American, Southwest End Love Field Feud

slushie

Still here.
http://news.airwise.com


June 16, 2006 American Airlines and Southwest Airlines have agreed to end a long-running and bitter turf war that imposes restrictions on Southwest's flights from its home airport, Dallas Love Field, to most major cities, the airlines said on Thursday.
The carriers and local officials in Dallas and Fort Worth, Texas, struck a tentative compromise aimed at prompting congressional action to phase out a 27 year old law that imposes limits on direct Southwest flights from Love Field to several nearby states.
Southwest has sought a repeal of the law, the Wright Amendment, which was put in place to spur growth of Dallas-Fort Worth Airport, American's hub located just miles from Love Field.
As Southwest has grown from a successful regional carrier two decades ago to a national low-cost power, the effect of the restrictions have become more pronounced. Southwest has expanded operations in key markets and also faces stiffer competition from both traditional low-cost rivals and from bigger airlines that are transforming operations to be more nimble and efficient.
American long resisted the change and prevailed in a fierce lobbying effort last year when Congress did not take up Southwest's cause.
But Congress has been chipping away at the Wright Amendment, allowing exemptions for certain states, and key lawmakers said recently they would renew efforts for a full repeal of the measure.
Both carriers, in the end, believed it was better to craft a blueprint for Congress to consider than leave the details up to lawmakers. Key members of Congress wanted the parties to agree to a plan before they would consider a repeal.
"We're trading certainty for uncertainty with this agreement, and it will allow us to plan for the future," said Gary Kelly, Southwest's chief executive.
"The agreement includes terms to ensure its enforcement. Considering all the possible options, we believe this to be a pragmatic solution," Gerard Arpey, American's chairman and chief executive.
The agreement, if approved by Dallas and Fort Worth city councils and embraced by Congress, would limit long-haul flights from Love Field for another eight years.
In exchange, Southwest would immediately be able to sell single tickets for connecting flights out of Dallas, instead of continuing to force customers to buy two tickets -- one for each flight.
Love Field would be modernized but available gates would shrink from 32 to 20 four years after repeal of the Wright Amendment. Southwest would get 16 gates, up from 14 now. American would get two -- down from three now. Continental Airlines would continue to occupy two gates.

(Reuters)
 
WOW :eek: :eek: :eek: . I didn't think they'd ever find an agreement on this. Of course, it's smart of both parties to keep it out of the Politicians hands!
 
About time this thing goes away. Too bad it wasn't just an immediate repeal, but at least this gives time for SWA to plan ahead.
 
Southwest rolled over and gave up. That's all there is to it. The only substantive change is that we got through ticketing--Big Whoopee! So now I can fly on SWA from Dallas Love to Las Vegas and not have to get off the plane when they stop over in LBB or ELP. I still can't fly non-stop.

The Dallas consumer got screwed in this one. Herb and SWA got Dallasites all excited about dumping the Wright Amendment and then endoresed a mayoral agreement that while it does water down Wright (but only a sprinkle), it gives no real change or improvement to Love passengers. What DAL consumers really want it is to be able to let competitive, market forces determine which airline, which airport and how much they will pay to fly non-stop to any domestic destination.

All we can do now is hope that Congress does the right thing and ignores this silly agreement and dumps the Wright Amendment anyway. Unfortunately, with SWA capitulating and giving up the fight, don't expect that to happen this time around.

We'll just have to wait 8 more years (per the agreement) before we play this game all over again.

On a side note, Continental has got to be pleased... they get to keep their two DAL gates and they get through ticketing. Currently they are flying very full 50 seat RJ's out of DAL to IAH to get around the through ticketing issue. Now they should be able to bring in 737's and allow them to connect in IAH.
 
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