Southwest Airlines Statement Regarding Dallas and Fort Worth City Council Wright Amendment Resolutions
On Friday, March 3, 2006, a Concurrent Resolution was placed on the calendars of the City Councils of Dallas and Fort Worth calling for a Congressional moratorium, until October 1, 2006, on any action concerning further changes in the Wright Amendment and stating that "certain Congressional leaders have indicated that further amendments to either repeal or loosen the restrictions of the Wright Amendment are likely ... "
In early 2005 and numerous times thereafter, Southwest Airlines (NYSE: LUV) publicly stated its willingness to discuss a possible "phase-out," over a reasonable period of time, of the Wright Amendment restrictions. There was no substantive response to our offer.
When approached in the last two weeks, Southwest reiterated its willingness to engage in such "compromise" discussions over a period no longer than 30 days, rejecting the suggestion of a moratorium on Congressional action until October 1, 2006, which would, because of the fall 2006 elections and the Congressional calendar, effectively put off any further Congressional action on the Wright Amendment until the fall of 2007, more than a year and one-half from now.
The Wright Amendment has been in effect for 26 years, as an exception to Congressional deregulation of the airline industry; the issues are well-known and have been debated extensively; and the people of the Metroplex have already been deprived of low-fare competition for too many decades, as evidenced by the radically lower air fares to St. Louis and Kansas City (now in effect at both Love Field and DFW International Airport), brought about as a result of the addition of Missouri to the Wright Amendment states in December 2005.
If any negotiations with respect to a Wright Amendment compromise are undertaken, Southwest will actively participate, but we cannot agree to a long, drawn-out process designed to forestall any further action by Congress on the Wright Amendment, which is, after all, a Congressional enactment adopted by the U.S. Congress.
We urge the Dallas City Council to vote against the Concurrent Resolution calling for an October 1, 2006 moratorium, or to substitute a 30-day moratorium, ending on April 10, 2006.
Southwest Airlines Letter to the Dallas City Council:
March 6, 2006
The Honorable Council (woman); (man)
Dallas City Council
1500 Marilla Street
Dallas, TX 75201
Dear Council (woman); (man):
Section 1 of the proposed Concurrent Resolution to be presented to the Dallas and Fort Worth City Councils this week asks the Congress to refrain from taking any action on the Wright Amendment until October 1, 2006.
Section 2 of the proposed resolution says that the purpose of the resolution is to allow the two Cities to work towards a plan that would, in turn, be presented to the Congress by October 1, 2006 "for its consideration."
Southwest Airlines is opposed to the Concurrent Resolution.
Over the last few weeks, Southwest Airlines was approached by several political leaders who asked us if we would agree to pause in our efforts to persuade Congress to repeal the Wright Amendment to allow time for a "local solution." The local solution was described to us in every instance as a compromise that, among other possible elements, would lead ultimately to the end of the unreasonable flight restrictions on Love Field.
Based upon these representations, Southwest said that we would participate in any such discussions in good faith, provided the discussions either produced results or were terminated within 30 days. 2006 is an election year. Congress has a short legislative calendar for the year and will be either in adjournment or otherwise finished with all substantive legislative business by October 1. Asking Congress to defer action until October 1, 2006, is resolving to DO NOTHING for all of 2006. Congress will have to reorganize after the elections. Serious legislative activity will not occur for several months. Hence, the resolution as drafted puts the City of Dallas on record as endorsing the status quo well into 2007.
We urge you to vote no on the resolution. If parties intend in good faith to pursue a local solution to the Wright Amendment, it need not take long and no council resolution is needed to pursue it.
Finally, the subject of a regional airport authority whereby Dallas would divest itself of ownership and/or control over Love Field has come up. There is no need to debate this concept within the context of the proposed resolution. Regional airport governance may or may not be in the best interests of Dallas. Regardless, it is a separate issue from the Wright Amendment. Linking the two only serves to further confuse, distract, and delay.
Thank you for your consideration
Sincerely,
Ron Ricks
Xc: The Honorable Laura Miller, Mayor
Herb Kelleher, Chairman, Southwest Airlines
Gary Kelly, CEO, Southwest Airlines
Colleen Barrett, President, Southwest Airlines
Log on to setlovefree.com to learn more about the benefits of repealing the Wright Amendment. The web site was built to educate the public on the Wright Amendment and to keep consumers informed on the airline's efforts surrounding the issue. Southwest Airlines introduced the web site on May 5, 2005.
CONTACT:
Public Relations of Southwest Airlines, 1-214-792-4847