Tuesday, June 15, 2010

Delta Eyes JFK Airport Renovation as Business Travel Soars

Delta Air Lines Inc. is close to announcing the renovation of its outdated terminals at New York's John F. Kennedy International Airport amid an intensifying competition for the city's business-travel market.

The airline has been in talks for months with the Port Authority Of New York & New Jersey about funding a move that is expected to include demolishing the landmark Pan Am Worldport terminal at JFK to make way for new facilities.

Delta President Ed Bastian said at an industry conference that an announcement is expected within 60 days involving the Port Authority and "several other players."

"It is the worst facility that we operate," Mr. Bastian said of Delta's JFK terminals, acknowledging that they contributed to relative weakness in securing business travelers.
Delta is involved in a four-way battle for New York traffic against
AMR Corp.'s American Airlines and its new partner JetBlue Airways Corp., as well as Continental Airlines Inc.

A rebound in the domestic business-travel market has emerged as a key driver in the recovery of revenues seen across the U.S. airline industry.

Write to Doug Cameron at doug.cameron@dowjones.com

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