerships are essential to ensuring that the expanded campus meets both regulatory requirements and the high standards expected by business aviation customers.
The company also highlighted its continued strategic collaboration with Jonah Mandelbaum and the Red Tail Flight Academy. This relationship supports workforce development and aviation training initiatives that complement Sky Harbour’s operational needs while contributing to the long-term sustainability of the regional aviation industry.
Economic Impact and Community Benefits
Beyond its strategic and financial implications for Sky Harbour, the expanded development at Stewart International Airport is expected to generate substantial economic benefits for the surrounding communities. The construction and operation of the enlarged campus are projected to create or sustain hundreds of local jobs, spanning construction, aviation services, maintenance, and administrative roles.
The economic ripple effects are anticipated to extend across the City of Newburgh, the Town of New Windsor, Orange County, and the broader Hudson Valley region. Increased business aviation activity can drive demand for local services, including hospitality, transportation, and professional services, while also enhancing the region’s attractiveness as a destination for corporate investment.
Local governments and economic development stakeholders have increasingly recognized the role that modern aviation infrastructure plays in supporting regional growth. By investing in state-of-the-art hangar facilities and long-term aviation assets, Sky Harbour’s expansion aligns with these broader economic development objectives.
Supporting Sky Harbour’s Long-Term Growth Strategy
The Stewart International Airport expansion is consistent with Sky Harbour Group’s strategy of targeting high-demand, supply-constrained markets and deepening its presence through scalable developments. Rather than pursuing rapid geographic expansion alone, the company has emphasized the importance of maximizing value within its existing airport portfolio by expanding square footage, improving site efficiency, and leveraging operating synergies.
As business aviation demand continues to remain resilient—driven by corporate travel needs, wealth creation, and the growing emphasis on flexible and secure transportation—well-located home-base hangars are increasingly viewed as mission-critical infrastructure. Sky Harbour’s investment at SWF positions the company to capture this demand over the long term while delivering predictable revenue streams and attractive margins.
With regulatory authorization secured and planning underway, Sky Harbour is expected to move forward with the next phases of development at Stewart International Airport in coordination with its partners. The expanded campus is poised to become a cornerstone asset within the company’s national portfolio and a benchmark for premium business aviation infrastructure in the Northeast.
As Sky Harbour continues to execute on its strategy of expanding in top-tier markets, the Stewart International Airport project highlights the company’s ability to work collaboratively with airport authorities, deliver complex developments, and create long-term value for shareholders, tenants, and local communities alike.
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