CHICAGO and RICHMOND, BC – The Midway Investment and Development Corporation (“MIDCo”), comprised of Citi Infrastructure Investors, Vancouver Airport Services (YVRAS) and John Hancock Life Insurance Company announced today that it has won a US $2.521 billion, 99-year lease contract to operate and develop the first privatized major airport in the US – Chicago Midway Airport.
Chicago Midway Airport offers service to more than 55 destinations and consistently ranks among the top 30 airports in the US for passenger volume. In 2007, it handled more than 19.3 million people and 304,000 aircraft operations. Together with the city’s O’Hare Airport it serves the third largest metropolitan area in the US, with a population of 10 million people.
“This contract marks a milestone in the growth of our company and is a clear example of how we can leverage our success at home to develop the best airports in the world,” said Larry Berg, president and chief executive officer, Vancouver Airport Authority. “Since the mid-nineties, our subsidiary, YVRAS, has grown from a great idea into a global airport operator, and we’re proud of this homegrown success.”
“We are excited to undertake this extremely important infrastructure opportunity with our MIDCo partners, and look forward to working closely with the City of Chicago, the airlines, travelers and the community on this groundbreaking transaction,” said Felicity Gates, co-head of Citi Infrastructure Investors.
“We are pleased to be part of this excellent team that has secured the rights to operate Midway Airport, and we look forward to working with the city and the airlines to provide excellent services to the traveling public,” said Robert Keough, managing director, Transportation Finance, John Hancock Life Insurance Company.
“This is an excellent opportunity for the company, our employees and our network of airports,” said George Casey, president and chief executive officer for Vancouver Airport Services. “In addition, we can continue to partner with British Columbian and Canadian firms exporting know-how, knowledge and best practices. The experience we have in transitioning airports from government control to private sector management will benefit the operation at Chicago Midway Airport.”