North Dallas Chamber: Wright is Wrong

[ivauir]

North Dallas Chamber: Wright is Wrong Posted on Fri, 05/20/05 00:00 After meeting with parties on both sides of the controversial Wright Amendment, which restricts flights out of Dallas Love Field (DAL), the North Dallas Chamber of Commerce has decided that Wright is wrong for the people of North Texas.

On Thursday, the chamber announced its support for a gradual two-to-five-year phase-out of the amendment, adding that the group also will seek immediate lifting of "through ticketing" restrictions, which force passengers traveling to distant states to purchase two separate tickets and to check their luggage twice. "Dallas taxpayers own 100 percent of Love Field and (have) a 70 percent stake in DFW International Airport and are entitled to have these aviation assets managed locally to encourage the competition that will result in maximum benefit to the taxpayers, the region, and the traveling public," the chamber said in its three-page statement. "Therefore, the North Dallas Chamber of Commerce Board of Directors supports phased-in repeal of the Wright Amendment." The chamber said the city of Dallas and the state's congressional delegation should "seek immediate removal of the marketing, through-ticketing, and checked-baggage restrictions as currently provided in the Wright Amendment, and affirm the Dallas City Council's unwavering support of the (Love Field) Master Plan, specifically as it pertains to 32 gates maximum. The Master Plan should continue to serve as Love Field's management tool in the future."

 

[Nolife]

Bravo

And I still think Sen. Wright should be flogged for the smack in the face of free enterprise he created... as well as some old school airline CEO's.

Hard Landing details the Wright Amendment and really shows how Herb and LUV deserve their sucess. DAL- MCO/FLL coming soon?

 

[flyinglow]

If they get to keep the master plan at 32 gates, does WN have to give up some gates?

 

[chase]

Expanded version...in this morning newspaper

This stance is important because this begins to provide the politicians cover for coming out & opposing the WA under the veil of what "other experts" are saying. The reference to TI & implication that other large companies in N. Texas are in support of this group & their findings is significant I believe. Yes there is an ex-SWA person on this panel but many other business leaders also & I'm sure there are most likely some folks with AA links too but the bottom line is they point out all the flaws that the WA has.

A recent editorial also discussed the stance DFW has taken is that "we're the engine behind N. Texas's growth"....the author makes it clear, BUSINESSES ARE THE ENGINE, not the airports of the regions. The title of the article was "Tail wagging the dog" mentality...the author reminds supporters of airlines are there to cater to the public &businesses & what businesses want are low fares, open competition & flexibility in pricing....if airlines aren't doing that at airports then others will fill the void. While the article makes it sound like the senior senator from Texas is still opposed to changes in the WA, I don't believe that is completely accurate...she has changed her position from outright support of the WA to "lets see what is out there in the way of facts, pros & cons".

I will say there is much going on behind the scenes to make the WA occur...Herb is working overtime, employees are engaged with customers/friends, letter writing campaigns..it is encouraging to see all of the efforts & to feel confident one day before too long flights from DAL-LAX, LAX, LGA & other places will be able to occur....low fares for all cities.

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Group opposes Wright


[size=+1]North Dallas Chamber says lifting law would boost city's economy
[/size]

[size=-1]10:50 PM CDT on Thursday, May 19, 2005 [/size]

[size=-1]By ERIC TORBENSON / The Dallas Morning News [/size]

A powerful Dallas business group said Thursday that the Wright amendment is bad for the city's economy and its repeal would provide a billion-dollar-a-year economic boost.

The law is choking Dallas' growth by keeping airfares high and hurting the city's convention business and tourism, according to a task force from the North Dallas Chamber of Commerce.

File Photo
Flights from Dallas Love Field are limited to short-haul routes under the Wright amendment.

The group challenged the city to "take back its airport" by lobbying to gradually lift the restrictions at Dallas Love Field that limit commercial flights to nearby states.

"I don't know of any other major city with two airports that treats one like a crown jewel and the other like a red-headed stepchild," said Sam Coats, a member of the chamber's task force.

"Dallas needs to utilize its asset," said Mr. Coats, a former executive at defunct Braniff Airways as well as at Southwest Airlines Co., by far the dominant carrier at Love Field.

Southwest, which wants the federal law repealed so it can fly around the country from Love Field, praised the chamber's stance.

"The North Dallas Chamber's opinion reinforces the sentiment of the flying public that North Texas deserves access to lower fares through repeal of the Wright amendment," said Southwest spokeswoman Ginger Hardage.

But American Airlines Inc., which along with Dallas/Fort Worth International Airport has strongly opposed any changes to the law, called the chamber's thinking shortsighted.

Also Online North Dallas Chamber statement



"Southwest wants Dallas to cut off its arm," said American spokesman Tim Wagner. "The North Dallas Chamber is suggesting they start one finger at a time."

