"Southwest Working to Erase Flight Limits"

Saturday, December 4, 2004

Southwest Airlines draws fight plan 
Love Field airline is lining up supporters; American, D/FW have backers, too
By VIKAS BAJAJ
The Dallas (TX) Morning News


Southwest Airlines Co. doesn't plan to fire the first shot and then not
fight the battle. 

In an interview Friday, chief executive Gary Kelly ratcheted up the
company's opposition to the law that restricts flights from Dallas Love
Field to Texas and nearby states. 

He said the discounter would mount a "grass-roots campaign" to repeal the
1979 Wright amendment and take its case to Washington with a lobbying team
that includes chairman Herb Kelleher. 

"We brought this up, and the response is favorable, and therefore we are
working it, and we are working it hard," Mr. Kelly said. "For 25 years,
there has been no political support to change the Wright amendment ... we
sensed it would be different now." 

It was the first time Southwest has pledged to actively fight the law since
Mr. Kelly declared on Nov. 12 that the flight restrictions were
"anticompetitive," changing the airline's long-held neutral position. As
recently as Thursday, the company was saying it didn't have a plan to
actively lobby against the law. 

Dallas/Fort Worth International Airport and American Airlines Inc. said
Southwest's latest comments were regrettable. 

"It's very, very unfortunate that Southwest has chosen this route as opposed
to a route that would unite the community and provide all the same services
that they pride themselves on [at D/FW] without the battle that looms
ahead," said Kevin Cox, D/FW's chief operating officer. 

Mr. Cox said Southwest should take up the gates being ceded by Delta Air
Lines Inc. as it closes its D/FW hub. 

By choosing to fight over the Wright amendment, he said, Southwest hurts
D/FW's chances of getting another low-fare tenant as it finishes its new
international terminal and takes on $2.7 billion in new debt. 

Defending the law 

American said the cities of Dallas and Fort Worth built D/FW - and airlines
moved there - with the understanding that Love Field would not be a
competitive threat. 

"We have made decisions based on the comments of all the parties, including
Southwest," said Dan Garton, American's executive vice president of
marketing. "And we are sort of taken aback." 

Several prominent local lawmakers, including U.S. Sen. Kay Bailey Hutchison
and Rep. Joe Barton, R-Ennis, have pledged to fight for the Love Field
restrictions. 

Allies in mind 

Mr. Kelly conceded that Southwest faces a struggle but said it was buoyed by
conversations with key out-of-state lawmakers. 

"All we can do is point out the merits of low fares and hope that the
lawmakers will listen to the people," he said. 

Mr. Kelly mapped out a lobbying push on several fronts. He said the airline
would: 

   . Launch a Web site to mobilize consumers. 

   . Commission a study highlighting the economic benefits from a freer Love
Field. D/FW released its own study this week pegging the economic damage of
Delta's departure at $782 million. 

   . Reach out to officials at other airports that it serves and that could
get direct flights from Love Field if the restrictions were lifted. 

They could include airports in Southern California, Phoenix, Las Vegas,
Florida, Baltimore, Philadelphia, St. Louis, Chicago and Kansas City, Mo.,
Mr. Kelly said. 

"We have a plan sequence, if you will, of folks that we believe it's
appropriate to talk to," he said. 

Likely lobbyists 

Southwest doesn't anticipate incurring "extraordinary expenses" for
lobbying, he said. 

Federal records indicate the company has largely relied on its own
executives for lobbying. 

It has also had a longstanding relationship with Loeffler Tuggey Pauerstein
Rosenthal LLP, a law firm based in San Antonio. The firm's founder, former
Republican Rep. Tom Loeffler, committed to raising $200,000 for President
Bush's re-election. 

American declined to talk in detail about its lobbying, but in the past it
has hired influential lobbying firms and former lawmakers such as former
Texas Lt. Gov. Ben Barnes. Mr. Cox said the Wright law is the airport's
"highest priority" legislative issue.


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