Mayor's Agreement on Wright

According to the Dallas and Ft. Worth newspapers, a news conference is scheduled for noon today (Thursday, 6/15) to announce the Wright Amendment compromise solution. After more negotiations last night, the result is that DAL would be limited to 20 gates, 16 for WN, 2 for CO and 2 for AA. Through ticketing would be permitted immediately, but no non-stop flights beyond the current WA perimeter would be allowed for 8 years (reduced from the previously announced 9 years).

Of course none of this is binding since only Congress can repeal or amend the WA, but since it seems everyone locally is on board with this latest agreement including WN and AA, it should carry a lot of weight.
 
I wonder if they have worked out who has to give up gates if another airline wants to come in there--particularly once DAL-LAX and DAL-LGA/JFK/EWR flights are allowed?

There's still that other pesky Federal law that says gates must be made available to any airline that wants to come into an airport supported by Federal funds.
 
I still don't get why, if gate space is at a premium, the one sticking point of the proposal seems to be to tear down Legend's old gates. This is exactly what AMR is pushing for b/c then that makes a case against WN. Why not tear down terminals C and E at DFW as well?
 
DALLAS, June 15 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV) joined with the cities of Dallas and Fort Worth, American Airlines, and DFW International Airport today to announce all parties have agreed to seek the enactment of legislation to repeal the Wright Amendment.

At a news conference in Dallas today, Southwest Airlines Executive Chairman Herb Kelleher said:

"I have been involved in litigation, legislative struggles, and cuss fights over Love Field since 1972 -- a period of 34 years. The fact that Southwest Airlines stands here today -- stands here with Fort Worth, DFW Airport, American Airlines, and the City of Dallas indicates, I believe, that there must be hope for world peace. And peace -- and good will -- is the essence of our agreement -- not to mention certainty, stability, and tranquility. Under the perseverant Leadership of the Mayors of Dallas and Fort Worth -- who have literally worked day and night to bring this "Peace Pact" into being, our swords are truly being turned into plowshares. As with any difficult and complicated transaction, all sides, all parties, have been compelled to make sacrifices -- to yield on firmly held positions -- to moan and grown and agonize over decisions and mutual concessions. The only victor -- the only sure fire winner-from this agreement -- is the public -- the public citizen who will find it easier and far less expensive to travel to and from North Texas for business and personal reasons -- the citizens who will reap vast economic benefits in their communities from enhanced travel and tourism -- at a lower cost. On behalf of the public, we stand shoulder to shoulder with American Airlines, DFW Airport, and with the Mayors of Dallas and Fort Worth, in urging the City Councils of Dallas and Fort Worth -- and in urging the U.S. Congress -- to speedily approve the implementation of our agreement. Peace -- truly enduring peace -- be with all of you -- and with all of us."

The agreement is subject to Congress taking action on the proposed legislation.

"Today's historic agreement will benefit the public in terms of convenient connecting service and low fares from North Texas to the rest of the vast Southwest Airlines route network as soon as Congress acts," said Southwest CEO Gary Kelly. "We're trading certainty for uncertainty with this agreement, and it will allow us to plan for the future; it will allow us to reinvest in Dallas Love Field, our hometown airport; and it will allow us the opportunity to grow." http://www.southwest.com

SOURCE Southwest Airlines
06/15/2006
 
I still don't get why, if gate space is at a premium, the one sticking point of the proposal seems to be to tear down Legend's old gates. This is exactly what AMR is pushing for b/c then that makes a case against WN. Why not tear down terminals C and E at DFW as well?

Well, for starters, Terminals C & E are in full use at DFW. The Legend terminal is vacant. It's Terminal D, the former Delta terminal, that could be torn down. In fact, when Terminal E opened I was told by several DFW gate agents that everyone was tickled that gates 35-39 way down at the end of C were going to be closed. Didn't happen, they are just as much in use as ever evidently.

The Master Plan for Love Field assumed an in-full-use DFW which is no longer true. And, it was never intended to be fully implemented. There was no plan to open 30 gates at Love. That was just the maximum that would be allowed. Well, evidently plans change. Now there is going to be a maximum of 20 gates--which is one more than there are right now.

The city of Dallas knew that political heads would roll if Love went full-tilt boogie into a new incarnation as a major airport. Both the affluent neighborhoods to the immediate East and North--South? I still get turned around in Dallas--(Highland Park, Oak Lawn, et al) and the less affluent neighborhoods on the other side of Bachman Lake were not going to put up with the increased noise.