The chamber, which represents such major local employers as Texas Instruments Inc., took six months interviewing airlines, airports and other parties affected by the Wright law.

It concluded that the law limits Dallas' appeal as a place to do business. Among the task force's recommendations:

•Gradual repeal of Wright restrictions over two to five years. Southwest would add service, average fares for the region would drop and the local economy would benefit.

•Immediate lifting of rules that require passengers traveling beyond Wright states to purchase two tickets. Often, this offsets any fare advantage.

•Keeping the Love Field master plan to govern growth there. The plan cannot be changed simply because there's no Wright amendment, said Steve Joiner, who headed the chamber task force.

For now, chamber officials said, they're more concerned about Love Field shrinking.

Love Field has lost two of its four airlines since the master plan came into effect in 2001. Southwest has cut its daily flights to 117 from about 145.

Southwest chief executive Gary Kelly said this week that more cuts could come if the Wright law stays in place. And credit agencies have cut Love Field's bond ratings as passenger traffic has dropped.



Countering D/FW


The chamber's statement Thursday counters D/FW's primary argument that tinkering with the Wright amendment would harm the region's economy.

D/FW executives regularly refer to their airport as the region's main economic engine.

"D/FW has broad business community support across North Texas among those who understand the ramifications of a weakened economic engine," said Jeff Fegan, the airport's chief executive.

"We know people are beginning to understand that is not about low fares, but about a single airline trying to dictate public policy and keep new airline competition out of North Texas," he said.

D/FW released a study this month showing it could lose up to 35 percent of its passenger traffic and 204 daily flights if Love Field were opened up to long-haul flights.

The chamber's statement acknowledges the importance of D/FW, saying it would remain the region's dominant airport and the sole facility for international flights. The plan also seeks to soften any financial blow to D/FW by staggering the repeal over several years.

Repeal of the Wright amendment would not threaten D/FW's ability to pay back several billion dollars in revenue bonds used to finance its new international terminal and Skylink train system, but it would raise costs for its airline tenants and dissuade other carriers from using D/FW, airport officials said earlier this month.



Officials undecided


The chamber's findings didn't seem overly persuasive to Sen. Kay Bailey Hutchison, R-Texas, who had called for more study on the Wright issue.

"Sen. Hutchison appreciates the chamber's hard work and will carefully study their findings," her spokesman said. "However, in the chamber's own report, they state that the financial implications of repealing the amendment may have significant near-term implications. That is exactly what Sen. Hutchison wants to avoid."

Phillip Jones, chief executive of the Dallas Convention & Visitors Bureau, said airfare costs are something his sales team monitors, but "it's not the main reason keeping business away."



Under review


Dallas Mayor Laura Miller was reviewing the chamber's conclusions, her spokesman said.

The Fort Worth Chamber of Commerce has long backed the Wright amendment and passed a resolution supporting keeping the law in the place. A call to the Greater Dallas Chamber wasn't returned Thursday.

The North Dallas chamber wants to avoid lawsuits, hoping that leaders will broker a long-term plan to use both airports.

"We don't need a donnybrook in the metroplex at this time," Mr. Coats said. "We need level heads right now."

Staff writers Robert Dodge in Washington and Suzanne Marta in Dallas contributed to this report

 

[chase]

What the Master Plan permits

Q&A from the Love Master Plan Website
http://www.dallaslovefieldmasterplan.com/Docs/MP%20Q&A.pdf
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There are currently 29 gates at Love Field, 22 of which are available for use. At one time more than twice as many gates were in operation at the airport. Because of the development of DFW International Airport and other factors, however, the maximum number of gates that can be reasonably accommodated now is 32 – a net increase of three gates beyond the 29 that are currently available. Pre-existing terminal space remaining from Love Field’s busiest years is believed to be capable of supporting as many as 55 gates.

This number of gates (32) would be the highest possible configuration in accordance with FAA capacity planning guidelines, if demand should ever require it.
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Q: What changes will be required at Love Field under this plan?

A:​

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The Love Field terminal facilities were designed for a different era, and the old terminal configuration is no longer efficient. This plan gives the city an opportunity to update the airport so that it is more efficient and customer friendly. The recommendations will provide better vehicle and passenger flow at the terminal and the aviation community more predictability for flight operations.

Changes will be substantial and will involve removal of unnecessary and outdated terminal and other airport facilities. When demand requires building out the airport to the full 32 gates, several capital improvements must be made.

Already, an additional parking garage is planned for construction in 2002. The current parking facilities are inadequate to meet current demand and a new garage is necessary now.

