Two congressmen from Texas last month introduced a bill to repeal the Wright Amendment, a controversial legality that for 26 years has prohibited long-haul airline service using anything but smaller planes from operating out of Southwest Airlines' Dallas Love Field base of operations.
If the new legislation is approved, Southwest would add a substantial number of nonstop flights from the airport to many of its stations beyond the current perimeter, which encircles Alabama, Kansas, Mississippi and states that border Texas.
The airline for years had disagreed with the Wright Amendment but did not actively fight for its repeal. It began to take a more aggressive stance late last year, however, as a result of two concurrent developments: sagging demand for short-haul flights after 9/11 and Delta's decision to cut 90 percent of its DFW operations, effective this past January
(BTN, Jan. 17).Members of the U.S. House of Representatives Jeb Hensarling (R-Texas) and Sam Johnson (R-Texas) said the Right to Fly Act would foster competition to and from the Dallas Metroplex and lower fares. "It is wrong for the federal government to play favorites between airlines or airports," Hensarling said. "The Wright Amendment has outlived its usefulness and it needs to be repealed." The amendment was created in 1979 to promote a then-fledgling DFW Airport.
The introduction of the bill came amid increased but familiar rhetoric on both sides. Southwest said it should be allowed to compete in an open marketplace, as all other U.S. carriers can at all other airports around the nation. DFW, and its dominant operator American Airlines, said easing Love restrictions would harm the airport and therefore the North Texas economy, as well as the environment around Love Field.
"If Southwest were sincere about growing and competing, it would be flying from DFW Airport," said AA executive vice president Dan Garton, "and they wouldn't need an act of Congress."
During a press conference in Washington, D.C., after the bill was introduced, Southwest chairman Herb Kelleher said operations at Dallas Fort Worth would not be feasible. "Unfortunately, DFW is not built for point-to-point operations like Southwest Airlines," he said, noting that average taxi times at the airport run at 29 minutes while Southwest on average turns its planes around at the gate in 25 minutes. "We concluded we would have to raise our fares by substantial percentages at DFW, not because of landing fees or terminal rentals, but because of lost utilization of our airplanes. Airplanes only generate revenue in the air. There is no reason for anyone to think we'd leave Love Field airport or split operations to go to a more inefficient airport."
Kelleher acknowledged that a freer hand at Love Field would drive substantially more Southwest revenue, "but miniscule compared to the windfall American just got" as a result of Delta's retreat. "The main thing is to eliminate the hassle for our customers who have to work their way through this labyrinthine obstacle course in order to fly beyond Wright Amendment states."
American's Garton, however, said Southwest is "roaming the halls of Congress seeking special favors."
Kelleher took exception, suggesting it is American and other legacy carriers—not Southwest—that have been active lobbyists in Washington.
"They are asking for government guarantees, asking if they can draw down restricted cash, asking if government-guaranteed loans can be extended, asking the government to take over defined-benefit pension plans," he said. "By contrast, Southwest is in Washington asking Congress for just one thing: to be able to compete."
Kelleher reported that he had received favorable reactions from many members of the U.S. House of Representatives—which referred the new legislation to the Committee on Transportation and Infrastructure—and said Southwest now would seek similar support in the Senate. With the exception of Reps. Hensarling and Johnson, however, none of the Texas congressional delegation publicly has stated support for repealing the Wright Amendment.
Should Congress ultimately act to abolish or phase out restrictions dictated by the Wright Amendment, Southwest would add more nonstop and connecting services from Love Field.
At the same time, other carriers may consider new services into Love Field, a more convenient option for many Dallas-area travelers. Southwest said it uses 14 gates at the airport, leaving five vacant but usable gates in the main terminal and six more in a separate terminal built and used briefly by Legend Airlines
(BTN, Feb. 21, 2000).Kelleher also predicted competitive reactions at DFW, where service would increase and fares would decrease. "People flying in and out of Texas are paying an incredible DFW tax or subsidy because Southwest cannot compete," he said, "but this is not just a battle between American and Southwest. People all around the United States would be saving buckets full of money."