SWAjet,
Mark Davis is a morning DJ for WBAP here in Dallas. He will debate our former CEO, Bob Crandall, this morning between 9 and 12. If you want to follow the debate, you can go to the following link to hear it live.
http://www.wbap.com/
Here is my letter to Mr. Davis,
Mr. Davis
I usually agree with most of your views, but on the Love Field debate we are on opposite ends of the spectrum. Make no mistake about it, Southwest is trying to fly out of Love for one simple reason – they want to drive a dagger into the heart of American Airlines.
Mr. Davis, do you know that Southwest has most of their fuel hedged for the next two years in the $24-$26 price range while American is paying the going price in the high $50’s. The $24 -$26 fuel hedges run out in a couple of years. Mr. Kelly knows he has a limited window of opportunity with a major price advantage, hence the move now to open up Love Field.
You also seem to think DFW and American “will just be fine” if Southwest wins. Mr. Davis, surely you know the precarious financial footing that American has been operating on since 9/11. Our employees have taken severe paycuts on the magnitude of 23%-40% to help keep our company out of bankruptcy. Many, many jobs in the metroplex have been lost at our airline. Our management has made great strides to cost our costs, yet due to the high fuel costs we are just barely keeping our heads above water. I hope you realize that our airline can not even afford to put pillows on the planes anymore. We are just now starting to see the fruits of our labor.
Meanwhile, DFW has taken on billions in new debt building both a drastically needed new international terminal and airport train the last few years. Now you and other misguided congressional leaders want to let Southwest have their cake and eat it too. You want to help one of the few strong airlines and body slam American just as we are just getting back on our feet.
Wise leaders sought to prevent this type of airport turf battle by drawing up the Wright agreement years ago, but Southwest has constantly tried to jump through legal loopholes to keep their monopoly going in North Dallas.
The sad fact of this matter is that if Southwest wins, either American loses many of their best customers in North Dallas, who will choose the shorter commute to Love Field, or American will have to split their operations (which will cause an enormous rise in operating costs) to compete with Southwest over at Love.
What is lost in this argument is that Southwest is free to come right over to DFW and fly anywhere in the US. There are plenty of open gates. Yet, it chooses to stay at Love. Now ask yourself, why doesn’t Southwest want to move to DFW?
Yes, we all love cheap tickets, but is the support for Love field worth putting American into bankruptcy or having double the airline traffic at Love? Will this be better for the metroplex? Ticket prices are already hovering near a 15 year low. American, its employees, and the DFW Airport Board have made enormous investments and upgrades to DFW airport and the local community based on keeping the Wright Amendment intact. Now you want to pull the carpet from under our feet. This is a case where one company wins all the marbles while the other one gets screwed. How fair is that?
Like I said, I enjoy your show, but your support for Southwest will have severe repercussions for American and its employees. Unfortunately the fallout will be felt around the Metroplex. I hope you reconsider your stance.
AA767AV8TOR