SWA gets ready to end W/A

swamt

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Oct 23, 2010
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For some of you that thought the Write Amendment going away was "no big deal" to AA might wanna read below; It's apparently a huge thing to SWA, Dallas and many travelers out there that didn't fly SWA out of Dal directly due to the W/A, once gone, I am positive the passenger numbers will move over to SWA after all the non-stops are put in place. A whole year of celebrating the W/A going away-I told you it was going to be big-some of you didn't believe, but come this Mon you will, happy reading:-


Southwest Airlines gets ready for end of Wright amendment
Tony Gutierrez/AP



One year from Sunday, the shackles come off Dallas Love Field, and Southwest Airlines Co. is already anticipating the moment.

It is planning a full year of celebrations and promotions to lead up to Oct. 13, 2014, when the Wright amendment goes away and Southwest can fly nonstop anywhere it wants in the United States.

The Dallas-based carrier, whose main offices abut Love Field, isn’t revealing everything it has planned. But on Monday, it will unveil a countdown clock in its headquarters lobby so that employees can see how many days remain until the big change.

“Something big is going to happen on 10-13-14,” Southwest executive Ron Ricks said Friday, “and it’s so big that we think it’s going to take a full year to celebrate. So we’re going to start the countdown at 10-14-2013.”

The Wright amendment, signed into law by President Jimmy Carter on Feb. 15, 1980, restricted nonstop flights from Dallas Love Field to airports in Texas and four bordering states — Oklahoma, Louisiana, New Mexico and Arkansas.

Not only did the law bar flights beyond those states, but it also barred airlines from selling a ticket that would take a passenger to airports beyond those states even on a connecting or one-stop basis.

In 1997, Congress put Kansas, Mississippi and Alabama inside the boundaries, and Missouri was added in 2005. Meanwhile, Southwest chief executive Gary Kelly began a push in November 2004 to get the law repealed.

The effort wound up with a June 2006 compromise among Southwest, American Airlines Inc., the cities of Dallas and Fort Worth and the Dallas/Fort Worth International Airport to do away with the Wright amendment restrictions in eight years. The law, passed by Congress, was enacted Oct. 13, 2006, setting up Oct. 13, 2014, as its expiration date.

“We’ve lived with the Wright amendment for 34 years,” Ricks said. “Now we’re going to take 365 days to say goodbye to it.”

Ricks, Southwest’s executive vice president and chief legal and regulatory officer, said Southwest intends to make a big deal of the impending change to remind people of what is about to occur.

“It occurred to us that our customers, our employees in North Texas and certainly our customers and employees outside North Texas all generally know something is supposed to happen sometime soon, but they don’t know what and they don’t know when,” he said.

“So starting Monday, by way of a regular celebration that we’ll roll out on a periodic basis over the course of a full year, we’re going to start telling people, first of all when, which is Oct. 13, 2014, and then later in the year as we move into it, more of the ‘what,’ ” Ricks said.

Ricks declined to specify where Southwest will fly nonstop from Dallas Love Field. Other executives have suggested that the likely destinations will be the cities that are largest in the Southwest system, such as Las Vegas, Phoenix, Chicago, Orlando, Fla., and Baltimore.

If history is any guide, Southwest probably will lay out its Oct. 13, 2014, schedule in February or March.

“Being Southwest Airlines, we may have a surprise or two here or there with regards to timing,” Ricks said, “but we don’t know yet.”

Follow Terry Maxon on Twitter at @tmaxon.
 
Yes, it will be a big deal for Southwest and its loyal followers. Will it spell doom for AA at DFW? Nope. Houston Hobby, a close-in, convenient airport just 250 miles away, is instructive. Despite many years of competition against CO at IAH, CO was able to build a growing, viable international hub at Bush. Currently, with 19 gates, WN flies 157 daily flights from HOU to 43 cities. Here's the list of WN destinations from HOU, and quite likely the DAL destinations will be very similar:

Albuquerque, Atlanta, Austin, Baltimore/Washington, Birmingham, Branson, Boston Logan, Charleston, Charlotte, Chicago (Midway), Corpus Christi, Dallas (Love Field), Denver, El Paso, Ft. Lauderdale/Hollywood, Greenville-Spartanburg, Harlingen/South Padre Island, Indianapolis, Jackson, Jacksonville, Kansas City, Las Vegas, Little Rock, Los Angeles (LAX), Midland/Odessa, Nashville, New Orleans, New York (LaGuardia), Newark, Oakland, Oklahoma City, Orange County, Orlando, Panama City Beach, Pheonix, Pittsburgh, Raleigh Durham, Reagan, San Antonio, San Diego, St. Louis, Tampa Bay and Tulsa.

