The new chapter of thislong running discussion is primarily the result of events that have occurred since the Fall of 2004.First, Delta Airlines decided in October 2004 to pull most of its service out of Dallas- Ft. WorthInternational Airport (DFW). Next, DFW asked Southwest Airlines to consider operating longdistance flights out of DFW. Southwest rejected the DFW offer and instead announced in November2004 that it intended to seek legislative relief from the Wright/Shelby Amendments. Thisannouncement ended what was regarded as a long standing truce on this issue between Southwestand DFW. Since November, DFW, joined by other parties such as American Airlines (American),have lobbied extensively in favor of retaining the existing Wright/Shelby restrictions on airlineoperations at Love Field. Southwest, and others, have, at the same time, presented their ownarguments as to why these restrictions should be removed. This section of the report will discuss the major claims and counterclaims made by each sidein this discussion. Airline Competition in the Dallas-Ft. Worth Market

As can be seen from the above, most of the airline traffic in the regional market is controlledby a small number of air carriers. Over time, Southwest has faced very limited competition at Love Field. At the moment, no legacy airline is knownto be contemplating the creation of a new hub. It is, asdiscussed earlier, a principal argument made by the airport for retention of the restrictions. Notably, the Mayor of Dallas nowseems to be seeking an as of yet undefined compromise on the issue. Prospects for Congressional Action

In the 108th Congress, several members of the Tennessee congressional delegation introducedlegislation that would have allowed direct air service between Love Field and airports in Tennessee( H.R. Comparablelegislation has now been introduced in the 109th Congress ( H.R. Legislation that would repeal the Wright/Shelby Amendments has been introduced in the109th Congress ( H.R. In its November 2005 announcement, Southwest contended that H.R. Byextension, such a move could also diminish the economic vibrancy of the airport and the region(Love Field, in this view, is not seen as a regional asset, but rather as a Dallas City asset). The DFW arguments are primarily couched in the politics, legalities, and history of theregional compact that created the airport that are discussed more fully earlier in this report. Therationales for retaining the Amendments are primarily of local interest and origin, e.g. protectinginvestments and markets at DFW. The rationale for removing Wright/Shelby restrictions, therefore, is the rationale for deregulation inthe first place: the unrestricted flow of air commerce. A question for policymakers, then, is shouldthe exceptions to deregulation that are the Wright/Shelby Amendments be retained in the context ofthe existing national aviation system or should local concerns be the primary determinant as to thedesirability of repeal and/or modification?
The history of the Wright Amendment dates back to the 1960s when the now defunct CivilAeronautics Board (CAB) proposed the creation of a single regional airport in the Dallas-Fort Worth(DFW) area. To construct the new airport, the two cities entered into an agreement that required thephasing out of separate existing airports in Dallas and Ft. Worth and transferring air service to thenew DFW Airport, which opened in 1974. During this time, Southwest Airlines began operating outof Dallas's Love Field as a purely intrastate air carrier. As such, Southwest was not subject to CABregulation. Congress's subsequent passage of the Airline Deregulation Act of 1978, resulted inSouthwest being allowed to operate interstate flights from Love Field, and prompted concerns frommany local officials about DFW's financial stability.
The Wright Amendment represents a compromise that was designed to protect the interestsof both DFW Airport and Southwest Airlines. The Wright Amendment contains a generalprohibition on interstate commercial aviation to or from Love Field subject to exceptions thatpermits Southwest's continued operations in a regional four state market. In addition, the ShelbyAmendment, enacted in 1997, further expands the scope of the regional market to three additionalstates, but nevertheless retains the basic compromise and structure of the original WrightAmendment. The language of the Wright Amendment has been the focus of several administrativeinterpretations by the Department of Transportation, as well as litigation at both at the state andfederal level. Each court decision to date has affirmed the DOT's interpretation of the WrightAmendment.
The newest iteration of this long running issue is primarily the result of events that haveoccurred since the Fall of 2004. First, Delta Airlines decided in October 2004 to pull most of itsservice out of Dallas Ft. Worth International Airport (DFW). Next, DFW asked Southwest Airlinesto consider operating long distance flights out of DFW. Southwest rejected the DFW offer andinstead announced in November 2004 that it intended to seek legislative relief from theWright/Shelby Amendments. This announcement ended what was regarded as a long standing truceon this issue. In the period since November, DFW, joined by other parties such as AmericanAirlines, have lobbied in favor of retaining the existing Wright/Shelby restrictions on airlineoperations at Love Field. Southwest, and others, have, at the same time, presented their ownarguments as to why these restrictions should be removed.
The DFW arguments are primarily couched in the politics, legalities, and history of theregional compact that created the airport. The rationales for retaining the Amendments are primarilyof local interest and origin, e.g. protecting investments and markets at DFW. The rationale forremoving the restrictions is the rationale for deregulation in the first place, the unrestricted flow ofair commerce. A question for policymakers then is should the exceptions to deregulation that are theWright/Shelby Amendments be retained in the context of the existing national aviation system?Legislation affecting the Wright/Shelby restrictions has been introduced in the 109th Congress; H.R. 2932 , H.R. 2646 , H.R. 3058 , H.R. 3383 , S. 1424 , and S. 1425 . This report will be updated as warranted by events.