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The Port Authority of New York & New Jersey is blocking a new $800 million American Airlines terminal at JFK International Airport because the airline opposes the agency's proposed airport rail link.
Robert Boyle, Port Authority executive director, has sent what was described as a very tough letter to American suggesting there would be little progress on the terminal as long as American and other airlines continue their efforts to kill the rail plan.
American's corporate parent, AMR Corp., reportedly approved a new terminal at a recent board meeting. But the Port Authority, which runs the areas three airports, pulled an item from last Thursday's board meeting that would have authorized it to negotiate a terminal agreement with American.
The disagreement between the Port Authority and American could also delay the plans of two other major airlines, Delta and United, to build new terminals at JFK. Observers worry that between $2 billion and $3 billion in airport development projects could be at stake in the debate.
"American Airlines needs a new terminal, and the New York metropolitan region needs...