American Airline has refused to sign a new lease for an expanded O’Hare International Airport in Chicago, indicating that fellow tenant United Airlines is being given preferential treatment through the “secret” provision for extra gates.
These claims have been vehemently denied by United, who have stated that the agreement for the gates was made more than 18 months ago. According to a United spokesman: “American has been aware of our agreement for over a year and has worked to block the implementation at every opportunity.”
American said it is exploring its next steps and that it wouldn’t sign the lease in “its current form because of a secret provision, inserted at the last minute, awarding additional gates to United.” The “United gate deal creates a clear winner, United, and clear losers: namely, competition, Chicago travelers and American Airlines,” the statement went on to say.
The US$8.5 billion expansion would increase gate capacity at the airport by a quarter. The airport currently has 184 gates, and Airlines would contribute to the project through payment of landing fees, terminal rent and additional fees.
O’Hare is America’s third-largest airport by passenger traffic and United and American are the top two tenants. The feud is raising questions about the airport’s overhaul.
American has indicated it would compromise and sign the lease without the provision. The airline, the world’s largest, said it has urged Chicago officials to build three additional gates for American to “re-level playing field.”
According to Henry Harteveldt, a travel analyst and founder of consulting firm Atmosphere Research Group, these five gates could mean “30 or 40 flights a day,” so he understands that American wants to get some additional gates to ensure they are competitive.
Photo: O’Hare Intl. Airport/Flickr
