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Law Change is Sought to Cut Air Fares Federal Legislation Prevents Southwest Airlines From Offering Direct, Less-Costly Flights Between Omaha and Dallas.

Posted on: Saturday, 23 July 2005, 15:00 CDT

Passengers have been paying at least double what they could to fly nonstop between Omaha and Dallas because of a 26-year-old law, say Eppley Airfield officials and some Nebraska members of Congress.

They have joined a push to lift restrictions on commercial flights at Dallas Love Field, home of low-fare carrier Southwest Airlines, saying the move could mean lower fares and improved service for Nebraska.

Iowa Sen. Tom Harkin opposes the change, fearing it might endanger service by American Airlines between Dallas-Fort Worth International Airport and small cities such as Des Moines and Cedar Rapids.

Harkin is co-sponsoring a bill that would prohibit commercial flights at Love Field and consolidate flights at Dallas-Fort Worth, where Southwest has refused to go because operating costs would be higher.

David Sokol, Omaha Airport Authority Board chairman, said the proposed ban on Love Field flights "is just a retaliatory effort against Southwest, and I think it's inappropriate. . . . Customers in this marketplace are paying twice what they would have to pay to fly to Dallas."

The 1979 federal law -- commonly known as the Wright Amendment -- was intended to help then-new DFW, where American is based. Under that amendment and a later one, Love Field flights are permitted only to and from destinations in Texas and seven other states, not including Nebraska.

"Southwest has been a tremendous asset for our community," Sokol said. "Since they've been involved at Eppley, fares have dropped dramatically. Competition is important."

Nebraska Reps. Jeff Fortenberry and Lee Terry are among 28 co- sponsors of a House bill to repeal the amendment. Rep. Tom Osborne said Friday he will join them.

Nebraska Sen. Chuck Hagel is co-sponsoring a similar Senate bill that would amend the 1979 law to allow Love Field flights nationwide.

A spokesman said Sen. Ben Nelson considered the Wright Amendment a Texas issue and wanted to consult Texas Sens. Kay Bailey Hutchinson and John Cornyn, who have not stated positions.

Nelson obtained a commitment from American Airlines' chief executive in a June 17 letter to lower fares between Omaha and Dallas.

"Senator Nelson doesn't think everything requires a legislative solution," said his spokesman, David DiMartino. "My guess is people are already seeing lower fares."

On the contrary, said Don Smithey, executive director of the Omaha Airport Authority, American's fares as of Thursday were higher than they were in May because of a fuel surcharge.

After more calls from Nelson's office to American, fares dropped Friday afternoon. "We accepted in good faith," DiMartino said. "We're holding them accountable to their letter."

The change: Omaha-Dallas walk-up fares decreased from $1,213.90 round-trip to $694, including the fuel surcharges. Tickets purchased seven days in advance were $578 round-trip, down $200. Prices for 14- and 21-day-advance tickets, $218 round-trip, didn't change.

By comparison, Southwest's walk-up fare was $487.44 roundtrip. Tickets purchased seven and 14 days ahead were $357.20 and $320. However, the flights between Omaha and Dallas Love Field are not direct due to the Wright Amendment.

American said it also would switch to a larger jet for one of the daily flights to add more seats to the Omaha-Dallas route, DiMartino said.

DiMartino said American did not commit to maintaining the lower fares for a specific amount of time. "We didn't ask them to," he said.

Smithey said allowing Southwest to compete in nonstop flights on the route would guarantee that fares remain lower.

American Airlines officials said Southwest has been free to compete nationwide from Dallas by moving to DFW.

Southwest has resisted moving to DFW since the airport was being built and the carrier was a startup commuter airline with three planes.

Southwest operates from smaller, less expensive airports in cities such as Chicago, Houston, Los Angeles and San Francisco.

American, the world's largest carrier, operates about 900 flights a day from 67 gates at DFW, which has grown into the world's third- busiest airport in terms of takeoffs and landings.

Southwest, which operates 117 daily flights from 15 gates at Love Field, said that in cities with more than one airport, its lower fares stimulate air traffic at the airport it serves as well as others in the area.

Eppley Airfield's Smithey called the Wright Amendment "the last bastion of regulation in the industry."

Source: Omaha World - Herald

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