Anyone Wanna Lease A Major Airport?

"Large midwestern city seeks quiet tenant for major international airport." Is that a want ad you might see in your local newspaper soon? If you live in Chicago you might.

On Wednesday, the FAA tentatively approved the city's plan to lease Midway to a private operator. It's part of a five-airport pilot plan Congress established in 1997, to see if private operators might run things more efficiently than established bureaucracies.

So far, there haven't been many takers... but Chicago decided to divest itself of one airport headache, and applied last month.

"This acceptance ensures the city can continue moving forward in the pursuit of a potential Midway concession and lease," said City CFO Dana Levenson to the Chicago Sun-Times. "It is the next of many necessary steps the city will take over the next several months as we pursue this potential transaction, which we believe could provide great benefit to Chicago's taxpayers."

Of course, it's not just about avoiding headaches. Under the plan, the city will skim some of the hoped-for efficiency gains in the form of cash... at least, that's what it hopes.

Midway will be the only major commercial hub included in the five airports to be part of the pilot program. There's more to do before it's a done deal. The city has to develop an agreement... get proposals... and get approval from the FAA for its final plan.

A number of airports have applied for the program, only to drop out after shopping for lessors. Stewart International Airport in Windsor, NY received final approval March of last year. It's the first airport to privatize under the pilot program.

So far... no word on how that's working out for them.

FMI: www.ohare.com/midway/home.asp