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Posted on 11/11/2005 5:14:27 PM PST by Paleo Conservative
WASHINGTON, Nov 10 (Reuters) - Congressional negotiators agreed on Thursday to exempt Missouri from restrictions on direct air service from Dallas Love Field to several states, an issue that has Texas rivals' Southwest Airlines and American Airlines locked in a bitter fight.
House-Senate lawmakers hammering out details of a spending bill for transportation and treasury programs agreed to the Missouri exemption to a 26-year-old law called the Wright Amendment.
The exemption was sponsored by Sen. Christopher Bond, a Missouri Republican. Congress has approved similar waivers for other states in the past.
Budget powerhouse Southwest wants the Wright Amendment repealed to broaden service, while its Texas rival No. 1 American Airlines is fighting to keep it in place to preserve its customer base and huge investment at nearby Dallas-Fort Worth airport.
"In this case the dominant player (American) is being protected from the little guy," Bond told a Senate hearing on the matter earlier in the day.
Executives from both carriers appealed to Senate lawmakers but there appears little appetite for congressional intervention this year on the question of repeal even though a proposal to do so has some powerful sponsors, some senators indicated.
Sen. Kay Bailey Hutchison, a Texas Republican, suggested the matter be settled by the airlines and local officials, rather than through federal legislation.
"This puts Congress in a very bad situation," Hutchison said.
Pushed through in 1979 by then House of Representatives majority leader, Texas Democrat Jim Wright, the law restricts direct service from Love Field to other cities in Texas and several nearby states. It was intended to boost the prospects for then fledgling DFW.
American's chief executive Gerard Arpey told the Senate Commerce subcommittee on aviation that he would have to scale back operations at DFW and shift some service to much smaller Love Field, if the law were repealed.
Southwest founder and chairman Herb Kelleher said lifting the statute was would open Love Field -- and Dallas -- to more competition.
"DFW has gotten so big I'm surprised its not been implicated in a steroid scandal," Kelleher joked at the hearing.
But Arpey said Southwest has thrived for 30 years and expressed frustration with its sudden demand to repeal the law that he claims would be a windfall for Southwest because Love Field is closer to downtown Dallas than DFW.
"This is eating up time, money and energy we would like to devote to running our business," Arpey said.
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As an AMR stockholder, I must recluse myself from this dicussion.
Pretty cagey for Bond to say that, considering AA has a mini hub in STL. But Im pleased. I heard AA is parking MD-80s and will beging furloughing after the first of the year. Thats just a rumor, and I hope its not true. But if it is true, there is no way a company who is laying off pilots and employees should be restricting someone elses growth..
"This puts Congress in a very bad situation," Hutchison said.
Pushed through in 1979 by then House of Representatives majority leader, Texas Democrat Jim Wright, the law restricts direct service from Love Field to other cities in Texas and several nearby states. It was intended to boost the prospects for then fledgling DFW.
How can the airlines and local officials work it out if it's against federal law to "work it out".
Bad situation? Just do your job, Senator. Say Yes or No to repealing of the Wright Amendment and take the consequences either way.
I doubt AA has many fans in Missouri. A lot of folks took a hit when AA took over TWA.
This will get SWA two metro markets from Dallas. Tennessee should probably be next on the list.
Southwest just moved into the Denver market starting Jan 1, and rates from Phoenix to Denver (a short hop) that were previously $150+ each way, will be premiering at $59 one way, thanks to Southwest Airlines! Frontier Airlines stock dropped bigtime on the announcement! Go Southwest! -- 'cause where Southwest goes, low prices and competition come!
Wright is Wrong!
I hope you don't bite!
Thats no funny, I live in Missouri! (I'm an engineer. I can't spell worth shet).
You should have seen the yechy pictures of bites from that sucker when I was doing the image search
*bbrrr*
All I have to do is look at the scar on my leg! LOL
Why is DFW so great and important? If Dallas Love would be incapable of handling the traffic load without DFW, competition for slots there would drive up prices enough to make DFW worthwhile. But if Dallas Love could handle the traffic, DFW would seem a waste of money.
I know all about them. I have to turn all my clothes inside out when I change my wardrobe from summer to winter and vice versa, just to make sure one of those mothers didn't make a home there.
These large cities have at least 2 airports without a Wright-type amendment. New York, Chicago, LA, Houston, SF/Oak, Wash D.C. None of these airports are threatened.
I live in Dallas...DFW represents big, overbloated govt. Love Field runs lean and mean plus easy access in and out. American Airlines has lots of snooty employees...not so with SouthWest....very nice and friendly and no penalty fees to change flights. Screw the Wright Amendment. DFW airport will survive just fine. SET LOVE FREE.
"Sen. Kay Bailey Hutchison, a Texas Republican, suggested the matter be settled by the airlines and local officials, rather than through federal legislation.
"This puts Congress in a very bad situation," Hutchison said. "
Translation:
AA is one of my largest contributors, so bug off SWA.
One thing I can't stand more than a socialist Democrat is a anit-capitalist Republican. At least you can call out the Democrat because they show their cards.
Asking Congress to make any decision at all on anything seems to put them in "a very bad situation", Senator.
I'm hoping the next time her term is up she has real competition so we can put somebody with backbone in the Senate....
like Jeb Hensarling.
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