Chicago’s two major airlines have agreed to the city’s proposed changes to the long-delayed major reconstruction of O’Hare International Airport, clearing the way for progress after months of negotiations.
In separate statements Friday afternoon, both United Airlines and American Airlines said they support plans outlined by the city in early April to change the construction order of the new global terminal and two nearby satellite concourses. Ta. The original plan was to build two satellite concourses to add gate space for airlines to replace the aging Terminal, which was rebuilt as a shiny new global terminal. In the April plan, the city proposed relocating Global Terminal in April 2020. This is a construction order.
According to United Airlines, the current plan allows the city’s aviation department to proceed with construction of the first satellite concourse while planning phased construction of the global terminal. If enough funding remains, the aviation authority will move forward with construction of a second satellite concourse and a tunnel connecting the two concourses, United said.
Both airlines, which are paying most of the construction costs, were pushing for a change in the construction order to ensure the new terminal was not under threat of going over budget. This approval sets the stage for a key part of the airport’s reconstruction to proceed. The airport’s reconstruction is behind schedule and mired in months of contentious negotiations as airlines resisted rising construction costs.
“We are pleased that Mayor Johnson and his Office of Aviation have submitted a phased plan that ensures that (the project) funds are spent first on the mission-critical parts of the program: O’Hare Global Terminal and Satellite 1. “I think so,” United Airlines said. said in a statement. “Global Terminal has always been at the heart of this program and a critical part of Chicago’s need to maintain its status as a global hub. Under this new phasing plan, the most impactful elements of the modernization project will be We can provide it as soon as possible.”
American Airlines also praised the mayor and the new plan, saying it reflects the proposal moving forward “in a way that protects O’Hare’s competitiveness.”
“The road ahead will be difficult, and we must all continue to work together to complete this project within the allocated budget,” American said in a statement. “Keeping our customers, our teams, and the enduring vitality of our Chicago hub in mind, we are working with all stakeholders to move forward with the project with a firm commitment to delivering a modern airport that Chicago can be proud of. “We will proceed with caution and monitor costs to maintain O’Hare’s position as a critical connectivity hub in our global network.” ”
The terminal work is the centerpiece of a major overhaul of the airport, which is a key part of the city’s economy and the hub of the country’s aviation system, with an initial budget of $8.5 billion when the airline approved the review in 2018. It was estimated at $. Construction will feature a towering 2.2 million square foot Global Terminal, designed by a team led by architect Jeanne Gang, which will more than double the space of the current Terminal 2 and add gates. was. It will also allow travelers to move more seamlessly between domestic and international flights.
But the project fell far behind schedule as costs, mostly covered by municipal bonds backed by airfares, ballooned. The airline said at one point last year that it had received a cost estimate for terminal work alone that was $1.5 billion more than its 2018 budget.
A proposal to rearrange the construction order of the Global Terminal and satellite concourses was initially heavily criticized by Sen. Dick Durbin, who argued that changing the order would indefinitely delay or reduce the second satellite concourse. I was concerned that this could happen. But a few weeks later, he reversed course and gave the plan a vote of confidence, saying: “We’re in a better place.”
“There have been efforts to increase the conversation,” he said at the time. “I think we have a proposal that will allow us to achieve our goal of increasing production capacity by 25%.”
Mayor Brandon Johnson’s office did not respond to Tribune questions Friday about the updated project budget, when construction would begin, or whether any other changes had surfaced. But his office said in a statement that it was “thrilled” to announce that the airline had accepted the city’s proposal, adding that prioritizing the global terminal would “bring benefits to the traveling public more quickly and at the same time… “It will provide thousands of jobs and contract opportunities for Chicago.”
“Today’s announcement is a major step forward in the growth of O’Hare and the Chicago region as an important hub for travelers from around the world,” the statement said.
Earlier this week, the LaGrange-based Illinois Economic Policy Institute said that if the O’Hare project is completed as originally planned, it could generate $18.4 billion in economic activity and create 95,000 jobs by 2033. I discovered that there is a sex.
As planned, the project will create 1,600 jobs, including 400 directly working at the airport, and generate $39 million in state tax revenue and $24 million in local tax revenue once construction is complete, according to the report.
But IEPI economist Frank Manzo said reducing the scope of the project or delaying it further could impact those numbers.
“Reductions or delays in construction would not only reduce the impact and have the potential to harm the local economy, but also undermine O’Hare’s status as the world’s busiest airport,” he said. It could be dangerous.”
Any future changes to the scope of the project or budget overruns would have to be approved by the airline under the terms of a 2018 agreement with the city.
