Major Step Taken To Build Third Chicago-Area Airport
LONGVIEW, Wash. (Dow Jones)--The outlook for reduced airport congestion in the Chicago area got a boost Monday with the announcement that two developers have signed an agreement to finance, build and operate the proposed Abraham Lincoln National Airport south of Chicago.
The proposed airport, which has been under discussion and development for more than seven years, is slated to be built south of University Park, Ill., about 35 miles south of downtown Chicago, according to a news release.
Supporters of the project, including Chicago-area congressional representatives, the South Suburban/Abraham Lincoln Airport Commission and community mayors near the proposed airport, say it will reduce congestion at Chicago's two other regional airports - O'Hare International and Midway - and create new jobs in the suburbs south of the city.
The two private contractors are LCOR Inc. of New York and SNC-Lavalin of Canada, both of which have experience building airport projects in Paris, New York, Vancouver and other cities. The contractors have formed a joint venture to develop, finance and run the airport. Their proposal was accepted by the airport commission in May, but the agreement wasn't signed until Monday.
Officials at the U.S. Department of Transportation had no comment about the development on Monday. But airline congestion in Chicago has been an issue for a number of years.
O'Hare has become so congested that in mid-August, some U.S. airlines, including United Airlines, a unit of UAL Corp. (UALAQ), and AMR Corp.'s American Airlines (AMR), agreed to cut or limit flights at O'Hare. The agreement came after a meeting with officials of the Department of Transportation and Federal Aviation Administration.
The voluntary action takes effect Nov. 1 and expires April 30, 2005. The FAA order limiting O'Hare flights was signed by Marion C. Blakey, FAA administrator.
Capacity is increasing as the airlines recover from the downturn in business that followed the Sept. 11, 2001, attacks. In July, the FAA said in a statement that the number of scheduled flights at O'Hare exceeded the airport's capacity by 32%, "virtually ensuring daily delays even when the weather and airport operating conditions are optimal, and contributing to potential gridlock when they are not."
Under the terms of the binding memorandum of agreement signed Monday, the two companies commit themselves to financing the $200 million initial phase of the new airport project with private capital.
The initial phase includes a five-gate terminal, a 10,000-foot runway, taxiways and parking lot. It is contingent upon the airport commission's securing control of the 4,200 acres of land being purchased by the state of Illinois for the airport, the news release said. This phase would open as early as 2009.
Two further phases would cost $150 million and $200 million each.
LONGVIEW, Wash. (Dow Jones)--The outlook for reduced airport congestion in the Chicago area got a boost Monday with the announcement that two developers have signed an agreement to finance, build and operate the proposed Abraham Lincoln National Airport south of Chicago.
The proposed airport, which has been under discussion and development for more than seven years, is slated to be built south of University Park, Ill., about 35 miles south of downtown Chicago, according to a news release.
Supporters of the project, including Chicago-area congressional representatives, the South Suburban/Abraham Lincoln Airport Commission and community mayors near the proposed airport, say it will reduce congestion at Chicago's two other regional airports - O'Hare International and Midway - and create new jobs in the suburbs south of the city.
The two private contractors are LCOR Inc. of New York and SNC-Lavalin of Canada, both of which have experience building airport projects in Paris, New York, Vancouver and other cities. The contractors have formed a joint venture to develop, finance and run the airport. Their proposal was accepted by the airport commission in May, but the agreement wasn't signed until Monday.
Officials at the U.S. Department of Transportation had no comment about the development on Monday. But airline congestion in Chicago has been an issue for a number of years.
O'Hare has become so congested that in mid-August, some U.S. airlines, including United Airlines, a unit of UAL Corp. (UALAQ), and AMR Corp.'s American Airlines (AMR), agreed to cut or limit flights at O'Hare. The agreement came after a meeting with officials of the Department of Transportation and Federal Aviation Administration.
The voluntary action takes effect Nov. 1 and expires April 30, 2005. The FAA order limiting O'Hare flights was signed by Marion C. Blakey, FAA administrator.
Capacity is increasing as the airlines recover from the downturn in business that followed the Sept. 11, 2001, attacks. In July, the FAA said in a statement that the number of scheduled flights at O'Hare exceeded the airport's capacity by 32%, "virtually ensuring daily delays even when the weather and airport operating conditions are optimal, and contributing to potential gridlock when they are not."
Under the terms of the binding memorandum of agreement signed Monday, the two companies commit themselves to financing the $200 million initial phase of the new airport project with private capital.
The initial phase includes a five-gate terminal, a 10,000-foot runway, taxiways and parking lot. It is contingent upon the airport commission's securing control of the 4,200 acres of land being purchased by the state of Illinois for the airport, the news release said. This phase would open as early as 2009.
Two further phases would cost $150 million and $200 million each.
