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Senators Kirk, Durbin: It is Essential that American Airlines Merger Does Not Delay O’Hare Modernization Program Negotiations


WASHINGTON, D.C.—(ENEWSPF)—February 15, 2013. After a merger between two of the country’s largest airlines was announced late yesterday, U.S. Senators Dick Durbin (D-IL) and Mark Kirk (R-IL) today stressed the importance of protecting thousands of jobs, air service in Illinois and the O’Hare Modernization Program (OMP) in a letter to the President & CEO of American Airlines and the Chairman & CEO of U.S. Airways.

“The OMP will create 195,000 more jobs and generate $18 billion in annual economic activity. Completing the OMP is necessary to keep Chicago and the nation competitive in the 21st century economy,” the Senators wrote.  “In 2011, we engaged American and United Airlines, the City of Chicago, and the U.S. Department of Transportation to craft an agreement that ensures the OMP remains on track. It is essential that the proposed merger between American Airlines and US Airways does not delay negotiations with the City of Chicago on the final phase of the OMP that are slated to begin no later than March 1st of this year.”

On March 14, 2011, U.S. Transportation Secretary Ray LaHood, Chicago Mayor Richard M. Daley, executives from United Airlines and American Airlines and U.S. Senators Dick Durbin and Mark Kirk announced a $1.17 billion agreement that will allow the O’Hare Modernization Program to move forward, add runway capacity, and prevent flight delays from growing to unacceptable levels. The O’Hare Modernization Program, managed by the Chicago Department of Aviation, is one of the largest construction projects in the country at one of the world’s busiest airports.  When the program is complete, O’Hare will have eight modern runways, reducing flight delays and improving efficiency for travelers throughout the country.

Text of the letter is below:

February 14, 2013

Doug Parker                                                                                  Thomas Horton

Chairman & CEO                                                                           Chairman, President & CEO

US Airways                                                                                     American Airlines

111 W. Rio Salado Parkway                                                          P.O. Box 619616

Tempe, Arizona 85281                                                                  DFW Airport, TX 75261

Dear Mr. Parker and Mr. Horton:

We are writing regarding the announced merger between American Airlines and US Airways.  The proposed merger could have a significant impact on thousands of jobs, air service to downstate Illinois and the O’Hare Modernization Program (OMP). As you move forward in this process, we would like to work with you to keep OMP on track and to maintain the air service and good-paying jobs with benefits that American Airlines and US Airways provide to thousands of Illinoisans.

American Airlines has a long history in Illinois.  American began air service in Illinois in 1926, when Charles Lindbergh carried airmail for the U.S. Postal Service from Chicago to St. Louis.  American Airlines, US Airways, and their code share partners now employ more than 9,600 people in Illinois and operate thousands of departures from Chicago, Bloomington, Peoria, Quad Cities, Champaign, Springfield, Quincy and Marion airports each day.  We encourage you to make these workers and air service to these Illinois communities a priority as you proceed through this merger process.

American Airlines is also critically important to Chicago and O’Hare airport.  O’Hare airport is the economic engine of the Midwest. O’Hare already generates 450,000 jobs and $38 billion in economic activity for the Chicago region and the state of Illinois. However, the airport does not have the capacity to efficiently handle the air traffic of the future.  That is why countless stakeholders have been involved in the effort to modernize and expand O’Hare for more than a decade.

The OMP will create 195,000 more jobs and generate $18 billion in annual economic activity. Completing the OMP is necessary to keep Chicago and the nation competitive in the 21st century economy. In 2011, we engaged American and United Airlines, the City of Chicago, and the U.S. Department of Transportation to craft an agreement that ensures the OMP remains on track. It is essential that the proposed merger between American Airlines and US Airways does not delay negotiations with the City of Chicago on the final phase of the OMP that are slated to begin no later than March 1st of this year.

The proposed merger between American Airlines and US Airways will significantly alter the airline industry in the United States and face regulatory scrutiny before being approved.  We believe a strong presence in Illinois is important to the future of any American Airlines company emerging from bankruptcy and stand ready to work with you to ensure American Airlines can and will still provide modern, safe, and efficient air travel in Illinois.

Sincerely,

Richard J. Durbin                                                                                            Mark Kirk

U.S. Senator                                                                                                    U.S. Senator

Source: kirk.senate.gov

 


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