Study Finds Opening Love Field to Long-Haul flying would have Serious Conserquences

Dangerkitty

Well-known member
Joined
Feb 21, 2004
Posts
1,353
Total Time
8700
New Comprehensive Study Shows Opening Dallas Love Field to Long-Haul Flying Would Have Serious Consequences

Eclat Consulting Says Wright Amendment Repeal Could Result in Major Loss of Air Service in Dallas/Fort Worth Market and Adversely Impact Dozens of Communities in 22 States

FORT WORTH, Texas, Oct. 10 /PRNewswire-FirstCall/ -- A study conducted by Eclat Consulting concludes that the repeal of a federal law known as the Wright Amendment -- thus allowing long-haul flying at Love Field in Dallas -- would trigger a chain reaction leading to significant losses in the number of flights and destinations served at the nearby Dallas/Ft. Worth International Airport (DFW).

The loss includes both international routes and service to dozens of small- to medium-sized cities throughout Texas and the United States.
Smaller communities would bear the brunt of the changes, the study found, losing vital access to the nation's air transportation system that they enjoy today via DFW, as American Airlines is forced to move flights to Love Field. International service also would be significantly reduced. The results of the study, commissioned by American Airlines, were based on publicly-available data and Eclat's internal models.

Eclat Consulting, a Washington-based aviation consulting practice, predicts that while Love Field would gain approximately 251 daily flights (in and out) to major metropolitan areas the benefit of the additional Love Field flights would be greatly outweighed by the loss of approximately 436 daily flights at DFW -- with the greatest harm felt on routes to smaller towns and foreign destinations with fewer passengers.

The net loss of 185 daily flights would have a negative economic impact for the North Texas region and a serious reduction in connecting service opportunities for many smaller communities now served by American Airlines, its regional affiliate American Eagle, or the AmericanConnection carriers.

"American and the other airlines currently operating out of DFW would be forced to move a large number of flights from DFW Airport to Love Field to compete with Southwest Airlines if the Wright Amendment is repealed," said William S. Swelbar, president and managing partner of Eclat Consulting. "If that happens, 'hub degradation' would take place, making marginal routes unprofitable. Inevitably, those unprofitable routes would be eliminated."

If the DFW hub shrinks there would be fewer connecting flights, resulting in reduced service to smaller communities that rely on American's extensive route network as their link to the world. The study also suggests that additional flight reductions likely will come from Southwest as it accelerates its historic trend of reducing service to smaller cities in Texas and surrounding states and begins long-haul flying from Love Field.

On the surface, according to the study, the repeal of the Wright Amendment appears to be strictly a Dallas/Fort Worth issue and one that affects only American Airlines and Southwest. It is not.

"The repeal of the Wright Amendment is certainly a commercial issue for the carriers most affected, but the losers will be smaller communities that rely on DFW to provide access to, and competition within, the U.S. air transportation system," said Swelbar.

According to the study, the cities most at risk of losing service or seeing a reduction in service include 11 in Texas -- Abilene, College Station, Corpus Christi, Killeen, Laredo, Longview, McAllen, San Angelo, Tyler, Waco and Wichita Falls. In addition, service to Fayetteville, Ft. Smith and Texarkana, Ark.; Lawton, Okla.; and Springfield, Mo., would also be at most risk.

The study also suggests that small cities that rely solely on federally- subsidized Essential Air Service (EAS) provided by the AmericanConnection carriers will see the effectiveness of their only air service degraded as they lose the ability to connect to important domestic and international destinations. Those EAS cities include Burlington, Iowa; Kirksville, Cape Girardeau, Joplin and Ft. Leonard Wood, Mo; Marion, Quincy and Decatur, Ill.; Owensboro, Ky.; and Jackson, Tenn.

Metropolitan areas in 22 states also face a risk of reduced flights including, Alabama, Arkansas, Arizona, California, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and Washington.

"Business and leisure travelers headed to international destinations will be adversely affected if the Wright Amendment is repealed and American Airlines is forced to move flights from DFW to Love Field in order to compete with Southwest," said Swelbar. "Fewer connecting flights at DFW mean fewer connecting passengers are available to combine with local travelers on routes that need such a strong mix in order to be financially viable. We believe flights from DFW to London; Paris; Zurich; Los Cabos; Puerto Vallarta; Leon, Mexico; Guadalajara; Cozumel; Belize City; San Jose, Costa Rica; Caracas; Lima; Sao Paulo; Santiago, Chile; and Buenos Aires will be affected."

