Love Field, The Wright Amendment, & SWA

[gc]

Continental steps in at Love
Airline will add 4 flights to Houston hub as Southwest bows out
08:42 PM CST on Sunday, February 13, 2005
By ERIC TORBENSON / The Dallas Morning News
http://www.dallasnews.com/sharedcont...tal.4bce9.html

Continental Airlines Inc. is expected to announce today that it will add four daily flights between Dallas Love Field and Houston's George Bush Intercontinental Airport, filling a gap left by Southwest Airlines Co. The Dallas-based carrier said last month that it would stop serving Intercontinental to focus its entire schedule for Houston on William B. Hobby Airport, its fifth busiest. Continental, which is based in Houston, already flies nine daily flights between Love Field and Intercontinental, its largest hub. Beginning April 4, the day after Southwest pulls out of Intercontinental, Continental will increase its daily flights on the route to 13.

The additional Continental flights will be flown with 50-seat and 37-seat regional jets. The six daily flights that Southwest is eliminating are flown with much larger Boeing 737 aircraft, each with 122 or more seats. With the Intercontinental route, Continental has given Southwest its only competition out of Love Field. Southwest flew about twice as many passengers as Continental on the route last year, according to research from Unisys R2A consultants. Indeed, Southwest flew 73.6 percent of all passengers traveling between the major airports in North Texas and Houston.

Houston represented Southwest's only city where it split operations between two airports. Last fall, Southwest said it considered expanding into Dallas/Fort Worth International Airport after Delta Air Lines Inc. announced it was shutting down its North Texas hub. But Southwest decided against D/FW and has instead been seeking to repeal the Wright amendment, which limits how far its planes can fly from Love Field. Southwest maintains it won't split its operations in North Texas by flying from D/FW because that would confuse passengers. Continental spokesman Dave Messing said his carrier hasn't taken any position on the Wright amendment. Southwest said it was discontinuing the Intercontinental flights to get an additional aircraft to deploy elsewhere. The carrier has been on an aggressive expansion program, adding service at Chicago's Midway Airport and Pittsburgh International Airport.

E-mail etorbenson@dallasnews.com

[noelamador]

Wright skews market, airline analyst says
Margaret Allen
Staff Writer

A comparison of the two commercial airports in Dallas-Fort Worth with the two commercial airports in Chicago could be interesting.

After all, it's a case of two older, smaller, inner-city airports served by low cost carriers -- Dallas Love Field and Chicago Midway -- duking it out against two newer, much larger, international airports served by legacy carriers -- Dallas/Fort Worth International Airport and O'Hare International Airport.

California-based transportation consultants Unisys R2A did just that in a report released recently.

Turns out that in both cases that the airports served by the low-cost carriers have lower fares, said Ron Kuhlmann, vice president at Unisys.

That makes sense. Now for the rest of the story.

Kuhlmann points out that, despite that, the fare differential is not as great between Love Field and D/FW Airport, as it is between Midway and O'Hare.

Average fares at Love Field are 86% of what they are at D/FW, said the report. At Chicago Midway, average fares are typically a much lower 65% to 75% of what they are at O'Hare.

That's a direct result of the Wright Amendment, the federal legislation that limits Southwest Airlines Co.'s flights from Love Field to short-haul routes in Texas and neighboring states. With that situation in place, said Kuhlmann, North Texas doesn't experience "true competition" between its two airports.

"If the Wright Amendment were lifted and Southwest started flying to California, you might see lower fares," he said. "The market is skewed by the fact the competition is not real. Midway, on the other hand, offers alternatives to most of the dominant carriers' networks. So there's more pressure on O'Hare to keep their fares low."
In brief

* Expert trend watchers predict that the airlines will continue to lose their battle to regain solid financial standing in 2005. A recent poll conducted by the Chicago-based Turnaround Management Association found that 61% of respondents predict 2005 will continue to be turbulent for the industry. Manufacturing, automotive and retail were the next three "most troubled industries" for 2005.
* North Central Texas Council of Governments is taking nominations through March 15 for its "Celebrating Leadership in Development Excellence." The award program recognizes individuals and entities helping to ensure the region's sustainability. See www.developmentexcellence.com.

mallen@biozjournals.com

[Geaux Tigers]

^Duh.

[St-T]

I know this was mentioned earlier in the thread but below is an article from the Tampa Tribune on Love Field, SW and the WA.


Southwest Seeks To Repeal Wright Act
By TED JACKOVICS
tjackovics@tampatrib.com



Photo by: CRYSTAL L. LAUDERDALE
Jim Douds of Williams Erectors helps put the finishing touches on a decorative dome at Tampa International Airport's new Airside C. The original airside was demolished in 2003.

TAMPA - The Hillsborough County Aviation Authority is considering giving its support to Southwest Airlines' quest to repeal a federal amendment so it can fly nonstop between Dallas Love Field and Tampa.
The issue appears to be a no-brainer from Tampa's end, where Southwest is Tampa International Airport's No. 1 carrier and construction is nearly complete on a new Airside C that primarily will serve the Dallas-based airline.

The $134 million airside is expected to open in mid-April.

``If the act is repealed, it would allow Southwest to fly anywhere in the United States from Love Field, including Tampa,'' TIA Director Louis Miller said Thursday.

That could increase competition among carriers and lower air fares on the Tampa-Dallas route, Miller said. Those fares generally rank between the second- and fourth- most expensive among major destinations served from Tampa because of the dominance that American Airlines and Delta Air Lines have enjoyed on the route.

The average one-way fare between Tampa and Dallas in the first quarter of 2004 was $183.

The fare is surpassed only by those for flights serving Tampa and Cincinnati, Memphis, Tenn., and San Francisco, among major destinations.

Southwest is precluded from flying from its headquarters at Dallas Love Field to states beyond those contiguous to Texas, plus Alabama, Kansas and Mississippi, by The Wright Act.

The law is named after sponsor Jim Wright, a Texas Democrat and former majority leader of the U.S. House of Representatives.

The politically inspired federal legislation was enacted in 1979 to protect then-new Dallas-Fort Worth International Airport, which is less convenient to people in Dallas than Love Field.

Southwest declined an incentive-laden offer to move some of its flights to Dallas- Fort Worth International.

Now that Delta has reduced its flights, Southwest has said that it sees a greater opportunity for long-distance growth from Dallas Love Field, Miller said.

The airline has asked the Hillsborough County Aviation Authority for its support in backing a legislative sponsor to repeal the act.

Dallas-Fort Worth International also has sought Tampa's support for maintaining the act, especially since Delta last month reduced its daily departures there from 258 to 21 and the airport has been left with empty gates.

The aviation authority is expected to decide at its monthly meeting in March whether to support the big Texas airport or Southwest on The Wright Amendment issue.

Tampa International will assign Southwest and low-cost carriers Spirit and Independence Air to the new Airside C, which replaces the original that was demolished in 2003 because it became obsolete.

The airport will hold an open house for the public to inspect Airside C on Saturday, April 16.

Parking for the event will be free.

Once scheduled flights begin with the arrival of a Southwest flight on April 19, only those with airline tickets will be allowed to use the tram between the main terminal and the airside.

The new airside, designed by Alfonso Architects of Tampa and built by The Beck Group, will be the largest at the airport.

It is intended to create an ambience recalling the era when flying was a special event, the architect has said.


Reporter Ted Jackovics can be reached at (813) 259-7817.

[texman]

Fares 65% at midway then what they are at O'Hare?! I'm tired of this. When could the Wright Amend. possibly be lifted?

[St-T]

Southwest is methodically going about this... hang tight. =)

[gc]

Wright cases heard on Capitol Hill
Southwest Airlines, D/FW officials seek to sway Congress members
11:08 PM CST on Tuesday, February 15, 2005
By MICHELLE MITTELSTADT / The Dallas Morning News
http://www.dallasnews.com/sharedcont...ent.49b74.html

WASHINGTON – Flitting from meeting to meeting on Capitol Hill, representatives of Dallas/Fort Worth International Airport and Southwest Airlines Co. are pressing rival cases about the Wright amendment this week. Members of the North Texas congressional delegation, which is divided on whether to maintain decades-old flight restrictions at Dallas Love Field, find themselves the targets of the dueling lobbying campaigns. None more so perhaps than Rep. Eddie Bernice Johnson, the Dallas Democrat whose district is home to Love Field as well as many employees of D/FW and its biggest tenant, Fort Worth-based American Airlines Inc. Ms. Johnson's district used to include D/FW, leading her to say: "I understand both vantage points." D/FW and American are urging members of Congress not to touch the Wright restrictions, which limit commercial flights from Love Field to Texas and nearby states.

Southwest, which is based at Love Field, considers the 1979 law anti-competitive and wants Congress to lift it. Undecided about the merits of repealing the law, Ms. Johnson, a member of the House aviation subcommittee, met Tuesday with D/FW chief executive Jeff Fegan and chief operating officer Kevin Cox. Afterward, Ms. Johnson said she would welcome congressional hearings to determine any economic, safety and environmental impacts resulting from a repeal of the law. "I am just not comfortable until we look honestly at all of the factors and not just imagine what it would be," she said. Ms. Johnson said she would prefer a local solution to one imposed by Congress, and urged D/FW, Southwest, American and the cities of Dallas and Fort Worth to work out a compromise.

