Chicago seeks to soften airline resistance to O'Hare mega project

Chicago's trying to thaw relations with United and American Airlines over modernizing O'Hare while suburban leaders are seeking to heat up interest in a related project - western access to the airport.

The city is in the midst of building or extending runways at O'Hare to reduce congestion along with a western terminal.

But American and United, that could get competition from a new terminal, questioned the need for the facility and balked at increased rent and landing fees imposed by the Chicago Department of Aviation to help pay for construction loans. The carriers called the city's plan to accelerate debt payments on loans not due until 2030 irresponsible. In February, the airlines halted talks over funding O'Hare modernization but recently Aviation Commissioner Rosemarie Andolino extended an olive branch.

"We would rather find a path forward that both the city and the airlines can agree on," she wrote April 15.

Her letter speaks of increasing the use of passenger facility charges, which are ticket fees of $4.50 per passenger, to pay for construction. It also suggests the city is open to reducing the rent and landing charges in exchange for a deal on funding the final phase of O'Hare improvements.

"In the context of such an agreement, the city may also come to an agreement regarding a midyear modification of 2010 rates and charges," Andolino wrote.

Apparently, the airlines are still thinking the offer over.

United spokesman Michael Trevino said "we remain open to discussing a fiscally responsible plan for funding the completion phase. We will be happy to consider a proposal. We have maintained we're for the runways and that will continue to be our position."

American Airlines spokeswoman Mary Frances Fagan, however, said there were no negotiations and "there haven't been for six months. We want the city to stop the forced payment of debt service that's not due until 2030."

O'Hare Modernization Program spokeswoman Eve Rodriguez said the city continued to hold conversations with its airline partners.

While a western terminal may be anathema to United and American, it's a long-sought after dream for the western suburbs that goes in tandem with extending the Elgin O'Hare Expressway east from its terminus in Itasca into O'Hare.

I stopped by a news conference Wednesday that included DuPage and Cook officials along with business and labor representatives. The intent was to lobby the state and Illinois State Toll Highway Authority to prioritize the expressway extension along with construction of a western bypass around the airport connecting with I-294 to the south, the EOH and I-90 to the north.

Funding for the $3.6 billion mega-project is lacking, which is why "it has to be built as a tollway," DuPage County Board Chairman Robert Schillerstrom said.

Towns along the path of the Elgin O'Hare extension are betting a highway into O'Hare along with a western terminal will be a gold mine, spurring hotels, retail and corporate development. Schillerstrom and others like Illinois Chamber of Commerce President Doug Whitley estimated the project will create about 44,000 new jobs.

But with the airline friction and sour economy, Chicago officials indicated lately that while they intend to complete the runways by 2014, the terminal could wait.

Last week, suburban officials said they're hopeful but flexible about the western terminal but called western access into O'Hare with parking and transportation to existing terminals crucial.

Schillerstrom commented that, "I haven't heard anyone say there won't be a western terminal. The only question is when. Obviously we'd like it sooner than later."

"Half a loaf is better than none," Wood Dale Mayor Ken Johnson said.

How would folks get from the western entrance of O'Hare to the terminals? A people-mover would be ideal, Schillerstrom said, but he noted "a lot of airports use high-grade buses that work well too. We want it to be as seamless as possible."