"We have no doubt that those elected officials advocating repeal of the Wright Amendment are well-motivated and genuinely believe that repeal would be in the public interest," said Will Ris, American's Senior Vice President - Government Affairs. "But as the Eclat study so succinctly points out, a change of such magnitude can unleash unintended consequences that ripple throughout the transportation system.

"Those consequences simply can't be avoided by American sitting back and doing nothing if the agreement upon which we and the communities have relied for years is suddenly undone. Given the disproportionate economic power and resources of Southwest Airlines, which is now the nation's largest and wealthiest domestic airline and which dominates Love Field, we would have no choice but to respond decisively.

While neither American nor American Eagle can say for sure what specific actions would be taken should the Wright Amendment be repealed or altered, the Eclat study does suggest one highly plausible scenario."
To view the American Airlines-Eclat Consulting Webcast or see the Eclat Study go to: http://www.videonewswire.com/event.asp?id=30684 .
About Eclat Consulting

Eclat Consulting, located in Reston, Virginia, specializes in the economics of commercial aviation. The firm advises the full spectrum of aviation clients, including airlines, airports, investors, governments and aerospace/aeronautics corporations. Eclat has completed numerous assignments that rely on its knowledge of airline network planning issues and the competitive aviation market.

About American Airlines American Airlines is the world's largest airline. American, American Eagle and the AmericanConnection(R) regional airlines serve more than 250 cities in over 40 countries with more than 3,800 daily flights. The combined network fleet numbers more than 1,000 aircraft. American's award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve more than 600 destinations in over 135 countries and territories. American Airlines, Inc. and American Eagle are subsidiaries of AMR Corporation AMR.
 

lowecur

Well-known member
Joined
Sep 14, 2003
Posts
2,317
Total Time
na
This the AMR study that I mentioned

You think it's tilted towards AMRs point of view.:D LUV has a tough battle ahead as lobbyists, politicians, and the various entities with everything to gain in this battle will decide the outcome. Tough one to call, although I believe it will be a give and take with WN getting some long haul markets at DAL in exchange for opening double the number of flts at D/FW. The proprietary field for WN will never fly.:beer:
 

scoreboard

Please keep moving...
Joined
Jan 11, 2004
Posts
574
Total Time
7500
Let me get this right...

Dangerkitty said:
New Comprehensive Study Shows Opening Dallas Love Field to Long-Haul Flying Would Have Serious Consequences

Eclat Consulting ....commissioned by American Airlines.

if the Wright Amendment is repealed

"Fewer connecting flights at DFW

fewer connecting passengers

to combine with local travelers on routes that need such a strong mix in order to be financially viable. We believe flights from DFW to London; Paris; Zurich; Los Cabos; Puerto Vallarta; Leon, Mexico; Guadalajara; Cozumel; Belize City; San Jose, Costa Rica; Caracas; Lima; Sao Paulo; Santiago, Chile; and Buenos Aires will be affected."

"Those consequences simply can't be avoided by American sitting back and doing nothing.

Given the disproportionate economic power and resources of Southwest Airlines, which is now the nation's largest and wealthiest domestic airline and which dominates Love Field, we would have no choice but to respond decisively.


About American Airlines American Airlines is the world's largest airline. AMR.
Sorry, but this is a pretty weak argument. In essence it says WN should not prevail because it would impact the worlds largest airline. Farce.
 

radarlove

Well-known member
Joined
Mar 21, 2005
Posts
677
Total Time
years
Yeah, the study should be entitled, "Opening Dallas Love Field to Long-Haul Flying Would have Serious Consequences on the Ability of American Airlines To Gouge Consumers"
 

flydaddy0499

Now accepting donations:)
Joined
Aug 23, 2004
Posts
126
Total Time
4000
Oh no! The return of a free market economy to DAL? Whatever are we to do? This seems to be one of the most lame PR moves that AA has put out in while; what a lamea$$ study.
 

dhampton

Just another number
Joined
Nov 26, 2001
Posts
130
Total Time
8000
"American and the other airlines currently operating out of DFW would be forced to move a large number of flights from DFW Airport to Love Field to compete with Southwest Airlines if the Wright Amendment is repealed,"
Just like Continental has to do at Houston Hobby....
 

On Your Six

Well-known member
Joined
Mar 8, 2004
Posts
4,509
Total Time
9,500
Consultants will say whatever you want so long as you are signing their fat checks.... Houston Hobby is a great example that nobody in Dallas/Ft. Worth wants to mention. AA knows it will get its a$$ kicked because it just can't compete on the low-cost side.

