Missouri, at the stroke of President Bushs' pen, has be exempt from the WA. The House and Senate passed the $137.6 billion Transportation Appropriations Bill on Friday, which includes the addition of Missouri to the Wright Amendment states. As soon as President Bush signs the bill, expected to happen in the next few days, it will become law, and Southwest can begin flying to Missouri from Dallas Love Field.
WELCOME MISSOURI!
- Thread starter skyguy25
- Start date
coolflyingfool
Veteran
- Aug 20, 2002
- 1,192
- 1
I would expect that SWA will add MCI and STL to the DAL flight schedule by early March at the latest. just my thoughts.............
corl737
Veteran
- Jun 13, 2005
- 565
- 6
As I've had it explained to me by the SWA folks:
Under the Shelby Amendment, the provisions still exist that prohibit through ticketing past those cities. There simply isn't the demand for DAL-> JAN or BHM flights. If you could offer DAL->BHM->??? you could pick up additional passengers that would make the service viable.
Unlike JAN or BHM, MCI and STL are both adequate O&D markets in their own right.
corl737
Veteran
- Jun 13, 2005
- 565
- 6
New info projecting SWA's St Louis presence:
According to this article in the St. Louis Post-Dispatch, SWA could operate up to 11 flights/day between STL and Love Field.
---------------------------------------------------
Opening up Dallas skies could buffet American
By Tim McLaughlin
ST. LOUIS POST-DISPATCH
Monday, Nov. 28 2005
American Airlines could lose up to $115 million a year in revenue on routes between Dallas and Missouri's two largest airports if President George W. Bush signs into a law an exemption that would allow Southwest Airlines to compete after 26 years of restrictions, an aerospace analyst said Monday.
Lambert Field travelers likely would see that as good news. If Southwest were allowed to operate direct flights between St. Louis and its home base at Dallas Love Field, passengers would see lower ticket prices for one of the most frequent destinations from Lambert.
Roger King, an analyst at independent research firm CreditSights Inc., said Monday that competition from Southwest would stimulate passenger traffic by 30 percent on flights between Dallas and the two Missouri cities, St. Louis and Kansas City. In addition, Southwest would pick up $80 million a year in revenue while American's revenue would drop to $163 million from $278 million in those two markets.
He estimated Southwest could capture 40 percent of the market on flights between Dallas and Lambert and generate $45 million a year in revenue. American would control the rest of the market, King said, but its annual revenue in St. Louis would drop to $84 million from an estimated $141 million when it didn't have competition on that route.
Southwest spokeswoman Brandy King said any new flights from Lambert to Love would be incremental gains to its current flight schedule in St. Louis. CreditSights' King estimated Southwest could operate about 11 daily nonstop flights between Love and St. Louis.
American currently holds a monopoly on 14 daily nonstop flights between its megahub at Dallas/Fort Worth International Airport and Lambert. Southwest refuses to fly out of DFW, and a 1979 federal law prevents the low-cost carrier from flying directly to most U.S. cities from Love.
That could change as soon as this week if the president signs a transportation spending bill that exempts Missouri from federal restrictions known as the Wright Amendment. Authored by Sen. Christopher "Kit" Bond, R-Mo., the exemption would allow Missouri to join Texas and seven other states that can receive direct service from Love.
American sees that as a threat, because most people who fly out of DFW pass by Love to get there.
King said any lost revenue on American's flights between Dallas and Missouri's two largest airports is "chump change." After all, American's 2005 revenue will top $20 billion.
American continues to fight hard to preserve the rest of the Wright Amendment. And it is pursuing plans to operate some gates out of Love, where Southwest is the dominant carrier.
"We are still studying our options," American spokeswoman Mary Frances Fagan said. "There will be a business need to move flights to Love Field."
She also cast doubt on King's estimate of lost revenue on flights between DFW and the two Missouri airports.
"I'm not sure where (CreditSights) is getting their information," Fagan said. "They have not spoken with our management team."
In a study released earlier this year, Campbell-Hill Aviation Group Inc. said airline passengers in 15 markets, including St. Louis, would save nearly $700 million a year if Southwest could compete from Love Field against American.
King said he doesn't believe American can compete against Southwest at Love Field and turn a profit. He said their respective operating costs "are not even in the same ZIP code."
"Losing money on two fronts is not in (American) management's game plan," King said.
---------------------------------------------------
_____________________________________________________________________
According to this article in the St. Louis Post-Dispatch, SWA could operate up to 11 flights/day between STL and Love Field.
---------------------------------------------------
Opening up Dallas skies could buffet American
By Tim McLaughlin
ST. LOUIS POST-DISPATCH
Monday, Nov. 28 2005
American Airlines could lose up to $115 million a year in revenue on routes between Dallas and Missouri's two largest airports if President George W. Bush signs into a law an exemption that would allow Southwest Airlines to compete after 26 years of restrictions, an aerospace analyst said Monday.
Lambert Field travelers likely would see that as good news. If Southwest were allowed to operate direct flights between St. Louis and its home base at Dallas Love Field, passengers would see lower ticket prices for one of the most frequent destinations from Lambert.
Roger King, an analyst at independent research firm CreditSights Inc., said Monday that competition from Southwest would stimulate passenger traffic by 30 percent on flights between Dallas and the two Missouri cities, St. Louis and Kansas City. In addition, Southwest would pick up $80 million a year in revenue while American's revenue would drop to $163 million from $278 million in those two markets.
He estimated Southwest could capture 40 percent of the market on flights between Dallas and Lambert and generate $45 million a year in revenue. American would control the rest of the market, King said, but its annual revenue in St. Louis would drop to $84 million from an estimated $141 million when it didn't have competition on that route.
Southwest spokeswoman Brandy King said any new flights from Lambert to Love would be incremental gains to its current flight schedule in St. Louis. CreditSights' King estimated Southwest could operate about 11 daily nonstop flights between Love and St. Louis.
American currently holds a monopoly on 14 daily nonstop flights between its megahub at Dallas/Fort Worth International Airport and Lambert. Southwest refuses to fly out of DFW, and a 1979 federal law prevents the low-cost carrier from flying directly to most U.S. cities from Love.
That could change as soon as this week if the president signs a transportation spending bill that exempts Missouri from federal restrictions known as the Wright Amendment. Authored by Sen. Christopher "Kit" Bond, R-Mo., the exemption would allow Missouri to join Texas and seven other states that can receive direct service from Love.
American sees that as a threat, because most people who fly out of DFW pass by Love to get there.
King said any lost revenue on American's flights between Dallas and Missouri's two largest airports is "chump change." After all, American's 2005 revenue will top $20 billion.
American continues to fight hard to preserve the rest of the Wright Amendment. And it is pursuing plans to operate some gates out of Love, where Southwest is the dominant carrier.
"We are still studying our options," American spokeswoman Mary Frances Fagan said. "There will be a business need to move flights to Love Field."
She also cast doubt on King's estimate of lost revenue on flights between DFW and the two Missouri airports.
"I'm not sure where (CreditSights) is getting their information," Fagan said. "They have not spoken with our management team."
In a study released earlier this year, Campbell-Hill Aviation Group Inc. said airline passengers in 15 markets, including St. Louis, would save nearly $700 million a year if Southwest could compete from Love Field against American.
King said he doesn't believe American can compete against Southwest at Love Field and turn a profit. He said their respective operating costs "are not even in the same ZIP code."
"Losing money on two fronts is not in (American) management's game plan," King said.
---------------------------------------------------
_____________________________________________________________________
I'mRayFlyMe
Advanced
Similar threads
