😀 The Game is Afoot 😀
Southwest creeping onto D.C. radar
Airline may raise its lobbying profile to fight Wright law
05:44 PM CST on Saturday, December 4, 2004
By VIKAS BAJAJ / The Dallas Morning News
Southwest Airlines Co. says it spreads the love far and wide.
But in a battle over where the carrier can fly from its home airport, Dallas Love Field, Southwest remains an underdog by traditional measures of political power, legislative experts say.
"Southwest has not been an airline to throw around a lot of money and weight in Washington," said Patrick Murphy, a Washington-based aviation consultant and a former Department of Transportation official.
Passions are running high from Capitol Hill to Fort Worth City Hall over Southwest's 3-week-old opposition to the Wright amendment. Chief executive Gary Kelly upped the ante Friday by promising a "grass-roots campaign" to repeal it.
To overturn the 1979 law that restricts flights from Love Field to Texas and nearby states, Southwest and its allies will need to convince Congress that Dallas/Fort Worth International Airport no longer needs protection. The amendment's defenders are adamant that it's still necessary.
Southwest has vastly more clout than it did 25 years ago, and Mr. Kelly says he intends to use it.
A low-cost pioneer, Southwest is now the nation's largest airline by total domestic passengers and one of the few that are consistently profitable. The carrier, which markets itself as "The House That Love Built," cultivates a culture aimed at winning over its customers' hearts.
"I am not expecting that we are going to have any extraordinary legal fees and lobbying efforts to undertake here," Mr. Kelly said. "We have got resources, so if need be, if we have to mount a more serious fight, we have got the wherewithal to see this fight through."
This is an important change for Southwest, which hasn't worked very hard at making friends in Washington.
Federal records show the airline and its executives make smaller political campaign contributions and spend less on lobbying than opponents, including American Airlines Inc., D/FW Airport, the cities of Fort Worth and Dallas, and even American's pilots' union.
Fort Worth-based American, which could lose customers and be forced to cut fares if Love restrictions are lifted, has given more than 3 ½ times as much to federal campaigns and spent 15 times as much on lobbying Congress in the last 5 ½ years as Southwest, according to federal disclosure reports.
American, the world's largest airline, spent $4.1 million on lobbying last year compared with $240,000 for Southwest. American's political action committee and executives gave federal campaigns $299,196 last year vs. $133,030 for Southwest.
The airlines' money has largely been spent on issues such as aviation security, the post 9-11 airline bailout package and other industry concerns.
A senior American official said that it's presumptuous to assume that pro-Wright sources would win this battle on the basis of past lobbying. Dan Garton, executive vice president of marketing, noted that Southwest is the nation's largest airline by market capitalization.
"We believe we have sort of the legal agreement and the moral commitments behind us," Mr. Garton said. "In terms of strength, I don't know if I want to make any immediate bets on that. Southwest at this point in their history has tremendous financial resources. They are the 800-pound gorilla."
For its part, D/FW served notice of its willingness for political combat.
"This will be our highest priority in the coming congressional term, to avoid and put to bed the whole idea of repealing the Wright amendment," said Kevin Cox, D/FW's chief operating officer, who was in Washington last week.
Mr. Cox asserted that Southwest has already scored a victory in some ways with its public change of heart about the Wright amendment because its statements are keeping other low-fare carriers from launching service at D/FW.
Advantage: status quo
In most legislative contests, "the opponents of change have a lot of advantages to proponents of change," Mr. Murphy said.
And Mr. Kelly acknowledges that Southwest is fighting an uphill battle.
But, he said, the airline eventually would triumph because public sentiment is largely against the Wright amendment.
"It's going to be hard to ignore the voice of the people on this because the people overwhelmingly favor changing the Wright amendment," he said.
The airline could prevail, experts say, if it mobilizes a coalition that includes:
•Powerful lawmakers and airport officials from other states who would like to see Southwest expand service to their constituents. The executive director of the Tampa airport hadn't heard from Southwest as of last week but said he would take the matter to his board if asked.
•Dallas consumers and businesses expecting cheaper fares if Southwest offers long-haul routes from Love Field.
