State of the Airlines

Tuesday, February 08, 2005

NEWS: Why is Southwest in Love

For those that have missed prior references, Southwest Airlines is currently trying to have the Wright Amendment repealed by the Texas legislature. Why you ask? See back in 1979 when DFW was a brand shiny new airport someone got this little piece of protectionist legislation passed to help the airport grow...at the expense of the area's other airport, Love Field. In a nutshell, the Wright Amendment severely restricts the destinations that can be served by Love Field.

Anybody who really wants to be a player in the Dallas-Fort Worth airline game is pretty much forced to use DFW. This really bugs Southwest Airlines because it forces them to play the game on someone elses terms ...and turf for that matter. Southwest has a long tradition of choosing smaller alternate airports to serve a major market. That way they avoid the higher prices of a major airport and the direct competition with a major airline for airport resources. Its the old saying, its better to be a big fish in a small pond than a small fish in a big pond. Anyway...Gary Kelly, CEO at Southwest wants this thing pretty badly. Its going to be an interesting battle.