Story in Reuters...
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)
:huh:
So... this really irritates me. Look at the first sentence in the 4th paragraph:
"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."
So what?!? What has that got to do with the decision - by Dallas and Ft. Worth - to make DFW "the" airport? It's not AA's fault... it's not Ft. Worth's fault... for that matter, it's not Dallas' fault that SWA is feeling the effects of the restrictions.
That SWA in its own "aw, golly, shucks" type of arrogance - disguised as "friendliness" - chose to make a stand (among other things, threaten to leave Dallas at the prospect of not getting what they want) and stay at Love is their own fault. I'm really sick of the media playing SWA as the injured party here. The cities of Dallas and Ft. Worth have a contract defining the use of Love (and the other smaller airports in the Metroplex)... but, just like an athlete who has one good season and then insists on renegotiating his contract, apparently a contract doesn't mean anything these days.
Also in the 4th paragraph -
"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."
So somehow this becomes AA's responsibility to take care of. Hey, SWA: If you don't want these problems, don't expand! And if you don't want majors to trim their operations so they are more, uh, "competetive", tough! What's good for the goose is good for the gander... you guys have used the wonderful blessing of "Free Enterprise"... if you don't like it when someone else does the same... well, just get over your arrogant selves.
Look at the last paragraph... SWA goes from 14 to 16 gates? And AA goes from 3 to 2 gates??? All the while, Gary Kelly cries and moans about the Wright Amendment being a non-competitive restriction and it's in the best interests of the public to have it repealed. But somehow, SWA winding up with a bigger piece - bigger in terms of percentage and in terms of raw number - is in the best interest of the public? How does that make for better competition? Sounds like it will make for a better SWA bottom line.
Ok, so... sorry. I know I've rambled a bit here, and my thoughts aren't perfectly lucid, and I don't know "all the facts" (like that's got anything to do with life). This just really hacks me off. SWA has this position in the public's mind as to how wonderful and compassionate and magnanimous they are... well, they aren't. They are blood-thirsty wolves, just like everyone else. But because of their perceived image, they can get away with crap like this, and look like heros.
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)
:huh:
So... this really irritates me. Look at the first sentence in the 4th paragraph:
"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."
So what?!? What has that got to do with the decision - by Dallas and Ft. Worth - to make DFW "the" airport? It's not AA's fault... it's not Ft. Worth's fault... for that matter, it's not Dallas' fault that SWA is feeling the effects of the restrictions.
That SWA in its own "aw, golly, shucks" type of arrogance - disguised as "friendliness" - chose to make a stand (among other things, threaten to leave Dallas at the prospect of not getting what they want) and stay at Love is their own fault. I'm really sick of the media playing SWA as the injured party here. The cities of Dallas and Ft. Worth have a contract defining the use of Love (and the other smaller airports in the Metroplex)... but, just like an athlete who has one good season and then insists on renegotiating his contract, apparently a contract doesn't mean anything these days.
Also in the 4th paragraph -
"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."
So somehow this becomes AA's responsibility to take care of. Hey, SWA: If you don't want these problems, don't expand! And if you don't want majors to trim their operations so they are more, uh, "competetive", tough! What's good for the goose is good for the gander... you guys have used the wonderful blessing of "Free Enterprise"... if you don't like it when someone else does the same... well, just get over your arrogant selves.
Look at the last paragraph... SWA goes from 14 to 16 gates? And AA goes from 3 to 2 gates??? All the while, Gary Kelly cries and moans about the Wright Amendment being a non-competitive restriction and it's in the best interests of the public to have it repealed. But somehow, SWA winding up with a bigger piece - bigger in terms of percentage and in terms of raw number - is in the best interest of the public? How does that make for better competition? Sounds like it will make for a better SWA bottom line.
Ok, so... sorry. I know I've rambled a bit here, and my thoughts aren't perfectly lucid, and I don't know "all the facts" (like that's got anything to do with life). This just really hacks me off. SWA has this position in the public's mind as to how wonderful and compassionate and magnanimous they are... well, they aren't. They are blood-thirsty wolves, just like everyone else. But because of their perceived image, they can get away with crap like this, and look like heros.
