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American Airlines announces commercial redevelopment of Terminal 8 at John F. Kennedy

American Airlines announces commercial redevelopment of Terminal 8 at John F. Kennedy

Old Jul 12, 23, 10:12 am
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American Airlines announces commercial redevelopment of Terminal 8 at John F. Kennedy

Does this and the recent expansion of T8 mean AA will focus on building up JFK instead of continually handing over business to DL?

American Airlines, in partnership with the Port Authority of New York and New Jersey and Unibail-Rodamco-Westfield (URW) Airports, today announced a $125 million commercial redevelopment program for Terminal 8 at John F. Kennedy International Airport (JFK). The project will feature a new Great Hall and is expected to bring more than 60 new shopping and restaurant offerings to the terminal.

https://news.aa.com/news/news-detail...gn=T8_Redesign
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Old Jul 12, 23, 10:17 am
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$125M doesnt buy you much at JFK with its high cost to build. The article states they are adding shops, not gates
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Old Jul 12, 23, 10:22 am
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$125M at NYC labor rates is a fresh coat of paint and some new signage...
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Old Jul 12, 23, 10:23 am
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It is possible that AA is trying to give some attention back to JFK (NYC market). Although JFK/PHL is very close, the NYC market is large enough that AA cannot totally ignore JFK. Now that AA/B6 alliance may not work out, AA may need to do more at JFK alone rather than let B6 do the work. However, I also think that the expansion plan of Terminal 8 has something to do with consolidating the OneWorld operation at JFK into Terminal 8. I suspect this had something to do with the opening of new lounges (Chelsea/Soho/Greenwich) at JFK ahead of FL at PHL, where work on FL at PHL has not even started yet according to the post at the AA forum. I think expansion of the terminal to increase gates may be possible if OneWorld partners agree to flip part of the bill.
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Old Jul 12, 23, 10:35 am
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Originally Posted by bgasser
$125M doesnt buy you much at JFK with its high cost to build. The article states they are adding shops, not gates
They added 5 gates (and the enhanced lounges) when BA moved over from T7 at the end of 2022.
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Last edited by PHL; Jul 12, 23 at 11:10 am
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Old Jul 12, 23, 10:41 am
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60 new shopping and restaurant offerings to the terminal.”

…all available via the same iPad ordering system that was installed in the C terminal at EWR…
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Old Jul 12, 23, 10:57 am
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Based on the render in the release it looks like the plan is to block off the egress directly in front of you when you exit security and instead funnel all the foot traffic to the left through a reconfigured maze of duty-free and luxury shops (similar to what BAA has perfected at LHR). I was walking through that area of a couple weeks ago and thought to myself "wow there is a lot of under utilized space here" and its seems like AA and Port Authority thought the same thing. I suspect this investment was made more attractive/viable by the migration of the premium-heavy Oneworld partners to the terminal . Sounds like AA isn't putting up much, if any, cash so this is really just a tactical move to better optimize existing assets.

If AA were serious about defending/expanding their position at JFK post-NEA they would complete the other half of the headhouse and Concourse B but that appears very unlikely as the current management team seems deathly afraid of competitive markets. They will have some tough decisions to make on what to do with the slots they leased to B6.
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Old Jul 12, 23, 11:03 am
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Originally Posted by BillBurn
appears very unlikely as the current management team seems deathly afraid of competitive markets
Truer words have never been spoken.

That said, AA has the decision made for them. The NEA is out, PHL being a JFK replacement failed spectacularly. The only option they have left is to build up JFK.
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Old Jul 12, 23, 11:10 am
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I would be very grateful if they would put in some concessions that aren't total garbage. I'm not asking for a luxury steakhouse, but being able to eat something better and fresher than McDonald's would be nice. The way it is now, that terminal is like a prison cafeteria. DL's T4 is soooooo much better.
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Old Jul 12, 23, 11:14 am
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Originally Posted by Antarius
Truer words have never been spoken.

That said, AA has the decision made for them. The NEA is out, PHL being a JFK replacement failed spectacularly. The only option they have left is to build up JFK.
I don't know that PHL was ever intended to be a replacement. With no slot restrictions, it's still a good TA gateway and will likely get back to or exceed pre-COVID destinations when the 789s and XLR start arriving. It definitely earns higher yields on some of those TA routes that are offered out of both airports.
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Old Jul 12, 23, 11:42 am
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Originally Posted by M60_to_LGA
I would be very grateful if they would put in some concessions that aren't total garbage. I'm not asking for a luxury steakhouse, but being able to eat something better and fresher than McDonald's would be nice. The way it is now, that terminal is like a prison cafeteria. DL's T4 is soooooo much better.
There is literally a luxury steakhouse already!
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Old Jul 12, 23, 12:47 pm
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Originally Posted by njvandy
There is literally a luxury steakhouse already!
Hah, I guess I never noticed because that's the last thing I want to eat before I get on a long flight. But put in a Shake Shack where I can get a shroom burger, or even a Manchu Wok, or something!
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Old Jul 12, 23, 1:21 pm
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Originally Posted by Antarius
Truer words have never been spoken.

That said, AA has the decision made for them. The NEA is out, PHL being a JFK replacement failed spectacularly. The only option they have left is to build up JFK.
PHL was built up pre-COVID and was continually adding new destinations, especially to Europe. Load factors and yields were fairly strong. Post-COVID, PHL PRASM is higher than JFK PRASM and the NEA court case exhibits show that PHL was planned to be reduced due to the NEA.

So how did PHL "fail spectacularly" as a JFK replacement?
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Old Jul 12, 23, 1:54 pm
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Originally Posted by lowfareair
PHL was built up pre-COVID and was continually adding new destinations, especially to Europe. Load factors and yields were fairly strong. Post-COVID, PHL PRASM is higher than JFK PRASM and the NEA court case exhibits show that PHL was planned to be reduced due to the NEA.

So how did PHL "fail spectacularly" as a JFK replacement?
You think AA would be interested in the NEA and drawing down PHL if it was such a success?
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Old Jul 12, 23, 2:33 pm
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Originally Posted by Antarius
You think AA would be interested in the NEA and drawing down PHL if it was such a success?
AA was chasing the possibility of something better coming from NY., because they've been desperate to gain ground there the past 2 decades, and had to resort to an illegal JV to try and get that market, which they still were stumbling with based on PRASM there vs PHL.

While Spectacular Failure could certainly apply to NYC given that and the past 20 years ending with AA in 4th place there despite wanting it to be a flagship hub, we'll see what happens with PHL now that they can't attempt an end-run around the law to win in NYC. My guess is PHL gets built back up, but I'd guess even HQ is still figuring out what the game plan is now.
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