Other improvements amounting to more than $100 million could eventually be made and include curb frontage and roadway improvements to help ease passenger congestion. In addition, as demand warrants, major alteration and renovations of terminal space will be undertaken to make Love Field one of the most modern and efficient inner-city airports in the United States. Love Field Capital improvements have, historically, been financed through airport revenues, federal grants and tenant investments in leasehold facilities.
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Q: Why did MPAC agree to this consensus?

A:​

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The plan removes uncertainty about the future of Love Field and stabilizes affected neighborhoods. The recommended plan is efficient, cost-effective, competitive, balanced and consumer friendly.

When implemented, the plan will make Love Field:
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efficient by improving terminal and ground-traffic operations;
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cost-effective by making better use of facilities and by keeping flight delays to a minimum;
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competitive by ensuring maximum possible use of Love Field;
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balanced by ensuring that the concerns and needs of affected residents and businesses, not just those of aviation users, are accommodated;
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and consumer friendly by planning for Love Field to be one of the most modern and accessible innercity airports in America.
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Q: Couldn’t more flight operations be accommodated?

A:​

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The aviation consultants used industry-accepted methods to forecast future demand and worked within the physical constraints of Love Field, including the fact that it has only two runways equipped with Instrument Landing Systems. The planning model shows that 32 gates and 334,000 aircraft operations is the highest use of Love Field that still maintain acceptable standards of dependable airline service.

Efficient air-traffic flow is equally important to the high-value corporate and general aviation users who make up about half of Love Field’s operations. This plan avoids potential gridlock at the airport in the years to come.
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Q: Beyond passenger demand and the concern for flight delays, what other factors were considered?
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A: Environmental issues are of paramount concern to the committee. Issues include noise, air quality and traffic in the area. Under the plan, fewer people will be affected by noise; air quality will be closely monitored and is not expected to diminish; and traffic impact will be slight.The plan calls for the existing Noise Abatement Advisory Committee, which meets monthly, to becomethe Love Field Environmental Impact Advisory Committee to address noise, air quality and traffic impacts. This committee will include a diverse group of aviation, business and residential representatives.
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Q: How can fewer people be affected by loud aircraft noise if there will be more flights?

A:​

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Largely because of advances in aviation technology and airport procedures, the number of people who fall within the high-noise area around the airport (those who would be exposed to average noise levels of 65 decibels or greater) actually will fall dramatically under this plan. That population is projected to drop from nearly 27,000 people in 1998 to fewer than 23,000 in 2010. New, quieter aircraft will replace older models and both mandatory and voluntary noise abatement procedures will help.
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Q: How can residents have confidence in this commitment to noise reduction?

A:​

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A state-of-the-art noise monitoring system has been installed around the airport and officials and the public will be able to closely monitor noise and the specific aviation activity causing noise. The MPAC plan encourages a significantly more pro-active noise control program with special focus on the utilization of data generated from the noise monitoring system to identify problem aircraft and remedy the situationas well as other more pro-active policies, procedures and practices to reduce noise.
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Q: Will more activity at Love Field contribute to the Metroplex’s air quality problem?

A:​

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Love Field and its users are committed to managing air emissions and have a plan to reduce the impact of air and ground equipment operations on air quality. In fact, with the proposed expansion to 32 gates, it is anticipated that pollutants will drop or remain the same as in 2000. Emissions related to Love Field amount to less than 1 percent of the Dallas County total.*

The amount of nitrogen oxides is expected to remain the same at 1.73 tons per day compared to the more than 248 tons per day countywide. Hydrocarbons are projected to drop from 0.42 to 0.37 tons per day, an insignificant amount compared to the 177 tons per day in Dallas County.

The MPAC recommends that an ongoing study be undertaken to provide objective assessment of air quality issues.
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* County data is from 1996.
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Q: What changes are expected in ground traffic?

A:​

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A small increase in traffic on streets near the airport is expected. Aviation officials are working with city traffic engineers to help mitigate this impact. Plans are also being considered to extend mass transit to the airport.

The MPAC also recommends that a comprehensive plan of action be developed to prevent and mitigate the impact of airport-generated automobile traffic in affected neighborhoods. This plan would divert traffic from residential streets, protect neighborhoods from encroachment by tollroads and other ground transportation projects, and promote an integrated regional transportation plan.
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Q: What is the economic impact of the MPAC recommendation?

