While national site selectors continue to like Greater Dallas, and Texas in general for a host of economic reasons, the issue that's dominating the local political landscape right now is the "air war" taking place between Southwest and American, and by virtue of that, between Love Field and DFW.
      In an interview with Site Selection, Southwest CEO Gary Kelly says that the main reason Congress should repeal the Wright Amendment (named for former Texas Congressman and U.S. House Speaker Jim Wright) is because "it would be good for consumers."
      "With Delta abandoning DFW and de-hubbing Dallas, the North Texas market is dominated by one carrier and it is manifested in very high air fares," says Kelly. "DFW Airport provided us information showing us that air fares there are very high. That provides Southwest an opportunity to expand air service. The only reason we can't provide air service is the Wright Amendment."
      Dallas-based Southwest, by choice, bases all of its Dallas area flights out of Love Field. The company contends that it should not be forced by statute to base flights out of the larger DFW Airport, where Southwest argues it would be more costly and less conducive to the company's business model.
      DFW, for its part, has offered Southwest a $22-million incentives package to use gates at the international airport and has even offered the discount carrier free rent of the terminals. Southwest is not interested.
      The Wright Amendment is a marketing restriction," says Kelly. "It is unique in the world. We not only cannot fly to the states beyond the seven states outlined in the Wright Amendment; we can't even market our service to states beyond that perimeter. Most metro areas have multiple airports. Most large metro areas have the more boutique airports, like Love Field, that are not built for large-scale operations but do provide consumer choice. They do help keep airports in check. Competition is always good."
      Kelly cited a recent study commissioned by Southwest to bolster his case. The report, issued June 7 by the Campbell-Hill Aviation Group Inc., estimates that the impact of passengers having to pay the higher fares at DFW is the loss of 3.7 million passengers per year for the Greater Dallas market.
      "If the fares were lowered just for service to 15 air-pair markets beyond the seven-state perimeter, that would add 3.7 million passengers and would result in a $700-million cost reduction for air passengers and an overall $1.7 billion economic benefit to the region," Kelly says. "The total Wright Amendment burden on passengers, North Texas and the cities beyond the seven-state perimeter exceeds $4 billion per year."