Delta Wins Approval at LAX to Upgrade & Move to Terminals 2 & 3 – $1.98B Plan

A day prior to Delta’s big LGA announcement (see – Delta to Request End of LaGuardia Perimeter Rule in Exchange for Covering LGA Terminal Redevelopment Cost?), they officially announced a terminal relocation and $1.98B renovation project at LAX. Delta will move from Terminals 5 and 6 to Terminals 2 and 3. The plan also calls for a new Delta connector inside security to the Tom Bradley International Terminal.  Delta will likely move into the terminals prior to the start of any renovation, but will be responsible for covering the relocation and other expenses for airlines vacating T2/T3. The move will also surprisingly provide Delta with more gates than United or American at LAX (22-27 gates in T2/3 plus access to gates at TBIT), Delta currently has 16 gates in T5/T6.

The full PR:

Delta Air Lines is moving forward with the first steps toward a $1.9 billion plan to modernize, upgrade and connect Terminals 2 and 3 at Los Angeles International Airport (LAX) over the next seven years. Los Angeles World Airports’ (LAWA) Board of Airport Commissioners approved a terminal facilities lease and license agreement earlier today. The future project, which will also provide a secure connector to the north side of the Tom Bradley International Terminal (TBIT), enables Delta to build a premier space for its LAX operations alongside its airline partners.

“This is a significant milestone for Delta in Los Angeles, and it illustrates a strong, successful public-private partnership,” said Delta CEO Ed Bastian. “Delta is working hard to become the preferred airline for Angelenos, and this project reinforces our commitment to our LAX hub and to an ever-higher level of service for our customers.”

The relocation will expand Delta’s gates at LAX commensurate with the airline’s growth there. Since 2009, Delta has more than doubled its number of seats and grown from 70 daily departures to more than 175.

By relocating from Terminals 5 and 6 to the complex at Terminals 2 and 3, Delta will operate alongside many of its airline partners, including Aeromexico, Virgin Atlantic, and Virgin Australia. Later, a secure connection to TBIT will enable seamless access to additional partners, including Air France-KLM, Alitalia, China Eastern, and China Southern.

Once remodeled, the new space will provide all the amenities that Delta’s customers have come to expect at LAX, including a private Delta One check-in lounge, new Delta Sky Clubs, fast check-in for Delta Shuttle services, and an integrated in-line baggage system. The facility will offer convenient passenger flows, sufficient gate-area seating, and a world-class concession program in partnership with Westfield Corporation.

“Ultimately, Delta’s new home base at LAX will provide everything our customers currently benefit from at Terminal 5, along with enhancements that will enable best-in-class check-in, faster connection times for seamless connectivity, and an industry-leading customer experience,” said Ranjan Goswami, Delta Vice President – Sales, West.

“The ongoing $8.5-billion LAX Modernization Program has resulted in a new Tom Bradley International Terminal, airfield and roadway improvements, as well as over $2 billion invested by airlines to renovate Terminals 1, 5, 6, 7 and 8,” said LAWA Board President Sean Burton. “Partnering with Delta Air Lines will allow both parties to further our shared goal to significantly improve the guest experience at LAX.”

Following today’s lease approval by the LAWA board, Delta will move forward with an initial investment of $350 million to design and renovate gate areas, support space and other amenities for passengers; upgrade the baggage handling systems in the terminals; and facilitate the relocation of those airlines currently located in Terminals 2 and 3 to Terminals 5, 6, and TBIT in accordance with a relocation plan vetted with the other airlines and approved by LAWA. The project remains subject to further approval by the Los Angeles City Council and other agencies.

“We are grateful for our partnership with LAWA as we work together to invest at LAX, and we look forward to engaging the Los Angeles City Council and other parties on forthcoming review and approval of this important investment,” said Bastian.

Delta LA

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