Chicago still deliberating Midway deal

The city said in a regulatory filing today that it will report on ‘further developments’ by 31 July. In a similar filing made in late January, the city said it was still looking to privatise the airport ‘at the earliest practicable date’.

A year ago after it terminated negotiations with a Citi-led consortium to privatise Midway Airport for $2.5 billion, the City of Chicago is keeping its hopes alive to still pursue a similar deal.

In a regulatory filing submitted today to the Federal Aviation Administration (FAA), the city said “it continues its deliberations” on the deal and will report by 31 July on “further developments”.

The filing is a supplement to the city’s original October 2008 application to the FAA to privatise the airport. In a similar filing made in late January, the city also said was continuing deliberations and would seek to complete the privatisation process “at the earliest practicable date”.

In April 2009, a consortium of investors led by the $3.4 billion fund manager Citi Infrastructure Investors ended negotiations with the city to acquire a 99-year lease of Midway Airport in Chicago after they failed to secure the $2.52 billion all-equity financing to meet the upfront lease payment.