Delta Air Lines
) in association with the Port Authority of New York and New
Jersey (PANYNJ) and JFK International Air Terminal LLC (JFKIAT)
will invest an additional $175 million for the re-vamp of
Terminal 4 at New York's John F. Kennedy (JFK) International
Airport. Delta - the second largest airline company in the U.S.
United Continental Holdings Inc.
) - will individually put in $5 million to enhance information
In 2011, Delta reached an agreement with PANYNJ and JFKIAT to
shift its international operations at JFK to Terminal 4.
Accordingly, the U.S. airline company announced an initial
redevelopment program, worth $1.2 billion, for Terminal 4 which
is expected to start operations in May.
As per the initial renovation program - already 90% complete
-Terminal 4 will have 9 new and 7 modernized international gates,
improved check-in areas that will include a superior Sky Priority
check-in counter plus a centralized security checkpoint.
Delta has also introduced new dining and retail spaces as well
as Delta Sky Club, a flagship with the first ever Sky Deck
outdoor terrace. Passengers at the terminal will experience less
congestion with dual taxiways and shorter taxi times; and will
see better Customs and Border Protection and baggage claim
The currently announced additional investment will be directed
toward adding 11 more gates, totaling 27 gates at the terminal
committed to Delta. Consequently, the company's regional jet
operation at Terminal 2 will cease. These new gates will be
designed with a dedicated boarding counter as well as a
comfortable seating area and jet bridge.
Each gate will have the capacity to accommodate two-class
regional jets plus render the option of gating other mainline
aircraft. This will also add 75,000 square feet to Terminal 4's
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The improved and expanded Terminal 4 - which was supervised by
JFKIAT over the last few years - will replace the old-fashioned
Terminal 3 facilities. Following the opening of the terminal in
May, Delta plans to double the current shuttle bus operation for
people between Terminals 2 and 4. Terminal 3 will be used as a
parking space for aircraft, following its demolition by summer
Delta management believes that a glamorous and improved Terminal
4 will attract more flyers, resulting in higher tourism in the
city of New York. Apart from developing the infrastructure of the
city airport, the expansion will render comfortable and luxurious
services to visitors.
With the target to reap in high revenues and earnings in 2013,
Delta is involved with various strategic actions that include
re-organization of fleet, introduction of attractive services,
capturing of new markets and profitable takeovers. The company is
collaborating with top brands like Malin+Goetz and
Tumi Holdings Inc.
) to offer travel luxuries to BusinessElite passengers.
We believe that these innovative and attractive initiatives along
with enhanced service offerings will position the company in an
advantageous position compared to other industry players such as
JetBlue Airways Corp.
Delta currently holds a Zacks Rank #3, implying a Hold