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November - 2004 After Delta's announcement, it was predicted that American Airlines.would see some modest short-term gains at DFW, increasing their market share to 80 percent. As a result, American would win some pricing power, because business flyers who needed lots of direct flights from DFW would now have little choice but to fly American. Delta's departure created an opportunity for AirTran Airways to expand and there was hope that jetBlue would take another look at DFW for service to its New York hub, There was even some speculation that Southwest might finally serve DFW. After considering the matter, Southwest Airlines ruled out starting operations at DFW saying it would not be a good business move to challenge American Airlines at its main hub. They pointed out that AA and American Eagle operated 700 flights per day and it would take too much effort for Southwest to start at DFW and keep operations at Love Field viable. That wasn't the big news, though. According to the Dallas Morning News Kelly said that Southwest, once officially neutral on a federal law that limits its service from Dallas, is edging toward outright opposition to the restrictions it faces at its home airport. DFW, AA and the Ft. Worth parties response was typical. "What the...? This is not the time. Just when we thought things couldn't possibly get any worse. Now this. Time to dust off all the old arguments we've all been hearing the last thirty years." American said that the Wright Amendment helps preserve DFW's position as the principle aviation gateway for North Texas and that weakening the law would undermine DFW and hurt the Dallas-Fort Worth economy. (Here we go again.) DFW said they would fight any attempt to weaken the Wright Amendment (you knew that was coming, didn't you) and accused Southwest of trying to scare off would-be competitors who might try to pick up Delta's gates at DFW. However, America West Airlines, Spirit Airlines and JetBlue Airways all said in later interviews they had no interest in building a DFW hub, regardless of the Wright Amendment. Battling American at its home fortress was the real reason no one was interested. The Ft. Worth Star-Telegram noted that if the Wright Amendment were repealed It would be the biggest change in the North Texas air travel industry in decades. On the one hand, it would lead to cheaper fares and more choices for consumers, but a repeal might also drain passengers and money away from DFW, at least in the short term. And it would certainly have a major effect on American Airlines, which couldn't afford many more financial hits. Despite a successful cost-cutting drive, American continued to struggle with heavy competition elsewhere, and the price of fuel was continuing to rise. A Dallas Morning News article noted: American may consider fighting Southwest from its three gates at Love Field, as it did when Legend launched service there. But American would face the same challenges cited by Southwest in attempting to split its operations between D/FW and Love Field. Also, the Legend fight was expensive; American is in weaker financial shape now. What's more, as D/FW completes a new international terminal, the airport is a key part of American's future. Folks who had long wanted a repeal of the Wright Amendment were excited. Where before, Southwest had chosen to remain "passionately neutral" on the issue, this was the first time Southwest had pledged to actively fight the law! A December 3, 2004 article in the Dallas Morning News quoted Gary Kelly as saying "We brought this up, and the response is favorable, and therefore we are working it, and we are working it hard, For 25 years, there has been no political support to change the Wright amendment ... we sensed it would be different now." The Wall Street Journal had already published an article The Wright Amendment is Wrong which concluded that "Competition is good for businesses, and for travelers. It's time for aviation fences, and artificially high fares, to come down." A New York Times article reported that Southwest added nearly $20 billion a year to consumer welfare, while American subtracted $3.7 billion. Southwest planned a "grass-roots campaign" to repeal the 1979 Wright Amendment that would include
DFW Airport, on the other hand, rallied local politicians to oppose any change. U.S. Sen. Kay Bailey Hutchison and Rep. Joe Barton, R-Ennis, pledged to fight any repeal of the Wight Amendment Other local Republicans who were usually against government interference in business embraced the restrictions imposed by the Wright Amendment. DFW maintained that Southwest should take up the gates being ceded by Delta Air Lines Inc. as it closed its D/FW hub. The battle lines were being drawn, the Ft. Worth parties were already starting to rumble, and the long simmering volcano known as the DFW Airport War was threatening the Metroplex with a major eruption. |
| Wright Amendment Needs To Go
Tune - Your Mama Don't Dance (and your daddy don't rock & roll) (Sung by Dallas Love Field Passengers)
It's twenty-six years now
So open up Love Field (And it's all because)
The people say it's time
We'd love to fly to Pittsburgh,
(Lyrics for instrumental break)
Those seven-thirty-seven's
But Congress, we need your help
And Salt Lake City - Nashville,
Congress gather 'round -
You hear me? (And it's all because)
The Metroplex has spoken and (W-O-O-O-O-O-O-O-O-O-O-O!)
We're tired of higher fares and (O-o-h-h-h-h! - Now do you hear us Congress?)
Bring de-re-gu-la-tion |