Dallas/Ft. Worth consumers are the ones who will lose if things don't change - who cares about how it will impact people in North Dakota. I can't see how Southwest's increase in service out of Hobby has crippled people in Montana... It's all consulting SPIN...
 

Jim Smyth

Well-known member
Joined
Oct 13, 2004
Posts
603
Total Time
20K
Dangerkitty said:
New Comprehensive Study Shows Opening Dallas Love Field to Long-Haul Flying Would Have Serious Consequences
Oh my, this would mean they would have to compete?
 

FlyBoeingJets

YES, that's NICE
Joined
Mar 20, 2003
Posts
1,802
Total Time
>5000
"American and the other airlines currently operating out of DFW would be forced to move a large number of flights from DFW Airport to Love Field to compete with Southwest Airlines if the Wright Amendment is repealed," said William S. Swelbar, president and managing partner of Eclat Consulting. "If that happens, 'hub degradation' would take place, making marginal routes unprofitable. Inevitably, those unprofitable routes would be eliminated."

If the DFW hub shrinks there would be fewer connecting flights, resulting in reduced service to smaller communities that rely on American's extensive route network as their link to the world. The study also suggests that additional flight reductions likely will come from Southwest as it accelerates its historic trend of reducing service to smaller cities in Texas and surrounding states and begins long-haul flying from Love Field.


What a bunch of baloney. But I actually hope the political elite buys it. I would love the HQ to move to San Antonio. You can't say we didn't warn them.
 

kelbill

Well-known member
Joined
Nov 13, 2002
Posts
208
Total Time
13000+
The only leg AA and DFW have to stand on is whether or not the community wants to force all airlines from flying out of DFW in order to pay for its initial construction and continuing debt servicing. If that is their argument, and Congress and the local yocals agree, I can't argue, as airports are large public works projects and need to be paid for in a reasonable manner and timeframe. Now, if we are going with the increased competition for AA, the deterioration of their own chosen hub and spoke model, a reduction in service on unprofitable routes, and other anti-free market arguments, then that is another ball game.

And how come AA was allowed to cut back so darn much in STL if that obviously had to hurt the entire midwest economy immensely, assuming their own DFW analogy/study is accurate? Oh thats right, they felt like it, and I guess hosed over all those places they now either don't serve or serve a lot less. I won't be surprised if the Wright Amendment doesn't go away, but regardless, lets use some ethical and legitimate arguments to support our sides.
 

Dangerkitty

Well-known member
Joined
Feb 21, 2004
Posts
1,353
Total Time
8700
Jim Smyth said:
Oh my, this would mean they would have to compete?
If competition is your argument then why doesn't SWA just come to DFW. DFW has been begging for SWA to launch service there.
 

Dangerkitty

Well-known member
Joined
Feb 21, 2004
Posts
1,353
Total Time
8700
Since I am furloughed from AA and have moved to greener pastures I really could care less what happens to the whole Wright Amendment thing.

I just find it incredibly hypocritical that SWA now wants the Wright Amendment repealed when 30 years ago Herb himself signed off on the deal. The whole Wright Amendment was put into place to appease SWA so that they wouldn't have to move to DFW like everyone else. Now they are crying foul.
 

Jim Smyth

Well-known member
Joined
Oct 13, 2004
Posts
603
Total Time
20K
Dangerkitty said:
If competition is your argument then why doesn't SWA just come to DFW. DFW has been begging for SWA to launch service there.
Why would we want to move to DFW! I cant think of any good reasons but hey, who am I.

This is America isnt it? Americans pride themselves on competition. Cant fly more than one state away from Dallas Love Field? WTF! This is a rediculous rule from day 1 meant to stop the competition and they are still at it today.
 

Dangerkitty

Well-known member
Joined
Feb 21, 2004
Posts
1,353
Total Time
8700
Jim Smyth said:
Why would we want to move to DFW! I cant think of any good reasons but hey, who am I.

This is America isnt it? Americans pride themselves on competition. Cant fly more than one state away from Dallas Love Field? WTF! This is a rediculous rule from day 1 meant to stop the competition and they are still at it today.
It's obvious you dont know the history of the Wright Amendment do you?
 

pianoman

Well-known member
Joined
Jan 27, 2005
Posts
525
Total Time
5000
It's a simple fact. If AA loses flying out of DFW, then there will be service cuts. The first cities to be cut will probably be those "feed" cities that would likely have no service otherwise such as Waco, Victoria, etc.