'Why change?'

Rep. Michael Burgess, a Flower Mound Republican who is strongly supportive of keeping the flight restrictions, disagreed about the need for a local summit – or any kind of change. "Why change a formula that's working well?" he asked. "We've got two great airports that are providing jobs and economic activity for our area." The issue may be forced on the Texans, however. Tennessee lawmakers are pressing for repeal of the Wright amendment. They hope they'll get cheaper fares if Southwest, the nation's largest discount airline, offers service between Dallas and their state. Mr. Burgess, who meets today with the D/FW representatives, had a simple message. "I say to the people in Tennessee: Go away." "There is no need to pull the whole house down in North Texas just so they can get a cheaper fare from Nashville to Dallas," he said.

Southwest's case

Southwest spokesman Ed Stewart said the airline has nothing to do with the Tennessee effort, but supports repeal of a provision he said has "geographically shackled" Southwest. The airline's chief lobbyist, Ron Ricks, is in Washington this week making the case against the law. "The debate continues and it's really just a matter of telling your side of the story," Mr. Stewart said.

Visible player

Southwest, which for years professed "passionate neutrality" over the Wright amendment, upset the status quo last November with a declaration opposing the flight restrictions. Since then, the carrier has become a visible player on the issue. "This is the first time they've been this direct in really being up here and working for it," said Ms. Johnson.

Bad for D/FW?

The D/FW representatives, who did not return a call seeking comment Tuesday, are making the case that repeal could harm their airport, which recently suffered a blow with Delta Air Lines Inc.'s decision to shut down its North Texas hub. They suggest Southwest could take over the Delta gates – an offer Southwest has declined. American is pressing its own case quietly to keep the law, declining to discuss its lobbying efforts.

E-mail mmittelstadt@dallasnews.com

[texman]

"I say to the people in Tennessee: Go away." "There is no need to pull the whole house down in North Texas just so they can get a cheaper fare from Nashville to Dallas," he said.

What a stupid, stupid man. I guess AA paid him off too.

[St-T]

American is playing their tired old game... lower fares now, raise them back after the competition is killed....


Posted on Wed, Feb. 16, 2005





American cuts fares to Nashville

By Maria Recio and Trebor Banstetter

Star-Telegram Washington Bureau


WASHINGTON - American Airlines has dramatically lowered fares between Dallas/Fort Worth Airport and Nashville, Tenn., in recent weeks, a move that could stymie efforts to overturn the Wright Amendment in Congress.

Fort Worth-based American recently slashed last-minute business fares between the two cities by nearly 40 percent, the airline said Tuesday. That's in addition to a nationwide fare decrease that cut last-minute ticket prices in January, for a total reduction of more than 50 percent.

"Tennessee travelers have voiced their opinion, somewhat loudly, in recent months that they were concerned about American's pricing levels between Nashville and D/FW," said Tim Wagner, an American spokesman.

"We found that there were opportunities to stimulate business, and fill more seats between Nashville and Dallas, by reducing the walk-up fares further," he said.

Nashville has been the cradle of the most recent effort to loosen or repeal the Wright Amendment, a 25-year-old federal law that limits flights from Dallas Love Field to Texas and states that border it. The Shelby Amendment added Kansas, Mississippi and Alabama in 1997.

In September, Rep. Marsha Blackburn, R-Tenn., introduced a bill co-sponsored by the entire Tennessee delegation that would add Tennessee to the states that can be served from Love Field.

That would allow Dallas-based Southwest Airlines -- the nation's largest low-fare carrier -- to fly a Nashville-to-Dallas route and sharply reduce fares.

Southwest refuses to operate at D/FW, citing the larger airport's congestion, and favors Love Field, where it enjoys a near-monopoly.

Soon after Blackburn filed her bill, Gary Kelly, Southwest's chief executive, publicly called for the repeal of the Wright Amendment, reversing the company's long-standing neutrality on the issue.

Meanwhile, D/FW Airport and American Airlines have prepared to fight any repeal efforts. They argue that allowing long-haul flights from Love Field will damage D/FW, which is already beset with empty gates and shaky finances.

Common interests

Many observers have expected Nashville to play a major part in any change to the law.

That's because Nashvillians travel in droves to North Texas. Last year, D/FW was the second-most-popular destination from Nashville, after Atlanta, according to the U.S. Department of Transportation.

"There are a lot of common interests between the two cities," said Raul Regalado, president of Nashville International Airport.

But fares between the two cities have typically been expensive. American, which has no nonstop competition on the route, had until recently charged $636 each way for walk-up tickets.

In January, when the airline lowered fares nationwide, that dropped to $499 each way. And American's latest price cut reduced walk-up fares to as low as $312 each way.

The sudden drop in American's prices could end the clamor among Nashville business travelers for cheap fares on Southwest to Love Field.

Gerard Arpey, American's chief executive, outlined the cheaper fares in meetings with Tennessee lawmakers last week, according to several members of the Texas delegation.

American "felt they have improved things so much that they didn't think it was an issue," said Rep. Michael Burgess, R-Flower Mound, who attended the session about legislative issues.

Rep. Kay Granger, R-Fort Worth, who has taken the lead in defending the Wright Amendment, said flatly, "I'm not expecting a bill."

More cuts

One Nashville official predicted that even more fare cuts are likely in coming weeks.

"I've been told by several congressional offices that something is probably in the works that will potentially solve our problem," said Michael Neal, president of the Nashville Area Chamber of Commerce.

Neal and officials from 10 Tennessee chambers of commerce called for repeal of the Wright Amendment last week during a lobbying trip to Washington.

But Nashville lawyer James Weaver, the chamber's vice chairman for government affairs, said American's new fare doesn't go far enough. "We're not satisfied with the current rate structure," he said.

Blackburn declined to comment. But her press secretary, Ryan Loskarn, said Blackburn would consider dropping the anti-Wright Amendment effort if American lowers fares steeply enough.

Some industry experts warned that prices could creep up again if Tennessee abandons its drive to overturn the law.

"Does American Airlines really think that the Tennessee politicians are that stupid?" said Scott Hamilton, an airline consultant with Leeham Cos. in Sammamish, Wash. "Those low fares aren't going to last very long once they back off."

American spokesman Wagner pointed out that Nashville isn't the only destination for which American has lowered fares from North Texas. Ticket prices between D/FW and Minneapolis, for example, were also cut, he said.

There is precedent for this type of trade-off on the Wright Amendment. In December 1987, Speaker Jim Wright, D-Fort Worth, brokered a deal in which American agreed to reduce fares between Wichita, Kan., and D/FW in return for Senate Minority Leader Robert Dole, R-Kansas, withdrawing legislation that would have included Wichita in the Wright Amendment.

Although it helped in the short term, fares in Wichita eventually rose again. In recent years, the city has paid incentives to discount airline AirTran Airways to compete with American at its airport -- a move that has pushed many fares down by more than 70 percent.

"Low fares last because of competition," Hamilton said. "Not because some big corporation does it out of the goodness of their heart."

IN THE KNOW

Tennessee to Texas

Dallas/Fort Worth was the second-most-popular destination from Nashville, Tenn., during the first 10 months of 2004.

Rank* City

1 Atlanta

2 Dallas/Fort Worth

3 Detroit

4 Chicago O'Hare

5 Baltimore/Washington

6 Orlando, Fla.

7 Chicago Midway

8 Charlotte, N.C.

9 Houston Hobby

10 Raleigh/Durham, N.C.

* Ranked by number of passengers flown

SOURCE: U.S. Transportation Department

[RobertB]

"Does American Airlines really think that the Tennessee politicians are that stupid?" said Scott Hamilton, an airline consultant with Leeham Cos. in Sammamish, Wash.

Well, that's a silly question.

Of course AA thinks Tennessee politicians are that stupid. They wouldn't have pulled this bait-and-switch if they didn't. It's a strategy that worked before, according to the article.

On the other hand, AA and other legacy carriers are in or near bankruptcy thanks to strategies that worked before...

[St-T]

You have GOT TO BE KIDDING ME....

American adds flights from D.C. to Nashville

By Trebor Banstetter

Star-Telegram Staff Writer


FORT WORTH -- American Airlines executives swear it's just a coincidence.

Yes, they acknowledge, the Fort Worth-based carrier is launching new nonstop service between Nashville and Reagan National Airport in Washington, D.C.

And yes, American's lobbyists happen to be pressing Tennessee's members of Congress to abandon efforts to overturn the Wright Amendment, which protects the airline's fortress hub at Dallas/Fort Worth Airport.

But there's no connection between the two events, insisted airline spokesman Tim Wagner.

"Not everything we do is necessarily tied to the Wright Amendment," he said in a polite but slightly exasperated tone Wednesday.

Deliberate or not, the new service announced Wednesday will be a nice perk for lawmakers who happen to live in Nashville. Previously, American offered no nonstop service from Music City to the nation's capital.

Beginning in May, American Eagle will start three daily flights from Nashville to Reagan National -- the airport that's just a few miles from downtown Washington, and convenient for traveling senators and representatives. The flights will be flown on 37-seat ERJ-135 regional jets.

Wagner pointed out that Eagle has launched eight new routes between other cities just this month.

