Anyone flown through Terminal 3 at JFK on Delta lately? Fortunately, that miserable experience is soon coming to an end with the opening of Delta’s new Terminal 4 expansion in May. Justin Harrison works with SmartFlyer, a travel agency in New York that we affiliate with at Cranky Concierge. He was given a sneak peek of the terminal as they work to get it ready to open and I’m happy to be able to share his write-up and photos here with you.

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On May 24, Delta will be opening its expansion of Terminal 4 at New York’s JFK Airport with some incredible new features for travelers. Among the most exciting features are the 24,000 square foot Sky Club, an open-space TSA checkpoint, and the unparalleled Sky Deck.

Doreen Baron of Delta NYC, and Harry Olsen, the on-site program director, were kind enough to give us a behind the scenes look at what Delta has in store for their loyal fliers.

Harry and his team have been diligently working on T4 over the past two years, and their efforts to make Delta’s presence at JFK shine more so than before are immediately obvious. Delta has check-in kiosks conveniently located upon entry to the terminal, even manned kiosks curbside for preferred travelers, and they’ve installed a sharp red-walled area for Sky Priority members to check-in quickly.

Proceeding through check-in reveals a short walk to security, which is refreshingly open and actually appealing (as much as a TSA checkpoint can be); the multitude of lanes seems to lend itself to a speedy process. Security is within the main building, and the soaring ceiling and open space helps the area stand out from the typical claustrophobic experience.

Presented with a stunning closeup of the 320 foot high control tower after clearing security, passengers proceed through the open shopping area on the floor below while heading to their gates.

On the way they will pass by one of Delta’s most exciting additions, the new Sky Club.

The expanded concourse holds the new Sky Club lounge, which is 24,000 square feet in size and will hold two spa rooms, a cafe, multiple sitting areas, and a full service bar.

The main draw, however, is what’s happening outside, literally, on the Sky Deck.

The Delta Sky Deck will allow those with access to the Sky Club to enjoy the comings and goings of aircraft at JFK from an unsurpassed view, all the while enjoying the absolute finest service that the carrier has to offer. While we were there it was still being constructed but were told that it would hold up to 45 people at a time. While on the roof by the unfinished structure we were close enough to hear the planes touch down on the runway, and a sea of Delta tailfins were lined up at the gates behind us, almost within reach. Hands down frequent travelers will be amazed at the sights and amenities this new addition has to offer.

The new concourse also has good things in store for all regular Delta fliers as well; each seating area in the expanded terminal area includes multiple power ports and USB ports for each seat. There are no awkward power stations to be found here, glaring and huddled around by those hoping to get a last-minute charge before flight time. Instead there are only aesthetically pleasing seating areas built with convenience in mind from the outset for each and every traveler.

Delta clearly has an eye firmly fixed on the future of every flier’s wants and needs at JFK, and is clearly adept at meeting each and every one of them, aiming to keep every process speedy and comfortable. For an official rendering of what Delta’s put in place, watch the video below, and prepare to get excited about what the near future has to offer on your next trip through JFK.

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Justin Harrison is the Corporate and VIP Account Executive with SmartFlyer. You can learn more about SmartFlyer on Facebook and on Twitter @theSmartFlyer.

I’m busy enjoying some Maui onion rings right now, so I’ve lined up a guest post for your reading pleasure. Eric Starkman has read this blog for a long time and he had an interesting story to tell regarding outsourced call centers. Enjoy.
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Here’s a marketing tip you can take to the bank: companies that excel at customer service and engagement don’t outsource their call centers. And don’t just take my word for it. Here’s what Blake Nordstrom, CEO of the customer-centric retailer that bears his family name, told me when I asked why his company doesn’t outsource its credit card call centers:

“As merchants, we don’t profess to be bankers. We do feel strongly, though, that we work one on one with our customers and not have a third party in between to potentially jeopardize our relationship.”

JetBlue Airways understands the dangers of outsourcing customer service functions. Virgin America doesn’t. And therein lies a marketing tale.

I was once one of Virgin America’s most enthusiastic frequent flyers. The airline’s vaunted in-flight entertainment service didn’t do much for me, but I loved that it was among the first to offer Internet access, individual USB ports, and, at least initially, some pretty darn good food. In the early days, Virgin always also had an incredibly loyal and enthusiastic team of employees. Yeah, the company’s problem-plagued and error-prone online reservations system was a huge pain, but I was willing to tolerate the inconvenience.

My love affair with Virgin America soured last summer thanks to some employees who don’t actually work for the airline. Rather, they worked for the company that runs Virgin’s call center. I always dreaded having to deal with these employees because of all-too-frequent problems with my online reservations, but an incident relating to Hurricane Irene put me over the edge.

