"Chicago airport lease given go-ahead"

Wednesday, October 4, 2006

FAA accepts preliminary application to lease Midway
Crain's


The Federal Aviation Administration on Wednesday accepted the city of
Chicago's preliminary application to lease Midway International Airport to a
private operator. 

The approval means Midway International Airport has secured the only spot
available for a major commercial hub airport in a pilot FAA program that
allows up to five national airports to be sold or leased. 

"It's a placeholder," Dana Levenson, Chicago's chief financial officer, said
of the FAA acceptance. "Now it's a matter of going forward." 

Chicago officials considered privatizing Midway International and O'Hare
International airports along with city-owed parking garages based on the
success of Illinois' $1.83-billion lease of the Skyway. 
 
While airport privatization is not new, it has been slow to catch on. 

Two operators, BAA PLC of the U.K. and Macquarie Infrastructure Group of
Australia, have already expressed interest in operating Midway International
Airport, according to previous Crain's report. 

A number of things must be achieved before anyone can bid to lease Midway,
Mr. Levenson said. Chicago officials must craft a concession agreement, put
out a request for proposals and submit a final application and get final
approval from the FAA. The city also wants to get input from the seven
airlines operating at Midway, he said.

Stewart International Airport in New Windsor, N.Y., was the first to receive
final FAA approval, getting it in March 2005, an FAA spokeswoman said.
Stewart is the first airport in the nation to privatize. 

The New Orleans Lakefront Airport is the only other airport that has applied
to participate in the FAA program, and it's waiting for final approval, she
said.

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