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Delta Air Lines, the Port Authority of New York and New Jersey and JFK International Air Terminal Unveil Plans for Enhancement and Expansion of Terminal 4 at JFK Airport

Project to create a state-of-the-art facility at Terminal 4 at Delta's JFK hub

$1.2 billion expansion and enhancement project to begin in September 2010

JFKIAT to manage terminal facility

Aug 11, 2010

NEW YORK, Aug. 11 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL), the Port Authority of New York and New Jersey and JFK International Air Terminal LLC (JFKIAT) today unveiled plans for the enhancement and expansion of Terminal 4 at John F. Kennedy International Airport. The $1.2 billion project will create a state-of-the-art facility for New York's fastest growing global airline.  

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"The newly expanded and enhanced Terminal 4, one of many substantial investments we're making in New York, will provide significant benefits to our customers, employees and the city of New York for decades to come," said Delta Chief Executive Officer Richard Anderson.  "Following a multi-year effort, we are very pleased to have reached a decision with the Port Authority of New York and New Jersey, JFKIAT and Schiphol USA.  This plan allows us to move forward with the enhancement of our JFK hub, one that will showcase modern, welcoming facilities and meet the needs of the world's most competitive and largest aviation market."

"John F. Kennedy Airport, one of the world's busiest airports, will continue its transformation into one of the nation's most state-of the-art airports with the approval of this plan and the construction of a new billion dollar extension to the international terminal," said New York Gov. David Paterson. "The Terminal 4 expansion will not only help increase customer service for thousands of travelers and bring much-needed renovations and upgrades to handle the demands of 21st century air travel, but it will create hundreds of construction jobs for New York residents. I would like to thank Port Authority Executive Director Chris Ward and Delta Air Lines CEO Richard Anderson for their commitment to this project, and for laying the groundwork for a new, world-class terminal at JFK Airport."

"Ensuring reliable air transportation to and from New York City is crucial to strengthening our economy. And the decision by Delta Air Lines to expand its international terminal at Kennedy Airport will make it easier for even more people to travel to this city in the coming years," said New York City Mayor Michael Bloomberg.  "Not only will this $1.2 billion project cement New York City's status as the nation's top travel destination, it will also create an additional 10,000 jobs over the next three years."

"This Delta-Port Authority announcement launches a billion dollar expanded and enhanced facility for JFK that will create new jobs and a state-of-the-art portal to the world's greatest city," said U.S. Sen. Charles Schumer. "JFK is the gateway to New York City.  And with Delta flying non-stop to five continents, this new facility will enable travelers to fly to and from our great city with ease and comfort. Terminal 4 will greatly improve traveling for New Yorkers – and travelers across the globe – and showcase New York as the transportation hub of not only the nation, but the world."

"I applaud Delta Air Lines and the Port Authority of New York and New Jersey for working together to bring this major investment to John F. Kennedy International Airport," said U.S. Sen. Kirsten Gillibrand.  "This $1.2 billion project represents a firm commitment from Delta Air Lines to further deepen its ties to New York's economy by providing jobs and enhancing our transportation infrastructure. I look forward to working with our airline carriers and airport operators to further upgrade our aviation infrastructure and ensure good jobs and quality air transit for New York's economy."

"The announcement of a new Delta Air Lines terminal expansion and enhancement at JFK Airport is a great moment for the Sixth Congressional District," said U.S. Rep. Gregory W. Meeks.  "Thousands of jobs will be created with badly needed revenue to aid our economic recovery.  I would like to commend Delta Air Lines, the Port Authority and everyone involved for their commitment to the people of New York and those who will visit our great city."

"New York works best when New Yorkers are working," said New York Senate Majority Conference Leader John L. Sampson. "Today's announcement secures the type of sound business initiatives we need to create the jobs and grow the industries that will help New York retain its standing as the Empire State. I applaud Gov. Paterson, Mayor Bloomberg, our U.S. Senate and Congressional delegation, Port Authority Executive Director Chris Ward, Delta CEO Richard Anderson, as well as Senate President Pro Tempore Malcolm A. Smith and Senator Shirley Huntley for their collective efforts to rebuild our economy."

"The economic stability of New York State depends upon our ability to create jobs and to retain and attract businesses," said New York Senate President Pro Tempore Malcolm A. Smith. "This announcement today by Delta Air Lines to expand their terminal is exactly the type of investment that secures these key goals, resulting in thousands of jobs and billions of dollars to the region.  I congratulate Gov. Paterson, Mayor Bloomberg, Port Authority Executive Director Chris Ward, Delta CEO Richard Anderson and Senator Shirley Huntley for their successful perseverance over the last year and a half in making this critical economic development initiative a reality."

"Today, we welcome Delta Air Lines and CEO Richard Anderson and commend their decision to build a state-of-the-art, showcase terminal facility at JFK.  Substantial investments like the one Delta is making will create much needed economic development, thousands of jobs and helps us build a bigger, brighter New York," said New York State Assembly Speaker Sheldon Silver.