Oddly enough, there are some notable absences on that list, like Detroit, Philadelphia, San Jose and Seattle.

As I posted before, WN will undoubtedly attract some business travelers once DAL nonstops are available. Enough to mortally wound AA? Doubtful. UA/CO is still the largest carrier on many routes from the Houston area to the West Coast, and I suspect that AA will likewise remain the largest carrier on similar routes from the Dallas Fort Worth region.

Yes, WN will take away some business from AA. Set the fares low enough, and people will try anything once.

The "no bag fees" policy is attractive to occasional travelers and families, not road warriors. Very frequent business travelers don't check bags on short trips. The WN frequent flyer scheme? Kelly keeps devaluing it and making it needlessly complex. The WN big seats arranged 2 x 2 up front where meals are served and where shoulders have enough room? Well, that goes without saying . . .

You earlier posted your prediction that WN would fly 250 daily departures from the 16 DAL gates, which is the same number of flights flown by WN at CHI MDW from 32 gates. My prediction is that it will look similar to HOU, with perhaps 160 daily flights from the 16 gates.
 
I know I cannot wait. Flew them from DAL to SAN back in August and it was great. Free wi-fi (watched several episodes of Law and Order) free drinks, no luggage fees. I parked at the Parking Spot for $8 a day with covered parking. I live in the mid cities so DFW is far more convienient in terms of distance but if you tink I am alone in seeking an alternative to cranky FA's, poor reliability, being nickel and dimed to death by AA and the other airlines I think youmight be surprised. I do not like to fly Spirit. I'm '6"3 and I cannot even put my knees toghther on a Spirit flight. I have not flows AA in a couple of years so I am not sure how your seating has changed. SWA and DAL have too many advantages over AA et al to be ignored. When SWA gets non-stops out of DAL to SAN and LAX and anywhere else I want to go I'll fly them all day long over AA. Pretty sure I am not alone.

Death knell for AA, no I doubt it but I am pretty sure fares will drop along with passenger loads by a few points if not more.
 
Yes, it will be a big deal for Southwest and its loyal followers.

Yes, WN will take away some business from AA. Set the fares low enough, and people will try anything once.
Southwest Airlines Co. (LUV) flies more passengers in the U.S. than any other carrier.

Yes SWA has many loyal customers.
It seems many people are trying WN more than once, and coming back.
 
Yes, it will be a big deal for Southwest and its loyal followers. Will it spell doom for AA at DFW? Nope. Houston Hobby, a close-in, convenient airport just 250 miles away, is instructive. Despite many years of competition against CO at IAH, CO was able to build a growing, viable international hub at Bush. Currently, with 19 gates, WN flies 157 daily flights from HOU to 43 cities. Here's the list of WN destinations from HOU, and quite likely the DAL destinations will be very similar:

Albuquerque, Atlanta, Austin, Baltimore/Washington, Birmingham, Branson, Boston Logan, Charleston, Charlotte, Chicago (Midway), Corpus Christi, Dallas (Love Field), Denver, El Paso, Ft. Lauderdale/Hollywood, Greenville-Spartanburg, Harlingen/South Padre Island, Indianapolis, Jackson, Jacksonville, Kansas City, Las Vegas, Little Rock, Los Angeles (LAX), Midland/Odessa, Nashville, New Orleans, New York (LaGuardia), Newark, Oakland, Oklahoma City, Orange County, Orlando, Panama City Beach, Pheonix, Pittsburgh, Raleigh Durham, Reagan, San Antonio, San Diego, St. Louis, Tampa Bay and Tulsa.

Oddly enough, there are some notable absences on that list, like Detroit, Philadelphia, San Jose and Seattle.

As I posted before, WN will undoubtedly attract some business travelers once DAL nonstops are available. Enough to mortally wound AA? Doubtful. UA/CO is still the largest carrier on many routes from the Houston area to the West Coast, and I suspect that AA will likewise remain the largest carrier on similar routes from the Dallas Fort Worth region.

