United, American Agree to Delay Chicago O’Hare Suit
United Air Lines and American Airlines said they’ll slow the pace of a lawsuit seeking to delay a $3.4 billion expansion of Chicago’s O’Hare International Airport in hopes of reaching an accord with the city.
United, a unit of Chicago-based United Continental Holdings Inc., today issued a joint statement with American saying they agreed with the city to delay by five days an Illinois state court case in which they sought to stop the sale of bonds to finance the expansion.
“The delay, requested by the U.S. Department of Transportation, is aimed at affording the parties time to engage in discussions to explore alternatives to the litigation,” the carriers said.
United and American, a unit of Fort Worth, Texas-based AMR Corp., are the city’s primary tenants at O’Hare, the second- busiest U.S. airport, and account for 80 percent of its passenger traffic.
The airlines, which filed their lawsuit on Jan. 18, argue that O’Hare passenger traffic has declined in recent years, lessening the urgency for a project that includes realigned runways and a new terminal.
New Dates
The agreement delays arguments set for Feb. 14 on a city motion to dismiss the suit and a Feb. 22 and 23 hearing on an injunction sought by the airlines.
Cook County Circuit Court Judge Richard Billik will now hear arguments on the dismissal request on Feb. 22 while the latter hearing will now start on March 1, the airlines said.
A meeting in Washington yesterday between airline representatives, Mayor Richard M. Daley and U.S. Transportation Secretary Ray LaHood, a former U.S. Representative from Illinois, failed to resolve the dispute.
In an e-mailed statement confirming the postponements, Jennifer Hoyle, a spokeswoman for the city’s law department, said as a result of the meeting, “today the city and the airlines appeared in court to temporarily suspend litigation activities so that further discussions may continue.”
Illinois Senators Dick Durbin, a Democrat, and Mark Kirk, a Republican, said the temporary delay of the lawsuit is “a positive development,” according to a joint e-mailed statement.
“This development allows for more time to find common ground and could prevent a costly legal battle and construction delays,” they said. “Finding a solution that ensures project construction -- which support thousands of local jobs -- continues is essential to future economic growth in Chicago.”
The case is United Air Lines v. The City of Chicago, 11ch02081, Cook County, Illinois Circuit Court, Chancery Division (Chicago).
To contact the reporter on this story: Andrew M. Harris in Chicago at aharris16@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
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