Chicago drops plan to privatize Midway

Dan Lipinski

By Bob Bong
Desplaines Valley News

Chicago Mayor Rahm Emanuel, who put out the welcome mat in January for companies interested in taking over Midway Airport, dropped the effort last week after one of the two finalists withdrew its bid.

The city had renewed the privatization effort in January as a way of generating badly needed money for city coffers. The first attempt that would have brought in $2.5 billion for a 99-year lease fell apart in 2009 when the credit crunch hit.

Chicago would have been the biggest American city to private an airport, if the deal had gone through.

Back in January, Ald. Michael Zalewski (23^rd), whose ward includes the airport, said that because of the airport's economic importance to the Southwest Side and nearby suburbs and the way the controversial parking meter deal turned out the Midway privatization process would be lengthy and transparent.

“We want this to be the opposite of the parking meter deal,” Zalewski said. “That was rushed through the council and has turned out to be a disaster.”

“Nothing is going to happen fast,” he said. “We want to make sure any deal is worthwhile for the city and we want the process to be as transparent as possible for the press and the public.”

U.S. Rep. Dan Lipinski (D-3rd), whose district includes the airport, was happy with the decision.

"I applaud Mayor Emanuel for halting the privatization attempt at this point," Lipinski said.  

“Once on the brink of closing, Midway has become one of world’s finest airports, playing a vital role in national air travel as well as serving as an economic engine for the Southwest Side of Chicago and surrounding communities. As the congressman representing the airport and someone who grew up less than a mile from it, I have had my reservations about any plan that could adversely impact Midway’s operations and nearby neighborhoods and communities. 

"I have shared the concerns of many Midway neighbors, employees, and travelers who feared that privatizing the airport could have negative consequences, such as increased noise in the neighborhoods, higher parking and concession fees, and the potential loss of jobs for workers who rely on the airport to support their families. The mayor said that this privatization plan would have included protections for the neighborhood and the flying public. If there is going to be another attempt to privatize Midway in the future, I will insist that such protections are written into any agreement.   

“Midway Airport is a well-run facility that serves the neighborhood, the region, and almost 10 million passengers a year. Whether it is bringing home $30 million to add safety devices to the runways, fighting to prevent overnight tower closures, or working for more soundproofing in the surrounding communities, I will continue to work to make Midway even better for everyone,” Lipinski said.

Emanuel spokeswoman Sarah Hamilton said one group vying for the deal dropped out and the mayor decided not to proceed.

The company that remained in the running for Midway reportedly was the Great Lakes Airport Alliance — a partnership of Macquarie Infrastructure and Real Assets and Ferrovial — while the one that backed out of the bidding was Industry Funds Management and Manchester Airports Group.