Chicago's debt problem is bringing down the lofty modernization plans for O’Hare.
Moody's Investors Service issued a warning, saying Chicago’s Aviation Deptartment took too big of a risk on paying its bills. The city’s bond rating has been downgraded.
The airlines, and therefore customers, could get stuck paying for higher borrowing costs as a result.
Moody’s said the city's decision to postpone payment of interest and principal on construction bonds until 2018 will result in larger payments in the future.
Fox Business Contributor Phil Flynn said it's like a person’s credit rating. If it's good, you pay lower interest rates.
Downgrading the city's bond rating means higher costs for the city and ultimately, the air traveler.
United and American Airlines want more runways but privately believe the city is not being fiscally responsible.
The city's budget spokesman, Pete Scales, said it is premature to speculate that far into the future.
Bonds are paid for by airport revenues and passenger fees, and if they are increased, airlines could re-route around Chicago to avoid the costs.
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