article: One-stop flights: a Wright solution?

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http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-ticket_26bus.ART0.State.Edition1.3f26316.html
   
  One-stop flights: a Wright solution?
  Neither American nor Southwest would love this compromise
   
  12:00 AM CST on Sunday, March 26, 2006
  By ERIC TORBENSON and ROBERT DODGE / The Dallas Morning News 
   
  Letting Southwest Airlines Co. fly passengers anywhere from Dallas Love Field on just one ticket ? as long as they stop within a Wright amendment state ? gives the carrier something it can't do today.
   
  But not nearly what it wants.
   
  "You are only giving people a slice of the pie, and they know there is more," said Ron Ricks, Southwest's senior vice president for law, airports and public affairs.
   
  At the same time, offering through-ticketing rights to airlines serving Love hurts American Airlines Inc., which believes it bleeds money with any change to the federal Wright law.
   
  But the pain to American from through ticketing would be far less than that of full repeal.
   
  "Through ticketing is among the spectrum of options that lie between closing Love and opening it up completely," said Tim Wagner, a spokesman for Fort Worth-based American. 
   
  Neither Southwest nor American is enthusiastic about solving the contentious fight over the limits on long-haul flights at Love by allowing through ticketing. But as Dallas and Fort Worth attempt to hash out a Wright solution, the temptation exists to put it on the table.
   
  Talks are under way, with a June deadline for the mayors of the two cities to reach a local compromise on Wright, in an effort to forestall congressional action that could be unpalatable to North Texas.
   
  Even if the process arrives at full repeal, through ticketing could still emerge as an interim step. 
   
  Some outside Texas have a keen interest in through ticketing becoming reality at Love. 
   
  In Missouri, which was exempted from Wright limits in November, the state's major airports in St. Louis and Kansas City could easily serve as stopping points for North Texas fliers, boosting traffic.
   
  Under the 1979 Wright law, airlines are prohibited from offering or advertising flights between Love Field and any city beyond the perimeter, which now includes nine states: Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Alabama, Kansas, Mississippi and Missouri.
   
  As a result, passengers can't travel from Love Field to Phoenix or Los Angeles on a single ticket, even if they're willing to stop or change planes first in Albuquerque, N.M.
   
  Less than convenient
   
  For those willing to buy two tickets to make a long-haul trip from Love, fares end up being higher. And because schedules aren't set to accommodate through ticketing, transfers often aren't convenient.
   
  The restrictions used to apply to baggage, which had to get rechecked when the passenger changed planes. But after the 9/11 terrorist attacks, federal security rules were revised to allow bags to be checked through.
  While the mayors of Dallas and Fort Worth negotiate a compromise on Wright, American and Southwest are sticking with their public positions.
   
  American wants Love Field to be closed, saying any shift of traffic there hurts its hub at the area's primary airport, Dallas/Fort Worth International. That, in turn, hurts the region's economy, the carrier says.
   
  Officials at the world's largest airline acknowledge, though, that through ticketing is among the available options and might play a key role in how the cities try to end the fight.
   
  Faced with a bevy of new one-stop Southwest flights from Love, American might be forced to offer competing service or otherwise alter its schedule and fares to go up against the Dallas-based discounter. That would cost American, but how much isn't known, Mr. Wagner said.
   
  Southwest wants unfettered access to its nationwide network from Love Field. So the carrier sees through ticketing as just a good start ? not a solution.
   
  Southwest would like to see through-ticketing restrictions removed immediately in the first step of any plan to dismantle the Wright amendment.
   
  The lifting of through-ticketing restrictions would change how Southwest flies from Love.
   
  Southwest chief executive Gary Kelly has said the carrier would alter its schedule not only at Love but also at Albuquerque and other Wright airports to make connections easier for passengers. 
   
  The carrier would build new connections to move North Texas passengers swiftly through Southwest's network to the East and West.
   
  Mr. Ricks, Southwest's chief lobbyist, said the airline would be willing to negotiate terms such as the rules of through ticketing, but it believes that the talks between the cities are about phasing out Wright, not closing Love.
   
  He said Southwest understands that the talks are focused on three major points: eliminating through-ticketing restrictions, allowing long-haul flights and dealing with capacity issues at Love Field.
   
