Including an AMAZING change of stance from Kay Bailey Hutchison
Airline sets course for repeal of Wright
Southwest chief ends neutrality; others hail law protecting D/FW
10:33 PM CST on Friday, November 12, 2004
By ERIC TORBENSON, SUZANNE MARTA and VIKAS BAJAJ / The Dallas Morning News
For Southwest Airlines, the Wright amendment is now officially the wrong amendment.
On Friday, the carrier's chief executive attacked the restrictions that keep Southwest from flying beyond Texas and seven nearby states from Dallas Love Field.
"It is anti-competitive," said Southwest chief executive Gary Kelly, speaking to a breakfast of business executives.
The facility it was designed to protect, Dallas/Fort Worth International Airport, no longer needs the law because it has become a powerful "fortress hub" for American Airlines, he said.
Within hours, Mr. Kelly's remarks stirred up a maelstrom of dissent from American, D/FW Airport, the cities of Fort Worth and Dallas and some area legislators.
"The Wright amendment made sense when it was passed and it makes sense now," Fort Worth-based American said in a prepared statement.
Kevin Cox, D/FW Airport's chief operating officer, said a repeal "would be detrimental, not only to this airport, but to the entire North Texas economy."
D/FW has recently taken on $2.7 billion in debt to finance its expansion, Mr. Cox noted, and it's losing its Delta Air Lines hub in January.
Still, the lure of cheaper, long-haul flights from Love Field holds a strong appeal to consumers and officials in some other states.
"I'd fly more often if ticket prices were lower," said Daniel Vammen, a sophomore at Texas Christian University, who was chagrined he had to pay $357 to fly between Nashville and D/FW.
And some area legislators said they welcomed a discussion about whether the Wright amendment had outlived its usefulness.
"Maybe it is time to do away with the Wright amendment," said Sen. Kay Bailey Hutchison. "I think it's definitely time to look at the financial picture at D/FW. ... I would love to see the convenience of it if they can open Love Field."
Dallas-based Southwest, the nation's largest discount airline, has for years professed "passionate neutrality" over the highly charged regional issue.
But now, Mr. Kelly said, Southwest wants to expand its schedule from the Dallas area. And after some study, the carrier says it is ruling out launching new long-haul service at D/FW.
"I am now not saying we are passionately neutral about it -- that is off the table," Mr. Kelly told the North Dallas Chamber of Commerce. He declined to say what Southwest would do about its new stance.
Political experts and industry observers said that only Congress can change the status quo.
Named after former U.S. House of Representatives speaker Jim Wright, the 1979 law was a compromise between Dallas, Fort Worth and the airlines to foster the growth of a then-fledgling D/FW Airport.
Over the years, the Wright amendment has survived numerous legal and political challenges, most recently when now-defunct Legend Airlines sought to begin long-haul service from Love Field in the late 1990s.
But this latest battle could turn out differently because Southwest can muster a much more effective political coalition, observers say.
"They are one of the few profitable airlines, so they have a lot of credibility," said Martin Rose, a Dallas lawyer who has represented airlines in past Wright disputes.
Financially, Southwest is the strongest airline in the industry, thanks to its low-cost business model.
The biggest beneficiary of the Wright amendment, American, is the world's largest carrier. But it's been losing money, struggling to adapt to a landscape increasingly shaped by discounters.
Experts said congressional leaders often look to a state's delegation for guidance when crafting legislation on local issues.
But they said proposals to change the Wright amendment would divide the region's lawmakers.
"The timing on this is really bad," said Rep. Kay Granger, R-Fort Worth.
Ms. Granger, a former D/FW Airport board member, said D/FW is under stress because of the recent decision by Delta Air Lines to close its Dallas hub in January.
U.S. Rep. Joe Barton, R-Ennis, said he sees no reason to change the Wright amendment. "The current system remains a very workable one," he said.
But U.S. Rep. Pete Sessions, R-Dallas, said he's willing to reconsider the Love Field issue.
Sen. John Cornyn declined to comment. A spokesman said the senator needed to study the issue.
Dallas Mayor Laura Miller said in an interview Thursday that the "Wright amendment is a sacred cow that's not going away anytime soon." A spokesman said Friday the mayor felt no differently after Mr. Kelly's remarks.
The city of Fort Worth reiterated its support of the amendment.
"Strong competition for more than regional activity out of Love Field could be detrimental to D/FW Airport," said Fort Worth City Manager Charles Boswell.
D/FW's Mr. Cox said the airport would do all it could to defeat changes to the Wright amendment.
Mr. Cox said the Wright amendment doesn't hurt airfare competition.
"If everyone wants low-cost service and competition, then let's have it at the airport that everyone agreed to," Mr. Cox said. "Competition between airports won't get you lower cost service; competition among airlines will."
Still, a repeal effort could get support from cities that Southwest serves or those that are interested in attracting the low-cost leader, said Ed Faberman, executive director of the Air Carriers Association, a Washington-based trade group that represents smaller airlines.
"Members of Congress are hearing a little more from constituents who are raising the importance of being able to obtain that kind of service," he said. "It's not only an issue for Dallas."
In September, the congressional delegation from Tennessee proposed allowing service between Love Field and that state, initiating the current debate.
Some economists have long maintained that a repeal of the Wright amendment would cause transitional but not long-term pain for D/FW.
"The bottom line is that more people are going to be flying," said Ray Perryman, a Waco-based economist, adding that D/FW would always be the dominant airport.
"I don't see any threat to D/FW if the Wright amendment went away. Love Field doesn't have the infrastructure, and it doesn't have the space to build the infrastructure."
Staff writers Robert Dodge in Washington and Tony Hartzel in Dallas contributed to this report.
