Chicago is My Home

13
May

So Long, Cemetery: Court Approves Expansion at Chicago’s O’Hare Airport

Author: Adam Fendelman, Category: Travel

CHICAGO – The U.S. Supreme Court declined to hear an appeal on Monday from St. John’s United Church. This eliminated at least one of several legal obstacles facing Chicago’s O’Hare Airport as it takes steps to expand.

St. John’s has been fighting the construction of new runways at the airport because plans call for the relocation of the church’s 159-year-old St. Johannes Cemetery. The cemetery has 1,400 graves – all of which will be exhumed and reburied – according to the directions of the next of kin.

“We are extremely pleased with today’s U.S. Supreme Court order,” said Rosemarie S. Andolino, executive director of the O’Hare modernization program, in a Monday statement. “With the ruling [finalized], we will continue to move forward with [the] acquisition of the cemetery and will be contacting next of kin in order to begin the relocation process.”

Other legal battles for O’Hare include federal litigation in the Washington, D.C. circuit court that challenges the legality of FAA funding and the proper use of religiously affiliated property.

By Megan O’Neil

12
May

Virgin America Petitioning FAA For Landing Rights to Chicago’s O’Hare Airport

Author: Adam Fendelman, Category: Travel

CHICAGO – Virgin America says it will petition the FAA this week for landing rights to operate eight daily flights out of Chicago’s O’Hare Airport.

The San Francisco-based start-up, which is affiliated with Britain’s Virgin Atlantic, wants to start offering four daily flights each to Los Angeles and San Francisco in Nov. 2008 when the airport opens its new runway. A new runway means increased flight-traffic capacity at O’Hare.

If it does raise the O’Hare limit of 88 landings per hour, the FAA says it will give newcomers the first shot for landing rights. However, Virgin America will have to secure gates at O’Hare either by leasing them from an existing airline or from the city.

The airline would compete for the California routes with United Airlines and American Airlines, which are the carriers that have traditionally dominated the west coast routes out of Chicago. An announcement from the FAA is expected in June 2008.

By Megan O’Neil

05
May

Report: Continued Merger Talks Between United Airlines, U.S. Airways Intensify

Author: Adam Fendelman, Category: Travel

CHICAGO – Merger talks between United Airlines parent UAL Corp. and U.S. Airways have intensified, according to a Wall Street Journal report on Monday.

The Wall Street Journal says a deal could be announced within 10 days. A tumultuous market has forced many carriers to consider consolidation. In March 2008, Delta Air Lines and Northwest Airlines merged to create the world’s largest airline.

United’s parent company has been looking for a merger partner for months and was expected to close a deal with Continental Airlines last week. Continental surprised United, however, and pulled back from the discussion table on April 27, 2008.

United quickly turned to U.S. Airways and the two airlines have identified more that $1.5 billion in cost savings, according to the Wall Street Journal article. Any deal would be fraught with labor and regulatory issues, according to insiders, and the looming detailed negotiations will be delicate.

By Megan O’Neil

29
Apr

United Airlines Parent UAL Corp. Turns to US Airways For Possible Merger

Author: Adam Fendelman, Category: Travel

CHICAGO – Spurned at the altar by Continental Airlines on Sunday, UAL Corp. – which is the Chicago-based parent company of United Airlines – is now said to be looking to US Airways to negotiate a possible merger.

A vocal advocate for consolidation in the airline industry, UAL CEO Glenn Tilton told employees in a message on Monday that the company will pursue other options.

“We continue to evaluate our options and will do what is right for United,” Tilton said. “We also continue to believe that new business models are required to respond to the challenging market environment. For a shift of that magnitude, management teams must fully embrace the inevitability of change and have a meeting of the minds for any prospective partnership to be successful.”

US Airways, which is based in Phoenix, Ariz., has long been on UAL’s radar as a potential partner.

Overlapping routes, however, make US Airways a weak candidate for a United merger in the eyes of many experts. Thus far, spokespeople for both airlines have declined to comment on a potential merger. Insiders say it may be weeks before any possible deal could be made public.

By Megan O’Neil

28
Apr

Quieting Industry Speculation, Continental Declines United Airlines Merger

Author: Adam Fendelman, Category: Travel

CHICAGO – Houston-based Continental Airlines said on Sunday it won’t pursue a merger with another airline at this time. The news quieted weeks of industry speculation that the carrier would join operations with United Airlines.

The announcement is a blow to United parent company UAL Corp., which has been looking for a partner for some time and had hoped to finish negotiations at the end of this week. Chicago-based UAL may now try to court US Airways, according to insiders.

Delta Air Lines and Northwest Airlines announced on April 15, 2008 that it would merge and thus create the world’s largest airline. Rising operating costs have meant massive losses for airlines in the last quarter and other similar mergers were expected to follow.

By Megan O’Neil

22
Apr

United Airlines Parent UAL Corp. Posts Huge Losses, Plans to Cut 1,100 Jobs

Author: Adam Fendelman, Category: Travel

CHICAGO – UAL Corp., which is the parent company of United Airlines, reported a $537 million first-quarter loss on Tuesday and said the carrier will be forced to trim domestic flights and cut as many as 1,100 employees.

While airlines have found themselves in the red nearly across the board, UAL’s losses have significantly surpassed those of rivals including American Airlines parent AMR Corp., Continental Airlines and JetBlue Airways.

The loss tripled the $152 million loss posted by the carrier one year ago. Describing the state of the industry as “extraordinarily difficult,” UAL CEO Glenn Tilton said in a Tuesday message to employees that changes at United need to match the pace of changes in the industry.

By Megan O’Neil

16
Apr

With Rising Fuel Costs, United Airlines Raises Fuel Surcharge to $20 Per Flight

Author: Adam Fendelman, Category: Travel

CHICAGO – Rising fuel costs are hitting Americans not only at the gas station but at the airport as well. As oil prices climbed to a record $114 a barrel on Tuesday, UAL Corp.’s United Airlines announced it raised its domestic fuel surcharge to $20 per round-trip flight.

Fuel prices have been driving up airfares and eating away carriers’ profits all year. United’s announcement is the second such increase for the Chicago-based airline in two weeks. Last week, the Chicago-based airline raised ticket prices by $4 due to “record-breaking fuel costs”.

United spokesperson Robin Urbanski says United anticipates a $2 billion jump in its fuel costs in 2008. Other carriers are also expected to announce higher fares.

By Megan O’Neil

08
Apr

United Airlines Signs Frequent-Flier Agreement With Irish Carrier Aer Lingus

Author: Adam Fendelman, Category: Travel

CHICAGO – United Airlines in Chicago and Irish carrier Aer Lingus signed an agreement on Monday to start offering a code-share program beginning on Nov. 1, 2008. The agreement is pending government approval.

The program would allow the growing number of frequent fliers between Ireland and the U.S. to use bookings at either carrier to reserve travel. The number of Irish flying to the U.S. has increased recently in part due to the falling price of the U.S. dollar.

“We are pleased to partner with a carrier that expands our own network across the U.S. and shares our commitment to excellent service,” said Aer Lingus CEO Dermot Mannion in a Monday statement. “We believe this agreement will strengthen our position in the U.S. market as we capitalize on the scale and strength of the United Airlines network.”

By Stephanie Huls