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Tue, May 10, 2005

DFW: Wright Amendment Repeal Would Hurt BAD

DFW International Says It Would Need 20 Years Or More To Recover

In the darkened terminal where Delta Air Lines once serviced more than 220 flights a day, DFW International Airport officials, members of the North Texas Commission and aviation industry experts from Simat, Helliesen & Eichner, Inc. (SH&E) today released an independent economic analysis of potential impacts if the Wright Amendment were repealed.

The study concludes that repealing the Wright Amendment would cost DFW Airport some 204 flights a day, 21 million passengers annually and slash airport passenger traffic back to levels seen 20 years ago. It predicted DFW would not recover for nearly two decades, and in the mean time, travel options for North Texas travelers would be severely reduced, and millions of connecting passengers lost to other airports.

The study also found that if the Wright Amendment was repealed flights at Dallas' Love Field could easily double and possibly triple -- leading to strain on its aging infrastructure and a dramatic increase in automobile traffic.

DFW International Airport executives also presented business quotes from an unlikely source of collaboration: former Southwest Airlines CEO Herb Kelleher. Kelleher has stated publicly in the past that Southwest supported the Wright Amendment to bring to an end a long running dispute between the cities of Dallas and Fort Worth and, his words, "there is no city in the United States that has two full-fledged hubs competing against one another successfully." Kelleher depicted that scenario as "unhealthy".

The study entitled "Potential Airport Impacts - Repeal of the Wright Amendment," was conducted by Boston-based SH&E Inc., a global aviation industry firm which produces air traffic studies for airlines.

"The study provides further evidence that repealing the Wright Amendment would be a devastating economic blow to the entire North Texas region," said Kevin Cox, chief operating officer at DFW International Airport. "DFW is a world class airport equipped to meet the needs of both domestic and international travelers and grow new business and tourism for Dallas and Fort Worth. Repealing the Wright Amendment not only means a huge loss of air traffic, it means a loss of jobs, convention business and economic growth. We need competition between airlines, not airports that are a mere eight miles apart."

"We have known all along that repealing the Wright Amendment was a bad idea for DFW and the entire North Texas region," said Jeff Wentworth, Chairman of the DFW International Airport Board. "But now, there is critical, independent analysis to prove it beyond a shadow of a doubt."

"Repealing would basically wipe out all the progress that has helped make DFW the undisputed economic engine that drives North Texas," Wentworth added. "It would also cost the cities of Dallas and Fort Worth much in the way of community unity. It would be bad public policy. It is simply a bad idea."

According to Deborah Meehan, president of SH&E, the study's findings confirm that air service at DFW would be cut dramatically. "There would be a 35 percent reduction of air traffic, which translates into a loss of more than 200 daily flights. That economic impact cannot be underscored enough."

Meehan stated that both domestic and international flights would be reduced at DFW while Love Field traffic would substantially increase. "Travelers using DFW would no longer have the convenience of their current domestic and international routes that they have become accustomed to using. Furthermore, flights to Central and South America particularly would bear the brunt of the reduction."

The study also factored the Love Field Master Plan into its research. Taking into account the limits designed under the Love Field Master Plan, DFW will still experience a loss of 121 daily flights, Love Field departures will more than double, and Love Field's passenger load will almost triple -- according to SH&E's 'moderate' scenario. That would shrink DFW to passenger levels not seen since 1989, and leave 25 empty gates, assuming the Master Plan remains in place.

Key SH&E Study Findings:

1. DFW will Lose Substantial Traffic. With repeal of the Wright Amendment, DFW Airport could lose up to 204 daily flights and up to 21 million passengers annually, representing a 35 percent decline. With this substantial loss, DFW Airport passenger levels will decrease to levels last seen 20 years ago and it will take up to 19 years for traffic to recover to current levels.

2. Traffic at Love Field Could Triple. With the repeal of the Wright Amendment, Love Field operations could triple and Love Field passengers could increase by as many as 16 million passengers a year. Tripling Love Field's use would strain older existing facilities and cause local traffic gridlock.

3. DFW will Lose International Air Service. With repeal of the Wright Amendment, current international air service would be substantially reduced due to a loss of international connecting traffic through DFW. Flights to Latin America are particularly vulnerable.

4. DFW Would Lose Domestic Destinations. With the repeal of the Wright Amendment, up to 15 current markets with low frequency could see service cuts or elimination.

5. DFW has Significant Growth Capacity. DFW Airport was designed and built to handle 100 million passengers and 1.4 million airport operations annually and can accommodate low-cost carrier growth that won't cost taxpayers more money. In contrast, if the Wright Amendment is repealed, Costly improvements will be needed at Love Field to accommodate increases in traffic; meanwhile, airport capacity investments already made at DFW Airport will sit idle.

6. Growth at DFW is the Preferred Option. The growth of low-cost carrier service at DFW will add more passengers and more long-term economic growth to the Dallas-Fort Worth area than any scenario in which the Wright Amendment is repealed - without disrupting facilities, neighborhoods or taxpayer commitments.

"The research provides a big picture perspective of the impact on DFW Airport and the North Texas region," said Meehan. "The reality is that DFW is the optimal choice for travelers in the Dallas and Fort Worth communities."

FMI: www.keepdfwstrong.com

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