FAA to put a line in the sand on the Chicago Airlines Turf War

Chicago O’Hare International Airport, one of the world's busiest airports, has reached maximum capacity. American and United Airlines both own hubs and have been competing for market share. Both have been adding routes to earn gate space. To manipulate American out of Chicago, United’s CEO told analysts that American was losing nearly a billion dollars annually. His plan did not go as expected, and analysts did not force American out of Chicago. Following this, American’s CFO reported that from credit card revenue, American actually made money from Chicago, and they are going to keep expanding. Both carriers were scheduling random flights to one-up each other, and in the end, the FAA said enough. The FAA forced the airlines not to add those flights, but rather to return to their prior schedules.  This means there will be new forms of competition in Chicago. Examples will be bonus miles for card spending and rate decreases.

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