The City of Chicago says it has reached an agreement with American Airlines (AA, Dallas/Fort Worth) which will see the carrier drop its opposition to the municipality's vaunted USD8.5 billion Chicago O'Hare International Airport expansion plan.

American had earlier warned it would not sign a new lease agreement to use O'Hare's facilities citing what it said was a "secret" agreement reached between the City and United Airlines (UA, Chicago O'Hare) that awarded five out of eight common usage gates at the airfield's Terminal 2 to United.

However, following deliberations, Mayor Rahm Emanuel said in a statement on Thursday, March 15, that a tentative deal had been reached wherein both United and American had pledged their support for the city’s transformational proposal to modernize O’Hare International Airport. The plan was to be considered by the City Council Aviation Committee on March 15.

Under the deal, the number of gates assigned to each airline will remain the same as the proposal introduced to council in February; however, the city has committed to working with American to expedite the construction of three common use gates that are planned as part of a new stinger extension to Concourse L at O'Hare, which will be available for all carriers to use.

"The city is committed to working with all carriers to ensure the location of common use gates supports the operations of all carries operating at O’Hare," a statement said.