CHICAGO (AP) — The city of Chicago and two major airlines have reached a nearly $1.2 billion agreement that resolves many, though not all, longstanding disagreements over the further expansion of O'Hare International Airport, city and federal authorities announced on Monday.
That means the construction of an additional runway
can begin soon at O'Hare, one of the world's largest airports and a vital U.S.
air traffic hub, though questions about timing and the pace of other planned
work still must be ironed out.
"Making improvements to O'Hare will not only
reduce flight delays and improve service for air passengers across America, it
will ensure one of our busiest airports continues to thrive economically in the
future," Transportation Secretary Ray LaHood said in statement.
United and American had filed a lawsuit in January
accusing Chicago of violating a lease agreement giving airlines authority to
approve expenditures for capital projects. Chicago Mayor Richard Daley
countered that the airlines reneged on a 2001 promise to help see through the
overhaul of O'Hare — which is expected to have a final price tag of around $15
billion.
Monday's statement didn't break down just how much
of the expansion bill each airline had agreed to pay or just where the money
would come from. It also wasn't immediately clear if the deal put the brakes on
the airlines' litigation.
But American Airlines CEO Gerard Arpey hailed the
agreement in the same statement, saying it takes into account the hard economic
realities faced by carriers.
The sides, he said, "have crafted a plan that
recognizes the turbulent conditions of our industry and allows us to continue a
dialogue with the city over the best timing and pacing of construction going
forward."
The expansion of O'Hare is a signature project from
Daley's 22 years as mayor. And Daley, who did not run for another term, has
scrambled to ensure one of his favorite projects doesn't grind to a halt as he
prepares to leave office this spring. In February, Daley held a meeting with
wary airline executives in Washington, D.C., in a gathering brokered by LaHood.
But it ended without a deal.
Mayor-elect Rahm Emanuel has supported O'Hare
expansion, and he welcomed word of a deal on Monday.
"Today's agreement is a victory for the
economic future of our city, our state, and our region," Emanuel said in a
statement shortly after the deal was announced.
City officials have argued that finishing a second
phase of expansion, which was also supposed to include a terminal, will help
reduce delays in Chicago and throughout the U.S. air transport system.
The first phase of the project culminated with the
completion of a new runway and a control tower in 2008. A plane carrying Daley
and other VIPs was the first to officially touch down on the concrete as part
of runway-opening ceremonies.
Airlines, however, balked at footing most of the
bill for more upgrades, saying they will benefit little. Daley had responded
that the airlines were being short-sighted. At one point early this year, he
even suggested that the airlines have been biding their time until he leaves
office.
Copyright 2011 The Associated Press.
(AP
Photo/M. Spencer Green)
