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Thread: ORD Secret Deal

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    ORD Secret Deal


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    http://www.chicagotribune.com/news/l...228-story.html

    American Airlines opposes Emanuel’s $8.5B O’Hare expansion, alleges secret deal cut with United

    February 28th 2018

    American Airlines Group Inc. is crying foul over an $8.5 billion renovation of Chicago’s O’Hare International Airport, claiming a “secret provision” awards additional gates to United Continental Holdings Inc.
    Hours before Emanuel was expected to formally introduce to aldermen the blockbuster proposal to build a state-of-the-art global terminal, dozens of new gates and several additional concourses, American voiced the first public opposition to the plan from O’Hare’s airline carriers.
    “American Airlines is excited about seeing O’Hare transformed into an airport that sets the global standard in airline passenger experience and efficient operations. And, after 18 months of multilateral, transparent negotiations, we were looking forward to supporting the new lease,” said Leslie Scott, the airline’s senior manager of global communications. “But American cannot sign the lease in its current form because of a secret provision, inserted at the last minute, awarding additional gates to United.”
    It’s unclear whether the city would move forward with a new lease agreement if American refuses to sign on. In December, Emanuel and aldermen passed an ordinance setting higher airport fees and charges for airlines if the current 35-year lease were to expire in May without a new one in place. The move was made to provide an incentive for the airlines to reach an agreement on a new lease — to avoid paying even higher fees than a new lease would contemplate.
    An Emanuel spokesman issued a statement Wednesday calling the mayor’s plan “a win” for Chicago, travelers and the airlines.
    "The plan being introduced to council today ensures every airline has the chance to grow, but most importantly it ensures that O'Hare grows and that Chicago grows,” Emanuel spokesman Adam Collins said. “This is about positioning Chicago to compete with Beijing, Paris and Abu Dhabi, not about positioning in the decades-old competition between two airlines. We are going to add more gates, build a new global terminal, improve runways and create 60,000 jobs in the process.”
    Leading much of the day-to-day negotiations on the O’Hare deal has been Aviation Commissioner Ginger Evans, who laid out the details of the proposed eight-year overhaul in an exclusive interview with the Tribune published Sunday. At that time, representatives for both United and American released statements expressing optimism about a major expansion of O’Hare while declining to discuss details, citing the ongoing negotiations.
    Since then, American has been unsuccessful in getting Emanuel to sign off on a compromise it has argued would create a more fair balance between O’Hare’s two hub airlines.

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    Damn, I thought you were going to teach me the secret fist bump to get a sweet deal on Miguel's breakfast burrito at Burrito Beach...then I forgot it was closed for renovations.

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    AA has always been second fiddle to United at ORD and is likely to shrink further as the operation there becomes smaller. Not good for flows who want ORD long-term career-wise. Soon only 2 fleet types there (787,737) and the rest RJ’s. AA has too many hubs now and will likely trim a few over the next few years. BOS, STL and perhaps PHX might disappear and of course, AA waving the white flag in NY is another indication of a carrier consolidating and downsizing, but that was the plan all along with the “synergies” of the merger.

    Kirby in the Captains seat at ORD, while Parker (his former boss) is doing the walk around.
    Last edited by Beagleboy; 02-28-2018 at 07:22 PM.

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    Wktwh

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