Yes, WN will take away some business from AA. Set the fares low enough, and people will try anything once.

The "no bag fees" policy is attractive to occasional travelers and families, not road warriors. Very frequent business travelers don't check bags on short trips. The WN frequent flyer scheme? Kelly keeps devaluing it and making it needlessly complex. The WN big seats arranged 2 x 2 up front where meals are served and where shoulders have enough room? Well, that goes without saying . . .

You earlier posted your prediction that WN would fly 250 daily departures from the 16 DAL gates, which is the same number of flights flown by WN at CHI MDW from 32 gates. My prediction is that it will look similar to HOU, with perhaps 160 daily flights from the 16 gates.
I never said in my post that it would spell doom for AA or mortally wound AA. Will AA "feel" the W/A go away?---- Absolutely. Will SWA pull travelers from AA?---- Absolutely. Will SWA grow their market share in the North Tx market?---- Absolutely. Will AA's market share drop after W/A is gone?---- Absolutely. Will it kill AA in the N TX market? Nope. They will hang in there, BUT, over time (years) the only thing AA will be bragging about will be the international market out of DFW. Again, I don't think the W/A going away will put AA out of bus., not even close, however, over the years down the road, it will end up being the biggest thorn in AA's side just as the W/A has been a big thorn in our side for 34 plus years, now it is time to "share the pain" of said thorn with AA. AA will more than likely be very, very sorry for all the hatred they have shown thru-out the years towards SWA and trying to force SWA to go out of bus. Now the tables will be turned; enjoy the outcome AA, you deserve it...
 
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It is equally worth asking what other events in the history of WN have been marked with such anticipation.

If there really is such a limited amount of flights that they can operate and there are people who won't switch from AA, then WN is making a big deal about something that will have no impact.

WN is a well-run airline that is fully capable of generating the necessary "noise" but that noise is made solely to build WN's business and the evidence is very strong that they have succeeded in that regard.

There is every reason to believe that the fall of the WA will provide more opportunities for WN than they have ever had.

OTOH, if the WA poses no threat to AA, then there really is nothing to worry about.

As has been noted before, however, there are factors about DAL and DFW that are unique to the N. Texas metroplex and are completely different from what is happening in other multi-airport cities where WN has a hub at one airport and its network competitors have hubs at others.

There simply is no comparison but the mere fact that the WA was created says that there was a threat that was identified a long time ago and there is no reason to think it is any less today - and perhaps a whole lot greater.
 
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Airline Employees LUV SWA . I fly with them both non-rev and revenue when ever i can avoiding LCC . They learned almost everything they know from PSA and have stuck with what works . Lower fares with high frequency and Unionized Airline Workers who are treated as assets not liabilities. It will be interesting to see what happens with LUV once LCC/AMR Group merge and become One World ?
 
I never said in my post that it would spell doom for AA or mortally wound AA. Will AA "feel" the W/A go away?---- Absolutely. Will SWA pull travelers from AA?---- Absolutely. Will SWA grow their market share in the North Tx market?---- Absolutely. Will AA's market share drop after W/A is gone?---- Absolutely. Will it kill AA in the N TX market? Nope. They will hang in there, BUT, over time (years) the only thing AA will be bragging about will be the international market out of DFW. Again, I don't think the W/A going away will put AA out of bus., not even close, however, over the years down the road, it will end up being the biggest thorn in AA's side just as the W/A has been a big thorn in our side for 34 plus years, now it is time to "share the pain" of said thorn with AA. AA will more than likely be very, very sorry for all the hatred they have shown thru-out the years towards SWA and trying to force SWA to go out of bus. Now the tables will be turned; enjoy the outcome AA, you deserve it...
Hey swamt,

After your rambling, you forgot to add IMHO!
 
Just a minor point...since the WA has been so very important to WN over the years--by stifling their expansion at DAL, one would think that everyone at WN would know how to spell Wright Amendment (not Write). It is named after its author, Cong. Jim Wright, who represented a U.S. Congressional District centered in Ft. Worth. The history lesson is now concluded. Go back to your assigned duties.
 
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Just a minor point...since the WA has been so very important to WN over the years--by stifling their expansion at DAL, one would think that everyone at WN would know how to spell Wright Amendment (not Write). It is named after its author, Cong. Jim Wright, who represented a U.S. Congressional District centered in Ft. Worth. The history lesson is now concluded. Go back to your assigned duties.
I-phone must have submitted self spelling, however, my fault for not proof reading prior to sending. After looking back, it did look disrespectful to Mr. Wright. Won't happen again, thx Jim...
 