"We evaluate every market to determine if we can serve a customer demand," he said. "Nashville and Reagan seemed like a natural fit."

American executives have been canvassing Washington in recent weeks, hoping to quell an effort to overturn the Wright Amendment, which restricts airline traffic at Dallas Love Field to connecting states, as well as Kansas, Alabama and Mississippi.

The law prevents Southwest Airlines from connecting distant cities to Dallas, because the airline refuses to operate at Dallas/Fort Worth Airport. That means American has no low-fare competition on many routes from D/FW, including flights to Nashville.

Tennessee legislators began the anti-amendment uprising last year, with a bill that would have exempted the state from the restrictions. That bill was sparked by Nashville businesses who complained of expensive fares to D/FW.

In recent weeks, American has sharply lowered walk-up fares between the two cities -- a move many observers said was designed to quell the rhetoric from Nashville business travelers.

Lobbyists from Dallas-based Southwest have also been talking up members of Congress, pushing for a repeal of the amendment.

That airline has offered nonstop service between Nashville and Washington for years, although to the less-convenient Baltimore/Washington Airport, which is about 30 miles from downtown Washington.

"Lots of legislators are big fans of Southwest, because they're traveling on the public's dime," said Southwest spokeswoman Beth Harbin. "Many consider us their company airline."

She also noted that her airline's flights are on full-sized Boeing 737 jets, with 137 seats.

Trebor Banstetter, (817) 390-7064
tbanstetter@star-telegram.com

[texman]

AA is like that friend you hated (or still hate) in high school. Always pulling dirty little tricks that are so obvious.

[St-T]

Is American going after Southwest?
American Airlines and Southwest seem to be engaging in a ruckus over the controversial Wright Amendment that limits flights out of Southwest's home airport. The latest comes after AA said it would cut fares between Dallas/Fort Worth (DFW) and Nashville. The Fort Worth Star-Telegram (free registration) says "American Airlines executives swear it's just a coincidence," but the fare change comes after Tennessee lawmakers launched a legal effort to repeal the amendment. One reason Tennessee legislators are clamoring for the change? They're upset over what they say are high fares between – you guessed it – Dallas and Nashville. The Wright Amendment prevents airlines from flying from Dallas' Love Field – Southwest's home airport – to any state that's not adjacent to Texas. Lower fares on the route could mute Tennessee's call for a repeal of the Wright Amendment, according to a separate story in the paper.
Wright was enacted in 1979 to protect the then-new Dallas/Fort Worth International, since officials were worried that airlines would not shift their flight operations to the new airport. Kansas, Mississippi and Alabama were exempted from the restriction in 1997. Although it could fly anywhere it wants from DFW, Southwest refuses to operates there, saying that the busier Dallas airport does not fit its low-cost business model. Also adding to conspiracy theorists' cries, American is adding service between Dallas/Fort Worth and Washington's Reagan National Airport. In Washington, of course, "American's lobbyists happen to be pressing Tennessee's members of Congress to abandon efforts to overturn the Wright Amendment, which protects the airline's fortress hub at Dallas/Fort Worth Airport," the Star-Telegram writes. Airline officials say that neither the fare cuts nor the Washington flights are aimed at Southwest. "Not everything we do is necessarily tied to the Wright Amendment," a somewhat exasperated AA spokesman told the paper. Posted at 7 a.m. ET
http://www.usatoday.com/travel/flights/today/sky.htm

[St-T]

Posted on Fri, Feb. 18, 2005





Airline: Wright law still wrong

By Bryon Okada

Star-Telegram Staff Writer


Southwest Airlines' top lobbyist says the carrier's efforts to repeal the Wright Amendment will continue with or without the support of the Tennessee congressional delegation.

Southwest is looking for legislative help from several states in its campaign. Ron Ricks, a Southwest senior vice president who was in Pennsylvania on Thursday, said a great deal of interest in repealing the Wright Amendment remains.

"We've put up with the injustice long enough," he said. "We'll take as long as it takes to get it corrected."

Ricks is knocking on doors, trying to explain to lawmakers Southwest's version of the contentious history that led to the "Love Field Compromise," also known as the Wright Amendment, in 1979.

Southwest lobbyist Joe O'Neill of Public Strategies Washington and San Antonio lawyer Tom Loeffler and his firm are helping Ricks.

The Wright Amendment -- named after former Rep. Jim Wright of Fort Worth -- effectively bans Southwest from offering long-haul flights at Dallas Love Field, allowing flights only to points in Texas and states that border it. The subsequent Shelby Amendment loosened the restrictions to allow flights to Kansas, Mississippi and Alabama.

Tennessee business leaders have asked their state's congressional delegation to seek a repeal of the amendment, citing high fares to Dallas/Fort Worth Airport. Rep. Marsha Blackburn, R-Tenn., who introduced a bill to change the Wright Amendment last year, was believed to be a point person for introducing a new bill.

Executives with American Airlines, the dominant carrier at D/FW, have also met with Tennessee lawmakers. The Fort Worth-based carrier recently reduced fares between D/FW and Nashville and added service between Nashville and Reagan National Airport in Washington.

The fare cuts prompted some North Texas lawmakers to predict that the Tennessee delegation might back off from plans to seek changes to the Wright Amendment. A spokesman for Blackburn said this week that no decision has been made.

On Thursday, Ricks called the Nashville fare cuts "the miracle of competition."

"If the potential threat to the Wright Amendment saved millions for the people of Tennessee, just ask what the actual repeal would do for the country," he said.

Meanwhile, lobbyists for Dallas/Fort Worth Airport, led by its No. 2 executive, Kevin Cox, have been telling their view of the same history -- and the belief that D/FW's future is brightest with the Wright Amendment intact. The D/FW lobbying team in Washington includes Jeffrey Munk of Hogan & Hartson and G. Stewart Hall of the Federalist Group.

"If it becomes a consummate battle and Southwest continues to rattle this saber, it will require us to continue our efforts and to be on our toes," Cox said.

While Ricks said Love Field is and will be too small to pose "a significant threat to D/FW," Cox said long-haul flights out of Love could siphon enough traffic away from D/FW to ruin its international profile.

D/FW has ordered a study by an outside firm to look at the financial impact of lifting the Wright Amendment restrictions, but the study won't be ready for several weeks, Cox said.

American Airlines is also lobbying Congress to keep the Wright Amendment, but not necessarily in coordination with D/FW, spokesman Tim Wagner said.

[St-T]

VICE PRESIDENT PUBLIC AFFAIRS: KEN CAPPS 972-574-8080 KCAPPS@DFWAIRPORT.COM DFW INTERNATIONAL AIRPORT CALLS AMERICAN AIRLINES’ EXPANSION TO BRAZIL GREAT NEWS FOR NORTH TEXAS Officials Expect More New Service Before International Terminal D Opens in Summer 2005; Economic Engine is Refueling (DFW INTERNATIONAL AIRPORT, TX - February 17, 2005) - DFW International Airport officials today said American Airlines' announcement of new flights to Sao Paulo, Brazil is positive news for all of North Texas. American announced this morning it would introduce a second nonstop flight between DFW and Sao Paulo starting in June. This announcement is especially good news as DFW moves toward opening its new International Terminal D later this summer. International Terminal D will boast two- million square feet of the latest in technology, security and amenities for the traveling public, and will solidify DFW International Airport as one of the premier U.S. gateways to the world. "This announcement is testimony to the impact a strong and shared international airport has on the North Texas economy," said Dan Petty, President of the North Texas Commission. "It is further proof of the profound impact the new international terminal will produce in terms of jobs, tourism, and economic growth.” The North Texas Commission and DFW management said the announcement also illustrates and reinforces the need to keep the Wright Amendment intact to assure a level playing field for all airlines and to keep refueling the region’s undisputed economic engine. International traffic at DFW is primarily supported by connecting passengers who use the Airport as a hub to more than 30 destinations around the world. Officials are concerned passengers taken away from DFW to flights at Love Field will jeopardize future growth of international air service to North Texas. -more- FOR IMMEDIATE RELEASE February 17, 2005


I love how they have to mention the Wright amendment in this release. And, I don't get the point of how Love Field is going to hurt Int'l travel.

Two scenarios:

1. I live in Dallas and want to fly to Brazil. I would go to DFW since Love Field will not have Int'l flights.

2. I live in Tulsa and need to fly to Brazil. Why would I fly SW to Love Field and then have to take a cab to DFW? I would buy a ticket on AA from Tulsa to DFW and then connect to my Int'l destination.

I just don't get their argument here. Does anyone????

[tamtagon]

^ I dont get it. The North Texas Commission and DFW management are simply spinning the announcement to support retention of Love Field restrictions. They may be (W)right, but I dont think so. International passengers are not as likely to connect through DFW as long as AA charges 20% more for domestic leg of the trip.

When you think about it, AA should want to keep Southwest at Love Field. By offering full domestic service through Love, 40% of Metroplex population prefer DFW because it's closer. Move Southwest to DFW and the airlines directly compete for all the Metroplex domestic traffic; keep Southwest at Love, and AA gets little competition for Fort Worth travelers. Futhermore, the physical size of Love Field will limit the overall scope competition, big planes are not allowed at Love.

