Just days after filing a lawsuit against JetBlue in a bid to recover associated with a failed strategic alliance, American Airlines is now suing the City of Chicago over claims that it has acquiesced in a plot by rival United Airlines to become the sole dominant airline at Chicago O’Hare.
Attorneys representing American Airlines filed the latest lawsuit in a Northern Illinois district court on Friday, claiming that Chicago’s Department of Aviation is letting United Airlines follow through with a plan to “marginalize” American.
“United’s long-term plan for O’Hare envisions no place for American,” the 23-page complaint against the City of Chicago and the Acting Commissioner of the Department of Aviation, Tracey Payne, alleges.
And while “United’s self-serving action may be predictable,” American’s lawyers say they are dumbstruck by the city council’s decision to go along with its rival’s bid for dominance.
The dispute centers around a 2018 agreement known as the ‘Airline Use and Lease Agreement’ or AULA, which was struck between airlines using O’Hare and the city’s Department of Aviation.
Under the AULA, the City of Chicago has been investing in a major expansion of O’Hare, and additional gates should be fairly distributed between the two hub carriers at the airport – American Airlines and United.
“As the slightly larger hub operator, United has long sought to marginalize American, as United openly aspires to be the sole hub carrier at O’Hare.”
American Airlines claimed its rival tried to secretly negotiate a side deal to claim a gate advantage at O’Hare, but after the proposal leaked, American Airlines struck a compromise that would delay a ‘gate redetermination’ process that could see United awarded more gate space.
United has, however, requested the gate redetermination process start this year, and the City of Chicago has agreed to that request, which, American’s lawyers claim, will deprive the airline “of its opportunity to earn its fair share of gates.”
The gate redetermination is based on flight statistics from 2024, which precede the date that three additional gates were completed for the exclusive use of American Airlines.
On April 1, the City of Chicago announced that United would gain an additional five preferential-use gates, while American would have to give up four preferential-use gates at O’Hare.
The gate changes are expected to come into force on October 1, which would “hamper American’s ability to fly its full intended schedule and meet customer needs.”
The case has been filed in the Northern District of Illinois under case number 1:25-cv-04874
What sometimes gets missed in the coverage is how American worked with Alaska to reduce flights out of O’Hare. Notably on routes to the west coast which were duplicate between American and Alaska such as the legacy Virgin America route to Los Angeles.
They intentionally reduced flights to reduce competition, then claim to be victims due to losing gates.