TEXAS SPOTLIGHT
Battling Bill:
Close Love Field
Close Love Field
Needless to say, executives at Fort Worth-based American Airlines don't feel the same way as Kelly.
"The Wright Amendment helps the North Texas economy — undoubtedly," Tim Wagner, corporate spokesman for American, tells Site Selection. "This law is in the best economic interests of the region. Some 20 different airlines operate at DFW; there are only two at Love Field, Continental Regional and Southwest. The fact is that, despite what Southwest says, there is competition at DFW, and air fares have fallen considerably at DFW. From the third quarter of 2003 to the third quarter of 2004, the average fare at DFW dropped 24 percent."
Wagner also disputes one of Southwest's main contentions: that the Wright Amendment was passed in 1979, the same year American moved its headquarters from New York to Fort Worth, in order to protect American from competition."When DFW was built, we were only the third or fourth largest carrier at the airport," says Wagner. "The Wright Amendment was not designed to protect American Airlines. The benefits to North Texas are enormous: more flights per capita, more national and international destinations, and more competition from carriers. America West, Frontier, ATA and AirTran all offer service to DFW from a variety of airports around the country."
Wagner cites another study to back up American's case. On May 10, officials from DFW, the North Texas Commission and Boston-based Simat, Helliesen & Eichner Inc. released an economic analysis on the potential impacts of repealing the Wright Amendment.
The study concluded that repealing Wright would cost DFW some 204 flights per day, 21 million passengers annually and reduce DFW traffic to levels of 1985. The study further predicted that DFW would not recover for nearly two decades and, in the meantime, "travel options for North Texas travelers would be severely reduced, and millions of connecting passengers lost to other airports."
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The study went on to suggest that, if Wright were repealed, flights at Love Field could "easily double and possibly triple, leading to strain on its aging infrastructure and a dramatic increase in automobile traffic."
The report even trotted out an unlikely, albeit unwitting, ally: Southwest Airlines Chairman Herb Kelleher. Citing an old Kelleher quote from the past — "there is no city in the United States that has two full-fledged hubs competing against one another successfully" — the report sought to make the case that even Southwest's founder considered repeal of the Wright Amendment as "unhealthy."
"The study provides further evidence that repealing the Wright Amendment would be a devastating economic blow to the entire North Texas region," said Kevin Cox, COO at DFW. "Repealing the Wright Amendment not only means a huge loss of air traffic; it means a loss of jobs, convention business and economic growth. We need competition between airlines, not airports that are a mere eight miles [13 km.] apart."
American is even saying positive things about a proposed bill that would shut down Love Field altogether. The True Competition Act, introduced by U.S. Sens. Jim Inhofe of Oklahoma and Tom Harkin of Iowa, would end all air passenger service at Love Field.
Stopping just short of saying that American endorses this legislation, Wagner said, "We are very appreciative of Sens. Inhofe and Harkin introducing this bill. We believe it appropriately broadens the debate over the Wright Amendment. It is as reasonable to look at closing Love Field as it is to look at opening Love Field to more flights."
American officials also have begun telling small communities, such as Waco, that they may lose highly prized air service if Love Field is opened to long-haul flights.One company that's keeping a close eye on this issue is Orlando-based AirTran Airways. AirTran officials said recently that if the Wright Amendment were lifted, the airline would explore flying into Love Field, while still serving DFW.
Love Field's location near downtown Dallas could be an advantage for AirTran, the company said. AirTran's main hub is based at Atlanta's Hartsfield-Jackson International Airport.