For DFW airport, of course the best resolution would relocate SW from Love Field, but for everyone else, Southwest should stay. It's clear the competition over Dallas based travelers' long haul trips will force AA to lower their DFW prices to keep up with Southwest's Love Field prices. The lower price of domestic service brought on by lifting Love Field will, IMO, help generate greater international volume through DFW. Futhermore, the increase of other right-priced flights at DFW from non-legacy carriers is much more likely if Southwest remains at Love Field.

There must be something I'm missing, some cornerstone dependancy DFW has with the Love Field restrictions. That full domestic service through Love Field would max-out the airports capacity through the addition of a couple hundred more flights a day does represent a claim to about 10% of DFW's current volume, this trade will be more than made up by volume increase among regional as well as international passengers. Lower prices from AA at DFW are probable to increase domestic travel through DFW. To me, restrictions on Love Field are the single biggest inhabitor to increased volume through DFW.

[gc]

American says it will build Love Field hub if Wright limits lifted
11:08 PM CST on Friday, February 18, 2005
By ERIC TORBENSON and VIKAS BAJAJ / The Dallas Morning News
http://www.dallasnews.com/sharedcont...pey.3ae20.html

American Airlines says it stands ready to build a full-fledged hub at Dallas Love Field, shifting much of its operation from Dallas/Fort Worth International Airport, if flight restrictions are lifted from the city airport. Such a move would harm the fragile finances of D/FW as well as American, airline officials said Friday, not to mention adding a lot of noise and traffic to the area around Love Field. But Gerard Arpey, American's chairman and chief executive, said the world's largest carrier would have little choice but to split its North Texas operations to remain competitive in this market. "Were the Wright amendment to be repealed, we would have to build an operation at Love Field because that's where the customers are going to want to go," he told the Dallas Morning News editorial board. The remarks represent American's strongest public stance on how it would defend its North Texas business in the face of Southwest Airlines' effort to open Love Field to long-haul service.

American's three gates at Love Field aren't currently in use. To create a hub schedule with connecting banks of flights, American would need many more gates to build a hub "as extensive as necessary to be competitive" with Southwest, Mr. Arpey said. But splitting American's North Texas operations would hurt local travelers, he said, because D/FW would be a vastly less efficient hub if it had to compete against Love Field for passengers. Mr. Arpey said he views Love Field's master plan, which limits expansion at the airport, as "invalid" without the Wright amendment in place. Southwest and city officials said they disagreed with American's position. "Mr. Arpey is incorrect that the master plan would be null and void if the Wright amendment is lifted," said Dallas Mayor Laura Miller.

Early protection

Congress passed the Wright amendment 25 years ago to protect a then-fledgling D/FW from competition from Love Field. It limits commercial flights with more than 56 seats from Love Field to the states bordering Texas. A later amendment added Kansas, Mississippi and Alabama. In November, Southwest dropped its long-held neutrality on the law, setting in motion a wrenching regional debate about air service. The carrier now says the law is anti-competitive and inflates airfares in North Texas. Southwest is actively lobbying Congress for changes to or repeal of the flight restrictions, while D/FW has made a major push to keep the rules in place. For the most part, American has kept a low profile on the growing debate, letting D/FW officials do most of the public speaking. But the airline continues to lobby to keep the law intact.

The chances for changing the Wright law remain far from clear. Some Tennessee lawmakers have pressed for repeal of the restrictions, hoping they'll get cheaper fares if Southwest offers service between Dallas and their state. So far, the North Texas congressional delegation appears divided on the issue. Three of the region's eight House members, all from the Dallas side, say it's time to loosen or scrap the law. A key member of the delegation, House energy and commerce Chairman Joe Barton, R-Ennis, who represents part of Fort Worth, supports keeping the Wright amendment in place.

Threat not new

An unrestricted Love Field would quickly explode with passengers, forcing American to divert planes and resources from D/FW, its largest hub, Mr. Arpey said. It wasn't the first time that an American executive threatened to shift significant operations to Love Field from D/FW. Faced with the prospect of Legend Airlines flying American's best customers from Love Field in the late 1990s, American's chairman at the time, Robert L. Crandall, said he would aggressively enter the city airport. Mr. Arpey declined to say how many flights American would shift to Love Field. He said American's response would depend on what the competition did, including how other airlines serving D/FW might move operations to an unrestricted Love Field. Much of American's argument is based on where its best North Texas customers live. At the meeting, American officials presented a map showing their greatest concentration of frequent fliers living closer to Love Field than to D/FW. "I think Southwest has a chart just like this, and if I had a downtown monopoly hub airport in a city like Dallas, I would try to get it just like they are," Mr. Arpey said. "If I had the option of a shorter drive time to an airport, I would take it."

A forever thing?

American officials say they signed off on the Love Field master plan with the assumption that the Wright amendment would stay in place forever. Dallas owns the airport, and its master plan limits the number of gates to 32 and curbs total flights. Ms. Miller said she would like to lower the maximum number of gates available to 24 to minimize the impact of any airline expansion at Love Field. Southwest insists the master plan won't change if the Wright amendment is repealed. "The master plan followed the prescribed process, it had [American's] input," said Bob Montgomery, vice president of properties for Southwest. Since the Federal Aviation Administration approved the master plan, he said he doubted American would be able to change it. "I have a thing on my wall that has American Airlines' signature on it," Mr. Montgomery said.

Dueling hubs

American's argument against changing the Wright amendment leans on what it believes would be the detrimental effects of dueling hub airports in North Texas. For many of American's flights to make money, they require lots of connecting passengers at D/FW, where nearly two-thirds of its 53.2 million passengers changed planes last year. The carrier will fly 819 daily flights from D/FW by this summer and is adding several international flights in concert with the opening of a new international-only terminal. Had the airline known in 1998 that the Wright amendment might be altered, Mr. Arpey said, it would not have participated in the $2.7 billion capital improvement project that has created Terminal D and the SkyLink passenger shuttle system at D/FW. D/FW officials said the Wright amendment has to stay to protect the multibillion-dollar investment in new facilities.

"When you begin to splinter a hub and divest it between two airports, you inevitably lead to the unwinding of everything that has led to this economic engine," said Kevin Cox, the airport's chief operating officer. American's plans to expand aggressively at Love Field are no surprise to D/FW, where the airline pays three-quarters of the operating expenses. "It's precisely what we would expect from them, unfortunately," Mr. Cox said. Mr. Arpey said his carrier will continue to "educate" officials on their stance and dispel what he sees as "a lot of confusion" about Southwest's position. "No injustice has been done to Southwest Airlines," he said. "In fact, I think [one] could argue just the opposite, that back in the 1970s they were given an advantage in their ability to stay at Love Field when everyone else was forced to go to D/FW."

E-mail etorbenson@dallasnews.com and vbajaj@dallasnews.com

[Mballar]

American Airlines says it stands ready to build a full-fledged hub at Dallas Love Field, shifting much of its operation from Dallas/Fort Worth International Airport, if flight restrictions are lifted from the city airport.
This threat is total BS. Love Field's master plan does not allow the airport to expand much more. . .and certainly not enough to support the type of hub AA is talking about here. Shows AA's desperation.


Such a move would harm the fragile finances of D/FW as well as American, airline officials said Friday, not to mention adding a lot of noise and traffic to the area around Love Field.
Again, the Love Field Master Plan already takes noise levels into account (through various restrictions). And surrounding residents, City of Dallas, airport and other public officials agreed that noise level after full expansion would be acceptable. And, as the article points out, the plan successfully went through the rigors of the FAA's approval process.


But Gerard Arpey, American's chairman and chief executive, said the world's largest carrier would have little choice but to split its North Texas operations to remain competitive in this market. "Were the Wright amendment to be repealed, we would have to build an operation at Love Field because that's where the customers are going to want to go," he told the Dallas Morning News editorial board.
What he's saying doesn't make any sense to me. If he knows that customers want to go to Love Field, why don't they currently offer any flights from there?


Mr. Arpey said he views Love Field's master plan, which limits expansion at the airport, as "invalid" without the Wright amendment in place. Southwest and city officials said they disagreed with American's position. "Mr. Arpey is incorrect that the master plan would be null and void if the Wright amendment is lifted," said Dallas Mayor Laura Miller.
Miller is right. The restriction on expansion, expressed through the Master Plan, is directly tied to noise levels and other potential negative impacts.

[gc]

^ Yep, it doesn't make sense to me at all.

It is interesting, however, that most of their frequent fliers (profitable customers) allegedly come from the east side of the Dallas Metro though.

Did I read a "downtown airport"?

[Geaux Tigers]

Like sands through the hour glass, so are the days of our aviation business here in N. Texas....

[St-T]

What I see as the main difference between AA & SW: SW has said numerous times that they don't want to spit operations because it is not profitable. AA says they will have to go to Love Field to compete and therefore split into money loosing operations. AA will make a business decision to LOOSE money, SW will not. Now do we understand why SW is still making money and AA isn't?

Also, there is NO WAY that they can build a large hub at Love Field. They are a hub and spoke airline and need to funnel through one airport to make money. All we need to do is look at Houston. Continental has a large hub at Bush, SW is at Hobby. Both airports are growing and doing well. AA is trying everything to sway opinions and I think it's making them look like a bunch of whiney bitches.

