AND AMERICAN AIRLINES WANT TO GROUND OR SIGNIFICANTLY SCALE BACK.

THE MASSIVE O'HARE REDEVELOPMENT DESIGNS THING IS THE AIRLINE SIGN AN AGREEMENT TO FOOT MUCH OF THAT BILL THROUGH INCREASED GATE FEES.

BUT NOW THEY SAY THE PROJECT IS OVER BUDGET.

TONIGHT IN THE SHOW AND PANDEMIC ERA LOSSES PUT THEM AT A DISADVANTAGE.

SO WILL THIS ELABORATE JEANNE GANG DESIGN TERMINAL 2 EVER TAKE FLIGHT?

AND JOINING US, OUR JOE SCHWIETERMAN PROFESSOR AT DEPAUL UNIVERSITY, WHO SPECIALIZES IN PUBLIC POLICY, TRANSPORTATION AND URBAN PLANNING AND MARK DANTZLER, PRESIDENT AND CEO OF THE ILLINOIS MANUFACTURERS ASSOCIATION.

WE ALSO INVITED UNITED AIRLINES AND AMERICAN AS WELL AS THE CHICAGO DEPARTMENT OF AVIATION.

BUT THEY DECLINED.

WE DO APPRECIATE THE 2 OF YOU BEING HERE.

SO FIRST TO MARK, PROJECT WAS FIRST PEGGED AT 8.7 BILLION DOLLARS.

SURPRISE, SURPRISE.

IT'S GOING TO COST A LOT MORE THAN THAT.

NOW ESTIMATED TO COST ABOUT 12 BILLION.

TELL US WHERE IT IS RIGHT NOW AND WHY THE OVERRUNS.

>> WELL, WORK WERE HURT IN THAT.

THE MAYOR'S OFFICE AND UNITED AMERICAN, WHICH ARE COMMITTED TO THIS PROJECT ARE BACK AT THE TABLE NEGOTIATING DISCUSSING HOW WE BRING FORTH THE MODERNIZATION OF O'HARE AIRPORT.

BUT WE DO IT IN A COST-EFFECTIVE MANNER.

AS YOU NOTED, PEERS WITH AGREEMENT WAS SIGNED IN 2018, WHO'S ABOUT 8 BILLION DOLLAR PROJECT ABOUT 6 BILLION OF THAT WAS GOING TO THE TERMINAL REMODELING.

AND TODAY IT'S ABOUT A 12 BILLION DOLLAR COSTS.

WHEN YOU LOOK AT TODAY'S DOLLARS IN SO WE NEED TO MAKE SURE THAT WE MODERNIZE THE AIRPORT BECAUSE TRAVELERS AND MANUFACTURERS HAVE TO MOVE PEOPLE IN PRODUCT AROUND THE WORLD.

WE NEED TO MAKE SURE THAT WE HAVE SAFETY FISSION FLIGHT WHEN TRAVELERS ARE COMING THROUGH.

THEY WANT TO MAKE SURE THEY CAN GET THEIR CONNECTING FLIGHT AND GET TO THEIR NEXT DESTINATION IT COST EFFECTIVE MANNER.

>> AND O'HARE HAS TO KEEP PACE OF SOME OF THESE AIRPORTS AROUND THE WORLD THAT HAVE MODERNIZED.

I MEAN, I THINK WE HAVE A DRY AND RENDERINGS OF THESE JEANNE GANG DESIGNS, ESPECIALLY THAT GIANT TERMINAL 2.

WHAT ARE THE AIRLINES CONCERNED ABOUT WITH RESPECT TO THIS?

BECAUSE THERE ANY SIGN AN AGREEMENT?

THAT'S RIGHT.

GIVE ME A LITTLE HISTORY.

REMINDS ME LOOKING BACK AT THE MAYOR DALEY DAYS WHEN WE HAD A DEAL HERE IN MODERNIZATION PROGRAM, EXTENDING THE RUNWAYS, IMPROVING THAT THAT'S DONE NOW.

SO THAT SO TO RAISE THE BASE OF THE COSTS FOR THE AIRLINES, WITH ALL THAT BEING DONE, WE HAD THE TERMINAL.

5 GATES THIS YEAR.

THAT'S BEEN A WHOLE NEW WORLD OUT THERE AS EXCITING.

