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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