American Airlines has filed a lawsuit against the City of Chicago and Tracey Payne, Acting Commissioner of the Chicago Department of Aviation, in the United States District Court for the Northern District of Illinois on May 2, 2025. The airline accuses the defendants of breaching an agreement regarding gate assignments at Chicago O'Hare International Airport, potentially harming American's competitive position.
The case revolves around a long-standing rivalry between American Airlines and United Airlines at O'Hare, where both serve as hub carriers. American alleges that United has been trying to marginalize it by seeking a premature redetermination of gate space, which would benefit United at American's expense. This move is claimed to be in violation of the Airline Use and Lease Agreement (AULA) signed in 2018, which was intended to ensure fair competition by distributing gates equitably among airlines operating at O'Hare.
According to American Airlines, the AULA included a "Gate Space Ramp-up Period" designed to allow airlines to establish service patterns using newly constructed gates before any redetermination could occur. This period was supposed to last for at least one year after certain construction projects were completed, including new gates in Terminal 5 and additional gates adjacent to American's operations in Terminal 3. However, American contends that these conditions have not yet been met since the final gate only became operational on March 14, 2025.
Despite this timeline, United requested a redetermination based on flight statistics from 2024—a period when not all new gates were available—potentially resulting in United gaining five more gates while American loses four. This action contradicts both the letter and spirit of the AULA according to American Airlines. The plaintiff argues that this breach not only violates their contractual rights but also threatens their ability to expand operations and maintain market share at O'Hare.
American seeks judicial intervention to halt any gate redetermination until April 1, 2027—the earliest permissible date under their interpretation of the AULA. They are asking for declaratory relief affirming this timeline along with damages for breach of contract and injunctive relief preventing further violations by the defendants.
Representing American Airlines are attorneys Sean Berkowitz and Garrett S. Long from Latham & Watkins LLP in Chicago along with David C. Tolley from their Boston office. The case is presided over by Judge [Name], under Case ID: 1:25-cv-04874.