(DAL) Delta Air Lines to Open New Airport Terrace

With the thought of providing a comfortable lounge experience to flyers, Delta Air Lines (DAL) joined hands with an international design group – Architectural Digest – to upgrade outdoor terraces. These first-ever open-air airport patios, called The Sky Deck, will be set up at the Atlanta and New York terminals.

At Hartsfield-Jackson International Airport in Atlanta, Delta plans to open the terrace adjoining the Delta Sky Club in Concourse F. The new space at the John F. Kennedy International Airport in New York will be at the company’s $1.2 billion renovated Terminal 4. Both the luxurious relaxation units will be made available to customers in summer, this year.

A Delta executive commented that management is excited to have teamed up with the top names from the world of design, Architectural Digest and Thom Filicia – the designer of these lounges, for this project. This imitative underlines the company’s effort to pay special attention to offering its customers elite traveling experience and facilities.

In the last two years, Delta – the second largest airline company in U.S. after United Continental (UAL) – has opened or revamped 13 clubs across the chain in numerous cities including Atlanta, Indianapolis, Los Angeles, Minneapolis-St. Paul, New York, Philadelphia and Seattle.

Delta targets to invest more than $3 billion through 2013 on improved products, services and airport amenities in the air and on the ground. The company is expanding seating facilities as well as installing winglets and Wi-Fi connectivity in the fleet as well as putting up recharging stations at airports. Further, the company is working toward introducing more First Class cabins on fleets and in-seat entertainment for both BusinessElite and Economy class flyers.

We believe that a better flight experience by customers will lead to bigger market traction and pave way for growth opportunities for the company. The addition of new and attractive features along with enhanced service offerings could place the company in an advantageous position compared to other industry players such as JetBlue Airways Corp. (JBLU).

Delta currently holds a Zacks Rank #3, implying a short-term Hold rating. Another airline stock that is currently performing well is Southwest Airlines Co. (LUV) which has a Zacks Rank #2 (Buy).
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