United and American airlines want to ground — or significantly scale back — the massive O'Hare International Airport redevelopment designs.
The change comes after the airlines signed an agreement to foot much of the bill through increased gate fees. But now the airlines say the project is over budget, and pandemic-era losses put them at a disadvantage. Will the elaborate Jeanne Gang-designed Terminal 2 ever take flight?
Originally budgeted at $8.5 billion, the expansion is now reaching $12 billion. The most extensive part of the project is the 2.2 million-square-foot O’Hare Global Terminal, replacing what is now Terminal 2.
These rising costs are now a high concern for United and American who say they are still committed to the project.
Mark Denzler, president and CEO of the Illinois Manufacturers’ Association, said that if plans go through as originally intended, it would double O’Hare’s current enplanement cost of $26. By comparison, New York’s JFK International has the highest rate at almost $33.
Joe Schwieterman, a professor at DePaul University who specializes in public policy, transportation and urban planning, said this dispute could lead airlines to take business elsewhere.
“The difficult part is O’Hare’s a two hub airline,” he said. “United and American funnel a lot of people through here that aren’t originating in Chicago, and they argue that the rising costs, it just be more cost effective to route pastures to other hubs.”
Denzler said in order to do this cost effectively, the city and airlines need to renegotiate the terms of the project, adding that he is glad the mayor’s office has been open to discussion.
“The agreement that they signed in 2018 also had a cost in it,” he said. “And so if that cost is 25% higher, it behooves all sides to sit back down and say, ‘Hey, what can we do?’ And again, it’s great to have this modern terminal, but most passengers want to be able to connect their flights and get to their destination and do it cheaply.”
In a statement, Chicago Department of Aviation officials said, “We remain committed to the continued growth and development of O'Hare International Airport through O'Hare 21… Enabling work for the next phase of this vital infrastructure project began in March, the CDA remains engaged in consultation with airline agency and business partners on a complex phasing and implementation.”
Schwiterman says he believes there’s plenty of room for negotiations that can satisfy all sides.
“They really see that that global terminal is key,” he said. “The question is can we get that done cost effectively?”
