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LUV to fight Wright Amendment

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BIGGOAT

Well-known member
Joined
Oct 1, 2002
Posts
159
LUV filed today to challenge the Wright Amedment that imposes restrictions on non-stop flights departing DAL on a/c with 50+ seats. Any thoughts?


Regards
 
I wish them luck. Time for a true free market. I imagine Jim Wrights family is set for many generations, considering the amount of goodies shoved up his accepting rump by the Fat Cat airline. Just think, LUV could fly nonstop to both coast from LUV and DFW soon.
 
They have tried to fight it before and lost. Maybe this time they will have better luck.
 
Question

BigGoat,

I've read recently about the TN congressional delegation working to get another amendment allowing flights from BNA to DAL but haven't read anything about SWA filing papers to fight the Amendment. Just curious if you have the source for that info available or wish to share it? Thanks in advance for the info.
 
This is all I've seen on it...

Southwest Calls Dallas Flight Rules Anticompetitive

Friday November 12, 7:50 PM EST


DALLAS -- After years of being neutral on a law that restricts flights from its home at Dallas' Love Field Airport, Southwest Airlines Co. (LUV) is calling the rule "anticompetitive" and "outdated."

The federal law, known as the Wright Amendment, was designed in 1979 to protect the new Dallas-Fort Worth International Airport, which was built in a more rural area than Love Field's near-downtown location.

Southwest didn't want to move to DFW and has never had service at that airport, which is now a dominant hub of AMR Corp.'s (AMR) American Airlines. That dominance over time has drawn criticism from consumer advocates who have argued the Wright Amendment merely protects the control.

Now, Southwest is taking a stronger stance on the matter.

"We're not passionately neutral anymore" on the Wright Amendment, Southwest Chief Executive Gary Kelly said at a North Dallas Chamber of Commerce aviation breakfast. "It is anticompetitive."

He stopped short of saying Southwest will actively lobby to further ease the law's restrictions, which ban interstate service from Love Field to all but seven nearby states. "I won't speculate, but we wouldn't stand in the way" of other efforts to ease or overturn it, added Mr. Kelly.

A current effort involves a bill proposed in the House of Representatives that would allow Southwest to serve Tennessee from Love Field. The bill is supported by Tennessee House members. Mr. Kelly said Southwest hasn't been involved in that effort.

Specifically, the ban on certain flights from Love Field applies to jets with 56 seats or more, which means all of Southwest's planes are restricted. The other major airline that provides service from Southwest-dominated Love Field is Continental Airlines Inc. (CAL), and it does so through its regional-jet service to Houston.

Southwest's move toward opposition of the Wright Amendment comes amid unprecedented change in the airline industry.

A newer group of young discount carriers has ushered in more lower fares and additional seats, posing greater competition for both Southwest and larger, traditional airlines such as American and Delta Air Lines Inc. (DAL). Jet-fuel prices are at record highs, driving up airline expenses, and a glut of seat capacity has hurt revenue industrywide. All airlines, including Southwest, are trying to cut costs to cope with the financial strain.

In addition, Southwest has acknowledged it can't be complacent in the face of increasing competition or potential opportunity. One major shift is occurring not far from Southwest's back yard. At DFW, Delta is abandoning its money-losing hub, cutting its 250-plus daily flights by more than 200. The move will increase American's dominance at DFW, but industry observers are expecting there could be new entrants to the airport, including more discount carriers.

Southwest won't be one of them, Mr. Kelly said adamantly. Despite some of the appeal he saw after reviewing the possibility -- including the chance to add long-haul flights from Dallas -- he said serving DFW wouldn't fit with Southwest's business model. "If there's growth, it will be at Love Field."

Still, Mr. Kelly said Delta's exit is proof DFW doesn't need protecting anymore. He added it is illogical to argue that the decades-old restrictions are needed because Dallas has two airports. That, said Mr. Kelly, is "inconsistent" with what is allowed in other cities with two airports, including Chicago and Houston.

American Airlines disagrees. In a statement, the Fort Worth, Texas-based carrier said the Wright Amendment is just as relevant today as it was when it first passed and helps preserve DFW's position as the principal aviation gateway for north Texas. "Repealing the Wright Amendment would undermine the success of DFW, whose contribution to the region's growth and prosperity continues to be substantial," American said.

The airline added it is opposed to the "Tennessee Amendment" to the Wright Amendment.

In a statement responding to Mr. Kelly's insistence that Southwest won't be starting service at DFW, the airport said it remains committed to increasing low-fare carrier business at the airport and has been talking to "a number" of low-fare carriers to try to replace the service Delta has said it will discontinue by February.

Airport officials also strongly supported the Wright Amendment, saying it has provided "harmony" for all parties over the years. "This latest assault on the Wright Amendment could not be more ill-timed to have a detrimental impact upon DFW," said the airport's chief operating officer, Kevin Cox.

He added, "Obviously, any changes to the Wright Amendment, which could siphon traffic from DFW Airport to Love Field, would have a detrimental effect upon DFW and its carriers at a time when they are least equipped to handle such a major change." Mr. Cox also said DFW must remain vigilant to ensure there are no additional attempts to repeal, amend or alter the Wright Amendment.

-By Melanie Trottman; The Wall Street Journal; 214-951-7122


Dow Jones Newswires
11-12-04 1950ET
 
you know, this will work both ways. If the Wright Amendment is done away with, Southwest will have more access to destinations from Love , but it will also mean that other airlines will be free to fly there too. I bet if teh WA goes down, every airline in the country starts to add flights to Love.
 
I doubt it, not enough gates and there is a 500 lb gorrilla who lives there.
 

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