Chicago Midway Airport leased to private entity for $2.5 billion

The Midway Airport in Chicago will be the first privately operated airport in the nation. A consortium consisting of Citi Infrastructure Investors, YVR Airport Services Ltd. and John Hancock Life Insurance Co bid $2.521 billion to lease the Midway Airport for 99 years.

According to the press release, 90% of the proceeds of this transaction will be utilized towards infrastructure improvements and the remaining 10% can be spent without any restrictions. The New York Times reports that the lease should be approved by the FAA and the City Council.

Chicago Mayor Richard Daley has previous experience on leasing state asset to private enterprise. In 2004, the Chicago Skyway was leased to Cintra-Macquarie Consortium for $1.82 billion. This transaction was the first privatization of toll road or toll bridge in the United States.

Photo: Tim Shahan