A:​

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The potential increase in flights is estimated to generate an additional $1 billion in economic impact to a total of $4.4 billion annually, if demand requires full implementation of the plan. It is important to note that residential property values for homes that fall within the average 55 decibel noise contour total $3.9 billion and generate annual property tax revenue of about $100 million.
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[chase]

Flyingglow,

This document shows what gates SWA has under lease at Love & when those leases expire. There is no requirement for SWA to give up gates that I can tell from the Master Plan. There are gates available to AA (they currently have leases on 3 gates there I believe) & other carriers among the remaining gates. There are actually more than 32 gates at Love (as the information shows).

http://www.dallaslovefieldmasterplan.com/Docs/Chap-1-Inventory/Chapter%201%20Inventory.pdf page 12
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Prior to the opening of Dallas Fort Worth International Airport, the main terminal building at Love Field contained 55 working gates. There are various lease restrictions in place in the main terminal building however, in addition to the 55 gates there are six privately owned gates on the Lemmon Avenue side of the airport, equating to 61 total gates. The following description provides an overview of the total number of gates in scheduled use and the number of additional gates and the conditions under which terminal expansion or major airfield modifications could be planned in the future.

Gates

• West Concourse (WCC) Southwest Airlines (SWA) lease expires 12/16/06 14 gates

• East Concourse (ECC)CO/AA (CO lease expires 6/30/04) 2 gates

• Love Field Terminal Gates Currently in Use 16 gates

• Lemmon Avenue Terminal Gates 6 (these gates are still there but not being used, these were the old Legend gates, chase)

• TotalAirport Gates Currently in Use 22

Love Field Terminal Gates Available For Use

West Concourse (WCC) – There are no additional gates available for use on the West Concourse. A previous 15th gate has been replaced by public necessity and convenience spaces.

North Concourse (NCC) - There are 10 available NCC gates, 2 are ground level loading and 6 are used for SWA office and training spaces. In addition, 10 other NCC gates are obstructed by SWA ramp/cabin services facilities. SWA leases the NCC with first-right-of-refusal to operate gates in scheduled service.

Their lease expires 12/16/06.

East Concourse (ECC ) - There are 15 available gates, 4 are at a ground level loading satellite building connected to the ECC. In addition to the 15 available gates, 4 gates originally operated on the interior ECC cul de sac are obstructed by Gulfstream Aviation facilities. The American Airlines lease of the ECC for office space expires 9/30/23. American has requested permission to activate 3 gates for scheduled airline service. (I believe AA still has this lease & used it during the Legend battle but no longer flies from there but does have the lease I believe, chase)

Total Current Use/Available For Use Gates

__Love Field Terminal 41

__Lemon Avenue Terminal 6

__TotalAirport 47

Total Current Use, Available For Use, and Obstructed

__Love Field Terminal 55

__Lemmon Avenue Terminal 6

__TotalAirport 61
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The plan refers to 32 "approved gates" at Love. 14 currently exist in the West Concourse with SWA at this time. East concourse with 2 gates there by COEX. What constitutes the other 16 gates is hard to say...any combination of Lemmon Ave, other concourses???? American lays claim to 3 gates...can they lay claim to more? Maybe through the courts. SWA has first right of refusal to 20 other gates in the North Concourse that are not being used as gates...how many of those could come to SWA? Hard to say.

Lots of discussions to occur no doubt.

 

[flyinglow]

Wouldn't it be a relevent argument that LUV's leases are under the Wright amendment that is why nobaody else wanted the space. Lifting the Wright amendment changes the ball game.

 

[ivauir]

Wouldn't it be a relevent argument that LUV's leases are under the Wright amendment that is why nobaody else wanted the space. Lifting the Wright amendment changes the ball game.

I'm sure GK would be willing ro renegotiate the leases if that were truly the only stumbling block.


If the Wrong amendment goes away I'm sure our costs in DAL will go up, in fact the whole dynamic of that airport will change. Frankly,I expect a lot of competition in that event. I think that's really the point: DFW/AA have maintained a strangle hold on the Dallas market. It is a realationship that is bad for everybody except AA. It is time for the consumer to be able to shose which airport to use.

 

[chase]

flyinglow,

I've looked at numerous portions of the Master Plan & while it may say it explicitly in the document at some point "this master plan is assuming the WA remains intake", to the best of my reading it doesn't say that anywhere. Can the conclusion be drawn the authors were working under that assumption even if they didn't say it? That's why there are lawyers & I'm sure that both the citizens against doing away with the WA who live around Love Field & AA will use this logic to attempt to throw out the master plan & slow roll the process may occur. So be it.

As for renogiating leases....the folks with the longest leases appear to be AA on their 3 gates....whenever the other gates come up for renegotiation I would think that the city will open them up & open bidding will occur that will favor the airport & the citizens of Dallas...regardless of how that works out though I'm confident the citizens of Dallas will find lower fares in their future being flown by Southwest.

All Southwest wishes for is to have market forces determine whether they are profitable or not, not an arcane law that prohibits the free market system from operating....if higher gate leases are in our future, so be it, low fares can still be obtained if done properly in my view. We'll see where it goes....hopefully this answers the original question.

 

[JumpJetter]

Chase et al.

If Wright is repealed, do you see growth for SWA, or just reallocation?

JJ