Midway goes private, gets new lease on life

The city of Chicago will be flying solo when it comes to airports next year.

Officials confirmed Tuesday Chicago has struck a deal to privatize Midway Airport for $2.52 billion. The long-term lease will last for 99 years.

The company taking over the airport is Midway Investment & Development Corp., a coalition of YVR Airport Services Ltd., Citi Infrastructure Investors and John Hancock Life Insurance Co.

YVR handles 18 other airports, including Vancouver International Airport.

The Chicago City Council is expected to vote on the plan Oct. 8 and, if approved, it will go into effect in early 2009. The Federal Aviation Authority and the U.S. Transportation Security Administration must approve the transaction, also.

Passengers should experience a seamless transition, said Lisa Schrader, a spokeswoman for the city's budget office.

"It should be transparent," Schrader said. "We do expect passengers to see service improvements."

Chicago still operates O'Hare International Airport, one of the world's busiest facilities, which is in the midst of an ambitious expansion plan. The city will continue to provide police and fire service to Midway.

Midway isn't the only asset the city has relinquished. In recent years, Chicago also privatized its parking garages downtown and the Chicago Skyway.

The money Chicago obtains from the lease will go toward capital work, pension funds and bridging a major budget gap.

Chicago Mayor Richard M. Daley said the windfall comes at a crisis point in the economy and will provide more than $1 billion for infrastructure repairs.

The city first sought to privatize the Southwest Side airport in late 2006 and chose Midway Investment from among six applicants.

Major airlines at Midway also needed to endorse the change. So far Southwest Airlines, AirTran Airways, Delta Air Lines and Northwest Airlines have agreed.