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Tue, Jul 18, 2006

United Opts To Stay In Chicago

Windy Over Hilly, After All

Just as becoming Boeing's new hometown a few years ago was a feather in the city of Chicago's cap... so would the loss of United Airlines' headquarters have been more like a tar-and-feathering. But Chicago city fathers can breathe a bit easier now. United says it plans to stay.

Actually... Chicago's gain is Elk Grove's loss. The recently-bankrupt carrier says it's moving its headquarters from the suburban town to Wacker Drive, inside the Loop... where executives and workers in the front office will have a view of the Chicago River.

"United is one of the two major airlines. To have possession of that has a cachet," said Pam McDonough, the former head of the state's economic development agency who played a key role in luring Boeing's headquarter's to the Loop in 2001, to Crain's Chicago Business.

That ends United's two-month long search for a new headquarters which included such cities as Denver, and San Francisco.

But there was reportedly some heavy back-room dealing on the part of Chicago city officials who just couldn't see losing an airline that's called the Windy City home since 1931.

In return for staying, United got a $25 million concession package from the city, county and state... some sorely needed tax relief for a company fresh out of bankruptcy court.

FMI: www.united.com

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