Airline sets course for repeal of Wright
Southwest chief ends neutrality; others hail law protecting D/FW
10:33 PM CST on Friday, November 12, 2004
By ERIC TORBENSON, SUZANNE MARTA and VIKAS BAJAJ / The Dallas Morning News
For Southwest Airlines, the Wright amendment is now officially the wrong amendment.
On Friday, the carrier's chief executive attacked the restrictions that keep Southwest from flying beyond Texas and seven nearby states from Dallas Love Field.
"It is anti-competitive," said Southwest chief executive Gary Kelly, speaking to a breakfast of business executives.
The facility it was designed to protect, Dallas/Fort Worth International Airport, no longer needs the law because it has become a powerful "fortress hub" for American Airlines, he said.
Within hours, Mr. Kelly's remarks stirred up a maelstrom of dissent from American, D/FW Airport, the cities of Fort Worth and Dallas and some area legislators.
"The Wright amendment made sense when it was passed and it makes sense now," Fort Worth-based American said in a prepared statement.
Kevin Cox, D/FW Airport's chief operating officer, said a repeal "would be detrimental, not only to this airport, but to the entire North Texas economy."
D/FW has recently taken on $2.7 billion in debt to finance its expansion, Mr. Cox noted, and it's losing its Delta Air Lines hub in January.
Still, the lure of cheaper, long-haul flights from Love Field holds a strong appeal to consumers and officials in some other states.
"I'd fly more often if ticket prices were lower," said Daniel Vammen, a sophomore at Texas Christian University, who was chagrined he had to pay $357 to fly between Nashville and D/FW.
And some area legislators said they welcomed a discussion about whether the Wright amendment had outlived its usefulness.
"Maybe it is time to do away with the Wright amendment," said Sen. Kay Bailey Hutchison. "I think it's definitely time to look at the financial picture at D/FW. ... I would love to see the convenience of it if they can open Love Field."
Dallas-based Southwest, the nation's largest discount airline, has for years professed "passionate neutrality" over the highly charged regional issue.
But now, Mr. Kelly said, Southwest wants to expand its schedule from the Dallas area. And after some study, the carrier says it is ruling out launching new long-haul service at D/FW.
"I am now not saying we are passionately neutral about it -- that is off the table," Mr. Kelly told the North Dallas Chamber of Commerce. He declined to say what Southwest would do about its new stance.
Political experts and industry observers said that only Congress can change the status quo.
Named after former U.S. House of Representatives speaker Jim Wright, the 1979 law was a compromise between Dallas, Fort Worth and the airlines to foster the growth of a then-fledgling D/FW Airport.
Over the years, the Wright amendment has survived numerous legal and political challenges, most recently when now-defunct Legend Airlines sought to begin long-haul service from Love Field in the late 1990s.
But this latest battle could turn out differently because Southwest can muster a much more effective political coalition, observers say.
"They are one of the few profitable airlines, so they have a lot of credibility," said Martin Rose, a Dallas lawyer who has represented airlines in past Wright disputes.
Financially, Southwest is the strongest airline in the industry, thanks to its low-cost business model.
The biggest beneficiary of the Wright amendment, American, is the world's largest carrier. But it's been losing money, struggling to adapt to a landscape increasingly shaped by discounters.
Experts said congressional leaders often look to a state's delegation for guidance when crafting legislation on local issues.
But they said proposals to change the Wright amendment would divide the region's lawmakers.
"The timing on this is really bad," said Rep. Kay Granger, R-Fort Worth.
Ms. Granger, a former D/FW Airport board member, said D/FW is under stress because of the recent decision by Delta Air Lines to close its Dallas hub in January.
U.S. Rep. Joe Barton, R-Ennis, said he sees no reason to change the Wright amendment. "The current system remains a very workable one," he said.
But U.S. Rep. Pete Sessions, R-Dallas, said he's willing to reconsider the Love Field issue.
Sen. John Cornyn declined to comment. A spokesman said the senator needed to study the issue.
Dallas Mayor Laura Miller said in an interview Thursday that the "Wright amendment is a sacred cow that's not going away anytime soon." A spokesman said Friday the mayor felt no differently after Mr. Kelly's remarks.
The city of Fort Worth reiterated its support of the amendment.
"Strong competition for more than regional activity out of Love Field could be detrimental to D/FW Airport," said Fort Worth City Manager Charles Boswell.
D/FW's Mr. Cox said the airport would do all it could to defeat changes to the Wright amendment.
Mr. Cox said the Wright amendment doesn't hurt airfare competition.
"If everyone wants low-cost service and competition, then let's have it at the airport that everyone agreed to," Mr. Cox said. "Competition between airports won't get you lower cost service; competition among airlines will."
Still, a repeal effort could get support from cities that Southwest serves or those that are interested in attracting the low-cost leader, said Ed Faberman, executive director of the Air Carriers Association, a Washington-based trade group that represents smaller airlines.
"Members of Congress are hearing a little more from constituents who are raising the importance of being able to obtain that kind of service," he said. "It's not only an issue for Dallas."
In September, the congressional delegation from Tennessee proposed allowing service between Love Field and that state, initiating the current debate.
Some economists have long maintained that a repeal of the Wright amendment would cause transitional but not long-term pain for D/FW.
"The bottom line is that more people are going to be flying," said Ray Perryman, a Waco-based economist, adding that D/FW would always be the dominant airport.
"I don't see any threat to D/FW if the Wright amendment went away. Love Field doesn't have the infrastructure, and it doesn't have the space to build the infrastructure."
Staff writers Robert Dodge in Washington and Tony Hartzel in Dallas contributed to this report.