Mr. Kelly said the airline is trying to gin up public pressure after taking the pulse of Congress and assessing public feedback in the last three weeks.
Southwest says it will channel public opposition from travelers through a Web site, which will include historical background and information about how residents can contact their representatives and senators. It will also commission a study to highlight how low airfares from long-haul Love flights would benefit the region economically.
Delta's departure
D/FW released its own study last week to bolster its case against a Wright repeal. Economists hired by the airport said Delta Air Lines Inc.'s decision to close its hub at the airport would cost the North Texas economy $782 million.
Delta's departure is one of three chief reasons cited by D/FW and its backers – which include many prominent Texas lawmakers – to keep restrictions at Love. The other two are D/FW's assumption of $3 billion in new debt and the 2005 opening of a new international terminal.
"With that report showing instability in the revenue stream at D/FW, this may not be the best time to add another potentially destabilizing factor," said Sen. Kay Bailey Hutchison, a Republican.
"I am going to do more than vote against it," said Rep. Joe Barton, R-Ennis, the House Energy and Commerce Committee chairman and a close ally of President Bush. "I will do everything I can to make sure it doesn't pass."
A group of Fort Worth Chamber of Commerce officials presented their case to Sen. John Cornyn after he spoke at an unrelated breakfast event last week.
"My default position on matters like this are pro-consumer," said Mr. Cornyn, a Republican. But because the Wright amendment "has created a set of expectations and a status quo that people have come to expect back at D/FW, we ought to take that into account."
Still, Southwest won at least one political victory in the past without even trying. It stayed on the sidelines, experts noted, when Congress loosened the Wright restrictions.
In 1997, Sen. Richard Shelby, R-Ala., led a fight to allow nonstop flights between Love Field and Kansas, Alabama and Mississippi. Originally, the Wright amendment restricted flights to Texas and its contiguous states – New Mexico, Oklahoma, Arkansas and Louisiana.
"You have to remember that the circumstances were even more difficult when the Shelby amendment passed," said Ed Faberman, president of the Air Carriers Association, a trade group for discount airlines.
"While I understand positions and strength and money thrown around Washington, the fact is that we have a different aviation environment."
Out-of-state help
Mr. Faberman sees Southwest getting some help from lawmakers, especially those with smaller airports that could benefit from direct service to Dallas.
Tennessee's House delegation filed a bill in September that would include their state inside the Love Field perimeter.
Other out-of-state lawmakers who could help Southwest include Sen. Sam Brownback, R-Kan., and Mr. Shelby. Both have opposed the Wright amendment.
Southwest also expects to tap business and leisure travelers in North Texas.
One idea under consideration, Mr. Kelly said, is a survey of area air travelers.
Friends of Love Field, an anti-Wright group led by former Dallas City Council member Jerry Bartos, said it found majority support for lifting the Wright amendment in a 1999 survey of Dallas County and Tarrant County residents.
Mr. Bartos, who is retired and not involved in the current fight, said travelers' concerns often are ignored in the political process because "consumers don't write enormous checks to congressional leaders."
But the area's biggest businesses, which pay for employee travel, often do.
Recent studies have shown they may have a reason to demand change.
Dallas' average business airfare of $593 is 48 percent higher than the $402 average in North America, according to American Express Co.'s eClipse Advisors.
The North Dallas Chamber of Commerce has appointed a 13-member committee led by Steve Joiner, an aviation consultant, to craft a stance on the Wright amendment.
"There's an increasing constituency for a repeal of the Wright amendment, and it's no longer just here in North Texas," said Steve Taylor, the chamber's president. "As a community, we need to have a thoughtful position on this."
What might a Wright repeal look like?
Experts say it could be introduced as a traditional stand-alone bill, like the Tennessee proposal. Or it may be tacked onto an unrelated measure as the Shelby amendment was.
Mr. Barton said that he doesn't expect a stand-alone bill to get very far and that he will be watching for more covert efforts. "We will just have to watch out to make sure it doesn't happen."
Staff writers Suzanne Marta in Dallas and Robert Dodge in Washington contributed to this report.