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Delta to begin $1.2B overhaul of JFK hub

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NEW YORK — Delta Air Lines Inc. plans to renovate a terminal at New York's John F. Kennedy International Airport and demolish another as part of a $1.2 billion overhaul of one of its hubs for overseas flights.

The financing includes $900 million in special-project bonds, as much as $215 million in passenger facility charges and at least $75 million in equity from Delta, Susan Baer, aviation director at the Port Authority of New York and New Jersey, said Thursday. The port oversees the airport.

Principal and interest on the special-project bonds will be paid through airline rent to John F. Kennedy International Arrivals Terminal, a corporate entity created by the Port Authority to be responsible for retiring the debt. Several airlines will be paying rent to use the renovated terminals' gates, said Steven Coleman, a Port Authority spokesman.

Delta will begin work next month and finish by mid-2013.