  'Willing to compromise'
   
  "We are willing to compromise," Mr. Ricks said. "Everybody who came to us said that if we would participate in good faith, the discussions would revolve around repeal of the Wright amendment."
   
  But the airline is adamant that through ticketing is not a final solution.
   
  "For the consumers who are driving this issue, if they picked up The Dallas Morning News and read that the only thing they are going to get out of this is one stop or more out of Love Field, they would feel like the political process had let them down," Mr. Ricks said.
   
  For consumers, one-stop tickets from Love Field would be cheaper than the current two-ticket option as well as competitive with nonstop flights from D/FW.
   
  Still, many airline experts doubt that through ticketing at Love would siphon many passengers ? especially high-dollar business fliers ? away from American's 800-flight-a-day D/FW hub.
   
  "It's not much more than a paper clips and baling wire solution," said Robert W. Mann, an airline consultant in Port Washington, N.Y. "It gives Southwest very little because what they really want is to be able to fly nonstop traffic."
   
  It's unclear how much airfares might change with through ticketing. Southwest's highest fares are now $309 each way, far lower in most cases than American's top domestic fare, which can approach $800 each way.
   
  American's Mr. Wagner said his airline competes against a considerable amount of one-stop traffic from D/FW.
   
  "If our nonstop fares aren't competitive with the one-stop fares we face, we lose traffic," he said. 
   
  An unknown number of fliers are already flying from the region using two tickets on Southwest flights, he said, instead of on American's nonstops from D/FW.
   
  American's other concern is that allowing through ticketing probably wouldn't end the battle over Wright but could fan the flames for further loosening of the law.
   
  Yet some observers say American should just accept that Love isn't closing and do everything possible to hem in Southwest's growth. American can also charge more for nonstop service from D/FW.
   
  "American doesn't need Southwest flying against them at D/FW. Love Field is the inferior airport," said Michael Boyd of the Boyd Group in Evergreen, Colo. "It's just lunacy what American is doing."
   
  Connecting cities
   
  Some of the biggest beneficiaries of through ticketing may be outside North Texas.
   
  Missouri was added to the Wright perimeter after the state's Republican senator, Christopher "Kit" Bond, pushed through a provision exempting the state from the flight restrictions at Love. 
   
  Less than two weeks after President Bush signed the legislation into law, Southwest launched service from Love to St. Louis and Kansas City. American launched competing service from Love earlier this month.
   
  With through ticketing, Southwest's growing schedule at St. Louis could provide connections for eastbound Love passengers to cities such as Baltimore and Detroit.
   
  At Kansas City's airport, westbound passengers could connect to cities such as Seattle or Oakland.
   
  When asked if through ticketing might work better for his state than full Wright repeal, Mr. Bond smiled and said: "There is always that possibility."
   
  Through ticketing could also benefit the airport in Nashville, another fast-growing city for Southwest, if Tennessee were tacked onto the Wright perimeter. Senate Majority Leader Bill Frist, R-Tenn., tried unsuccessfully to add the state last year.
   
  For now, Mr. Bond said he is waiting to see what the talks between the two mayors produce. "We are watching to see how the various parties work it out," he said.
   
  North Texas' delegation has decided to let the cities attempt to settle the issue, but through ticketing is still top of mind.
   
  "I think through ticketing is certainly one of the ways to ease the tension on the Wright amendment, but that has to be coupled with other limitations at Love Field that level the playing field," said Sen. Kay Bailey Hutchison, R-Texas.
   
  "This has to be a local solution that makes the most sense for people in North Texas," said Sen. John Cornyn, R-Texas, who indicated that he expected through ticketing to be part of a larger plan and not the final word.
   
  "It certainly would be more than just that one issue that would be involved," he said. "It would have to be a comprehensive solution."
   
  Rep. Jeb Hensarling, R-Dallas, co-sponsor of a bill to repeal the law, said through ticketing could be part of a longer phase-out.
   
  "If somebody wants to bring another plan with another timetable, and if through-ticketing is part of that solution, I would have to take a look," Mr. Hensarling said. "I just do not believe it is a permanent solution because you would still have Congress picking winners and losers among airports."
   
  Eric Torbenson reported from Dallas and Robert Dodge reported from Washington. Staff writer Todd J. Gillman in Washington contributed to this report.
   
   

			
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