This is the decision that will have to be made- cheap fares between big cities only (i.e. point-to-point) or do we accept some of the inefficiencies of hub-and-spoke in order to provide an economic stimulus to small town America that would otherwise not have airline service and therefore become less desirable as a business location?
 

Jim Smyth

Well-known member
Joined
Oct 13, 2004
Posts
603
Total Time
20K
Nope, dont know a thing about it...................

Lets put the shoe on the other foot and say that tomorrow that no Airlines can take off out of DFW and fly more than 1 state away for say the next 30 years. Does this seem like a fair thing to do? Doesnt make much sense to me and I dont think AA would be standing still on the sidelines if that was the case.

Personally I kinda like it the way it is. Love field is a nice place to fly in and out of rather than going into the unprofitable meat grinders.
 

erj-145mech

Well-known member
Joined
Aug 13, 2002
Posts
1,071
Total Time
1350
Where was fair when DFW was built and American, Braniff, Continental, Delta, Eastern, Frontier and the others that were forced to move there from Love on their own dime? I worked for a small carrier that fed mostly Delta, and it was a pain in the arse logisticly to transfer everything over there.
 

enigma

good ol boy
Joined
Nov 26, 2001
Posts
2,279
Total Time
>1500
Miscellaneous Ramblings, with apologies to Tony Hogg

pianoman said:
It's a simple fact. If AA loses flying out of DFW, then there will be service cuts. The first cities to be cut will probably be those "feed" cities that would likely have no service otherwise such as Waco, Victoria, etc.

This is the decision that will have to be made- cheap fares between big cities only (i.e. point-to-point) or do we accept some of the inefficiencies of hub-and-spoke in order to provide an economic stimulus to small town America that would otherwise not have airline service and therefore become less desirable as a business location?
If you take this argument and apply it to, let's say, Chicago, one would conclude that feeder cities into ORD are underserved because of Midway. Is this a proper conclusion?

What about Los Angeles? Are there cities near to LAX, that are underserved because of the presence of competing airports?

Boston Logan?

Miami International?

Houston Bush?

Next question. Should the citizens at large, subsidize citizens of smaller communities? Obviously Waco can't generate enough originating traffic to justify service between itself and Chicago; should the citizens of Dallas be forced to pay so that BettyBaylor can shop on Michigan Ave?

For myself, I believe that the EAS program is/was justified. But it was a national program wherein each citizen of these United States paid so that said small markets could maintain air service. In case of DFW vs LUV, it is the Metroplex air travelers who are being forced to pay, with high fares, for BettyBaylors shopping trip. I find that objectionable. FWIW, Waco happens to be very near to my home, I occasionally commute from there but am willing to stick to my principles in this matter.

Maybe you should ask yourself this; Why would ACT lost service if the
WA is repealed? The AA business model is based upon feeding the hub, so why would they abandon their model just because they lost some metroplex customers? Is AA going to completely abandon the "feed the hub" model?

I think that AA's current "we're going to cut service to Waco if the WA goes down" stance is an admission that the hub passengers have been subsidizing the feeder towns, AND that they are screwing the metroplex market to do so.

I'm actually very surprised that AA has entered the fight. I really gave them credit for being smarter than they have shown these last few months.

IF AA MANAGES TO DEFEAT SWA'S ATTEMPT TO REPEAL WRIGHT, IT WILL BACKFIRE ON AA.

If I were AA, I'd be working to convince Waco, and every other DFW feeder city, that I was their only friend. I'd be wining and dining their corporations, chambers of commerce, etc, NOT in an attempt to scare them into politcal support, but in an attempt to gain their business.

Here's the bottom line to me, AA wants to have their cake and eat it too (that old saying really doesn't make, sense, but we all know what it means:))

I've said before, If I were Arpey, I'd be using this to twist DFW's arm into lower fees, not trying to enable DFW to continue its gluttony of tax money.

enigma
 

flyinglow

Well-known member
Joined
Dec 12, 2004
Posts
87
Total Time
enough
I normally would never defend a morally bankrupt company like AA, but I just can't agree with SWA on this one. The Wright Amendmend has been a around since SWA was started it is status quo. All decisiosn made by AA and SWA since then have been made with it in mind. SWA knew about the the WA when it built it's new terminals, training center, etc. What SWA is doing now is asking the government to legislate a competitive advantage for themselves. The purpose of the government is not to help one company over another especially in such a competitive industry period. (Please no comments on the bankrupcy courts, we all no that system is broke)
 
Top