If other airlines want to start service at Love Field, then more than likely neither CO nor AA with only 2 gates each can be expected to give up gates. I still say that the Law of Unintended Consequences is going to kick in here. Other airlines are going to want to take advantage of that city of Dallas subsidy on landing fees.
 
I still say that the Law of Unintended Consequences is going to kick in here. Other airlines are going to want to take advantage of that city of Dallas subsidy on landing fees.
Perhaps, but if this agreement is codified as a new federal law, then it would probably trump any conflicting federal laws. But I'm sure there will more legal battles ahead when someone wants to challenge it. This is why I wish I became a lawyer - good job security. :lol:
 
Perhaps, but if this agreement is codified as a new federal law, then it would probably trump any conflicting federal laws. But I'm sure there will more legal battles ahead when someone wants to challenge it. This is why I wish I became a lawyer - good job security. :lol:
Regardless of this agreement, I don't think other airlines will sit by and allow a new law that would restrict their access to a Federally-funded airport. That's what I am talking about. Gates HAVE to be made available to whoever wants to come in there. And, if that means one or more current tenants have to give up one or more gates, so be it.

BTW, did you hear that they have started using lawyers instead of white mice in laboratory experiments? Two reasons: You don't get as attached to the lawyers, and they've discovered that there are some things that a white mouse just won't do. :lol:
 
DALLAS, June 15 /PRNewswire-FirstCall/ -- Southwest Airlines (NYSE: LUV) joined with the cities of Dallas and Fort Worth, American Airlines, and DFW International Airport today to announce all parties have agreed to seek the enactment of legislation to repeal the Wright Amendment.

At a news conference in Dallas today, Southwest Airlines Executive Chairman Herb Kelleher said:

"I have been involved in litigation, legislative struggles, and cuss fights over Love Field since 1972 -- a period of 34 years. The fact that Southwest Airlines stands here today -- stands here with Fort Worth, DFW Airport, American Airlines, and the City of Dallas indicates, I believe, that there must be hope for world peace. And peace -- and good will -- is the essence of our agreement -- not to mention certainty, stability, and tranquility. Under the perseverant Leadership of the Mayors of Dallas and Fort Worth -- who have literally worked day and night to bring this "Peace Pact" into being, our swords are truly being turned into plowshares. As with any difficult and complicated transaction, all sides, all parties, have been compelled to make sacrifices -- to yield on firmly held positions -- to moan and grown and agonize over decisions and mutual concessions. The only victor -- the only sure fire winner-from this agreement -- is the public -- the public citizen who will find it easier and far less expensive to travel to and from North Texas for business and personal reasons -- the citizens who will reap vast economic benefits in their communities from enhanced travel and tourism -- at a lower cost. On behalf of the public, we stand shoulder to shoulder with American Airlines, DFW Airport, and with the Mayors of Dallas and Fort Worth, in urging the City Councils of Dallas and Fort Worth -- and in urging the U.S. Congress -- to speedily approve the implementation of our agreement. Peace -- truly enduring peace -- be with all of you -- and with all of us."

The agreement is subject to Congress taking action on the proposed legislation.

"Today's historic agreement will benefit the public in terms of convenient connecting service and low fares from North Texas to the rest of the vast Southwest Airlines route network as soon as Congress acts," said Southwest CEO Gary Kelly. "We're trading certainty for uncertainty with this agreement, and it will allow us to plan for the future; it will allow us to reinvest in Dallas Love Field, our hometown airport; and it will allow us the opportunity to grow." http://www.southwest.com

SOURCE Southwest Airlines
06/15/2006


Herb and Jim -

True Giants among mere men.......
 
Well, for starters, Terminals C & E are in full use at DFW. The Legend terminal is vacant. It's Terminal D, the former Delta terminal, that could be torn down. In fact, when Terminal E opened I was told by several DFW gate agents that everyone was tickled that gates 35-39 way down at the end of C were going to be closed. Didn't happen, they are just as much in use as ever evidently.

The Master Plan for Love Field assumed an in-full-use DFW which is no longer true. And, it was never intended to be fully implemented. There was no plan to open 30 gates at Love. That was just the maximum that would be allowed. Well, evidently plans change. Now there is going to be a maximum of 20 gates--which is one more than there are right now.