Last, they say that their best customers live closer to Love and will start flying SW. Bull Shit. I'm a consultant (which requires a lot of travel) and Platinum on AA. Most of my co-workers (that are all frequent flyers) live in Denton Co, CoCo, & NE Tarrant. Even if they are flying to Austin they fly AA. I would really like to see the map of their best customers and how close they are to Love. And, as a AA frequent flyer I will still fly AA for long hauls...even if I have a choice between SW/AA. I want the possibility to get upgrades... I want miles that I can use for International flights. I will fly SW on flights under 2 hours because I'm a lot closer to Love...but I do that now anyway.

[Geaux Tigers]

I just read a thread on Airliners.net that says SWA is supposed to make "a major announcement" on Tuesday. "You'll remember where you were when you heard it" is the tag line. I doubt this would have anything to do with repealing the Wright Amendment as you can't keep legistlation like that a secret. However, maybe they were just pulling everyone's chain when they said they had no interest in servicing N. Texas out of DFW? Reading the thread over on that board though, the best speculation regarding the annoucement is that they're either 1) starting international service to the Bahamas out of their Florida airports, 2) they're starting inflight entertainment on long-haul flights, or 3) they're adding a different type of plane to their fleet (either Airbus or a new Boeing model).

Anyway, I guess we'll find out on Tuesday. Fingers crossed it has something to do with aviation in N. Texas!!

[texman]

Looks like AA is really going back to the Robert Crandall days. How sad. I agree with most of you that this is total BS, but if Wright is lifted, I do expect them add alot of flights out of those three gates they have currently.

[psukhu]

What are the pros and cons of Southwest shifting to DFW?

[aceplace]

Looks like AA is really going back to the Robert Crandall days. How sad. I agree with most of you that this is total BS, but if Wright is lifted, I do expect them add alot of flights out of those three gates they have currently.

It's one thing to run Legend Airlines out of business, but could AA survive a toe-to-toe fight with Southwest?

[slfunk]

Sounds like to me AA knows this is not an easy win, and much like a kid in elementary school is starting throw a temper fit. In this fit its trying to throw threats that sound detremental, but hold very little consequences at the end of the day. I say let them move into Love Field, I'm all for it. Like R. Mabla outlined and many others have already said, Love Field can not grow to compete with DFW due to its master plan which would restrict number of flights and the size of aircraft. After all, look at most other cities with multiple airports, AA already flies into them. Prime example NYC with three smaller airports then DFW. AA flies into Newark, JFK and Lagurdia. No major inconnvience there for the passengers, plus when the DART rail gets built you'll be able to connect to flights b/w Love Field and DFW should that be the case. Continental Airlines already makes it as hassle free as possible when in NYC. You can check in at Penn Station before going to Newark. When traveling up there I do like having the option of which airport I wish to choose into. Many of times has to do with what time and what the traffic may be like getting into Manhattan.

I can see DFW becomes the connecting hub for AA (which is already something like 70% of DFW's business) and Love Field would be the primary airport for people coming from major airports for business travel to Dallas with a few connecting regional flights.

[RobertB]

I just read a thread on Airliners.net that says SWA is supposed to make "a major announcement" on Tuesday. "You'll remember where you were when you heard it" is the tag line. I doubt this would have anything to do with repealing the Wright Amendment as you can't keep legistlation like that a secret. However, maybe they were just pulling everyone's chain when they said they had no interest in servicing N. Texas out of DFW? Reading the thread over on that board though, the best speculation regarding the annoucement is that they're either 1) starting international service to the Bahamas out of their Florida airports, 2) they're starting inflight entertainment on long-haul flights, or 3) they're adding a different type of plane to their fleet (either Airbus or a new Boeing model).

Anyway, I guess we'll find out on Tuesday. Fingers crossed it has something to do with aviation in N. Texas!!

The best LOL suggestion on that list:

They have purchased Addison Airport and will commence their Wright busting activities from that airport.

There are plenty of other possibilities listed, but the only ones that are 1) within the realm of possibility and 2) truly "remember-where-you-were" worthy are:

* Name change to reflect their national reach
* Adding a new aircraft type
* Adding an international/Carribean/Hawaii destination
* Purchase/merger (this would be darned unlikely)

I suspect, though, that it'll be something more mundane, like adding another domestic city or expanding their codeshare agreement.

[Geaux Tigers]

^Nah, Addison is too close to DFW, so AA would have to start a major hub there in order to compete!!

Maybe they'll move their ops to Dallas Executive (Redbird) so AA won't feel threatened anymore. I agree with you on the over-hyping of this announcement. I think last time SWA made a life-altertering announcement, it was to say that they were starting service to Philadelphia. Whoopy!!!

I seriously doubt the name change theory, even though SWA is a national airline now. A more likely theory will be that they're:

A) Starting service to a new city outside the contiental US (look for new service to Hawaii or The Bahamas)
B) Adding new planes to the fleet besides to standard 737's.
or
C) They're buying AA and closing the DFW hub as their first order of business!!! (Not really, just thought I'd throw that one in there!!!)

[St-T]

I've heard that Mexico would be the first place they would go outside of the US.

[St-T]

WATCH OUT DFW & AA... Now SW is starting the PR game.

GO SW!!!

Wright Amendment Information

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Travel into and out of Dallas Love Field is subject to the limitations of the Wright and Shelby Amendments. Federal law prohibits Southwest from offering transportation for sale between Dallas Love Field and any point beyond Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Mississippi, and Alabama. Recent events led to Southwest's decision to seek a change to the 25-year-old Wright Amendment at Dallas Love Field.

Statement regarding repeal of the Wright Amendment from Southwest Airlines' CEO Gary Kelly
Wright Amendment timeline
Frequently Asked Questions

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Statement from Gary Kelly regarding Repeal of the Wright Amendment


The Wright Amendment is protectionist, anti-competitive and anti-consumer. It is outdated, too. It's time for a change.

Two recent events led to Southwest's decision to seek a change to the 25-year-old Wright Amendment at Dallas Love Field. One, the Tennessee congressional delegation put the Wright Amendment in play by introducing legislation adding Tennessee. Two, Delta Air Lines announced it would vacate 23 gates at Dallas/Fort Worth International Airport and reduce its daily flights by more than 200. Delta will leave a huge void for travelers, which creates an opportunity for another airline to expand. Southwest wants to expand the availability of its low fares, and room is available at Love and D/FW.

The Wright Amendment is a 1979 federal law designed to protect D/FW Airport by restricting Love. Commercial airline use of Love was established long ago through years of litigation, ultimately before the U.S. Supreme Court (twice). In 1979, after all the litigation, then-House Majority Leader Jim Wright of Fort Worth spearheaded this legislation over Southwest's vehement objections and strenuous lobbying efforts. Southwest and Herb Kelleher, after years of litigation over Love, agreed they would not challenge the Wright Amendment in court, but Southwest never committed to avoid legislatively challenging the Wright Amendment.

Others have challenged the Wright Amendment before, culminating in the 1997 Shelby Amendment, which added three more states. Many predicted then that the Wright Amendment eventually would be repealed. After Shelby, the city of Dallas underscored its commitment to D/FW and addressed local noise concerns with the limitations set forth in the March 2001 Dallas Love Field Master Plan that should completely satisfy D/FW.

Circumstances have changed dramatically since 1979. D/FW, one of the world's largest and most successful airports, is no longer a child. Love is one-fifth its size and limited, by the Master Plan, to 32 gates. D/FW has more than 140 gates and hardly needs federal government protection to succeed. If it does, something must be wrong. Most major U.S. cities have multiple airports. North Texas should be proud, not upset, to have two. Tiny Love is no threat to mighty D/FW. Plus, Southwest had no service beyond the "Wright Amendment area" in 1979. Today, we serve much of the United States.

D/FW has idle gate capacity, and officials are legitimately motivated to lease that space. Love has idle gates and an underutilized new parking garage. Anyone worried about that? As a city of Dallas, Dallas County and Dallas school district taxpayer, Southwest is. Our corporate headquarters are in Dallas. We employ more than 5,500 people in our various Dallas operations. Although we're a growth airline, we're unable to grow at Love because of the Wright Amendment. In fact, our Love business and flights have been shrinking since 9-11. Delta's planned exit will leave a void that we could help fill, except for the Wright Amendment. Consumers would benefit twice because we could add flights to new markets from Love at significantly lower fares, and D/FW fares would then come down, too. The lack of competition from Southwest is why D/FW is one of the highest average fare airports in the country.

As proof, American Airlines announced that it was offering dramatically lower fares from its Miami hub. Why? To regain customers attracted to the nearby Fort Lauderdale airport, served by several low-fare carriers, including Southwest. American said that the pricing move would increase passengers in Miami and give American more revenue. That's the beauty of competition - and what's missing in North Texas.

After much thought, we decided Southwest service at D/FW too risky. It would split our operation unnecessarily between two airports, break our network and drive our costs up. We would have to reduce service further at Love to make that work, creating even more idle capacity, which isn't good for Dallas. Southwest avoids most fortress hub airports like D/FW, where we face significant risk from the 700-departure-a-day gorilla, American Airlines. Delta decided the risk and the losses were too great. That's why no other airline has jumped at the chance to take on American at D/FW. Even D/FW called them a "monopoly." Avoiding fortress hubs has worked well for us. For example, we serve Chicago Midway, not O'Hare, and Fort Lauderdale, not Miami; there are many more. It's no coincidence we are the most profitable airline with the lowest fares over the last 31 years.

