American-Canadian Group Wins 99-Year Lease To Operate Chicago Midway Airport

Chicago, IL (AHN) - Chicago Mayor Richard Daley has urged the city council to approve the privatization of Midway Airport- the first privatization of an airport facility in the United States, which was awarded to an American-Canadian operator.

The privatization of the airport is seen to improve operations and further develop the gateway facility into a major hub in the country. It will also infuse funds, which will be used to upgrade Chicago's ageing infrastructure.

The city has awarded a 99-year lease agreement to Midway Investment and Development Co., a joint venture of two American companies, John Hancock Life Insurance Company and Citi Infrastructure Investors, and one Canadian airport operator YVR Airport Services Ltd. of Vancouver.

The deal, however, requires approval of the Federal Aviation Administration and the Chicago City Council.

Midway participated in an FAA experimental program some 12 years ago that would look into privatization as a source of funding for capital improvements. FAA, however, will continue to regulate the privatized airports.

Congress agreed to have FAA to take in five airports into the program. If approved by Chicago's aldermen, Midway will be the first privatized port in the U.S.

The Midway operator will enter into a 25-year agreement with airlines using the airport that would cap rates and charges in the first six years.