Sunday

07-27-2025 Vol 2034

American Airlines Takes Legal Action Against City of Chicago Over Gate Allocation Dispute with United Airlines

In a significant legal battle unfolding in Chicago, American Airlines has initiated a lawsuit against the City of Chicago concerning gate allocations at O’Hare International Airport. This confrontation pits the second-largest airline against the largest, United Airlines, as both carriers vie for limited gate access in the bustling airport environment.

The City’s decisions regarding gate assignments have become a pivotal point of contention, especially as American Airlines claims that the city is favoring United Airlines contrary to a previous agreement. This agreement, established in 2018, was designed to pause the allocation of preferential gates to United, setting a deadline for any changes in gate assignments.

American Airlines alleges that the City of Chicago is prematurely allocating gates to United Airlines before the agreed-upon deadline, prompting the airline to seek a temporary restraining order in federal court. However, after failing to secure the restraining order, the suit was withdrawn from federal court and then refiled in Cook County Chancery Court.

The context of this dispute is rooted in the ongoing expansion of O’Hare International Airport, which includes a multibillion-dollar renovation known as “O’Hare 21.” As part of this project, the airport aims to enhance Terminal 3 and Terminal 5 while introducing a new global terminal to replace Terminal 2, all slated for completion by 2034.

American Airlines argues that the current formula used to determine gate allocations is disadvantaging them. With three new gates in American’s Terminal 3 projected to be utilized after March 14, 2025, the airline posits that the upcoming gate determinations set for April 2027 will unfairly benefit United and diminish American’s gate access. According to legal filings from American, if United’s proposed Gate Redetermination goes ahead, the company stands to gain approximately five additional gates, while American would lose about four.

This gate allocation shift could significantly affect both airlines’ operational capabilities and growth trajectories in one of the nation’s busiest airports. As the battle unfolds in local courts, the outcomes may have lasting implications for American Airlines, which has been losing ground not only to United but also to Delta in terms of overall profits and market share.

The stakes are notably high in this political and corporate tug-of-war. Chicago’s strategic choice to bolster United Airlines—a hometown company whose headquarters are based in the city—speaks volumes to local economic interests. However, this favoritism comes with a caveat; United has considered relocating its headquarters to Denver, a city presenting appealing corporate tax rates and an established operational presence.

Commercial aviation operates within a complex web of political and economic incentives, and the competition for gate space epitomizes these high-stakes dynamics. While the courts will ultimately decide the outcome of this legal challenge, it raises questions about the future of airline operations in Chicago.

American Airlines’ lawsuit reflects a broader struggle within the aviation industry, where access to critical infrastructure can dramatically influence market competitiveness. As the airline seeks equitable treatment in gate allocations, United’s established position continues to provide it with leverage in negotiations, aligned with the city’s evident interests in supporting their local economic powerhouse.

In summary, as American Airlines seeks redress through the courts against what it perceives as an unfair advantage given to United by the City of Chicago, the outcome remains uncertain. The city’s historical alignment with United complicates matters further, setting the stage for a tense legal showdown with potentially far-reaching implications for both airlines and the future of air travel in the region.

image source from:simpleflying

Charlotte Hayes