American, United rivalry boils over in lawsuit on O’Hare gates

An already fierce competition between United and American airlines for passengers at O’Hare International Airport has ratcheted up with a federal lawsuit against Chicago.

American Airlines is suing the city claiming it breached a 2018 agreement by initiating a gate redistribution that would benefit United and to its detriment.

“American is committed to keeping O’Hare competitive, as our presence yields more extensive flight schedules and lower fares for our Chicagoland customers and travelers from across the world,” the airline said in a statement.

“That’s why we’re taking action against the Chicago Department of Aviation’s premature trigger of the reallocation of gates at O’Hare — the timing is not only a violation of the agreement signed in 2018, but it unfairly upsets the competitive balance at O’Hare by making it more difficult for us to grow.”

City officials said Friday they had “no comment as the matter concerns pending litigation.”

Meanwhile, United’s lawyers on Monday asked the court to intervene in the lawsuit.

“What American Airlines has dressed up as a contract claim against the city in fact amounts to a desperate attack against American’s chief rival at O’Hare, United,” according to a filing.

“United has invested more and flown more at O’Hare than any other airline. As a result, under the gate redetermination process provided for in the airlines’ contract with the city, United is entitled to additional gates at O’Hare,” the filing read.

The dispute dates back to a 2018 city agreement with United and American airlines that allowed for a major redo at O’Hare, including replacing Terminal 2 with a new international one.

The pact lets the city reallocate gates based on historical activity at the airfield and “ensures that gate resources are used efficiently, fostering competition at O’Hare” that benefits consumers, CDA officials have said.

American contends the city is breaking the contract by prematurely taking away about four of its gates and awarding about five gates to United.

American has been activating new gates at an expanded L Concourse in Terminal 3 since 2018. The most recent ones weren’t operational until mid-March, and the contract allows for a “ramping-up” period of a year after a gate is operational, which the city has violated, the airline said.

As a result, American will lose gate space at O’Hare and suffer substantial damages, attorneys said in the lawsuit filed May 2.

“American is committed to keeping O’Hare competitive, as our presence yields more extensive flight schedules and lower fares for our Chicagoland customers and travelers from across the world,” the airline said.

United President Brett Hart told employees this week that O’Hare is falling behind other major hubs and “that’s why we’re prepared to challenge any effort to obstruct, delay or deny our growth at our hometown airport.”