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Sunday, March 14, 2010

Delta's New Terminal- Why It's Absolutely Necessary to Replace Terminals 2 and 3

note: I am writing this from my local library, because my house has lost power till Tuesday. Funnily enough, only four houses on our street have not regained power. We all use the same energy provider, PSE&G

note: All photos not mentioned from my friend Chris Sloan at the Airchive. Some photos in previous posts from there as well.



For those of you who have been travelling from New York's JFK airport on Delta Airlines frequently, what do you think of their terminals??? To put it bluntly, the places are absolute dumps. I mean, I traveled through Terminal 3 in 2003, and it was pretty bad back then, overcrowded and dingy. One can only imagine, then how bad it has become in the 7 years since. Terminal 2 probably has not fared much better. What is the problem? Well, Terminal 3 was built in the 1960's for Pan Am's fast-expanding international operations. The terminal was noted for its distinctive flying saucer roof, and was considered an architectural landmark. For a while, it was even the world's largest passenger terminal. However, after the onset of the Airline Deregulation Act in 1978, explosive passenger growth quickly began to render the terminal obsolete. In 1991, Delta took over Terminal 3, in addition to Pan Am's transatlantic routes. After 9/11, the increases in security requirements have definitively illustrated the problems facing Terminal 3. Due to the increased security, lines often end up outside the door, and waiting areas for passengers are extremely cramped. The terminal was not designed for maximum efficiency for connecting passengers, reducing the amount of traffic that can be flowed over JFK by Delta. Terminal 3 has 18 gates (16 jetway 2 hardstand). Terminal 2, with 24 gates( 7 jetway 17 hardstand), was built in 1962 for Northeast, Northwest, and Braniff. It was taken over by Delta after the demise of Braniff and Northeast. Terminal 2 is showing its age as well. 






Currently, Delta Airlines is in talks with The Port Authority of New York, about redeveloping Terminals 2 and 3 into one large mega- terminal. The airline is seeking about 1.5 billion dollars in financing, which would be the cost for the terminal. Though their first hope is the Port Authority, the capital budget constraints faced by the PA over the World Trade Center project makes them an unlikely candidate.






The second option, would be to use passenger facility charges, or PFCs to finance the project. PFCs are fees that airports collect on each plane ticket. Using PFCs to finance the terminal project would require approval from the Federal Aviation Administration (FAA). Approval for using PFCs may extend lines of credit to Delta , as bonds can be issued based on these PFCs. 


Regardless of financing for the project, many might ask why a new terminal is necessary at all? In terms of passenger traffic, Delta lags behind Continental Airlines throughout the total NYC airport system, and Jetblue at JFK. In recent years, both American Airlines, and Jetblue have built spacious, modern terminals at JFK. As aviation industry expert Brett Snyder, who writes the Cranky Flier blog, put it, “It's a shame because they've done a lot to improve their on-board experience. But it is incredibly hard to win in New York when you have a miserable facility. And they know that.” (taken from the following article) And Brett is right. Delta Airlines has made great strides in their onboard product, which at this point, lags behind only Continental among US legacy carriers. And, as the world's largest airline, Delta has plenty of feed for its routes. But in a premium market like New York, terminal quality does matter. And Delta will continue to lose high-yielding business passengers unless it brings its terminal quality up to the standards of American's or Jetblue's. 






At JFK airport, the terminals are operated directly by the airlines, who lease out gates to other operators. Delta Airlines is currently the operator of Terminals 2, 3, and 4. As the terminal is being rebuilt, Delta will shift some more of its flights to Terminal 4, and others will be moved to hardstand gates. A I wrote earlier, Terminal 3 is considered an architectural landmark. Unfortunately, it cannot be maintained in its current shape, unlike JetBlue's new Terminal 5, which used the TWA Flight Center's facade, while still building a modern terminal inside, all for a cost of just $850 million. 


(found here)


The way terminal space is allocated currently, completely destroys JFK's viability as a connection point. There are no common gates for any of the alliances and/or codeshare partners of the American airlines. If the airport were reconfigured into 5 large terminals, instead of the current 8 smaller terminals, then JFK could become a significant connection point for the USA. Here's how it could work. 
(found here)







Terminals 1, 2, and 3 could be separate in name only, with a single continuous land-side terminal and shared check-in facilities and baggage claim. This terminal could function with three concourses, each with Customs and Immigration. The terminal would house all flights for the SkyTeam Alliance, and for airlines partnered with them. Terminal 4's East concourse could be fully built out, then, the Terminal could be used for all Star Alliance international flights, and the flights of international carriers that are unaligned. Terminal 5 would remain as Jetblue's hub, with Customs and Immigration. Terminal 6 would be rebuilt and used as the terminal for United, US Airways, and unaligned domestic carriers. Terminals 7 and 8 could be linked land-side, and the concourses of Terminal 8 fully built out, yielding the terminal for American, British Airways, OneWorld Alliance airlines, and their codeshare partners. Restructuring the airport like this would achieve major efficiency gains. But the current terminal owners would have to be willing to change.


Rebuilding Terminals 2 and 3 is a necessary project, which will give Delta the fuel it needs to compete with other major airlines in NYC. But, a cathedral of aviation must be destroyed in the process. If the Worldport can somehow be preserved in the process, then its all for the best. 

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