United Continental Holdings Inc (UAL.N) and American Airlines parent O'Hare(AMR.N) reached a deal with Chicago for a $1.17 billion plan to extend an expansion and modernization program for O'Hare International Airport, officials announced on Monday.
American and United, the two biggest carriers at O'Hare, agreed to dismiss a lawsuit they filed against the city in January seeking to block further financing for the program, a spokesman for United said.
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That lawsuit led Chicago to postpone the sale of nearly $1 billion of bonds earmarked for the airport, where the city is completing the first phase of the expansion program, which adds and reconfigures runways to help reduce flight delays.
"Making improvements to O'Hare will not only reduce flight delays and improve service for air passengers across America, it will ensure one of our busiest airports continues to thrive economically in the future," said U.S. Transportation Secretary Ray LaHood in a statement.