An agreement forged between the Ohio attorney general and the Cleveland mayor will ensure that Cleveland Hopkins International (CLE) remains a hub for at least the next five years for Continental Airlines and United Airlines as the two prepare to merge into one company.
“I am confident that this resolution is the best possible outcome for Cleveland and the state of Ohio,” says Richard Cordray, the attorney general. “Through this contractual agreement, the airlines have committed to working with my office and the city of Cleveland to ensure that CLE remains a viable hub for the foreseeable future.
Moving forward, my office will continue working with Mayor [Frank G.] Jackson and his
airport staff to closely monitor the merged company and its commitment to the
success of Cleveland’s airport.”
Jackson says: “The agreement between Continental-United Airlines and the Ohio attorney general solidifies the new United’s commitment to maintain current service
levels at Cleveland Hopkins International Airport. The agreement places the CLE hub in a stronger position than it was a month ago. I would like to thank the attorney general for the opportunity for me and my team to participate in the discussions that led to this agreement. As we move forward, we will continue to take aggressive steps to strengthen CLE’s ability to respond to whatever happens in the industry.”
Under the agreement, the merged airline will operate and maintain jobs at CLE for at least the next five years; the attorney general may, at the company’s expense, audit the books and records of the company to make sure the airline’s commitments to Cleveland and Ohio consumers are upheld; the airline’s commitments are enforceable in federal court in Ohio; damages of up to $20M will be paid by the airline should its commitments not be honored.
“This is an important air service development for CLE,” says Airport Director Ricky Smith. “The agreement formalizes the new United’s commitment to the region based on support for the hub. Furthermore, this commitment represents a significant step in strengthening CLE’s position as an economic engine for airport tenants and airlines, as well as area businesses. We will continue building on the agreement by developing new strategies for growing the hub and strengthening the CLE’s economic position.”
The agreement concludes a review of the proposed merger of Continental and United; the antitrust investigation began in May in an effort for Corday to protect jobs in Ohio and the economic interests of the city of Cleveland, the airport and Ohio consumers.
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