FORT WORTH- American Airlines (AA) has filed a lawsuit against the City of Chicago, alleging unfair gate allocation at O’Hare International Airport (ORD) favoring rival United Airlines (UA). The dispute threatens American’s hub operations and competitive standing.
This legal action, filed in the Northern District of Illinois, centers on a 2018 agreement and claims Chicago’s Department of Aviation is enabling United’s bid to dominate O’Hare’s gate space. The case highlights tensions in the dual-hub airport’s expansion plans.
American Airlines Sues Chicago
American Airlines (AA) initiated legal proceedings against the City of Chicago on May 3, 2025, in the U.S. District Court for the Northern District of Illinois (case number 1:25-cv-04874).
The 23-page complaint accuses the Chicago Department of Aviation and Acting Commissioner Tracey Payne of breaching the 2018 Airline Use and Lease Agreement (AULA).
This agreement governs gate distribution and supports O’Hare International Airport’s (ORD) $8.5 billion expansion, known as the O’Hare 21 project.
American alleges that the city’s decision to reallocate gates prematurely favors United Airlines (UA), undermining fair competition.
The AULA stipulates that gate allocations should reflect equitable distribution among O’Hare’s hub carriers, American and United, which control 30% and 40% of the airport’s gate space, respectively.
American claims United has long aimed to marginalize its presence, aspiring to become O’Hare’s sole hub carrier.
The lawsuit highlights a proposed gate redetermination process, triggered at United’s request and approved by the city, which would grant United five additional preferential-use gates while reducing American’s by four, effective October 1, 2025.
This shift would adjust United’s share to 42% and American’s to 30%, widening the gap between the carriers.
American argues that the redetermination, based on 2024 flight statistics, disregards the completion of three new gates in Terminal 3 on March 14, 2025, intended for American’s use.
The AULA includes a one-year “ramp-up period” post-construction to allow airlines to utilize new gates before reallocations.
By initiating the process early, American contends, Chicago is depriving it of a fair opportunity to compete, potentially disrupting its 480 daily flights and customer service at O’Hare.
Background of the 2018 Agreement
The 2018 AULA was a landmark deal between O’Hare’s airlines and the Chicago Department of Aviation, facilitating the O’Hare 21 expansion.
This project aims to modernize terminals, add 25% more gate capacity, and construct a new O’Hare Global Terminal by 2028, replacing Terminal 2.
Both American and United, as primary stakeholders, agreed to fund the expansion through airline fees and supported revisions to the construction schedule in 2024.
However, tensions arose when United allegedly sought a side deal to secure more gates, prompting American to negotiate a compromise, delaying gate redetermination.
American now claims the city’s approval of United’s request violates this compromise and the AULA’s terms.
Broader Implications for O’Hare Expansion
The conflict arises amid O’Hare’s $8.5 billion expansion, intended to modernize facilities and increase capacity.
American Airlines insists the AULA ensures equitable growth, while United’s aggressive tactics threaten competition. The court’s ruling could reshape airline operations at one of the world’s busiest airports.
With hearings pending, the outcome may influence future aviation agreements and airline rivalry dynamics.
American’s legal actions reflect its determination to protect its ORD hub status against United’s expanding influence.
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