Finally, with respect to concerns about unbridled growth at Love, that has been thoroughly addressed by the Love Field Master Plan. As D/FW Airport and its constituents well know, it allows for no more than 32 gates. That's all the protection D/FW needs, and it limits noise, pollution and ground traffic congestion to acceptable levels. The destinations we choose to serve from Love are completely irrelevant. Just look down the road at our Houston Hobby operation. Unrestricted, it has only 16 more daily departures than Love. Change Love's restrictions and, like Hobby, you'll have more airline competition. And by the way, Houston's George Bush Intercontinental Airport seems to do just fine competing with an unrestricted Hobby. We have to face brutal competition as an airline. Why shouldn't D/FW face a little competition from Love? North Texas will thrive with changes to the Wright Amendment. More competition is good. Lower fares are good. Replacing flights lost from Delta's exit is good. More jobs are good. Utilizing idle facilities is good.

This is simple. Don't let someone try to tell you this is complicated. Times change, as do laws. This is a free country. Let's give North Texans the freedom to fly on Southwest.

The above statement appeared in the Dallas Morning News on November 28, 2004

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The Wright Amendment: A Timeline
1917
The U.S. Army names its Dallas training field in honor of Lt. Moss Lee Love. Dallas purchases the surplus field from the Army in 1928 for $350,000.

1968
Dallas and Fort Worth, under pressure from the federal government, agree to build a regional airport to replace Dallas Love Field. The airlines serving Love pledge to move to the new airport.

1971
Overcoming almost four years of litigation designed to put Southwest out of business before it even started service, Southwest Airlines begins intrastate service between Dallas, Houston and San Antonio.

1972
Not being a party in the DFW deal, Southwest chose to keep Love Field as it headquarters airport. The DFW Airport Board and the cities of Dallas and Fort Worth sue Southwest over their decision to remain at Love Field.

1973
Love Field enplanements peak at 6,668,398. A federal court grants Southwest Airlines the right to remain and offer intrastate air service at Love Field. The decision was upheld after a long and expensive appellate process.

1974
Dallas/Fort Worth International Airport officially opens.

1978
Airline Deregulation Act of 1978 introduces new fare and route competition and permits unrestricted entry into air passenger marketplace by new domestic carriers. This new law, passed by Congress and signed by President Carter, established a national policy of favoring competition over governmental regulation as the means of determining where an airline could fly.

1979
Southwest Airlines begins interstate service to New Orleans, Louisiana. Infuriated by Southwest’s entry into interstate markets, DFW and the cities of Dallas and Ft. Worth again try to block Southwest’s growth (and low fares) through the courts. Losing that effort, the DFW supporters turn to an old ally, U.S. House Leader Jim Wright. Wright passes the Wright Amendment to the International Air Transportation Competition Act of 1979. The amendment permitted air carrier service between Love Field and points within Texas, Louisiana, Arkansas, Oklahoma and New Mexico, provided the air carrier did not permit through service or ticketing and did not offer for sale transportation outside these states. Permitted charter air transportation provided that these charters did not exceed 10 flights per month. Permitted air transportation provided by commuter airlines operating aircraft with a capacity of 56 passengers or less.

1997
United States Senator Richard Shelby, offended by high airfares his state, amended the Wright Amendment to permit Southwest to fly between Love Field and Alabama. Before the Shelby Amendment’s final passage Mississippi and Kansas were also added.

2001
The Dallas City Council unanimously adopts the Love Field Master Plan, defining the future of Love Field. The Master Plan caps capacity at Love Field to 32 gates, less than ¼ the size of DFW. The Master Plan also ensures that Love Field will never rival DFW in the size and scope of its operations.

2004
September 2004: Tennessee's U.S. House delegation, introduces a measure to allow Southwest to fly from Love to their state. The reason for the legislation: the lack of competition and higher airfares as a result thereof.

November 12, 2004
Southwest Airlines says it now opposes the Wright amendment, believing it's anti-competitive and outdated. DFW responds, vowing to fight any attempt to repeal the Wright Amendment. Southwest vigorously and vehemently opposed restrictions on Love Field when first attempted by Jim Wright in 1979. After twelve years of unrelenting litigation, all intended to drive Southwest from the marketplace, Southwest accepted the compromise, which became law. Failure to do so could have resulted in even more restrictive terms and/or continued efforts by the DFW parties to put Southwest out of business by forcing it to terminate operations at Love Field. The Wright Amendment had but one purpose: to protect DFW (and the airlines serving it) from competition. DFW is now one of the busiest, most successful airports in the world. To whatever extent DFW needed governmental protection in 1979, it most assuredly does not need it now.

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Wright Amendment FAQ
Will DFW be hurt if the Wright Amendment is repealed?

DFW is one of the world's premier airports served by many of the world’s airlines. As competition brings fares down, more passengers will use DFW. Overall airport revenue from parking, concessions, and passenger facility charges ($4.50 per passenger) will rise.

Won’t Dallas be harmed with two competing airports in the area?

Many major metropolitan areas have multi-airport systems—for example, Southern California, Northern California, South Florida, New York, Chicago, and Houston. Over ten years ago, a leading airport consultant advised the Dallas City Council that it should plan for a third area commercial airport. Competition at multiple airports gives people freedom of choice and, through competition, lower fares. Houston is an excellent example of how competing airports can coexist. The City of Houston benefits from excellent service and low fares. Hobby and Bush Intercontinental complement and support each other. Houston has both global reach and competitive airfares.

Would Southwest Airlines cut flights to other markets in order to sustain new service from Love Field if the Wright Amendment were repealed?

No. Markets obtain and retain flights based on their independent viability. Lifting the Wright Amendment won’t necessarily add (or detract) flights from a market. Rather, more connections and schedule options become available to markets that are not currently available through Dallas. Cities can promote their area as a destination to outlying markets. Weaker shorthaul flights can be supported with possible new connecting passengers traveling to destinations beyond Dallas. For example, if the Wright Amendment were lifted, Passengers in El Paso would have schedule options to Chicago without having to transfer in Albuquerque, thus freeing up seats for more Customers who need to fly directly West. Passengers in Midland-Odessa would have more schedule choices and low-fare options to markets like St. Louis, Nashville, or Chicago. Lubbock suddenly becomes a more convenient and accessible destination to market for consumers in the Midwest and East. Dallas passengers might stop in Amarillo enroute to Las Vegas. These steps would strengthen those other cities, not just Dallas.

If competition is allowed to flourish by removing the Wright Amendment, will Love Field grow too much?

No. Southwest Airlines supports the Love Field Master Plan which caps the number of gates at Love Field. Love Field is capacity controlled and cannot grow beyond what Love Field facilities will allow, regardless of what happens on the Wright Amendment.

What about parking at Love Field? Can it accommodate more travelers?

Yes. A new parking garage was completed at Love Field 2003. Ample parking is available.

Won’t any additional flights at Love Field increase noise?

No. Southwest has a modern, quiet fleet. Southwest has retired many airplanes and replaced them with the Boeing 737-700, the only airplane Southwest is currently purchasing. The 737-700 is very quiet and powerful. It gains altitude more quickly thus diminishing the noise perceived by people on the ground. These newer airplanes are reducing the noise level at Love Field.

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[LoneStarMike]

Move to appease may well backfire
By Mitchell Schnurman
Star-Telegram Staff Writer
February 20, 2005

It's early in the political-economic war over the Wright Amendment, but for a moment last week, American Airlines appeared to win a key battle.

The company appeased a Tennessee delegation, the group that was supposed to champion changes to the law, by reducing airfares to Nashville and adding new service to Washington.

A few days after the price cuts and a private meeting with American's CEO, the head of Nashville's chamber of commerce said the problem -- its high walk-up fares -- had probably been solved.

That prompted Rep. Kay Granger, R-Fort Worth, to say that she no longer expects a bill to repeal the law to be filed.

So much for standing on principle.

It's naive to think that Tennessee would fight for freer markets in the North Texas skies after satisfying its own self-interest. But quelling this uprising was a bit too easy for American -- so easy, in fact, that it could backfire.

American said the timing of the new Nashville-Washington service was a coincidence. As for the lower fares, American said it was trying to boost traffic and respond to consumers who complained about American's prices.

Maybe fliers at Dallas/Fort Worth Airport ought to start a petition drive so American can hear what they want. Hint: See Nashville.

Supporters of the status quo may now point to Tennessee and say it proves that we can get lower fares without killing the Wright Amendment, the 1979 law that limits long-haul flights from Love Field.
But Southwest Airlines, the other player in the debate, offered a more credible interpretation: If the mere threat of competition from Love can save Tennessee consumers millions of dollars, imagine what the real thing would do for everyone else?

At the minimum, other airports will take note of how Nashville played this hand and wonder whether they can wrangle some fare cuts, too. Maybe they'll call Southwest and volunteer to play the squeaky wheel.