BTW here's some more:


Love field eyes the future
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Have more to add? News tip? Tell us

By Andrea Ahles

[email protected]

DALLAS — Southwest Airlines is ready to celebrate its first minute of freedom from the Wright Amendment at Dallas Love Field, even though it’s a year away.

The Dallas-based airline is unveiling a countdown clock Monday at its headquarters, reminding employees, passengers and North Texans that starting on Oct. 13, 2014, it will be able to fly nonstop anywhere in the U.S. from its Love Field home.

“We are going to start telling people exactly what this means, in terms of providing nonstop Love to the people of North Texas,” Executive Vice President Ron Ricks said. “We want North Texas to be as excited about it as we are.”

When the compromise agreement was signed in 2006, eight years seemed like a long time to wait for the travel restrictions to be lifted at Love Field. The long-negotiated delay was meant to give Dallas/Fort Worth Airport and its main tenant, American Airlines, time to prepare for the big change.

But in those eight years, the airline industry has changed dramatically as several carriers have merged – including Southwest, which bought AirTran Airways. Both Love Field and DFW have also undertaken expensive terminal renovations to make traveling in and out of the Metroplex more customer-friendly.

As a result, industry analysts don’t expect the end of Wright Amendment restrictions to dramatically affect air travel for travelers in the Metroplex, aside from new competition on selected routes.

“It’s an opportunity for Southwest, but it’s not a sea change in travel patterns in the Metroplex,” aviation consultant Michael Boyd said.

Restrictions to be lifted

Since the enactment of the Wright Amendment in 1979, nonstop flights out of Love Field were limited to only a handful of states. Local politicians said the restrictions were put in place to maintain a financially healthy DFW Airport.

But in 2004, Southwest began a public campaign to change those restrictions, saying it was time to “set LUV free.” DFW Airport and its supporters countered with a “keep DFW strong” campaign.

It took several months of negotiations among both airports, Southwest, American and the mayors of Dallas and Fort Worth to hammer out a compromise. In 2006, the deal was approved by Congress and signed into law by President George W. Bush.

“Lifting the Wright Amendment restrictions will only mean more choices for the traveling public, and that can only be a good thing,” said Fort Worth Mayor Betsy Price, who was not mayor when the compromise was reached.

The agreement allows for long-haul flights out of Love Field starting in 2014, while limiting the airport to 20 gates and prohibiting international flights.

It also immediately permitted airlines, primarily Southwest, to begin selling tickets to connecting destinations outside of the Wright restrictions. For example, a consumer could buy a ticket to Los Angeles from Love Field that included a stop in Albuquerque.

Currently, nonstop flights can be offered from Love Field to cities in Texas, New Mexico, Oklahoma, Kansas, Arkansas, Louisiana, Mississippi, Missouri and Alabama. But with so-called through-ticketing, Southwest has been able to offer one-stop service to other destinations including Las Vegas, Chicago and Orlando, Fla., for several years.

With the restrictions dropping next year, those destinations could see nonstop service from Love Field.

“Dallas-Fort Worth needs and will support multiple airports,” said Dallas Mayor Mike Rawlings, who was also not in office when the compromise was reached. “We are a big market and I think new travel options for Dallas-Fort Worth citizens is a very positive thing.”

The effect for Southwest

Southwest has been waiting for years to fly long-haul flights out of Love Field. And now that it will have that ability, the airline is being coy about its plans.

“We’re not sure what we’re going to do yet because it depends on demand,” Ricks said.

Since the compromise was reached, Southwest has added Boeing 737-800 aircraft which carry 175 passengers, 20 percent more than the Boeing 737-700s the airline has. The larger planes allow Southwest to add capacity at airports that are gate- or slot-constricted like Love Field. The airline has also added more seats to its older planes, increasing to 143 seats from 137 seats with its Evolve interior redesign.

And in the past four years, Southwest has added service to major business travel markets including LaGuardia Airport in New York, Reagan National Airport in Washington, D.C., and Logan Airport in Boston.

The carrier will likely unveil its new schedule for nonstop flights out of Love Field in the spring, as Southwest typically opens up its fall schedule for ticket purchases about six months ahead.

