"Goldman Sachs, Deutsche Bank, Australian infrastructure specialist Macquarie (Charts) and Spanish airport operator Ferrovial are all circling the 750-acre Chicago airfield, which could fetch up to $3 billion. "
"Then there are the economic issues - 65 percent of the carriers at Midway have to approve the transaction, and they may require that landing fees (the charges they pay to the airport operator) be capped. The bidders, on the other hand, will push for a fee schedule that gives them a decent return on their equity. In the past, airlines have argued that privatization can exacerbate an airport's natural monopoly if landing fees and other economic concessions are not regulated."
WN is one of the largest carriers active at MDW. If the sale goes through and landing fees increase, could we potentially see WN move to one of the other Chicago area airports?
XJET From United States of America, joined Feb 2007, 491 posts, RR: 2
Reply 1, posted (7 years 5 months 3 weeks 8 hours ago) and read 3092 times:
Quoting Warreng24 (Thread starter): WN is one of the largest carriers active at MDW. If the sale goes through and landing fees increase, could we potentially see WN move to one of the other Chicago area airports?
I would think WN would stay. They have invested way too much into that airport. It is an interesting situation though. We can all look to ELP to see how WN handles high fee airports.
Cubsrule From United States of America, joined May 2004, 22737 posts, RR: 20
Reply 2, posted (7 years 5 months 3 weeks 8 hours ago) and read 3046 times:
Quoting XJET (Reply 1): I would think WN would stay. They have invested way too much into that airport. It is an interesting situation though. We can all look to ELP to see how WN handles high fee airports.
Nowhere else in the area has the space for WN. If WN were to pull back due to increased fees, FL would expand in a heartbeat.
And if it requires 65% of the 8 carriers at the airport, that would mean that if TZ and WN oppose the deal, every other carrier would have to be in favor of it.
I can't decide whether I miss the tulip or the bowling shoe more
FWAERJ From United States of America, joined Jun 2006, 3723 posts, RR: 2
Reply 7, posted (7 years 5 months 2 weeks 6 days 3 hours ago) and read 2549 times:
Quoting Jakbar (Reply 5): For the sake of clarity, MDW is not being "sold", but instead is being "privatized", a completely different concept. The City of Chicago will continue to own MDW.
To put it into perspective, it's sort of like what BAA does at IND.
Anyhoo, it doesn't surprise me that Macquarie is in the bidding... a joint-venture group between them and Cintra leases the Chicago Skyway from the City of Chicago (along with the Indiana Toll Road on the other side of the state line). Given the "corrupt but effective" nature of Chicago politics (thank you, Mayor Daley), I think that Macquarie will win this one by default. This reminds me of the time when McDonald's (based in the Chicago suburb of Oak Brook) won the fast-food burger bid at ORD becuase they were "local" (and Daley got a lot of kickbacks from McDonald's), even though a local Burger King franchisee based in Chicago proper said "we're just as local as McDonald's".
BTW, before I moved to the FWA area, I lived in NW Indiana, so MDW and ORD were my hometown airports (though if GYY had decent service, we would have used it).
[Edited 2007-02-13 21:41:01]
I don't work for FWA, their tenants, or their ad agency. But I still love FWA.