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Mr. LUV goes to Washington

  • Thread starter Thread starter lowecur
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lowecur

Well-known member
Joined
Sep 14, 2003
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Gary Kelly is sending the ol warhorse himself to Washington to lobby for the repeal of the Right Amendment. Sorry Gary, ain't gonna happen for a few years, unless of course you want to cap gate space at DAL.:) Must be MDW ain't going so good, although I now expect LUV to get a few token gates. But that's not gonna be enough to make MDW it's #1 priority in growth for 2005.

Southwest Airlines draws fight plan


[size=+1]Love Field airline is lining up supporters; American, D/FW have backers, too
[/size]

[size=-1]10:55 PM CST on Friday, December 3, 2004[/size]

[size=-1]By VIKAS BAJAJ / The Dallas Morning News[/size]

Southwest Airlines Co. doesn't plan to fire the first shot and then not fight the battle.

In an interview Friday, chief executive Gary Kelly ratcheted up the company's opposition to the law that restricts flights from Dallas Love Field to Texas and nearby states.

He said the discounter would mount a "grass-roots campaign" to repeal the 1979 Wright amendment and take its case to Washington with a lobbying team that includes chairman Herb Kelleher.

"We brought this up, and the response is favorable, and therefore we are working it, and we are working it hard," Mr. Kelly said. "For 25 years, there has been no political support to change the Wright amendment ... we sensed it would be different now."

It was the first time Southwest has pledged to actively fight the law since Mr. Kelly declared on Nov. 12 that the flight restrictions were "anticompetitive," changing the airline's long-held neutral position. As recently as Thursday, the company was saying it didn't have a plan to actively lobby against the law.

Dallas/Fort Worth International Airport and American Airlines Inc. said Southwest's latest comments were regrettable.

"It's very, very unfortunate that Southwest has chosen this route as opposed to a route that would unite the community and provide all the same services that they pride themselves on [at D/FW] without the battle that looms ahead," said Kevin Cox, D/FW's chief operating officer.

Mr. Cox said Southwest should take up the gates being ceded by Delta Air Lines Inc. as it closes its D/FW hub.

By choosing to fight over the Wright amendment, he said, Southwest hurts D/FW's chances of getting another low-fare tenant as it finishes its new international terminal and takes on $2.7 billion in new debt.

Defending the law, American said the cities of Dallas and Fort Worth built D/FW – and airlines moved there – with the understanding that Love Field would not be a competitive threat. "We have made decisions based on the comments of all the parties, including Southwest," said Dan Garton, American's executive vice president of marketing. "And we are sort of taken aback."

Several prominent local lawmakers, including U.S. Sen. Kay Bailey Hutchison and Rep. Joe Barton, R-Ennis, have pledged to fight for the Love Field restrictions.

Allies in mind, Mr. Kelly conceded that Southwest faces a struggle but said it was buoyed by conversations with key out-of-state lawmakers.

"All we can do is point out the merits of low fares and hope that the lawmakers will listen to the people," he said.

Mr. Kelly mapped out a lobbying push on several fronts. He said the airline would:

• Launch a Web site to mobilize consumers.

• Commission a study highlighting the economic benefits from a freer Love Field. D/FW released its own study this week pegging the economic damage of Delta's departure at $782 million.

• Reach out to officials at other airports that it serves and that could get direct flights from Love Field if the restrictions were lifted.

They could include airports in Southern California, Phoenix, Las Vegas, Florida, Baltimore, Philadelphia, St. Louis, Chicago and Kansas City, Mo., Mr. Kelly said.

"We have a plan sequence, if you will, of folks that we believe it's appropriate to talk to," he said.

Likely lobbyists

Southwest doesn't anticipate incurring "extraordinary expenses" for lobbying, he said.

Federal records indicate the company has largely relied on its own executives for lobbying.

It has also had a longstanding relationship with Loeffler Tuggey Pauerstein Rosenthal LLP, a law firm based in San Antonio. The firm's founder, former Republican Rep. Tom Loeffler, committed to raising $200,000 for President Bush's re-election.

American declined to talk in detail about its lobbying, but in the past it has hired influential lobbying firms and former lawmakers such as former Texas Lt. Gov. Ben Barnes. Mr. Cox said the Wright law is the airport's "highest priority" legislative issue.
 
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I do believe it's called the "Wright Ammendment". Different parties will argue the pro or con side as to whether the "Wright Ammendment" is the "right" ammendment.
 
I am growing tired of this lame debate....

Go get'em Herb!

How about Darwinian economics - survival of the fittest? If DFW can't compete with normal service from Love Field (like MDW competes with ORD), then maybe it should wither and die (a bit dramatic of course)... Give me a break - I have never understood this argument. Sure, DFW has to pay off its huge bonds... Yeah, well then compete better than Love Field and offer some attractive gate space at a reasonable price... How can DFW make this argument with MDW competing well against ORD? I thought the US was anti-protectionism? Doesn't sound like a capitalist market to me where competition is encouraged and the consumer wins in the end... Sounds like DFW people are afraid of just how well SWA will do at Love Field if it gets its way.
 
Lowecur,

Good of you to let SWA have a couple of "token" gates at MDW! SWA has several, if not many, contingency plans for future growth based on a number of variables, and how those variables play out. MDW may be our #1 priority, then again, it may not be. If UAir reduces flight schedules on the east coast, you will see that become the #1 priority. I'm sorry that SWA isn't interested in your ERJ. We'll just have to muddle through somehow.

Cheers
 
Heavy Set said:
How about Darwinian economics - survival of the fittest? If DFW can't compete with normal service from Love Field (like MDW competes with ORD), then maybe it should wither and die (a bit dramatic of course)... Give me a break - I have never understood this argument. Sure, DFW has to pay off its huge bonds... Yeah, well then compete better than Love Field and offer some attractive gate space at a reasonable price... How can DFW make this argument with MDW competing well against ORD? I thought the US was anti-protectionism? Doesn't sound like a capitalist market to me where competition is encouraged and the consumer wins in the end... Sounds like DFW people are afraid of just how well SWA will do at Love Field if it gets its way.
I have always thought that Denver could have had a very similar fight on their hands when they built the astronomically expensive DIA. I would have enjoyed being a fly on the wall for all of the political arm-twisting that went along with the transition from Stapleton to DIA. I think the lesson of DFW/DAL was well learned, though, and all that remains of the "in town" airport is a control tower overlooking a sea of new homes and stores.....and SWA is nowhere to be found!

Interesting discussion. In the end, LUV will eventually win this battle, but it will be expensive. For now, the fight serves their current motive well--keep other LCCs out of DFW while they fight the real battle in PHL.
 

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