Dallas/Fort Worth International

Airport
The Wright Amendment
February 23, 2005

The Creation of the Underlying

Agreements

The Creation of the Underlying

Agreements
April 15, 1968City of Dallas and City of Fort
Worth entered into contract and agreement to
establish joint airport board to construct new
regional airport.
November 2, 1968Cities adopted Bond
Ordinance agreeing to certain covenants including
in Section 9.5(A) which provides that the owner
citiesshall take such steps as may be necessary,
appropriate and legally permissible to provide for
orderly, efficient and effective phase out at Love
Field, Red Bird, GSIA and Meacham Field of any
and all Certificated Air Carrier Services and to
transfer such activity to the Regional Airport....
FEBRUARY 2005

The Creation of the Underlying

Agreements
Every airline but one moved to DFW.

FEBRUARY 2005

Every Airline, except Southwest

Airlines, fulfilled their obligations and
commitments to the public and moved
their operations to DFW International
Airport consistent with the Bond
Covenants
In contrast, Southwest Airlines sued
and won the limited right to fly
intrastate service out of Love Field
because, at the time, it was not a
Certificated Carrier
4

The Creation of the Underlying

Agreements
Every airline but one moved to DFW.

From 1973 to 1978, Southwest

Airlines only operated intrastate
flights out of Love Field
In 1979, Southwest Airlines sought
to fly interstate traffic out of Love
Field over the objections of the City
of Dallas, the City of Fort Worth,
DFW International Airport and other
related constituent groups
FEBRUARY 2005

The Creation of the Legislative

Compromise

The Creation of the Legislative

Compromise
In an effort to settle this dispute, a
comprehensive, thoughtful and fair
compromise was ultimately agreed to by
all parties, including Southwest Airlines
The compromise provided for new and
expanded interstate air service from
Love Field to the four states contiguous
to Texas
This legislative compromise is now better
known as the Wright Amendment or
the Love Field Amendment
FEBRUARY 2005

The Creation of the Legislative

Compromise
Southwest Airlines lobbied for the Wright
Amendment.
Enclosed is a copy of language which Southwest Airlines supports
as a compromise on the Love Field interstate service controversy.
This language also has been approved by the DFW Airport authority,
the cities of Dallas and Fort Worth, and related constituent groups.
Majority Leader Jim Wright has been advised of this compromise.
We are pleased that the parties to this long-standing controversy
have been able to reach this compromise, which we believe to be
the only viable one. We urge your support therefor.
If you or any member of your staff has any questions, please do not
hesitate to call Paul Arneson, Forbes Maner, or J.D. Williams of this
firm.
Letter drafted and delivered to House and Senate conferees
by J.D. Williams, Williams & Jensen P.C. Attorneys at Law on
December 11, 1979.
FEBRUARY 2005

The Creation of the Legislative

Compromise
Conference Report providesSection 29
[Wright Amendment] as approved by the
conferees embodies a compromise which
permits limited commercial passenger service
in interstate transportation at Love Field.
Perhaps the most important point about section
29 is that it provides a fair and equitable
settlement for a dispute that has raged in the
Dallas/Fort Worth area for many years. It has
been agreed to by the representatives of
Southwest Airlines, the City of Dallas, the
City of Fort Worth, DFW Airport authority, and
related constituent groups.
FEBRUARY 2005

The Creation of the Legislative

Compromise
Southwest has become a monopolist at Love
Field.

This compromise has permitted Southwest

Airlines to flourish to the point that
Southwest Airlines has become the largest
domestic carrier in the United States in
terms of passengers carried
Southwest Airlines still commands a
monopoly market share of more than 97
percent at Love Field
No other commercial airport in the United
States is more dominated by a single
carrier
FEBRUARY 2005

10

The Creation of the Legislative

Compromise
Shelby Amendment

FEBRUARY 2005

In 1997, the Shelby Amendment

expanded the Wright Amendment
The Shelby Amendment permitted
carriers operating at Dallas Love
Field to serve points in the states of
Kansas, Mississippi and Alabama.
As of today, Southwest Airlines
provides no service to any points in
these three states from Dallas Love
Field
11

The Confessions of Southwest

Airlines

The Confessions of Southwest

Airlines
Southwest has admitted that Wright Amendment
was to be the final resolution to this divisive
issue.
Southwest officials who want to

FEBRUARY 2005

expand their airline from its major

Dallas and Houston bases, said they
accept the compromise as final
resolution in their seven-year fight
over the use of Dallas Love Field.
Were personally pleased that the
idea that this will finally bring
peace to the Dallas-Fort Worth area
said Kelleher.
Fort Worth Star-Telegram, December 13, 1979
(emphasis added).

