United Airlines has filed a motion to intervene in a lawsuit that American Airlines filed against the City of Chicago over an alleged breach of a lease agreement.
Last week, American Airlines filed a suit claiming that Chicago’s Department of Aviation had breached its lease agreement after a “gate redetermination” would give United Airlines five more gates while taking away four gates from American Airlines at O’Hare Airport. United has 88 gates, and American has 71.
The airlines are O’Hare’s two hub carriers, making up the airport’s most combined gate space.
On Monday, United Airlines filed a motion to intervene in response to American Airlines’ lawsuit.
“The lawsuit by American attempts to block the City from moving forward with its gate reallocation process and prevent United from using the up to six additional gates it expects to be awarded based on the Chicago Department of Aviation’s preliminary assessment,” a spokesperson with United said in a statement Tuesday.
In a letter sent to employees Monday, United Airlines President Brett Hart said the airline planned “to take steps to protect our interests and utilize these new gates to benefit our customers.”
“It’s clear that American has been neglecting Chicago for years and this meritless attempt to stop the City’s process from moving forward is merely a last-ditch effort to compensate for American’s well-documented lack of investment in their customers, O’Hare airport and the Chicago community,” Hart wrote in the letter.
American Airlines contends the city has breached the Airline Use and Lease Agreement, signed seven years ago, which included a $6 billion overhaul of O’Hare’s terminals. It also gave American Airlines “the opportunity to earn its fair share of gates at O’Hare before a gate redetermination could be triggered,” the airline says.
The agreement specifies a one-year “ramp up period” to allow all airlines to use newly constructed gates before shuffling gates. That period could be triggered by a few factors, most notably the completion of the three gates in Terminal 3, which weren’t operational until March 14, the lawsuit claims.
“This action represents our dedication to Chicago — our local customers, ORD team members and the Chicagoland communities we serve. It means we’re enforcing the agreement that we made in 2018 so that we can better serve Chicago,” a spokesperson at American Airlines said Tuesday. “We are asking the CDA to do the same to ensure the balance of the only dual-hub in the nation remains intact and Chicagoans continue to benefit from competition.”
But United Airlines claims that the lease agreement signed by American Airlines ensures that airlines that fly the most get the most gates.
United said it operated 52% of total O’Hare departures last year, but had 48% of the gates. Meanwhile, for the last three years, American has occupied 41% of O’Hare’s gates while operating 37% of the airport’s departures, United said.
“We are steadfast in our commitment to Chicago, as evidenced by our recent expansion that added 25% more capacity this summer and 17 new destinations from O’Hare just this year,” a spokesperson at American Airlines said. “And we will continue to work closely with our partners at the Mayor’s Office and CDA on a path forward.”
A spokesperson with the city’s Law Department said the city had no comment “as the matter concerns pending litigation.”