BUT THE AIRLINES ARE SAYING THE WORLD'S CHANGED AND THE NEED FOR 2 SATELLITE CONCOURSES INITIALLY RIGHT OUT OF THE BOX FOLLOWED BY THIS GLOBAL TERMINAL JUST AS TOO MUCH TOO FAST.

SO THERE'S FURIOUS NEGOTIATIONS HAPPENING, WHETHER WE CAN LOOK AT DIFFERENT TIME AND WHETHER THERE'S A WAY TO CUT COSTS, THE SIDES APPEAR PRETTY FAR APART RIGHT NOW.

>> ARE YOU SAYING THE CITY IS IS ACTUALLY SITTING BACK DOWN TO THE TOWING?

RAHM EMANUEL WAS QUOTED A FORMER MAYOR WHO >> KIND OF CUT THIS DEAL PULLED THE AIRLINE, SAID THE DEAL THAT THEY BUT THEY MADE.

THAT'S RIGHT.

THEY THINK THEIR LINE SEE HARRIS FALLEN BEHIND AND I CAME BACK FROM EUROPE.

I CAN ATTEST TO THE BE ON 7 EUROPEAN AIRPORT VERSE O'HARE.

AND SO I THINK EVERYBODY KNOWS THAT THE COLONEL HAIR, SOME TERMINALS DATING BACK TO 60'S JUST DOESN'T CUT IT.

TODAY'S WORLD, THE DIFFICULT PART HERES A 2 HUB AIRLINE.

AGAIN, AMERICAN FINAL.

A LOT OF PEOPLE THROUGH O'HARE, THE ORIGINATING IN CHICAGO AND THEY ARE YOU THAT THE RISING COSTS JUST BE MORE COST-EFFECTIVE TO A ROUTE PASSES TO OTHER HUBS.

NOW, THERE'S A CERTAIN LOT BARGAINING HERE.

SO THEY LEVERAGE HERE.

THEY DO HAVE SOME LEVERAGE AWAY FROM FROM O'HARE.

MARKDOWNS ARE.

>> WHAT ABOUT THAT?

SHOULD SHOULD THE CITY COME BACK IN AND SCALE DOWN THESE PLANS?

>> WELL, AGAIN, THE AIRLINES ARE COMMITTED TO THIS, BUT WE HAVE TO DO IN A COST COMPARED TO FASHION PEARSON.

WHEN YOU TALK ABOUT THE IN PLANE THAT CROSS, FOR EXAMPLE, TODAY'S O'HARE IS ABOUT $26 PER PASSENGER WERE THE 3RD HIGHEST UNITED STATES.

AND IF THIS PROJECT WERE TO GO THROUGH WITH ALL THE COST TO RENT, THAT'S GOING TO SKYROCKET TO ABOUT $54, WHICH IS NEARLY DOUBLE THE SECOND WOULD IN NEWARK.

AND YOU LOOK AT SOME OF THE COMPETITION AWAY AND IS IT DOLLAR FOR WORK?

CHARLOTTE IS ABOUT $4.

DALLAS IS $12 PHOENIX'S $5.

MINNEAPOLIS IS $8.40 AND SO AS WE PRICE OR SO'S OUT THE MARKET IN IT IS IS HE SAID WERE ARE ABOUT 50% PASSENGERS THAT COME TO O'HARE OR CONNECTING AND WE HAVE WITH AMERICAN AND UNITED.

AND SO WE HAVE TO MAKE SURE THOSE COSTS GET DON'T GET TOO OUT OF CONTROL BECAUSE WHAT'S GOING TO HAPPEN ARE THE AIRLINES OR GET AROUND PEOPLE ELSEWHERE?

BECAUSE WHEN WHEN A CONSUMER WITH MARTIN'S OR MAKES HIS PLANE RESERVATION AND I HAVE TO CONNECT, IF IT'S CHEAPER, GO THROUGH DETROIT OR DENVER OR MINNEAPOLIS OR CHARLOTTE IN ITS 5TH YEAR $100, CHEAPER PASSENGERS ARE GOING TO DO THAT.

WHAT THAT MEANS IS FEWER PASSENGERS COMING THROUGH HERE MEANS LESS TAX REVENUE.

SO WE HAVE TO BE VERY CAREFUL THAT AGAIN, I WANT TO PART OF THE MAYOR'S OFFICE IS SITTING BACK DOWN WITH UNITED AMERICAN.