The bottom line is that the Music City maneuvers aren't the beginning of the end of the Wright Amendment debate. As Winston Churchill once said about a real battle, it may only be the end of the beginning.

The intensity is rising on both sides, and it may not be long before we have to consider the worst possible outcomes: Either American shifts hundreds of flights from D/FW to Love, which its executives are already discussing publicly, or Southwest moves much of its Dallas operation -- even its headquarters -- to a more hospitable clime.

There is too much at stake for this issue to be resolved with a few backroom deals, far from the public view.

I'm not suggesting that American Airlines did anything unethical or immoral in giving Tennessee some breaks and possibly slowing the legislative momentum. Smart politics can be smart business.

But the episode has a fishy odor, and economist Michael Davis of Southern Methodist University put his finger on the problem.

"American Airlines is responding to political pressure, not market pressure," Davis said. "In our system, we believe that competition is good for consumers, so we're upset when there's political manipulation."

If American were cutting fares in response to another airline, we'd celebrate. That's how free markets are supposed to work. But it's cutting prices to head off long-haul competition from Love Field.

And the point of airline deregulation in 1978 was to let markets rule, rather than politicians.

Cal Jillson, a political scientist at SMU, says that lawmakers often like to see big changes come in incremental, informal ways. That relieves some of the political pressure and lets everybody adjust gradually.

The fare cuts in Tennessee, American's systemwide price cuts in January, and even the opening of three states to Love Field flights in 1997 are examples of incremental moves that drain some of the urgency for reform, Jillson says.

He compares that to opening a few gates on a dam so the rising water never gets strong enough to break down the walls.
It's an apt analogy, considering how the Wright Amendment fight is escalating.

Southwest, now pushing for repeal, vows to push on, with or without Tennessee's help. And it has some serious cards to play.

Cities always appeal to Southwest to introduce service or expand because the company brings low fares and a boom in traffic. If American can trade its service and fares for political support, imagine Southwest's potential clout.

It's perplexing that Dallas leaders haven't lined up behind Southwest, a local company with nationwide popularity. The company says it hasn't threatened to leave the city if the Wright Amendment limits aren't lifted, but I could see it coming to that.

Southwest has cut its Love flights by 19 percent from the peak, and its business model has shifted to longer-haul traffic. Because of Love's restrictions, it can't even bring in pilots for training or send out executives without a lot of time-wasting maneuvers.

Does it make sense to be based in a city where you can't grow, where the local politicians won't go to the mat for a beloved employer and a huge tax generator? Do you think Phoenix or Houston or Baltimore would help with the relocation costs?

It's bad enough that D/FW and Love Field have both lost traffic since the late 1990s and that the Wright Amendment was a factor in the decline. But things could get worse.

If a bill to repeal the Wright Amendment is introduced in Washington, American will tear the gloves off and reveal its own nuclear-winter strategy. Would American threaten to move a quarter of its D/FW fleet to Love Field to go head-to-head with its nemesis?

It wouldn't make economic sense, and American's finances are still shaky. But the company has always been willing to take its medicine to prove a point. In this case, the point is that D/FW gets crippled if Love Field gets freed.

So how do we get out of this? If it were only as easy as throwing a bone to Tennessee.

Mitchell Schnurman's column appears Wednesdays and Sundays. (817) 390-7821 schnurman@star-telegram.com

Link

LoneStarMik

[St-T]

Posted on Tue, Feb. 22, 2005


American uses scare tactics, Southwest says

By Trebor Banstetter and Maria Recio

Star-Telegram Staff Writers


Executives with Southwest Airlines accused rival American Airlines Monday of using "scare tactics" in the battle over the Wright Amendment.

American's threat to move a substantial number of flights from Dallas/Fort Worth Airport to Dallas Love Field, turning Love into a congested airport, is "ridiculous and unrealistic," Southwest spokesman Ed Stewart said.

"American never lets the facts get in the way of a good scare tactic," he said.

Executives of Fort Worth-based American said Friday that if Congress repeals the Wright Amendment -- which limits flights at Love Field to states that border Texas plus Kansas, Mississippi and Alabama -- the airline would be likely to move a substantial number of flights from D/FW to Love to compete with Southwest.

American's threat came as Tennessee lawmakers continue to consider whether to reintroduce a bill in Congress to repeal the Wright Amendment.

There are signs that a ferocious lobbying blitz led by Rep. Kay Granger, R-Fort Worth, and three other lawmakers who represent parts of Tarrant County -- Rep. Joe Barton, R-Ennis; Rep. Michael Burgess, R-Flower Mound; and Rep. Kenny Marchant, R-Coppell -- has neutralized an effort launched last year by Rep. Marsha Blackburn, R-Tenn., to modify the Wright Amendment.

Barton, chairman of the House Energy and Commerce Committee, said he recently had a heart-to-heart talk with Blackburn, a second-term lawmaker assigned earlier this year to his powerful panel.

His press secretary, Brooks Landraf, said Blackburn now has no plans to reintroduce a bill that would negate the Wright Amendment.

Blackburn has declined to comment this year on her bill. The bill died at the end of the last congressional term.

Southwest is campaigning for a repeal, saying that would give travelers more choices and drive down fares to and from North Texas. Supporters of the Wright Amendment say a repeal would cripple D/FW and American, which is desperately trying to shore up its finances and which operates a large hub at D/FW.

Addressing American's threat to build a big operation at Love Field, Stewart pointed out that the Love Field Master Plan -- written in 2001 -- limits growth there and would prohibit large-scale expansion by Southwest or American.

"The master plan doesn't allow that," Stewart said. "That's why it's etched in stone."

American officials, however, countered that there's no guarantee the plan would stay in place.

"If a federal law like the Wright Amendment can be changed, a local agreement like the master plan can be changed as well," airline spokesman Tim Wagner said.

The threat of a large-scale shift of flights from D/FW to Love is a major concern to D/FW officials, who fear a major loss of revenue for the airport.

It also worries many Fort Worth frequent fliers and residents of Dallas neighborhoods near Love Field, which would experience more noise and traffic.

"They're trying to create a 'sky-is-falling' effect for the people who live around Love Field," Stewart said.

Wagner suggested that the best option is for Southwest to move to D/FW.

"That's the legal way to do it, and everyone could compete on a level playing field," he said. Southwest has said D/FW doesn't fit its business model.

Southwest lobbyists say they are continuing to work the Wright Amendment issue in other states, besides Tennessee, that would like low fares from Love Field.

In Texas, a few Dallas lawmakers, like Rep. Sam Johnson, R-Plano, ardently believe the Wright Amendment is anti-competitive and would like to see the end of the 25-year-old restrictions at Love Field. But no Texas lawmaker has been willing to take on Tarrant County lawmakers.

Rep. Pete Sessions, R-Dallas, and Rep. Eddie Bernice Johnson, D-Dallas, say they're torn.

"I know competition is great," Sessions said. "But I would like a full dialogue and for us to understand what the impact of repeal will be."

Granger said she does not expect a bill to be introduced this year.

"I say that there's not an attack on the Wright Amendment," Granger said. "I talk to Marsha Blackburn on a regular basis, and what she's saying is that between Dallas and Nashville, there is a lot of activity. They have no problem with the Wright Amendment. They have a problem with access and cost."

To that end, American recently cut fares between D/FW and Nashville. And Tennessee business officials believe more cuts and increased service will be announced soon.

Burgess, the Flower Mound congressman, says an effort by an outside delegation to repeal the Wright Amendment is unlikely.

"I would fight it every step of the way," Burgess said. "I can't see someone from another state coming in and changing it. This is not their fight."

House Majority Leader Tom DeLay, R-Sugar Land, wants nothing to do with the fight.

"That's a Dallas-Fort Worth thing," he said.

[St-T]

If you are adamantly against the Wright Amendment send a quick note to your congressman and city council representative. I have included links to make it easy. The representatives that I included are on the eastern side of the metroplex. Apparently, FW reps like high fares.

Eddie Bernice Johnson: http://www.house.gov/ebjohnson/contact_ebj/index.shtml

Sam Johnson: http://www.samjohnson.house.gov/Contact/

Pete Sessions: http://sessions.house.gov/

Dallas City Council/Mayor: http://www.dallascityhall.com/dallas...y_council.html

[RobertB]

Don't forget to look a little further east. I'll be sending a note to Rep. Hensarling.

House District 5: Jeb Hensarling (R - Athens) http://www.house.gov/hensarling/contact/

House District 4: Ralph Hall (R/former D - Rockwall) http://www.house.gov/ralphhall/contact.htm

House District 1: Louie Gohmert (R - Tyler) http://www.house.gov/gohmert/

Gohmert might be an interesting wild card. It looks like he's a freshman from one of the radically redrawn districts. Even though his Deep East Texas constituency may not have a dog in the fight, they're going to be friendly to the idea of SWA as David against AA's Goliath. The only problem is that they're so far east, they're closer to Shreveport than to Love.

For a details on Texas' congressional districts, Yahoo! has an interactive map. Try not to get too depressed by the color scheme, which is predominantly red (I prefer Green, myself).

[texman]

Kay Bailey supports the Wright Amend...makes me mad.... :angryfire

[RobertB]

Kay Bailey supports the Wright Amend...makes me mad....

