Runways debut in 3 US cities - ORD plans in doubt

[Pieter C. 5]

Runways debut In 3 US Cities; O'Hare Plans In Doubt

 

November 21, 2008

Chicago's O'Hare International Airport joined airports in Seattle and Washington, DC in opening new runways on Thursday in time for the busy holiday travel season, even as major carriers cut flights.

 

The future of further expansion at O'Hare, the world's second busiest airport, remained cloudy, however, as a local newspaper report pointed to the reluctance of airlines to fund the next phase of the USD$15 billion project.

 

US Transportation Secretary Mary Peters welcomed the new runways in Chicago and at the Washington Dulles and Seattle-Tacoma airports, saying in a statement that they will allow an additional 330,000 take-offs and landings per year and help to reduce delays.

 

But the runways' completion coincides with plans by major airlines such as United Airlines and American Airlines to cut capacity to deal with sagging economic conditions.

 

Some airlines are also questioning the price tag for ongoing expansion at O'Hare. According to a report in the Chicago Tribune on Thursday, some carriers have written to Chicago and the Federal Aviation Administration calling for a downsized project to reflect the new realities facing air carriers.

 

City officials have been talking to the airlines about the second and final phase of the project to add, relocate and extend runways along with other improvements.

 

A spokesman for the O'Hare project was not available for comment. Chicago Mayor Richard Daley, however, made it clear he wanted the airport to move ahead with the rest of the project.

 

"Completing the full (program) is important because it will create thousands of new jobs throughout the region and will pump millions more into our economy. It will reduce delays and add capacity. We are moving aggressively forward to complete the entire OMP in 2014," Daley said in a statement.

 

The three airports tapped a total of USD$643 million in federal airport improvement program funds for their new runways, which were estimated to cost USD$455 million in Chicago, USD$1.1 billion in Seattle and USD$356 million in Washington, according to the FAA. Runway projects are currently under construction at airports in Dallas-Ft. Worth, Philadelphia, Boston and Charlotte, North Carolina.

 

In addition to the federal money, airports have used passenger facility charges when allowed by the FAA to fund the projects, sometimes using the charges to back revenue bond issues.

 

(Reuters)