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Analysis of the impact of changes to the Wright amendment.

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  • Abstract:
    Dallas-Fort Worth International Airport (DFW) opened in 1974. To ensure its success

    and to provide assurance that the airport could meet its bond obligations, the cities of Dallas and

    Fort Worth agreed to move commercial passenger carrier operations from Love Field (DAL)

    in Dallas and Meacham Field in Fort Worth to Dallas-Fort Worth Airport. At the time, most

    of the major carriers serving the area signed an agreement to transfer. Only Southwest Airlines

    -- then a small, intrastate carrier -- did not sign. The courts subsequently found it eligible to

    continue to provide intrastate service from Love Field. Concern arose that other carriers might

    seek to enter Love Field an provide expanded service, a move which might dilute the service

    and financial standing of Dallas-Fort Worth Airport. The legislative result of that concern was

    the Wright Amendment -- a provision contained in the International Air Transponarion

    Competition Act of 1979 and signed into law in 1980 that expressly prohibits air service

    (including connecting and through-ticketing) between Dallas Love Field and points beyond states

    contiguous to Texas, including Arkansas, Louisiana, New Mexico, and Oklahoma (See Figure

    1.1).

    Since passage, two views of the impact of the Amendment have developed. Advocates

    of change to the Wright Amendment are concerned that the Amendment's restrictions limit the

    benefits of Southwest's lower fare structure as well as the potential economic contribution of the

    airport. As a result, residents outside the Wright Amendment area, as well as some residents

    of Dallas, have argued for changes to the Amendment in order to allow Southwest to expand its

    operations and provide low-fare service to more cities. Opponents to changing the current

    restrictions believe that removing or changing the current restrictions would violate the original

    agreements that supported construction of Dallas-Fort Worth Airport, divert traffic from the

    airport, thus weakening justification for plans to expand, and would lead to major capacity

    problems.

    To date, proposed Congressional legislation and legal challenges to repeal the Wright

    Amendment have failed. Legal attempts to challenge the constitutionality of the Amendment are

    currently underway.

    The controversial nature of the Wright Amendment led to the creation of a U.S.

    Department of Transportation (DOT) team to conduct a study of the issues that surround the

    Wright Amendment. This team included members from the Office of the Secretary, Federal

    Aviation Administration, Federal Highway Administration, and Urban Mass Transit

    Administration (now the Federal Transit Administration). Contractors (Apogee Research and

    Howard Needles Tammen and Bergendoff) provided technical support. This study does not

    make any recommendations; instead it evaluates five scenarios and measures the potential effects

    of each scenario on a variety of issues.

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