MIAMI – The current crisis deals another blow for Delta Air Lines (DL), as it decides to scale down its proposed expansion at New York’s JFK Terminal 4 facilities.

In an announcement made on April 22, the New York Port Authority, which oversees the three New York-area airports, indicated that a resolution on scaling down the Delta’s Terminal 4 improvements. The expansion had been announced just prior to the onset of the Covid-19 epidemic.

According to various media, including MSN Lifestyle, IATA News, and BnnBloomberg, the initial project would have seen DL operating exclusively out of Terminal 4 and permanently abandoning Terminal, already left by DL following the drop in traffic related to the pandemic. Terminal 2 demolition is since long planned to make space for Terminal 1 expansion.

diagram: (Slide courtesy of the Port Authority)
Slide Courtesy New York Port Authority

A Deeply Revised Expansion Plan

To concentrate operations in a single terminal, DL had made plans to expand by 16 gates positions for single-aisle aircraft, upgrades at the land-side of the terminal with a new entrance, more seating areas, concessions, and restrooms. The expansion project received a green light from the New York port Authority in February 2020.

The revised expansion plans foresee only two narrow-body gates, and eight regional ones at the end of Concourse B while in Concourse A present regional jet gates will be converted for narrow-body aircraft during the first phase of the expansion.

Also included in the plan is the renovation of the check-in area and improvements to the curbside area on the arrival level to ease congestion.

Delta Connection Mitsubishi CRJ701 N354CA – Photo : Casey Groulx/Airways

Investment Slashed More than Half

According to BnnBlommberg, the amount to be invested is 60% less than previously planned, passing from an initial budget of US$3.8bn to a revised amount of US$1.5bn.

The financing is to be met by JFK International Terminal, a Limited Liability Company managing Terminal 4, by borrowing US$1.5bn with DL paying the debt service on US$1.4bn securities while the remaining part of US$100m would be paid by concessions and rentals.

Featured image: Delta Air Lines Boeing 737-932ER N865DN – Photo: Alberto Cucini/Airways