The city of Dallas knew that political heads would roll if Love went full-tilt boogie into a new incarnation as a major airport. Both the affluent neighborhoods to the immediate East and North--South? I still get turned around in Dallas--(Highland Park, Oak Lawn, et al) and the less affluent neighborhoods on the other side of Bachman Lake were not going to put up with the increased noise.

If other airlines want to start service at Love Field, then more than likely neither CO nor AA with only 2 gates each can be expected to give up gates. I still say that the Law of Unintended Consequences is going to kick in here. Other airlines are going to want to take advantage of that city of Dallas subsidy on landing fees.

I know it doesn't quite come across in the tone of written text, but my statement to shut down two DFW terminals was pure sarcasm.

As far as gates go...25 = current, 32 = max, 20 = max under the new agreement. Opening up DAL has the potential (though not-so-much for another 8 years) to stimulate demand to the Dallas area but cutting gates is merely AA's way to ensure that they can say "WN has 80% of the gates" (rather than the 56% it currently controls) and win favor. Don't think this is an innocent deal. It reaks. 8 years before opening up DAL (through-ticketing will open some doors but we are moving from a period of hub/spoke to more point-to-point so who wants to connect or flow through OKC or MCI or LIT?) is just a stalling tactic. In the essence of "compromise", I understand, but what are we "compromising"? One side is being protected in its fortress hub...a protection offerred to no other airline and the other side is seeking to open up commerce and get rid of unfair protections.

So...this is where I differ from both WN and AA, I guess. This deal should have allowed more gates (at least up to 30-32) AND removed restrictions allowing carriers to serve Dallas without being swallowed up immediately by having to go into DFW. I don't like that all of the gates (again...5 fewer than what currently exist) have been divvied out but I know that makes AA/WN happy. Let's see if this even means anything for legislation, though. So two tenants agree on points of view of federal legislation...it still needs to be changed at the federal level...
 
I know it doesn't quite come across in the tone of written text, but my statement to shut down two DFW terminals was pure sarcasm.

As far as gates go...25 = current, 32 = max, 20 = max under the new agreement.
....

So...this is where I differ from both WN and AA, I guess. This deal should have allowed more gates (at least up to 30-32) AND removed restrictions allowing carriers to serve Dallas without being swallowed up immediately by having to go into DFW. I don't like that all of the gates (again...5 fewer than what currently exist) have been divvied out but I know that makes AA/WN happy. Let's see if this even means anything for legislation, though. So two tenants agree on points of view of federal legislation...it still needs to be changed at the federal level...

WN actually has long term leases on 21 of 32 gates (65.6%). There are 6 gates at DAL that are not under lease by any airline. In a way Southwest has control of 21 of 25 gates currently under lease at DAL. Even with a full repeal of the WA, without this agreement the existing Masterplan had a cap of 250 flights at DAL.

WN will stimulate plenty of demand with one/stop and connecting flights and connect the dots that break when trying to get to Dallas from a non-wright state.

Opening up DAL has the potential (though not-so-much for another 8 years) to stimulate demand to the Dallas area but cutting gates is merely AA's way to ensure that they can say "WN has 80% of the gates" (rather than the 56% it currently controls) and win favor. Don't think this is an innocent deal. It reaks. 8 years before opening up DAL (through-ticketing will open some doors but we are moving from a period of hub/spoke to more point-to-point so who wants to connect or flow through OKC or MCI or LIT?) is just a stalling tactic. In the essence of "compromise", I understand, but what are we "compromising"? One side is being protected in its fortress hub...a protection offerred to no other airline and the other side is seeking to open up commerce and get rid of unfair protections.

If WN truely was doing this strictly for the public and just to bring low fares to Dallas, they could have immediately moved all of their operations to DFW and started long haul flights.

I am surprised that the agreement did not have more of a phased in attitude towards adding states on maybe a 5-8 state per year basis.

I am not too surprised about the raising of fees at DAL and using those funds to improve the terminal/facilities and roads. From RFP's (Request For Proposals) to Ribbon Cutting, 8 years is about right for a new terminal facility. Especially since they will have to do the work in a phased process to allow the existing facility to be used until replacement facilities are completed.

FYI JIM - Terminal E (old 4E) is the ex-Delta Terminal. Terminal D (old 3W) is the new International Terminal. Terminal A (old 2E) and Terminal C (old 3E) are AA's terminal. Terminal B (old 2W) was the terminal with all other carriers, but now is Eagle/US (HP)/UA.

(Off topic) I have read on other web-sites that US(HP) will be moving to the old satellite terminal in E, but have yet to see any exterior gate reconstruction.
 

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