O'Hare expansion plan moving forward after United, American agree to city's new timetable

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The massive expansion of O'Hare Airport appeared to be cleared for takeoff on Friday after United and American Airlines, the airport's two major carriers, signed off on Mayor Brandon Johnson's plan to salvage construction of a global terminal and two satellite concourses that, airline officials feared, was $1.5 billion over budget.

To cut costs and appease the two major airlines footing much of the bill, Johnson has proposed a major change in the order of construction.

The new agreement will allow the city to proceed with construction and operation of the first satellite concourse while planning a phased construction of the global terminal that would replace existing gates at what is now Terminal 2. Construction of the second satellite concourse and the tunnel connecting both new satellite concourses would be completed only if sufficient funds remain after other work is finished.

After receiving regular cost estimates from the city, the city will need approval from United and American before either cutting the scope of the project or spending more than $6.1 billion.

For weeks, United and American have been mulling the mayor's offer. They were still considering it nearly two weeks ago, when Johnson joined forces with U.S. Sens. Dick Durbin and Tammy Duckworth to announce the start of a $300 million plan to upgrade Terminal 3 at O'Hare.

The ceremonial groundbreaking to announce the start of the renovation of Terminal 3 at O'Hare Airport on April 22. A trough of dirt was brought into the terminal and dignitaries tossed shovels of it onto the concourse floor. Airport workers later swept the dirt back up. Wielding the ceremonial spades were (from left): Sen. Tammy Duckworth, D-Ill.; Sen. Dick Durbin, D-Ill.; Chicago Mayor Brandon Johnson; Jamie L. Rhee, commissioner of the Chicago Department of Aviation; U.S. Rep. Chuy Garcia, D-Ill.; U.S. Rep. Danny Davis, D-Ill.; and Shannetta R. Griffin, associate administrator of the Federal Aviation Administration.

Jim Vondruska/Sun-Times

The global terminal, designed by the firm of renowned Chicago architect Jeanne Gang, would allow passengers to transfer from domestic to international flights without using Terminal 5, the current international terminal.

On Friday, the mayor finally got the answer he wanted to hear: a thumbs-up from both airlines.

In a statement, United said it was pleased the city had "put forth a phasing plan" to ensure money is "first spent on the mission-critical portions" of the expansion. The global terminal "has always been the centerpiece of this program and the crucial piece needed to ensure Chicago maintains its status as a global hub. Under this new phasing plan, we can deliver the most impactful elements of the modernization project the quickest."

United is looking forward "to collaborating with the Mayor and his aviation department on the budget, scope and design of the project," according to the airline's statement.

American's statement said the Dallas-based airline was "pleased to support the city's proposal to move forward with the Terminal Area Plan … in a way that protects the competitiveness" of O'Hare.

Without saying when the long-stalled next phase of the O'Hare makeover would begin, American said it looks "forward to enhancing the travel experience for our customers, improving the efficiency of our operation and creating thousands of jobs for Chicagoans."

American's statement thanked Johnson "for his commitment to phase the project in a way that prioritizes the Global Terminal and the most impactful elements" of the expansion plan.

"The path ahead will be challenging, and we'll all need to continue working together to get this project completed within the allotted budget. "

In a statement, the mayor's office said it was "thrilled" that the expansion, which will "bring benefits to the traveling public sooner, while providing thousands of jobs and contracting opportunities to Chicago," will proceed.

"We are extremely grateful to United Airlines, American Airlines, and other federal, state, and local stakeholders for their valued and trusted partnership."

The Chicago Sun-Times reported in late November that United and American were balking at a global terminal and two satellite concourses, fearing that the overall project already was 24% over budget.

To salvage the next major phase of the O'Hare makeover project, Johnson proposed the change in construction sequencing. Durbin resisted, unwilling to delay the 25% increase in gate capacity at O'Hare.

Although the global terminal would be "the first of its kind to combine domestic and international gates," he argued that the increase in gate capacity would "overwhelmingly come from the two satellite concourses."

"If United and American airlines had it their way, they would delay the satellite terminals and build only the part of the project that benefits them and doesn't increase competition," Durbin wrote in an op-ed published by the Tribune.

United and American strongly dispute Durbin's argument. They contend that under the new lease, the more any airline flies, the more gates they get.

During the Terminal 3 news conference, Durbin said negotiations were "in a better place" and signaled a deal was near.

"We have a proposal that will reach our goal of a 25% increase in [gate] capacity over the period of time that we wish," Durbin said on that day.

An expanded international terminal at O'Hare Airport adds 10 new gates, with new food offerings and other improvements. International flights also will use the new global terminal, which will replace the airport's Terminal 2.

Ashlee Rezin/Sun-Times

The Terminal 3 project, made possible by $90 million in federal grants, includes wider concourses, renovated restrooms, a revamped baggage claim area, more concession space and a host of other passenger amenities.

By Fran Spielman