I was scheduled to fly from SFO to JFK the day after the storm was expected to pound the Northeast coast. I figured my flight would be cancelled, particularly since Virgin had posted a notice on its site saying it wouldn’t impose change fees for flights leaving days before or after Irene’s predicted arrival.

But the agent insisted on imposing the change fee, arguing that the notice (image above) made clear that the fee would be waived only if my scheduled flight was actually cancelled. The agent, whose disinterest and unprofessionalism was exceeded only by her incompetence, readily conceded that change fees are never imposed on cancelled flights, but still argued that I was misreading the notice. I asked to speak with a supervisor and was put on hold for more than an hour, only to have my call dropped. I’m still steaming about the incident.

Virgin America ultimately refunded me my change fee, but I was underwhelmed with the company’s handling of the situation. So, I decided to give JetBlue a try. And I was immediately blown away by the experience.

JetBlue doesn’t outsource its reservation call center, and that immediately became abundantly clear in my first interaction. The employee I called gladly and rather enthusiastically took care of a seating request, and, upon learning that I was a dissatisfied Virgin America customer, immediately seized upon the opportunity. Let’s just say that before the call ended, the guy had me enrolled in JetBlue’s frequent flyer program and signed up for its American Express card. That was no mean feat because I long ago had forsaken airline affinity cards.

Perhaps I’m flattering myself, but I think I’m a pretty desirable airline customer. I’m bicoastal and fly JFK-SFO return at least once a month. I always pay for an extra legroom seat. And I’m a pretty heavy credit card user, so JetBlue is doing all right by me on that front.

My favorable experience with JetBlue’s call center wasn’t a one-time incident. I recently had to change a flight and asked if the airline might be willing to waive its change fee simply because of my frequent patronage. And the agent, with the help of her supervisor, gladly did.

JetBlue’s decision not to outsource a critical customer service function on its own probably isn’t a marketing advantage. But the mindset responsible for the decision is likely the same mindset behind the company’s progressive HR policies and its dogged determination to interact with its customers even when they are pleased. I’ve yet to interact with a JetBlue employee who didn’t really like working for the company, and I’m incredibly impressed with the speed and personalization of emails I’ve received from JetBlue complimenting them on various persons who I have cited for exemplary performance.

Virgin America was once JetBlue’s equal on the customer service front and filled with employees who would go beyond the call of duty, but the company has lost its edge. I recently sat next to a veteran Virgin America pilot who readily shared my view. “[CEO David] Cush is just looking to take the company public so he can make his millions and get the hell out,” he said. The pilot spoke even less favorably about Cush’s deputies.

Maybe the pilot’s view is unfair or not even widespread, but I will tell you this: Wall Street loves outsourcing call center functions because on paper it dramatically can reduce costs. In reality, it can actually make it difficult for a company to attract or retain some high paying customers. Savvy investors would be wise to consider why JetBlue is planning on adding more lucrative extra legroom seats to its flights while Virgin America recently was offering heavily discounted rates for its extra legroom seats on Labor Day weekend flights.

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Eric Starkman is PRESIDENT of STARKMAN, a public relations and marketing firm with offices in New York and San Francisco. Earlier, he was a reporter with major newspapers in the US and Canada. He is a frequent flyer and an avid and longtime reader and supporter of this blog.

For those of you who read Dan Webb’s musings about the airline industry at Things in the Sky, you might be wondering where the blog went. Well, he’s going to work for an airline, so he told BoardingArea that he would be winding things up. They took the blog down before he had a chance to say goodbye. So, I was happy to volunteer this space for him (only requiring that he give me freedom to do what I wanted with photoshop…)

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Just about four years ago I was finishing up high school and decided to start writing about the airline industry. I was always interested in the business, and I had a domain name I wasn’t using, so I figured I’d give it a shot. I thought to myself that I would get bored with it after a while, but, well, here I am. Now I’m a college graduate about to enter the airline industry professionally, and as a result my commentary is wrapping up — my blog is already offline, and I just recorded my last episode with the Airplane Geeks Podcast. Brett has been very kind in allowing me to share a couple of final thoughts here.

Needless to say, it’s been a very busy four years, and all of them have allowed me to learn a bit more about how this crazy industry works. What I’ve learned the most is to expect (rapid) change. I started blogging in the middle of 2008. Since then we’ve seen the Northwest and Continental brands disappear. The amount of ancillary revenue generated by carriers has exploded thanks to bag fees.

American placed a massive Airbus order and also filed for Chapter 11 bankruptcy protection. Southwest acquired AirTran and ordered 737s with more than 137 seats. “Ultra low cost carrier” (ULCC) has become a new buzzword as airlines like Spirit have become successful. I really can’t think of an industry that’s as hectic and constantly changing as this one, which is why tracking it can be so addictive.

