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 Post subject: Airport Sold - a Good Thing?
PostPosted: Thu Oct 09, 2008 9:02 am 
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http://www.chicagobreakingnews.com/2008 ... idway.html

http://newsblogs.chicagotribune.com/clo ... unces.html

So Chicago is selling Midway Airport for $2.5 bil for 99 years and 90% of the money is to go to infrastructure, supposedly. This raises quite a few questions for me.

The Tribune says it will cost more to fly as a result of the sale, which begs the age old question of whether this is good deal for the consumer. I don't have the numbers but I'm guessing the taxpayers will be losing money overall after all the investment in Midway over the last several years. And the major advantage, like the IN toll road deal, is money upfront and money guaranteed.

But here's the problem. Unlike the Gary airport that needs to be sold because it's a lemon Midway airport is a successful operation. Also, I'm sure the money is already spent in principle on bloated government even before the first check is cut. If say they spend $20 mil on road construction that frees up $20 mil from general revenues that can now be spent on say healthcare for illegal aliens, just as an example, instead of addressing the fiscal responsibility issue of whether taxpayers should be forced to pay for healthcare for illegals when they can't afford healthcare for themselves. Well ok that may not be the best example since the state healthcare bill passed. But you get the general idea. Or some of this money could go to a ballpark deal for the Cubs, which of course is a private enterprise.

So this money is not going towards taxpayer relief but for more spending projects as I understand it. I'm sure some of it is indeed needed spending projects, while most of it will turn out to be questionable in effect and will do nothing to stop Chicago citizens from having close to the highest overall tax contributions in the country. Is it any wonder that people are now less likely to shop in downtown Chicago and pay higher sales taxes when the same chain stores are less than 15 minutes away in suburbia?

I'm not sure how I feel about this deal. Given economic conditions and the state of flying today maybe this is a good deal after all because even if the new owners go bust at worst the city might get their airport back (I'm not sure if the lease is transferable or not) with some needed cash in the city coffers as a result. Meanwhile the city continues to expand O'Hare beyond reason. No matter how well run the operation there are limitations on the number of planes that can occupy the airspace. So will O'Hare be on the chopping block next after all the Midway money is gone? Or is the better question who will be able to buy O'Hare a few years from now with the credit crunch and will there even be any interest if fuel costs soar?

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PostPosted: Thu Oct 09, 2008 10:06 am 
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Here's two scenarios for you:

  • This is how Daley will finance the O'Hare expansion now that United and American have backed out of much of their financial commitments. Once the expansion is complete, look for O'Hare to be leased to the highest bidder as well...

  • This is how Daley will obtain the funds necessary to show financial commitment to Chicago's 2016 Olympics bid.

Take your choice!


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 Post subject: Re: Airport Sold - a Good Thing?
PostPosted: Thu Oct 09, 2008 1:49 pm 
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Here's what he needs the money for:
Quote:
Gay-friendly high school proposed for Chicago
Associated Press
Published: 10/9/2008 9:59 AM

Chicago Public Schools CEO Arne Duncan has unveiled 20 new school proposals, among them a "gay-friendly" high school that will weave gay and lesbian "heroes" into its curriculum.

According to advocates of the school, the Pride Campus of Social Justice High School would be open to all students citywide but would provide a safe, "gay-friendly" atmosphere. It is hoped the school would be a way to combat the high bullying, dropout and depression rate many gay and lesbian students experience nationwide.

Chicago Public Schools CEO Arne Duncan said Wednesday he expects the Pride Campus will be "majority straight." He said many kids should be attracted to its college-prep curriculum and its message of "social justice" and "tolerance."

Officials say the Pride Campus still needs a location but hopes to open in 2010 and ultimately serve 600 students.

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 Post subject: Re: Airport Sold - a Good Thing?
PostPosted: Thu Oct 09, 2008 5:53 pm 
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Mark I hesitated to add that factor into the mix but figured as much myself. Seems kinda stupid to me to sell Midway to expand O'Hare, and especially as I say given the air space limitations.

Plus, if the airline industry does a crash & burn the Gary airport becomes worth even less. If both Midway and O'Hare show modest growth Gary still suffers. It all comes back to Gary not now nor never will be a Midway-like airport, yet that is essentially the model the airport board and state are playing at it to be. The best it can really be is for air cargo use for NWI, a service for small private planes, and MAYBE 2 or 3 passenger airlines in the most prosperous of conditions if properly supported, which it's not and never will be. It doesn't even rate as a regional carrier hub.

And included in that support I mean better connections to Chicago's 2 main airports. Who in their right mind would plan to fly in to Gary to rent a car to drive to Midway for a connection when the cheapo airline in to Gary could go belly up at the drop of a hat? There is no stability and no staying power at the Gary "international" airport. :roll:

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If you voted for the Dems don't be surprised when things don't turn out quite as you were led to expect. Some might call it pure Marxism. But the problem with Obama economics is there's not enough money in the world to make it work.


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