Leaked internal documents suggest Delta has a plan at LAX to introduce more premium capacity and travel experiences for customers.

Delta’s internal notes suggest expanding plans at LAX

Los Angeles LAX is an airport where historically no single carrier has had a dominant position. Each of the major airlines has a hub at LAX, and while each have attempted to advance their position in the past, not much progress tends to be made. Once again, one of the major airlines is taking another stab at seizing the market.

Aviation watchdog JonNYC recently leaks notes about Delta’s strategy at LAX.

Delta has a once in a generation opportunity to accelerate leadership position at LAX. American, historically the leader, stepped back in recent years. AA has shed 10 points of corporate share and has a disruptive six-year terminal renovation underway. Meanwhile, Southwest is pulling back, JetBlue has shrunk to half its former size, and Alaska is shifting focus to San Diego. United is the only remaining viable competitor but is limited by gate constraints and sub-par facilities for the foreseeable future.

American is indeed in the midst of its disruptive terminal makeover. A makeover which is still–best case scenario–2 years away from completion. The airline is also in a bit of an identity crisis. For years, its focus was competing with now-extinct Spirit Airlines and losing the premium battle to both United and Delta.

Similarly, JetBlue has had its own issues with a major retraction on the west coast, especially at LAX. Los Angeles is important for JetBlue’s Mint service. But with the focus now on purely LAX and not the surrounding region, it’s hard to make headways at convincing those living in LA to use JetBlue for anything other than an occasional trip to the east coast.

And Southwest’s identity crisis is also well-documented. The airline seemingly taken over by an activist investor that cared more about getting a quick buck than any of Southwest’s culture and plans. Southwest started the process of entering the premium market but at this point is decades behind everyone else.

Delta building a second Delta One Lounge at LAX and another Sky Club

In a move that may annoy Delta flyers elsewhere, Delta is looking to add another Delta One Lounge at LAX. We don’t expect it to be linked to Delta’s excellent check-in facility dedicated to Delta One and select SkyTeam premium customers. We also wouldn’t expect it to be taking over any part of current Delta’s Sky Club, which we’ve considered to be among the best domestic lounges out there.

Rather, Delta has a space they’re currently not using. The Delta Sky Club in Terminal 2 was somewhat an overflow for their main Delta Sky Club. However, it has since closed and just sits there collecting dust. Could this become the Delta One Lounge?

When we were last at the Delta One Lounge at LAX a couple of months ago, there was more crowding than when we first arrived. If Delta has plans at winning more of a share of premium travelers, it will need more capacity than its current lounge holds. Delta could turn the lounge above into that space if they don’t keep it as a Sky Club.

Delta’s plans include a second Delta One Lounge to open in 2027 and a second Sky Club to open in 2028. Given the timeline, it might seem more realistic for this old Sky Club space to be a Delta One Lounge. However, we won’t know until the date approaches. Alternatively, there is the old Virgin Atlantic lounge space that isn’t used. Delta could acquire that and convert it to whichever lounge doesn’t go into their old Sky Club location.

They could position the current Delta One Lounge as better for those originating at LAX given the connected check-in facility. This secondary Delta One Lounge could be better for connecting travelers.

Delta could also use a second Sky Club. While crowding hasn’t been as much of an issue of late, if the carrier wants to grow at LAX, it will need more space to fit customers. Operating a second Sky Club, then, seems like a logical inclusion.

Delta wants to expand its premium route network out of LAX

Delta recently introduced long-haul flights out of LAX to destinations like Hong Kong and Melbourne, Australia. But Delta’s international plans don’t stop there. The airline is interested in launching flights out of LAX to Manila, making Auckland a year-round route, expanding Shanghai to daily service, and a flight to Seoul. Los Angeles should be an excellent hub for flights to Asia and the South Pacific, and perhaps Delta finally realized it.

In reality, Delta was pushing its attempts at expansion over the Pacific through Seattle, where it’s entrenched deeply with competitor Alaska. One of the main selling points Delta had over Alaska was its international network. Now that Alaska is branching out to international flights (thanks to its purchase of Hawaiian), perhaps Delta has acquiesced a bit at Seattle.

On top of international expansion, Delta has plans to grow domestically as well at LAX. The airline recently introduced nonstop service to Chicago ORD, frankly long overdue. Both United and American dominated the route given both airlines consider both LAX and ORD to be a hub. However, if Delta wants to be serious about taking over the #1 spot at LAX, it needs to compete against routes dominated by their competitors.

Delta had planned for an upgrade of its transcontinental business class cabin serving the LAX-JFK route, but recent reports suggest its plan for the A321neo premium seating layout is indefinitely on hold. On top of that, it’s having some operational reliability issues operating the route. Among other things, this is an important route for Delta to correct for its premium plans for LAX to be successful.

What do you make of Delta’s plans at LAX?

Suggested reading:

• ATL-LAX Becomes A Delta One Route: The Good, The Bad, And The Ugly
• Review: Delta One 767-300ER LAX-JFK
• Will New Delta Business Suites Be A Game Changer?