Wright Amendment to lose some punch today

[canyonblue]

Wright Amendment to lose some punch today
​

A big crack in the Wright Amendment will become official today when President Bush signs a transportation bill that includes a bill that exempts Missouri flights. Currently, the Wright Amendment restricts flights from Dallas Love Field to Texas and seven nearby states. That number will grow to eight when Bush signs the bill. "We're on signature watch," Southwest spokeswoman Beth Harbin said jokingly to The Dallas Morning News (free registration).

Southwest is ready to announce new service from Love Field to both Kansas City and St. Louis once the Missouri exemption becomes official. "Once we know it's been signed, we can swing into action," Southwest spokesman Ed Stewart tells the Fort Worth Star-Telegram (free registration). "We can start advertising, we can start planning big press events for the inaugural flights, and we can get the aircraft in place." He said flights could start by Christmas.
An American spokesman said that airline also hopes to add service from Love to Missouri "as quickly as possible." Fares are expected to drop by 25% or more on the routes once Southwest begins flying, but the news isn’t as good for American.

The lower fares that result from the competition could cost AA up to $115 million a year in revenue while boosting Southwest’s bottom line by $80 million, according to the St. Louis Post-Dispatch. Competition on the Dallas-St. Louis route could be especially damaging for AA. The carrier operates hubs in both cities, and is currently the only airline offering non-stop service on the route.

 

[Skyboss]

The lower fares that result from the competition could cost AA up to $115 million a year in revenue while boosting Southwest’s bottom line by $80 million, according to the St. Louis Post-Dispatch. Competition on the Dallas-St. Louis route could be especially damaging for AA. The carrier operates hubs in both cities, and is currently the only airline offering non-stop service on the route.

1. Those routes are already competitive in nature. All Large markets are.
2. Any lost income will just be recovered on other routes. Short haul routes like this are profitable at $100 a seat, even for AA. They're even profitable down to about $59-69. An MD-80 run for AA seat cost is about $40.
3. The big hit will be on smaller connecting routes, but there's enough demand on these routes to connect a 737-800 or MD-80 to each major bank to offset what will be an overcapacity situation initially as AA and WN try to throw in 10-14 round trips each.

 

[Turbojet]

Gee,

Increased service from both SWA and AA at a lower cost. Go figure, I guess that drives the point home that the Wrong ammendment is bad for consumers. Get rid of it and consumers have more choices at a lower cost. Sorry AA, I can see local,state and national politicians getting in line to have their city next on the list.

 

[Skyboss]

Gee,

Increased service from both SWA and AA at a lower cost. Go figure, I guess that drives the point home that the Wrong ammendment is bad for consumers. Get rid of it and consumers have more choices at a lower cost. Sorry AA, I can see local,state and national politicians getting in line to have their city next on the list.

Short term yes, O&D demand isn't there to warrant it long term which is all that your company serves. I know you think your airline is what is great in the world, but I'd rather see choice of more cities through connecting at DFW than just a choice to Dallas. I know they don't teach you that at Southwest University, but that's what the rest of the planet is here to point out to you and your fellow peanut tossers.

 

[canyonblue]

Short term yes, O&D demand isn't there to warrant it long term which is all that your company serves. I know you think your airline is what is great in the world, but I'd rather see choice of more cities through connecting at DFW than just a choice to Dallas. I know they don't teach you that at Southwest University, but that's what the rest of the planet is here to point out to you and your fellow peanut tossers.

Yea, it's called get rid of the Wright Amendment and you can connect to the whole network via DAL. Friggen' Dispatchers. uke:

 

[Tejas-Jet]

I'd rather see choice of more cities through connecting at DFW than just a choice to Dallas.

And you might just get that....what with 24 empty gates at DFW, I'm sure the DFW airport board has other airlines just beating their door down to get in there...or does nobody else want them?

Tejas

 

[Lawman]

And you might just get that....what with 24 empty gates at DFW, I'm sure the DFW airport board has other airlines just beating their door down to get in there...or does nobody else want them?

Tejas

Since Delta has been on life support in chapter 11, the only airline to Kansas City out of the DFW area is American. They have a monopoly on that route. I went on their website and found the fare from DFW to MCI to be $278.00. Southwest will run that same route for 1/4 to 1/2 that. I will fly on Southwest any day. As far as I am concerned, American can have DFW as long as I can get to where I need to go on SWA.

 

[aa73]

Since Delta has been on life support in chapter 11, the only airline to Kansas City out of the DFW area is American. They have a monopoly on that route. I went on their website and found the fare from DFW to MCI to be $278.00. Southwest will run that same route for 1/4 to 1/2 that. I will fly on Southwest any day. As far as I am concerned, American can have DFW as long as I can get to where I need to go on SWA.

Gee, you're not ex TWA, are you?

 

[Hamburgler]

Short term yes, O&D demand isn't there to warrant it long term which is all that your company serves. I know you think your airline is what is great in the world, but I'd rather see choice of more cities through connecting at DFW than just a choice to Dallas. I know they don't teach you that at Southwest University, but that's what the rest of the planet is here to point out to you and your fellow peanut tossers.

I totally agree. I think going from DFW would lower prices for all on many more routes - if your concern is your bottom line (not SWA's), then I think this argument holds water.

Preparing to be puked on by canyonblue...

 

[canyonblue]

uke: uke: uke: uke: uke: uke: uke: