Loading ...In 2004, the Federal Aviation Administration (FAA) forced American Airlines to reduce its number of flights servicing Chicago’s O’Hare International Airport. Now, if the FAA decides to lift the cap on flights, that should be good for American, shouldn’t it?
Not necessarily. Any change that allows for flights at O’Hare doesn’t necessarily mean good news for American or its main competitor at the airport, United Airlines.
Ironically, the government is lifting its 88-per-hour cap just as both American and United are planning for major cuts in domestic capacity. The expectation is that the carriers will be shrinking Chicago operations, rather than seeking greater capacity.
A major concern for the larger carriers, such as American, Continental Airlines, Delta Airlines, United, and US Airways is what the other airlines servicing O’Hare will do after the big airlines have reduced capacity.
American and United, as well as others, are making it clear that their reductions in service will help drive up prices only if other carriers don’t replace these canceled flights with increases in their own service.
The FAA has said that the operational caps can be removed because runway construction at O’Hare is boosting the airport’s capacity to handle additional flights without congestion or delays. American has called the decision “disappointing,” indicating that new flights scheduled by other carriers will undoubtedly cause congestion.