But I’ve also learned that there’s a wealth of information about the industry freely available to those who are willing to to put in some additional effort. The publicly traded companies have the usual SEC filings and earnings calls, of course, but the DOT has a load of information for free — whether it be taxi times at certain airports or operating expenses by aircraft type. It truly is amazing what one can learn as long as he/she has an internet connection. If you’re an enthusiast willing to expand your knowledge, I encourage you to put in the effort — you’ll find some amazing stuff!

Before I go, I need to give a special thanks to the whole aviation social media/Internet community — especially Brett. He added me to his blogroll just after I started writing, which gave me that little extra motivation to keep writing. There are many other people I should thank — including Her Royal Highness Queen Benet Wilson, my colleages from my internships at Flightglobal, and my co-hosts at the Airplane Geeks — but the list would be too long if I put everyone on it. If you’re sitting on the sidelines of this community, I encourage you to participate. I’ve met so many wonderful people over the past few years that have become close friends and have provided me guidance and advice that has proven to be invaluable.

To everyone who read my blog or tweets or listened to my bits on the Airplane Geeks — thanks for your support.

Getting back to speed with a new baby in the house isn’t easy, so I’m posting one more guest post today to help me catch up. (Besides, I need time to read through all the American Airlines changes as well as the FAA reauthorization bill for posts next week.) This one is from a familiar face . . .

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My frenemie Brett “Cranky Flier” Snyder begged me (ok, he just asked) to write a guest post for his tiny, insignificant blog. Normally, I would have just ignored Brett’s email (which I do 98.7% of the time). But he and his lovely wife delivered my baby avgeek niece or nephew, so I relented.

I had one of the best jobs in the world – airports and security editor for Aviation Week magazine. That, along with being a judge the past four years for Airports Council International-North America’s annual concessions contest and my extensive world travels going back to when I was 5, has given me a fine appreciation of what I like to see in airports when it comes to concessions.

I’m old enough to remember the days when airport concessions consisted of “Newstand,” “Restaurant,” “Snack Bar” and “Gifts.” but oh, how times have changed!! This change has come for two reasons.

One, as airlines have merged and cut routes and frequencies, they are paying airports less in landing fees and rent. Two, because of post-9/11 security changes, travelers are spending more time in airports, and they’re demanding more sophisticated food/beverage and retail options. So below are my five picks for airports doing great things with their concessions programs.

• Portland International Airport – This is a rare airport, in that they don’t contract with a big concession operator like HMS Host or Delaware North to handle their concessions. They use their own in-house team to come up with what I think is a near-perfect mix of local/regional and national brands. On the food side, they including the Laurelwood Brewing Co., Pizza Schmizza, Starbucks, and Panda Express. On the concessions side, there’s the iconic Powell’s Books, Columbia Sportswear, and The Oregonian news stand.
• San Francisco International Airport – I’ve had the chance to see my original hometown airport evolve over the years, and I love the changes. Among its treasures, this airport has a full-service medical clinic and a world-class art museum. As I write this, I haven’t been to the new Terminal 2, so nothing in there is in this post. But great food options abound: Andale Mexican Restaurant, Boudin’s Bakery and Café, Tomokazu and Peet’s Coffee. Retail options are U Threads (sells clothing and items from Bay Area universities), Aviator Books, Coach, and Ghiradelli.
• Phoenix Sky Harbor International Airport – This has always been one of my favorite airports because of features like free Wi-Fi, two pet parks, and one of the first cell phone lots in the country. Terminal 4 (home to Southwest Airlines and US Airways) has some great food choices: Blue Burrito Grille (restaurant and carry-out), Paradise Bakery and Café, Einstein Bagels and Quiznos. On the retail side, check out A to Z Kids, In Celebration of Golf, and See’s Candies.
• Chicago Midway Airport – I have actually scheduled some of my Southwest Airlines trips to go through Midway because I love the shopping options there. The main concessions area has an actual sense of place. Food choices include Harry Caray’s, Nuts on Clark (I’d kill for this popcorn), Ben & Jerry’s, and McDonalds. Available retail choices are House of Blues, Discover Chicago, and Kids Works.
• Dallas/Fort Worth International Airport – I did an insider’s tour of this facility a few years ago and had a grand time. This is a very passenger-focused airport, with concessions including free Samsung lounges (with seats, outlets and Wi-Fi) and the giant Shop 24 vending machine that sells everything from diapers to Caesar salads. I’m also a big fan of the La Bodega Winery, Cereality Breakfast Bar, Dunkin Donuts, and Au Bon Pain. Retail options include my beloved Bijoux Terner (everything is $10!), Natalie’s Candy Jar, Official Dallas Cowboys Pro Shop, and Bose.

