SWAjet

Posted on Mon, Oct. 10, 2005


Report: Region would suffer if flight limits lifted at Love Field

DAVID KOENIG
Associated Press

FORT WORTH, Texas - A consultant hired by American Airlines says the nation's biggest carrier would lose 36 percent of its business in Dallas if Southwest Airlines Co. gets its wish and begins operating long-haul flights from Love Field.

Eclat Consulting of Arlington, Va., said Monday that expanding flights at Love Field would also result in fewer overall flights in and out of North Texas by hurting traffic at nearby Dallas-Fort Worth International Airport, American's hub.

That's because AirTran Airways and other low-cost carriers at DFW would shift flights to Love Field to compete with Southwest, the consultant said.

American and its consultant intended the report to buttress their case against repealing limits that Congress placed on Love Field in 1979, but the study also highlighted the financial importance of the fight to American.

A consultant hired by Southwest estimated in May that American stood to lose up to $300 million a year if forced to compete with low-cost Southwest for travelers going to and from the Dallas area. By opening up Love Field, travelers would save $700 million a year and travel to Texas would increase, boosting the local economy, Southwest's consultant said.

William Swelbar, managing director of Eclat, disputed those findings, although he conceded that letting Southwest expand would lead to some lower fares.

Eclat Consulting said Love Field would add 251 flights a day if Southwest added flights to 15 far-flung cities, but DFW would lose 436 daily flights. DFW's losses would be greater than Love's gains because fewer travelers at DFW would force the scrapping of some connecting flights there.

American's consultant said service to smaller cities in Texas and the Midwest would be eliminated or reduced, while Southwest's new service at Love Field would go to big cities already served from DFW, such as Los Angeles and Chicago.

Southwest dismissed the new study, with spokeswoman Beth Harbin calling it "a continuation of the threats that American has been making." She said repealing the 1979 Wright Amendment would lead to lower fares, stimulate more travel and increase flights to other cities, even from DFW.

American, a unit of Fort Worth-based AMR Corp., and Southwest have been dueling for nearly a year over Southwest's proposal to expand flying at Love Field.

Legislation has been introduced in the House and Senate to repeal the limits at Love Field, but even lawmakers who introduced those bills have said they doubt Congress will act this year.

American argues that if Southwest wants to offer long flights from the Dallas area, it should fly out of Dallas-Fort Worth International Airport.

But Southwest is not eager to take on American at American's strongest hub - American and sister carrier American Eagle operate 800 flight a day there, about four times the service of Southwest's busiest airport. Southwest would prefer to stay at smaller Love Field, where it is the top dog.

American likewise does not want to split operations between two airports 10 miles apart, Eclat said, but not competing at an expanded Love Field would risk losing customers altogether, "a much worse outcome."

Southwest has dressed its flight attendants in T-shirts urging repeal of the 1979 Wright Amendment, and both sides are using television and print advertisements to appeal to the public and Congress.