YOU DON'T WANT TO PULL OUT THEIR COMMITTED THIS PROJECT, BUT THE AGREEMENT THAT THEY SIGNED IN 2018 ALSO HAVE COSTED.

SO IS THAT CROSSES 25% HIGHER.

IT BEHOOVES ALL SIDES TO DOWN AND SAY IT.

WHAT CAN WE DO IT AGAIN?

IT'S GREAT TO HAVE THIS MODERN TERMINAL, BUT MOST PASSENGERS WOULD CONNECT THEIR FLIGHTS AND GET TO THEIR DESTINATION, DO IT.

AND THERE'S ALSO THERE'S ALSO COVID, OBVIOUSLY THAT THREW A WRENCH INTO THINGS.

THEY SHOULD READ STATEMENT FROM THE CHICAGO DEPARTMENT OF AVIATION.

THEY SAY THEY REMAIN COMMITTED TO CONTINUED GROWTH AND DEVELOPMENT OF O'HARE INTERNATIONAL AIRPORT THROUGH.

>> O HARE.

21 ENABLING WORK FOR THE NEXT PHASE OF THIS VITAL INFRASTRUCTURE PROJECT BEGAN IN MARCH.

THE CD REMAINS ENGAGED IN CONSULTATION WITH AIRLINE AGENCY AND BUSINESS PARTNERS ON A COMPLEX PHASING AND IMPLEMENTATION.

SO IT ASSOCIATED WITH THE DEVELOPMENT OF THIS MAGNITUDE, JUST WONDERING WHAT MIGHT A SCALED BACK A REDEVELOPMENT LOOK LIKE OR MIGHT THEY JUST LENGTHEN THE TIME BECAUSE THEY'RE SUPPOSED TO FINISH BY YOU KNOW, REALLY APPLAUD THE SENATE FINISH TERMINAL 5 ON TIME.

THE RUNWAY EXPENSES WERE DONE REALLY VERY WELL.

SAYS A LOT OF A POLITICAL CAPITAL THAT THE CITY'S BUILDUP TO TAKE AND DELIVER WHAT THEY PROMISE.

>> I THINK HERE ONE OF THE DIFFICULT THINGS IS CAN YOU KEEP THE AIRPORT RUNNING IF WE TAKE TERMINAL 2 OUT OF COMMISSION TO BUILD THIS GLOBAL TERMINAL WITHOUT HAVE NEW SATELLITES TO PUT PLANS TO.

IN THE MEANTIME, AS DON'T BOTH SATELLITES, WE HAVE CHAOS OUT THERE TRYING TO BUILD THIS NEW TERMINAL GLOBAL TERMINAL WITHOUT SOMEWHERE TO PUT THE PLANS.

AND THAT'S GOING TO BE SOME COMPLEX ANALYSIS.

THAT COULD BE THE KEY TO MAYBE SOLVING THIS.

IF WE MAYBE A A MOVE A TERMINAL CONNECTOR BACK AND FOCUS ON TERMINAL TO WARN OTHER THINGS.

THEY'RE SAYING 30 SECONDS LEFT, WHAT?

MAYBE THEY NEED TO SCALE DOWN THESE REALLY NICE DRAMATIC DESIGNS BY JEANNE LIKE LOOKING LIKE A RAINFOREST AND THEY'RE MEAN.

>> ALL AIRPORTS AROUND THE WORLD ARE VERY, VERY WELL DESIGN.

THAT'S RIGHT.

THERE'S A KIND OF ROAD FOR NEGOTIATIONS HERE IN THE CITY REALLY HAS JUST OF VISION FOR TERMINAL 2.

AND THE AIRLINES LOVE THAT.

IT'S REALLY A MESS NOW.

INTERNATIONAL FLIGHTS PULLING INTO THAT TERMINAL 5 TELLING PEOPLE TAKE THAT JUMP ON THAT PEOPLE HEARD FROM SEVERAL YEARS.

THAT WAS OUT ONE OUTSIDE WITH YOUR BAGGAGE.

THIS WOULD FIX THAT.

SO THEY REALLY SEE THAT THE GLOBAL TERMINAL IS KEY.

THE QUESTION IS CAN WE GET THAT DONE COST-EFFECTIVE?

ALL RIGHT.

JOE SCHWIETERMAN MARKDOWNS THANK