The Port Authority of New York & New Jersey (PANYNJ) in the US has decided to enter a lease agreement for New Terminal One at John F Kennedy International Airport (JFK Airport).

The authority will sign the lease agreement with the consortium responsible for the terminal project.

The consortium comprises Lufthansa, Air France, Japan Airlines and Korean Air Lines, as well as development and financial partners The Carlyle Group, JLC Infrastructure and the Union Labor Life Insurance Company (Ullico).

Under the agreement, the consortium will oversee the design, construction, financing, operation and maintenance of the new terminal, which will be located at the airport’s south side.

The lease will enable the construction of a new 2.8 million-square-foot terminal on the site that formerly housed Terminals 1 and 2, as well as a new aircraft parking area for Terminal 3. The project is expected to cost around $7.4bn.

PANYNJ also stated that New Terminal One will be constructed in phases until 2025, allowing the airport to continue its daily operations with reduced impact on passengers.

PANYNJ Chairman Kevin O’Toole said: “The Port Authority’s board authorisation today shows important progress toward the agency’s mission to ensure a 21st-century customer experience by transforming our legacy assets into modern gateways.

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“The New Terminal One is one of the major pillars of the redevelopment of the new JFK and builds on the success of the newly restored TWA hotel which opened earlier this year.”

Last year, New York Governor Andrew Cuomo announced that JFK airport will undergo a $13bn modernisation that includes the addition of two new terminal complexes at the north and south sides of the airport.

When operational, the terminal will provide 23 international gates, including 22 designed to accommodate larger, wide-body aircraft such as the Boeing 787 Dreamliner or Airbus A380.

This expansion is expected to boost the airport’s annual capacity by approximately 15 million passengers.