13

The Confessions of Southwest

Airlines
Southwest admitted that it was pleased with the
compromise.

Southwest Airlines Chairman Herbert

Kelleher was pleased with the
compromise even though it
restricts his airlines future growth
from Love Field. Kelleher said, it is
in our best interests to put this (the
controversy) aside.
Dallas Times Herald, December 12, 1979
(emphasis added).
FEBRUARY 2005

14

The Confessions of Southwest

Airlines
Southwest has actually attempted to use the
Wright Amendment to keep its competitors out
of The
Field Legislation was intended to settle once
LoveLove
Field.

and for all the dispute that has raged in the Dallas/Fort
Worth area for many years. Now, TI [Texas International]
seeks to reopen that fight and upset the delicate balance which
has brought peace for the first time in over a decade.
Congressional intent to the contrary is clear. Southwest does not
object to TI using Love for intrastate flights (which apparently is
all it wants to do) so long as the law is obeyed and TIs certificate
properly reflects what It may and may not do. There is simply
no reason for the [Civil Aeronautics] Board to raise again
the spectre of full scale commercial use of Love Field
which has exacerbated this situation for so long, and
which Congress has been to such pains to exorcise.
Motion of Southwest Airlines Co. for Leave to File an Otherwise Unauthorized
Document in Civil Aeronautics Boards Review of Texas International Airlines, Inc.
proposed service at Love Field filed August 23, 1980, by Paul Y. Seligson, Attorney for
Southwest Airlines Co. (emphasis added).

FEBRUARY 2005

15

The Confessions of Southwest Airlines

Southwest has even argued that Congress should
rebuff any attempts to change the Wright
Amendment.
Should Continental now address its

pleas to Congress, where they

properly belong, the legislators would
doubtless be tempted to reply in the
words of Lewis Carroll: I have said it
three times, and that is enough. Be
off, or Ill kick you downstairs.

FEBRUARY 2005

Reply Comments of Southwest Airlines Co. in

Love Field Amendment Proceeding (Docket
43307) filed by Herbert D. Kelleher and Paul Y.
Seligson on August 30, 1985.
16

The Confessions of Southwest

Airlines
Southwest pledged never to seek to overturn
this legislative compromise:

Operationally, its [the Wright

Amendment] extremely difficult, but
I pledged we wouldnt seek to
overturn it.
Interview with Mr. Herb Kelleher
concerning the Wright Amendment,
Financial World, March 21, 1989.
FEBRUARY 2005

17

The Confessions of Southwest

Airlines
Southwest Airlines admitted that repeal of the
Wright Amendment is unhealthy.

After Crandalls speech, Southwest

President Herb Kelleher said he does
not support outright repeal of the
Wright amendment because a
rivalry and competition with DFW
would be unhealthy.
Dallas Times Herald, February 2, 1990
(emphasis added).

FEBRUARY 2005

18

The Confessions of Southwest

Airlines
Southwest Airlines concedes that repeal of the
Wright Amendment will create two competing
hubBased
upon the foregoing considerations,
airports.
Southwests present policy with respect to the
Wright Amendment is as follows:

1. Southwest concedes that repeal of the Wright

Amendment has the potentiality of creating two,
competing hub airports in the Metroplex
through dividing long haul, feed passenger
traffic between two airports.
2. Southwest is amenable to any modification of
the Wright Amendment that benefits its
Customers and is acceptable to all of the
concerned a parties.
FEBRUARY 2005

Statement of Position of Southwest Airlines, in a fax dated,

September 19, 1991 from Ed Stewart.

