It took me some time, because the Chicago Department of Aviation made me submit a FOIA request to get the new proposed gate allocation map at O’Hare AND, of course, I was on spring break with the family. But I have the map, and ooh boy is it different than I thought. United is jumping with joy while American is steaming with anger. The assignments, however, don’t get finalized until June 1, and American has wasted no time in trying to fight this.
A United Hope
Let’s start with what happened. If you recall, I thought United would pick up the equivalent of six gates — I say “equivalent” because it’s based on “linear frontage” of the gates as I explained in a previous post — Spirit would gain 1, Alaska would lose 1, Delta would lose 3, and American would lose 3. I thought it might look like this:
I had United, Alaska, and Delta correct, but Spirit didn’t gain anything. Air Canada lost a gate, but American lost somewhere between 4 and 6 gates. How did that happen? I did not realize that Southwest wanted in. It picked up three gates of its own instead of just using common-use gates as it had previously.
Now, keep in mind that Spirit had already swapped its four gates on the L concourse to the G concourse with American. That means some things had already been made easier. So with that knowledge, here is what is being proposed:
The Losers
- Air Canada loses one of its two gates on E
- Alaska loses its two gates on E and picks up one on G instead (which is better for the American partnership anyway)
- American loses nine-ish gates — depending upon how they are configured for regionals or narrowbodies — on G, almost the entire concourse, and then gains the three gates at the top of the L-stinger for a net loss of six as I count it, but I believe the official word is a loss of four gates, so I can’t quite figure this out
- Delta loses three gates on M in Terminal 5
- JetBlue loses its only gate on G, presumably forcing it into common use on that concourse
The Winners
- Southwest picks up the three M gates that Delta gives up
- United gains the one from Air Canada and two from Alaska along with the three on G that are closest to its other gates for a total of six
But wait, you say, this isn’t even. And you’re right. That’s because one gate on G will now be “unassigned.” Further, while the three common-use gates on the L-stinger go to American, five-ish gates on G will now be common-use. That evens it out if it is six gates that American loses. That’s where things are a little vague.
You know what? Let me just show you the proposed map:
Image via Chicago Department of Aviation
There are a couple of quirks here, but effectively United owns Terminals 1 and 2 while American owns most of 3 except for the G concourse which is for the cats and dogs. Over in Terminal 5, Southwest grabs three gates that split Delta. Why? I don’t know why Southwest wasn’t pushed to the end, but Delta was never going to give up that southernmost gate which is closest to the lounge.
There are a lot of details, but most don’t matter that much. What matters is that United would gain six gates and American would lose four to six. That is a huge swing in capacity. American knows it, and it has objected.
The Empire Strikes BAAck
In letters written to the authorities, American says that gate reallocation process is illegal due to the terms of the airline use and lease agreement they all signed in 2018. It points to the key section 5.3.2. I’m sure you’ve all memorized it by now, but just in case:
5.3.2 Upon the completion of the T-5 Extension and the relocation from the Main Terminal to Terminal 5 of one or more Long-Term Signatory Airlines, the City shall cease the annual redetermination of Gate Space currently in process, if any, and shall not initiate the next annual redetermination of Gate Space until April 1 of the year following the end of the Gate Space Ramp-up Period, as defined in Section 5.2.4.
Well, ok, but Terminal 5’s extension was finished and Delta moved more than two years ago. So what’s the problem? Well, let’s just take a little trip over to 5.2.4 and learn about this Gate Space Ramp-up Period:
5.2.4 Upon the completion of the T-5 Extension and the relocation from the Main Terminal to Terminal 5 of one or more Long-Term Signatory Airlines (“Relocating Airlines”), the City shall allocate Linear Frontage in accordance with Exhibit D-1.3 with such assignments to remain in place for a period of at least twelve (12) months (“Gate Space Ramp-up Period”).
Specifically, it’s Exhibit D-1.3 that American thinks should blow this whole thing up. What is that? It’s this, which you might remember from my previous post on the topic:
This image shows the three northern gates on the L-stinger as being common-use. Since those couldn’t be assigned as common-use until they were completed this very March, American says there can be no reallocation until 12 months from that date.
For its part, a spokesperson for the Chicago Department of Aviation told me this:
The City believes that the conditions for a gate redetermination under the O’Hare Airline Use and Lease Agreement have been met. The CDA continues to engage in productive discussions on the topic of redetermination with all airline partners and will not comment further at this time.
United, for its part, wouldn’t comment at all. That makes sense considering this is a dispute between American and the city.
The Return of the JDs
I am not a lawyer, obviously, but American’s argument seems pretty flimsy. After all, this says the trigger for the 12-month freeze is the completion of the Terminal 5 extension and subsequent move-in of the tenants. American’s argument hinges on these three common-use gates shown in Exhibit D-1.3 but otherwise unmentioned.
Then again, American did show that it has other correspondence where it requested clarification on this from the city previously and had received what it believed to be confirmation of its position. It’s not as easy for an outsider to see that, however, because I’m reading this second-hand. Ultimately, it doesn’t matter what I think anyway.
My guess, and this is not based on any direct knowledge, is that American got caught flat-footed. United was just waiting to pounce and prepped to take all those gates away by raising utilization. Then, once American realized how much it had screwed itself by keeping Chicago flying so low, it went on a desperate scramble to find anything that would nullify the award. This is its best shot.
Assuming the city does not backtrack on this, I assume it’ll end up in the courts for a judge to decide. So, everyone just hang on tight while this all gets figured out. June 1 should be when we know exactly how this plays out.
