Chicago’s ambitious $8.5 billion plan to revamp O’Hare International Airport, crucial for maintaining its position as a vital air hub, is facing significant setbacks and escalating costs. Despite the initial promise to modernize the aging airport, the project, initiated in 2018, is lagging behind schedule and projected to exceed its budget by billions of dollars.
Mayor Brandon Johnson, navigating his first year in office, is entangled in heated discussions with the airport’s primary partners, United Airlines Holdings Inc. and American Airlines Group Inc., to rein in costs. The city is exploring alternatives such as using more economical materials and adjusting the project’s design to mitigate expenses.
The delays pose a substantial risk to Chicago’s status as the third-largest US city, particularly as other major airports in cities like New York, Dallas-Fort Worth, and Los Angeles surge ahead with their own upgrades. At stake is the centerpiece of O’Hare’s transformation: a state-of-the-art Global Terminal and two satellite concourses designed by renowned architect Jeanne Gang, aimed at streamlining passenger connections for both domestic and international flights.
However, unforeseen factors, including increased labor and construction material costs spurred by the pandemic, have led to a $2 billion overrun for the Global Terminal and satellite concourses. United and American, major users of O’Hare as a hub, shoulder a significant portion of these escalating expenses.
Efforts to address the budgetary challenges have been met with contention. While the city government claims to have presented a revised plan to the airlines, the carriers question the credibility of the proposed cost reductions. Amidst these tensions, there are concerns about potential disruptions to passenger experiences and the overall efficiency of the airport’s operations.
Despite these challenges, the urgency for O’Hare’s upgrade has intensified with the resurgence of air travel post-pandemic. Yet, the completion target for the entire project has been pushed back to 2032, highlighting the significant hurdles ahead.
The ongoing negotiations reflect broader concerns about the competitiveness of O’Hare and its ability to attract airlines and passengers amidst rising costs. Illinois lawmakers have sought intervention from Transportation Secretary Pete Buttigieg to mediate discussions between the airlines and the city.