19

The Confessions of Southwest

Airlines
Southwest Airlines has admitted that Love
should not be opened up because it will
Q. Does Southwest now support a repeal of the Wright Amendment?
negatively
impact DFW.
A. Southwest has taken a neutral position on that issue. Im sorry. A repeal of
the Wright Amendment? No, we do not.
Q. And why is that?
A. Well, we think that there is some merit to the position that there is
no city in the United States that has two full-fledged hubs competing
against one another successfully. There are cities that have a main
airport and satellite airports which live well in a complementary
relationship, harmonious relationship; and we to have to agree as a
matter of logic and principle that if you allowed Love Field to come up
as a full-fledged hub in opposition to DFW Airport that indeed air
service to the metroplex would suffer to some extent because basically
a hub-and-spoke system depends for its success upon attracting
passengers from a multitude of spokes that will fill up an airplane going
to another destination. If you divide that type of operation between
two airports, youre likely to lose service to some of the smaller cities."
Deposition of Mr. Herb Kelleher in Zamutt v. Skinner, U.S. District Court of California, October
8, 1990 (emphasis added).
FEBRUARY 2005

20

The Right/Wright Solution

In virtually every case, where a new airport is
built, the existing airport in the community is
either closed completely or permanently
limited by the local communities to
noncommercial operations.

FEBRUARY 2005

DenverStapleton closed
Seattle/TacomaKing County Boeing Field limited to GA
Minneapolis/St. PaulSt. Paul Downtown airport limited to GA
Kansas CityCharles B. Wheeler Field limited to GA
DetroitDetroit City Airport limited to GA and limited freighter service
AustinRobert Mueller Field closed
ClevelandLakefront Airport restricted to GA, limited charter, and
military
Washington D.C. DullesReagan Airport limited to defined perimeter
Northwest ArkansasDrake Field limited to GA
Ft. Myers (Regional Southwest Airport)Page Field limited to GA
Killeen (Robert Gray Airport)Killeen Municipal limited to GA
Alexandria, LAEsler Field limited to GA
Toronto, Montreal, Tokyo, Milan, Parisupon building of new airports in
these cities, heavy restrictions were placed on close-in city airports.
21

The Existing Opportunity

The Existing Opportunity

Up to $22 Million in Financial Incentives

FEBRUARY 2005

23

The Existing Opportunity

Southwest Could Make the Right Choice Today

FEBRUARY 2005

DFW International Airport publicly offered a

years free rent and additional financial
incentives to any air carrier, including
Southwest Airlines, to lease these newly
vacated gates as part of a precedent-setting
financial incentive package valued in excess
of $22 million
By accepting this attractive offer and adding
long-haul service to and from DFW,
Southwest Airlines could begin service to any
state in the union almost immediately
Southwest Airlines has chosen to rebuff
DFWs offer of free rent
24

The Existing Opportunity

Southwest has considered operating at DFW.

Admitted that DFW was not an operational

constraint
Admitted they were concerned about exposing
Love Field and Southwest Airlines to the
growing Low Cost Carrier presence at DFW
Admitted that it could profitably providing
service to North Texas travelers with long-haul
interstate service at DFW International Airport,
which is a mere eight miles from Love Field,
while retaining its short-haul service at Love
Field
FEBRUARY 2005

25

The Existing Opportunity

Southwest has admitted it can be profitable at
DFW.

Mr. Kelly agreed that Southwest could be profitable at

DFW, but he said it would face much higher risks
moving operations to the sprawling airport than
expanding existing facilities at Love.
Dallas Morning News, 11/18/04

The airline [Southwest] has told D/FW officials that it

can make money there flying against dominant
American Airlines but doesnt want to run a split
operations where some of its flights would be at Love
Field and others at D/FW
Dallas Morning News, 11/19/04

Southwest officials have said that although they could

make money at D/FW, the airports congestion doesnt
fit its business model.
Fort Worth Star Telegram 12/2/04

FEBRUARY 2005

26

Dallas/Fort Worth International

AirportRefueling the Economic
Engine
February 23, 2005