Originally Posted by
BlueOceanSky
That is wrong. This isn't about morality and who deserves what. Theres a legally binding contract, and the city of chicago in coordination with UA, are not following it.
The contract specifically states that gate re-allocation cannot begin until 1 year after the 12 month ramp up period is complete. and ramp up period isn't to start until terminal 3 and 5 expansions are completed. T3 stinger gate expansion, as specified in the contract, wasn't completed until March 2025. The earliest this reallocation assessment may happen is 2027.
AA was legally able to neglect chicago for a period of time, then bring it back to life in time to, and not lose any gates. Why would they do this? probably cause the sunbelt hubs were more profitable in the immediate post covid rebound. That and ORD is more dependent on their regional feed, which hasn't fully recovered until now.. for the most part.
The "12 month ramp up" is a separate issue. It means that the CURRENT ALLOCATION once the L-Stinger gates are built won't be changed. Which is the allocation that they just released. Not meaning no changes from 2018. This allocation is allowed per the 311 page contract. Section 5.
I did find this language which the City could cite that supports this.
"5.4.6 In the event that a reallocation is triggered pursuant to Sections 5.3 or
5.4, the City shall give written notice of its initial determinations under Sections 5.3 and 5.4.2 to
all Signatory Airlines, including Airline, by April 1 of each year in which the City’s
determination is to take effect.
The City’s written notice shall include an exhibit displaying the
then-current assignments of all Preferential Use Gate Space and the Preferential Use Gate Space
being assigned by the City to all Qualifying Airlines for the year the reallocation will take effect
according to Section 5.4.2. "
So indeed, there is language that allows reallocation EACH YEAR. Its in the contract. The additional allocation from the L-Stinger gates is in a separate part of the contract.
"5.1 ...All of Airline’s Preferential Use Gate Space shall be
subject to the applicable accommodation and reallocation provisions of this Article 5,
regardless
of how or when such Gate Space is initially assigned to Airline. "
With 311 pages there is likely language that just doesn't let them massively back out of flying and add it back whenever they want.
American is asking for a jury trial. This is going to take a while. Also they are arguing "good faith" and not strict contractual language. Much of their filing is based on "what they were told" during the construction of the L-Stinger expansion. This will have to go to discovery, witnesses etc.
The agreement was filed in 2018. No references from the actual agreement are even in the filing although it is referenced in general, which is normal since these are generally not made available to the public. I do have a generic copy of the City of Chicago AULA and its 311 PAGES! That is CRAZY. The airport's ability to reallocate gates is referenced 28 times in the Agreement, including "long-term signatory airlines and preferential use airlines", which American is one of.
So the City will have a few weeks to respond and United can join as an interested party since they could lose gates here. Then there's 3-6 months for filing Summary Judgement and a hearing on that. If its not thrown out, then we have 6 months of discovery, witness list, pre-trial motion and prep. Depending on the backlog in the court it could be another few months and then likely a few weeks for a trial. Verdicts can take up to 60 days.
This put us into 2027. Good luck!