The government of Puerto Rico is $2.6 billion richer thanks to handing over operations of its largest airport to a private company, called Aerostar Airport Holdings.
However, Puerto Rico's governor, Alejandro Garcia Padilla, did admit, on Tuesday, during his press conference that though he would have managed things differently, the U.S. territory's government already had committed to the deal.
Puerto Rico gave its word and we must be firm and transparent in honoring it," he said, according to USA Today.
Not everyone is happy with the deal, as unions and legislators have criticized the proposed 40-year contract with Aerostar Airport Holdings, saying it will lead to lost jobs, reduced wages and potentially higher costs for passengers.
But, Garcia has held firm in his decision, stating, that the deal needed to be signed because the island's Port Authority has to pay a $600 million debt Wednesday and a $340 million debt in June, reported USA Today.
"Right now, the Port Authority has zero dollars to invest in this airport," he said. "As everyone who has visited the airport knows, its infrastructure has to be improved greatly and quickly," according to USA Today.
The deal was able to be accomplished, due in large part, by the Federal Aviation Administration's pilot privatization program, which was approved in 1996, allowing states or local governments to tap into private funds.
The FAA informed Puerto Rico's government late Monday that it had approved the lease deal "subject to certain conditions," Port Authority Director Victor Suarez said, reported USA Today.
The newspaper states that among the requirements is that the Port Authority cannot use airport revenue from other regional airports to compensate Aerostar. It also must submit an annual performance report on its regional airports as well as a transition plan on the 35th year of the agreement.
Garcia was also quick to inform those who have protested this deal that "if this deal wouldn't have gone through, it's important for you to know that there would be no money to pay your salary [and] "there would be no money to honor your retirement," according to USA Today.
This article is copyrighted by Travelers Today, the travel news leader
