We might Love DFW to STL

 
Old Nov 10, 05, 6:51 pm
  #1  
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We might Love DFW to STL

Based on this Wright amendment compromise, I'd bet that it soon will be cheaper to fly between DFW and STL:

Congress to exempt Missouri from Love Field limits
Thu Nov 10, 2005 08:31 PM ET
WASHINGTON, Nov 10 (Reuters) - Congressional negotiators agreed on Thursday to exempt Missouri from restrictions on direct air service from Dallas Love Field to several states, an issue that has Texas rivals' Southwest Airlines (LUV.N: Quote, Profile, Research) and American Airlines (AMR.N: Quote, Profile, Research) locked in a bitter fight.

House-Senate lawmakers hammering out details of a spending bill for transportation and treasury programs agreed to the Missouri exemption to a 26-year-old law called the Wright Amendment.

The exemption was sponsored by Sen. Christopher Bond, a Missouri Republican. Congress has approved similar waivers for other states in the past.

Budget powerhouse Southwest wants the Wright Amendment repealed to broaden service, while its Texas rival No. 1 American Airlines (AMR.N: Quote, Profile, Research) is fighting to keep it in place to preserve its customer base and huge investment at nearby Dallas-Fort Worth airport.

"In this case the dominant player (American) is being protected from the little guy," Bond told a Senate hearing on the matter earlier in the day.

Executives from both carriers appealed to Senate lawmakers but there appears little appetite for congressional intervention this year on the question of repeal even though a proposal to do so has some powerful sponsors, some senators indicated.

Sen. Kay Bailey Hutchison, a Texas Republican, suggested the matter be settled by the airlines and local officials, rather than through federal legislation.

"This puts Congress in a very bad situation," Hutchison said.

Pushed through in 1979 by then House of Representatives majority leader, Texas Democrat Jim Wright, the law restricts direct service from Love Field to other cities in Texas and several nearby states. It was intended to boost the prospects for then fledgling DFW.

American's chief executive Gerard Arpey told the Senate Commerce subcommittee on aviation that he would have to scale back operations at DFW and shift some service to much smaller Love Field, if the law were repealed.

Southwest founder and chairman Herb Kelleher said lifting the statute was would open Love Field -- and Dallas -- to more competition.

"DFW has gotten so big I'm surprised its not been implicated in a steroid scandal," Kelleher joked at the hearing.

But Arpey said Southwest has thrived for 30 years and expressed frustration with its sudden demand to repeal the law that he claims would be a windfall for Southwest because Love Field is closer to downtown Dallas than DFW.

"This is eating up time, money and energy we would like to devote to running our business," Arpey said.


© Reuters 2005. All Rights Reserved.
dfwdal is offline  
Old Nov 10, 05, 7:35 pm
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Good post and a good idea. If they would also allow through-ticketing that would give WN a lot of what it wants because then it could serve anywhere from Love via a one-stop or a connection. It would also “protect” AA’s long-haul routes and allow AA to compete by using STL as a low-priced connecting hub.

I know I have just opened Pandora's Box. Don't flame me with the "No Limits on Love" posts. The sensible solution is one that neither side is totally happy with. It's called a compromise.
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Old Nov 10, 05, 8:05 pm
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Originally Posted by dfwdal
"This is eating up time, money and energy we would like to devote to running our business," Arpey said.
I don't know why, but that really made me chuckle
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Old Nov 10, 05, 9:32 pm
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I also believe Mr. Arpey said to leave the Wright Amendment in place, because "...a deal is a deal." I am sure all of the employee unions are glad to hear that!
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Old Nov 11, 05, 6:26 am
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Without hijacking this thread into another WA debate...I'd be thrilled if this proposal went through. Selfishly, the only ex-DAL route I personally care about (w)right now is STL-DAL. "Love" to see it happen.
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Old Nov 11, 05, 7:48 am
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IF this paves the way for lower fares St. Louis/Dallas, I'm all for it.
I think the WN fliers are tired of the multiple hops/detours just to get to Texas from St. Louis, and I think a lot of the AA fliers would "love" to see the STL/DFW(DAL?) fares drop.
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Old Nov 11, 05, 8:07 am
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Originally Posted by skye1
IF this paves the way for lower fares St. Louis/Dallas, I'm all for it.
I think the WN fliers are tired of the multiple hops/detours just to get to Texas from St. Louis, and I think a lot of the AA fliers would "love" to see the STL/DFW(DAL?) fares drop.
You gotta love AA's hub-hub monopoly pricing. The cheapest "normal" fare I've been able to buy in the last year was about $300 r/t, although we did get a ~$240 fare as part of an Expedia package (imputing the fare from the lowest available Expedia rates on the hotel and car we got in the package). Nearly 25 cents a mile for the cheapest fare is ridiculous.

Plus, I'd much rather fly into DAL than DFW since everything we do in Dallas is centered in the Park Cities to Galleria area.
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Old Nov 11, 05, 11:00 am
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Originally Posted by UAL_Rulez
You gotta love AA's hub-hub monopoly pricing. The cheapest "normal" fare I've been able to buy in the last year was about $300 r/t, although we did get a ~$240 fare as part of an Expedia package (imputing the fare from the lowest available Expedia rates on the hotel and car we got in the package). Nearly 25 cents a mile for the cheapest fare is ridiculous.

Plus, I'd much rather fly into DAL than DFW since everything we do in Dallas is centered in the Park Cities to Galleria area.
Random midweek dates in December:
Southwest from HOU to STL (7 nonstops a day): $293 RT
AA from DFW to STL (13 nonstops a day): $267 RT
Bring on the savings!

Southwest's Internet One-Ways from HOU to STL are $137 one-way. Not sure what y'all are hoping for out of DAL, but I doubt it will be significantly lower than what AA already has. It's not like you're going to get $39 fares or anything.
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Old Nov 11, 05, 11:31 am
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Originally Posted by SAN-man
Random midweek dates in December:
Southwest from HOU to STL (7 nonstops a day): $293 RT
AA from DFW to STL (13 nonstops a day): $267 RT
Bring on the savings!

Southwest's Internet One-Ways from HOU to STL are $137 one-way. Not sure what y'all are hoping for out of DAL, but I doubt it will be significantly lower than what AA already has. It's not like you're going to get $39 fares or anything.
The AA "gouge" tends to be focused on walk-up or short-notice fares.
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Old Nov 11, 05, 12:12 pm
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Originally Posted by HKG_Flyer1
The AA "gouge" tends to be focused on walk-up or short-notice fares.
Don't disagree that that is the perception, but the post I was responding to was talking about "lowest normal" fares, which I interpreted to be advance purchase.

That said, the very example I posted still isn't a huge discrepancy for those walkup fares for every flight the rest of today:

AA DFW to STL today $263 one-way
WN HOU to STL today $206 one-way
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Old Nov 11, 05, 1:24 pm
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Originally Posted by SAN-man
Don't disagree that that is the perception, but the post I was responding to was talking about "lowest normal" fares, which I interpreted to be advance purchase.

That said, the very example I posted still isn't a huge discrepancy for those walkup fares for every flight the rest of today:

AA DFW to STL today $263 one-way
WN HOU to STL today $206 one-way
Honestly, let's just repeal the WA and get on with our lives. At the same time, the city of Dallas and WN should be ordered to open up sufficient gate space for any carrier who wants to serve DAL with a reasonable number of flights.
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