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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Fri, Jan 13, 2017

Delta Seeks $3.6 Billion For Terminal Construction Project

Hopes To Construct A 37-Gate Facility At LaGuardia Opening In 2018

Delta Airlines wants to build a new 37-gate terminal at LaGuardia airport, and is looking to finance the project through some $3.6 billion in debt.

New York Governor Andrew Cuomo said in a news release that the Port Authority of New York and New Jersey has approved a lease through 2050 for the the new Terminals C and D ... part of a transformed LaGuardia Airport. The redevelopment of the Delta terminals at LaGuardia will transform them into a $4 billion, state-of-the-art complex. The Port Authority is providing $600 million in funds for the project and the rest of the construction - $3.6 billion dollars – will be funded privately by Delta and its partners. Construction at LaGuardia began in June and will expand to this project later this year, following additional regulatory approvals.

"We are transforming LaGuardia into a world-class, 21st century airport of the caliber that New York deserves, and this approval ensures that the project will continue moving full steam ahead," Governor Cuomo said. "Since breaking ground in June, we have made tremendous progress on building a new airport that was once thought to be impossible, restoring faith in government's ability to get things done. I thank Delta for their partnership and look forward to welcoming millions of travelers through the gates of a new LaGuardia Airport."

Delta CEO Ed Bastian said, “Delta is committed to continuous investment in airport infrastructure in New York and around the world, and today's lease approval brings LaGuardia closer to being the exceptional airport our New York customers deserve. We are proud to be a part of the effort to rebuild one of the world’s busiest and best-known airports, and we look forward to working with the Port Authority and our partners to realize Governor Cuomo’s vision for a 21st-century facility.”

The Port Authority’s $600 million commitment includes $200 million towards the new Delta facilities, including the construction of new concourses and ramps; $185 million for a new electrical substation to support the power requirements of the new building, plus an expansion of the East Garage and temporary parking during construction; and $215 million for new roadway and additional supporting infrastructure that is typically the responsibility of the Port Authority in new terminal developments.

Delta's new terminal at LGA will consist of 37 flexible-gauge gates, each capable of accommodating aircraft ranging from regional jets to Delta's full fleet of narrowbodies. Four concourses will be connected by a centralized check-in lobby, security checkpoint, and baggage claim. Of the 37 gates, 33 will have access to dual taxi lanes, which will improve airfield efficiency by reducing departure and arrival taxi times.

The terminal will offer wider concourses, larger gate holdrooms and more seating, as well as 30 percent more concessions space than the existing Terminals C and D. It will also house a new Delta Sky Club that will feature a Sky Deck with airfield views, wellness products and services, locally inspired menu items, modern furnishings, artwork from emerging New York artists, and other unique amenities.

The facility will offer direct access between the parking garage and terminal, improved roadways and drop-off/pick-up areas, and a curbside check-in bypass leading directly into the security checkpoint. The design of the new terminal will integrate sustainable technologies and improvements in energy efficiency.

The Port Authority first approved the $600 million for the project in July 2016.

The project will be the first complete rebuild of a U.S. airport in 20 years. It will transform LaGuardia Airport into a single, unified facility with expanded transportation access, significantly increased taxiway space and best-in-class passenger amenities, the Governor said. The design reflects the recommendations from the Governor’s Airport Advisory Panel, including the new light-filled Central Hall where passengers arrive, and which combines former terminals for the first time.

By moving the unified airport closer to Grand Central Parkway, the project will increase airport taxiways by more than two miles and reduce airport ground delays. The airport’s interior will be intuitive for passengers to navigate, and will facilitate efficient movement throughout the facility. The design will also take into account the realities of post-9/11 air travel, with additional space for security check-in to help diminish wait times for passengers as they pass through mandatory TSA screening.

(Image from PANYNJ Capital Projects report)

FMI: www.panynj.gov

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