Phone call from Southwest to American: "Okay, we've had enough. Either you help us revoke the Wright Amendment or we enter DFW."

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Southwest Air ponders move into American's DFW hub
Fri Oct 1, 2004 11:21 AM ET
By Jon Herskovitz

DALLAS, Oct 1 (Reuters) - Low-cost carrier Southwest Airlines (LUV.N: Quote, Profile, Research) on Friday said it was examining a move into Dallas/Fort Worth airport, the main base for American Airlines, which would be dealt a blow if the move occurred.

The two airlines are both based in the Dallas area but operate out of separate airports.

Southwest is largely restricted to flying to states that neighbor Texas under the arrangement that allows it to operate at Dallas' Love Field airport. A move into DFW airport would give Southwest national reach from the region where it bases its operations.

Southwest spokesman Ed Stewart said the airline is looking into taking over gates at DFW airport that will soon become vacant as Delta Air Lines (DAL.N: Quote, Profile, Research) slashes its operations at the airport in the coming months.

"It is definitely a situation that we are monitoring," airline spokesman Ed Stewart said, who quickly added that there are a variety of reasons why it would not be in the best interest of Southwest to take over gates at DFW.

"Nothing is imminent right now. We are on the sidelines observing the situation," Stewart said. He added that Southwest is closely watching what happens with the open gates at DFW to see what service may be added and by what airline.

Southwest has fought and lost legal battles to fly to states beyond those that neighbor Texas from Love Field.

DFW International Airport officials have said for years they are open to having Southwest fly from its facility, which is the third-busiest airport in the world.

However, Southwest typically avoids flying into large and busy airports for a variety of reasons that include higher landing fees and longer time on the ground, which can cause havoc on a schedule.

DFW airport is the largest hub for American, a division of AMR Corp. (AMR.N: Quote, Profile, Research) The world's largest airline faces limited competition at DFW airport now from low-cost carrier AirTran Airways (AAI.N: Quote, Profile, Research) , which analyst said is probably also looking into expanding its operations at the airport.