This story was sent to you by: Bill Hough -------------------- Delta Plans JFK Expansion -------------------- By Tom Incantalupo Staff Writer January 28, 2004, 7:36 PM EST ATLANTA -- Delta Air Lines Wednesday announced a major expansion in service and a fare sale at Kennedy Airport beginning in the spring and $300 million in terminal improvements over the next six years. Analysts called the moves an attempt by Delta to protect its already large investment in New York from low fare carriers, especially Jetblue Airways, now the largest airline at Kennedy in passengers carried. But they saw the move as a rifle shot, rather than a cannon shot, that JetBlue would easily survive. "Delta doesn't have the cost structure to be competitive over the long haul with JetBlue," said airline expert Elliot Seiden of GCW Consulting in Arlington, Va. "They have to get their costs in line." Still, Delta was successful last year in shoving JetBlue out of Atlanta, Delta's home base. And it is seeking salary givebacks from its pilots as part of a three-year $3.5 billion cost-saving program. "Clearly, costs are an issue we need to work on," Vicki Escarra, Delta's executive vice president and chief marketing officer, said in an interview. The nation's third largest carrier and already a major presence at LaGuardia, Delta said it would add a total of 34 flights at Kennedy with eight new destinations and increased frequencies, raising the total daily departures to 103. The additions, to be done in stages between April 4 and Sept. 1, would be by Delta's mainline operation, its Song low fare unit launched last year and a Delta Connection commuter carrier. Jetblue has 88 departures daily at Kennedy but also plans expansion, with 14 new jets due for delivery this year. Delta also said it would recall about 200 furloughed flight attendants to Kennedy, bring back or transfer 100 airport agents and place 10 mothballed planes back into service. Delta employs more than 3,000 at Kennedy. JetBlue, whose home base is Kennedy, announced plans last week to expand to LaGuardia beginning in the spring. But Wednesday , the carrier's stock slid by $2.50 to close at $24 after the Delta announcement and after Morgan Stanley downgraded JetBlue's shares because of the growing competition it is facing. JetBlue plans this morning to announce earnings for last year's fourth quarter. Delta said its new destinations from Kennedy under the mainline flag will include Denver, San Juan, Santo Domingo and San Diego. Song will add service to Ft. Myers, Fla., while Delta Connection commuter carrier Chatauqua Airlines will launch service to Charleston, S.C., Savannah and Greensboro, N.C. Renovation of Delta's two connected terminals at Kennedy, already underway, will include road repairs and improvements to the air conditioning and baggage handling systems. Sale fares to the new destinations will range from $59 to $109 each way based on roundtrip purchase but carry restrictions and are only for tickets bought on or before Feb. 6. Delta's shares closed down one cent Wednesday at $28.52. Copyright (c) 2004, Newsday, Inc. -------------------- This article originally appeared at: http://www.nynewsday.com/news/local/transportation/nyc-delta0129,0,621217.story?coll=nyc-manheadlines-trans Visit Newsday online at http://www.newsday.com