SFGate: Delta Acquiring New York-London Route

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Friday, July 28, 2006 (AP)
Delta Acquiring New York-London Route
By HARRY R. WEBER, AP Business Writer


   (07-28) 07:20 PDT ATLANTA (AP) --

   Delta Air Lines Inc., the nation's third-largest carrier, said Friday it
has reached a deal worth up to $21 million with UAL Corp.'s United
Airlines to acquire the authority to provide nonstop service from New
York's John F. Kennedy International Airport to London.

   Delta has been trying for a decade to get authority to operate flights to
London from JFK.

   Terms of the deal, which is subject to U.S. Department of Transportation
and bankruptcy court approval, call for Delta to pay United $13 million at
closing and $2 million a year for four years, Delta spokeswoman Betsy
Talton said.

   She added that the subsequent payments will stop if an open skies
agreement allowing greater access by airlines to destinations in other
countries is reached.

   Atlanta-based Delta said that if the deal with Elk Grove Village,
Ill.-based United is approved, its first daily round-trip flight between
JFK and London's Gatwick Airport would begin later this year with a second
flight beginning in spring 2007.

   Delta also wants to serve London's Heathrow Airport. It said it supports
an open skies agreement between the United States and Europe that would
allow it to do that.

   Since filing for bankruptcy in September 2005, Delta has ramped up its
international operations, and New York has been a big part of that
expansion.

   It believes the JFK to London route will help it expand its options in t=
he
international market.

   With the addition of service to London, Delta will serve 22 trans-Atlant=
ic
markets nonstop from JFK.

   Delta said it plans to operate the new flights with its 214-passenger
Boeing 767-300ER aircraft.

   Delta is spending more than $20 million on renovations to its Terminal 2
and 3 facilities at JFK. The changes include the addition of a new,
dedicated BusinessElite check-in area in Terminal 2, refurbishing the
customs and immigrations entrance, refreshing facilities in Deltas
BusinessElite lounge and Crown Room clubs, and adding new international
check-in kiosks throughout the facility. ----------------------------------=
------------------------------------
Copyright 2006 AP

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