Two major legacy carriers in the United States, American Airlines and United Airlines, typically target different markets and establish large hub facilities. This is because competition between the two can result in an inability for either to dominate the market, which is not ideal for profitability. However, there are a few exceptions where two legacy carriers may compete for the same market, namely in cities such as New York, Los Angeles, Washington D.C., and Chicago, which are all among the largest business travel markets in the United States.

Chicago-O’Hare International Airport (ORD) is a prime example of two-hub competition between American Airlines and United Airlines. The competition between these two carriers has been ongoing for decades, and both have been aggressive in their tactics to control the market. This is because Chicago is a desirable location for corporate travelers, making it a key market for legacy carriers. United Airlines has long been interested in serving the Chicago metropolitan area, as it is the airline’s home and has demand for long-haul flights. Similarly, American Airlines has a strong commitment to serving Chicago and has recently expanded its operations at ORD.

However, the relationship between American Airlines and the City of Chicago has become strained, as American has filed a lawsuit against the city over unfair gate redistribution practices. American claims that the reallocation of gates would give United an advantage, and the current rules in place would maintain a competitive landscape at the airport until at least 2026. American believes that this would ultimately benefit passengers through increased competition, while United argues that it could lead to more congestion and delays at their gates.

The decision on gate allocations remains contentious, with some supporting American’s argument for maintaining competition, while others prioritize streamlining operations and minimizing delays. Ultimately, the courts will determine when and how gates will be reallocated. In the meantime, consumers can benefit from the competition between American Airlines and United Airlines at Chicago-O’Hare Airport. However, it is important for the airlines to find a balance between competition and cooperation to ensure the best experience for passengers.