A politician siding with the corporation with the deepest pockets? quelle surprise!

Back to a previous post, I've got a new candidate for most LOL suggestion for what Southwest's big announcement tonight might be:

WN will begin 2X daily A380 Service to Baghdad and Kabul from DAL.

Well, at least I'll be able to visit my cousin when he heads back to sunny Iraq.

Back in reality, though, I'm leaning toward the idea that WN (that's Southwest's booking abbreviation) is going to take on the Wright Amendment head-on. Check this out from their "shot across the bow":

1979
Southwest Airlines begins interstate service to New Orleans, Louisiana. Infuriated by Southwest's entry into interstate markets, DFW and the cities of Dallas and Ft. Worth again try to block Southwest's growth (and low fares) through the courts. Losing that effort, the DFW supporters turn to an old ally, U.S. House Leader Jim Wright.

Ouch! They're taking it personally, aren't they? So with their clear contempt for Wright in mind, I think they're getting ready to do one of two things:

* Reconfigure some of their planes to get down to 56 seats, and circumvent Wright's restriction (a la Legend)
or
* Announce that they're flying from DAL (Love Field) to wherever they darn well please, and anyone who doesn't like it, find a lawyer. Or several.

According to the latest postings on the airliners.net board, the WN announcement will happen at an employee meeting in Chicago tonight, after 6pm. Any press release might or might not hit the wires in time for tomorrow's paper... it would be interesting to see if the DMN and S-T are holding some Page 1 space aside just in case. But since the announcement may be no more than rumor, there's just no way to know. But as a former AA employee (and wannabe SWA employee a few years back), I'm sure wondering what Herb's company has up its sleeve.

[St-T]

Do you really think they would just start flying long-hauls out of Love? Actually, it might be their best bet--fight it in the court system rather than legislation. AA owns FW and it's congressmen so maybe a Dallas Circuit Court would speed up the process to repeal the amendment. How fun would that be????

[gc]

Wan't there supposed to be some BIG announcement today by SW Airlines?

[St-T]

Yes, today between 6-9pm in Chicago. The rumors of this announcement range from new type of plane, assigned seating, something to do w/ the Wright Amendment, In flight entertainment, moving the corp HQ, etc.

[texman]

moving the corp HQ, etc.

I hope not....SWA doesnt back out of a fight this easily.

[St-T]

^It would be a SAD DAY in Big D if that happens... I think that is doubtful--for now. On their website they include comments like "City/County/Schools of Dallas" taxpayer... I think they want a little support from the city; the type of support FW gives AA.

[gc]

I doubt they are leaving. They are finishing (or just finished) expanding at Love Field.

[texman]

I like your avatar St-T.

[St-T]

^I've decided to support my hometown airline.

[Columbus Civil]

What was the big announcement?

[St-T]

Nada-- I think it was all bs. But, on the aviation board they are still saying that something is going to be announced--service to Mexico.

I'm still hoping for an announcement that SW will ignore the Wright Amendment and begin long hauls outta Love. =)

[RobertB]

Nada-- I think it was all bs. But, on the aviation board they are still saying that something is going to be announced--service to Mexico.

I'm still hoping for an announcement that SW will ignore the Wright Amendment and begin long hauls outta Love. =)

It still looks possible. Here's a new posting on the board:

Take this with a grain of salt, but the C-Check mechanics were told to leave their plane in the hangar this morning for Herb to use as a backdrop for a press conference. They were told by their supervisor that we were going to announce service to Mexico.

However, this is just one of many rumors I've heard, so I guess we'll see what is really going on tomorrow...

Some trivia: A "C Check" is scheduled aircraft maintenance. As I recall, it's a big one, involving several days' work, and a lot of taking stuff apart and putting it back together again. Every turn of a screw or bolt is documented per FAA regulations -- I was one of the programmers behind the software that the Alliance Airport mechanics used to record their actions. A plane that's just been through a C Check is going to be in as nearly new condition as you can get... very pretty for a press conference backdrop.

And now, an anecdote: I've been inside the fuel tank of a 767. Well, not exactly in where the fuel goes, but in the belly of the plane where the access doors are for the fuel bladders. You wiggle through a hatch on the bottom, just in front of the wings, then to perform and inspect the work, you turn yourself sideways to squeeze through a couple of vertical passages. It's pretty amazing in there, but it's not for the claustrophobic.

One test they run is a leak check. To do this, you have to put a guy into that hatch, and then seal it up. Of course, there are no lights installed in this area, so all he has is a flashlight. Then, they start filling the tanks, but they have to do it slowly, because the hatch is sealed. The crew chief who was showing me around said that one time, the guy operating the pump forgot this important detail, and turned on the fuel pump at the normal rate. The poor guy inside the tiny area freaked out from the pressure change, dropped his flashlight, and started pounding on the walls in a panic to escape. They quickly unbolted the hatch and got him out, but I doubt he wanted to repeat that particular check. (Of course, this story may be complete BS designed to remind the pumper not to turn it on full blast; YMMV)

[RobertB]

Well, it looks like the hot SWA rumor has just about run its course. The latest:

So here's the skinny on the announcement...

The story around here is that CNN came to interview Herb. The C-check boys left their plane in the hangar as a back drop for the interview...

That's it. That's the big news.

But as folks on that list have pointed out, even if it was a totally baseless rumor, it did lead to some very cool "what would it take for WN to make a 'remember-where-you-were' statement?" suggestions.

[St-T]

Discount carriers, location key to small airports' success
By Joe Milicia, Associated Press
GREEN, Ohio — The relaxed pace at Akron-Canton Airport doesn't reflect that it's one of the fastest growing airports in the country.

Still room to move: Akron-Canton has tripled its number of passengers in the last 10 years to nearly 1.4 million last year.
By Tony Dejak, AP

Akron-Canton and other small to midsize airports are taking business from larger hubs with a formula for success that starts with a discount airline. Add in proximity to a big metro area, light traffic and short lines and the passengers seem to follow.

"I love this airport," said Elaine Smolka of suburban Chicago after landing at Akron-Canton on Wednesday. "I came from O'Hare and this airport is such a pleasure compared with what you have to go through there."

Smolka's not alone in her admiration for Akron-Canton, which has tripled its number of passengers in the last 10 years to nearly 1.4 million last year. Except for 2001, Akron-Canton's passenger traffic has increased every year since AirTran Airways began flying from there in 1996.

"We couldn't do it without them," airport director Fred Krum said.

Low-fare airliners have been the key to success for smaller airports, said Richard V. Butler, professor of economics at Trinity University in San Antonio. Passengers are attracted to the low fares and rival carriers then are drawn in to compete for the traffic that's been generated.

It's the same story at Bishop International Airport in Flint, Mich., which topped 1 million passengers last year.

"They called us the big white elephant in the field," airport spokeswoman Pat Corfman said. "Without AirTran, we would still be the big white elephant in the field."

AirTran spokeswoman Judy Graham-Weaver said the company chose Akron-Canton and Flint because they were in underserved markets with high fares.

"Akron-Canton and Flint are both airports that have been very successful for us," she said.

Both are blessed with a great location. Akron-Canton is just 50 miles from Cleveland. Bishop is 70 miles from Detroit and the closest airport to booming Oakland County.

"These are airports that have repositioned themselves as secondary access points to a big area," said Mike Boyd, president of The Boyd Group, an Evergreen, Colo.-based aviation consulting firm.

Smaller airports are compatible with discount airlines because they can get passengers in and out faster, limiting downtime on the runway, which is crucial to the airlines' low-cost model, said Hugo Burge, president of Cheapflights.com.

"There's an unrecognized battle going on between smaller airports and more traditional airports," Burge said.

Manchester Airport in New Hampshire follows the formula, drawing from Logan International Airport in Boston 50 miles away.

Congestion at and around Logan and Manchester's addition of Southwest Airlines have helped it grow from 1 million passengers in 1997 to four million last year.

"We truly have become Boston's other airport," said assistant airport director J. Brian O'Neill.

But the formula can't be repeated everywhere. Many small airports are struggling and aren't located near a population base that's large enough to attract a discount carrier, Boyd said.

For the ones that are, the sky's the limit. Krum said that Akron-Canton could eventually grow nearly fourfold to 5 million passengers a year.


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[RobertB]

Both are blessed with a great location. Akron-Canton is just 50 miles from Cleveland. Bishop is 70 miles from Detroit and the closest airport to booming Oakland County.

"These are airports that have repositioned themselves as secondary access points to a big area," said Mike Boyd, president of The Boyd Group, an Evergreen, Colo.-based aviation consulting firm.

Smaller airports are compatible with discount airlines because they can get passengers in and out faster, limiting downtime on the runway, which is crucial to the airlines' low-cost model, said Hugo Burge, president of Cheapflights.com.

"There's an unrecognized battle going on between smaller airports and more traditional airports," Burge said.

So, should we keep an eye on Collin County Regional - McKinney? They don't have any passenger gates, but they do have a 7,000-foot runway, which according to this site doesn't impose any restrictions. And it's a lot closer than 70 miles to "booming" Collin and Denton Counties.

Wouldn't that have made a great surprise announcement -- WN moving its headquarters from DAL to TKI (McKinney), with direct flights from Collin County to Chicago Midway!