Virgin’s airline drops Chicago plans: Virgin America has cancelled plans to begin service at Chicago’s O’Hare’s international airport in early 2009 after it failed to strike deals to lease gates at the airport from other airlines. “Chicago remains at the top of our list and we look forward to launching service when a gate solution has been found at O’Hare” San Francisco based Virgin said on Friday. Virgin would have been the first domestic carrier to enter service at O’Hare since Jetblue started service in early 2007. Virgin’s decision is a blow to O'Hare and city of Chicago officials, who are struggling to recruit new airlines to offset a drop in the airport's operations, which threatens to lower city revenues. O'Hare capacity is down 23 percent for the fourth quarter from 2000 levels, according to OAG, with the deepest cuts falling over the past three months as carriers braced for an economic slowdown.