This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

United Has High Hopes for New O'Hare Runway

CHARLOTTE, N.C. -- The nation's long-inadequate aviation infrastructure will get a major upgrade next month, when new runways open at three key airports, including Chicago's O'Hare International.

O'Hare, a hub for both AMR's (AMR) American Airlines and UAL's (UAUA) United, is one of the system's key chokepoints, and the third-worst airport for delays in the U.S. during the first eight months of the year. Only 64% of flights arrived on time.

The new runway means O'Hare will have three sets of parallel runways, enabling it to offer three simultaneous departures, even in bad weather.

New runways will also open at Washington's Dulles International, another United hub, and at Seattle-Tacoma International, a growing international gateway and a hub for Alaska Air (ALK). Operations at both of those airports will benefit, but neither needs the sort of help in relieving congestion that O'Hare requires.

The last time O'Hare opened a new runway was 1971, when U.S. airlines carried about 174 million passengers, or roughly 23% of the total in 2007. The hub system then was in its infancy, marginally in use by Delta (DAL) in Atlanta, and the associated operational peaks and valleys were relatively rare.

After a new runway opened in Atlanta in 2006, Delta boosted its hourly departures and arrivals by 25% to 35% and saw its on-time performance improve.

In 2004, the Federal Aviation Administration imposed caps that limited O'Hare to 88 departures an hour at peak travel times. Those caps expire Friday night. Because flight caps are being lifted in Chicago, American and United disagree on just how much of a benefit the new runway at O'Hare will provide. This month, United operated about 600 daily O'Hare departures, while American had about 420.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,915.07 -70.54 -0.42%
S&P 500 1,964.68 -8.15 -0.41%
NASDAQ 4,396.2040 -22.83 -0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs