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United and American Airlines Sue Chicago

The Giant Noodle

The Giant Noodle

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A passenger plane takes off at O'Hare as work continues in foreground on the runway expansion project. (Chris Walker/Chicago Tribune)
United and American Airlines on Tuesday made good on their threat to sue Chicago to stop the city from issuing bonds to finance the remainder of the expansion project at O’Hare International Airport.

The airlines, which say they cannot afford to help pay for new runways that will not be needed for years, filed the lawsuit in Cook County Circuit Court just days after sending a letter on Friday to Mayor Richard Daley, asking for negotiations on the future of the O’Hare Modernization Program. The letter said the expansion must proceed based on future increases in flights.

“We do not want to litigate with the City of Chicago, where we directly employ 23,000 and bring in and out millions of customers a year. Regrettably, the city will leave us no choice, however, if it proceeds to prepare for the issue the bonds for this project,” said the Jan. 14 letter, signed by Thomas Horton, American’s president and chief operating officer, and Pete McDonald, United executive vice president and chief operations officer.
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http://chicagobreakingbusiness.com/2011/01/united-american-to-city-well-sue-over-ohare-bonds.html
 
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I bet there are still many who hate Daley for what he did to Meigs Field.
 
The Giant Noodle said:



United, American: We’re suing city over O’Hare bonds | Chicago Breaking Business
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Officials from the airlines say the city is violating the lease agreement at O’Hare that gives the carriers authority to review and approve expenditures for capital projects. They said the cost of increased borrowing that would be imposed on the airlines in the form of higher landing fees and other charges would restrict their ability to expand service in Chicago.

“We don’t need to spend the money now,” an airline official said Tuesday, adding that the number of flights at O’Hare are 5 percent lower than 2003 levels.

There was no immediate reaction from city officials.
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When will it ever end? I thought Daley was nutz from the beginning on this project. And look at the numbers! 5% lower than 2003 numbers. Bensenville has been absolutely destroyed using imminent domain. I feel very sorry for those who live in that town that have to pick up the tax burden to keep their police/fire/city services sans hundreds of homes. It's a freakin' ghost town. 5% lower than 2003!!!!!
 
The airlines, which say they cannot afford to help pay for new runways that will not be needed for years, filed the lawsuit in Cook County Circuit Court just days after sending a letter on Friday to Mayor Richard Daley, asking for negotiations on the future of the O’Hare Modernization Program. The letter said the expansion must proceed based on future increases in flights.
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WTF?!? This should be a decision of the airport, not the city.
 
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