canyonblue
Everyone loves Southwest
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American expects to lose money at Love Field
DALLAS (AP) — American Airlines expects to lose money on its newest operation at Dallas Love Field but will plunge ahead anyway out of fear of losing customers to rival Southwest Airlines.
American, the nation's biggest airline, also won't be upset if its arrival helps undermine the convenience of Love Field, company officials suggested Monday.
After an absence of more than four years, American and sister airline American Eagle will return to Love Field on March 2, offering 16 daily flights to St. Louis, Kansas City, Austin and San Antonio. American is responding to Southwest, which won permission from Congress late last year to fly from Love Field to St. Louis and Kansas City. C. David Cush, American's general sales manager, made it clear Monday that American is a reluctant traveler at Love Field.
"We will have a difficult time making a profit here," Cush said, adding that the airline is "not necessarily here to make a profit." Instead, Cush said, American is shifting some flights to Love Field because it must. Anything less, he suggested, would amount to American surrendering passengers to Southwest's new service — and losing even more money. "We are going after Southwest's customers," he said.
So American hauled in jetbridges from New York, laid down airport-blue carpeting and installed gray plastic seats at three new gates. A temporary ticket counter was set up, and on the ramp to the runway, new concrete was still drying. It is offering up to 60,000 frequent-flier miles to people who buy Love Field tickets. American is making these moves even as it argues to Congress that expanding Love Field is a bad idea, adding noise and congestion to surrounding neighborhoods. And if Congress sides with Southwest and removes all limits on Love Field flights, American is prepared to open even more gates there.
By next month, there will be 19 gates in use, including 14 by Southwest and two by Continental Airlines. The airport's master plan calls for 32. American suggests that the number could be nearly doubled. That, Cush said, would tax Love Field's facilities and make it a less convenient place to catch quick flights to Houston, San Antonio and Austin. Convenience is one of Love Field's main advantages over Dallas-Fort Worth International Airport, only 12 miles away, where American is the dominant airline.
Ed Stewart, a spokesman for Dallas-based Southwest, said Love Field, which recently opened new parking garages, can handle the traffic generated by 32 gates. Stewart disputed American's contention that the 32-gate limit would be invalid if Congress repeals the 1979 law limiting long flights at Love Field. That law, known as the Wright Amendment, was designed to boost then-new DFW Airport. Southwest says the law is anti-consumer. American's Cush said Southwest is trying to protect a near-monopoly at Love Field, and use it to attack American's DFW operation. Southwest is the only consistently profitable U.S. airline; AMR has lost more than $8 billion since 2000.
"They have a history of avoiding competition. That's what's going on here," Cush said of Southwest.
"That's the most ridiculous thing I've ever heard," Stewart shot back. "We compete coast to coast with every major carrier out there."
DALLAS (AP) — American Airlines expects to lose money on its newest operation at Dallas Love Field but will plunge ahead anyway out of fear of losing customers to rival Southwest Airlines.
American, the nation's biggest airline, also won't be upset if its arrival helps undermine the convenience of Love Field, company officials suggested Monday.
After an absence of more than four years, American and sister airline American Eagle will return to Love Field on March 2, offering 16 daily flights to St. Louis, Kansas City, Austin and San Antonio. American is responding to Southwest, which won permission from Congress late last year to fly from Love Field to St. Louis and Kansas City. C. David Cush, American's general sales manager, made it clear Monday that American is a reluctant traveler at Love Field.
"We will have a difficult time making a profit here," Cush said, adding that the airline is "not necessarily here to make a profit." Instead, Cush said, American is shifting some flights to Love Field because it must. Anything less, he suggested, would amount to American surrendering passengers to Southwest's new service — and losing even more money. "We are going after Southwest's customers," he said.
So American hauled in jetbridges from New York, laid down airport-blue carpeting and installed gray plastic seats at three new gates. A temporary ticket counter was set up, and on the ramp to the runway, new concrete was still drying. It is offering up to 60,000 frequent-flier miles to people who buy Love Field tickets. American is making these moves even as it argues to Congress that expanding Love Field is a bad idea, adding noise and congestion to surrounding neighborhoods. And if Congress sides with Southwest and removes all limits on Love Field flights, American is prepared to open even more gates there.
By next month, there will be 19 gates in use, including 14 by Southwest and two by Continental Airlines. The airport's master plan calls for 32. American suggests that the number could be nearly doubled. That, Cush said, would tax Love Field's facilities and make it a less convenient place to catch quick flights to Houston, San Antonio and Austin. Convenience is one of Love Field's main advantages over Dallas-Fort Worth International Airport, only 12 miles away, where American is the dominant airline.
Ed Stewart, a spokesman for Dallas-based Southwest, said Love Field, which recently opened new parking garages, can handle the traffic generated by 32 gates. Stewart disputed American's contention that the 32-gate limit would be invalid if Congress repeals the 1979 law limiting long flights at Love Field. That law, known as the Wright Amendment, was designed to boost then-new DFW Airport. Southwest says the law is anti-consumer. American's Cush said Southwest is trying to protect a near-monopoly at Love Field, and use it to attack American's DFW operation. Southwest is the only consistently profitable U.S. airline; AMR has lost more than $8 billion since 2000.
"They have a history of avoiding competition. That's what's going on here," Cush said of Southwest.
"That's the most ridiculous thing I've ever heard," Stewart shot back. "We compete coast to coast with every major carrier out there."