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I appreciate Brett allowing me to blog on one of my favorite topics. You can follow my musings over at AviationQueen.com and follow me on Twitter at @AvQueenBenet.

I’m still out on leave, but I’ll be back soon. Enjoy this post about small communities . . .

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Over 70% of US airports with commercial air service are served exclusively by regional airlines. And almost all of those airports reside in or next to small or midsize communities. Unfortunately, both the communities and regional airlines face head winds in the coming years. New regulations coupled with the potential for additional taxes and reductions in subsidies will hamper the regionals’ ability to grow and operate with sustained profitability. This will have a direct effect on the small communities that regional airlines serve.

Most people have never heard of Pinnacle Airlines, ExpressJet Airlines, or Republic Airlines but have flown on them many times. An average regional airline flies turboprop aircraft or jet aircraft with less than 100 seats on a contract basis for mainline carriers such as United or Delta. Although separate companies, the regionals usually fly under the mainline’s brand such as Delta Connection or United Express. In most cases, Delta and United take care of scheduling, promoting, and selling tickets for the flights while the regional takes care of providing the primary product. Now, let’s hop into some of the issues.

One of the bigger impacts to the industry will be felt when new rules regulating pilot duty time kick in. (Cranky did a good job of breaking down this issue in a previous post.) These new rules were introduced to address ongoing concerns about pilot fatigue. Pilots will now work a little less and get more rest. This makes sense. Who doesn’t want a well-rested pilot at the controls?

But there is a flip side. The new rules governing duty and rest periods will force carriers to hire more pilots if they want to run the same schedules they have today. The savvy regionals will work diligently with their mainline partners to reoptimize schedules. But they will not be able to totally avoid higher pilot costs. Regionals will have to pass on the additional costs to their mainline customers to remain at current profitability levels.

Another new upcoming regulation will increase the minimum number of hours of experience a pilot needs to fly for an airline. Currently, a pilot only needs 250 hours along with a Commercial License to get hired with a regional airline. In a couple of years, this will increase to 1,500 hours and require an Airline Transport Pilot (ATP) certificate.

On the surface, this seems like a no brainer. More hours = more experience = safer flying. But there isn’t research proving that pilots with 1,500 hours consistently fly safer than someone with less experience. When this steep increase is implemented, it will create an artificial pilot shortage. Some pilots pay out of pocket or through loans to get to 250 hours. Getting to 1,500 hours on one’s own dime will push a bunch of would-be pilots out of the market. The shortage will push up wages to account for the lower supply and result in additional expenses.

In the fall of 2011, the Obama administration proposed creating a new $100 departure tax for all air carrier departures and general aviation jet departures. The proposal also increased security taxes on airline tickets and was given to the super committee for consideration. An impressive coalition of 30 organizations including airline trade groups, general aviation groups, unions, and manufacturers quickly got together to fight the proposal. The rally cry is that airlines and passengers already pay higher taxes than alcohol, tobacco and guns which are intentionally set high to discourage their use.

It appears that the White House quietly backed off the proposal because of the backlash it received during an election cycle. If the proposal was revisited and passed, it would have a disproportionate effect on regional airlines that carry fewer passengers each flight than their mainline counterparts. It’s much cheaper to spread $100 over 200 passengers than over 50.

Another debate in Congress has been the over subsidizing air service to small communities through the Essential Air Service (EAS) program. This program is designed to help provide small communities with air service that cannot, due to such low demand, support itself. I expect a haircut or possibly elimination of this program. Accordingly, many routes would cease to exist.

In isolation, each of these challenges would have a much smaller impact on the industry. Together, these policies would have significant negative economic effects and force airlines to cut flights on underperforming routes. And each flight lost in a small community has larger implications due to the community’s relative size.

These changes will burden an industry already struggling with consolidation and high fuel prices. Pinnacle is flirting with bankruptcy. SkyWest and Republic’s financials have been limping along since their acquisitions of ExpressJet and Frontier respectively. American Eagle’s anticipated spinoff from American Airlines will increase competition in an already saturated market. We’re seeing a steep decline in small jets which don’t work with today’s fuel prices. Turning a good profit in the regional industry is proving difficult even while their mainline counterparts are starting to enjoy being in the black.

Some municipalities and the airlines will come up with creative solutions to mitigate the effects. They will also need to continue lobbying the government to implement policies that have positive economic effects. Regardless, it appears that the end result will be fewer options in small communities.

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Matt Tregre is an airline enthusiast and has held positions in finance, revenue management, pricing, customer service, and baggage tossing with stints at Southwest, ExpressJet, & Pinnacle. During school, he developed marketing plans for small airports. He now works in revenue strategies for a corporate aviation company and greatly misses having flight benefits.

[Original photo via Wikimedia Commons user Paranomia/CC 3.0]