Delta Air Lines, LAWA invest $229 million to overhaul Terminal 5 at LAX

Delta Air Lines (NYSE: DAL) has partnered with the City of Los Angeles and Los Angeles World Airports (LAWA) to significantly overhaul Terminal 5 at Los Angeles International Airport (LAX). The $229-million construction project has already begun and is scheduled to take place in several phases with full completion in 2015.

Highlights of the project include doubling the size of the ticketing lobby and federal security screening checkpoints; an exclusive Sky Priority experience with a separate lobby and checkpoint; a private VIP check-in lobby that will provide the most elite experience available at LAX; a renovation of the Delta Sky Club to include full-service bar, new carpet, tile, and additional recharge stations for personal electronic devices; new baggage carousels; upgraded facilities to improve international baggage recheck; and new finishes providing a cleaner, brighter customer experience. In addition, 15 new restaurants and shops featuring celebrity chefs and retail brand names that reflect the cuisine, culture and lifestyle of Los Angeles will complete their phased openings this year.

“Los Angeles is a critical global gateway for Delta’s domestic and international customers and we are thrilled this project – which will greatly improve the customer experience from curbside to planeside – is underway,” said Ranjan Goswami, Delta’s managing director – West Coast Sales. “But none of this would be possible without the great partnership and collaborative effort made by Mayor Antonio Villaraigosa and LAWA Executive Director Gina Marie Lindsey. Their leadership has truly paved the way for the improvements our Los Angeles-area customers are already starting to see and feel.”

“As LAX undergoes a $4.1-billion modernization, we have made it a priority to improve domestic travel as well as updating our international terminal,” Mayor Villaraigosa said. “By overhauling Terminal 5 at LAX, Delta Air Lines helps us ensure that LAX becomes the premier gateway to Los Angeles and to the rest of the United States.”

LAWA Executive Director Gina Marie Lindsey said, “This is an important milestone in the continuing modernization of LAX. The partnership with Delta Air Lines is enabling significant improvement in customer service and convenience for both domestic and international travelers.”

The project is funded using approximately $12 million of Delta Air Line’s invested capital for proprietary improvements (airline lounge, check-in lobbies, finishes, other architectural elements, etc.); approximately $25 million in reimbursements from the Transportation Security Administration for security-screening measures; and the remainder in LAWA commercial paper/long-term debt, LAWA cash on hand, and Passenger Facility Charges collections. NO funds from the City of Los Angeles’ General Fund are being used. The project will support more than 200 construction-related jobs in Southern California.

Last month, Delta announced plans to increase service at LAX with daily year-round and seasonal service to 14 destinations, including eight new markets: Anchorage, Alaska; Boston; Bozeman, Montana; Nashville, Tennessee; Seattle; San Jose, California; San Jose, Costa Rica; and Spokane, Washington. The additional service adds 12 percent more daily seats in the market. This summer, Delta will operate 118 peak-day departures to 40 nonstop destinations, including Sydney and Tokyo, from Los Angeles. Delta operates transcontinental flights between Los Angeles and New York-JFK seven times daily. All Los Angeles domestic service offers customers the option of first class, Economy Comfort or economy seating, along with in-flight Wi-Fi.

Customers flying from Los Angeles also benefit from Delta’s agreements with domestic partner Alaska Airlines and key international carriers, including WestJet and Virgin Australia, as well as Sky Team partners Air France-KLM, Alitalia, Korean Air, AeroMéxico, China Airlines, China Eastern, China Southern, and Aeroflot. Delta expects to begin codesharing on flights between Los Angeles and London-Heathrow airport with partner Virgin Atlantic Airways later this year.