Terminal 4 Improvements and Customer Benefits

Currently, Delta operates predominantly out of Terminal 2 for domestic flights and Terminal 3 for international service.  The expansion of Terminal 4 – which has been successfully managed by JFKIAT for over a decade – will replace the outdated Terminal 3 facilities to enhance the customer experience for the 11 million passengers Delta serves at JFK annually. Delta anticipates that customers will experience an improvement in operational performance through dual taxiways, resulting in reduced taxi times and better on-time performance.  Delta is also upgrading its inter-terminal passenger connectors between Terminals 2 and 4 for faster transit between the facilities. Delta customers will further benefit from the airline's ability to continue expanding its international network, which currently includes non-stop service to 94 destinations from JFK and more than 1,200 weekly departures. International service includes non-stop service to Africa, Europe, the Middle East, Asia, Latin America and the Caribbean, with new service being offered to Tokyo, Tel Aviv and Iceland among other destinations.

Economic Impact to the Region

Since making a strategic decision to build New York into a hub earlier this decade, Delta has made major investments across the New York region, boosting its economic impact to more than $13 billion annually.  Delta's current JFK operation generates 49,000 jobs in the region. The Terminal 4 expansion project will create an additional 10,000 jobs in the New York Metropolitan Region by 2014, including airport and construction jobs. Over the next 60 months, the $1.2 billion project will generate $500 million of personal income in the region and $1.6 billion of economic output from the purchases of goods and services.

When completed, the total economic impact of Delta's New York operation will contribute more than $19 billion annually to the state of New York.

"Over the past decade, we've invested billions to improve the customer experience for the 46 million passengers that fly through JFK each year," said Port Authority Chairman Anthony R. Coscia. "This partnership with Delta Air Lines is our latest effort to ensure that JFK is an airport for the 21st century."

"This is a game-changing deal for our customers and the entire regional aviation system," said Port Authority Executive Director Chris Ward. "It increases JFK's capacity, vastly improves the customer experience and strengthens the economic competitiveness of the most important gateway in the country. I want to thank Delta Air Lines, Schiphol and the Port Authority's dedicated staff for completing a deal that has been years in the making."

Expansion Project Highlights

Construction is scheduled to begin in September 2010, with anticipated completion of phase one and relocation of Delta's Terminal 3 operations to Terminal 4 in May 2013.  Delta's JFK terminal project includes the expansion of Concourse B at Terminal 4, with nine new international gates; the construction of a passenger connector between Terminal 2 and Terminal 4; expanded areas for baggage claim and Customs and Border Protection; and the demolition of Terminal 3 in May 2015. The Terminal 3 site will then be used for aircraft parking.  

Photos of the planned renovations are available online at http://news.delta.com/index.php?s=13&cat=14&mode=gallery.

Schiphol Group and JFKIAT

"Schiphol is honored that Delta has chosen Terminal 4 to serve as the main hub of its New York operations," said Jos Nijhuis, president and CEO of Schiphol Group.  "Delta Air Lines is a key member of the SkyTeam alliance, and, together with its partner Air France-KLM, this will further strengthen their North Atlantic network, facilitated by the airports of Amsterdam, Paris and New York. Our added value as a leading airport operator is our ability to harmonize the processes needed to achieve a world-class travel experience and serve our airlines in a cost-effective and flexible way. In addition, Delta's choice reflects the success of Terminal 4 after nearly a decade in operation. At the same time, the terminal will continue to serve independent airlines and host current customers."

"Our team is looking forward to making this plan happen in the best interest of all stakeholders," said Alain Maca, president of JFKIAT. "It is an exciting challenge to continue to serve our customers while expanding our facilities. The implementation of the ambitious development plan with Delta represents a major new milestone in the history of our terminal."

About JFKIAT

JFKIAT LLC, which operates Terminal 4 at John F. Kennedy International Airport, is wholly owned by Schiphol USA, Inc., a subsidiary of Schiphol North America Holding Inc., an indirect subsidiary of NV Luchthaven Schiphol, a Dutch company based in Amsterdam.   JFKIAT is the only private, non-airline company to be selected by the Port Authority of New York & New Jersey to operate a terminal at JFK. The 1.5-million-square-foot Terminal 4 opened in May 2001 and reached an annual passenger volume of 9.5 million air travelers in 2009. Terminal 4 is one of the largest terminals in the New York area, serving nearly 40 international and domestic airlines.

About Delta

Delta Air Lines serves more than 160 million customers each year. With its unsurpassed global network, Delta and the Delta Connection carriers offer service to 367 destinations in 65 countries on six continents. Headquartered in Atlanta, Delta employs more than 70,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 45 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

Forward-looking Statements

Statements in this news release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements.  These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the effects of the global recession; the effects of the global financial crisis; the impact of posting collateral in connection with our fuel hedge contracts;  the impact that our indebtedness will have on our financial and operating activities and our ability to incur additional debt; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; the ability to realize the anticipated benefits of our merger with Northwest; the integration of the Delta and Northwest workforces; interruptions or disruptions in service at one of our hub airports; our increasing dependence on technology in our operations; our ability to retain management and key employees; the ability of our credit card processors to take significant holdbacks in certain circumstances; the effects of terrorist attacks; the effects of weather, natural disasters and seasonality on our business; and competitive conditions in the airline industry.  

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2009 and our report on Form 10-Q for the quarterly period ended June 30, 2010.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of August 11, 2010, and which we have no current intention to update.

SOURCE Delta Air Lines


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