Industry analysts speculate that Southwest will reduce its daily flights from Love to Houston, Austin, Lubbock and other markets as it adds destinations. Southwest is likely to add flights to its hubs in Los Angeles, Denver, Las Vegas and Chicago’s Midway airport, they say.

“They are going to want to connect Dallas to those larger markets they’ve entered like New York, Boston and Washington, D.C., which were outside of the Wright Amendment perimeter,” said Bill Swelbar, an airline researcher at the Massachussetts Institute of Technology.

Newer airports, lower fares

Consumers can expect airfares to drop on the new long-haul routes that Southwest launches from Love, but most of the airfares in and out of the Metroplex are likely to remain unchanged.

“Historically, whenever we’ve seen new routes, typically you will see four to eight months of loss-leading promotions, and then the fares sort of stabilize,” said Rick Seaney, co-founder of Farecompare.com. “The bottom line is it helps on certain routes, maybe a dozen or so, where you’ll see lower prices.”

On the nonstop routes that Southwest adds to Love Field, Seaney said, he expects leisure fares to decline about 30 percent. Business travelers who typically purchase tickets seven days in advance will probably see a 20 percent discount, he said.

Low-fare competitor Spirit Airlines has already helped reduce fares on some routes out of DFW as the carrier has increased service to 26 destinations in two years. Fort Worth-based American, which handles about 85 percent of the passenger traffic out of DFW, has also faced competition from Virgin America and JetBlue Airways, which have added service to DFW.

“The airline industry is extremely competitive, and the expiration of the Wright Amendment will only intensify the competition for customers across the country and in the Dallas-Fort Worth market,” American spokeswoman Stacey Frantz said.

Both airports in the Metroplex are spending hundreds of millions to make their terminals more appealing to customers.

DFW Airport is in the midst of a $2.3 billion, eight-year terminal renovation. The first part of the remodeled Terminal A opened this year with new concessions, terrazzo floors and a new ticketing area for American.

“Our focus has been doing what we need to do to be a competitive airport, not just with Love Field but with other airports including those around the world,” said Phil Ritter, DFW Airport’s executive vice president of government and stakeholder affairs.

Love Field, which serves about 8 million passengers annually, has spent more than $500 million demolishing old concourses and redesigning its terminal. The first half of the renovation opened in April, giving travelers concessionaires like La Madeleine, Cru Wine Bar and Sky Canyon by chef Stephan Pyles. The airport also installed power outlets and USB connections at every seat in the gate for travelers who want to charge their laptops or phones while they wait in the departure area.

The last phase of the project, which includes gates used by United Airlines and Delta Air Lines and a new baggage claim area, will be ready in October 2014, just in time for the Wright Amendment restrictions to end.

“On Oct. 13, [2014], we will have guests to our new home so it was in our interest to spend the money to upgrade Love Field so people, when they came to our home, had a positive experience,” Ricks said.

Analysts say it’s a ‘nonevent’

Despite years of political arguments over the Wright Amendment, now that the repeal date is close, industry analysts say it will only minimally affect the region.

“Basically, American has locked up DFW and Southwest has locked up Love Field and in that sense nothing is going to change,” said Bud Weinstein, an economist at Southern Methodist University’s Cox School of Business.

Weinstein, who was a vocal critic of the Wright Amendment, argued in 2004 that the best way to boost competition for consumers would be to tear down Love Field and force Southwest to move to DFW. When the Wright Amendment restrictions go away next year, he doesn’t expect any new carriers to add service at Love since the industry has consolidated into fewer airlines.

Southwest has also grown its operations at other airports tremendously since the compromise was reached, leaving Love Field No. 8 among its top 10 airports by departures. Since Love Field will remain restricted on international service, the carrier has chosen to build its international operations out of Houston’s Hobby Airport as part of a $150 million renovation project there.

And with Love Field limited to 20 gates, it has little room for expansion. Analysts say it will continue to be dwarfed by DFW Airport, which serves more than 60 million passengers annually.

“It’s going to be a nonevent,” Boyd said. “Love Field is a secondary airport for the Metroplex and it’s always going to be.”

Andrea Ahles, 817-390-7631 Twitter: @Sky_Talk

Read more here: http://www.star-telegram.com/2013/10/13/5243721/in-one-year-wright-amendment-flight.html#storylink=cpy
 

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